FIUNAFPR Financial Planning and Budgeting

School of Business Administration in Karvina
Winter 2018
Extent and Intensity
1/2/0. 5 credit(s). Type of Completion: zk (examination).
Teacher(s)
doc. Ing. Petra Růčková, Ph.D. (lecturer)
Ing. Michaela Roubíčková, Ph.D. (seminar tutor)
doc. Ing. Petra Růčková, Ph.D. (seminar tutor)
Guaranteed by
doc. Ing. Petra Růčková, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Prerequisites
None
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
The aim of this course is to provide students with the necessary knowledge in a comprehensive way to enable their better orientation in a relatively complex area of financial planning and budgeting and enable them to apply their knowledge of financial analysis, financial reporting and corporate finance. Financial manager needs to know, analyze and respond to changes in the methods of the evaluation of investment, financial planning and budgeting and also needs to be able to successfully apply knowledge of specific planning strategies. The course elucidates position of financial planning in framework of financial management of firm.
Syllabus
  • Financial analysis as base for financial planning
    Financial statements to evaluate the past financial position of the company. Horizontal and vertical analysis in terms of business dynamics. Ratio analysis in the context of financial planning. Position of the ratio analysis in the process of assessing the past financial situation and its use for ex-ante analysis.
    Other methods for creating a basis for financial planning
    Economic value added in planning process. Possibilities of using the discounted cash flow method in the financial planning process. Market value added as a parameter for assessing the financial situation and its use in the planning process. Balanced ScoreCard as an innovative financial management tool. Balanced ScoreCard Difference from classical financial analysis methods. Comparing its position with modern methods of financial analysis (EVA, MVA).
    Creation of an investment project, its evaluation and financing possibilities
    Determination of cash flows in the investment project of the company. Using the profit and loss statement and the cash flow statement when determining cash flows. Investment valuation methods - net present value, internal rate of return method, maturity method - in the project evaluation process. Advantages and disadvantages of each method when selecting the best option. Differences in the results of evaluation methods using different financial sources.
    Strategic and operational financial planning
    Definition of strategic planning. Definition of strategic goals and missions in the financial planning process. Linking strategic financial planning and other parts of the strategic plan. Financial strategy and life cycle business. Strategic planning methods. Definition of operating financial planning. Operational goals and their relationship to strategic goals.
    Creation of the planned profit and loss statement and planned balance sheet
    Methods of planning profit and loss statement. Application of selected methods to create a planned profit and loss statement of a real business. Balance planning methods. Applying balance sheet methods to an existing enterprise.
Literature
    required literature
  • BREALEY, Richard A. Principles of corporate finance. New York: McGraw-Hill Education, 2017. ISBN 9781259253331. info
  • WATSON, Denzil. Corporate finance : principles and practice. Harlow, England: Pearson, 2016. ISBN 9781292103037. info
  • SAMONAS, Michael. Financial forecasting, analysis, and modelling : a framework for long-term forecasting. Chichester: John Wiley & Sons, 2015. ISBN 9781118921081. info
  • COPELAND, Thomas E. Financial theory and corporate policy. Harlow: Pearson, 2014. ISBN 978-1-292-02158-4. info
  • LEE, Alice C. Financial Analysis, Planning & Forecasting : theory and aplication. New Jersey: World Scientific, 2009. ISBN 978-981-270-608-9. info
    recommended literature
  • PROWLE, Malcolm. Management accounting in the contemporary business world. London: Palgrave Macmillan, 2016. ISBN 9781137387769. info
  • KIM, Kenneth A. Global corporate finance : a focused approach. New Jersey: World Scientific, 2015. ISBN 9789814618007. info
  • WITCHER, Barry. Strategic management : principles and practice. . Hampshire: Cengage Learning, 2014. ISBN 978-1-4080-6395-8. info
  • LUNDHOLM, R., SLOAN, R. Equity valuation and analysis. 2007. ISBN 007-310026-9. info
  • PENMAN, H. S. Financial statement analysis and security valuation. New York, 2007. ISBN 007-125432-3. info
Teaching methods
Skills demonstration
Seminar classes
Assessment methods
Written exam
Language of instruction
English
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
Teacher's information
attendance in seminars 50 %, seminar paper, defence of seminar paper, final written exam
ActivityDifficulty [h]
Ostatní studijní zátěž66
Přednáška13
Seminář26
Zkouška40
Summary145
The course is also listed under the following terms Winter 2014, Winter 2015, Winter 2016, Winter 2017.
  • Enrolment Statistics (recent)
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