I. Finance and Financial Reporting

• Finance definition. Financial decisions. Divorce of ownership  from control. Financier’s role in a company.
• Financial system definition. Financial flow. Financial markets. Financial mediators. Finance market rates.
• Financial reporting. Finance reporting functions. General information on financial reporting. Balance sheet. Difference between balance sheet value and market value.
• Income statement. Accounting and economic profit criteria.
• Cash flow statement. Cash flow analysis.

II. Financial Analysis and Financial Planning

• Financial analysis using  ratios. Ratio calculation. Liquidity ratio.
• Working capital & resources management ratios.
• Financial stability ratio.
• Profit ratio.
• Reporting interpretation, examples
• Correlation between financial ratios. Financial leverage effect.
• Financial planning. Financial planning model. Sales percentage method. External financing needs.
• Structure of assets and liabilities. Working capital management. Compromise between profitability and liquidity.

III. Investment Projects. Planning and Analysis.

• Value of money in time. Cash flow discount.
• Essentials of investment projects. Major types of investment projects. Budgeting of  capital investments.
• Investment project analysis. Project evaluation criteria. Payback period. Accounting Rate of Return (ARR). Net Present Value (NPV). Index of Profit (IP). Internal Rate of Return (IRR).        
• Selection of projects. Ranking of projects. Selecting several projects under limited resources. Contradiction between NPV and IRR.
• Cash flow forecasting when taking in account inflation.
• Influence of income tax.