Course Info
Managers all over the world are increasingly facing top-line and bottom-line demands amidst an environment that is uncertain and challenging. Hence for a manager to be effective, he or she should have good business acumen for which fundamental financial knowledge is critical.
In an article entitled, “Business Acumen Involves More Than Numbers”] Chris Berger, a principal and member of the human resources practice explains that business acumen starts with the ability to understand how a company makes and loses money and that leaders must be financially literate and be able to understand numbers on company financial statements.
The program is designed for Managers and Leaders who want to enhance their ‘business acumen’ and take positions of responsibility and accountability. Additionally, it enables participants to improve their knowledge of finance and financial analysis to be able to see the financial outcome and impact of strategies and operations and be able to better monitor and control performance of companies.
The approach taken during the program is one from a business perspective so as to be able to see flow of money and critical links for control and results and for the effective management of resources.
The program uses a wide variety of participative methods including mini case studies to understand company balance sheet, income statements, cash flow statements and statements to add value to the effective management of organization.
What Will I Learn From This Course?
Insight into the key financial statements – the Income Statement, the Balance Sheet and the Cash Flow Statement to enable good communication with the finance department and contribute effectively at management meetings
Solid appreciation of the terminologies used by finance directors or accountants allowing Company Directors to contribute more effectively to board room discussions hence adding value to managing and leading a business effectively
Demystify the myth that ‘financial concepts” are complex
Learn finance from a “business perspective”
Understand how the numbers are generated, how they can be manipulated
Evaluation and assessment methods of financial statements using effective ‘basic analysis’ and accepted financial ratios.
International Financial Reporting Standards (IFRS) in the context of the Malaysian Accounting Standards Board
Great appreciation for working capital management and operating working capital and why it is important in critical times of uncertainty.
Differences between Statutory Financial Statements and Management Accounts and their essential uses.
The Key Financial KPIs
Knowledge of types of costs, profit and breakeven as financial tools
Get an insight into costs concepts and marginal costing for effective decision making
Understand the importance of budgets and forecasts and it’s drivers and controllers
Overview of capital expenditure.
Learn the importance of Capital Expenditure (CAPEX) decisions and how they are determined in organizations
Target Audience
Methodology
Course Outline for This Programme
Module: Why finance in the context of business overviews and stakeholder expectations?
a. The Business flow and why finance and its role is critical for effective Managerial performance
b. The role expectations of managers in the context of investments and results
Module: Introduction to Concepts, Conventions & Regulations
a. An insight into financial standards and the responsibility of directors, managers and auditors
b. The International Financial Reporting Standards (IFRS) and its implications to responsibility and accountability of directing a company
c. The concept “financial engineering” and why it happens?
(Case situations and discussions using extracts from published accounts)
Module: Understanding Financial Statements
a. Exploring and understanding key concepts in the Income statements, Balance Sheet and Cash flow statements
b. In the Income Statement the differences between gross profit, operating profits and net profits and how they are derived
c. In the Balance Sheet the differences between non-current assets, current assets, equity, current liabilities and long term liabilities
d. In the cash Flow Statement the differences between Operating Cash Flow, Investing cash flow and Financing Cash Flow
e. Areas where Company Directors must focus more than others in these financial statements
(Experiential learning using information detailed in the case of a trading company in operation and getting participants to complete financial frameworks)
Module: Analyzing and Interpreting Financial Statements using basic Analysis including Trends and Ratios. Understanding the Strengths and Weaknesses of Accounting Measures of Performance
a. The need to review Financial Statements
b. The power of basic analysis in the context of benchmarks as business drivers
c. Review and evaluation using:
Module: Analyzing and Interpreting Financial Statements using basic Analysis including Trends and Ratios. Understanding the Strengths and Weaknesses of Accounting Measures of Performance
a. The need to review Financial Statements
b. The power of basic analysis in the context of benchmarks as business drivers
c. Review and evaluation using:
i. Performance ratios
ii. Liquidity ratios
iii. Leverage ratios
iv. Stock market ratios
d. Limitations of ratios
(Case discussion and comparison of 2 companies using ratios)
Module: Critical aspects of Working Capital Management
a. What is Working Capital management cum Operating Working Capital (OWC)?
b. Why is OWC important?
c. How is working capital managed and controlled for effective results
d. Cash forecasting – the need and implications of poor cash forecasting
(Case completion of a company’s financial forecast and how to overcome cash flow
challenges)
Module: Differences between Statutory Financial Statements and Management Accounts
a. What is Working Capital management cum Operating Working Capital (OWC)?
b. Why is OWC important?
c. How is working capital managed and controlled for effective results
d. Cash forecasting – the need and implications of poor cash forecasting
(Case completion of a company’s financial forecast and how to overcome cash flow challenges)
Module: Management Accounting and the importance of Cost Profit and Breakeven?
a. Why is management accounting different from financial accounting?
b. The difference between marginal costing and absorption costing?
c. Why is cost, breakeven and profit important for decision making?
(Fundamental computations and discussions)
Module: Budgeting and Forecasting
a. Why budgeting and forecasting is important?
b. The budget flow, drivers and controllers
c. Budget systems, limitations and culture
d. Key determinants of forecasts
Module: Capital Budgeting and Investments Appraisals
a. The time value of money and forward investments
b. Payback periods
c. Discounted Cash Flows, Net Present Value (NPV), Internal Rate of Return (IRR)
d. Hurdle rate determination
(Fundamental computations and discussions)
