Financial Analysis, Budgeting and Reporting

• Delegates from all sectors who have a need to understand financial statements, their analysis and International Financial reporting Standards (IFRS) in order to improve their own knowledge and to benefit their area of responsibility within the organisation

Course objectives

• To understand and apply effective financial and risk analysis
• To effectively interpret financial reports
• To understand the key principles and application of IFRS
• To appreciate the impacts of capital composition structures
• To conduct effective investment appraisals
• To build and manage complex budgets

Course content

Profit & Loss (P&L) Statement

• Format and content of the P&L statement
• Understanding the principles behind the numbers
• Building profit & loss statements
• The link between the P&L and the Balance Sheet

Balance Sheet

• Format & content of the Balance sheet
• Understanding the principles behind the numbers
• Building the balance sheet
• Balance sheet analysis

Cash-Flow Forecasts

• The importance of cash flow
• The format and content of the cash-flow forecast
• Building the cash-flow forecast
• The link between the cash-flow forecast and the P&L

Building effective budgets

• The format and content of budgets
• Ensuring accurate information
• Building the budget
• Managing the budget

Building effective costings

• Key costing techniques
• Understanding margin management
• Integrating costing with budgeting
• Budget and cost reporting

The principles and impact of IFRS

• Key principles of IFRS
• The IFRS Standards
• The impact of IFRS upon financial reports
• Ensuring compliance

Capital composition structures

• Forms of capital composition
• The impact of gearing
• Debt v equity
• Balancing capital structures

Investment appraisal

• Establishing investment outcomes – pure return, defensive, income led, strategic
• Types of investment within the marketplace
• Investment appraisal – ROI, yield, opportunity cost
• The use of leveraged financial instruments

Risk analysis

• The concept of risk analysis
• Probability analysis
• Scale and impact analysis
• Integrating risk analysis within investment strategy