CT2 – P C – 14
Combined Materials Pack
ActEd Study Materials: 2014 Examinations
Subject CT2
Contents
Study Guide for the 2014 exams
Course Notes
Question and Answer Bank
Series X Assignments*
*Note: The Series X Assignment Solutions should also be supplied
with this pack unless you chose not to receive them with your study material.
If you think that any pages are missing from this pack, please contact ActEd’s admin team
by email at .
How to use the Combined Materials Pack
Guidance on how and when to use the Combined Materials Pack is set out
in the Study Guide for the 2014 exams.
Important: Copyright Agreement
This study material is copyright and is sold for the exclusive use of the purchaser. You
may not hire out, lend, give out, sell, store or transmit electronically or photocopy any
part of it. You must take care of your material to ensure that it is not used or
copied by anybody else. By opening this pack you agree to these conditions.
The Actuarial Education Company © IFE: 2014 Examinations
, All study material produced by ActEd is copyright and is sold
for the exclusive use of the purchaser. The copyright is owned
by Institute and Faculty Education Limited, a subsidiary of
the Institute and Faculty of Actuaries.
Unless prior authority is granted by ActEd, you may not hire
out, lend, give out, sell, store or transmit electronically or
photocopy any part of the study material.
You must take care of your study material to ensure that it is
not used or copied by anybody else.
Legal action will be taken if these terms are infringed. In
addition, we may seek to take disciplinary action through the
profession or through your employer.
These conditions remain in force after you have finished using
the course.
© IFE: 2014 Examinations The Actuarial Education Company
,CT2: Study Guide Page 1
2014 Study Guide
Subject CT2
Introduction
This Study Guide contains all the information that you will need before starting to study
Subject CT2 for the 2014 exams. Please read this Study Guide carefully before
reading the Course Notes, even if you have studied for some actuarial exams before.
When studying for the UK actuarial exams, you will need a copy of the Formulae and
Tables for Examinations of the Faculty of Actuaries and the Institute of Actuaries,
2nd Edition (2002). These are often referred to as simply the yellow Tables and are
available separately from the Publications shop of the Institute and Faculty of Actuaries.
You will also need a “permitted” scientific calculator from the list published in the
Student Handbook. Please check the list carefully, since it is reviewed each year. You
will find the list of permitted calculators and a link to the Publications shop on the
profession’s website at www.actuaries.org.uk.
Contents
Section 1 The Subject CT2 course structure Page 2
Section 2 ActEd study support Page 3
Section 3 How to study to pass the exams Page 14
Section 4 Frequently asked questions Page 18
Section 5 Core Reading and the Syllabus Page 19
Section 6 Syllabus Page 22
The Actuarial Education Company © IFE: 2014 Examinations
, Page 2 CT2: Study Guide
1 The Subject CT2 course structure
There are four parts to the Subject CT2 course. The parts cover related topics and have
broadly equal lengths. The parts are broken down into chapters.
The following table shows how the parts, the chapters and the syllabus items relate to
each other. The end columns show how the chapters relate to the days of the regular
tutorials. This table should help you plan your progress across the study session.
No of Syllabus Half 2 full 3 full
Part Chapter Title
pages objectives day days days
1 The key principles of finance 27 (ii)
2 Company ownership 38 (iii)
3 Taxation 21 (iv)
1
1 4 Financial instruments 44 (iii), (iv), (v)
1
5 Use of derivatives 21 (v)
6 Issue of shares 38 (v) 1
7 Introduction to accounts 34 (ix)
8 The main accounts 42 (ix)
2 2
9 Depreciation and reserves 19 (ix)
10 Generating accounts 22 (ix)
11 Group accounts and insurance company 25 (ix)
2
accounts
3 12 Interpretation of accounts 54 (x) 3
13 Limitations of accounts 16 (x)
2
14 Financial institutions 47 (viii)
15 Weighted average cost of capital 42 (vii), (xi)
16 Capital structure and dividend policy 40 (vi)
3
4 17 Capital project appraisal (1) 39 (vii), (xi) 4
18 Capital project appraisal (2) 47 (vii), (xi)
19 Glossary 25 (i)
© IFE: 2014 Examinations The Actuarial Education Company
Combined Materials Pack
ActEd Study Materials: 2014 Examinations
Subject CT2
Contents
Study Guide for the 2014 exams
Course Notes
Question and Answer Bank
Series X Assignments*
*Note: The Series X Assignment Solutions should also be supplied
with this pack unless you chose not to receive them with your study material.
If you think that any pages are missing from this pack, please contact ActEd’s admin team
by email at .
How to use the Combined Materials Pack
Guidance on how and when to use the Combined Materials Pack is set out
in the Study Guide for the 2014 exams.
Important: Copyright Agreement
This study material is copyright and is sold for the exclusive use of the purchaser. You
may not hire out, lend, give out, sell, store or transmit electronically or photocopy any
part of it. You must take care of your material to ensure that it is not used or
copied by anybody else. By opening this pack you agree to these conditions.
The Actuarial Education Company © IFE: 2014 Examinations
, All study material produced by ActEd is copyright and is sold
for the exclusive use of the purchaser. The copyright is owned
by Institute and Faculty Education Limited, a subsidiary of
the Institute and Faculty of Actuaries.
Unless prior authority is granted by ActEd, you may not hire
out, lend, give out, sell, store or transmit electronically or
photocopy any part of the study material.
You must take care of your study material to ensure that it is
not used or copied by anybody else.
Legal action will be taken if these terms are infringed. In
addition, we may seek to take disciplinary action through the
profession or through your employer.
These conditions remain in force after you have finished using
the course.
© IFE: 2014 Examinations The Actuarial Education Company
,CT2: Study Guide Page 1
2014 Study Guide
Subject CT2
Introduction
This Study Guide contains all the information that you will need before starting to study
Subject CT2 for the 2014 exams. Please read this Study Guide carefully before
reading the Course Notes, even if you have studied for some actuarial exams before.
When studying for the UK actuarial exams, you will need a copy of the Formulae and
Tables for Examinations of the Faculty of Actuaries and the Institute of Actuaries,
2nd Edition (2002). These are often referred to as simply the yellow Tables and are
available separately from the Publications shop of the Institute and Faculty of Actuaries.
You will also need a “permitted” scientific calculator from the list published in the
Student Handbook. Please check the list carefully, since it is reviewed each year. You
will find the list of permitted calculators and a link to the Publications shop on the
profession’s website at www.actuaries.org.uk.
Contents
Section 1 The Subject CT2 course structure Page 2
Section 2 ActEd study support Page 3
Section 3 How to study to pass the exams Page 14
Section 4 Frequently asked questions Page 18
Section 5 Core Reading and the Syllabus Page 19
Section 6 Syllabus Page 22
The Actuarial Education Company © IFE: 2014 Examinations
, Page 2 CT2: Study Guide
1 The Subject CT2 course structure
There are four parts to the Subject CT2 course. The parts cover related topics and have
broadly equal lengths. The parts are broken down into chapters.
The following table shows how the parts, the chapters and the syllabus items relate to
each other. The end columns show how the chapters relate to the days of the regular
tutorials. This table should help you plan your progress across the study session.
No of Syllabus Half 2 full 3 full
Part Chapter Title
pages objectives day days days
1 The key principles of finance 27 (ii)
2 Company ownership 38 (iii)
3 Taxation 21 (iv)
1
1 4 Financial instruments 44 (iii), (iv), (v)
1
5 Use of derivatives 21 (v)
6 Issue of shares 38 (v) 1
7 Introduction to accounts 34 (ix)
8 The main accounts 42 (ix)
2 2
9 Depreciation and reserves 19 (ix)
10 Generating accounts 22 (ix)
11 Group accounts and insurance company 25 (ix)
2
accounts
3 12 Interpretation of accounts 54 (x) 3
13 Limitations of accounts 16 (x)
2
14 Financial institutions 47 (viii)
15 Weighted average cost of capital 42 (vii), (xi)
16 Capital structure and dividend policy 40 (vi)
3
4 17 Capital project appraisal (1) 39 (vii), (xi) 4
18 Capital project appraisal (2) 47 (vii), (xi)
19 Glossary 25 (i)
© IFE: 2014 Examinations The Actuarial Education Company
