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BUSM072 Financial Markets and Institutions

Semester

1 (2017/18)

Level

7

Module organiser

Dr Ni Peng
email: n.peng@qmul.ac.uk

Module overview

This module is about how the increasingly complex relation between  financial institutions, markets and firms has evolved over a period of time. A process of financial innovation and deregulation is impacting upon recorded accounting numbers and financial performance of firms much more volatile. In the corporate and non-corporate sectors the relation between financial markets and accounting is complex and inter-related. A large proportion of balance sheet values are now adjusted to reflect financial market values and these adjustments can be significant and volatile. Fair value reporting also requires significant external advisory support to inform accountants: actuaries, credit rating agencies and specialists is specific asset valuations. The development of more sophisticated financial products impacts upon a range of corporate and non-corporate institutions.

Assessment

50% coursework (20% in class test and 30% essay) and 50% examination  

Indicative reading list

  • Bromwich ,M , Macve, R Sunder,S (2008) The Conceptual Framework: Revisiting the Basics A comment on Hicks and the concept of ‘income’ in the conceptual framework
    http://www2.lse.ac.uk/accounting/facultyAndStaff/Conceptual%20framework-Revisiting%20the%20Basics_mbrmv__Fri4Jan08_.pdf
  • Financial Accounting Standards Board (FASB, 2001) SFAS 144.
  • Finance Accounting Standards Board (FASB) Statement no 157. Fair Value Measurements
  • Gwilliam, D and Jackson, R Fair value in financial reporting: problems and pitfalls in
    practice – a case study analysis of the use of fair valuation at Enron, Accounting Forum 32(3): 240-259
  • International Accounting Standard 39 (Financial instruments: Recognition and measurement
  • Howell P and Bain K (2007), Financial Markets and Institutions 5th edition Prentice Hall
  • Minsky H.P (1993) ‘The Financial Instability Hypothesis’ The Jerome Levy Economics Institute of Bard College, Working Paper No.74
  • Ryan, S (2008) Fair Value Accounting: Understanding the Issues Raised by the Credit Crunch
    http://www.ifrs.org/Current-Projects/IASB-Projects/Amendments-to-IFRS-7-Financial-Instruments-Disclosures/Exposure-Draft-and-Comment-Letters/Comment-Letters/Documents/CL66.pdf
  • Standard and Poor’s (2006) Global Graying: Aging Societies and Sovereign Ratings, Standard & Poor´s Ratings direct 27th June.

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