Finance For Non-Financial Managers
Training Outline
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• Accounting Equation: Assets = Liabilities + Equity
• Debits and Credits
• Assets – its true corporate meaning ( + = debit, – = credit)
o Depreciable fixed tangible assets
o Intangible assets and goodwill
o Financial assets
o Deferred tax assets
o Prepayments
o Inventory
o Receivables
o Cash
• Liabilities – getting it right, corporate finance wise ( – = debit, + = credit)
o Loans
o Provisions
o Employee benefit obligations
o Payables
o Tax liabilities
o Other liabilities
• Equity
o Share capital
o Share premium
o Retained Earnings, cumulative Net Profit (Revenue – Expenses, cumm)
Revenue ( – = debit, + = credit)
Expenses ( + = debit, – = credit)
o Reserves ( – = debit, + = credit)
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• Chart of Accounts (what to debit and what to credit)
o Assets
o Liabilities
o Shareholder’s equity
o Revenues
o Expenses
o Gains
o Losses
• General Ledger (GL)
• Cost Centres
• Accrual based accounting
o Depreciation
o Amortization
o Interest Expense
o Prepayments
o Prepaid/Unearned/Deferred Revenue
o Tax Computation – accounting tax vs government tax
• Trial Balance – adjusted/accrual based
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• Income Statement (Statement of Profit or Loss)
o Functional and practical interpretation
o Income Statement ratios for company financial health analysis
• Balance Sheet (Statement of Financial Position)
o Functional and practical interpretation
o Balance Sheet ratios for company financial health analysis
o Company Efficiency
o Working Capital Management
• Cashflow Statement (Statement of Cashflow)
o Functional and practical interpretation
o Cashflow Management
o Free Cashflow
• Investment Decisions
• Financial Planning
