FIN280 Financial Modelling

This subject focuses on the skills and techniques required to construct financial models to measure the effects of varying economic and environmental scenarios on an organisation’s performance. Spreadsheet models are used in business valuation, business analysis and risk management. Therefore, the ability to construct, understand and stress test models is an essential skill in applied finance. This subject covers model construction, assumptions, advanced excel functionality, detection and prevention of errors, sensitivity analysis, presentation of model output, and tips and traps. Application involves creation of models to make accurate predictions across varied scenarios and case studies, including reporting and communicating with relevant scenario stakeholders.

For more information, please refer to the subject outline.

  • Learning outcomes
    • On successful completion of this subject, individuals should be able to:

      1. Explain the concept and principles of financial modelling and the skill set required to become a financial modeller
      2. Use Excel to effectively model business problems and extract essential data from spreadsheets
      3. Illustrate best practice modelling techniques by applying strategies for user-friendly design, consistency, error reduction and data security
      4. Effectively summarise and communicate the assumptions, implications and results of spreadsheet models
      5. Interpret and audit model results in the context of the business situation, and address the inherent assumptions through stress testing
  • Subject content
    • Topic Title
      Topic 1 Introduction to financial modelling
      Topic 2 Building a financial model
      Topic 3 Using Excel in financial modelling
      Topic 4 Functions for financial modelling
      Topic 5 Tools for model display
      Topic 6 Tools for financial modelling
      Topic 7 Common uses of tools in financial modelling
      Topic 8 Model review
      Topic 9 Stress-testing, scenarios, and sensitivity analysis in financial modelling
      Topic 10 Presenting model output

  • Duration
    • The duration of this subject is one study period (12 weeks).

  • Assessment
  • Prerequisites
    • There are no prerequisites for this subject. However please review the Assumed Knowledge tab to understand the prior knowledge Kaplan advises you should hold before enrolling in this subject.

  • Assumed knowledge
    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FIN202 Fundamentals of Asset Valuation, or understand the content covered in this subject, prior to undertaking FIN280 Financial Modelling.

  • Course transition subject equivalence
    • Individuals may not be required to complete this subject if they have transitioned from a SIA/Finsia/Kaplan Professional course and have completed the following subjects:

      • There are no equivalences for this subject
  • Reading list
    • Prescribed Text

      Fairhurst, D 2019, Using Excel for Business and Financial Modelling: A Practical Guide, 3rd edn, John Wiley & Sons.