CT2 Finance and Financial Reporting Starter Pack

Finance and Financial Reporting subject, CT2 may portray itself as a tedious subject due to the vast informative study material and may not be regarded as one of the major subjects but it should definitely not be paid no heed to as it will prove to be very helpful in the understanding of different financial instruments and a company’s finances.

A compilation of all the general questions about the subject.

 

Q. What is the aim of studying CT2?

Ans. The aim of Finance and Financial Reporting is to provide a fair understanding of corporate finance along with the financial instrument used by companies to raise finance. It also shows a company manages financial risk and the ability to interpret company accounts and their financial statements.

 

Q. Contrast in difficulty level for a Commerce and a Science Student

Ans. It is a challenging subject for a science student as they do not have a base to begin with. Although, an inquisitive nature and in-depth studying will definitely take them to the finish line.
On the contrary, a commerce student will swiftly glide through the subject.

 

Addressing questions, a student has with regards to exam preparation.

Q. Is there an update to CT2 in the 2019 curriculum? 

Ans. There are no updates, hence, one can decide to appear for CT2 according to one’s own planning and choice.

 

Q. How much time is required to complete the syllabus?

Ans. An approximate of 150-200 hours is recommended by the institute. Although, it is subject to the hard work and efforts put in by the student.

 

Q. What is the passing mark of IFoA and IAI?

Ans. The passing mark ranges from 50-60. Although, rather than aiming for a concrete passing mark, a student must focus on completing the entire paper with 100% accuracy and the benchmark must be set to about 90 marks.

 

Q. Would it be a good idea to take CT2 coaching classes?

Ans. In my opinion, CT2 tuition is not required because it is purely theoretical and analytical. Only when one studies on their own, will they understand the concepts extremely well. It is comparatively simple for students from the commerce or business background whereas students from science background may find it difficult to grasp and hence, opt for coaching classes.

 

Q. What are the important factors and cheat codes that one should keep in mind while preparing for the CT2 paper?

Ans. Solely based on independent research and analysis, certain trends and patterns have been observed in the way IAI and IFoA set their question papers.

IFoA mainly tests a students’ business and decision making skills. They set their major proportion of their paper on situational questions where one has to deduce the situation and infer their decision wisely. There will be a maximum of 30 marks devoted to simple accounting.

IAI tests a students’ practical and theoretical knowledge in equal proportions. In comparison with IFoA, the theoretical questions are very straight forward that require bookish knowledge and some that require the knowledge on current affairs. The numerical and accounting sums are fairly more complex so one must practice them well.

 

Lastly, some clarifications to assist a student with writing their examination.

Q. With reference to multiple-choice questions – Can the solution workings be shown to obtain partial credit?

Ans. There isn’t a system of partial credit for MCQs hence only 1 answer should be written the way it has been stated in the question paper. There is no need to show the working.

 

Q. Is it OK in Subject CT2 to write in bullet points?

Ans. Answers are accepted in any format as long as they are concise and to the point. One must refrain from beating around the bush.

 

Quick Tips
  • Study CT2 from the perspective of an entrepreneur as the subject will become a lot more interesting and fun!
  • Make chapter wise notes as they are very handy during revision.

 

ALL THE BEST!

To know more on how to prepare for actuarial science exams, click here.

If you have already cleared CT-2 and need a quick review, click here.

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