Introduction

This course offers an in-depth overview of the accounting and finance world. Part 1 emphasized the internal workings of the finance/control function as it communicates with external and internal constituencies to provide information for decision making under uncertainty. Part 2 emphasizes the capital markets impact on corporate finance, risk, and governance.

No preparation is necessary except to bring an open mind and a budget document or other financial documents of interest.

By combining techniques with analysis, problems, and examples with real case studies, and supporting theories the course provides delegates with key finance terminology and practice. This course not only presents the key financial tools generally used but also explains the broader context of how and where they are applied to obtain meaningful answers. It provides a conceptual backdrop both for the financial/economic dimensions of strategic business management and for understanding the nature of financial statements, analyzing data, planning and controlling.

The course is targeted at providing a university-quality ‘MBA’ overview of finance/accounting, planning/control, risk management, and corporate governance. Participants are expected to be high-potential learners seeking the next level of learning. Additional bibliographies, readings, and spreadsheets will be provided as takeaways.

Objectives

This course will help you learn how to:

• Specify the exact nature and scope of corporate financial reporting

• Identify and criticize specific concepts, rules, and procedures are in place for corporate financial reporting

• Understand multiple interpretations of financial statements via IFRS, FAS, SEC, etc

• Integrate risk management and corporate governance

• Understand the content of and relationships between financial statements (income statement, balance sheet, and statement of cash flows)

• Understand how to use financial statements to evaluate the financial performance of an organization

• Understand discounted cash flow (DCF) techniques and their application to financial decision making

• Understand the budgeting process, including performance evaluation

• Understand cost behavior and its impact on management decisions

• Learn how to communicate and to question financial information effectively

Target Audience

• Finance Managers and Financial Controllers
• Financial and Management Accountants
• Financial Analysts and Budgeting Professionals
• Internal Auditors and Risk Management Professionals
• Corporate Planning and Strategy Professionals
• Business Managers and Department Heads
• Treasury and Investment Professionals
• Corporate Governance and Compliance Professionals
• Executives and Decision-Makers involved in financial planning and control
• Professionals seeking MBA-level knowledge in accounting, finance, risk management, and corporate governance
• High-potential professionals preparing for leadership and senior financial management roles

Outlines

DAY 1 – Introduction to Accounting and Financial Decision-Making

• Introduction to accounting and finance
• Forms and importance of accounting
• Profit concepts and decision-making scenarios
• Cash vs. accrual accounting
• Funding business operations
• Accounting standards and reporting frameworks
• Financial communication and reporting principles

DAY 2 – Financial Statements and Profit Analysis

• Income statement components
• Revenue recognition and cost classifications
• Direct, indirect, fixed, and variable costs
• Depreciation, amortization, and depletion
• Profit calculations and financial interpretation
• Difference between profit and cash flow
• Extracting and analyzing key financial figures

DAY 3 – Balance Sheet, Cash Flow, and Working Capital

• Balance sheet structure and components
• Assets, liabilities, and equity
• Capital employed concepts
• Cash flow statement analysis
• Operating, investing, and financing cash flows
• Working capital management
• Improving cash flow forecasting and liquidity

DAY 4 – Budgeting and Financial Planning

• The master budget and budgeting process
• Sales, operating, and financial budgets
• Capital budgeting and cash budgets
• Pro forma financial statements
• Flexible vs. traditional budgets
• Variance analysis and performance improvement
• Budgeting as a planning and control tool

DAY 5 – Management Accounting and Business Performance

• Financial vs. management accounting
• Objectives of managerial accounting
• Cost terminology and cost behavior
• Cost-volume-profit (CVP) analysis
• Contribution margin and break-even analysis
• Cost-benefit analysis
• Responsibility centers and segment reporting
• Measuring business performance and value creation

DAY 6 – Fundamentals of Corporate Finance

• Introduction to finance and working capital
• Components of working capital
• Current ratio and liquidity analysis
• Inventory, receivables, and payables management
• Key financial ratios and performance indicators
• Capital structure fundamentals
• Equity and debt financing concepts

DAY 7 – Cost of Capital and Financial Leverage

• Cost of equity and cost of debt
• Weighted Average Cost of Capital (WACC)
• Application of WACC in decision-making
• Operating leverage and financial leverage
• Combined leverage and risk impact
• Financing strategies and capital structure decisions

DAY 8 – Capital Investment Appraisal and Risk Analysis

• Time value of money concepts
• Capital investment evaluation process
• Cash flow estimation techniques
• Net Present Value (NPV) and Internal Rate of Return (IRR)
• Profitability Index (PI) and MIRR
• Investment approval criteria and post-audits
• Risk analysis in investment decisions

DAY 9 – Enterprise Risk Management and Governance

• Understanding financial and operational risks
• Strategic and functional risk identification
• Quantitative and qualitative risk assessment
• Enterprise Risk Management (ERM) strategies
• Risk appetite and performance measures
• Corporate governance principles
• Governance structures and board models

DAY 10 – Corporate Governance and Strategic Value Creation

• Shareholders vs. stakeholders perspectives
• Independent directors and governance practices
• Principal-Agent theory applications
• Governance trends and regulatory expectations
• Business valuation concepts
• Shareholder value creation strategies
• Restructuring, mergers, and strategic combinations
• Final case studies and integrated financial analysis