Course Details
Course Outline
5 days course
Introduction to Financial Analysis, Planning and Control
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Financial Economic Decision-Making: The challenge
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Financial/economic analysis practice
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Understanding the value-creating company
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Shareholder and corporate value
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Business: A dynamic perspective
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Corporate governance and the agency problem
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Description: What information and data to use?
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Financial statements: Nature
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Financial analysis and decision-making: Context
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Business Performance: Performance
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Business performance and ratio analysis
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Understanding Management’s point of view
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Description: Owners’ point of view
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Description: Lenders’ point of view
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Pyramids of ratios: Ratio as a system
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Financial performance analysis: Integration
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Introduction to Economic value added (EVA)
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Financial distress: Prediction
Financial Requirements: Projection
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Financial projections: Inter-relationship
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The overview of Operating budgets
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Variance analysis and standard costing
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Cash budgets and cash forecasts
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Understanding Sensitivity analysis
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Growth and dynamics of the business system
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Description: Operating leverage
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Analyzing Financial growth plans
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Overview of Financial modelling
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Investment Decisions: Analysis
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Time-adjusted measures: Application
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Internal rate of return (IRR) and net present value (NPV)
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Understanding the Strategic perspective
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NPV and EVA
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Investment analysis: Refinements
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Introduction: Equivalent annual cost (EAC)
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Introduction: Modified internal rate of return (MIRR)
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Understanding Sensitivity analysis, scenario analysis, simulation and NPV break-even
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The concept of Dealing with risk and changing circumstances
Business Performance and valuation
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The concept of Managing for shareholder value
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Description: Shareholder value creation in perspective
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Value-based methodologies: Evolution
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The concept of Creating value in restructuring and combinations
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Understanding Financial strategy in acquisitions
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An overview: Business valuation
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Description: Business reorganizations and restructuring
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Overview of Management buy ins (MBIs) and Management buy outs (MBOs)
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Overview of Setting and Controlling Budgets
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Introduction to Financial and Strategic Planning
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Introduction and overview of management accounting and Financial accounting
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Association between budget setting, strategic planning and performance measurement
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Introduction to strategic and planning management
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Overview of Mission, vision and objectives
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Description of the planning process
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Overview of External environment analysis, internal resources analysis, PESTEL and SWOT
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Shareholder wealth maximization, financial strategy and value creation
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Understanding Long-term and short-term financing, financial planning and modelling
Budgeting: Cost Analysis
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Costing: Definition
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Fixed costs and variable costs: Cost behavior
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Understanding cost/volume/profit (CVP) analysis, contribution and break-even models
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Overview: Non-traceable and traceable cost allocation
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The concept of period costs and product costs
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Understanding absorption costing, marginal costing, direct costs and indirect costs
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Analysis of Product costing for budgetary control, performance measurement and budget setting
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The costing system and activity-based costing (ABC): Refinement
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Budgeting: Framework
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Budget: Definition
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Distinct Types of budgets and Budgeting framework
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Understanding the budget process
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Forecasting sales, costs and sales pricing: Qualitative and Quantitative techniques
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Labour costs and depreciation: Budgeting
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Description: The departmental budget
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Master budget and the cash forecast/budget: Preparation
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Budgeting: The human side and the behavioral aspects
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Understanding Capital Budgeting, Activity based budgeting (ABB), Variance analysis and Budgetary control
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Budget controlling process in your organization
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Introduction to Activity-based budgeting (ABB)
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Capital projects budgeting
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Understanding Discounted cash flow (DCF) investment appraisal methods of internal rate of return and net present value (NPV)
Overview of the profitability index (PI) and capital rationing
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Responsibility accounting and budgetary control systems
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Budgeting and budgetary control: The standard costing
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The concept of flexed budgets, fixed budgets, variance analysis and the reasons for variances
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Broadening Performance Measurement Systems: Beyond budgeting
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Integrating continuous improvement into the budget process
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Budgeting: Advantages and disadvantages
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Ways to improve the budget process in your organisation
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Understanding the conflict between the costing system and performance improvement
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Description: Performance improvement and lean thinking
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Beyond the budget: What’s next?
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Associating strategy with performance measurement and budgeting: The balance scorecard
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Adapting and developing the balanced scorecard
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Summary
