Innovation.  Leadership.  Results   

 0780 187 379 

 KEBS/NQI/M/CORP/33

NITA /TRN / 986

financial analysis

This course helps managers to make sense of financial records. The major aim of this course is to help participants to understand and analyze the financial statements of a company. A model company as well as the participants’ own companies will be used in practical exercises. The program will cover an introduction to financial statements, financial ratio analysis, strategic cost accounting and investment appraisal analysis.

The learning design is based on individual preparation, class presentations and discussions, discussion in small groups, and plenary case and exercise discussions. At the end of the course, participants may test their acquisition of basic concepts and skills through a 90 minute written exam (open book). The results of this exam will be evaluated through a pass/fail grading system. This exam is optional for all participants.

Background Reading

Robert C Higgins, “Analysis for Financial Management”, McGraw Hill, 2007, chapters 1, 2 and 7. These chapters will be provided upon registration to the course.

Course Outline

Introduction to Financial Accounting

 

  • Balance Sheet
  • Funds Flow Financial and Management AccountingIncome Statement
  • Cash Flow Statement
  • Accounting for Goodwill
  • Consolidation Principles
  • Comparing IFRS and US GAAP
  • Notes to Financial Statements
  • Management Report
  • Auditor’s Report
  • Study Group Case Study Exercise and Plenary Session

Financial Ratio Analysis

  • Drivers of Operating Performance
  • ROE Decomposition
  • Measuring Shareholder Value Creation
  • Study Group Case Study and Plenary Sessions
  • Management Accounting
  •       Introduction to Management Accounting (Cost/Volume/Profit Relationships)
  •       Strategic Cost Accounting
  •       Study Group Case Study and Plenary Session

Investment Appraisal Analysis

  •       NPV and IRR metrics
  •       Cost of Capital
  •       Study Group Case Study and Plenary Session