Accounting and Finance for Managers

Balance sheet and P&L-account

• what are the main objectives and principles behind different regulatory frameworks (e.g. LuxGAAP, IFRS,)

• what are the different elements of an annual report?

• what kind of information can / cannot be found in a balance sheet and in a P&L account?

• how are assets and liabilities prized?

• what are possible conclusions which may be drawn from a balance sheet and P&L account?

Ratios and key performance indicators

• profit and result (e.g. EBIT, EBITDA, OCF)

• assets & liabilities

• solvency

• liquidity

• cash flow

• ROI, ROE, ROX

• productivity

Different levels of result

• profit and loss

• payments in and out

• costs and income

Cost Management

• optimizing cost ≠ minimizing costs at any prize

• which factors determine the framework for cost management?

• different types of costs and how to influence them

• where is the difference between costs and charges?

• • what do financial resources cost?

  • value adjustments: costs or charges?

  • economic risks: when to be considered?

Cost management as management tool

• how to set cost related objectives

• how to motivate staff

Cost centers

• why cost centers?

• how to define cost centers: some practical guidelines

Cost per unit

• overview of calculation methods

Budgeting

• external and internal factors to be respected

• different steps of budgeting

• how to determine amounts in the plan

• some financial ratios

• optimizing cost ≠ minimizing costs at any prize

• how to present and defend a budget plan (e.g. senior management, bank)

Case study