Associate Diploma 1
The Course entails the following:
ACCOUNTING 2
Aim and Objectives
- To provide further knowledge of the uses and limitations of accounting information, as a basis for understanding the financial affairs of bank customers.
- To alert the candidate to limitations of accounting information
Syllabus
- FINANCIAL ACCOUNTING
THE FRAMEWORK OF ACCOUNTING (15%)
- Theoretical framework
- International Financial Reporting Standards
- Inventory
- Property, plant and equipment
- Provisions and contingencies
- Events after the Balance Sheet Leases
- Accounting concepts
- Accounting standards
- Stock
- Depreciation
- Contingencies
- Post Balance Sheet
- Events
- Leasing
COMPANY FINANCIAL STATEMENTS (15%)
- Published Income statement
- Published statement of financial position
- Published statement of cash flows
- Statement of change in Shareholders’ Equity
- Notes to the Accounts
BASIC CONSOLIDATED FINANCIAL STATEMENTS (INCOME STATEMENT AND BALANCE SHEET) (10 %)
- Wholly owned subsidiaries
- Partly owned subsidiaries (minority interest)
- Intercompany transactions
ANALYSIS OF FINANICAL STATEMETS (10%)
- Use of accounting ratios and implications to business performance, profitability, ratios, rated of return.
- Users of financial statements
- Ratio analysis
- Interpretation of financial ratios from various user’s point of view
- Limitations of ratio analysis
ASSESSMENT OF BUSINESS PERFORMANCE
- MANAGEMENT ACCOUNTING
BUDGETING AND BUDGETARY CONTROL (10%)
- Objectives of a budgetary control
- Procedures in Budget Preparation
- Behavioural aspects of budgeting
- Preparation of Budgets including (Master budget and Cash budgets)
ACCOUNTING FOR DECISION – MAKING (10%)
- Marginal vs Absorption costing technique
- Output and profit planning
- Closure decisions
- Cost/profit/volume analysis break even analysis
CAPITAL STRUCTURE (5%)
- Meaning of Capital Structure
- Effect of debt on financial risk
CAPITAL INVESTMENT APPRAISAL (5%)
- Appraisal of capital projects using techniques such as payback, accounting rate of return and discounted cash flow methods.
COST ANALYSIS (10%)
- Cost classifications
- Fixed and variable costs
- Marginal and sunk costs
- Cost an internal accounting information for resources allocation decisions
- The cash operating cycle
- Break even analysis and its limitations.
GROUP ACCOUNTS (10%)
- Preparation and presentation of group and consolidated accounts including associated companies
- Consolidation adjustments under the acquisition and merger methods distributable profits, minority interests, goodwill (acquisition methods only) and merger reserve (merger method only).
LAW RELATING TO BANKING
Aims and Objectives
To equip candidates with knowledge of the legal principles relevant to banking practice and them to make business decisions.
- Major features of banker – customer relationship and the respective rights and duties of the bank and customers: legal regulation of banking :
- Negotiable instruments
- Mercantile Law principles
- Bank securities – all types
Customers and paper based and electronic money transmission services
- Operation of bank accounts
- Customers and paper based and electronics money transmission services
The syllabus is designed to deal more comprehensively with the major principles of law applicable to the practice of banking
Syllabus
SECTION ABANKER AND CUSTOMER RELATIONSHIP (20%)
- Meaning of Banker Customer
- The significance of definitions
- Relationship of bankers and customer and the implied terms of the relationship
- Duties of banker to customer
- Duties of customer to bank
- Appropriation (rule in Clayton’s case) combination, rights of set-off and banker’s lien
- Operation of bank accounts
BANKER’S SERVICES (15%)
- Basic principles of lending
- Overdraft lending
- Discounting and Negotiation Bills of Exchange
- Collecting and Paying and the Bills of Exchange Act
Types of Customers (10%)
Main legal consideration for the banker when dealing with individuals customers: joint account holders, trustees, partnerships, public and private companies, clubs and societies the insolvency of the customer. The following aspects are important: Age (minors); account opening; agency (in relation to powers of attorney, trustees, directors and partners), Death of metal incompetence of individual customers and partners: termination of mandate and effect of insolvency on individual sole traders; partnerships and limited companies
SECTION BNEGOTIABLE INSTRUMENTS (10%)
Cheques, Payment Order and Payments System
- Essentials of a cheque, crossing, issuing and negotiation.
- Cheques, bank payment orders, banker’s drafts and dividend interest warrants
- Electronic banking in relating to direct credits and debits and withdrawals
- Forgery, fraudulent alteration, loss. Theft and payment. And respective rights of the drawer/payer
- Negotiable instruments: Bills of exchange and the principles of transferability and negotiation.
SECTION CSECURITIES AND GUARANTEES (25%)
Corporate Securities
- Fixed and floating charges
- Registration problems and priorities
- Retentions of title clauses
- Effect of insolvency upon floating charges
- Judicial Management
- Realisation of Securities
Other Bank Securities
- Pledge
- Mortgage
- Lien
- Stocks
- Shares
- Policies
BANKS AND AGENCY (10%)
- General principles of Agency, Types, Creation, obligations and rights of parties under the contract, the doctrine of undisclosed principles termination of principal/agent relationship (relevancy of Agency should be discussed pertaining to the banking business).
Guarantee/Suretyship
- Essential of contracts
- Rights and duties of guarantor and creditor
- Principal debtor and co-sureties
- Determination of guarantee
Effect of Insolvency upon Securities (10%)
- Preference and transaction at an undervalue and other transactions
- General order or priorities in payment of debts fixes and floating charges and preferential creditors
- Prohibited transactions
Prescribed Study Material
Botswana Institute of Banking & Finance Tuition Material
Various Botswana Statutes to include:
- Bills of Exchange Act
- Bank of Botswana Act
- Banking Act 1995
- Administration of Estates Act
- Botswana Saving Bank Act
- Deeds Registry Act
- Exchange Control Act
- Insurance industry Act
- Powers of Attorney Act
- Prescriptions Act
- Registration of Business Names Act
- Wills Act
MANAGEMENT PRACTICES
Aims and objectives
- To develop the students understanding of important Management Principles and theories so as to prepare them for managerial responsibilities in the banking services.
- To facilitate an understanding of the roles, functions and methods and methods of management in the context of financial service.
SyllabusTHE ORGANISATION AND THE BUSINESS ENVIRONMENT (5%)
- Composition of the environment
- Environment scanning
MANAGERIAL (5%)
- Managerial functions
- Roles
- Levels and skills
MANAGERIAL, DECISION MAKING (5%)
- Conditions affecting decision making
- Decision making models and techniques
STRATEGIC PLANNING (10%)
- Strategy level
- Benefits of planning
- Strategic versus tactical plans
- Planning techniques
MANAGING PEOPLE (5%)
- Perceptions, difference in people, managing boss/sub relationships
- Individual
- Group
LEADERSHIP (7%)
- Leadership skills
- Sources of power
- Approaches to leadership
HUMAN RESOURCES MANAGEMENT (10%)
- Planning
- Recruiting
- Selection, recruitment and induction
- Training and development
- Performance appraisals
- Separation
GROUPS AND ORGANISATIONAL CULTURE (5%)
- Types of groups
- Group dynamics
- Organisational Culture
CONFLICT MANAGEMENT (10%)
- Role of conflict
- Conflict management approaches
- The cost of conflict
- Cost of the individual
- Cost of the organization
- Differences in personality
- Understanding and managing feelings
- Steps to resolution
- Preventing conflict – practical approaches
MANAGERIAL CONTROL (7%)
- Purpose and types of control
- Effectiveness of controls
- Management information systems
ORGANISATIONAL CHANGE (6%)
- Planning organizational change
- Change strategies
- Organizational development
BUSINESS ETHICS (10%)
- Power and politics
- Perception
- Job design
- Organisational structure design
- Industrial relations – labour, collective bargaining, disciplinary, grievance procedures
- Total quality management (TQM)
- Ethical concepts
- Social responsibility concepts
DECISION MAKING (10%)
- Decision making models and techniques
- Decision making under certainty
- Wald decision criterion
- Savage decision criteria
MANAGING AND CONTROLLING DEPARTMENTAL RESOURCES (5%)Prescribed Study Material
Botswana Institute of Banking & Finance Tuition Material
INTRODUCTION TO INVESTMENTS
Aims and objectives
– To introduce students to the basic principles of investment and their relevance to Botswana.
– To expose students to some key areas of investment.
– To expose students to the investment opportunities and conditions prevailing on Botswana.
Syllabus
INTRODUCTION (10%)
- The concept and background to investment
- Definition and scope of investment
- Types of financial markets
- Meaning of:
- Savings
- Speculation
- Gambling and
- Investment
COMPANY CAPITAL (15%)
- Types
- Ordinary Shares
- Preference shares
- Debentures
- Loan stock
- Convertibles, etc
- Rights of Shareholders and Shareholders’ meetings
STOCK EXCHANGE MARKETS (20%)
- Functions
- Botswana Stock Exchange (conditions for listing)
INVESTMENT THEORY AND ANALYSIS (25%)
– Risk and return-systematic and specific risk. Liquidity, flexibility, stability and timing.
– Fundamental analysis cover, yields, price/earning ratio priority percentages,
cash flow liquidity gearing
- Technical analysis, Charts, filter
INCOME STATEMENTS AND BALANCE SHEET (15 %)
– Concepts
– Appreciations
THE INTERPRETATION OF THE INFLUENCES OF CHANGES IN CORPORATION STOCKS AND FLOWS (15 %)
– Taxation
– Sales Value
– Operating margins
– Leverages and other interpretations
NOTE: No specific knowledge of the Stock Exchange Control Act will be required
Prescribed Study Material Botswana Institute of Banking & Finance Tuition Material
TAXATION
AIMS & OBJECTIVES
To equip candidates with the knowledge of basic principles of the Income Tax Act in Botswana
SyllabusBASIC PRINCIPLES (10%)
- Current Income Tax Act and Knowledge of Interpretation of
the basic principles
- Gross Income
- Assessable Income
- Chargeable Income
- Taxable Income
TAXATION OF INDIVIDUALS (20%)
- Determining Residence status for Individuals
- Taxable Income, allowances to resident individuals
- Exempt Income, Tax on housing benefit and other fringe benefits
- Exempt Persons
- Personal tax rates, Computation of Individual Taxable income
- Pay As You Earn
TAXATION OF COMPANIES (20%)
- Taxable Income, assessed losses, rates of tax
- Distinction between private and public companies
- Capital allowances
- Capital gains, carry forward and set off of losses
- Self Assessment Tax (SAT) Annual company returns
WITHHOLDING TAX (15%)
- Withholding tax on dividends, interest, management fees
- Basic knowledge of non-resident tax payers, nonresident shareholders
- Tax on interest, royalty, management fees and know how payment from Botswana-Nonresident tax payer
SPECIAL CLASSES OF TAXPAYERS (10 %)
- Partnerships, farmers, local companies, external companies
- Mining and Insurance companies, shipping and aircraft
- Farmers
- Companies
GENERAL (15%)
- Returns of income, assessments, payment of tax, objections & appeals
OTHER TAXES (10%)
- Value Added Tax
Prescribed study material
Botswana Institute of Banking & Finance Study Material
STATISTICS
AIMS AND OBJECTIVES
To equip the candidates with an understanding of statistics. The explanation of the concepts and the application thereof is emphasized.
No theoretical deductions are expected of the candidate.
SYLLABUSSCOPE ( 5%)
- Explain the scope of the subject of statistics.
POPULATION AND SAMPLES (10%)
- Population and sample
- Sampling methods
- Method of primary data collection
GRAPHIC REPRESENTATION OF DATA ( 5%)
- Requirements of a graph
- Pictographs, pie charts and bar charts.
- Other graphs
FREQUENCY DISTRIBUTION (5%)
- Grouped and ungrouped data
- Graphic presentation of frequency distribution
MEASURES OF CENTRAL TENDENCY AND DISPERSION (5%)
- Mean, Median, Mode
- Range
- Standard deviation and coefficient of variation
- Grouped and ungrouped data calculations
INTRODUCTION TO PROBABILITY DISTRIBUTIONS (25%)
- The concepts of probability, discrete and continuous distributions
- Binomial and normal distributions.
USE OF NORMAL TABLES (10%)
- The standard normal distribution table (Z-table)
- Confidence intervals
- Confident intervals for population average and ratios
HYPOTHESIS TESTING (10%)
- Nature of a statistical hypothesis
- Tests concerning average and ratios
CORRELATION AND REGRESSION ANALYSIS (10%)
- Scatter diagrams
- Ordinary coefficient of correlation and coefficient of determination
- Test for the significance of an ordinary coefficient of correlation
- Regression analysis and the least squares method.
TIME SERIES ANALYSIS (10%)
- Definition of a time series
- The four components of a time series i.e. the trend, cyclical, seasonal and random components
- Method for eliminating seasonal component and determining trend and cyclic components (Moving averages)
- Forecasting by means of a single time series
INTERPOLATION AND EXTRAPOLATION (5%)Prescribed Study Material
Botswana Institute of Banking & Finance tuition Material
NB: THERE ARE NO LECTURE REGISTRATIONS , ONLY EXAMINATIONS FOR COMPLETING STUDENTS
BIBF CONTACTS
Tel: (+267) 3952493
Fax: (+267) 3971469
enquiries@bibf.ac.bw
Physical Address
Plot 54354 ,Central Square
2nd Floor, Unit 201, CBD Gaborone, Botswana
Office Hours
Mo-Fr: 8:00-17:00
Sat: Closed
Sun: closed