The aim of this module is to provide participants with the accounting basics necessary to understand the financial reality of businesses. It aims to ensure an understanding of accounting documents as a basis for obtaining decision-making information. To this end, three fundamental documents are presented: the balance sheet, the income statement, and the cash flow statement. The format and the relationship between these documents are explained, and the reading of balance sheets as working documents and for the validation of accounts is developed.

Topics:

• The nature and objectives of financial accounting
• Accounting principles accepted in Angola and international standards
• General accounting plan
• Content and format of the main accounting documents: balance sheet, income statement, cash flow statement, notes attached to accounts, technical report, balance sheet, and accounts plan

• Balance sheet and analysis of the accounts

This module aims to enable an understanding of accounting documents and the information they contain, a condition always necessary to facilitate communication between managers and ensure alignment with the outlined objectives. The aim is to understand and interpret management information by analyzing its basic documents – the balance sheet and the income statement – from a perspective of building and understanding the relations between them. The changes introduced by the International Financial Reporting Standards (IFRS) are also analyzed.

Topics:

• Framing in financial accounting

• Analysis of economic and financial indicators: financing, profitability, performance, liquidity

This module presents the various types of costs, as well as costing methods for common costs. Methods for calculating contribution margins and the levels of activity that guarantee these margins (break-even analysis) are also addressed and discussed. In addition, other newer methodologies and their relationship with financial information systems and control models are presented.

Topics:

• General accounting versus management accounting
• Definition and classification of the various cost concepts
• Development of the cost concept and analysis of its behavior
• Fixed costs and variable costs

• The notion of contribution margin – the CVP (cost-volume-profit) model and the different situations that demonstrate the usefulness of the contribution method in special decision making.

In this module, the entire behavioral context of the planning and operational control of the company will be analyzed, as will all aspects associated with the construction of the budget process within the company. Initially, all aspects associated with the consolidation of the budgetary process within the company will be evaluated, and the format of the financial documents that support the decision-making process will be analyzed – cash budget, financial budget (base document for evaluation of the company's financing framework in the short term), income statement, and balance sheet forecast. Next, the entire context of the company's operational control will be developed, and a methodology for deviations control and interpretation will be presented – the introduction of flexible budgets.

Topics:

• Budgetary planning: the budget cycle; preparation of the cash budget (how to work at the cash level with medium-term receipts and payments, as well as with all other flows in the company); preparation of the financial budget, income statement, and balance sheet forecast

• Budgetary control: construction of the budgetary control process; flexible budgets; deviations clearance, analysis, and interpretation

In contemporary societies, managers’ decisions are increasingly dependent on tax-related questions. A good perception of this area becomes an important advantage for those holding positions of responsibility in companies, regardless of their area of work. Therefore, the main characteristics of each type of tax are presented, in particular with regard to the rules of subjective and objective incidence, rules relating to territoriality, determination of the tax base, and the duties of taxpayers and their ancillary and declarative obligations.

Topics:

• Industrial tax
• Taxes on work income
• Capital gains tax
• Urban property tax
• Consumption tax
• Stamp duty
• Private Investment Act

• Exchange rate regime

In this module, the entire behavioral context of the planning and operational control of the company will be analyzed, as will all aspects associated with the construction of the budget process within the company. Initially, all aspects associated with the consolidation of the budgetary process within the company will be evaluated, and the format of the financial documents that support the decision-making process will be analyzed – cash budget, financial budget (base document for evaluation of the company's financing framework in the short term), income statement and balance sheet forecast. Next, the entire context of the company's operational control will be developed, and a methodology for deviations control and interpretation will be presented – the introduction of flexible budgets.

Topics:

• Financial planning
• Short-term financial planning
• Short-term financial decisions
• Use of treasury control instruments

A company is a vast set of assets and responsibilities, and its valuation is naturally complex. Throughout this module the main company valuation methods will be presented, both in terms of conceptual principles and through practical examples. The similarities and differences between the various methods will be noted and the conditions under which they should be implemented will be illustrated. Methods covered include both classic methods and newer methods such as free cash flow and options use.

Topics:

• Valuation of companies: updated dividend method, market multiples method, asset-replacement cost methods, free cash-flow method, business valuation through real options
• Estimating the cost of a company's capital

• Practical company valuation cases

The increase in global competition and capital mobility has raised the pressure on companies and has led to a greater need to improve performance and create shareholder value. To achieve these objectives and ensure success, a company must correctly measure its performance, identify value-creating investment opportunities, find the best financing alternatives, analyze risks and cover the undesirable ones, measure its risk exposure, and manage investment and financing portfolios in a compatible manner.

Topics:

• Foundation and implementation of the concept of value
• Economic value added (EVA) – benefits and limitations
• Evaluation of the performance of a business and its divisions
• Accounting measures versus measures based on cash flow
• Methods for identifying value-creating investments
• Interconnection between adequate performance evaluation and shareholder value creation
• Risk management and value-at-risk measurement
• Decisions on risks to be maintained and covered
• Choice of funding sources according to the desired level of risk exposure
• Choice of instruments that displace, reduce, redefine or alter risk
• Use of the portfolio concept in risk management
• Use of derivatives (e.g., options and swaps) in risk management

• Impact of these processes on operating accounts, value, shareholders, and company success

In this module of integration and maturation of many of the concepts introduced in the previous modules, participants will exercise their knowledge of business finance by developing a company or business project that they will have to evaluate, sizing the investment, designing cash-flows, establishing various project-financing scenarios, and performing a risk analysis. The work will be supported by the building of a spreadsheet of the established scenarios and the corresponding evaluations.

Topics:

• Brief strategic framing of the investment project
• Market analysis and sales potential
• Operating system characterization and investment dimensioning
• Associated financial flow estimation (investment, sales, operating costs, management fund, etc.)
• Financial viability analysis
• Investment financing

• Risk analysis