Western chemicals

Performance Measurement and
Financial Reporting

A.Y. 2013-2014

Syllabus
Part III: Performance Measurement
Theoretical foundations and main performance tools

ü The concept of value. Performance measurement: financial and management accounting ü Financial analysis: general concepts and basics ü Financial indicators: ratio analysis o Profitability ratios o Liquidity ratios o Capital structure ratios o Cost volume analysis, BEP and operating leverage o MVA and EVA ü Case–studies and examples of practical performance measurement tools: value trees, KPIs and Balanced Scorecard

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Part II
Performance Measurement
Theoretical foundations and main performance tools

Performance Measurement
TOPICS OF PERFORMANCE MEASUREMENT

FIRM

As a whole

Single parts of the firms

Financial Accounting

Management Accounting

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NON FINANCIAL PERFORMANCE MEASURES

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Financial Analysis. General concepts
FINANCIAL STATEMENT OBJECTIVES
1. to fairly present the economic and financial position of a company to actual and potential stakeholders.
2. to understand the numbers, getting behind the figures, and use the understanding to better manage a business.

FINANCIAL STATEMENT ANALYSIS
Is the art of analyzing and interpreting financial statements. Thus, one may develop various analytical measures to portraits meaningful relationship and extract information from raw financial data.

Overview of company performance analysis
1.

Understand Financial Statements
Identiify Industry Economic Characteristics

3.

Identify Company Strategy
Analyze Profitability and Risk

5.

2.

4.

Value the Firm

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The concept of Value
FIRM PURPOSE

MAXIMISE SHAREHOLDERS
VALUE

Maximise future “results”

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Control risk

The concept of Value

SHAREHOLDER THEORY

STAKEHOLDER
VALUE THEORY

“The social responsibility of business is to increase its profits” the purpose of the firm