Institute of Actuaries Of India-Subject CT2 - Finance and Financial Reporting Papers

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Finance and Financial Reporting paper of Institute of Actuaries of India generally consists of topics like investment and asset management, inter-relationship between finance, real resources, stakeholders in organization, role and effects of capital markets, agency theory, maximization theory, structure of joint stock company, difference between private and public company, types of medium and short term company finance, principles of personal and corporate taxation, issues to existing stakeholders, factors considered while deciding on dividend policy and capital structure, fundamental accounting concepts, annual reports and accounts, calculations involving income and asset cover, priority percentages etc.,

Question Paper Pattern

Neither marks nor number of question remain constant in the paper. No multiple choice questions will be given. Objective and subjective questions can be found and necessary graph papers, calculator and actuarial tables should be in hand.

All questions should be attempted and answer to every question should be given on a separate sheet for subjective type. All the answer scripts should be arranged in the order of questions appeared. Both the question paper and the answer scripts should be submitted at the end of the examination.

Areas to be emphasized

Around 10-12 questions land up as objective in which, they stress upon the definitions of types of markets allowances; relationships, formulae. While the calculation part usually includes the cash flow statement, reserves, profits and losses incurred statements, weight average cost of capital (WACC), drawing comparison tables, capital asset pricing model (CAPM).

Time allotted and Maximum marks

The time allotted is 3 hours and the maximum marks are 100.

Points for you

The ways you impress the examiner reflect as marks and it all depends on how good you present your paper. Speed, accuracy and presentment put you on top.

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