Advanced Financial Accounting System

Advanced Financial Accounting System

OBJECTIVES:

1. Ensures that recommendations from Internal, External customers and Auditors are properly implemented.
2. Manages and supervises the activities of the assigned personnel in the customer accounting section.
3. Exercises financial authorities at the level established by the management.
4. Monitors the preparation of annual budget forecast, business plan and financial statement with respect to bad & doubtful debts and cash balances.
5. Evaluates, quantifies and assesses the financial accounting systems to ensure they are adequate and in accordance with generally accepted accounting principles.

COURSE Outline:

Financial Accounting

An understanding of financial accounting and financial statements provides some basic idea about the way in which business organizations' function.  Different sources of risk and their impact on business can be best explained in a non-technical manner through analysis of financial statements. This section aims to familiarize the participants with the mechanics of preparation and presentation of financial statements and to acquire in-depth knowledge and skill in analyzing financial statements. This section covers the following topics:

• Fundamental principles of accounting
• Double-entry book-keeping
• Preparation of Financial Statements
• Financial statement analysis

Statistics for Finance

Several concepts of statistics are extensively used in measuring financial risk.  This section on statistics is aimed to provide a strong foundation on statistics and statistical models. This section will primarily focus on statistics relevant for application in finance and financial risk management. This section covers the following topics:

• Measures of central tendency and dispersion
• Probability distribution
• Sampling and sampling distribution
• Testing of hypothesis and goodness of fit
• Regression and other multivariate analysis
• Time Series Analysis and Forecasting

Financial Time Series Analysis

This provides a comprehensive input to financial econometric models and their application to modeling and prediction of financial time series data.  The course covers analysis and application of univariate financial time series, the return series of multiple assets and Bayesian inference in finance methods.

• Financial time series and their characteristics
• Linear and Nonlinear time series analysis and its applications
• Conditional heteroscedastic models
• Continuous time models and their application
• Extreme values
• Multivariate time series analysis & Multivariate volatility models
• Markov Chain Monte Carlo methods

Asset Pricing Models

Asset pricing lies at the heart of financial economics, being not only the foundation of every other field in this subject area but also having prime relevance for practical decision-making. This section provides fundamental ideas that underlie competitive financial asset pricing models with symmetric information.  This section covers the following topics.

• Finance Theory and Asset Pricing Models
• General Asset Pricing in Complete and Incomplete Asset Markets.

Portfolio Theory and Management

A simple but most effective way of managing risk is holding diversified portfolio of assets. This section focus on how risk and return of portfolio of assets differ from individual assets and different ways in which portfolio of assets are selected, measured and managed. This section covers the following topics.

• Mean-Variance Portfolio Theory
• Opportunity Set, Efficient Portfolios and Efficient Frontier
• Portfolio selection process
• Single index and multi index models
• Optimum portfolio selection models
• Active vs. passive portfolio management
• Portfolio evaluation methods.

Investment Banking

This offers an understanding of the various facets of investment banking and advisory services so as to enable the participants to connect to the business and activity profile of investment banks.

• Regulations and process relating to raising of funds
• Valuation, mergers and acquisition advisory services
• Capital restructuring
• Underwriting
• Asset management services

Mathematics of Finance

In pricing of several risk management products, mathematics is extensively used. This section covers important mathematical topics related to derivative pricing. Many of the inputs of this section are used in subsequent courses.

• Arbitrage Theorem
• Calculus in Deterministic and Stochastic Environment
• Probability Theory
• Martingales and Martingales Representation
• Integration in Stochastic Environment
• Dynamics of Derivative Prices
• The Black-Scholes PDE
• Pricing of Derivatives and Derivative Products

Financial Modeling

Aims to develop tools and techniques to implement and analyze the core models of modern finance, as applied in asset pricing, portfolio selection and risk management. Financial models will be implemented in Excel, supplemented where appropriate by Visual Basic for Applications (VBA). This section will enhance understanding of the theory and provide relevant tools for practitioners.

• Introduction to Financial Modeling
• Computing Tools used in Modeling
• Modeling Applications in Equity & Portfolio
• Modeling Applications in Derivatives
• Modeling Applications in Fixed Income

Credit Risk Management

The phenomenal growth of the credit markets has led several new instruments for managing credit risk. This section covers tools and techniques in measuring and managing credit risk and loan pricing and structuring. Topics covered in this section are as follows:

• Credit analysis
• Asset-based lending
• Credit Rating Agencies
• Credit risk models
• Testing and implementing credit risk models
• Default rates, losses, recoveries
• Credit Derivatives
• Bad and doubtful debts

Behavioral Finance

This is to introduce the investor or trader to the concepts of behavioral finance and to be aware of such emotional or cognitive pitfalls when making investments. It gives a description and explanation of several underlying behavioral concepts like loss aversion, availability bias and anchoring. This section covers the following topics

• Efficient Markets Review
• Motivating Evidence and Financial Market Anomalies
• Limits to Arbitrage
• Investor Sentiment
• Individual Investor Behavior

Cost Accounting

A study of cost behavior, overhead cost allocations, cost systems design, an introduction to activity-based costing and control systems. Emphasis is on case studies and other practical applications.

Advanced Cost Accounting

An advanced study of the concepts of process cost accounting, cost behavior, overhead cost allocations, cost system design, activity-based costing and control systems. Emphasis is on case study analysis and other practical applications of cost accounting practices to various business enterprises.

Advanced Financial Reporting

A study of business combinations and the preparation of consolidated financial statements for consolidated enterprises, fund-type accounting for governmental units and not-for-profit entities, accounting for partnerships and accounting for multinational enterprises.
 

Assurance Services

A study of auditing and other assurance services with an emphasis on the world of auditing that exists outside of the company. Special emphasis is given to legal liability, statistical sampling, audits of SEC registrants, research using the AICPA auditing database and other assurance services. A case study approach is used to attempt to create a realistic view of how an auditor organizes and carries out an audit.

WHO SHOULD ATTEND?

Senior Accountants, Head of Accounting Sections, Financial Managers, Accounting Managers, Senior Auditors