Sharpening Financial and Costing Performance Analysis

16-17 Nov, 2023, Remote Online Training - Public

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Venue Details

Remote Online Training - Public


Contact us

FOR COURSE DETAILS

Juliany,

Office: 03 2283 6109

Mobile: +60 122281247

juliany@ipa.com.my

Phoebe,

Office: 03 2283 6100

Mobile: +60 193637822

phoebe@ipa.com.my

Bee Teng,

Office: 03 2282 6112

Mobile: +60 172566121

beeteng@ipa.com.my

FOR CUSTOMISED IN-HOUSE TRAINING

Jane,

Office: 03 2283 6101

Mobile: +60 129418251

jane@ipa.com.my

Keith,

Office: 03 2283 0000

Mobile: +60 162272735

keith@ipa.com.my

ADDRESS

A-28-5, 28th Floor, Menara UOA Bangsar,
No.5, Jalan Bangsar Utama 1,
59000 Kuala Lumpur

FOCUSING ON
  • Understand And Comprehend The Components In
    An Audited Financial Statements.
  • Analyze, Understand And Interpret The
    Financial Statement Using Trend And Ratios, And Its
    Indication On The Health Of The Organization.
  • Horizontal And Vertical Analysis
  • Investment / Capital Expenditure Evaluations
  • Market Analysis
  • Budget Fundamentals
  • Cost Fundamentals In Costing And Budgeting
  • Cost Accounting For Indirect Cost Or Overheads
  • Standard Costing
  • Budgetary Control And Variance Analysis
OVERVIEW

Accounting, Finance, Budgeting and Costing have always been recognized as very key functions in any organization and to all stakeholders.

Analyzing and Interpreting such information as reported in the financial statement generated from the Accounting System in comparison with your Budget or Standards can help managers to make a more informed and effective decisions to minimize the organization’s risk and increase their Financial Performance through more effective corrective actions. It will also inculcate Responsibility Accounting throughout the management team.

Hence knowing how to read, analyze, interpret and understand the various accounting & financial terms and language and its interpretation is inseparable from the day-to-day management of business operation.

AFTER ATTENDING THIS COURSE YOU WILL RETURN TO YOUR JOB…
  1. Illustrate understanding of the various financial terms used in the Financial Statements.
  2. Compute various Accounting & Cash Flow ratios and Budgetary & Cost Variances analysis.
  3. Calibrate the analyzed ratios and variances for investigations and taking of corrective actions.
  4. Report monthly follow up actions and its outcome to inculcate Responsibility Accounting culture.
WHO SHOULD ATTEND
  • Directors, CEO, COO, CFO
  • Financial Controllers and Accountants,
  • Consultants, Auditors and Company Secretaries,
  • Accounting and Costing Executives, Supervisors and Assistances
  • Any other personnel who are involved in the company’s Accounting, Budgeting and Costing matters or are interested in learning about Financial Ratio Analysis, Budgetary Control and Variance Analysis.
METHODOLOGY
  • Interactive lectures
  • Participative and active discussions
  • Hands on exercise and assignments, and
  • Free flow of questions and answers. 
Day 1
9:00

UNDERSTAND AND COMPREHEND THE COMPONENTS IN AN AUDITED FINANCIAL STATEMENTS.

  • Introduction:
    - What is a Financial Statement and what does it consist of?
    - Why and when is it prepared?
    - It is important to stakeholders and who are they?
  • Understanding its Quantitative Information in:
    - Statement of Comprehensive Income
    - The importance of Other Comprehensive Income
    - Financial Position statement (balance sheet)
    - Statement of Cash Flow
    - Statement of Change in Equity
    - Notes to Financial Statement
    - Basis of the preparation of the Financial Statement
    - Significant Accounting Policies
    - Applicable Accounting Standards
    - Supporting information to the Quantitative Financial Statement.
  • Understand its Qualitative Information of the Financial Statement
    - Directors Report
    - Directors Statement
    - Statutory Declaration
    - Independent Auditors Report of Different Type


10.45

ANALYZE, UNDERSTAND AND INTERPRET THE FINANCIAL STATEMENT USING TREND AND RATIOS, AND ITS INDICATION ON THE HEALTH OF THE ORGANIZATION. HORIZONTAL AND VERTICAL ANALYSIS INCLUDES

  • Trending
  • Profitability ratio
  • Dupont Analysis of ROE
  • Liquidity ratio
  • Over trading ratio and index.
  • Efficiencies ratios and indexes
  • Stability index
  • Other Comprehensive Income ratio
  • Key Cash Ratios 

 

1:00 Lunch
2:00

INVESTMENT / CAPITAL EXPENDITURE EVALUATIONS:

  • Present and Future value of money
  • DCF / NPV / Internal Rate of Return
  • Payback period

 

 

MARKET ANALYSIS

  • Earnings per share
  • PE Ratio and earnings multiples
  • Dividend payout ratio
  • Dividend yield.

 

5:00 End of Day 1
Day 2
9:00

BUDGET FUNDAMENTALS

  • Budget as a Standard and target
  • Framework and model of Budgeting
  • Assumptions development
  • Types of budgets and basis of budgeting

 


 

COST FUNDAMENTALS IN COSTING AND BUDGETING

  • Costing Basis and Costing Methods
  • Cost Classifications and the understanding of them.
    - Direct and Indirect Cost
    - Variable and Fixed Cost
    - Prime Cost, Conversion Cost and Landed Cost
    - Difference between direct, indirect and operating overheads
    - Product / Service Cost
  • Product / Service production valuation
    - Indirect Overhead apportionment concept.
    - Indirect Overhead absorption concept
    - Production, Operating and Abnormal Cost.

 

10.45

COST ACCOUNTING FOR INDIRECT COST OR OVERHEADS

  • Apportionment and Absorption method to products / Services
  • Basis of absorption
  • Treatment of over and under absorption cost in the accounts

 

1:00 Lunch
2:00

STANDARD COSTING 

  • What is Standard Costing?
  • Suitability of using Standard Costing System.
  • Setting of standards – basic, current, attainable, ideal.
  • Standard Cost and Hours
  • Abnormal loss of material and idle time.
  • Standard Costing in Service Industries

 

3:45

BUDGETARY CONTROL AND VARIANCE ANALYSIS

  • Sales Variance
    - Price Variance
    - Volume Variance
    - Price mix variance
    - Volume mix variance
  • Operating Expenditure Variance
    - Efficiencies Variance
  • Material Variance
    - Quantity variance
    - Price Variance
    - Mix variance
    - Yield variance
  • Labor Variance
    - Rate variance
    - Efficiencies variance
    - Idle time.
  • Direct Overhead Variance
    - Expenditure Variance
    - Efficiencies Variance
  • Indirect Overhead Variance
    - Efficiencies Variance
  • Disposing Of Variances
  • Causes Of Variances
  • Interdependency Of Variances
  • Responsibility Accounting

 

5:00 End of Course