The firm’s responsibility accounting and reporting system
Preparation of budgets and forecasts
Standard costing and analysis of variances
Segment performance measurement and related decisions
Balance scorecard
Quality management
Ethical considerations in cost and management accounting decisions
Module 2 - Corporate Finance and Financial Decisions
Financial Statement (FS) Analysis & Working Capital Management
Overview of the Income Statement, Balance Sheet, Cash Flow Statement, Statement of Changes in Equity, and Disclosures in the Notes to FS
Calculating and using the various liquidity, activity and profitability ratios and the Dupont analysis to assess the firm’s performance, identify red flags and implement corrective measures
Working capital management: knowing the various sources of short term funds, calculating their cost, and managing current assets and liabilities to create value for the firm
The time value of money and the risk and return trade-off.
Long Term Funds, Their Cost & Related Decisions
Understanding the capital markets
Various sources of long term funds, their related risks and costs (calculating the cost of debt, cost of preference shares, cost of ordinary shares, and calculating the WACC)
Theories on dividends
Formulating the firm’s dividend policy
Mergers, Acquisitions and International Managerial Finance Decisions
Mergers, acquisitions and divestiture fundamentals
Valuation of bonds, preference shares, ordinary shares, and of going concern entities
The capital asset pricing model, and the arbitrage pricing model
Managing opportunities and risks of multinational companies (MNCs)
Hedging strategies for MNCs
Statutory reporting compliance issues for MNCs
Risk Management Decisions for Wealth Preservation
Definition of risk and identification of the different types of risks
Statistical probability tools in risk measurement: calculating the mean, the expected value, the standard deviation, the range, the coefficient of variation and the correlation coefficient in order to asses risk of a single asset or of a portfolio of assets
Risk and return trade-off
Use of the capital asset pricing model and the risk adjusted rate of return in risk management decisions
Risk management tools: insuring, diversifying, hedging and the use of derivatives in managing risk
Managing risk using the transfer, avoid, reduce and accept (TARA) framework
Ethical considerations for the organization
Module 3 - Special Topics in Management Accounting
Corporate Governance and Statutory Compliance Concerns
The code of corporate governance
Establishing an effective internal audit (IA) function
IA’s relationship with the external auditor, the board audit committee, and the board of directors
Quality assurance review for IA
Putting in place internal controls, and promoting an ethical culture in the organization
Statutory financial reporting compliance issues (with the SEC)
Statutory tax reporting issues (with the BIR and with the LGUs)
Data Analytics Tools for the Management Accountant
Descriptive analytics
What-if analysis with data tables: designing a make-or-buy decision model with manufacturing and outsourcing costs, quantity, and fixed costs as inputs using one-way data table, 2-way data table, and goal seek tool
What-if analysis with scenario manager: quantifying the impact of changing multiple inputs (a set of multiple inputs called a scenario) on one or more outputs of interest in an amusement park daily-profit model
Predictive analytics
Linear regression analysis: forecasting the effect of time as an independent variable on sales performance as dependent variable using simple and quadratic analysis
Time series with seasonal trend analysis: predicting the effect of time in year and quarterly period as numerical and categorical variables on sales revenue as dependent variable using trend and seasonal variation analysis
Prescriptive analytics
Monte Carlo simulation with random numbers: understanding the profit and loss potential of a new product using discrete, uniform, and normal distributions for cost and volume inputs with profit frequency distribution as output
Linear and Nonlinear Programming: determining the optimum quantity and pricing decisions with limited manpower resources to maximize profit of a manufacturing company using a Data Solver tool .
Computerized Systems Controls and Business Continuity Concerns for the Management Accountant
Managing the firm’s digital transformation under the new normal
Computer security/cybersecurity concerns: vulnerability & threats; protection of the firm’s networks, devices, programs and data from attacks and unauthorized access
Cloud computing: benefits; risks and risk mitigation measures; using the cloud in managing the firm’s digital assets
Business continuity planning(BCP): BCP governance; business impact analysis; assurance measures for business continuity, maintenance and testing, and other concerns
Managing disruptions: crisis communication and operations management during disruptions, and moving on to recovery and resumption of operations to pre-disruption levels
Operations and Project Management Concerns for the Management Accountant
Production scheduling and control issues: the theory of constraints; bottle neck work centers
Production cost management: developing the production budget; materials requirements planning; inventory management models; implementing a JIT inventory system
Project management and control concerns; project planning and scheduling tools; the work breakdown structure (WBS); PERT/CPM
Project performance monitoring; calculating the earned value and the schedule performance index; change management; claims management and control
Evaluation of project risks; risk mitigation measures; red flags
