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