FINANCE & MANAGEMENT ACCOUNTING FOR ENGINEERS
23rd - 24th September 1996
Edward Owen spent a number of years in senior management serving variously
as financial controller, financial director and general manager with
substantial European and American organisations in chemicals, engineering
and electronics. His specialisation was the design and installation of
computer based management accounting systems for production, engineering
and selling activities.
He is an accomplished speaker and management trainer who brings a wealth of
experience and current knowledge to his seminars which have been attended
by over 4,000 delegates. He is a visiting lecturer and examiner at the
University of Surrey.
WHO WILL BENEFIT FROM THIS COURSE?
- Engineers seeking improved systems of financial reporting and cost
measurement.
- Engineers seeking to achieve a higher take-up rate for new
project proposals
- Engineers who are preparing themselves for F & AccnrGeneral
Management
- Newly appointed Engineering Managers.
- Engineers seeking to make their roles more business effective.
WHAT WILL BE LEARNED?
- The basic concepts of business accounting.
- How to demystify - read and understand the balance sheet, the
profit and loss and cash flow statements.
- How to calculate and use key ratios to analyse, interpret and
appraise business performance.
- How to use key ratios to "engineer" and finalise business plans .
- How to evaluate capital projects for profitability and cash flow.
- How to evaluate the benefits of completed projects.
- How to apply a profit centre concept to measure and control
maintenance activities.
- How to measure cost performance in terms of activity efficiency and
prices.
- How to establish valid financial yardsticks for out-sourcing decisions.
- How to establish win-win relationships with accountants.
FEES
PRICE per person which includes coffee, lunch, tea and printed course notes:
- £450 * standard rate
- £425 * if payment received
before 23rd August 1996
PROVISIONAL PROGRAMME
Day One
FINANCIAL ACCOUNTING - The Key Financial Statements
- The Balance Sheet
- Definitions of fixed, current and intangible assets. Current and future
liabilities, capital funds and reserves. Clarification of working capital
equity capital, total assets and net assets employed. Deferred Revenue -
goodwill - asset revaluations.
- The Profit & Loss Statement
- Revenue income versus revenue expenditure. Definition of gross and net
profit, attributable earnings, dividend cover.
- The Cash Flow Statement
- Linkage between the Balance Sheet and the Profit & Loss Statement
Definitions of cash flow, liquidity and solvency. Financial Reporting
Exposure Draft 10 and Financial Reporting Statement 1 by the Accounting
Standards Board.
- Illustrative Model
- Each participant is provided with skeletal formats to record a series of
every day business transactions in order to understand how each business
transaction impacts upon:-
- The Balance Sheet
- The Profit & Loss Statement
- The Cash Flow Statement
- Analysis & Interpretation
- Each participant is provided with a model balance sheet, profit & loss
statement and cash flow to calculate key financial ratios to measure profit
performance, asset management and cash flow. Explanations on how to use the
ratios to plan a more successful business future.
- Capital Investment/Project Appraisal
-
- Factors that influence the choice of discount rate
- How to evaluate using the DCF method.
- How to calculate the DCF or NPV cash flow rate of return.
- How to evaluate completed projects.
Day Two
MANAGEMENT ACCOUNTING & COST CONTROL
- Business Planning and Financial Control
- Explanation of "Management Accounting" and its importance to management
control of business activities. The cost organisation structure -
definitions of budget centres and cost centres - the key budget and the
timetable - the concept of "Profit Engineering" and how managers take part
- expense nomenclature and coding - the use of budget detail fact sheets.
- Budgetary Cost Control - An Illustrative Model
- Each participant is provided with skeletal formats to record a 16 step
process in which spending levels are budgeted.
- Profit Centre Accounting for Engineering Activities
- Profit Centre Accounting brings sharply into focus the reality that
engineering departments are internal market providers. The concept
establishes the need for engineers to provide value for money services for
which the beneficiaries (internal customers) of those services are actually
responsible. This session explains the full concept with models to
illustrate ACTIVITY ANALYSIS - ACTIVITY COST UNITS - REACTIVE AND PROACTIVE
COST RATES - EVALUATION OF SALEABLE OUTPUTS - COST PERFORMANCE ANALYSIS.
Registration
To Register please contact:
Patricia Yehia
Tel: 01483 259837 Fax: 01483 34139
e-mail: P.Yehia@ee.surrey.ac.uk
Small Print
The University reserves the right to cancel any course on the grounds of
insufficient numbers or other reasons outside our control. In the event of
cancellation by the University, a full refund will be given.
In the event of cancellation by a delegate, a refund of 75% will be given
provided written notice is received two weeks prior to the event. If less than
this notice is received, a refund of 50% will be given.
P.Yehia@ee.surrey.ac.uk
Last Update: 18 June 1996