Advanced Budgeting and Financial Statement Analysis

Format availability:

In-Person

Duration:

10 Days

Daily Agenda

Module I: Advanced Budgeting & Cost Management:
DAY 1:
Introduction: The Relevance of Budgeting and Cost Management within Strategy Execution  
  • The Link between Strategy, Planning, Budgeting and Cost Management
  • Why Budgeting and Costing are so important to manage your company?
  • Towards a Cross-functional Process-view of the Organization
  • Financial vs. Managerial Accounting (where you get information for decision-making)
  • Understand your Processes: Integrating Financial and Non-financial Aspects
  • Identify and Discuss the Key issues in terms of Budget / Costing for your own Organization
DAY 2:
The Budgeting Framework and its Role within the Management Process  
  • The Role of Budgeting within Management Accounting
  • The Value of Budgeting in your Company
  • Behavioral Implications of Budgeting
  • Key Concepts and Terminology
  • Advantages and Disadvantages: Critical issues to be Discussed
  • Overview on the Financial Statements - Balance sheet, Income statement and Cash-Flow
DAY 3:
Cost Management for Budgeting Purposes  
  • Cost Concepts and Terminology
  • Different Costs for Different Purposes
  • Fixed vs. Variable Costs: The Cost-Volume-Profit Analysis Model
  • Contribution Margin Analysis
  • Manufacturing vs. Non-manufacturing Costs
  • Period vs. Product Costs: Inventory Evaluation and Control
DAY 4:
Case Study Day - Traditional vs. Advanced Techniques in Cost-control  
  • Under-costing and Over-costing: The Consequences for Profitability
  • How to refine a Costing System?
  • Indirect vs. Direct costs: Traditional Cost Allocations Systems vs. Activity-Based Costing
  • Cost Drivers: Linking Resources, Activities and Management
  • Introducing Activity-Based Budgeting (ABB) and Management (ABM)
DAY 5:
Broadening the Performance Measurement Systems  
  • Shortcomings of Traditional Approaches to Budgeting and Performance Measurement
  • Need to Linking Financial to Operational Issues
  • Recent Best Practices: the Balanced Scorecard and Six-sigma
  • Financial Perspective and Customer Perspective
  • Internal Business Process Perspective and Learning & Growth Perspective
  • Developing and Adapting the Scorecard
Module II: Advanced Financial Statements Analysis :
DAY 6:
Introduction to Advanced Financial Analysis
  • Why analyse financial data?
  • Who are the users of Financial Information?
  • Sources of Financial Information
  • Published Annual Reports and Accounts – What is their purpose?
  • The Structure and Contents of an Annual Report and Accounts
  • Creative Accounting, Financial Scandals, and the Agency Problem
  • Corporate Governance, Sustainability, Ethics and Corporate and Social Responsibility (CSR) Reporting
  • The Three Main Financial Statements
    • Income Statement
    • Balance Sheet
    • Statement of Cash Flows
DAY 7:
Analysing the Annual Report and Accounts
  • Using Ratio and Other Analyses of the Annual Report and Accounts to Assess Financial Position and Financial Performance
  • Profitability and Cost-Volume-Profit (CVP) Analysis
  • Efficiency and Working Capital
  • Liquidity and the Short-term Solvency
  • Investment and Growth
  • Financial Structure and Long-term Solvency
  • Ratio Analysis using Excel
  • Excel Trend Analysis using Common-size Horizontal Analysis and Vertical Analysis for Comparability
DAY 8:
Analytical Tools, Cash vs Profit and the Cash Forecast
  • The Dupont System of Ratio Analysis and Pyramids of Ratios
  • Segmental Analysis and Value Added Analysis of the Annual Report and Accounts
  • The Fundamental Statistical Tools and Graphical Representations
  • Using Statistical Techniques to Analyse and Forecast Financial Data
  • The Impact of Alternative Asset Valuation Methods on the Balance Sheet and Profitability
  • Cash flow vs Profit – The Best Measure of Financial Performance
  • Working Capital and the Cash Flow Operating Cycle
  • Direct and Indirect Cash Flow Analysis and the Cash Flow Forecast
DAY 9:
Financing the Business, Capital Investment Project and Business Valuation
  • Analysis of the Balance Sheet to Identify Long-term Debt and Equity, and Short-term Financing
  • Capital Cost Models: Cost of Equity using Dividend Growth and Capital Asset Pricing Model (CAPM); Cost of Debt
  • Weighted Average Cost of Capital (WACC)
  • Optimal Capital Structure Models to Minimise WACC
  • Future Values, Present Values, and Discounted Cash Flow (DCF)
  • Using Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR) and Equivalent Annual Cost (EAC) to Analyse and Evaluate Capital Projects
  • The Reasons for Business Valuations
  • Business Valuation Models
DAY 10:
Analysing and Predicting Corporate Failure, Business and Financial Risk
  • Predicting Financial Distress and Corporate Failure – The Altman Z-score Model
  • Risk and Uncertainty
  • Risk Analysis using Expected Values, Standard Deviation and Coefficient of Variation
  • Sensitivity, Simulation, Scenario and Break-even Analysis Techniques
  • The Analytical Tools to Manage Risk
  • Systematic Risk, Unsystematic Risk, Business Risk and Financial Risk
  • Financial Risk– Interest Rate and Foreign Currency Exchange Rate Exposures
  • Using Insurance, Hedging and Derivatives to Mitigate and Minimise risk

Frequently Asked Questions

There are no prerequisites. Our courses are open to students of all backgrounds who are 18 years of age and older. All courses are conducted in English. Video lectures include English subtitles and the option to slow-down, pause, or replay lectures for better retention. Discussion boards are a critical component of each of our courses; therefore, we suggest students have a conversational knowledge of English when pursuing a Certificate of Completion. For any of the art writing courses, students need to be 100% proficient in written English.

You should have an up-to-date web browser such as: Chrome, Safari, Firefox, or Internet Explorer. For more detailed information, please see the guides for supported browsers and basic computer specifications. Our Online Courses can be accessed on a mobile or tablet device, although we strongly encourage you to have access to a desktop or laptop computer and reliable internet connection for certain course components. Former students have told us it is easiest to read discussion threads and complete written assignments on a laptop or desktop computer.

Registration is available on our website. Just follow these simple steps: Click the “Apply Now” button in the top right corner of your screen. Select “Online Courses.” Choose your course(s). You will be asked for basic contact information and your credit card payment. We require full payment at the time of registration and all tuition is billed in US dollars. Be sure to check with your bank or credit card company, as your financial institution may charge a foreign transaction fee.

Our classes are kept small, at no more than 30 students, to better facilitate and encourage personalized interaction with the instructor and fellow participants. Your classmates come from all over the globe and contribute their global perspectives and experience. Some are currently working within the arts while others are just beginning. All classmates share in their passion for the art world.

It is recommended that you begin your course promptly. If you do need to start the course a few days late, contact your instructor as soon as possible after the course has opened to discuss your options. Registration closes on the Friday after the course begins.

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London
17-28 Jul 2023
Fee: $11,900
Paris
21 Aug-01 Sep 2023
Fee: $11,900
Course customization available
Course customization available

This training course is available to be conducted at your own page, at your own time. Request for a quotation now, our training advisor will contact you promptly

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