Municipalities Financial & Administrative Performance Supervising Systems & Governance

Course Code: PJ11

►Course Objective

 

  • Read and understand their organisation’s Annual Financial Report
  • Evaluate their firm’s financial performance
  • Understand and use analytical tools and techniques in practical case-study situations
  • Use analytical techniques to project future performance
  • Make critical judgements of accounting policies when evaluating company performance
  • Appreciate the importance of new investments in maintaining growth and competitiveness
  • Improve their management skills and increase their value to the organization

 

►Target Audience

 

  • managers
  • senior buyers
  • project managers, civil engineers
  • construction managers
  • contractors, sub-contractors
  • site engineers, senior management

 

►Course Outline

 

DAY 1

Introduction to Advanced Financial Analysis

  • Who are the users of financial data?
  • What types of financial information are available to each user group?
  • The published Annual Financial Report (AFR) – what is its purpose?
  • The structure and contents of an AFR – comparison of UAE, UK, and US versions
  • The non-financial elements of the AFR – how important are these?
  • Understanding the three main financial statements: Income Statement, Balance Sheet, Cashflow Statement
  • Comparison of different formats for the financial statements
  • Identifying the important numbers from the financial statements
  • Case study to show how the Income Statement, Balance Sheet, and Cashflow Statement are inter-linked and inter-dependant

DAY 2

Understanding and Analysing the AFR

  • Why do we need to analyse the AFR?
  • Using common-size analysis to improve comparability
  • Calculating trends and growth patterns
  • Using Ratio Analysis to assess five key aspects of company performance:
  • Profitability
  • Liquidity
  • Efficiency and Working Capital Management
  • Financing Structure and Risk
  • Investment Performance and Potential
  • Case Study on analysis and interpretation of company performance

DAY 3

Analytical Tools and How to Analyse the Cash flow Statement

  • Introduction to Excel tools for analysing financial statements
  • Setting up spreadsheets for common-sizing and ratio analysis
  • Using statistical tools mean, standard deviation, regression analysis
  • Using graphical representation
  • How to access data and analysis from Bloomberg and Yahoo! Finance
  • Why do we need the Cash flow Statement?
  • Key ratios we can calculate from the Cash flow Statement
  • How to use current cash flow information to forecast future revenues and profits

DAY 4

Financing the Business and Valuing the Business

  • Analysing the Balance Sheet to identify debt and equity, short-term and long-term finance
  • Measuring the company’s capital structure, and estimating the costs of capital:
  • Cost of Equity (Ke), using DVM and CAPM
  • Cost of Debt (Kd)
  • Weighted Average Cost of Capital (Ko)
  • Case study on Cost of Capital calculation
  • Why do we need to value a business?
  • Business valuation models:
  • Net Asset value – balance sheet, replacement cost, or realisable value
  • Price/Earnings ratio value
  • Dividend growth value
  • Present value of future free cash flows
  • Case study on valuing a business

DAY 5

Identifying Creative Accounting and Forecasting Future Failure

  • What is creative accounting?
  • Who benefits from creative accounting?
  • How does creative accounting work? – some illustrative examples
  • Creative accounting scandals – Enron, Worldcom, Parmalat
  • The symptoms of financial distress – financial and non-financial factors
  • Using ratio analysis to identify financial distress or predict future failure
  • Forecasting future failure using ratio combinations – the Altman Z-score model
  • Case study on forecasting future failure


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Date & Location

Date : 03 March 2019

Duration : 5 days

Place : Kuala Lumpur

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Date : 25 August 2019

Duration : 5 days

Place : Jakarta

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