INTRODUCTION
In the globally competitive world of 21st-century business, decision-makers face unprecedented levels of risk and uncertainty - to survive and flourish in this challenging environment organizations need the right tools with which to analyze problems and anticipate and manage the many opportunities and threats that may emerge.
Traditional forms of financial analysis and forecasting no longer meet these needs and the most progressive firms are using the power of financial models to help them analyze challenges and take a more powerful approach to manage risk in their planning and forecasting.
Financial management is the planning, organizing, directing, and controlling of an organization’s financial activities such as procurement and the utilization of funds. The purpose of this course is to provide participants with the fundamental financial knowledge and skills to enable them to participate in business activities such as financial planning, and financial control and to make savvy financial and investment decisions.
Target Audience
- Finance Professionals
- Budgeting and Planning Managers
- Commercial Managers
- Divisional Managers
- Purchasing and Supply Chain Managers
- Project Managers
- Chief Financial Officers and Financial Controllers
- Treasury Team Members
- Capital Investment and Project Staff
- Managers involved in Financial Decision-Making
LEARNING OBJECTIVES
At the end of the course participants will be able to:
- Appreciate the importance of the accounting and finance function
- Understand accounting for routine business transactions
- Be able to prepare simple financial statements
- Be able to analyze company performance using basic ratios
- Be aware of costing and budgeting techniques to maintain efficiency and profitability
- Distinguish between financial accounting and financial management;
- Detail the definitions and terminology used in financial management;
- Underline the various accounting principles and definitions in order to build a foundation in accounting terminology on which to better understand financial management;
- Prepare a set of financial statements;
- Perform financial analysis of a set of financial statements;
- Establish the purpose of working capital management;
- Discover the role of budgeting in short-term financial planning;
- Explain the meaning of the time value of money and calculate its impact on investment decisions;
- Explain the relationship between risk and return on investment.
TOPICS TO BE COVERED
Day 1
Introduction to financial analysis
- Identifying the relationship between cash flow and profit
- Development of an integrated cash flow model
- Recognizing it’s all about cash
- Understanding the relationships between the three main accounting statements
- Exercise 1 - Accounting terminology
Fundamentals of accounting statements-the profit and loss account
How the P&L has changed over the last 25 years
- Detailed review of the Profit and Loss account including an explanation of all significant accounting terminology
- Profit types - trading, asset, and business
- Inventory, depreciation, capitalized interest
- Minority interests and consolidation
- Exceptional and material items
Fundamentals of accounting statements-the balance sheet
Detailed review of the balance sheet including an explanation of all significant accounting terminology
- Understanding the fixed assets note
- Accounting goodwill – what is it?
- Liabilities, pension fund accounting
- Debt and other liabilities like debt
- Deferred tax, contingent liabilities
Financial analysis techniques-ratio analysis
Objectives of ratio analysis
- Developing ratio analysis skills
- Different types of ratios
- How much information is there in ratios?
- Ratio rules – avoiding errors of principle
Day 2
Cash flow analysis and accounting issues
Understanding cash flows
- Detailed review of the cash flow statement
- Analyzing and interpreting cash flows
- Summarizing cash flows for analysis
Cash flow analysis
- The four phases in the life of a business Cash flow analysis-taking it further
- Dealing with the consequences of growth and no-growth
Accounting abuses and update
- Abuses of Fair Accounting
- Basic abuses relevant to all businesses
- More complex abuses relevant to larger groups
Global accounting in the new century
- Overview of the International Accounting Standards Board
- The implications of the IAS Initiative
- Review of new standards produced in the last five years
Day 3
Financial mathematics and project analysis
The time value of money
- Present and future values
- Defining the discount factor
- Exercises: Discounting calculations
Net present value -developing the concept
- NPVs and varying future cash flows
- Perpetuities and annuities
- Exercises: Annuities and perpetuities
Project analysis
- Introduction to project analysis
- Developing a forecast of the project cash flows
- Identifying the key risk areas
Evaluating capital investment projects
- Discounted cash flow techniques
- Calculating the internal rate of return
The responsibilities of management
- The essential aspects of the management task
Costing and break-even analysis
- Fixed and variable costs
- Marginal, absorption, and standard costing
Day 4
Spreadsheet analysis skills
Introduction to spreadsheets
- Using spreadsheet programs for business analysis and forecasting
- The issue of spreadsheet risk
Day 5
- Financial Accounting
- Analysis of Financial Statements
- Short-term Financial Management Decisions
- Long-term Financial and Investment Decisions
About Dubai
Dubai, located on the Persian Gulf, is one of the seven United Arab Emirates and one of the most popular tourist destinations in the world. The discovery of oil in the region has made Dubai extremely wealthy, allowing it to build the glittering skyscrapers that it is now famous for. That wealth is strongly in evidence in Dubai and visitors will see luxurious buildings and supercars aplenty. Perfect beaches and endless shopping opportunities are to key to Dubai's attractions. Flights to Dubai open up the city's cultural attractions to tourists, with beautiful mosques, museums and art galleries scattered throughout this ultra-modern metropolis.
Things to do and places to visit in Dubai
Dubai's wealth has made it famous for building ever taller buildings and creating artificial islands off its shores. The city's hotels are luxurious and shoppers will love its extensive shopping malls which showcase all the world's top brands. Dubai's attractions don't end there. Dubai also caters to adventure lovers, who can jump in a 4x4 or on a board to speed over dunes outside the city. Local culture mustn't be forgotten either, and visitors have wonderful mosques to visit and old districts to explore. All that combined means that a flight to Dubai is sure to lead to an unforgettable holiday.
When visiting Dubai, be sure to:
- Go to the observation deck of the Burj Khalifa, the tallest building in the world.
- Admire the intricately beautiful Grand Mosque, which has the tallest minaret in the city.
- Understand the local history and culture with a visit to the Dubai Museum.
- Discover objects from the 6th century at Jumeirah Archaeological Site.
- Go skiing – That's not a joke, the Mall of the Emirates houses a snowdome.
- Go shopping at the Mall of the Emirates or the Dubai Mall.
- Explore the desert surrounding the city – either by 4x4 or atop a camel.
- Eat fantastic seafood at Dubai Marina.
- Cool off at the Wild Wadi Waterpark.
- Marvel at gorgeous Arabic calligraphy at Jumeirah Mosque, the biggest in the city.
- Take a yacht tour around the artificial islands of Palm Jumeirah.
- Haggle for souvenirs in one of the city's souks.
- Wander around the traditional building in Bastakiya District.