Authorised by Academic Registrar, April 1996
Objectives On completion of this subject students should be able to identify and assess credit risks using a variety of sources of information, in particular the analysis of financial statements, and appreciate the nature of bank securities.
Synopsis Topics include the credit risk assessment process; accounting fundamentals; reading financial statements (including ratio analysis); using budgeted financial statements (including breakeven analysis, what-if analysis and variance analysis); creative accounting; technical accounting update; business structures; current issues in insolvency and loan security.
Assessment Assignment: 25% + Class presentation: 10% + Class participation: 5% + Examination: 60%