Advanced Financial Planning
- The course is aimed at the formation of practical skills for assessing the financial needs of a company. As a result, students are able to form short-term and long-term financial policy and build financial statements. Also, the course develops decision-making skills in the field of financial management of a company.
- Know the structure of accounting statements.
- know main purposes and principles of financial planning
- Know main pronciples of building financial models
- Forecast revenues and costs
- Model balance sheet, cash flow statement and profit and loss account
- Analyze efficiency, solvency, financial stability based on the financial model
- Core Concepts of AccountingFinancial Accounting – Basic Principles. Transaction Analysis. Income Recognition. Accounting for Current Assets. Operational Assets. Depreciation. Short-Term Investments. Long-Term Liabilities. Shareholders’ Equity. Some Tax Issues. The Statement of Cash Flows. Analysis and Use of Financial Statements. Financial Accounting and Project Valuation. Managerial Accounting – Core Ideas. Cost Behavior. Direct and Indirect Costs. Indirect Cost Allocation. Activity-Based Costing (ABC). Relevant Costs. Budgets and Responsibility Accounting. Accounting and Valuation.
- Introduction into financial modellingThe concept of financial modeling and types of financial modeling. Forecasting and modeling. Accounting, managerial accounting, capital budgeting and financial model. "Philosophy of budgeting" and the system of goals: connections and mutual influence of goals, objectives and indicators. Examples and types of models - different approaches to classification. Factors that determine the growth of the importance of financial modeling, objectives and applications.
- General principles and model logicModeling components. Drivers and metrics. The principles of building a financial model: aggregation and integration, sequence of construction, simplicity and flexibility, consistency of construction. Blocks of the financial model, isolation and interconnection of blocks. Limitations and assumptions when building a financial model. Sources of information for building a financial model.
- Forecasting operational activitiesGood operational activities model as the basis for the financial model. Classification of income and costs and their ranking according to the degree of significance for modeling. Scenario analysis in the modeling of operating activities and the construction of financial models (simulation). Justification of constraints and assumptions.
- Modeling cash flows, financial condition, financial results of the companyKey business parameters in the forecast set: Balance sheet, profit and loss account, cash flow statement. Modeling of individual components: capital expenditures and depreciation, working capital and features of its modeling in Russian companies, taxes, transferring data for years and quarters. Formation of the analytical block of the system model and its specificity depending on information consumers (investors, credit managers, financial analysts (directors), business owners, etc.).
- Building a financial model for project financingFormation of the analytical block of the project model, its specificity depending on the information users. Techniques for analyzing efficiency, solvency, financial stability to various external and internal factors. Development and comparison of alternative investment options, calculation of integral indicators of investment efficiency and preparation of recommendations for their application. The financial model of a company as a basis for developing its strategy and evaluating its value.
- Accounting for industry specific features in financial modelingReflection of industrial specifics in the process of financial planning, forecasting and modeling, the main factors of influence: technology and technological processes, industry economics, sectoral legislation, peculiarities of taxation
- Coursera test
- Simulation 1
- Simulation 2
- Midterm test
- ExamFinal student assessment (exam) is an individual written test with open-ended and closed-ended questions. Exam covers all topics of the course.
- Interim assessment (2 module)0.1 * Coursera test + 0.2 * Exam + 0.2 * Midterm test + 0.1 * Simulation 1 + 0.2 * Simulation 2 + 0.2 * Workshops
- Damodaran, A. (2012). Investment Valuation : Tools and Techniques for Determining the Value of Any Asset (Vol. 3rd ed). Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=442924
- Preve, L. A., & Sarria-Allende, V. (2010). Working Capital Management. New York: Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=316679
- Samonas, M. (2015). Financial Forecasting, Analysis, and Modelling : A Framework for Long-Term Forecasting. Chichester, West Sussex, United Kingdom: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=941247
- Fridson, M. S., Alvarez, F., & FinancePro. (2011). Financial Statement Analysis : A Practitioner’s Guide (Vol. 4th ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=517757
- King, A. M. (2006). Fair Value for Financial Reporting : Meeting the New FASB Requirements. Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=159616
- Mard, M. J., Hyden, S. D., & Hitchner, J. R. (2007). Valuation for Financial Reporting : Fair Value Measurements and Reporting, Intangible Assets, Goodwill and Impairment (Vol. 2nd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=218516
- Nugus, S. (2009). Financial Planning Using Excel : Forecasting, Planning and Budgeting Techniques (Vol. 2nd ed). Amsterdam: CIMA Publishing. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=249350