The course covers:
- Contents of accounts
- The profit and loss account and balance sheet
- Ratio analysis
- Cash flow analysis
- IFRS, IAS and the IASB
- The time value of money
- Project analysis
- The cost of capital
- Business valuation
- Presenting financial information
Who should attend:
- The course is ideal for those persons seeking a proper grounding in the fundamentals of finance and accounting, including:
- Non-financial managers from backgrounds such as design, production, engineering, sales, marketing, legal, IT and HR
- Entrepreneurs and consultants
- Financial services managers seeking the basics of finance and accounting
- Other non-financial specialists who wish to know more about finance and accounting
Course background
Finance for non-financial managers is an intensive five-day course presented by chartered accountant Timothy Jury F. C. A. It is designed to provide nonfinancial managers and others with the knowledge and confidence required to comprehend and participate in financial decision-making and analysis. The course is in the style of a series of presentations interspersed with case study material. Delegates are required to carry out a fair amount of financial manipulation and are introduced to spreadsheets with a number of cases.
The case studies are designed to enable the delegate to take ownership of the knowledge offered by applying it to a case immediately after the relevant presentation. This is further reinforced by the completion of group cases towards the end of the course. The course is ideal for managers and others who are not financially trained, but who need to be familiar with the overall concepts and language used in corporate financial management, financial analysis, credit transactions and other corporate finance activities.
Delegates should have with them a simple calculator for use in financial analysis cases (a specialist financial calculator is not necessary). A portable computer with spreadsheet software is preferable for completing a number of cases. Whilst the course is not explicitly designed as a spreadsheet software training course delegates less familiar with spreadsheets should be able to develop their spreadsheet knowledge from the case study material offered in the course.
Delegates are encouraged to ask questions and develop their knowledge by enquiry. The presentation style is intensive, inclusive and informal. In the pre-course period delegates are expected to read from cover to cover a complete set of published statutory accounts.
Day 1
Dealing with the fundamentals
Introduction to financial analysis
- Differences in UK/US accounting terminology
- Identifying the relationship between cash flow and profit
- Development of an integrated cash flow model
- Recognising it’s all about cash
- Understanding the relationships between the three main accounting statements.
Exercise 1 - Accounting terminology exercise
Fundamentals of accounting statements the profit & loss account
- How the P&L has changed over the last 25 years
- Detailed review of the Profit and Loss Account including explanation of all significant accounting terminology.
- Profit types - trading, asset and business
- Inventory, Depreciation, Capitalised interest,
- Minority interests and consolidation
- Exceptional and material items
Fundamentals of accounting statements the balance sheet
- Detailed review of the Balance Sheet including explanation of all significant accounting terminology
- Understanding the fixed assets note,
- Accounting goodwill – what is it?
- Liabilities, pension fund accounting
- Debt and other liabilities like debt
- Deferred tax, contingent liabilities
Financial analysis techniques – ratio analysis
- Objectives of ratio analysis
- Developing ratio analysis skills
- Different types of ratios
- How much information is there in ratios?
- Ratio rules – avoiding errors of principle
Case study – Use of ratios
Delegates match ratios to different types of businesses.
Delegates consider what ratios do and don’t tell us.
Day 2
Cash flow analysis and accounting issues
Understanding cash flows
- Detailed review of the Cash Flow Statement
- Analysing and interpreting cash flows
- Summarising cash flows for analysis
Case study - Summarising cash flows
Delegates summarise cash flows for analysis purposes
Cash flow analysis
- The four phases in the life of a business
Case study - Examining patterns of cash flows Delegates match cash flows to sectors
Cash flow analysis - taking it further
- Dealing with the consequences of growth and no-growth.
Case study - Growth & no-growth cash flows Delegates restate cash flows to improve their understanding of performance
Accounting abuses and update
- Abuses of Fair Accounting
- Basic abuses relevant to all businesses
- More complex abuses relevant to larger groups
Case study - major Travel group
Delegates examine and evaluate the P&L of this major UK based travel group
Global accounting in the new century
- Overview of the International Accounting Standards Board
- The implications of the IAS Initiative
- Review of new standards produced in the last five years
Day 3
Financial mathematics and project analysis
The time value of money
- Present & future values
- Defining the discount factor
Exercises. Discounting calculations
Net present value – developing the concept
- NPV’s & varying future cash flows
- Perpetuities & Annuities
Exercises. Annuities and perpetuities
Project analysis
- Introduction to project analysis
- Developing a forecast of the project cash flows
- Identifying the key risk areas
Evaluating capital investment projects
- Discounted cash flow techniques
- Calculating the internal rate of return
Case study - Speculative housing project
Delegates perform investment appraisals to decide whether to proceed with a capital investment
Case study - Project analysis
Delegates create a summary of the project cash flows & Identify the principal project risks
Case study - Eight Projects
Delegates evaluate a number of projects and decide which projects should be pursued and which rejected.
Management information
- Budgeting
- Monthly reporting
- Costing
- Forecasting
- Planning
Credit analysis - the basic concepts
- Introducing credit analysis frameworks
- Financial analysis - review of the issues
- Non-financial analysis – Developing a framework
Day 4
Cost of capital and valuation
The cost of capital and the underlying corporate finance theory
- The cost of debt
- The capital asset pricing model
- The tax subsidy effect
- The cost of equity
- Portfolio theory
- The Equity Risk premium
- Completing the WACC
- Mogdiliani Miller and the theory of leverage
Funding structures
- The relationship between business risk & financial risk
- The four phases of the corporate life-cycle
- Identifying appropriate funding structures
- Recognising the drivers of funding strategies
Cash flow valuation
- Preparing the forecast
- Identifying the free cash flows
- Competing the valuation
Case study - Beautific
Other valuation methods
- Earnings based valuation
- Dividend discounting
- Asset valuation
Case study - Valuation methods - Magnificence
Delegates use a variety of methods to value a business
Funding structures
- The relationship between business risk & financial risk
- The four phases of the corporate life-cycle
- Identifying appropriate funding structures
- Recognising the drivers of funding strategies
Day 5
Case studies and presentation skills
Case study - Business analysis
Delegates analyse a business using the methods presented earlier in the course
Case study - Business valuation
Delegates value a business using the methods presented earlier in the course.
Case study - Financial presentation
In small groups delegates prepare and present a slide based presentation of the salient features gained from the analysis case in session one using spreadsheets and graphical techniques
-
Timothy D H Jury
Timothy Jury is a chartered accountant, who qualified with KPMG. He has held main board financial and general management directorships in both quoted and private companies. He has considerable experience of management in turnaround situations and has completed a number of acquisitions, disposals and corporate reorganisations.
Having joined Piccadilly Radio plc, the UK’s second largest independent radio station, he handled all aspects of a Class 1 acquisition and was a main board director during the period of a contested bid for Piccadilly from Miss World plc. Following a corporate recovery assignment he joined a major UK consultancy specialising in training for financial services businesses. He spent over two years developing and presenting corporate credit training for a number of large UK banks. After a further corporate recovery assignment in the textiles industry he became a full time training and strategy consultant offering courses covering all aspects of corporate lending, financial analysis, especially cash flow analysis, accounting, valuation, corporate finance, M&A, strategy and management.
Timothy combines his lecturing career with consultancy assignments in the areas of strategy development, valuation modelling and corporate finance. In house training initiatives have been completed for both the credit and legal functions of Siemens Financial Services – Munich. Other in-house work has been completed for clients such as, Standard Chartered Bank - India, Societe Generale – London, the Brunei Investment Authority – Brunei, Ernst & Young - New York and Paris, and others. He has been involved in graduate and MBA training for London based investment banks such as Deutsche Bank and Barclays Capital. He was responsible for providing financial training for the London office of a substantial American law firm for many years.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
This course has now expired please email us to find out when the course will next be running.