Elective courses for Bachelors studying educational program 'Economics'

Elective courses help students to develop research skills of new economics' sections; it develops the ability of learning.

A good doctor is characterized with the intention to learn new ways to treat diseases; a bad one is guided by stamps and schemes of resolving problems: by methods learned by him earlier. The main character in Chekhov's story "Chamber No. 6"  is the attending physician who prescribes the same medicines to all patients and prescribes diagnoses according to a template. Unfortunately, such doctors exist in modern life in character of economists, who are not prone to constant self-development, not really interested in their field of study, choose the same methods of solving problems in the economy of firms and enterprises.
First of all, the courses highlight the sources of information which are necessary for management decision-making. Comprehensive opinion about the management accounting system allows you to make informed decisions in the role of the flagship of an organization. The analysis of cases in which it is necessary to apply these or those financial strategies is carried out, students study their differences and features. The presented courses will allow you to manage financial and non-financial performance indicators which impact on an ability of business to achieve its goals. 
Unfortunately, mediocre financiers are increasingly common, more and more knowledge is required so that a student masters the creative approach of solving problems. Different knowledge allows you to look at the problems from different points of view and make an informed decision.

THE AUTHORS PRESENTED THE DESCRIPTION OF THE ELECTIVE COURSES BELOW:

International Financial Reporting Standards - Bachelor's second year

Course is designed for bachelor students who have no experience with International Financial Reporting standards, who studied local accounting standards before or has no accounting background at all. This course starts with the overview of the overall understanding of the accounting cycle, including the understanding of how economic events and transactions in the enterprise influence different elements of financial statements. It discusses application of accrual method resulting in the adjusting entries, and covers also closing procedures and reverse entries. It covers the IFRS Concepts Framework and major formats of financial statements according to IFRS. Then the course is focused on the recognition and measurement for short-terms assets, in particular, receivables and inventory, and long-term assets as Property, Plant and Equipment, Intangible assets and Assets Held for Sale. In separate topic is impairment of long-term assets. The course contains concepts of accounting and reporting for lease operations (financial and operating lease). One class is devoted to the Cash Flow Statement preparation techniques. The last part of the course deals with the consolidated financial statements. It covers the main concepts of control, subsidiary, single and consolidated statements. After the course the students will be able to eliminate intra-companies transaction, unrealized gains, to prepare the basic consolidated financial statements. Special part is accounting at the date of acquisition: goodwill, measuring the consideration transferred, measuring the net assets acquired. The course does not require extensive knowledge of mathematics and statistics.

The course has prerequisite is “Financial Accounting” or “Accounting according to the local standards”.

Financial Economics - Bachelor's third year

This course is designed for the third year bachelor students. The course discusses the fundamental concepts in financial economics, including the elements of financial economics theory that are required for making the investment decisions and valuation of financial securities. After the course students will be prepared for subsequent courses in corporate finance, financial markets and other advanced financial courses. The students are expected to be familiar with basic concepts of statistics and microeconomics.

But this course does not require from students very strong mathematical background. The course is concentrated on economic sense of main concepts and processes in financial economics rather than provides rigorous quantitative derivations.

Distribution of workload

1 Financial markets and instruments

2 Discounting

3 Bond market

4 Stock market

5 Portfolio theory and diversification

6 Asset pricing models: the CAPM

7 Asset pricing models: the APT

8 Empirical multifactor models

9 Types of information in financial markets

10 Asset-pricing anomalies and basics of behavioral finance

11 Derivatives and derivative pricing

12 Options and option pricing

13 Emerging markets

Corporate Finance - Bachelor's third year

The Corporate Finance course develops theoretical framework for understanding and analysing major financial decisions of a corporation operating in market environment. The course covers capital budgeting issues, capital structure theory, payout policy, risk management discussions and M&A motives. The main objective of the course is to form a holistic view of how financial and investment decisions in the company are interrelated and how they affect its efficiency and value. The course activities include lectures, classes, group project and self-study (including blended learning).

 

To proceed with the course successfully, students should be familiar with the theories of asset pricing and the basic methods of evaluation of various financial instruments. In this regard, the course prerequisites include Financial economics, Microeconomics (basic level) and Financial accounting.

International finance - Bachelor's third year

This course follows the course Financial Economics and provides a deeper understanding of international financial markets and exchange rate determination. We will discuss who are the main players in the foreign exchange market, what are the major instruments, and what is the structure of these markets. We will study the major models of exchange rate determination and look into the main determinants of foreign exchange fluctuations. We will study currency investment strategies, such as the carry trade, currency momentum and value strategies. We will discuss empirical evidence of profitability and risks of these strategies. We will also talk about the main mechanisms of currency hedging.

The aim of the course is to familiarize students with the foreign exchange market, the dynamics of exchange rates and factors affecting exchange rates. Students will learn the most popular currency investment strategies and currency risk management techniques.

Investment analysis - Bachelor's fourth year

The course aims to study methods of investment projects efficiency, to receive investment analysis skills required in developing company's strategy.

The main topics covered include: 

1. Project evaluation criteria
2. Оustification for required level of cost of capital
3. Project evaluation under uncertainty
4. Investment program creation.

In the course are used the adapted situations from the practice of Russian companies. Participants will have the opportunity to apply this knowledge to the investment projects evaluation in real companies in emerging capital markets.

As a result, students obtain theoretical knowledge and practical skills in the analysis of the investment project; use these results in justification of optimal management decisions, in the strategy development and tactics of financial and investment activities.

The course is taught in collaboration with the managers and partners of Ernst & Young Company.

Business Valuation - Bachelor's fourth year

The course will introduce students to the most frequently used quantitative valuation techniques. The main topics covered include (1) discounted cash flow methods (2) relative valuation using multiples (3) asset-based approach. Particular attention is paid to evaluation of individual groups of assets under the net asset value method: financial assets, real estate, tangible real property, intangible assets. The focus of the course is on the evaluation of companies in emerging capital markets. Students will learn how to conduct firm valuation in terms of high levels of macroeconomic uncertainty, illiquid capital markets, and high levels of political risks. Participants are provided with the opportunity to work in small teams and value different groups of assets and firms in emerging capital markets. The course is taught in collaboration with the managers and partners of Ernst & Young Company.

International corporate finance - Bachelor's fourth year

This course is a corporate finance course of a basic level. The key goal is to provide the student with sufficient knowledge to understand the logic of the modern financial analysis of strategic decisions in multinational corporations including investment and financing policies. The course is focused on the specific features of decision-making process in multinational corporations. The first part of the course constitutes the introduction to the analysis of operating, sovereign and institutional risks of multinational corporation. The second part of the course reviews specific tools and techniques applicable to the investment valuation of multinational company. The third part is devoted to the diversity of instruments available for emerging market company in global capital markets. Every lecture in this course is followed up with the in-class case studies. The course includes 4 case studies:

1. risks of multinational corporation;
2. global asset pricing models;
3. investment valuation in multi- national corporation;
4. raising capital in global capital markets.

To follow the course Basic course in Accounting is a recommended prerequisite.

The course covers such topics as:

• types of risks of multinational corporation;
• currency risk in international projects; global asset pricing models;
• specific features of investment valuation for international projects;
• capital structure with the focus on particularities of raising capital in global capital markets.

Anton Aleksandrovich Shilovsky

Author