Finance for non-financial managers

Transcription

1 Finance for non-financial managers Contact us: Warszawa Katarzyna Babiarz tel Wrocław & Poznań Renata Michalak tel Promotion to a higher position is a natural path of career development. President of the board, director of operations or department manager are positions requiring organisational skills, decision making skills, power of influence. The management are not completely unaware of financial issues. A director does not have to be a finance person but without financial knowledge he will not be able to fully understand the consequences of his decisions. All managers should be comfortably able to read the balance sheet, income statement and statement of cash-flows. After participating in the course managers should be better able to communicate with financial staff. Our training is intensive and practical. During workshops we work on real life financial statements of trading and production companies. It is possible to participate in chosen modules only. However we recommend for a better understanding that you attend all modules. Reading and interpreting financial statements (2 days) Analysis of an entity s financial statement (2 days) Tax & Law for Managers (2 days) Investment project evaluation. Managing financial risks. Introduction to financial markets (2 days) Management Accounting with MS Excel (2 days) ProfitQuest strategic management business simulation (2 days)

2 Module: Reading and interpreting financial statements (2 days) Who is it for? This training module is addressed to participants without formal training or background in finance, who, as part of their work duties, are required to apply and interpret information contained in financial statements. The training module is especially recommended to: Owners of companies Managers of non-financial functions All persons wishing to broaden their understanding of finance Specialists Training goals How financial statements are created? How major balance sheet and income statement positions are valued? What the cash flow statement shows? Why companies use different accounting policies and how financial reporting differs from tax accounting? Why the auditor show up at the company and how to interpret his/her opinion? Can reported earning be improved without moving from behind the desk? If yes, then this course is for you! Programme Methods of constructing the balance sheet and income statement interrelationships and dependencies (case study). Key balance sheet and income statement positions rules for recognition and measurement (exercises), including: Property, plant and equipment, Intangible assets, Inventory, Financial instruments, Provisions, Receivables and payables, Accruals and prepayments, Income tax (including deferred tax) Rules for recognising income and expenses, Major financial accounting regulations in Poland and globally (Polish accounting act, International Financial Reporting Standards and US GAAP) what they are and who applies them? The cash flow statement and the statement of changes in equity what they show and how to link them to information presented in the balance sheet and income statement (exercises). Standalone and group accounts basics of consolidation (exercises). Comprehensive interpretation of financial statements (case study). What can you find out by reading the auditor s opinion? Creative accounting what to look out for when reading financial statements? (exercises) After completing this training module, you will be able to: Understand how business decisions made by you impact key elements of your company s financial statements. Feel more confident when talking to partners from the finance department. Reach for the financial statements of your own company, as well as those of your counterparties and competitors in order to find needed information Key features We train using a mixture of lectures, discussions, short exercises and comprehensive case studies. We illustrate theory with numerous examples derived from real financial statements. We do not require any upfront knowledge on the topic of finance. We do not avoid difficult topics but always try to present them in a clear way.

3 Module: Analysis of an entity s financial statements (2 days) A precondition for participation in the module is knowledge of the basic mechanism underlying the construction of financial statements at a level assumed after completion of the first module of this training cycle: Reading and interpreting financial statements. For who? This training module is addressed to participants without formal training or background in finance, who, as part of their work duties, are required to take decision based on information contained in corporate financial statements. This training module is especially recommended to Owners of companies Managers of non-financial functions All persons wishing to broaden their understanding of finance Aims Do you want to know? How to draw conclusions about a company s condition on the basis of information contained in the financial statements? How to create and interpret ratios that are useful in performing financial analysis? What to look for when analysing companies from different sectors and at different stages of development? How to evaluate a company s credit worthiness and liquidity? How to assess a company s sources of financing? Whether a company s financial statements tell you how much it is worth? What is not shown in the financial statements and how to deal with this? If yes, then this course is for you! Program Methods and types of financial analysis Financial ratios construction, interpretation, advantages and disadvantages of principal ratios relating to(exercises): Profitability Liquidity Efficiency Capital structure Evaluating working capital management (exercises). Assessing the quality of reported earnings and balance sheet items (exercises): Limitations to income and expense recognition Limitations to asset and liability recognition Analytical adjustments required deal with the above limitations. Comprehensive analysis of a company s situation based on a set of financial statements (case study). Specific issues in credit analysis (exercises). Forecasting future performance (exercises). Contrasting sources of financing advantages, disadvantages and costs (case study): Equity capital Debt (bank credit, bonds, leasing After completing this training module, you will be able to: Assess the financial standing of business counterparties and competitors. Identify signals pointing to deterioration in financial condition. Understand how your company is assessed by shareholders and creditors. Key features We train using a mixture of lectures, discussions, short exercises and comprehensive case studies. We illustrate theory with numerous examples derived from real financial statements.

4 Module: Investment project evaluation, managing financial risks, financial markets policies (2 days) For who? This training module is addressed to participants without formal training or background in finance, who, as part of their work duties, are required to exhibit an understanding of investment evaluation techniques, methods for hedging financial risks as well as an understanding of how financial markets operate. Aims Do you want to know? How to assess whether an investment project is worthwhile? How to find inputs for its evaluation? How financial markets determine interest rates, foreign exchange rates and other financial variables affecting your company? How to use derivative instruments to hedge against price, exchange rate and interest rate volatility? Why Polish exporters incurred losses in connection with foreign exchange rate options? If yes, then his training module is for you! Program Time value of money present value, future value, discounting (exercises). Methods for evaluating investment decisions net present value (NPV), internal rate of return (IRR), payback period, real options. Cost of capital weighted average cost of capital, adjusting for risk, decisions on project financing (case study). Sensitivity analysis in situations of uncertainty (exercises). Identifying and measuring financial risks in a company. Interest rates what they are, how they are determined, why they change? (case study decisions of the Monetary Policy Board, central bank operations and the WIBOR). Foreign exchange rates analysis of current trends in major currency pairs (case study a week on the FOREX market, the driving forces behind changes in currency rates). Financial markets structure segments, markets and players. Derivative instruments as tools for financial risk hedging (exercises): Forward and futures contracts Options Swaps Correct and incorrect uses of multiple derivative strategies (case study). What happens when financial markets stop functioning rationally? After completing this training module, you will: Understand, which of the investment projects considered by your company are worth initiating, and which are not. Feel more confident to take part in discussions on current financial and economic issues. Be able to identify financial risks which your company is exposed to and propose practical solutions to mitigate them. Key features We train using a mixture of lectures, discussions, short exercises and comprehensive case studies. We illustrate theory using up-to-date data from domestic and global financial markets. We do not require any upfront knowledge on the topic of finance. We do not avoid difficult topics but always try to present them in a clear way.

5 Module: Management Accounting with MS Excel (2 days) For who? The training is designed for people who must prepare and use management information as part of their work. The course is specially recommended for: those starting their career in a financial controlling environment or management accounting function; employees planning to develop their careers in financial controlling and management (ex-auditors, bookkeepers); entrepreneurs; directors, managers or specialists who receive information about the performance of particular organisational units and about the financial condition of the company on a regular basis. People not working in any finance related department, however responsible for budgeting. Aims The objective of the course is to present management accounting issues, sources of information and methods of presentation and use of this information in business life using computers and an Excel spreadsheet. Program Cost accounting Introduction to cost accounting Direct and indirect costs. Fixed and variable production costs. Absorption and marginal costing. Methods of production cost allocation. Activity Based Costing (ABC) Throughput accounting Types and application of budgets Budgeting and control strategic and operating aspects. The objectives of budgeting, their types and application. Decision making process Pricing methods and assessment of product profitability. Costs to be considered when pricing a product or service. Using relevant costs and opportunity costs in making short-term decisions. Calculation of a minimal price for oneoff contracts using relevant costing. Optimization of sales mix. Making decisions under uncertainty. Application of theory of constraints to make business decisions. Factors that should be taken into consideration during decision making that do not influence financial data directly. After completing the course you will: know how to use management accounting methods to effectively manage your company or department know the advantages of budgeting understand what is the cost of business operations and how it may depend on the accounting policy adopted be able to prepare relevant management information feel more confident talking to the financial staff and receive relevant information be able to obtain financial information and make more accurate business decisions know how to use Excel spreadsheets for budgeting and analysis of financial information Key features u The training takes the form of computer workshops. Each participant works on a seperate computer (you can either bring your own or borrow one from us for the duration of the course) u The course is intensive and practical. During the workshop, we will be working on complex examples. Difficult issues will be explained in a friendly and understandable manner for all participants. u Classes are taught by trainers with experience in the business.

6 ProfitQuest Strategic Management Business Simulation (2 days) For who? The PROFITQUEST workshop is specially recommended for: business owners management of non-financial departments business process project managers internal auditors all those wishing to expand their financial knowledge participants of our training course Finance for non-financial managers as well as all those wishing to develop competencies in the area of business management, finance and strategy building Key assumptions and objectives ProfitQuest is a business management simulation in which participants develop their skills in strategic planning and thinking in financial terms and also in making business decisions. The main objective of the workshop is to through a comprehensive look at the company, develop managerial competence in the field of strategic planning. The purpose of the simulation is to use in practice the knowledge and skills of business management, taking into account the risks associated with the activities of the market (eg. Competition, or limited resources). Program Financial statements The objective of financial statements the users of financial statements, usefulness of information The principles of financial statements preparation Elements of financial statements assets, liabilities, revenues, costs, equity and profit The most important elements of financial statements rules of recognition and measurement Analysis of costs Mission, vision, strategy Discussion of different methods of analysis: Porter s Five Forces analysis, SWOT analysis, the BCG matrix, risk analysis Practical task preparation of mission, vision and strategy for your own company Practical analysis of risks relating to a company s environment Introduction to ratio analysis Methods and types of financial analysis Financial ratios calculation, interpretations, advantages and disadvantages of the most common ratios Practical use of ratio analysis in the process of business decision making Exercises: profitability ratios, liquidity ratios, efficiency ratios, capital structure ratios and solvency ratio Company evaluation Strategy and management in order to build up the company s value from a short- and long-term perspective Net assets valuations. Book value of net assets and current value of net assets Valuation methods based on income Upon completion of the program, participants will: u Be able to draw up the relevant information for management purposes u Be able to accurately make business decissions u Learn the most important principles of budgeting, sorts and application. u Be able to anakyze the causes of the resulting devations from the assumed results u Undertsnad what the cost of the activity is and why it may depend on the adopted accounting policy. u Be able to use MS Excel spreadsheets for budgeting and analyzing financial information Structure The course is performed as interactive workshops. The simulation takes two full days (16 hours in total). It incorporates workshop sessions whose purpose is to gain new knowledge and organise knowledge gained. During the simulation the participants can draw conclusions from decisions made under time pressure, choose a particular strategy and observe its impact on the income statement, cash flows, balance sheet and on a company s value.

7 Timetable and Costs Net Price M: Reading and interpreting financial statements 2100 zł Tax & Law for Managers 2100 zł We organize all courses in Warsaw, some of the modules will be organized in Rzeszów, M: Analysis of an entity s financial statements Gdańsk, Wrocław and Poznań zł M: Investment project evaluation, managing financial risks, financial markets basics Contact our administrator about the new dates zł M: Management Accounting with MS Excel 2100 zł PROFITQUEST Strategic Management Business Simulation 1890 zł zł Registration If you would like to participate in the course, please fill in the application form and send it by academyofbusiness@pl.ey.com If you would like to receive more detailed information, please call or us at: academyofbusiness@pl.ey.com You will find the application form on the last page of our brochure.. Promotion Our price offer is as follows: For customers who register for the 12- days program (modules 1-6) and who pay for the programme in advance the price is PLN + 23% VAT per person The price includes materials, coffee breaks and lunch. Payment should be made before the start of each module based on a pro-forma invoice. After the payment is received a VAT invoice will be issued to all participants. All of the courses and workshops in Warsaw take place in our conference and training facility in the Focus building. Workshops last from 9:00 am until 4:30pm. Two coffe breaks and a hot lunch break are planned during the course.

8 Our courses fulfil the requirements of international professional organisations (ACCA, IIA) relating to continual professional development of their members. Based on obtained certificates participants receive relevant CPD, PDU points etc. Our recommendations In order to broaden and consolidate the knowledge acquired we recommend the following complementary courses: Negotiation skills workshop a fiveday series of courses of increasing difficulty level, designed for sales managers and trade contracts negotiators. The participants will learn how to identify client types, develop individual negotiating strategy, apply the methods of personal sales, manage existing and initiate new business relationships. Risk management - a two-day course designed for managers and employees interested in risk analysis in an organisation as well as for all those interested in risk management. Law for managers - what a manager should know before he calls a lawyer/an attorney a series of four courses aimed at broadening knowledge about the functioning of an enterprise. The participants will learn the practical aspects of law facilitating their business and private lives. Process management a four-day course consisting of two modules (modelling and process optimization). Workshops use Kaizen process tools and strategic games, designed to develop participants skills in how to properly describe a business process and improve the principles of process functioning. Additionally, after the workshops participants receive the tools in order to monitor and improve the newly mapped processes.