Corporate Finance and Accounting Overview

Introduction:

The Corporate Finance and Accounting Overview course delves into the essential aspects of corporate finance and its impact on management functions. Participants will gain insight into how different roles within a firm interact with the finance function and understand core principles in corporate finance. The course emphasizes the efficient allocation of resources to benefit all stakeholders and explores relevant financial concepts and tools. This foundational knowledge will enhance decision-making and budgeting skills, crucial for those pursuing a corporate finance.

Objectives:

After completing the Corporate Finance and Accounting Overview course, participants will be able to:

• Analyze financial reports to increase their influence within the organization.
• Utilize financial information to make more informed decisions.
• Optimize the use of available resources.
• Prepare budgets with a higher likelihood of approval.
• Conduct variance analysis with efficiency and accuracy.
• Manage working capital effectively.
• Integrate corporate finance concepts with accounting practices.
• Perform detailed analyses of financial statements.
• Make strategic capital budgeting decisions.
• Use operating capital more judiciously.

Training Methodology:

• Interactive Workshops
• Simulation Exercises
• Financial Modeling
• Role Playing
• Best Practice Reviews
• Benchmarking Analysis

Course Outline:

Unit 1: Introduction to Corporate Finance Basics

• Defining accounting and finance
• Differences between finance and accounting
• Financial vs. management accounting
• Impact of individuals on financial data
• Planning, forecasting, and budgeting skills

Unit 2: Corporate Finance Analytics and Financial Statements

• Understanding the balance sheet
• Income statement analysis
• Cash flow statement
• Non-cash charges: depreciation, amortization, and depletion
• Book value vs. market value
• Expectations from shareholders

Unit 3: Corporate Budgeting and Working Capital Management

• Defining Working Capital (WC) and its components
• Managing cash, accounts receivables, stock, and payables
• Determining optimal working capital levels
• Ratio analysis and its implications
• Credit policies and collection procedures

Unit 4: Capital Structure and Financing

• Definition and significance of capital structure
• Equity capital and its implications
• Debt capital and its impact on returns
• Weighted Average Cost of Capital (WACC) and its calculation
• Understanding leverage: operational, financial, and combined

Unit 5: Capital Budgeting and Investment Decisions

• Evaluating capital projects and investments
• Projecting cash flows over project timelines
• Techniques: Net Present Value (NPV), Internal Rate of Return (IRR)
• Project Requirement Index (PI) and Modified Internal Rate of Return (MIRR)
• Establishing approval criteria and review processes