PowerPoint 2 Flashcards
What does Financial management bases on ?
- Focused on maximizing value for shareholders
- Value captured (i.e., profitability and its sources, revenues and costs)
- Decisions on: daily business and liquidity monitoring; Non-current issues/investments and solvability monitoring; Financing choices
Which are the international standards we have to follow financially ?
International Accounting Standards (IAS)
International Financial Reporting Standards (IFRS)
Which is the international institution we have to follow financially ?
International Financial Reporting Interpretations Committee
(IFRIC)
How do you calculate Assets ?
Assets = Equity + Debt
How do you calculate Permanent capital ?
Permanent capital = Equity + Non-current debt
Types of Current Assets ?
- Inventories (e.g., raw materials, goods)
- Receivables (e.g., customer)
- Cash (e.g.,)
Types of Non Current Assets ?
- Tangible (e.g., Machinery, Equipment, Buildings, Transportation vehicles)
- Intangible (e.g., Patents, Software)
- Financial (e.g., Equity from related companies)
Types of Equity ?
- Capital
- Reserves
- Retained earnings (e.g., profit/loss from previous periods)
- Profit/Loss
Types of Debt ?
- Non-current (e.g., Loans)
- Current -> Payables (e.g., suppliers)
Types of Revenue ?
Operational:
* Sales of goods/services
* Subsidies
* Change in production
Financial:
* Interest received
Types of Expenses ?
Operational:
* Cost of merchandise/materials
* Services
* Personnel
* Depreciation and Amortization
* Taxes
Financial:
* Interest paid
How do you calculate Operating profit/loss ?
Operating profit/loss = Operational Revenues – Operational Expenses
How do you calculate Financial profit/loss ?
Financial profit/loss = Financial Revenues – Financial Expenses
How do you calculate Profit/Loss ?
Profit/Loss (i.e., EBT) = Operating profit/loss + Financial profit/loss
How do you calculate After tax Profit ?
After tax Profit = Profit – Tax on profits
