Introduction
Business professionals and managers in any organization rely upon financial information to enable them to effectively undertake their roles. Financial information can provide a clear picture of events that have occurred, and a sound basis for forecasting future events. It can also show whether activities are cost-effective, whether targets have been met, and can be used to measure comparative performance and profitability.
It is vitally important that managers are able to understand, interpret, and utilize financial information and reports, and can acquire the knowledge and skills to apply financial techniques to financial data, to inform logical and worthwhile decision-making.
Course Objectives:
After completing this course, you will be able to:
- Explain the importance of finance and the interpretation of financial information
- Apply the concepts of accounting and finance to analyze financials
- Learn about key accounting and finance terms
- Examine financial statements by using key ratios
- Explain the importance of the budgeting process
- Learn about key components needed to improve profitability
- Finance Practices
- Finance Standards
- Interpretation of Financial Data
- Using Financial Analysis Tools
Target Audience:
Any manager seeking an understanding of finance and how to enable an organization to realize its objectives. In particular:
- Project managers
- IT and service support managers
- Sales executives/consultants and new graduates
Course Outlines:
Day (1)
Business Organizations, Sources of Finance, the Finance Function
- The development of business organizations
- The role of Finance and the Finance Function
- Sources and types of finance for business organizations
Teamwork exercise: preparing a business plan to present to potential investors
- The structure of the financial accounting system
- The Income Statement and Statement of Financial Position
Teamwork exercise: Financial accounting and reporting case study
Day (2)
The Annual Financial Report
- The purpose and format of the Annual Financial Report (AFR), prepared according to IFRS.
- The financial and non-financial elements of the AFR
Teamwork exercise: Assessing the effectiveness of the AFR as a means of communicating with our key stakeholders
- The difference between cash flow and profit
Teamwork exercise: Preparing and presenting a Cash Flow Statement
- How to analyze and interpret the AFR
Teamwork exercise and presentation: Assessing a company’s performance and position by analyzing their AFR
Day (3)
Management Accounting
- Understanding the difference between management accounting and financial accounting
- Calculating the cost of our products and the problem of overheads (indirect costs)
- Overhead apportionment – absorption costing versus Activity Based Costing
Teamwork exercise: Preparing cost estimates for a contract bid
- Cost-Volume-Profit and break-even analysis
- Budgeting – objectives, and process
Teamwork exercise: preparing next year’s budgets for a manufacturing business
- Analyzing the differences between budget and actual, using Variance Analysis
Day (4)
Investment Appraisal
- The time value of money – future values and present values, perpetuities and growth
Group discussion: Identifying new investment opportunities for your business:
Teamwork exercise: Basic appraisal methods – Accounting Rate of Return and Payback
- The cost of capital - Equity and Debt
Teamwork exercise: Calculating the Weighted Average Cost of Capital (WACC)
Teamwork exercise: Advanced appraisal methods – Net Present Value (NPV) and Internal Rate of Return (IRR):
- Dealing with capital rationing using the Profitability Index method
- Dealing with forecasting uncertainty using Sensitivity Analysis
Teamwork exercise: Comprehensive investment appraisal mini-case
Day (5)
Treasury and Risk Management
Group discussion: The role of Treasury
- Managing interest rate risk using options and swaps
Teamwork exercise: Devising an effective interest rate swap
- Foreign currency risk
- Managing foreign currency risk using natural techniques
- Managing foreign currency risk using transactional techniques
Teamwork exercise: Hedging the risks of a foreign currency transaction
About Amsterdam
Amsterdam, capital of the Netherlands, is a popular destination amongst travelers from all around the world. Once just a little fishing village, Amsterdam is now a major international city after having become an important port during the 1600s. Throughout its history, the city has had many famous residents, including artists, philosophers and other historical figures. There is much to discover along Amsterdam's quaint streets and picturesque canals. So much so that a flight to Amsterdam comes with a guarantee of cultural and historical attractions that will provide memories to last a lifetime. Amsterdam is a hotbed of culture for travelers of all ages and tastes.
Things to do and places to visit in Amsterdam
From the moment passengers step off their flight to Amsterdam, they will find it a friendly city with a lively atmosphere. Its flat geography means that it is perfect for exploring by bicycle. If you're feeling less active, it the city is also well-served by public transport. The so-called Venice of the North has something for every visitor. Culture vultures have museums, galleries and theaters to see, Families can visit the zoo or the Science Center NEMO.
When visiting Amsterdam, be sure to:
- See the picture-perfect and colorful houses of the Grachtengordel district.
- See the iconic works of one of Holland's most famous artists at the Van Gogh Museum.
- Visit the house where Anne Frank and her family hid from the Nazis.
- Browse through the extensive collection of fantastic art in the Rijksmusem.
- Wander through the blaze of colors that is the Singel Flower Market.
- See the city at a leisurely pace on a canal cruise.
- Marvel at one of the city's many historic churches.
- Learn about life aboard a ship at the National Maritime Museum.
- Discover the Begijnhof's well-preserved medieval architecture.
- See animals of all kinds, as well as the butterfly pavilion and aquarium, at the Artis Zoo.