Accounting, Financial Communication and Decision Making

Accounting

Course Info

Duration: 1 Week

Available Dates

Venue

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!

Course Video