Chapter 6: Prospective Analysis: Forecasting Key Concepts in Chapter 6 • Strategy‚ accounting and financial performance analyses provide valuable information that help to shape forecast assumptions. • Forecasts of future performance should be comprehensive‚ including all condensed financial statements. • The starting point for forecasts should be the time series behaviour of key measures such as sales growth‚ earnings and ROE (and its components). Overall Structure of the Forecast • Typically
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running a business. Objectives The aim of this section is to help you to prepare financial forecasts. It will enable you to: • Understand costing and pricing; • Use break-even analysis as a way of setting sales targets; • Understand financial forecasting; and‚ • Assess working capital requirements. Assignment The purpose of these assignments is to ensure that you are able to prepare the necessary financial forecasts for your business. Satisfactory completion of the set of assignments
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ADOPTION OF IFRS: IT`S BENEFITS AND IMPACTS ON FIRMS AND COUNTRIES AROUND THE WORLD The IASB was established in 2001 and since have assumed the responsibility of the standard setting from its predecessor body‚ the International Accounting Standards Committee (IASC) and began issuing International Financial Reporting Standards (IFRS). IFRS has recently been dominating the regulatory changes in accounting for listed companies around the world. Through the years‚ over 100 countries have adopted IFRS
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UNIT 6 DEMAND ESTIMATION AND FORECASTING Objectives By studying this unit‚ you should be able to: identify a wide range of demand estimation and forecasting methods; apply these methods and to understand the meaning of the results; understand the nature of a demand function; identify the strengths and weaknesses of the different methods; understand that demand estimation and forecasting is about minimising risk. Structure 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 Introduction Estimating Demand Using
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Eight Steps to Forecasting • Determine the use of the forecast □ What objective are we trying to obtain? • Select the items to be forecast • Determine the time horizon of the forecast □ Short time horizon – 1 to 30 days □ Medium time horizon – 1 to 12 months □ Long time horizon – more than 1 year • Select the forecasting model(s) |Description |Qualitative Approach |Quantitative Approach
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Integrated Planning – Module 2 1 Agenda • Forecasting‚ • Factors influencing Demand • Basic Demand Patterns • Basic Principles of Forecasting • Principles of Data Collection • Basic Forecasting Techniques‚ Seasonality • Sources & Types of Forecasting Errors Forecasting can be conducted at various levels Strategic Required for • Product life cycle • Long-term capacity planning • Capital asset/equipment/ human resource management Examples • Product line transitions • Annual volume out
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step. The resultant error ratio is multiplied with the forecast demand to give a specific number that L L Bean commits with its vendors. Taking the information given in the case into account the ratio would be calculated as follows: Gain= 30-15=15 Loss=15-10=5 Therefore the ratio equals= 5/(5+15) = 0.75. So given this case the company should keep the additional item of inventory‚ only if 0.75 is greater than the probability that the item won’t be needed. 2.The costs and revenues primarily used
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Exchange rate movement has been an important subject of macroeconomic analysis and market surveillance. Despite its importance‚ forecasting the exchange rate level has been a challenge for academics and market practitioners since the collapse of the Bretton Woods system. Empirical results from many of the exchange rate forecasting models in the literature have not yielded satisfactory results. This paper is constructed for the purpose of comparing the forecast performance of various competing models
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Forecasting "Best Practices" "Effective demand planning and sales forecasting across the supply chain can bring a host of benefits. Specifically‚ it can help improve labor productivity‚ reduce head count‚ cut inventories‚ and speed up production flows‚ and increase revenues and profits. -Edward J. Marien To find the "best practices" for forecasting‚ our team researched many cases of forecasting success‚ and found five companies with a common theme. Rayovac‚ the Coca-Cola Bottling Company
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of the main problems faced by an organization. Human resources have a certain degree of inflexibility‚ both in terms of their development and their utilization. It takes months to recruit to select to place‚ and to train the average employee. In the case of upper management personnel in the organizations‚ the process may take up to years to nurture the candidate and making sure of the succession are being put in place. Making decisions on recruitment and development are strategic and will produce long-lasting
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