Understanding Financial Reports for Non Finance Manager

Understanding Financial Reporting is crucial for Managers. Financial Report provides details information of the progress of the company business.

By understanding the business performance, it allows the manager to make a timely decision on new business strategy. Understanding ageing report will provide managers with information on company cash flow and also their debtors.

Lastly, getting to know the company expenses will ensure the company is on track.

The key is that, accounting gives them the clue that something may not be going according to plan, which plays an important role in business management.

This workshop is designed for every functional role across industries to get an insight into the nifty and gritty of financial number. Participants will learn the features and limitation of financial statement which has become the primary source of information for critical business decision. You will also develop business acumen and be able to apply the financial management knowledge to your workplace and participate effectively in management meeting.

1. LEARNING THE LANGUAGE: FINANCIAL JARGONS

• Definition and terms (assets, liabilities, classes of share capital, reserve)
• revenue recognition v cash accounting
• Capital expenditure v operating expenses

2. KEY ACCOUNTING CONCEPT

• Key financial statement and its structure
• using statement of financial position to examine assets and liabilities
• Analysing the income statement to assess revenue and expenses
• Statement of cash flow: cash flow derived from operating, investing and financing activities.
• Cash flow and its relationship with other financial statement

3. VARIOUS TECHNIQUES USED IN FINANCIAL ANALYSIS

• vertical analysis
• Horizontal analysis
• Ratio analysis

4. FINANCIAL RATIO ANALYSIS FOR BUSINESS PERFORMANCE MEASUREMENT

• Performance ratio
• Solvency ratio
• working capital ratio
• leverage ratio
• Investment ratio
• Limitation of ratio analysis

5. FUNDAMENTAL OF COST MANAGEMENT

• Overview of cost management and control
• Cost behaviour and classification
• Costing techniques and system

6. ABSORPTION COSTING

• The basic principles, allocation and apportionment of overhead
• Dealing with service cost centre, choosing an absorption base
• Dealing with under and over-absorption of overhead

7. MARGINAL COSTING FOR DECISION MAKING

• Concept of contribution
• break-even analysis
• targeted profit planning
• Application of marginal costing for product pricing
• Maximise contribution by proper resource allocation