Finance for Non-Financial Managers - Extended

Introduction to Accounting

History and background

What is accounting and finance and why is it important?

Fundamental principles and concepts

Users of financial information

The accounting process

Accounting conventions

The accounting equation

The business model

Assets and liabilities

Capital and revenue

Capital structure and gearing

Debt and equity

Key Financial Statements

The Income statement (Profit and Loss Account)

Balance sheet

Cash flow statement

Structure, layout and content

Underlying principles

Working Capital Management

What it is and why it is important?

Distinction between profit and cash flow

Cash flow forecasting

Nature and Analysis of Costs

Classification of costs

Fixed and variable costs

Contribution

Break-even analysis and the margin of safety

Budget Preparation and Control

The role of budgets in the planning process

Budget preparation

Assessing variances and flexing the budget

Interpretation of Financial Information

What does it all mean – making sense of accounting information?

Horizontal, vertical and trend analysis

Ratio analysis

Capital Investment Appraisal Techniques

Methodologies

The time value of money

Risk