Financial Management for Non-Financial

Financial Management for Non-Financial

 

Date & Location: (15-28/Jan) Kuala Lumpur – ( 7-20/May) Istanbul – ( 16-29/July) Amman – ( 12-25/Nov) Amsterdam

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Course Overview

Introduction:

This course provides:

  • The strategic and operational role of the Finance Function
  • The principles of accounting and financial reporting
  • How to understand and analyse financial reports
  • How management accounting helps to maintain control and improve efficiency
  • How we can ensure that investment returns meet the stockholders expectations

 

Program Objectives:

  • Explain the nature and role of financial statements and their interpretation
  • Use the language of accounting and finance to communicate effectively with financial professionals
  • Review the financial performance and financial position of an organisation using the appropriate financial ratio and break-even analysis techniques
  • Use budgetary control to compare actual against planned performance and to identify corrective actions
  • Evaluate investment projects using DCF and other appraisal methods

 

Who Should Attend?

  • Sales and marketing executives
  • Supply-stream professionals
  • Project professionals
  • Internal auditors
  • Any non-financial professionals who are required to read, interpret, and contribute to business financial reports
  • Senior professionals of manufacturing, marketing, engineering
  • Human resources professionals
  • Legal professionals
  • Executive professionals who are involved with development of long-term customers, suppliers, outsourcing partners, and other global strategic alliances
  • Consultants who work with professionals and executives, to support improvements to operational and financial processes

 

Program Outline:

DAY 1

The Business Environment and the Role of Accounting    

  • The business environment
  • The uses and purpose of accounting
  • Users of accounting and financial information
  • Accounting terminology
  • The dual entry accounting system
  • The Income Statement – financial performance
  • The Balance Sheet – financial position
  • Cash flow versus profit
  • The Cash Flow Statement – where the cash comes from and where it goes to?
  • The links between the Cash Flow Statement, Income Statement and Balance Sheet

DAY 2

The Financial Statements and Financial Analysis

  • Accounting conventions and accounting standards (IFRS)
  • The key elements of published Annual Financial Reports (AFR)
  • Techniques for interpreting the Financial Statements – Common-Size analysis and Ratio Analysis
  • Financial statements analysis – Case Study
  • Cash flow ratios – a different perspective
  • Predicting business failure with ratios and other key indicators
  • Publicly available sources of corporate financial information

DAY 3

Budgeting and Break-even Analysis

  • Management Accounting – the Internal Perspective
  • The importance of cost analysis – materials, labour and overheads
  • Understanding overheads, and how they should be treated in internal analysis and decision-making
  • Cost/volume/profit (CVP) analysis and the break-even point
  • Using CVP analysis to make profitable decisions
  • The purpose and importance of budgeting
  • Preparing and implementing your budget
  • Different budgeting models – are they relevant for your business?
  • Is budgeting an effective management technique?
    • Issues of risk, uncertainty, motivation and asymmetric behaviour

DAY 4

Budgetary Control and Capital Investment Appraisal

  • Budgetary control with monthly management reports
  • Standard costing and variance analysis
  • Case study on calculating and interpreting variances
  • Internal growth strategies – types of capital investment
  • Basic appraisal techniques as a filtering process – ARR and Payback
  • Why you should consider the time value of money
  • Discounted cash flow appraisal techniques – NPV and IRR
  • Practical issues to consider in NPV appraisal – inflation, capital rationing, risk and uncertainty
  • Investment Appraisal exercises using spreadsheets

DAY 5

Financing the Business and Re-organisation Strategies

  • Financing the business – why and when
  • Financing principles, short-term versus long-term, debt versus equity
  • Sources and types of finance
  • Determining the cost of long term finance – the cost of capital models:
    • Cost of Equity (Ke) – Dividend Valuation Model
    • Cost of Equity (Ke) – Capital Asset Pricing Model
    • Cost of Debt (Kd)
    • Weighted Average Cost of Capital (WACC)
  • Review of external growth strategies:
    • Mergers, acquisitions and joint ventures
  • Review of restructuring strategies: Demergers, spin-offs, unbundling, MBO, MBI, BIMBO