Course Details
Course Outline
5 days course
An introduction to Accounting
- What is accounting?
- What forms can accounting take
- Definition and importance of profit
- Decision scenarios explored
- Funding business operations
- Who is interested in profit?
- Cash vs. Accrual accounting
- Cash flow forecasting and improvement
- The significance of accounting data
- The job of the Finance Function
- The accounting equation and financial related accounting systems.
- Reporting facts and applying judgment.
- Preparing the Income Statement and Balance Sheet.
- Accounting standards and bookkeeping benchmarks.
Financial Statements, Accounting Policies, and Reporting Standards
Income Statement – Basic Components
- Revenues & the questions
- Direct/variable/product costs
- Indirect/fixed/period costs
- Mixed costs
- Non-cash deductions: the what, the why & the how
- Depreciation: various methods explored
- Amortization: impairment test
- Depletion: when & how
- The difference between profit and cash
- A closer look at costs and expenses
- Profit calculations
- Summarizing profit statements and extracting the key figures
Balance Sheet:
- Assets – current & long term
- Liabilities – current & long term
- Equity – components
- Capital employed - options
- Managing the working capital cycle
Cash Flow Statement:
- Operating sources/uses
- Investing sources/uses
- Financing sources/uses
Making and Communicating Decisions Using Budgets
- The master budget
- The budgeting as a planning tool, a control mechanism, a communications device & value creation
- Budgeting Sales to “drive” the correct budget
- Operating budget components
- Financial budget
- Pro Forma Financial Statements
- Cash Budgets
- Capital budget
- Interrelationship of Financial Projections
- Dynamics and Growth of the Business System – a model review
- Flexible vs. traditional budgets – the pros & cons
- Variance analysis as a tool for improvement & communications
- Price and volume effects within variance analysis: state of the art
Financial VS Management Accounting: Differences and Similarities
- Objectives of Managerial Accounting
- Managerial Versus Financial Accounting:
- Role of the Managerial Accountant
- Financial accounting: what we show to the public
- Objectives of financial accounting
- Role of financial accountant
- Cost terminology: variable, fixed, controllable, non-controllable, incremental, sunk, opportunity, and relevant
- Cost behaviors in Cost-Volume-Profit scenarios: contribution margin and fixed costs
- Breakeven and targeted net income scenarios
- Cost/Benefit analysis
Ultimatum Goal of Planning – Valuation, Business Performance & Decision Making
- Definitions of Value
- Responsibility centers: cost, profit, and investment
- Measuring responsibility center performance
- Segment reporting internally and externally
- Business Valuation from multiple perspectives
- Managing for Shareholder Value
- Shareholder Value Creation in Perspective
- Evolution of Value-Based Methodologies in planning and budgeting
- Creating Value in Restructuring and Combinations beyond planning and reporting- the case for real change!
