The Why & How of Numbers
- Demystifying the most commonly used finance/accounting terms including
- Are there any financial regulations that govern the world of accounting & finance?
- Different methods of accounting i.e. Cash vs Accrual basis
- Introduction to the Financial Statements containing
- Income Statement
- Balance Sheet
- Cashflow Statement
- Statement of Changes in Equity
- The relationship and flow of data among all Financial Statements
Revenue & Expenditure – Explained
- What is included in Revenue and what is excluded from it
- Cash vs Revenue; why these are not same
- Different types of expenditure used in recording financial transactions
- What is Cost of Goods Sold – Why this is important and how it affects the profitability
Income Statement – Deep Dive
- Detailed review of Income Statement and its line items
- Understanding the key terminology used in the Income Statement
- What are different types of profits i.e. Gross Profit, Operating Profit, Net Profit
- What is EBIT and EBITDA and its significance
- What are the extra ordinary items and how they are viewed while analysing the Income Statement
Balance Sheet – Deep Dive
- Key terms used in Balance Sheet i.e. Assets, Liabilities and Equity
- Understanding the nature of Assets and their classification in Current and Non-Current assets
- What are intangible assets and how we record them in balance sheet
- Understanding Depreciation & Amortization
- How to classify the Current & Non-current liabilities
- What is included in Equity, Retained Earnings and Reserves?
Cashflow Statement – Deep Dive
- Understanding the structure of Cashflow Statement
- What are different classification of Cashflows according to the activities
- Cashflow from Operating Activities
- Cashflow from Investing Activities
- Cashflow from Financing Activities
- Establishing the link between cashflow from the above 3 activities and how the business can relate the financing sources with the help of cashflows from different activities
Case Study: Analyse the company’s operating performance using the cashflow analysis
Finance Statement Analysis – Ratio Analysis
- What is the objective for Financial Analysis
- What are different types of financial ratios?
- How to calculate and interpret different types of financial ratios including
- Profitability ratios
- Liquidity Ratios
- Solvency Ratios
- Investor Ratios
- Are ratios half the picture?
- How to use ratios to analyse a company’s financial health
Case Study: Detailed Financial Ratio Analysis of a large organization
Introduction to Budgeting
- How financial budgets can play a vital role in managing the business?
- What is the budget cycle?
- Long run budget vs short run budgets
- Different budgeting methodologies including static budget, flexible budget, zero based budgets etc.
Case Study: Preparing the annual budget plan for a 5 years old company
Investment Appraisal & Project Evaluation Techniques
- Demystifying the Time Value of Money Concept
- Using time value of money concept calculate the discounted cashflows
- How to segregate between relevant and irrelevant cashflows when analysing the new project
- Introduction to various investment appraisal techniques including
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Payback Method
- How to make project decision regarding accepting or rejecting an new project
Case Study: Appraising an expansion plan for a new product
Course Summary and close
Mirza Farrukh Baig, FCA
Mirza Farrukh Baig is a qualified Chartered Accountant and a career banker. He has over fifteen years of Corporate Training with a focus on Finance, Accounting, Financial Strategy and Risk Management. He is also the lead corporate trainer at Lynchpin delivering specialized training on Finance and Accounting.
He has served for eight years in a leading commercial bank in UAE where he was instrumental in strengthening the SME credit risk unit. Apart from approval of banking facilities for SME clients he played instrumental role in developing and implementing the SME credit risk policy of the bank.
Currently he is the CEO of Lynchpin Training & Consulting.
Farrukh is a fellow member of the Institute of Chartered Accountant of Pakistan (ICAP). He has been awarded gold medal for outstanding performance in his CA final examination, by ICAP. He also went to Harvard Business School to Executive Entrepreneurship training program.