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THE CPA LICENSURE EXAMINATION SYLLABUS

FINANCIAL ACCOUNTING AND
REPORTING
Effective May 2019 Examination
This subject covers the candidates’ ability to demonstrate understanding and
application of accounting principles and standards relating to: nature and
composition of accounts, initial recognition, measurement and valuation,
subsequent events and transactions, subsequent measurement and recognition of
losses due to impairment and other causes, related party transactions, financial
statement presentation and disclosures.
The candidates must have a working knowledge in the application of the
various financial accounting and reporting standards relating to the above.
The candidates must also be able to communicate effectively matters pertaining to
the financial accounting work that will be handled.
The knowledge of the candidates in the competencies cited above is that of an
entry level accountant who can address the fundamental requirements of the various
parties that the candidates will be interacting professionally in the future.
Only new standards and other issuances shall be included in the
examinations if these are in effect for at least six (6) months at the date of the
examination.
The examination shall have seventy (70) multiple choice questions.
The syllabus for the subject is presented below.
1.0
Development of Financial Reporting Framework, Standard - Setting
Bodies, Regulation of the Accountancy Profession, Conceptual Framework of
Financial Statements and Accounting Process
1.1 Development of Financial Reporting Framework
1.1.1 Financial Reporting Framework
1.1.2 Components of the Framework
1.2 Standard Setting Bodies
1.2.1 AASC
1.2.2 FRSC
1.2.3 PIC
1.3 Regulation of the Accountancy Profession
1.3.1 Regulators of the Profession
1.3.2 Developments in the Accountancy Professions
1.3.3 Compilation Services
1.3.4 Accreditation of CPA Professionals
1.4 Conceptual Framework
1.4.1 Basic Objectives of Financial Statements
1.4.2 Qualitative Characteristics of Financial Statements
1.4.3 Elements of Financial Statements
1.4.4 Financial Capital and Physical Capital
1.5 Accounting Process
1.5.1 Adjusting Entries
1.5.2 Accounting Cycle
2.0 Presentation of Financial Statements (PAS 1, PAS 7, PAS8,PAS 10, PAS 24, PFRS
5, PAS 33, PAS 18 / PFRS 15)

2.1 Statement of Financial Position

2.2 Statement of Comprehensive Income
2.3 Statement of Cash Flows
2.4 Statement of Changes in Equity
2.5 Notes to the Financial Statements
3

3.0
Financial Assets (PAS 7, PAS 32and PAS39 / PFRS 9, PFRS 7,PAS 28)
3.1Cash and Cash Equivalents
3.2 Loans and Receivables (Financial Assets at Amortized Cost)
3.3 Investments in Debt Instruments and Investments in Equity Instruments
3.3.1 Financial Assets at Fair Value through Profit or Loss (Except Derivatives)
3.3.2Financial Assets at Fair Value through Other Comprehensive Income
3.3.3Financial Assets at Amortized Cost
3.4Investments in Associates (Equity Method of Accounting)
3.5BasicDerivatives (Excluding Hedge Accounting)
3.5.1 Forwards
3.5.2 Futures
3.5.3 Interest Rate Swap
3.5.4 Call and Put Options
4.0 Non-Financial Assets (PAS 2, PAS 16, PAS 36, PAS 40, PAS 38, PAS 41,PFRS
5,PAS 20,PFRS 6, PFRS 13)

4.1 Inventories
4.1. Cost, Lower of Cost or Net Realizable Value
4.1.2 Estimating Procedures
4.2 Property, Plant and Equipment
4.2.1 Nature
4.2.2 Recognition Principle
4.2.3 Initial Recognition Basis
4.2.4 Depreciation Methods
4.2.5 Impairment
4.3 Investment Property
4.3.1 Nature and Measurement Principle
4.4 Intangibles
4.4.1Natureand Recognition Principle
4.4.2 Research and Development Expenditures
4.4.3 Subsequent Expenditures
4.4.4Amortization
4.5
Biological
Assets
4.5.1
Nature
and Recognition P
rinciple
4.5.2
After Initial R
ecognition
4.6
Non
-
Current
Assets Held For Sale
4.6.1
Classification
C
riteria
4.6.2
Initial and Subsequent Measurement P
rinciples
5.0
Liabil
ities (
P
FRIC 1, PAS 32,
PAS 39 /
PFRS 9, PFRS 7, PAS 37
, PFRS 15
)
5.1
Financial Liabilities
5.1.1
Accounts Payable and Other Trade Payables
5.1.1.1
Initial R
ecognition
5.1.1.2
Subsequent M
easurement
5.1.2
Debt Restructuring
5.1.2.1
Nature and F
orms
5.1.2.2
Principles of D
erecognition
5.2
Non
-
Financial Liabilities
5.2.1
Premiums
,
W
arranties
, and
Loyalty Programs
5.2.2
Unearned Revenues for Gift Certificates and S
ubscriptions
5.3
Provisions and Contingencies
5.3.1
Recognition and Measurement C
riteria
4

6.0
Equity
6.1
Share Capital Transactions (PAS 32, PFRS 7)
6.1.1
Share Capital (Nature, Recognition, and
Measurement)
6.1.2
Issuance and Retirement of Preference and Ordinary S
hares
6.1.3
Share Split, Treasury Shares and Other Equity T
ransactions
6.1.4
Recapitalization and Quasi
-
R
eorganization
6.2
Dividends (
PF
RIC 17)
6.3
Retained Earnings
6.4
Other Comprehensive
Income
6.5
Book Value per Sha
re
and
Earnings per Share
(
PAS 33)
6.6
Share
-
based Payments (PFRS 2)
7.0
Other Topics
7.1
Borrowing Costs (PAS 23)
7.1.1
Nature
7.1.2
Criteria for Capitalizing Borrowing C
osts
7.2
Leases (PAS 17
/ PFRS 16
)
7.2.1
Operating L
ease
7.2.2
Finance L
ease
7.3
Income Tax (PAS 12)
7.3.1
Accounting P
rofit
7.3.2
Taxable P
rofit
7.4
Employee Benefits (PAS 19
, PAS 26
)
7.4.1
Defined Benefit P
lan
7.4.2
Defined Benefit Liability or A
sset
7.5
Interim Reporting (PAS 34)
7.5.1
Purpose
7.5.2
Principles for Recognition
7.6
Segment Reporting (PFRS 8)
7.6.1
Identification of S
egments
7.6.2
Measurement of Segment I
nformation
7.6.3
Disclosure
7.7
Cash to Accrual
7.7.1
Purpose
7.7.2
Single
-
Entry Computation of P
rofit
7.7.3
Reconcilin
g Profit Using the Transaction A
pproach
7.7.4
Convert Cash Basis Revenues and Expenses to Accrual Basis Revenues and E
xpenses
8.0
PFRS
for Small and Medium Sized Entities
/
Micro
Enterprises
8.1
Reporting
R
equirements
8.2
Peculiarities
8.3
Principles for R
eporting
Investments in Equity and Debt S
ecurities
5

THE CPA LICENSURE EXAMINATION SYLLABUS

ADVANCED FINANCIAL ACCOUNTING AND REPORTING
Effective May 2019 Examination
This subject covers the candidates’ knowledge of the concepts and principles in
advanced financial accounting and reporting and the application of these accounting
concepts including techniques and methodology to problems likely to be
encountered in practice.
Candidates should know and understand problems involving accounting of special
transactions and their effects and presentation in the financial statements
including among others: accounting for partnerships, corporate liquidation, joint
arrangements, revenue recognition, home office and branch/ principal and
agency transactions, business combinations and consolidations, foreign
currency transactions and translations, not-for-profit organizations, including
government accounting and cost accounting and treatment and presentation of
consolidated financial statements. Also, a working knowledge of the standards
related to these special topics is expected of the candidates.
The candidates must also be able to communicate effectively matters
pertaining to these special accounting topics and the related work that will be
handled.
The knowledge of the candidates in the competencies cited above is that of an
entry level accountant who can address the fundamental requirements of the various
parties that the candidates will be interacting professionally in the future.
Only new standards and other issuances shall be included in the
examinations if these are in effect for at least six (6) months at the date of the
examination.
The examination shall have seventy (70) multiple choice questions.
The syllabus for the subject is presented below.
1.0
Partnership Accounting
1.1
Formation
1.2
Operations
1.3
Dissolution / changes in ownership i
nterest
1.3.1
Admission of a new p
artner
1.3.1.1
By purchase of i
nterest
1.3.1.2
By i
nvestment
1.3.2
Withdrawal, retirement
or death of a p
artner
1.3.3
Incorporation of a p
artnership
1.4
Liquidation
1.4.1
Lump
–
sum m
ethod
1.4.2
Installment m
ethod
2.0
Corporate Liquidation
2.1
Statement of Affairs
2.2
Statement
of Deficiency
2.3
Statement of Realization and Liquidation
2.4
Determination of the order of priority of
claimants of company assets subject to liquidation
3.0
Joint Arrangements (PFRS 11)
3.1
Joint Operations
3.2
Joint Venture (Equity M
ethod)
3.3
Accounting for SME
6

4.0
Revenue Recognition
(PFRS 15)
4.1
Revenue from Contracts with Customers
4.1.1
Five
-
Steps
Model Framework
4.1.1.1
Step
1: Identify the contract with the customer
4.1.1.2
Step 2: Identify the performance obligations in the contract
4.1.1.3
Step 3: Determine the transaction price
4.1.1.4
Step 4: Allocate the transaction price to the performance obligations in the contracts
4.1.1.5
Step 5: Recognize rev
enue when (or as) the entity satisfies a performance obligation
4.1.2
Other Revenue Recognition Issues
4.1.2.1
Sale
with a right of return
4.1.2.2
Warranties
4.1.2.3
Principal versus agent considerations
4.1.2.4
Non
-
refundable upfront fees
4.1.2.5
Licensing
4.1.2.6
Repurchase arrangements
4.1.2.7
Consignment arrangements
4.1.2.8
Bill
-
and
-
hold arrangements
4.1.3
Financial Statement Presentation
4.1.4
Accounting for SME
4.2
Long
–
term C
onstruction Contracts
4.2.1
Journal entries and determination of revenue, costs and gross profit
4.2.1.1
Over Time
4.2.1.1.1
Input Method
4.2.1.1.2
Output Method
4.2.1.2
Point in Time
4.2.2
Gross
amount due from / to customers
4.2.3
Financial Statement Presentation
4.2.4
Accounting for SME
4.3
Franchise Operation
s
–
Franchisor’s point of view
4.3.1
Journal entries and determination of revenue, costs and gross profit
4.3.1.1
Initial Franchise Fee
4.3.1.2
Continuing Franchis
e Fee, Bargain Purchase Option
, and Commingled Revenue
4.3.1.3
Repossessed Franchise
4.3.1.4
Option to Purchase the Franchise Outlet
4.3.2
Financial Statement Presentation
4.3.3
Accounting for SME
4.4
Consignment
Sales
5.0
Accounting for Home Office, Branch and Agency Tr
ansactions
5.1
Transactions on the books of the home office and the branch
5.2
Reconciliation of reciprocal accounts
5.3
Preparation of individual and combined financial statements
5.4
Special procedures in home office and branch transactions (inter
–
branch transfer of c
ash and
merchandise at cost or at billed price)
5.5
Accounting for agency t
ransactions
6.0
Business Combination (PFRS 3)
6.1
Acquisition of assets and liabilities (acquisition method)
6.1.1
Determination of Consideration Transferred
6.1.2
Recognition of Acquired Assets and
Liabilities
6.1.3
Recognition and Measurement of Goodwill and Gain from a Bargain Purchase
6.1.4
Journal Entries
6.2
Financial Statement Presentation
6.3
Accounting for SME
7

7.0
Separate Financial Statements (PAS 27)
7.1
Accounting for Investment in Subsidiary (
A
t cost,
In
accordance with PFRS 9, and
E
quity
M
ethod)
7.2
Financial Statement Presentation
7.3
Accounting for SME
8.0
C
o
nsolidated Financial Statements (PFRS 10)
8.1
Consolidated Financial Statement in Subsidiary
8.1.1
Date of acquisition
8.1.2
Subs
equent to date of acquisition (A
tc
ost, I
n accordance with
PFRS 9, and Equity M
ethod)
8.1.2.1
Net income, dividends, amortization and impairment of goodwill
8.1.2.2
With intercompany transactions (inventories, land and depreciable assets)
8.1.3
Determination of:
8.1.3.1
Net Income
/
Total Comprehensive Income
/
Equity
8.1.3.1.1
Attribution to Equity Holders of Parent
/ Controlling or Parent’s Interest
8.1.3.1.2
Non
-
controlling Interest
8.1.3.1.3
Consolidated
/ Group
8.1.3.2
Retained Earnings
/ Common Share / Dividends
8.1.3.2.1
Attributable to Equity Holders of Parent / Controlling or Parent’s
Interest
/
Consolidated / Group
8.2
Accounting for SME
9.0
Foreign Currency Transactions
(PFRS 9)
9.1
Without Hedging A
ctivities (import, export, lending, and borrowing transactions)
9.2
Hedging Activities: Hedging Foreign Currency Exposures
9.2.1
Foreign Currency Forward Contacts
9.2.1.1
Hedges
where Hedge A
ccounting is Not Required
(undesignated hedges)
9.2.1.1.1
Exposed Asset (i
mport) or Liability (export) Position
9.2.1.1.2
Speculation
9.2.1.2
Hedges t
hat requires a Hedge Accounting
9.2.1.2.1
Fair value hedge
9.2.1.2.1.1
Hedge of a Fi
rm Commitment (purchase or sale
transaction)
9.2.1.2.2
Cash
flow hedge
9.2.1.2.2.1
Hedge of a Firm Commitment (purchase or sale
transaction)
9.2.1.2.2.2
Hedge of a Forecasted
Transaction (purchase or sale
transaction)
9.2.1.2.3
Hedge of a net investment in foreign entity
9.3
Accounting for SME
10.0
Translation of Foreign Currency Financial Statements (PAS
21
/ PAS 29)
10.1
Translation from the Functional Currency to the Presentation Currency (Closing
/ Current Rate Method)
10.2
Remeasurement from a Foreign Currency to the Functional Currency (Temporal
Method)
10.3
Restatement of Financial Statements
11.0
Not
–
for
–
profit o
rganizations
11.1
Voluntary health and welfare organizations (VHWO)
11.2
Hospitals and other health care organizations
11.3
Colleges and universities
11.4
Other not
–
for
–
profit organizations such as churches, museums, fraternity association, etc.
12.0
Government Accounting
–
General Fund
12.1
Basic Concepts in Government Accounting
12.2
Budget Process
12.3
Journal Entries
–
Books of National Government Agency
8

13.0
Other S
pecial Topics (Basic K
nowledge)
13.1
Accounting for insurance contracts by insurers (PFRS 4
/ PFRS 17
)
13.2
Accounting for build,
operate & transfer (PFRIC 12)
14.0
Cost Accounting
14.1
System of cost accumulation or costing s
ystem
14.1.1
Comparison between actual costing, normal costing and standard c
osting
14.2
Job
–
order
costing s
ystem
14.2.1
Cost accumulation procedures
–
materials, labor and overhead
14.2.2
Journal entries
14.2.3
Preparation of statement of goods manufactured and sold
14.2.4
Accounting for scrap, waste, spoilage and rework
14.3
Process costing s
ystem
14.3.1
Cost accumulation procedures
–
materials, labor and overhead
14.3.2
Journal entries
14.3.3
Preparation of cost of production r
eport
14.3.3.1
First
–
in, first
–
out (FIFO) method
14.3.3.2
Average method
14.3.4
Accounting for lost units
14.3.4.1
Normal lost units
14.3.4.2
Abnormal lost unit
s
14.4
Backflush costing system (JIT system)
14.4.1
Cost a
ccumulation procedures
–
materials, labor and overhead
14.4.2
Journal entries
14.5
Service cost a
llocation
14.5.1
Direct method
14.5.2
Step
–
down
method
14.5.3
Reciprocal method
14.6
Activity
–
based costing system (ABC costing)
14.6.1
Allocation of costs:
Traditional costing versus ABC c
osting
14.6.2
Determination of t
o
tal product costs: Traditional c
osting versus ABC costing
14.7
Accounting f
or joint and by
–
products
14.7.1
Methods of allocating joint cost to products
14.7.1.1
Market (s
ales) value method:
14.7.1.1.1
Market value at split
–
off point approach
14.7.1.1.2
Hypothetical Market Value Approach or Approximated Net Realizable
Value
Approach or Net Realizable Value Method
14.7.1.1.3
Average unit (production o
utput) method
14.7.1.1.4
Weight average method
14.7.1.2
Methods of allocating joint cost to b
y
–
products
14.7.1.2.1
No joint cost allocated to by
–
product
14.7.1.2.2
With joint costs allocated to by
–
product
14.7.1.3
Treatment of by
-
products
14.8
Standard C
osting (two
-
way variance
excluding mix and yield variances)
14.8.1
Computation of Variances
14.8.2
Journal Entries and reporting
9

THE CPA LICENSURE EXAMINATION SYLLABUS

MANAGEMENT A
DVISORY
SERVICES
Effective
May 2019
Examination
The subject covers the candidates’ knowledge of the
concepts, techniques and methodology applicable to management
accounting, financial management and management consultancy. Candidates
should know and understand the role of
information in accounting, finance and economics in management consultancy
and in m
anagement processes of
planning, controlling and decision
-
making.
The candidates must have a working
knowledge in the application of the various topics relating to the above.
The knowledge of the candidates in the competencies cited above is that of an e
ntry level accountant who can address
the fundamental requirements of the various parties that the candidates will be
interacting professionally in the future.
Only new standards and other issuances shall be included in the
examinations if these are in ef
fect for at least six (6)
months at the date of the examination.
The examination shall have seventy (70) multiple choice questions.
The syllabus for the subject is presented below.
1.0
Management Accounting
1.1
Objectives, role and scope of management
accounting
1.1.1
Basic management functions and concepts
1.1.2
Distinction among management accounting, cost accounting and financial
accounting
1.1.3
Role and activities of controller and treasurer
1.1.4
International certifications in management accounting
1.2
Management Accounting
Concepts and Techniques for Planning & Control
1.2.1
Cost terms, concepts and behavior
1.2.1.1
Nature and classification of costs
1.2.1.2
Analysis of cost behavior (variable, fixed, semi
-
variable
/
mixed, step
-
cost)
1.2.1.3
Splitting mixed cost (high
-
low, scatter graph, least
-
squares
regressions)
1.2.2
Cost
-
volume
-
profit (CVP) analysis
1.2.2.1
Uses, assumptions and limitations of CVP analysis
1.2.2.2
Factors affecting profit
1.2.2.3
Breakeven point in unit sales and peso sales
1.2.2.4
Required selling price, unit sales and peso sales to achieve a target profit
1.2.2.5
Sensitivity
analysis (including indifference point in unit sales and peso sales)
1.2.2.6
Use of sales mix in multi
-
product companies
1.2.2.7
Concepts of margin of safety and degree of operating leverage
1.2.3
Standard costing and variance analysis
1.2.3.1
Direct material variance (quantity, price
usage, purchase price, mix and yield)
1.2.3.2
Direct labor variance (efficiency, rate, mix and yield)
1.2.3.3
Factory overhead variance
–
two
-
way method (controllable and volume); three
-
way
method (spending, variable efficiency and volume); four
-
way method (variable
spend
ing, fixed spending, variable efficiency and volume)
1.2.4
Variable costing and absorption costing
1.2.4.1
Nature and treatment of fixed factory overhead costs
1.2.4.2
Distinction between product cost and period cost
1.2.4.3
Inventory costs between variable costing and absorption costi
ng
1.2.4.4
Reconciliation of operating income under variable costing and absorption costing
1.2.5
Financial planning and budgets
1.2.5.1
Definition and coverage of the budgeting process
1.2.5.2
Master budget and its components (operating and financial budgets)
1.2.5.3
Types of budgets (static,
flexible, zero
-
based, continuous)
1.2.5.4
Budget variance analysis (static and flexible)
10

1.2.6
Activity
-
based costing (ABC) and activity
-
based management (ABM)
1.2.6.1
Activity levels (unit
-
level, batch
-
level, product
-
level and facility
-
level), cost pools and
activity drivers
1.2.6.2
Determination of cost pool rates and application of overhead costs
1.2.6.3
Traditional costing versus activity
-
based costing
1.2.6.4
Process value analysis (value
-
added activities and non
-
value
-
added activities)
1.2.7
Strategic cost management
1.2.7.1
Total quality management
1.2.7.2
Just
-
in
-
time production system
1.2.7.3
Continuous improvement
1.2.7.4
Business process reengineering
1.2.7.5
Kaizen costing
1.2.7.6
Product life cycle costing
1.2.7.7
Target costing
1.3
Management Accounting Concepts and Techniques for Performance Measurement
1.3.1
Responsibility accounting and transfer
pricing
1.3.1.1
Type of responsibility centers (cost, revenue, profit and investment centers)
1.3.1.2
Concepts of decentralization and segment reporting
1.3.1.3
Controllable and non
-
controllable costs, direct and common costs
1.3.1.4
Performance margin (manager versus segment performance
)
1.3.1.5
Preparation of ‘segmented’ income statement
1.3.1.6
Return on investment (RoI), residual income and economic value added (EVA)
1.3.1.7
Rational and need for transfer price
1.3.1.8
Transfer pricing schemes (minimum transfer price, market
-
based transfer price,
cost
-
based transfer
price and negotiated price)
1.3.2
Balanced scorecard
1.3.2.1
Nature and perspectives of balanced scorecard
1.3.2.2
Financial and non
-
financial performance measures
1.4
Management Accounting Concepts and Techniques for Decision Making
1.4.1
Quantitative techniques
1.4.1.1
Regression and
correlation analysis
1.4.1.2
Gantt chart
1.4.1.3
Program evaluation review technique (PERT)
–
Critical Path Method (CPM)
1.4.1.4
Probability analysis (expected value concept)
1.4.1.5
Decision tree diagram
1.4.1.6
Learning curve
1.4.1.7
Inventory models (carrying and ordering costs, EOQ model, safety sto
ck, reorder
point)
1.4.1.8
Lin
ear programming (graphic method
;
algebraic method)
1.4.2
Relevant costing and differential analysis
1.4.2.1
Definition and identification of relevant costs
1.4.2.2
Concept of opportunity costs
1.4.2.3
Approaches in analyzing alternatives in non
-
routing decisions
(total and differential)
1.4.2.4
Types of decisions (make or buy, accept or reject special order, continue or drop
/
shutdown, sell or process further, best product combination, pricing decisions)
11

2.0
Financial Management
2.1
Objectives and Scope of Financial
Management
2.1.1
Nature, purpose and scope of financial management
2.1.2
Role of financial managers in investment, operating and financing decisions
2.2
Financial Management Concepts and Techniques for Planning, Control & Decision
Making
2.2.1
Financial statement analysis
2.2.1.1
Vertical analysis (common
-
size financial statements)
2.2.1.2
Horizontal analysis (trend percentages and index analysis)
2.2.1.3
Cash flow analysis (interpretation of cash flows including free cash flow concept)
2.2.1.4
Gross profit variance analysis (price, cost and volume factor
s)
2.2.1.5
Financial ratios (liquidity, solvency, activity, profitability, growth and other ratios; Du
Pont model)
2.2.1.6
Financial forecasting using additional funds needed (AFN)
2.2.2
Working capital finance
2.2.2.1
Concepts and significance of working capital management
2.2.2.2
Working cap
ital investment and financing policies (conservative vs. aggressive)
2.2.2.3
Cash and marketable securities management (cash conversion cycle, optimal cash
balance, collection and disbursement float, cash management system)
2.2.2.4
Receivables management (average balance
of and investment in accounts
receivable, incremental analysis and evaluation of discount, collection and
credit
policies)
2.2.2.5
Inventory management (carrying, ordering and stock
-
out costs, inventory control
system including EOQ model, safety stock, reorder poi
nt)
2.2.2.6
Sources of short
-
term funds (trade credit, bank loans, commercial papers,
receivable factoring)
2.2.2.7
Estimating cost of short
-
term funds (annual cost of trade credit, effective and
nominal annual rate of short
-
term funds)
2.2.3
Capital budgeting
2.2.3.1
Capital investmen
t decision factors (net investment for decision making, cost of
capital, cash and accrual net returns)
2.2.3.2
Non
-
discounted capital budgeting techniques (payback period, accounting rate of
return on original and average investment, bail
-
out payback and payback
r
eciprocal)
2.2.3.3
Discounted capital budgeting techniques (net present value, internal rate of return,
profitability index, equivalent annual annuity, fisher rate
/ NPV point of indifference)
2.2.3.4
Project screening, project ranking and capital rationing (independent a
nd mutually
exclusive capital investment projects)
2.2.3.5
Sensitivity analysis (effects of changes in project cash flow, tax rates and
other
assumptions)
2.2.4
Investments, r
isks and rates of returns
2.2.4.1
Types of risks (business
/ operating, financing)
2.2.4.2
Measures of risks
(coefficient of variation and standard deviation)
2.2.4.3
Degree of operating, financial and total leverage
2.2.4.4
Derivatives (forwards, futures, swaps and options)
2.2.4.5
Investment models (Black Sholes, CAPM)
2.2.4.6
Capital markets, the Philippine Stock Exchange and other foreign b
ourses
2.2.4.7
Types of investment products and their characteristics
2.2.5
Capital structure and long
-
term financing decision
2.2.5.1
Basic concepts and tools of capital structure management
2.2.5.2
Sources of intermediate and long
-
term financing (including hybrid financing)
2.2.5.3
Cost of c
apital (cost of long
-
term debt, cost of preferred shares, cost of equity,
weighted average cost of capital, marginal cost of capital)