Finance for Non-financial Executives

General Managers, Directors, Experienced Managers
Vice President and Top Executives in all respective
Business Managers, Department Heads & Managers
Sales & Marketing Managers
Accountants, Corporate Treasury Managers
Investment Professionals
Any staff with a non-financial background looking to learn the fundamentals of finance

Breakthrough the language of finance
Understanding the basic accounting model and its limitations
Analyzing and interpreting financial statements within the context of industry analysis and macroeconomic fundamentals
Mastering forecasting techniques
Providing rigorous tools and approaches to measure the effectiveness of your expenditures
Clarifying financial statements and their relationship to strategic decisions
Communicating more effectively with financial managers and accountants
Understanding different valuation techniques and respective benchmarks

Day1 Finance Fundamental

- Introduction to the Course

- The role of the finance function

- Working with the finance teams

- How companies succeed on finance?

-Accounting Information—The Language of Business

- What is financial accounting?

- Why Financial Accounting is necessary?

- Some process, terminology and concepts

- Learn how financial data is generated and reported

- Users and interpretation of Financial Statements

- Managers and Financial Statements

- The concept of shareholder value

-Demystifying Financial Statements

- Components of Financial Reports: balance sheet and P&L

- Use financial data to evaluate the performance of department, organization, or division

- Understand how accountants measure income, and show how it is related to a balance sheet

- Cost of goods sold

- The accrual concept and timing adjustments

- Financial statements: graphical balance sheet simulation

- Revisit the Income Statement and Balance sheet in a financial perspective

- Cash Flow Statement, Distinguishing income from cash flow

- The shortcomings of accounting

- Implications of Revenue Recognition

- Know effects of fair value measurement on financial statement

- Analysis of Financial Statement—Where do you find useful information?

- Qualitative Characteristics of financial Information

- Locate and use sources of information about business performance

- How accounting information assists in decision making

- Linking decisions to financial metrics

- How to increase ROCE

- Profitability ratios

- Economic Value Added (EVA TM)

-Financial Decision Making

- Profitability, liquidity ratios

- Managing working capital

- Financial Leverage

- Debt ratios

- Measuring business risk

- Cash management

-Study of the Annual Report of a Listed Company

- Case: analyzing and interpreting a listed company’s annual report

-Accounting Creates Value

- Functions of management accounting

- Management accounting compared to financial accounting

- How the use of cost information defines its focus and form

- Break-even analysis: ensuring fixed costs are covered

- The costing principles and avoiding costing traps

- The difference between traditional cost management systems and activity-based cost management systems
Day2 Management Application

- Budgeting and Forecasting: A Must in Pricing Effectively for Profit. Selecting the Best Costing Method and the Relevant Practical Pricing Theory

- Budgeting and Forecasting : Two sides of the same process

- Understanding the different steps involved in the process

- How to minimize the risks in assessing the hypothesis underlying the performance

- The cost information for pricing and product planning

- Cost based pricing: a value-added approach

- Customers: an outside in pricing

- Competitors: predict their price

- How to price effectively for profit, evaluating pricing methods

- Case Study

- Capital Investment Decision: Cash is King!

- Cash flow forecasts as a planning tool

- EBITDA, free cash flows

- The analysis of return of capital employed, payback period, and discounted cash flow

- Establishing cash flow forecasts

- Calculating Net Present Values, IRR

- Company Valuation: Risk and Corporate Characteristics

- The fundamental tools of investment appraisal

- The cost of capital and WACC, and how these are determined

- The sensitivity analysis: how sensitive are key decision to potential changes in circumstances

- Approaches to valuation

-Capital Markets, Investment Banking and Financial Instruments: How to Face Your Long-term Financing Issues and More?

- An introduction to capital markets

- Different forms of financing (long term, short term)

- Debt versus Equity

- Gearing and beta factors

- Capital Asset Pricing Models

- Tax shields

-Investing in China through Mergers or Acquisitions: Financial Business Practices and Managing the Related Risks

- An Overview of the M&A market in China

- Understanding the valuation gap between sellers and buyers

- Understanding the structuring gap by the buyer

- Understanding the negotiation gap between sellers and buyers

- Understanding the execution gap

- Understanding the challenges of the integration gap

- Taking into account the Human dimension of any merger or acquisition