Accounting, Finance & Control

Synthetic program:

The course Accounting Finance & Control (AFC) aims at providing theoretical frames and instruments to understand and manage "numbers" and "key information" for enterprises. The course aims at enabling future engineers to: -Understand which are key information and numbers to support companies in pursuing enterprise value. Interpret enterprise sustainability through economic and financial trends. - Measure, analyze and manage enterprise performances and the contribution of different organizational areas. -Analyze financial needs in face of present and future (forecasted) trends, assessing alternatives to cover these needs (equity and debt). -Be able to interact, through key numbers, with enterprise stakeholders.

o The “Accounting, Finance and Control” (AFC) domain: the role of financial accountants and controllers and its evolution over time
o The “AFC” organizational unit within the enterprise
o The main activities performed by the “AFC” organizational unit o Accounting-based Performance Measures. The application to a real case: the analysis of consolidated financial statements of a business group
o Value Based indicators: Discounted Cash Flow techniques. Enterprise Value vs. Equity Value. The calculation of Free Cash Flows. The discounting factor: the cost of capital. Relative Valuation.
o Value Drivers (non-financial performance measures and risk indicators)
o The “Planning” phase: the elaboration of operating, capital and cash flow budgets, and financial planning.
o The “Control” phase: periodic management reporting. The structure and content of management reports. Corporate dashboards and balanced scorecards.
o Measuring and reporting performance of internal responsibility centres.
The performance of internal profit/investment centres (Business Units, Divisions). Corporate costs allocation and transfer pricing.