Advanced Financial Analysis, Evaluation and Budgeting

Advanced Financial Analysis, Evaluation and Budgeting

 

Date & Location: (11-15/Feb) Kuala Lumpur – ( 29 April-3 May) Istanbul -( 16-20/Sept) Cairo

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Course Overview

Introduction:

This course provides:

  • Think and manage strategically and plan more effectively for the future
  • Identify the role of financial management in strategic decision-making
  • Use the financial techniques of planning and control
  • Improve performance from the use of the tools of financial analysis

Program Objectives:

  • How are business strategies developed?
  • How does financial management support strategic development?
  • What is the exact nature and scope of the business problems to be analysed?
  • Which specific variables, relationships, and trends are likely to be helpful in analysing problems?
  • Are there possible ways to obtain a quick ‘ballpark’ estimates of likely outcomes of decisions?

 

Who Should Attend?

This seminar is designed for business professionals that need or wish to understand the financial aspects of the strategic decision-making process. It is crucial for every role and at every management level in the organisation, including for example:

  • Sales and Marketing
  • Engineering
  • Project Management
  • Purchasing
  • Logistics
  • Human Resources, and is a ‘must’ for:
    • Interns, financial analysts, financial controllers, accountants, treasurers, corporate planning and business development professionals, and others active in the planning process
    • Middle and junior management as a useful element in their career advancement

All participants will be able to offer their input, based on their individual experiences, and will find the seminar a useful forum for upgrading and enhancing their understanding of best corporate financial practices in the areas covered.

 

Program Outline:

DAY 1

Linking Strategic Management and Decision-making with Financial Planning and Budgeting

  • Strategy and strategic management
  • Vision, mission, and objectives
  • Key features of strategic decision-making
  • Rolling out and implementing strategies
  • Value creation and maximisation of shareholder wealth
  • Corporate objectives, accountability, and corporate governance
  • Management accounting and the links between strategic planning and budgeting

DAY 2

The Financial Statements and Their Links with Planning and Financial Decisions

  • The three key financial statements
  • Balance sheet
  • Income statement
  • Statement of cash flows
  • Sources of internal and external funding
  • Cost of equity, cost of debt, and the weighted average cost of capital (WACC)
  • Capital structure models to minimise WACC
  • Preparing a long-term financial plan to determine funding requirements

DAY 3

Costing Systems, Budgets and Measurement Systems that Support Financial Decision-making

  • Costs and activities
  • Cost behaviour
  • Fixed costs and variable costs
  • Cost/volume/profit (CVP) relationships, contribution and break-even analysis
  • Direct and indirect costs
  • Activity-based costing (ABC)
  • Refining the costing system for improved decision-making

DAY 4

Capital Investment Decisions

  • Future values, present values and discounted cash flow (DCF)
  • Capital budgeting principles
  • Evaluating capital investment projects using accounting rate of return (ARR) and payback
  • DCF evaluation methods of net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), equivalent annual cost (EAC)
  • Deciding on which investment appraisal methods to use
  • Capital budgeting, capital rationing and the profitability index (PI)
  • Further factors to consider in investment appraisal

DAY 5

Linking Performance Measures to Strategic Decisions and Financial Risk Management

  • Linking strategic objectives to key performance indicators (KPIs) in a balanced scorecard
  • Obstacles to achieving strategic objectives created by the accounting and costing system
  • Uncertainty and risk analysis
  • Types of business risk and financial risk
  • Risk management principles
  • Development of risk management tools to mitigate and minimise risk
  • Insurance and hedging
  • Interest rate risk and foreign currency exchange rate risk