CB1 Actuarial Business Finance (CT2) Syllabus & Exam Strategy

Clearing CB1 (formerly CT2) is not as hard as it looks. Business Finance provides the theory and application of corporate finance as well as the main elements of companies’ financial statements. We are providing a few CB1 tips and tricks which can help you pass the exam from IAI or IFoA.

Throughout the course, candidates will gain knowledge of corporate governance, different types of company structure, management goals and maximizing shareholder wealth, traditional and new methods of raising short and long-term finance, use of leverage, growth, and profitability, and mergers and acquisitions.

In financial statement analysis, regulation and regulatory bodies for financial reporting, the company’s balance sheet, income and cash flow statements, and elements of management accounting are considered.

CB1 Business Finance (CT2) Syllabus (2025 & 2026 Onwards)

The updated CB1 syllabus focuses on equipping candidates with a comprehensive understanding of business finance, corporate governance, and financial statement analysis. The syllabus is structured into four main sections with the following weightings:

Section	Weighting
Corporate governance and organisation	18%
How corporates are financed	35%
Evaluating projects	15%
Constructing and interpreting company accounts	32%

Key Syllabus Highlights:

• Corporate Governance and Organisation: Covers principles of corporate governance, regulation of financial reporting, the role of capital markets, stakeholder relationships, agency issues, and ethical responsibilities.
• How Corporates are Financed: Explores different business structures (sole traders, partnerships, companies, social enterprises), sources of finance (loan capital, share capital, short- and medium-term finance), and the practicalities of corporate financing.
• Evaluating Projects: Focuses on project appraisal techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and scenario-based financial decision-making.
• Constructing and Interpreting Company Accounts: Involves preparation and analysis of balance sheets, income statements, cash flow statements, and financial ratios to assess company performance and financial health.

For full details, always refer to the official CB1 IFoA syllabus documents.

CB1 Tips & Tricks – Exam Strategy

• An extended course of 18 chapters compared to other CT Exams.
• Consists of multiple-choice questions of 20 marks and 80 marks subjective questions.
• Multiple choice questions are tricky so one should practice a lot from past papers and have a good understanding of the concepts in core reading and do read comments in the solution section.
• The first 6 chapters are easy but understanding the text is a must.
• The last 3 chapters are very important and are usually asked in exams.
• Questions on balance sheet preparation, ratio calculation, NPV calculation along application-based questions are important and usually carry high marks in exams.
• Clearing CB1 (CT2) becomes a daunting task, mind it, it is not as easy as some people think especially after the revised pattern.
• Make sure that you are well versed with the entire conceptual part of the core reading material rather than just mugging it up as questions are going to be application-based and situation-oriented rather than bookwork.
• 3 hours are enough for CB1 (CT2) provided that you manage your time well, there are 10 MCQ questions of 2 marks each and 10 subjective questions so first attempt MCQs then long questions, and lastly short questions of 5 marks as they are tricky.
• Some questions are weird and it might be difficult to understand what the examiner is asking and what level of solution is expected.
• Don’t try to mug up exact book language if you are not able to learn. You can produce in your own language and will get marks.
• Write as much as required and related to the question asked. Just for the sake of completing a question don’t write what is not required else you will not be able to complete the paper.
• And don’t forget to practice Question bank and X assignments as they form a base of your preparation.

Source: AcTed