In the Global competitive world of the 21st century business decision-makers face unprecedented levels of risk and uncertainty - to survive and flourish in this challenging environment organizations need the right tools with which to analyses problems and anticipate and manage the many opportunities and threats that may emerge traditional forms of financial analysis and forecasting no longer meet these needs and the most progressive firms are using the power of financial models to help them analyses the challenge and take a more powerful approach to manage risk in their planning and forecasting Financial management is the planning, organizing, directing and controlling an organization’s financial activities such as procurement and the utilization of funds. The purpose of this course is to provide participants with the fundamental financial knowledge and skills to enable them to participate in business activities such as financial planning, financial control and to make savvy financial and investment decisions.
Identifying the relationship between cash flow and profit
Development of an integrated cash flow model
Recognizing it’s all about cash
Understanding the relationships between the three main accounting statements
Accounting terminology
How the P&L has changed over the last 25 years
Detailed review of the Profit and Loss account including explanation of all significant accounting terminology
Profit types - trading, asset and business
Inventory, depreciation, capitalized interest
Minority interests and consolidation
Exceptional and material items
Detailed review of the balance sheet including explanation of all significant accounting terminology
Understanding the fixed assets note
Accounting goodwill – what is it?
Liabilities, pension fund accounting
Debt and other liabilities like debt
Deferred tax, contingent liabilities
Objectives of ratio analysis
Developing ratio analysis skills
Different types of ratios
How much information is there in ratios?
Ratio rules – avoiding errors of principle
Detailed review of the cash flow statement
Analyzing and interpreting cash flows
Summarizing cash flows for analysis
The four phases in the life of a business
Dealing with the consequences of growth and no-growth
Abuses of Fair Accounting
Basic abuses relevant to all businesses
More complex abuses relevant to larger groups
Overview of the International Accounting Standards Board
The implications of the IAS Initiative
Review of new standards produced in the last five years
Present and future values
Defining the discount factor
Exercises: Discounting calculations
NPV’s and varying future cash flows
Perpetuities and annuities
Exercises: Annuities and perpetuities
Introduction to project analysis
Developing a forecast of the project cash flows
Identifying the key risk areas
Discounted cash flow techniques
Calculating the internal rate of return
The essential aspects of the management task
Fixed and variable costs
Marginal, absorption and standard costing
Using spreadsheet programs for business analysis and forecasting
The issue of spreadsheet risk
Financial Accounting
Analysis of Financial Statements
Short-term Financial Management Decisions
Long-term Financial and Investment Decisions
Appreciate the importance of the accounting and finance function
Understand accounting for routine business transactions
Be able to prepare simple financial statements
Be able to analyses company performance using basic ratios
Be aware of costing and budgeting techniques to maintain efficiency and profitability
Distinguish between financial accounting and financial management;
Detail the definitions and terminology used in financial management;
Underline the various accounting principles and definitions in order to build a foundation in accounting terminology on which to better understand financial management;
Prepare a set of financial statements;
Perform financial analysis of a set of financial statements;
Establish the purpose of working capital management;
Discover the role of budgeting in short-term financial planning;
Explain the meaning of time value of money and calculate its impact on investment decisions;
Explain the relationship between risk and return on an investment.
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