Advanced Financial Analysis, Evaluation & Budgeting

Course Code: FA01

►Course Objective

 

  • 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?

 

►Target Audience

 

  • This Course 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
  • 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.

 

►Course 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 requirement

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


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Date & Location

Date : 29 April 2018

Duration : 5 days

Place : Istanbul

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Date : 11 February 2018

Duration : 5 days

Place : Kuala Lumpur

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Date : 16 September 2018

Duration : 5 days

Place : Cario

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