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Financial Modelling

Учебный год
Обучение ведется на английском языке
Курс обязательный
Когда читается:
1-й курс, 2, 3 модуль


Фролова Ольга Валентиновна

Course Syllabus


The course is aimed at studying financial modelling in the company at an advanced level. Students will be able to develop the skills of financial analysis, forming financial plans for assessing corporate value and developing a strategy. The course is conducted in a blended format: students listen to introductory lectures on the Coursera platform (“Core Concepts of Accounting - Numbers and People” course), which gives them a basis for understanding the main part of the course. In addition, a series of master classes by practitioners will be provided.
Learning Objectives

Learning Objectives

  • The course is aimed at the formation of practical skills for building a financial model of a company. As a result, students are able to develop financial models and build financial statements. Also, the course develops decision-making skills in the field of financial management of a company.
Expected Learning Outcomes

Expected Learning Outcomes

  • 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
  • Know, how to use financial model as the basis of value estimations and strategy development
  • Able to take into account industrial specific in financial model
  • Know advantages and disadvantages of existing IT decisions for financial planning
Course Contents

Course Contents

  • Core Concepts of Accounting
    Financial 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 modelling
    The 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 logic
    Modeling 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 activities
    Good 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 company
    Key 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 financing
    Formation 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 modeling
    Reflection 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
  • Information technologies for financial forecasting
    Classification of information systems and software products for financial modeling. The principles of choosing the optimal product for a specific task. Using standard approaches and creating a product "for yourself", the pros and cons of the choice. Using spreadsheets.
Assessment Elements

Assessment Elements

  • non-blocking Mid-term test
  • non-blocking Self-study
    The implementation of practical tasks on the online platform
  • non-blocking Workshops
  • non-blocking Exam
    Экзамен проводится очно в письменном виде
Interim Assessment

Interim Assessment

  • Interim assessment (3 module)
    0.4 * Exam + 0.2 * Mid-term test + 0.2 * Self-study + 0.2 * Workshops


Recommended Core Bibliography

  • 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

Recommended Additional Bibliography

  • 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