Accounting, Decision Making & Financial Communication

Start Date: 18 Mar 2018
End Date: 22 Mar 2018
Duration: 5
Country: Paris / France
Category: Finance, Accounting & Investment

The Course

Many managers and executives have heard that accounting is the language of business; yet have not taken the opportunity to become basically literate. This course offers the accounting language in a structured process. Participants will gain access to the language in a variety of exercises that eventually link to the Annual Reports and to the budgets prepared and managed by the executives. No preparation is necessary except to bring an open mind and a budget document or other financial documents of interest.

By combining techniques, analysis, problems, and examples with real case studies the course provides delegates with key cost awareness and budgetary skills, which is essential in managing and controlling processes/projects in times of increasing global competition where the budgets are inextricably linked with both strategy formulation and cost analysis. 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 systematic 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 accounting, decision making, and financial communications. Participants are expected to be high-potential learners seeking the next level of learning. Additional bibliographies, readings, and spreadsheets will be provided as takeaways.

The Goals

This course will help you learn how to:

         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 how profit margin, asset utilization, and financial leverage are used by managers to maximize the return to investors

         Understand the budgeting process, including performance evaluation

         Understand cost behavior and its impact on management decisions

         Understand the need for and the methods used to allocate overhead

         Communicate and to question financial information effectively

The Delegates

Attendees are expected to be intellectually curious with a commitment to learning that requires significant personal effort. The nature of the course and of the materials dictate that interaction, commitment, and debate are the core components of the learning process. While no particular level of prior knowledge is needed, there is an assumption that the attendees are committed to immersing themselves in a learning situation.

The Process

This workshop will be highly participatory and your seminar leader will present, guide and facilitate learning, using a range of methods including discussions, case studies and exercises. Where appropriate, these will include real issues brought to the workshop by delegates.

Lessons learned from the seminar will be applied to your own organization. Key performance indicators (KPIs) for the critical success factors (CSFs) will focus attention on high priority action plans for taking back to your organization.

The Benefits

Attendees will gain by participation in this program as a result of:

         Increased skill set in all phases of accounting/control

         Greater ability to participate in and to lead the accounting/control process

         Recognizing the increased professionalism to deal with the current and future topics

         Increased recognition by the organization of their learning and professional commitment

         Challenging themselves in an immersive learning environment

The Results

The organization will benefit by:

         Improved appreciation for the /accounting/control approach

         Better integration of business plans and strategic intent

         Reduced inter-functional territorial battles

         Improvements in communications between staff and line management

         Higher productivity during the decision making process

The Core Competencies

Attendees will gain in the following competencies as a result of the program:

         Using financial information for guiding decisions

         Clarifying KPIs across different functions

         Building strategic thinking and implementation orientation into their professional lives

         Challenging the status quo of accounting/control, budgeting, and decision making

         Recognizing the value of external standards, internal decision making requirements, and measurements of qualitative elements

         Identifying Value Creation principles as the driving force for decision making

The Programme Content


Day One

Accounting: An introduction

         What is accounting?

         What forms can accounting take

         Definition and importance of profit

         Decision scenarios explored

         Funding business operations

         Who is interested in profit?

         Cash vs. Accrual accounting

         Cash flow forecasting and improvement

         Accounting policies chosen by companies

         Accounting standards

Day Two

Financial Statements, Accounting Policies, and Reporting Standards

Income Statement basic components

         Revenues & the questions

         Direct/variable/product costs

         Indirect/fixed/period costs

         Mixed costs

         Non-cash deductions: the what, the why & the how

o    Depreciation: various methods explored

o    Amortization: impairment test

o    Depletion: when & how

         The difference between profit and cash

         A closer look at costs and expenses

         Profit calculations

         Summarizing profit statements and extracting the key figures

Balance Sheet

         Assets current & long term

         Liabilities current & long term

         Equity components

         Capital employed - options

         Managing the working capital cycle

Cash Flow Statement

         Operating sources/uses

         Investing sources/uses

         Financing sources/uses

Day Three

Making and Communicating Decisions using Budgets

         The master budget

         The budgeting as a planning tool, a control mechanism, a communications device & value creation

         Budgeting Sales to "drive the correct budget

         Operating budget components

         Financial budget

         Pro Forma Financial Statements

         Cash Budgets

         Capital budget

         Interrelationship of Financial Projections

         Dynamics and Growth of the Business System a model review

         Flexible vs. traditional budgets the pros & cons

         Variance analysis as a tool for improvement & communications

         Price and volume effects within variance analysis: state of the art

Day Four

Financial vs. Management Accounting: differences and similarities

         Objectives of Managerial Accounting

         Managerial Versus Financial Accounting:

         Role of the Managerial Accountant

         Financial accounting: what we show to the public

         Objectives of financial accounting

         Role of financial accountant

         Cost terminology: variable, fixed, controllable, non-controllable, incremental, sunk, opportunity, and relevant

         Cost behaviors in Cost-Volume-Profit scenarios: contribution margin and fixed costs

         Breakeven and targeted net income scenarios

         Cost/Benefit analysis

Day Five

Ultimatum Goal of Planning Valuation, Business Performance & Decision Making

         Definitions of Value

         Responsibility centers: cost, profit, and investment

         Measuring responsibility center performance

         Segment reporting internally and externally

         Business Valuation from multiple perspectives

         Managing for Shareholder Value

         Shareholder Value Creation in Perspective

         Evolution of Value-Based Methodologies in planning and budgeting

         Creating Value in Restructuring and Combinations beyond planning and reporting- the case for real change!





























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