AFX5940 - CPA financial risk management

Leader: Mr Michael Code

Offered

Caulfield Second semester 2007 (Evening)

Synopsis

This unit is one of the elective segments offered in the CPA Program. Topics include the procurement of funds, the management of funds, the management of interest rate risk and foreign exchange risk, accounting for treasury operations and taxation aspects of treasury operations.

Objectives

The learning goals associated with this unit are to:

• demonstrate an understanding of the nature, importance and the need to control financial risk faced by corporations and other business and government entities;
• acquire detailed working knowledge of the nature of the treasury function, including roles, responsibilities, organisation, performance measurement and accounting guidelines as they relate to the treasury function
• analyse capital structure decisions, cost of capital, leverage effects and the allocation of capital to long-term investment projects
• demonstrate an understanding of sources of short and long-term funding and the nature and function of derivative financial instruments within an organisation's risk management structure
• apply the principles of risk management instruments and strategies to interest rate and currency hedging and procedures required for hedge accounting under australian accounting standard aasb 139.

Assessment

Examination: 100%

Contact hours

3 hours per week

Prerequisites

Associate membership CPA Australia

Prohibitions

AFX5004