Accounting and Finance for Non-Financial Managers

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Kuala Lumpur, Malaysia  (4-5 Nov)

Workshop Overview

In today’s global and competitive world, business owners and managers at all levels need to develop sound appreciation of financial reports, as well as the creation of shareholder value and fundamentals of business valuation.

The 2-day workshop will provide the attendees with competent grasp of the financials and help them think of their business decisions they make in a financial manner. Attendees will understand the components of the Financial Statements and the links between the line items. Participants will learn to evaluate the financial statements using ratio analysis.

Participants will also learn investment decision analysis using Net Present Value (NPR) as well as Internal Rate of Return (IRR) and understand the cost and sources of capital. Fundamental cost and management accounting is illustrated through identification of cost drivers and proper cost allocations. Participants will learn the difference between cash and profit as well as simple forecasting techniques. The workshop covers the approaches of budgeting and budgetary control to keep budget on target and concludes with ways on how to “cook the books”.

 

Key Takeaways

By the end of the course, participants will:

  • Understand the principles of accounting and finance
  • Gain knowledge of core finance, accounting and cost concepts
  • Understand the structure of financial statements and the inter-relationship of the items
  • Interpret and analyze financial statements with key financial ratios
  • Gain insight on working capital management
  • Financially appraise a project and identify sources of capital
  • Draft accurate budgets and budgetary controls
WHY YOU SHOULD ATTEND
  • Understand the business dynamics of dollars and cents
  • Improve financial acumen to achieve strategic growth
  • Make informed and sound financial decision to meet both short and long-term goals
  • Understand the financial impacts and deliver better bottom lines
  • Enhance shareholder value
Methodologies

Clear explanation of theories coupled with hands-on exercises for a firm grasp of the financials through:

  • Practical Examples
  • Case Studies
  • Short Exercises
  • Group Discussions
  • InvestmentAnalysis

Participant may bring division or company financial statements for discussion and analysis

    Who Should Attend

    Business owners, directors, managers or anyone who::

    •  make or contribute to decisions with significant financial implications
    • have profit and loss responsibility
    • require the understanding of financial information in their line of work
    Program Agenda

    Session 1: INTRODUCTION

    • Overview of training aim, objectives and agenda

    Session 2: FINANCIAL STATEMENTS AND ITS COMPONENTS

    • Balance Sheet, also known as Statement of Financial Position
    • Profit and Loss, also known as Income Statement
    • Cash Flow Statement
    • Statement of Changes in Equity
    • Components of Financial Statements: Assets, Liabilities, Equity, Revenue, Expense
    • Accounting Concepts: Going Concern, Accruals, Consistency, Prudence
    • Objectives and users of financial reporting, and their areas of interest
    • Accounting Standards: IFRS, US GAAP

    Session 3: BALANCE SHEET

    • A snapshot of the financial status at a specified point in time
    • What a balance sheet can – and can’t – tell you
    • Current Assets: Cash, Accounts Receivable, Inventory, Prepaid Expenses
    • Non-Current Assets: Investments, Property, Plant & Equipment, Intangible Assets, Other Assets
    • Current Liabilities: Accounts Payable, Accruals, Unearned Revenue
    • Current and Non-Current Classification of Debt
    • Long-Term Liabilities, Equity

    Session 4: PROFIT AND LOSS (INCOME STATEMENT)

    • Financial performance of a business over a specified time period
    • Accrual basis vs Cash basis
    • Components of Profit & Loss: Net Sales (Revenue), Cost of Sales, Depreciation
    • How Cost of Sales is calculated
    • Profit margins: Gross Profit, Operating Profit, Pre-Tax Profit, Profiafter tax

    Session 5: CASHFLOW STATEMENTS

    • Sources of cash and how cash was spent over a specified time period.
    • Performance in managing inflows and outflows of cash – ability to pay creditors, and finance growth.
    • Recognize potential cash flow problems

    Session 6: STATEMENT OF CHANGES IN EQUITY AND AUDITORS’ REPORTS

    • Purpose of Statement of Changes in Equity
    • Auditors Reports: Objectives and Scope of Audit, reasonable assurance, true and fair
    • Auditors’ Opinion: unqualified vs qualified, disclaimer, adverse opinion

    Session 7: FINANCIAL STATEMENT ANALYSIS – RATIO ANALYSIS

    • Asset Management Ratios – Inventory Turn, Asset Turn Ratio, Receivable Days
    • Profitability Ratios – Return on Assets (ROA), Return on Equity (ROE), Return on Sales, Gross Margin
    • Difference between Liquidity and Solvency
    • Liquidity Ratios – Current Ratio, Quick Ratio
    • Leverage Ratios (Solvency Ratios) – Debt-to-Equity, Debt Ratio/Debt to assets, Interest Coverage Ratio = Operating income (or EBIT)/Interest expense
    • Application, case studies and interpretation techniques of ratios

    Session 8: CASH FLOW

    • Difference between Cash and Profit. Why Cash is King?
    • How transactions impact profit and cash differently
    • Cash Operating Cycle, Cash Conversion Cycle
    • Working Capital and its critical components, Liquidity Ratios
    • Cash flow Forecasting – increasing headcount, purchasing, cost-cutting

    Session 9: INVESTMENT ANALYSIS

    • Costs of Capital: Cost of Debt, Cost of Equity
    • Valuation: Calculating Pre-Money and Post-Money Valuation. What is dilution
    • Weighted Average Cost of Capital (WACC) and how to calculate WACC
    • Time value of money, Present Value (PV) and Future Value (FV)
    • Interest rates, discount rates, discounted values
    • Calculating Net Present Value (NPV)
    • What is Internal Rate of Return (IRR)?
    • Comparison between NPV and IRR.
    • Case studies: Calculating NPVs and making investment decisions
    • Alternate methods: Payback Period, Return on Investment (ROI)

    Session 10: COST AND MANAGEMENT ACCOUNTING

    • Costing Concepts: Cost types and cost categories
    • Fixed vs Variable Costs
    • Material Cost – FIFO, LIFO, Simple Average, Weighted Average
    • Labour Cost, Direct Cost and Overheads
    • Cost drivers, Cost Allocation, Cost Centre vs Profit Centre
    • What is Activity Based Costing (ABC)?

    Session 11: BUDGET, BUDGETING AND BUDGETARY CONTROL

    • Budget Concept
    • Approaches: Zero-based, incremental
    • Fixed and Flexible Budgets: Advantages of Flexible Budgets
    • Keep your plan on target with budgetary controls: Advantages and Limitations

    Session 12: COOK THE BOOKS

    • What is “Cooking the Books”? Is there a difference with Creative Accounting?
    • Explore ways to “cook the books” – Income Statement and Balance Sheet