
- •Fundamental Economic Principles and Economic Models. Фундаментальные принципы экономики и экономические модели.
- •Supply and Demand. Спрос и предложение.
- •Consumer and Producer Surplus. Market Reaction to Government Intervention. Излишек потребителя и производителя. Реакция рынка на вмешательство правительства.
- •Elasticity. Эластичность.
- •Theory of Consumer Behavior and Rational Choice. Теория потребительского поведения и рационального выбора.
- •Basic Economic Theory of Risk. Expected Utility Function, Risk Premium and Risk Aversion Measures. Основы экономической теории риска. Функция ожидаемой полезности. Премия риска и избегание риска.
- •Profit Maximization and Theory of Firm and Industry Supply. Максимизация прибыли и теория предложения фирмы и отрасли.
- •Production Costs in Short Run vs. Long Run. Производственные затраты в краткосрочном и долгосрочном периоде.
- •The Model of Perfect Competition. Модель совершенной конкуренции.
- •The Theory of Monopoly. Теория монополии.
- •Oligopoly and Game Theory. Олигополия и теория игр.
- •Monopolistic Competition. Монополистическая конкуренция.
- •The Economic Theory of Taxation. Экономическая теория налогообложения.
- •The Economics of Welfare State. Экономика государства всеобщего благоденствия.
- •Externalities and Transaction Costs. Экстерналии и транзакционные затраты.
- •Public Goods, Common Resources, and Artificially Scarce Goods. Общественные товары, общие ресурсы и искусственно редкие товары.
- •Information Asymmetry. Adverse Selection and Moral Hazard. Информационная асимметрия. Враждебный выбор и моральный ущерб.
- •Aggregate Demand and Aggregate Supply. Model ad-as. Совокупный спрос и совокупное предложение.
- •Consumption, Savings, and Investments. Income and Expenditure. "Keynesian Cross". Потребление, сбережение. Инвестирование. Доход-затраты. Кейнсианский крест.
- •Long Run Economic Growth. Долгосрочный экономический рост.
- •The Theories of Business Cycles. Теории экономических циклов.
- •Inflation, Disinflation, and Deflation. Инфляция, Дизинфляция и Дефляция.
- •Unemployment and Inflation. Безработица и инфляция.
- •Fiscal Policy. Фискальная политика.
- •Monetary Policy. Монетарная политика.
- •28. The Theories of International Trade. Теории международной торговли.
- •29. Open Economy Macroeconomics. (Balance of Payments, Exchange Rates, ppp). Открытая экономика (платежный баланс, обменные курсы валют, ппс)
- •30. The composition of the global financial market: instruments, participants, sources of information. Состав глобального финансового рынка: инструменты, участники, источники информации.
- •32. Types of banks and their role in the international financial market. Типы банков и их роль на международном финансовом рынке.
- •33. The global equities market: size, indicators, principles of organization. Глобальный рынок капитала: размер, индикаторы, принципы организации.
- •34. The global debt securities market: types, composition, principles of organization. Глобальный долговой рынок ценных бумаг: типы ценных бумаг, состав, принципы организации.
- •36. The government bond markets: size, composition, significance. Рынки правительственных облигаций: размер, состав, значение.
- •37. Rating agencies and their role in the global financial market. Рейтинговые агентства и их роль и значение на глобальном финансовом рынке.
- •38. Types of institutional investors and their role in the global financial markets. Типы институциональных инвесторов и их роль на мировых финансовых рынках.
- •39. The functions of the international financial organizations (imf, World Bank, bis). Функции международных финансовых организаций (мвф, Всемирный банк, Банк международных расчетов.)
- •International trade financing: International banks are the leading source of credit for multinational corporations and many governmental units. They provide both st & lt financing.
- •41. Fighting International Money Laundering and Offshore Banking Markets. Борьба с международным отмыванием денег и оффшорные банковские рынки.
- •42. Mergers and Acquisitions in Financial Services Markets. Слияния поглощения на рынках финансовых услуг.
- •43. International Financial Centers. Международные финансовые центры.
- •46. European Stability Mechanism and Fiscal Compact. Европейский стабилизационный механизм и пакт о финансовой стабильности и росте.
- •47. European Debt Crisis, us Fiscal Cliff, and Federal Budget Sequester. Европейский долговой кризис. Фискальный обрыв и секвестр федерального бюджета сша.
- •48. Wto and the problems of the Russian Federation participation in it. Вто и проблемы участия в ней рф.
- •50. Stabilization Funds. Стабилизационные фонды.
- •51. Necessity and preconditions of Appearance and Applications of Moneys. Evolution of Forms and Types of Moneys.Необходимость и предпосылки появления и применения денег. Эволюция форм и видов денег.
- •52. The Problem of Money Supply Measurements in Modern Economy. The Specifics of Russia.Проблемы измерения денежной массы в современной экономике. Особенности России.
- •53. Monetary Emission and Printing Money.Выпуск денег в хозяйственный оборот и денежная эмиссия.
- •54. Modern Basics of Cash at Bank monetary Circulation: Russian Specifics. Современные основы организации безналичного денежного оборота: особенности России.
- •55. The Development of Forms of Credit and their Role in Modern Economy. Развитие форм кредита и их роль в современной экономике России.
- •56. Economic Foundations of Forming the Level of Loan Interest and its Role in the Market Economy.Экономические основы формирования уровня ссудного процента и его роль в рыночной экономике.
- •57. The Conditions and Specifics of Modern Banking System in Russia. Состояние и особенности развитие современной банковской системы России.
- •58. The Role of Banks and Non-Banking Credit Organization in Modern Market Economy in Russia.Роль банков и небанковских кредитных организаций в современной рыночной экономике России.
- •61. Classified Financial Statements and Ratios. Corporate Financial Statements. Классифицированные финансовые отчеты и показатели. Корпоративная финансовая отчетность.
- •62. Merchandising Operations. Merchandising Income Statement. Inventories. Торговые операции. Отчет о прибыли торговой организации. Товарные запасы.
- •63. Internal Control. Внутренний контроль.
- •64. Cash and Receivables. Денежные средства и дебиторская задолженность.
- •65. Short-Term Investments, Long-Term Investments (Debt, Equity). Краткосрочные инвестиции. Долгосрочные инвестиции (долг, капитал).
- •66. Current Liabilities. Текущие обязательства.
- •67. Long Term Liabilities. Долгосрочные обязательства.
- •68. Long Term Assets. Долгосрочные активы.
- •69. Contributed Capital. Акционерный капитал.
- •Cash Flow Statement. Отчет о движении денежных средств.
- •71. Consolidated Financial Statements. Консолидированная финансовая отчетность.
- •74. Capital Structure Concept. Dividend Policy. Концепция структуры капитала. Дивидендная политика.
- •75. Arbitrage Pricing Theory (apt). Capital Asset Pricing Model (capm). Теория арбитражного ценообразования. Модель оценки капитальных активов.
- •77. Asset Based Valuation Model, Residual Income Valuation Model. Модель оценки на основе активов. Модель оценки на основе остаточного дохода.
- •78. Dividend Discount Model. Discounted Cash Flow Valuation Model. Модель дисконтированных денежных потоков.
- •Risky assets and portfolio optimization problem. Рисковые активы и проблема оптимизации портфеля.
- •Credit Risk Models. Модели кредитного риска.
- •Translation Exposure. Трансляционная экспозиция.
- •Transaction Exposure. Транзакционная экспозиция.
- •Operating Exposure. Операционная экспозиция.
- •Classification and comparative characteristics of derivatives: options, swaps, futures, forwards. Классификация и сравнительные характеристики деривативов: опционы, свопы, фьючерсы, форварды
- •Interest Rate Derivatives: Interest Rate Agreements, Interest Rate Swaps, etc. Деривативы процентных ставок: соглашения по процентным ставкам, свопы процентных ставок, и т.П.
- •Exotic Derivatives.Экзотические деривативы.
- •Advanced Structured Financial Products.Продвинутые структурные финансовые продукты.
- •Financial Risk Forecasting Techniques. Методы прогнозирования финансовых рисков.
71. Consolidated Financial Statements. Консолидированная финансовая отчетность.
The objective of IFRS 10 is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.
Consolidated Financial Statements - the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity
When a company acquires another, and both companies continue their separate legal existence, consolidated financial statements must be presented. The parent company is the company that gains control over the other company. The subsidiary company is the company that the parent acquires. When the parent buys 100 percent of the subsidiary, the resulting consolidated financial statements look the same as they would if the companies were combined into one in a simple merger. A parent prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances.
Consolidated Balance Sheet
The purchase method of preparing consolidated financial statements combines similar accounts from the separate statements of the parent and the subsidiaries. It is necessary to eliminate intercompany transactions, debt, receivables and payables between parent and subsidiaries. Besides, when the balance sheets of the two companies are combined, Investment in Subsidiary account in parent company and stockholders’ equity accounts in subsidiary must be eliminated to avoid duplicating them in the consolidated financial statements.
When a parent company purchases less than 100% but more than 50% of a subsidiary’s voting stock, it will have control over the subsidiary, and it must prepare consolidated financial statements. It must also account for the interests of the subsidiary’s stockholders who own less than 50% of the voting stock. These are the minority stockholders, and their minority interest must appear on the consolidated balance sheet as an amount equal to their percentage of ownership times the subsidiary’s net assets.
The Accounting Principles Board has provided the following guidelines for consolidating a purchased subsidiary and its parent when the parent pays more than book value for its investment in the subsidiary: First, all identifiable assets acquired and liabilities assumed in a business combination should be assigned a portion of the cost of the acquired company, normally equal to their fair values at date of acquisition. Second, the excess of the cost of the acquired company over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed should be recorded as goodwill. Goodwill is carried on the balance sheet at cost and is subject to an annual impairment test. When the parent company pays less than book value for its investment in the subsidiary, Opinion No. 16 of the Accounting Principles Board requires that the excess of book value over cost of the investment be used to lower the carrying value of the subsidiary’s long-term assets.
If a company owns more than 50 percent of a foreign subsidiary and thus exercises control, the foreign subsidiary should be included in the consolidated financial statements. The consolidation procedure is the same as the one we described for domestic subsidiaries, except that the statements of the foreign subsidiary must be restated in the reporting currency before consolidation takes place.
Financial management
72. Accounting Rate of Return, Payback, and Profitability Index Methods as Investment Rules. Application and Possible Problems. Учетная норма доходности, отдача и индекс прибыли как правила инвестирования. Применение и возможные проблемы.
The Accounting Rate of Return provides you with the return of the project which should be compared with the cost of raising capital to finance this project. A simple method is to accept any project that has an ARR that is higher than the cost of capital. The ARR has two different formulas that can be used to derive the return of the project.
ARR=Average Annual Profit/Initial Investment, where: 1) Average Annual Profit is the annual cash inflow that the project will generate after deducting depreciation; 2) Initial Investment is the capital expenditure that is required to undertake the project.
ARR=Average Annual Profit/Average Investment, where Average Investment is the capital expenditure that is required to undertake the project plus the salvage value of the machinery divided by two.
Advantages: 1) Simplicity; 2) Accounting date. The accounting rate of return can be readily calculated from the accounting data; 3) Comparability. It offers a certain degree of comparability between projects.
Disadvantages:1) It ignores time value of money. 2) It can be calculated in different ways. There is problem of consistency. 3) It uses accounting income rather than cash flow information.
Payback Period method attempts to forecast how long it will take for the expected net cash inflows to pay back the net investment outlays. The payback period rule for investment decisions states a particular cutoff date. For example, initial investment = 100, yearly income = 50 for 3 years, obviously, PBP = 2 years.
Advantages: Simplicity. Disadvantages:1) It ignores time value of money. 2) It ignores payments after Payback date. 3) It does not account for risk, financing or opportunity cost.
Additional complexity arises when the cash flow changes sign several times; i.e., it contains outflows in the midst or at the end of the project lifetime. The modified payback period algorithm may be applied then. First, the sum of all of the cash outflows is calculated. Then the cumulative positive cash flows are determined for each period. The modified payback period is calculated as the moment in which the cumulative positive cash flow exceeds the total cash outflow.
Profitability index is the ratio of the present value of the future expected cash flows after initial investment divided by the amount of the initial investment. (Profitability Index = Net Present Value / Initial Investment). (There is another version of the profitability index, whereby the present value of all cash inflows is divided by the present value of cash outflows. The resulting ranking will be the same as with the profitability index). It is a useful tool for ranking projects.
At PI=0 – breakeven (NPV=0), if PI > 0 then accept the project, if PI < 0 then reject the project.
Advantages: 1) Simplicity; 2) Possibility to rank projects.
Disadvantages: 1) Problem of multiple CFs (additional negative CF within the range of positive CFs (e.g.: -100; 50; 50; 50; -10; 50…)); 2) Problem of scale (PI can indicate to choose a smaller project with higher PI, but lower NPV).
73. Internal Rate of Return, Net Present Value Methods as Investment Rules. Application and Possible Problems. Внутренняя ставка доходности, чистая дисконтированная стоимость, как инвестиционные правила. Применение и возможные проблемы.
NPV is an indicator of how much value an investment or project adds to the firm. The basis for the NPV method is the assumption that one dollar today is worth more than one dollar tomorrow as today's dollar can be invested and generates interest.
NPV= CF1/(1+r1)1 + CF2/(1+r2)2+…-I0, where r – discount rate (market rate or expected rate of return by shareholders).
The profitability is assessed by examining the return on the invested capital and achieved under the assumption of a discount rate.
NPV rule: accept if > 0, reject if < 0. Participating in a positive NPV project will increase firm’s or shareholder’s wealth.
The NPV method is suitable for both the assessment of new investments as well as the comparison of investment alternatives. The investment with the higher net present value is the more favorable alternative.
Advantages:1) Uses CFs, not earnings; 2) eliminates time component; 3) results in investment decisions that add value. Disadvantages:1) difficult to predict CFs; 2) assumes a constant discount rate over life of investment.
Internal Rate of Return is the most important alternative to the NPV method. The basic rationale behind the IRR method is that it provides a single number summarizing the merits of a project. That number does not depend on the interest rate prevailing in the capital market. That is why it is called the internal rate of return; the number is internal or intrinsic to the project and does not depend on anything except the cash flows of the project.
In case of investing, the project with IRR more or equal to cost of capital must be chosen, in case of financing – vice versa.
To
determine IRR, we need to solve the following equation:
Problems: IRR must be used for independent projects with CFs including only one change of sign (i.e. -10; 10; 10…). 1) For mutually exclusive projects IRR can indicate to choose a smaller one with less NPV (scale problem). In this case, the incremental IRR is used. All CFs for 2 mutually exclusive projects are summed for each period, thus, we will obtain one CF range and can calculate IRR. If incremental IRR>discount rate => choose the project which is bigger in volume. 2) If there are more than one change of sign, then the problem of multiple IRRs arises. In such case, Modified IRR must be used. MIRR implies that all the CFs with changes of sign are discounted and then combined with preceding CFn. By several iterations, it is possible to adjust the CF range so as we are left with only one change in sign. Then, the MIRR rule can be applied.