Introduction

This workshop brings together important areas of financial management, planning, and international standards: Financial Analysis, Planning, and standards Setting & Controlling Budgets. It will help business professionals:

• Plan more effectively for the future

• Use the financial techniques of planning and control

• Improve performance from the use of the tools of financial analysis

• Link planning and budgeting with costing and performance measurement

• Master the skills of budgetary and cost control

Objectives

The seminar provides delegates with the knowledge required to find better answers to questions such as:

• Which specific variables, relationships, and trends are likely to be helpful in analyzing problems?

• How reliable are available financial data, and how are uncertainty and risk likely to impact on the outcomes of decisions?

• In economic and financial analysis what are the implications and relative importance of cash flow as distinct from accounting profit?

• What limitations are inherent in financial data and the key financial statements, and how will these affect the financial analysis?

• How important are qualitative judgments in the context of decision-making?

and to focus on key issues such as:

• Understand strategic planning and budgeting.

• Link finance and operations for budgeting purposes and strategy execution

• Learn how to build a comprehensive performance measurement system

• Learn costing and budgeting terminology used in business

• Understand the importance of a well-defined costing and budgeting process

• Understand cost behavior more accurately

• Be able to perform and interpret variance analysis

Target Audience

• Finance professionals involved in financial planning, budgeting, and performance analysis
• Financial analysts and business analysts seeking to strengthen analytical and decision-making skills
• Accounting professionals responsible for reporting, costing, and financial control
• Budgeting and cost control managers within organizations
• Senior and middle management involved in strategic planning and financial decision-making
• Investment and project finance professionals
• Professionals working in corporate finance, treasury, and financial management roles
• Consultants and advisors dealing with financial analysis and business valuation
• Individuals seeking to enhance their understanding of financial statements and performance measurement
• Graduates and early-career professionals aiming to build strong foundations in financial management and analysis

 Outlines

Day 1:

The Challenge of Financial Economic Decision-Making

• The practice of financial-economic analysis

• Corporate value and shareholder value

• A dynamic perspective of business Benchmarking your own strategic position/competitor analysis

• The agency problem and corporate governance

• What information and data to use?

• The nature of financial statements

• The context of financial analysis and decision-making

Day 2:

Assessment of Business Performance

• Ratio analysis and business performance

• Management’s point of view

• Owners’ point of view

• Lenders’ point of view

• Ratios as a system – pyramids of ratios

• Integration of financial performance analysis – the Dupont system

• Economic value added (EVA)

• Predicting financial distress

Day 3:

Projection of Financial Requirements

• Interrelationship of financial projections

• Operating budgets

• Standard costing and variance analysis

• Cash forecasts and cash budgets

• Sensitivity analysis

• Dynamics and growth of the business system

• Operating leverage

• Financial growth plans

• Financial modeling

Day 4:

Analysis of Investment Decisions

• Applying time-adjusted measures

• Net present value (NPV) and internal rate of return (IRR)

• Strategic perspective

• EVA and NPV

• Refinements of investment analysis

• Equivalent annual cost (EAC)

• Modified internal rate of return (MIRR)

• Sensitivity analysis, scenario analysis, simulation, and NPV break-even

• Dealing with risk and changing circumstances

Day 5:

Valuation and Business Performance

• Managing for shareholder value

• Shareholder value creation in perspective

• Evolution of value-based methodologies

• Creating value in restructuring and combinations

• Financial strategy in acquisitions

• Business valuation

• Business restructuring and reorganizations

• Management buyouts (MBOs) and management buy-ins (MBIs)

International financail standards

Today and tomorrow will comprise a detailed review of the key factors underlying the financial reports:

• IAS 1 Presentation of Financial Statements

• IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors

• IAS 10 Events after the Balance Sheet Date

• IAS 18 Revenue

• IAS 23 Borrowing Costs

• IAS 16 Property, Plant and Equipment

• IAS 17 Leases

• IAS 7 Cash Flow Statements

• IFRS 3 Business Combinations

• IAS 27 Consolidated and Separate Financial Statements

• IAS 36 Impairment of Assets

• IAS 37 Provisions, Contingent Liabilities, and Contingent Assets

• IAS 38 Intangible Assets

A brief review of the following standards

• IAS 39 Financial Instruments: Recognition and Measurement

• IFRS 7 Financial Instruments: Disclosures