An Interactive 10-Day Training Course

Advanced Budgeting and
Financial Statement Analysis

Modules

This course is split in two modules:

Module 1: Advanced Budgeting & Cost Management
Module 2: Advanced Financial Statements Analysis

Each module is structured and can be taken as a stand-alone training course; however, delegates will maximise their benefits by taking Module 1 and 2 back-to-back as a 2-week training course.

Course Outline

Module I: Advanced Budgeting & Cost Management

DAY 1

Introduction: The Relevance of Budgeting and Cost Management within Strategy Execution  

  • The Link between Strategy, Planning, Budgeting and Cost Management
  • Why Budgeting and Costing are so important to manage your company?
  • Towards a Cross-functional Process-view of the Organization
  • Financial vs. Managerial Accounting (Where you get information for decision-making)
  • Understand your Processes: Integrating Financial and Non-financial Aspects
  • Identify and Discuss the Key issues in terms of Budget / Costing for your own Organization

DAY 2

The Budgeting Framework and its Role within the Management Process  

  • The Role of Budgeting within Management Accounting
  • The Value of Budgeting in your Company
  • Behavioral Implications of Budgeting
  • Key Concepts and Terminology
  • Advantages and Disadvantages: Critical issues to be Discussed
  • Overview on the Financial Statements - Balance sheet, Income statement and Cash-Flow

DAY 3

Cost Management for Budgeting Purposes  

  • Cost Concepts and Terminology
  • Different Costs for Different Purposes
  • Fixed vs. Variable Costs: The Cost-Volume-Profit Analysis Model
  • Contribution Margin Analysis
  • Manufacturing vs. Non-manufacturing Costs
  • Period vs. Product Costs: Inventory Evaluation and Control
  •  

DAY 4

Traditional vs. Advanced Techniques in Cost-control  

  • Under-costing and Over-costing: The Consequences for Profitability
  • How to refine a Costing System?
  • Indirect vs. Direct costs: Traditional Cost Allocations Systems vs. Activity-Based Costing
  • Cost Drivers: Linking Resources, Activities and Management
  • Introducing Activity-Based Budgeting (ABB) and Management (ABM)

DAY 5

Broadening the Performance Measurement Systems  

  • Shortcomings of Traditional Approaches to Budgeting and Performance Measurement
  • Need to Linking Financial to Operational Issues
  • Recent Best Practices: the Balanced Scorecard and Six-sigma
  • Financial Perspective and Customer Perspective
  • Internal Business Process Perspective and Learning & Growth Perspective
  • Developing and Adapting the Scorecard

Module II: Advanced Financial Statements Analysis

DAY 6

Introduction to Advanced Financial Analysis

  • Why analyse financial data?
  • Who are the users of Financial Information?
  • Sources of Financial Information
  • Published Annual Reports and Accounts – What is their purpose?
  • The Structure and Contents of an Annual Report and Accounts
  • Creative Accounting, Financial Scandals, and the Agency Problem
  • Corporate Governance, Sustainability, Ethics and Corporate and Social Responsibility (CSR) Reporting
  • The Three Main Financial Statements
    • Income Statement
    • Balance Sheet
    • Statement of Cash Flows

DAY 7

Analysing the Annual Report and Accounts

  • Using Ratio and Other Analyses of the Annual Report and Accounts to Assess Financial Position and Financial Performance
  • Profitability and Cost-Volume-Profit (CVP) Analysis
  • Efficiency and Working Capital
  • Liquidity and the Short-term Solvency
  • Investment and Growth
  • Financial Structure and Long-term Solvency
  • Ratio Analysis using Excel
  • Excel Trend Analysis using Common-size Horizontal Analysis and Vertical Analysis for Comparability

DAY 8

Analytical Tools, Cash vs. Profit and the Cash Forecast

  • The Dupont System of Ratio Analysis and Pyramids of Ratios
  • Segmental Analysis and Value Added Analysis of the Annual Report and Accounts
  • The Fundamental Statistical Tools and Graphical Representations
  • Using Statistical Techniques to Analyse and Forecast Financial Data
  • The Impact of Alternative Asset Valuation Methods on the Balance Sheet and Profitability
  • Cash flow vs. Profit – The Best Measure of Financial Performance
  • Working Capital and the Cash Flow Operating Cycle
  • Direct and Indirect Cash Flow Analysis and the Cash Flow Forecast

DAY 9

Financing the Business, Capital Investment Project and Business Valuation

  • Analysis of the Balance Sheet to Identify Long-term Debt and Equity, and Short-term Financing
  • Capital Cost Models: Cost of Equity using Dividend Growth and Capital Asset Pricing Model (CAPM); Cost of Debt
  • Weighted Average Cost of Capital (WACC)
  • Optimal Capital Structure Models to Minimise WACC
  • Future Values, Present Values, and Discounted Cash Flow (DCF)
  • Using Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR) and Equivalent Annual Cost (EAC) to Analyse and Evaluate Capital Projects
  • The Reasons for Business Valuations
  • Business Valuation Models

DAY 10

Analysing and Predicting Corporate Failure, Business and Financial Risk

  • Predicting Financial Distress and Corporate Railure – The Altman Z-score Model
  • Risk and Uncertainty
  • Risk Analysis using Expected Values, Standard Deviation and Coefficient of Variation
  • Sensitivity, Simulation, Scenario and Break-even Analysis Techniques
  • The Analytical Tools to Manage Risk
  • Systematic Risk, Unsystematic Risk, Business Risk and Financial Risk
  • Financial Risk– Interest Rate and Foreign Currency Exchange Rate Exposures
  • Using Insurance, Hedging and Derivatives to Mitigate and Minimise risk

Certificate

Oxford Management Centre Certificate will be provided to delegates who successfully completed the training course.

Accreditation

NASBA

NASBA

All Training Courses delivered by Oxford Management by default are eligible for CPE Credit.

In association with

GLOMACS Training & Consultancy

GLOMACS Training & Consultancy

Visit website

Course image
Duration
10 Days
Format
Classroom
Language
English
Certificate
Yes
Choose the date and location that suits you:
London
15-26 Jul 2024
Fee: $11,900
Book your place
Paris
19-30 Aug 2024
Fee: $11,900
Book your place

Oxford Management Centre
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