This seminar provides the participant with an ability to deepen their expertise of finance and accounting for better management and decision-making capabilities. The course is developed for the specific organization's needs.
The length and topics covered are determined cooperatively with the client.
Case Examples are developed from the client's annual reports and/or their customers' or competitors' annual reports. Example Topic areas are:
Example topics include:
Topic I: Introduction to Financial Statements
A brief introduction to accounting regulation and its impact on Financial Statements. We address the following questions:
Who uses accounting reports and why?
How accounting principles are determined?
What is the role of the FASB & SEC?
Topic 2: Financial Statements
Explanation and examples of the Balance Sheet, Income Statement and Statement of Cash Flows.
We demonstrate the purpose of each statement, show the relationship between the statements and build the necessary foundation for interpretation of the statements.
Topic 3: Balance Sheet
An in-depth review of each balance sheet item and what they signify to the company and the investor.
Topic 4: Income Statement
An in-depth review of each of the items on the income statement and what they signify for the company and the investor.
A review of some of the exceptional items on an income statement including restructuring and other unusual charges, discontinued operations, extraordinary items and changes in accounting principles.
Topic 5: The Statement of Cash Flows
An in-depth review of each of the items on the statement of cash flows and what they signify for the company and the investor.
This session focuses on the three cash flow areas: Operations, Investing and Financing Activities.
Topic 6: Financial Ratio Analysis
An introduction to ratios. This session emphasizes the use of balance sheet and income statement ratios as a means of evaluating the performance of the company. We break down the return to the company and the return to the stockholders into the component ratios as a way of explanation and analysis.
Topic 7: Performance Measures
This chapter reviews the three main reporting measures used: Return on Invested Capital, Residual Income (Economic Value Added Ð trademarked by Stern & company), and Return on Net Assets. The chapter explains each measure and demonstrates the similarities and differences.
Topic 8: Financial Markets
The credit and equity markets are examined from an investor's point of view and then from the company's point of view.
Topic 9: Weighted Average Cost of Capital
The required rate of return on each financial instrument demonstrated in the last topic is shown in this chapter to be a component of the weighted average cost of capital.
Topic 10: The Capital Expenditure Decision
This topic demonstrates the use of the cost of capital in making capital expenditures decisions: from launching new products to corporate acquisitions.
Topic 11. Valuation
The link between accounting numbers and stock prices will be explained. Various valuation tools are examined. These tools include: the discounted cash flow model, value investing techniques and comparable analysis (incorporating price to book, price/earnings, and price to revenues).
Management Accounting Topics
Topic 12: The Balanced Scorecard and Financial Performance Measures
As an alternative to financial performance measures, companies are incorporating qualitative and customer based performance measures in addition to financial performance measures. This session explains the pros and cons of the balanced scorecard and demonstrates how to establish alternative performance measures for your company.
Topic 13: Relative Profitability Analysis and Activity Based Costing (ABC)
This session evaluates the pros and cons of the traditional costing systems and Activity Based Costing systems. We examine how to value products and services using costs and activities that drive the production of the product or the cost of the service provided to customers (internal and external).