Professional Financial Manager

1.1. Nature of management accounting

• Definition of management accounting
• Fundamental differences between management and financial accounting
• Components of management accounting
• Essence of management accounting
• Objectives of management accounting
• Key users of management accounting
• Individuals responsible for establishing the management accounting system in an organization
• Tasks of management accounting
• Main components of the management accounting system in an organization
• Primary processes ensuring the formation and operation of the management accounting system
• Factors influencing the establishment of the management accounting system in organizations

1.2. Conceptual and methodological basis of finance reporting

• Definition of costs and methods of cost classification
• Cost categories: fixed, variable, average, marginal
• Other types of costs
• Models and methods of product costing

2.1 Cost management concept. Costing methods

• Segregation of costs into fixed and variable
• Costing of production costs

2.2. Cost-Volume-Profit analysis. Break-even point

• Essence of CVP analysis. Break-even analysis
• Companies with high fixed and variable costs

3.1. Managerial analysis: profit maximization methods. Managerial Income Statement format

• Income Statement for managerial decision-making. Possible options for constructing an Income Statement
• Algorithm for compiling an Income Statement for management accounting purposes

3.2. Analysis of sales structure and profitability of individual product types

• Sales analysis. ABC sales analysis
• XYZ sales analysis
• Analysis of sales profitability
• Factor analysis of sales profitability

4.1. Pricing

• Objectives of pricing
• Types of сosts
• Cost-based pricing methods
• Market-based pricing methods
• Conclusions on pricing methods
• Price elasticity of demand
• Parametric pricing methods

5.1. Budgeting, types of budgets, Master Budget

• Budget and types of budgets
• What is budgeting
• Factor analysis of cost by cost categories

5.2. Responsibility centers

• Essence of responsibility centers, their role, advantages, and disadvantages
• Financial responsibility centers and their key Indicators
• Cost center accounting

6.1. Financial control: financial performance indicators

• System of financial ratios
• Essence of responsibility centers, their role, advantages, and disadvantages
• Operational analysis indicators
• Operational cost indicators
• Efficiency indicators for asset management
• Liquidity indicators
• Profitability indicators
• Capital structure indicators
• Debt service indicators
• Market Indicators

6.2. Financial control tools: flexible budget and transfer pricing

• Flexible budgets and control
• Transfer pricing
• Essence, necessity, and objectives of transfer pricing
• Factors influencing the establishment of transfer prices
• Mechanism of transfer pricing based on market price
• Pricing based on market prices
• Types of pricing based on full and marginal costs
• Other types of transfer pricing

7.1. Segment reporting

• Role of segment reporting with a real example
• Procedure for forming segment management reporting

7.2. Management control: non-financial performance indicators

• Internal non-financial indicators
• External non-financial indicators
• Interconnection of financial and non-financial indicators

8.1. Development of management control system: Balanced Scorecard

• Objectives of developing the Balanced Scorecard (BSC)
• Components of the Balanced Scorecard
• Typical project for developing the Balanced Scorecard
• Utilizing financial analysis within the Balanced Scorecard framework

Module 9 represents an equivalent of the upcoming online exam:

• It includes a test (20 questions, 2 points each, maximum score - 40 points, automatically checked and assessed).
• And assignments (4 tasks, maximum total score - 60, evaluated by the instructor).
• Just like in the exam, the goal is to achieve a total of 60 points out of 100 for both the test and assignments.

1.1. The essence of finance and the financial management system in an enterprise

• Content and purpose of enterprise finance
• Composition of financial resources of enterprises:
• Financial management as the art of managing enterprise finances
• Principles of organizing financial management
• Financial management system in an enterprise
• Functions of a financial manager

1.2. Analysis of financial statements – the basis for making financial decisions

• Composition of financial statements. Goals and main directions of financial analysis. Methods of financial analysis
• Analysis of trends and vertical analysis
• Features of financial ratio analysis
• Analysis based on the DuPont model

2.1 Budgeting

• The planning process in an enterprise
• Budgeting system
• Strategic, tactical, and operational planning

2.2. Intangible assets and asset impairment

• Forecasting. Key stages of forecasting
• Basic forecasting methods
• Sales forecasting

2.3. Financial reporting forecasting

• Forecasting financial statements
• Factors influencing the need for external financing
• Forecasting financial needs in the presence of fluctuating financial indicators for the company

3.1. Management analysis: profit maximization methods

• Cost structure analysis
• Analytical profit and loss statement with emphasis on marginal profit
• Break-even analysis of the enterprise
• Operating leverage effect
• Choosing the optimal product mix structure

4.1. Sources of business financing

• Internal and external sources of financing for organizational activities, factors of financial equilibrium. Concept, structure, and purpose of financial markets
• Financial institutions, their purpose, and tasks
• Types of short-term credits. Conditions of trade credit
• Minimizing the cost of short-term credit
• Securities as a tool for attracting financial resources
• Types of securities
• Methods of securities valuation
• Evaluation of bonds
• Evaluation of stocks

5.1. Working capital management

• Definitions, significance, and characteristics of working capital management. Operational and financial cycles
• Inventory management
• Accounts receivable management
• Cash management
• Working capital financing policy

6.1. Long-term financial decisions

• Definition of investments, types of investments. Nature of investment decisions. Time value of money concept. Annuities. Future and present value of annuity
• Methods of investment appraisal
• Consideration of inflation, taxation, risks, and uncertainty

7.1. Risk and return: basic concepts

• Interest rate risk and currency risk. Methods and tools for risk management
• Methods of financial risk neutralization
• Insurance, hedging, diversification

7.2. Cost of capital and capital structure decisions

• Cost of capital. Weighted average cost of capital
• Factors influencing the capital structure
• Corporate capital structure policy and the impact of capital structure on enterprise value
• Dividend policy
• Types of dividend policies
• Factors influencing the choice of dividend policy
• Dividend policy and stock price regulation

• Concept of value and types of value. Creating value for shareholders. Methods for determining the value of an ongoing enterprise
• Cost approach valuation
• Income approach valuation
• Comparable sales approach
• Managing business through Shareholder Value Analysis (SVA)
• Economic Value Added (EVA). Comparing EVA and SVA

Module 9 represents an equivalent of the upcoming online exam:

• It includes a test (20 questions, 2 points each, maximum score - 40 points, automatically checked and assessed).
• And assignments (4 tasks, maximum total score - 60, evaluated by the instructor).
• Just like in the exam, the goal is to achieve a total of 60 points out of 100 for both the test and assignments.