Mastering Financial Management

Through the Labyrinth

Professionalism + Ethics

Invoice Finance Obstactles

Banks & Shared Services

Human Capital Knowledge Management

Clive M H Marsh, MA, ACA(NZ), FCIBS, FCMI
Chartered Banker (Scotland), Associate Chartered Accountant (NZ)

Research, Development & Management Services

Research :: Business Development :: Strategic Alliances :: Business Partners

Links to Financial Management:

Financial Management ACCA and CIMA

http://www.pearsoned.co.uk/Bookshop/detail.asp?item=
100000000294665

Chartered Management Institute - Clive Marsh

CMI - Chartered Management Institute

http://www.managers.org.uk/content_1.aspx?id=10:6464&id
=10:35&id=10:5

http://www.kingston.ac.uk/alumni/news/alumni-stories/2009
/october/21-published/

http://www.amazon.co.uk/Mastering-Financial-Management
-Step-Step/dp/0273724541

http://www.penguin.com.au/lookinside/spotlight.cfm?SBN
=9780273724544

http://www.heathmarsh.co.uk/mastering_financial_
management.html

A practical guide to the strategies, applications and skills required to master financial management including budgeting, costing, pricing, working capital management, the cost of capital, currency and exchange risk management, interest rate risk, mergers and acquisitions, outsourcing,

shared services, financial markets, capital markets, strategic financial management, ethics and sustainability. The work is expected to prove useful to professionals and students for ACCA, MBA, CIMA, Certified Diploma, CIPFA and other programmes.

Buy Book - http://www.amazon.co.uk/Mastering-Financial-Management-Step-Step/dp/0273724541

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1 Overview of financial management and its relationship with corporate strategy and the markets A definition of financial management Financial management and corporate strategy The role of the financial markets Summary 2 Financial accounting and ratio analysis Introduction The origins of accounting and the double-entry system The basic principles of double entry Trial balance Profit and loss account Balance sheet Classification of assets Classification of liabilities Fundamental accounting concepts and principles Ratio analysis Summary 3 Company taxation interface with financial management Overview Outline of corporation tax Value added tax VAT PAYE and NI Global tax planning Overseas activities Double taxation relief Foreign companies trading in the UK Transfer pricing Tax and decision making Tax strategy interface with business strategy and finance Committing to a tax strategy 4 Inflation and the changing value of money over time Overview Inflation, deflation, disinflation, stagflation, hyperinflation Official sources of inflation statistics Time value of money and discounted cash flow Summary 5 Budgeting Budgetary control and the budget process Budgets and variance analysis Budget methods and types of budgeting and relationship with planning; Types of budgets Choices, priorities and capital rationing Summary 6 Marginal costing and pricing Overview Fixed costs Variable costs Semi variable costs or semi fixed costs Total cost Contribution Break even point The use of marginal costing in pricing decisions The advantages and disadvantages of marginal costing 7 Absorption costing, standard costing and activity based costing Absorption costing The fully integrated standard costing system The principal advantages of standard costing systems Setting standards Activity based costing (ABC) The use of marginal costing in conjunction with standard costing 8 Pricing and costs Setting selling prices Social and legal issues in pricing Sales mix Using linear programming techniques to solve problems of sales mix when there are resource constraints Using cost information in pricing Marketing strategies Summary 9 Encouraging performance through goal alignment and congruence Goal alignment Reward schemes Broader incentives Summary 10 Working capital management The need for working capital, the working capital ratio and cycle Overtrading Stock turnover and optimal stock levels Debtors Cash control and management What to do with short term surplus cash Working capital funding strategies Summary 11 Business finance, long term versus short term finance, gearing and capital structure The uses of long term and short term finance Short term finance Term and long term finance and funds Gearing and capital structure Export finance Bank relationship strategy 12 The cost of capital Definition of the cost of capital and discussion Cost of debt Weighted average cost of capital (WACC) Dividend growth model Capital asset pricing model (CAPM) Summary 13 Capital structure Background The MM view Traditional view of the cost of capital Pecking Order theory Capital structure, cost of capital and investments Pragmatic summary A theoretical view the perfect market versus the real world 14 Business valuations Background Business valuers and the information they require Asset based valuations Income/earnings based valuations Cash flow valuations Debt valuation Summary 15 Foreign currency and exchange risk management The nature of foreign currency risk Reasons for exchange rate movements Currency risk management Currency derivatives 16 Interest rate risk Introduction The causes of interest rate fluctuations Types of interest rate Interest rate risk management FRAs (forward rate agreements) Interest rate derivatives 17 Investment decisions Investment and the capital budgeting process Relevant cash flow Payback period method of evaluation Return on capital employed (ROCE) Accounting rate of return (ARR) Discounted cash flow, net present value and internal rate of return Capital rationing The effect of taxation on investment appraisal and DCF 18 Mergers and acquisitions (M&A) Background and definitions Considerations on acquisition Defensive tactics Competition Commission Acquisition consideration The market value of shares during a takeover The effect of takeovers on PE ratios, EPS and creating paper value Effect of mergers and takeovers on dividend cover Reverse takeovers Demergers The City Code on Takeovers and Mergers Documents in a takeover bid Summary of order of events in a takeover Cross border M&A How will the 2009 recession effect the M&A market? 19 Outsourcing and shared services Background What is outsourcing? The outsourcing decision Outsourcing groups, associations and information sources Shared services Further reading 20 Financial markets Types of financial intermediaries Bank prudential supervision The money market The capital market 21 International money and capital markets Background The Eurocurrency market International capital markets Eurobonds Euronotes Eurocommercial paper (ECP) Using the Eurocurrency market to hedge against foreign exchange risk International Capital Markets Association (ICMA) 22 Strategic financial management Definition Creating value through finance whilst still supporting overall business strategy The strategic financial management process The strategic financial management interface with corporate strategy Financial management in a recession Conclusion 23 Professionalism and ethics what happens if it all goes wrong? Background What is good ethical behaviour? Ethical issues Handling ethical issues Summary Chapter 24 Sustainability and financial management Background Sustainability reporting and accounting Financial management and sustainability An example of excellence in sustainable reporting and sustainable business strategies Appendix 1 Compound interest tables Discounted cash flow tables Appendix 2 Useful financial formulae.

Mastering Financial Management (www.heathmarsh.co.uk) will be useful to ACCA financial management and CIMA financial management students as additional reading and as a reference to key financial management theories. Written by a Chartered Banker with deep corporate financial management experience Mastering Financial Management will help both Chartered Banking and Chartered Accounting students of financial management and strategic financial management. 

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