Finance for Non-Finance Professionals

1.    Understanding the purpose of financial statements:

  • Types of financial information
  • Users

2.    The form of the financial information:

  • Statement of financial position
  • Income Statements
  • Statements of cash flow
  • Statements of changes in equity

The session comprises of user friendly examples of statements, explaining captions in a logical and understandable way.

  • Accounting concepts:
    • Accruals concept
    • Substance over form
    • Prudence concept
    • The concept of materiality

Concepts are explained by means of practical examples, to allow students to appreciate the economic reasons underlying them.

  • Interpreting company accounts:
    • Absolute changes and ratio analysis
    • Profitability ratios
    • Liquidity ratios
    • Gearing ratios

At the end of the session participants calculate suggested ratios and analyse each indicator.

Day 2: Management Accounting

  • Product costing methods
    • Direct costs, fixed costs and total costs
    • Costing methods and standard cost cards
    • Marginal Costing
    • Absorption costing
    • Contribution
  • Decision making
    • Relevant costs
    • Comprehensive numerical example
    • Accept or reject decisions
    • Make or buy decisions
    • Shutdown decisions
    • Limiting factor decisions
  • Budgets and Budgetary control
    • Introduction to budgets
    • Usefulness
    • Behavioral aspects of budgeting
    • Time series analysis
    • Preparing budgets
    • Cash budgets
    • Incremental budgeting
    • Zero based budgeting
    • Rolling budgets
    • Budgetary control

Methods of budgeting are illustrated with numerical examples.

  • Alternative views on performance measurement
    • Balanced scorecard approach
    • Performance measurement in service industry

Your Tutor: Georgi Kirilov