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Course Outline

The Why & How of Numbers

  • Demystifying commonly used finance and accounting terms including:
  • Are there financial regulations governing the world of accounting and finance?
  • Different accounting methods, such as Cash vs. Accrual basis
  • Introduction to Financial Statements containing:
  • Income Statement
  • Balance Sheet
  • Cash Flow Statement
  • Statement of Changes in Equity
  • The relationship and data flow among all Financial Statements

Revenue & Expenditure

  • What constitutes Revenue and what is excluded from it
  • Cash vs. Revenue: Why these concepts differ
  • Different types of expenditure used in recording financial transactions
  • Understanding Cost of Goods Sold – Why it is important and how it impacts profitability

Income Statement

  • A detailed review of the Income Statement and its line items
  • Understanding key terminology used in the Income Statement
  • Different types of profits, i.e., Gross Profit, Operating Profit, and Net Profit
  • Understanding EBIT and EBITDA and their significance
  • Identifying extraordinary items and their treatment when analyzing the Income Statement

Balance Sheet

  • Key terms used in the Balance Sheet, i.e., Assets, Liabilities, and Equity
  • Understanding the nature of Assets and their classification into Current and Non-Current assets
  • Understanding intangible assets and their recording in the balance sheet
  • Understanding Depreciation & Amortization
  • How to classify Current & Non-current liabilities
  • What is included in Equity, Retained Earnings, and Reserves?

Cash Flow Statement

  • Understanding the structure of the Cash Flow Statement
  • Different classifications of Cash flows according to activities
  • Cash flow from Operating Activities
  • Cash flow from Investing Activities
  • Cash flow from Financing Activities
  • Establishing the link between cash flows from the above three activities and how the business can relate to financing sources with the help of cash flows from different activities

Financial Statement Analysis – Ratio Analysis

  • The objective of Financial Analysis
  • Different types of financial ratios
  • How to calculate and interpret different types of financial ratios including:
  • Profitability ratios
  • Liquidity Ratios
  • Solvency Ratios
  • Investor Ratios
  • Are ratios the whole picture?
  • How to use ratios to analyze a company’s financial health

Introduction to Budgeting

  • How financial budgets play a vital role in managing the business
  • What is the budget cycle?
  • Long-run budget vs. short-run budgets
  • Different budgeting methodologies including static budget, flexible budget, zero-based budgets, etc.

Investment Appraisal & Project Evaluation Techniques

  • Demystifying the Time Value of Money Concept
  • Using the time value of money concept to calculate discounted cash flows
  • How to segregate between relevant and irrelevant cash flows when analyzing a new project
  • Introduction to various investment appraisal techniques including:
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Payback Method
  • How to make project decisions regarding accepting or rejecting a new project
 7 Hours

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