MODULE 1.0 FINANCING LANDSCAPE

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MODULE 1.0 FINANCING LANDSCAPE by Mind Map: MODULE 1.0 FINANCING LANDSCAPE

1. Management accounting

1.1. Internal Decision Making

2. Financial Accounting

2.1. External use

2.2. Income Statement

2.3. Statement of Financial Position

2.4. Cash Flow Statement

3. Financial Management

3.1. How funds for a business are raised and invested

3.2. managing working capital, appraising long-term investment projects, deciding on appropriate types of finance for such projects, determining corporate payout policy and, finally, managing risk

4. Qualities of the accounting information (6)

4.1. Relevance

4.1.1. The information should be material or significance

4.2. Faithful Representation

4.2.1. Complete

4.2.2. Neutral

4.2.3. Free of error

4.3. Comparability

4.4. Verifiability

4.5. Timeliness

4.6. Understandability

5. Accounting Information System

5.1. Information Identification

5.2. Information Recording

5.3. Information Analysis

5.4. Information Reporting

6. Areas of Difference between Financial and Management Accounting

6.1. Nature of the Reports

6.2. Level of details

6.3. Regulations

6.4. Reporting Interval

6.5. Time Orientation

6.6. Range and Quality of information

7. Financial objectives

7.1. Shareholders Wealth Maximization

7.1.1. Total shareholder Return Formula

7.2. Profit maximization

7.3. Revenue Maximization : Could be a bad incentive.

7.4. Grow

7.5. KEY PERFORMANCE INDICATORS

7.5.1. ROCE: Return on Capital Employed

7.5.1.1. How efficiently the capital is used to generate profits

7.5.2. Operating Margin

7.5.2.1. How much operational profit is generated by sales revenue.

7.5.3. Assets Turnover

7.5.3.1. How efficiently the assets are used to generate sales revenue

7.5.4. ROE: Return on Equity

7.5.4.1. The profits that company has generated to its shareholders using their capital

7.5.5. ROA: Return on Assets

7.5.5.1. The profits that the company has generated fromt the profit deployed to earn these profits.

7.5.6. EPS: Earnings per Shares

7.5.6.1. The amount of the profit attributable to each ordinary share

7.5.7. DPS: Dividens per Shares

7.5.7.1. The amount of the dividend paid for each ordinary share held

8. Non Profif Organizations

8.1. Value for Money

8.1.1. Effectiveness

8.1.2. Efficiency

8.1.3. Economy

9. PROFIT VS. CASH

10. Economic Environment

10.1. Fiscal Policies

10.2. Monetary and Interest Rates Policies

10.2.1. Expansionary

10.2.2. Contractionary

10.3. Exchange Rates Policies

10.3.1. Floating

10.3.2. Fixed

10.4. External Trade Policies

10.5. Economic Policies

10.6. Competition Policies

10.7. Government Assistant Policies

10.8. Green Policies

10.9. Corporate Governance Regulation

11. Financial Markets

11.1. Types

11.1.1. Primary

11.1.2. Secundary

11.1.3. Alternative Investment Market

11.2. Capital Markets

11.2.1. Stock Markets

11.2.1.1. Shares

11.2.1.1.1. Ordinary

11.2.1.1.2. Preferences

11.2.2. Bond Markets

11.2.2.1. Loan Securities

11.2.2.1.1. Eurobonds

11.2.2.1.2. Foreing Bonds

11.2.2.1.3. Mapple Bonds

11.2.2.1.4. Samurai Bonds

11.2.2.1.5. Yankee Bonds

11.2.2.2. Secured

11.2.2.3. Unsecured

11.2.2.4. Convertible Bonds

11.2.3. Money Markets (Eurocurrency Markets)

11.2.3.1. Negotiable Certificates of Deposits

11.2.3.1.1. Money Market Deposits

11.2.3.1.2. Deposit Accounts

11.2.3.1.3. Treasure Bills - T Bills

11.2.3.1.4. Government Bonds

11.2.3.1.5. Certificates of Deposits

11.2.3.1.6. Repurchase Agreement - Repo

11.2.3.1.7. Commercial Paper - CP

11.2.3.1.8. Bankers's Acceptances

11.2.3.1.9. Eurodollar Deposits

11.3. Financial Intermediaries

11.3.1. Aggregation

11.3.2. Maturity Transformation

11.3.3. Risk Reduction

11.3.4. Securitization

11.3.4.1. Pooling and Repacking on homogenous illiquid financial assets into marketable securities

11.3.5. Diversify Portfolios

11.3.6. Gain access to expertise

11.3.7. Protection for their investments

12. Stakeholders

12.1. Board of directors

12.2. Managers

12.3. Employees

12.4. Shareholders

12.5. Costumers

12.6. Suppliers

12.7. Lenders

12.8. Government

12.9. Local community

13. Principal - Agencies relationship

13.1. Shareholders - Principals

13.2. Directors - Agents

13.2.1. Audit committee

13.2.2. Nomination committee

13.2.3. Remuneration committee

14. Mendelow's Matrix

15. External Auditor

15.1. Audit Opinion

15.1.1. Unqualified

15.1.2. Qualified: Disagreement

15.1.3. Qualified: Limited Scope.

15.1.4. Qualified: Adverse

15.1.5. Qualified: Disclaimer.

16. Corporate Social Responsibility