Outcomes
By the end of this training course, trainees will be able to :
- Identify and explain the main financial statements and it’s underlying line items and it’s classifications.
- Read and analyze the main financial statements and understanding how they are interrelated.
- How to use the financial statements in taking operational, investing and financing decision.
- Use the financial statements in making managerial decisions.
- Define the budget and identify the advantages of budgets, budget methodologies and budget preparation methods.
- Understand the budget cycle and contribute in preparation of the master budget.
- Understand and conduct Cost-Volume-Profit Analysis.
- Understand and conduct managerial decision making process.
- Understand time value of money concepts.
Target Group
- Managers and Executives of departments which they have an interaction with finance and managerial issues.
Contents
- Financial statements – components and classifications:
- Understanding Main financial statements and basic objectives of financial reporting.
- Qualitative characteristics of financial reporting (Accounting Information).
- Basic elements of financial statements.
- Recognition & measurement concepts.
- Demonstrating financial analysis tools (Horizontal analysis, vertical analysis and financial ratios).
- Explaining different financial ratios (Liquidity Ratios, Activity Ratios, Solvency ratios, Profitability Ratios).
- Revenue Recognition Principle:
- Revenue recognition of goods (at point of sale).
- Revenue recognition of services.
- Accounting of sales returns and sales discounts.
- Planning, Budgeting and Forecasting:
- Preparation of master budget up to proforma financial statements.
- Managerial Decision Making Process:
- Defining and preparing contribution income statement and it’s components.
- Explaining breakeven analysis – CVP analysis and applying it in decision making process.
- Explaining breakeven analysis when the company sale more than one product.
- Using managerial analysis in decision making process such (make or buy decisions, sell at split off point or after further processing, accepting or rejecting special orders…etc).
- Understaning and Calculating Capital Budgeting Techniques (NPV, IRR, Payback Period).
- Time Value of Money Concepts:
- Defining simple interest rate and compound interest rate.
- Defining present value and future value of money.
- Calculating present value and future value of money of a single amount.
- Calculating present value and future value of money of annuity payments (Ordinary Annuity & Annuity Due).
- Case Studies.