GO BACK

AF01-ACCOUNTING IN OIL AND GAS COMPANIES

Workshop Description

This is a practical 10-day workshop covers the financial and accounting issues associated with oil and gas operations. Using Oil and gas industry examples and exercises, the participants will learn how to deal with those issues.

Workshop Goal:

To enhance the participants’ Knowledge, Abilities and Skills necessary to understand and apply the concepts, principles, policies, and methods of  Accounting in Oil and Gas Companies

Workshop Objectives

By the end of the workshop the participant will be able to:

·         Understand the terminology of finance & accounting

·         Deal with the critical issues related to finance and accounting in Oil and Gas Companies

Workshop Outline

1.            Accounting: The Language of Business

·         The Nature of Accounting

·         Accounting as an Aid to Decision Making

·         Financial and Management Accounting

·         Basic concepts (Cost, Loss, Waste, Expense, Expenditure…)

2.            An Overview of Oil And Gas Accounting

·         Acquisition costs

·         Exploration costs

·         Development costs

·         Production costs

·         Glossary of Common Terms

·         Characteristics of Oil and Gas Industry

·         The two generally accepted historical cost methods:

§         Successful-efforts accounting (SE)

§         Full-cost accounting (FC)

·         Overview of Entries Under SE and FC

3.            Nondrilling Exploration Costs Under SE

·         Geological and geophysical (G&G) costs

·         Costs of carrying and retaining undeveloped

·         Dry hole contributions and bottom hole contributions.

4.            Acquisition Costs of Unproved Property Under SE

·         Purchase in fee

·         Internal costs

·         Options to purchase or lease

·         Top leasing

·         Impairment of Properties

·         Abandonment of Properties

·         Partial Abandonment

·         Post-Balance Sheet Events

·         Reclassification of Properties

·         Partial Reclassification

5.            Drilling and Development Costs Under SE

·         Costs of drilling and equipping exploratory wells.

·         Costs of drilling exploratory-type stratigraphic test wells

·         Intangible drilling and development costs (IDC)

·         Equipment costs (lease and well equipment)

·         Development Drilling

·         Workovers

·         Damaged or lost equipment and materials

·         Abandonment of portions of wells

·         Additional Development Costs

·         Support Equipment and Facilities

·         Post-Balance Sheet Events 

6.            Proved Property Cost Disposition Under SE

·         Proved Property

·         Wells and related E&F

·         DD&A

·         Depreciation of Support Equipment and Facilities

·         Revision of DD&A Rates

·         Well Abandonment

·         Lease Abandonment

7.            Accounting for Production Activities

·         Lifting Costs

·         Directly Attributable Costs

·         Allocable Costs

·         Secondary and tertiary recovery

·         Gathering systems

·         Saltwater disposal systems

·         Tubular goods

·         Completion Decision

·         Profitability of a Well

·         Profitability of a Property

Who Can Benefit

Every accountant interested to understand the basics of Oil and Gas Accounting

UP

AF02-ACTUAL AND STANDARD COSTS IN OIL AND GAS COMPANIES

Course Description

This is a practical 5-day course covers the issues of actual and standard cost as a control tool, associated with oil and gas operations. Using Oil and gas industry examples and exercises, the participants will learn how to deal with those issues.

Course Goal:

To enhance the participants’ Knowledge, Abilities and Skills necessary to understand and apply the concepts, principles, policies, and methods of actual and standard cost as a control tool in Oil and Gas Companies

Course Objectives

By the end of the course the participant will be able to:

·         Understand the terminology of cost accounting and controls

·         Deal with the critical issues related to cost accounting and cost control in Oil and Gas Companies

Course Outline

1.      Cost Terms and Purposes

·             Key Cost Concepts: Cost, Loss, and Waste.

·             Expense and Expenditure

·             Inventoriable and Non-inventoriable (Product and Period Costs)

·             Manufacturing and Non-manufacturing

·             Direct and Indirect Costs

·             Fixed and Variable Costs

·             Actual and Standard Costs

·             Cost Centers and Cost Allocation

2.       An Overview of Oil and Gas Accounting

·             Characteristics of Oil and Gas Industry

·             Acquisition costs: the nature and behavior of Acquisition costs.

·             Exploration and Drilling cost: Its nature and behavior.

·             Development cost: Its nature and behavior.

·             Production cost: Its nature and behavior.

·             Common Terms Glossary

·             Generally accepted historical cost methods:

·         Successful-efforts accounting (SE)

·         Full-cost accounting (FC)

·             Overview of Entries under SE and FC

3.      Standard Costs and Control

·             What is cost control?

·             Setting Standards

·             Variance analysis

·             Efficiency/price variances

·             Variance Investigation

4.      Standard costs in Oil and Gas Industry 

·             Exploration and Drilling Costs

·         How to estimate the cost of a well

·         How to control the cost of a well

·             Development Costs

·         How to estimate the cost of development.

·         How to control costs during the development phase

·             Production Costs

·         How to estimate the production operating costs.

·         How to control and analyze production costs

UP 

AF03-ADVANCED BUDGETING

Workshop Description

Most executives and managers feel that traditional budgeting is a non-value added process which takes too long and cost to much.  This workshop will cover the most advanced topics in budgeting such as Activity-Based Budgeting (ABB), Performance-Based Budgeting (PBB), Kaizen Budgeting(KB) …

Workshop Goal

To enhance the participants’ Knowledge, Abilities and Skills necessary to understand and use the new aspects in budgeting.

Workshop Objectives

By the end of the workshop the participant will be able to:

·         Engage everyone in thinking about how they can better create value for the organization

·         Link planning and new aspects in budgeting

·         Identify waste and non-value in the budget and create action plans to eliminate it

Workshop Outline

1. Cost Terminology
2. Budget and Budgeting: An Overview

·         Advantages of Budgets

·         Definition of Budget

·         Budgeting Cycle

·         Time Coverage of Budgets

·         Types of Budgets

·         The Principal Steps in Preparing a Master Budget.

3.      Activity-Based Budgeting

·         What is Activity-Based Management?

·         What is Activity-Based Costing?

·         What is Activity-Based Budgeting?

·         Performance-Based Budgeting

·         What is the Performance Management?

·         What is the Performance-Based Budgeting

·         What are Benefits of Performance- Based Budgeting

·         What is the role of PBB in the process of monitoring, evaluating reporting results

4.      Kaizen Budgeting(KB)

·         Kaizen: What does it mean?

·         The Role of Kaizen Standards

·         Kaizen Budgeting & Learning Curves

·         Kaizen as a budgetary approach

5.      Zero Based Budgeting(ZBB)

6.      Modified ZBB

7.      Rolling Budgets and Forecasts

8.      Strategic Budgeting (SB)

·         Definition of SB

·         Implication of Strategic Budgeting

·         The Implementation Process

·         Benefits of SB

·         Strengths of SB 

·         Concerns and Cautions

Who Can Benefit

Controllers, senior finance managers, executives and every one with budget responsibilities

UP

 AF04-ADVANCED FINANCIAL ACCOUNTING

Course Description

This five-day course addresses several topics in advanced accounting. It will covers financial accounting theory and practice as applied to accounting for business combinations under purchase and pooling methods, consolidated financial statements, and foreign currency transactions.

 Course Goal:

To enhance the participants’ Knowledge, Abilities and Skills necessary to understand financial accounting theory and practice as applied to accounting for business combinations, consolidated financial statements, and foreign currency transactions

Course Objective:

By the end of the course the participant will be able to:

·         Distinguish between the purchase method and pooling of interest method,

·         Prepare entries for two companies, each with goodwill, direct and indirect acquisition costs, issue costs,

·         Prepare determination and distribution of excess schedules.

·         Perform comparison of 100% purchase and pooling; record investments and prepare consolidated balance sheets,

·         Prepare elimination entries using the equity method and cost method,

·         Prepare consolidated worksheets.

·         Prepare journal entries to account for contracts that are denominated in foreign currency, and prepare a translated trial balance along with the necessary consolidation entries.

Course Outline

·         The Equity Method of Accounting for Investments

·         Consolidation of Financial Information

·         Consolidations - Subsequent to the Date of Acquisition

·         Consolidated Financial Statements and Outside Ownership

·         Foreign Currency Transactions and Hedging Foreign Exchange Risk

·         Translation of Foreign Currency Financial Statements

• Worldwide Accounting Diversity and International Accounting Standards

Who Can Benefit

Vice Presidents of finance, controllers, senior finance managers, executives Accountants, and Financial Affairs personnel

UP

AF05- FINANCIAL ANALYSIS

IN OIL AND GAS COMPANIES

Course Description

This five-day course Masters the latest techniques and fundamental drivers that can dramatically increase the value of the company. The participant will learn how to use the concrete techniques that enable him to make truly informed decisions, in order to improve his company’s profit picture and his stockholders’ investment and increase his own value to his organization. Finally the participant will learn how to link multiple scorecard measures to a single strategy

Course Goal:

To enhance the participant’s knowledge, abilities, and skills necessary to understand the financial statement and to use the results to increase the value of his organization

Course Objectives:

By the end of this workshop you will be able to:

·         Determine the external and internal  uses of financial statement analysis

·         Determine the primary types of financial statements

·         Use the Contents of the Income Statement, Balance Sheet and Statement of Cash Flows to Evaluate a Company’s Performance

·         Formulate a possible framework for analysis

·         Employ techniques of financial analysis

·         Understand how to use the Balanced Scorecard as an integrated approach for performance evaluation in Oil and Gas Companies

·         How to use Financial Analysis in Oil and Gas Companies

Course Outline:

1.       The Financial Statements

·         External Uses of Statement Analysis

·         Internal Uses of Statement Analysis

·         Primary Types of Financial Statements in Oil and Gas Companies

·         Problem: Financial Statements in Oil and Gas Companies

2.       A Framework for Analysis: The First Two Steps

·         Analysis of the funds needs of the firm

·         Analysis of the financial condition and profitability of the firm

·         Problem (1) : A Framework for Analysis: The First Two Steps

3.       Trend and Ratio Analysis in Oil and Gas Companies

·         Trend analysis

·         Use of Financial Ratios

·         Types of Comparisons

·         Liquidity Ratios

·         Financial Leverage Ratios

·         Coverage Ratios

·         Activity Ratios

·         Profitability Ratios

·         Problem(1 Cont.) : Ratio Analysis in Oil and Gas Companies

·         Reserve Ratios

§         Reserve Replacement Ratio

§         Reserve Life Ratio

§         Net Wells to Gross Wells Ratio

§         Average Reserves Per Well Ratio

§         Average Daily Production Per Well

·         Reserve Cost Ratios

§         Finding Costs Per BOE

§         Lifting Costs Per BOE

§         DD&A Per BOE

·         Reserve Value Ratios

§         Value of Proved Reserve Additions Per BOE

§         Value Added Ratio

·         Problems (2-11) : Ratio Analysis in Oil and Gas Companies

4.       Performance Evaluation in Oil and Gas Companies- An Integrated Approach -Balanced Scorecard 

·         Financial Perspective

·         Financial Perspective

·         Customer Perspective

·         Internal Business Process Perspective

·         Learning & Growth Perspective

·         Problems (13-14) : Ratio Analysis in Oil and Gas Companies

5.       A Framework for Analysis: The Last Two Steps

·         Financial Derivatives and Risk of the firm

·         Determining the financing needs of the firm

·         Problems (15) : Framework for Analysis: The Last Two Steps

Who Can Benefit

Controllers, senior finance managers, executives and those with expertise in their own fields who need to acquire expertise in financial management

UP

AF06-BASIC PETROLEUM ECONOMICS

Course Description

This five-day course covers the economic structure of the petroleum industry and factors influencing oil economics. It also addresses feasibility of developing oil and gas related project and decision tools and models used to evaluate the economics of an investment. The course explains economic analysis of oil and gas production operations, reserve estimation and means of forecasting production using decline curves, how oil and gas prices are determined and we will look at the marketing aspects of petroleum products.

 Course Goal:

To enhance the participants’ Knowledge, Abilities and Skills necessary to understand the basics of petroleum industry.

Course Objective:

By the end of the course the participant will be able to:

·         Describe the role of petroleum economics in exploration, development, production, and Financing decision making

·         Calculate the expected monetary value of a venture

·         Discount a cash flow forecast and calculate net present value, internal rate of return, unit technical cost and break-even cost

·         Apply procedures by which to rank projects and evaluate alternatives

·         Evaluate the robustness of a project against sensitivities in the controlling parameters

·       Determine incremental value after isolating cost and revenue profiles from an existing project

Course Outline

1.      INTRODUCTION

• Accounting Concepts
• Weighted Average Cost of Capital
• Project Definition
• Profitability Analysis
• Cash Flow Analysis
• Discounted Cash Flows
• Net Present Value
• Field and Reservoir
• Basic Reservoir Parameters
• Area of Closure
• Rock Volume
• Recovery Factor
• Geological Risk
• Statistical Analysis
• Geological Analysis
• Probability Distributions
• Interdependence of Variables

2.      EXPLORATION ECONOMICS

• Exploration Costs
• Geophysical Programs: 2-D and 3-D
• Cost of Exploration Wells: Onshore and Offshore
• Delineation Costs
• Oil and Gas Reserves
• Appraisal Programs
• Appraisal Well Costs

3.      DEVELOPMENT ECONOMICS

• Development Wells
• Production Methods
• Primary, Secondary, and Tertiary Recovery
• Development Costs
• Development Schedules
• Deep Water Issues
• Development Well Costs
• Facilities Costs
• Gas/Oil Ratio and Facilities Costs
• Platform Costs

4.      OPERATIONS ECONOMICS

• Oil and Gas Production
• Transportation Costs
• Prices

5.      FINANCE ECONOMICS

• Escalation and Inflation
• Nominal and Real Values
• Constant Dollar Cash Flows
• Financing

• Oil & Gas Field Profitability

Who Can Benefit

Geo-scientists, engineers, staff working in finance, or commercial departments of oil and gas companies, or companies which supply finance or services to the oil and gas industry

UP 

AF07- BUDGETING, FORCASTING AND PLANNING

Course Description:

Managers have financial responsibilities and many have budgets to write and control and face many decisions that require forecasting and planning i.e. preparing their budgets. Using Oil and gas industry examples and exercises, this course aims to break down some of the financial barriers in an entertaining and informative style, with numerous examples. Bring your calculator. It gives an insight into the world of budgeting for financial and non-financial managers and professionals.

Course Goal:

To enhance the participants’ Knowledge, Abilities and Skills necessary to understand, prepare and use budget as a planning and control tool.

Course Objectives:

By the end of the workshop the participant will be able to:

·          Define Planning and its Purpose

·          Describe the Planning and Budgeting Cycle

·          Explain the Strategic Planning Process

·          Describe the Major Elements of the Annual Business Plan

·          Understand why you must link budgeting and forecasting to planning and performance

·          Describe and Perform the Basic Steps in Preparing a Comprehensive (Master) Budget

·          Prepare a Capital Budget

·          Determine and Investigate Budget Variances

·          Understand New Trends in Budgeting

Course Outline:

1.        Introduction:

·          The Planning Process

·          Need for Plans

·          System of Plans

·          Steps in Developing the Near-Term Sales Plan

·          Sales Forecasting

·          Measurement of Cost Behavior

·          How management influences on cost behavior?

·          How to measure and  Mathematically express  cost functions and use them to predict costs?

·          How to measure cost behavior using the account analysis, high-low, visual-fit, and least-squares regression Methods?

2.        Budget and Budgeting:

·          Definition of Budget

·          Strategic Focus of Budgeting

·          What are the Advantages of Budgets?

·          Management Support

·          Time Coverage of Budgets

·          Types of Budgets

3.        Budgeting and Planning:

·          Strategic Planning and Budgeting Process

·          Why You Must Link Budgeting and Forecasting to Planning and Performance?

·          Budget Participants and Budget Preparation Procedure.

·          Participative Budgeting and Importance of Communication in Effective Planning Process.

·          Building the Budgeting Model

§         Prepare the budget structure

§         Write the Budget

§         Monitor

·          Comprehensive (Master)Budgeting

·          Cash is King: How to manage this Resource

§          Objectives of Cashflow and Working Capital Management

§          Cashflow Reporting

·          Capital Budgeting:

§          What is Capital Expenditure?

§          Nature of Capital Investment Decisions

§          What is Capital Budget?

§          Stages of Capital Budgeting Process

§          Relevant Cash Flows

§          Methods of Evaluating Capital Investments

4.        Budgeting and control: Use of budget and budget performance analysis (variance analysis)

·          Flexible Budget and Overhead Analysis

§          The advantages of the flexible budget approach over the static budget approach.

§          Prepare a performance report for both variable and fixed overhead costs using the flexible budget approach.

§          Use the flexible budget to prepare a variable overhead performance report containing only a spending variance.

§          Use the flexible budget to prepare a variable overhead performance report containing both a spending and an efficiency variance.

§          Explain the significance of the denominator activity figure in determining the standard cost of a unity of product.

§          Apply overhead cost to units of product in a standard cost system.

§          Compute and interpret the fixed overhead budget and volume variances.

§          Variances Investigation

Who Can Benefit

·          Those who are, or will be, financial decision makers, working with accountants and are involved in formulating, planning and implementing business strategy

·          Those with budget responsibilities

·          Those with expertise in their own fields who need to acquire expertise in budgeting

UP

AF08-BUDGETING AS A TOOL FOR DECISION MAKING

Course Description

This is a 5-day intensive, practical workshop designed to eliminate the "mystery" from the budgeting side of the participant’s business. The workshop begins with an overview of the decision making process (planning decision and controlling decision) and concludes with a discussion of the comprehensive budget. Using examples and exercises, the participants will learn how financial of how to prepare the comprehensive budget, how to determine and analyze the variances between the actual and budgeted performance, and when to investigate the variance.

Course Goal

To enhance the participant’s Knowledge, Abilities and Skills necessary to understand budgeting issues as a planning and control tool.

Course Objectives

By the end of the course the participant will be able to:

• Describe the Planning and Budgeting Cycle
• Describe the Major Elements of the Annual Business Plan
• Describe and Perform the Basic Steps in Preparing a Comprehensive Budget
• Prepare a Capital Budget
• Determine and Investigate Budget Variances
• Understand New Trends in Budgeting

Course Outline:

1.      Types of budget systems

·         Annual business plans (master budgets)

·         Master Budget and Responsibility Accounting

·         Types of Budgets

·         Comprehensive Budgeting

·         Responsibility Accounting

·         Responsibility and Accountability

2.      Annual profit plan and the supporting schedules

·         Sales budget

·         Production / inventory budget

·         Direct materials budget

·         Direct labor budget

·         Pro forma statement of employee benefit costs

·         Overhead budget

·         Cost of goods sold budget

·         Selling and administrative budget

·         Budget for acquisition of capital assets

·         Cash budget and cash management plans

·         Pro forma income statement

·         Pro forma statement of financial position

·         Pro forma statement of cash flows

3.      Measuring Actual Performance against the Budgeted Performance

·         Static Budgets and Flexible Budgets

·         Flexible Budgets without Standard Cost

·         Flexible Budgets with Standard Cost

·         Overview of Variance analysis (DM, DL, and OH)

·         Variances Investigation

·         Benchmarking

·         Human Aspects of Budgeting

4.      New Trends in Budgeting

·         Activity based budgeting

·         Zero-based budgeting

·         Continuous (rolling) budgets

·         Kaizen budgeting

Who Can Benefit

·          Those who are, or will be, financial decision makers, working with accountants and are involved in formulating, planning and implementing business strategy

·          Those with expertise in their own fields who need to acquire expertise in budgeting

UP

AF09-CASH FLOW MANAGEMENT

Workshop Description

Cash management is the backbone to business survival. This 5-day course will focus on the core issues and techniques of cash flow management. It will help the participant to forecast his cash needs for tomorrow, next month or next year and how to be effective in managing his working capital in order to face cash flow problems as he wades through today’s economic difficulties.

 Workshop Goal

To enhance the participants’ Knowledge, Abilities and Skills necessary to plan and control the company’s cashflow 

Workshop Objectives

By the end of the workshop the participant will be able to:

·         Determine the reasonable level of cash to keep on hand

·         Determine how much should the firm borrow in the short term

·         Determine how much credit should be extended to customer

·         Distinguish between  cash management and liquidity management

·         Explain and manage float

·         Manage cash Disbursements

·         Plan how to invest cash Surpluses

·         Determine Target cash balance

·         Manage cash and liquidity

Workshop Outline

1.      Short-Term Finance and Planning:

·         Tracing Cash and Working Capital

·         The Operating Cycle and the Cash Cycle

·         The Cash Budget

·         Short-Term Borrowing

·         A Short-Term Financial Plan

2.      Cash and Liquidity Management:

·         Float Management

·         Cash Collection

·         Managing Cash Disbursements

·         Investing Idle Cash

3.      Determining the Target Cash Balance

·         The BAT Model

·         The Miller-Orr Model: A More General Approach

·         Other Factors Influencing the Target Cash Balance

Who Can Benefit

VPs of Finance, Controllers, Financial Analysts, Accountants; Project Managers and Leaders; Budget, Business Analysts and Treasury Professionals

UP

AF10- COMMERCIAL MINDSET

Course Description:

This intensive five-day course giving you a thorough grounding in the key commercial issues that are essential for business success. In today's competitive environment, people in specialist roles are being seen as having more and more commercial responsibility. Increasingly, these roles drive the level of service and cost delivered to the customer.

Your business is influenced by the increasingly complex relationships that you forge with suppliers, customers and in-company departments. Your commercial ability has a real impact on the prosperity of your business. It is therefore vital that you have the commercial know-how to deliver your full potential. This event has been designed to enable you to appreciate the key commercial issues for business success.

Course Goal:

To enhance the participants knowledge, skills and abilities necessary for developing their commercial mind

Course Objective:

By the end of this Course the participant will be able to:

·          Identify the key factors that influence business stability and success

·          Decide on the right approach to developing contracts

·          Successfully manage the interface between suppliers and customers

·          Negotiate win-win agreements

·          Use a range of financial techniques to identify strengths and areas for performance improvement

·          Have a clear focus on cash, asset and profit management

·          Practice application of skills learnt through a blend of presentation and case studies

Course Outline:

1.        What are the elements of commercial behavior?

·       Skills and attributes

·       Behaviors

·       Dos and don'ts

2.        The commercial environment

·       Understanding your company: Objectives/Expertise/Organization

·       Identifying and managing the network of relationships

·       Briefing and communication skills

·       Establishing and using authority and influence

·       Decision-making and management style

3.        An introduction to buying and selling

·       Differing approaches to specifying goods and services

·       Different types of specification

·       Managing variations and change

·       Winning new business

·       Proposal preparation

·       Pricing

4.        The legal environment

·       What is a contract?

·       Contract law

·       Intellectual property

5.        Contract strategy

·       The elements of a contract strategy

·       The division of the performance of the work

·       Pros and cons of different contract strategies

·       Partnerships and alliances

6.        Managing contracts

·       Breach of contract

·       Arbitration

·       Dispute resolution

·       Supporting your claims

·       Responsibilities and obligations of those involved

·       Useful sources of knowledge

7.        Persuasion and negotiation

·       Using questions effectively

·       Understanding clients' needs

·       Getting your solution accepted

·       Helping the customer or supplier value your proposals

·       Common negotiation errors

·       Achieving a win-win solution

·       Dealing with difficult situations

·       Assessing your negotiation strengths

8.        Risk management

·       Identifying risk

·       Prioritizing risk

·       Dealing with risks

9.        Creating an effective team

·       The members of an effective team

·       Roles in a team

·       Benefits and pitfalls of working in teams

·       Facilitating effective teams

·       Understanding team dynamics

·       Managing conflict

10.    The financial environment

·       Understanding the accountants

·       The three key financial elements

·       Profits versus cash flow

·       Relevant costs and future decision-making

·       Discounted cash flow

Who Can Benefit

Procurement and administration employees:

·             who are preparing to take up a management role

·             who are seeking to initiate change within their organisation to ensure commercial success

·             who deal with or manage suppliers, contractors and buyers

·             who have a direct impact on the success of the company

·             who are looking to improve their own financial management and commercial awareness

UP

AF11-COST MANAGEMENT WORKSHOP

Workshop Description

This five-day course addresses cost and management accounting topics relating to how to plan and control cost elements.

Workshop Goal      

To enhance the participants’ Knowledge, Abilities and Skills necessary for cost planning and control in order to manage the available resources effectively

Workshop Objectives      

By the end of this program, participant will be able to:

·         Explain the concept of Management Process

·         Determine the components of Management Process

·         Define the Cost Management

·         Apply the Cost Planning Techniques

·         Apply the Cost Reduction Techniques

·         Apply the Cost Control & Performance Appraisal Techniques

Workshop Outline

1.      Management Process and Cost Management

·         The Concept and Components :Management Process

·         The Concept and Components :Cost Management Process

o       Definition of Cost Management    

o       Strategic Cost Management

o       Operating Cost Management

2.      Cost Planning           

·        Activity-Based Costing

·         Cost Reduction Systems

·         Just-In-Time (JIT) and Cost Reduction

·         Cost Standardization.   

3.      Cost Control

·        Variance Analysis

·        Variance Investigation

·         Balanced Scorecard

Who Can Benefit

Vice Presidents of finance, controllers, senior finance managers, executives Accountants, and Financial Affairs personnel

UP

AF12-COST MEASUREMENT

Course Description:

Cost measurement is fundamentally a simple process. In most cases, cost analysts begin by measuring resources consumed (cost items). Next, they match (assign) cost items to cost objects. Finally, they account for the prices paid (historical cost) to acquire cost items and adjust those prices to reflect economic reality. This 5-day course covers the fundamentals of costing in order to accumulate and assign cost elements to units produced or service rendered.

Course Goal:

To enhance the participants knowledge, skills and abilities necessary to understand how to measure and analyze cost elements.

Course Objectives:

By the end of this Course the participant will be able to:

·         Identify the meaning of cost, loss, and waste.

·         Distinguish between expense and expenditure, product and period costs, manufacturing and non-manufacturing, direct and indirect costs and fixed and variable costs.

·         Understand cost behavior

·         Apply absorption ( full) and variable ( direct) costing methods

·         Apply joint product & by-product costing

·         Understand when to apply job order costing and process costing

·         Identify the meaning and components of life cycle costing

·         Differentiate between  plant-wide and departmental overhead Rate

·         Understand how to allocate service department costs

·         Understand activity based costing approach.

·         Understand standard cost approach

Course Outline:

1-       Cost Terminology

·         Key Cost Concepts: Cost, Loss, and Waste.

·         Expense and Expenditure

·         Product and Period Costs (Inventoriable and Non-inventoriable)

·         Manufacturing and Non-manufacturing

·         Direct and Indirect

·         Fixed and Variable

·         Cost Behavior and Cost-Volume-Profit / Break-Even analysis

2-       Overhead Allocation

·         Considerations in Measuring & Assigning Overhead

·         Plant-wide and Departmental Overhead Rate

·         Allocation of Service Department Costs

·         Activity Based Costing

o        Undercosting and Overcosting

o        Activities, Drivers, and Activity Measures

o        Advantages/disadvantages of ABC

3-       Cost Accumulation Systems

·         Absorption ( Full) and Variable ( Direct) Costing

·         Joint product & by-product costing

·         Job Order Costing

·         Process Costing

·         Life Cycle Costing

·         Quality Costing

4-       Standard Costs and Control

·         What is cost control?

·         Setting Standards

·         Variance analysis

·         Efficiency/price variances

·         Variance Investigation.

Who Can Benefit

Controllers, senior managers, executives and those with expertise in their own fields who need to acquire expertise in cost planning and control

UP

AF13-DEVELOPING WORK METHODS

Course Description:

There is no right way to do a wrong thing. To prevent inefficient ways to work, the time study analyst is concerned fundamentally with the speed at which the operation is performed and the method, or way, the operation is performed. The analyst is also responsible for studying worker motions, dividing the job into fundamental elements, eliminating useless motions, improving the sequence of motions, and determining better, more efficient methods for workers to follow.

This training course provides hundreds of labor-saving ideas gleaned from the sewn products industry which is one of today's most labor intensive industries and presents them in such a way that they can be adopted to any manufacturing setting. If you are interested in advancing your Time Study technician's skills, knowledge and methods improvement abilities in order to increase productivity per man-hour and reduce costs, then this training course is for you. This training course contains methods considerations, better approaches to job efficiency, ideas, suggestions, wisdom and tools that all informed time study practitioners should consider before setting production standards.

Course Goal:

To enhance the participants knowledge, skills and abilities necessary for developing a better work methods

Course Objective:

By the end of this Course the participant will be able to:

·             Develop preferred methods

·             Understand methods engineering

·             Employ 12 operation analysis tools

·             Understand 3 main factors concerning the use of the human body

·             Understand 13 considerations to be used when improving work place conditions and arrangement

·             Understand 10 considerations regarding machinery design

·             Understand how to design and build efficient work aids

·             Use the methods and work aids checklist

·             Understand the10 factors to be carfully examined when looking at the elements

·             Understand the allowance for the differences in people

Course Outline:

·             Developing Preferred Methods

·             Methods Engineering

·             Operation Analysis Tools

·             Main Factors Concerning the Use of the Human Body

·             Considerations to Use When Improving Work Place Conditions and Arrangement

·             Considerations Regarding Machinery Design

·             How to Design and Build Efficient Work Aids

·             Methods and Work Aids Checklist

·             Summary of Work Simplification

·             What are Elements?

·             Breakdown of  Pick-up Elements

·             Factors to Carfully Examine When Looking at the Elements

·             Allow for the Differences in People

·             The Time Study Person Must Record Required Job Quality

Who Can Benefit

Managers, supervisors and any one who wish to improve their writing and presentation competencies

UP

AF14-EFFECTIVE INTERNAL AUDITOR

Workshop Description

The role of the internal auditor has changed dramatically over the last decade and that it will continue to do so. The question is: how many internal audit functions comprise staff with the right skills and competencies? No doubt there is a true need for not just the technical skills but the interpersonal skills that really make individuals effective in their roles.

This 5-day workshop will give participants the opportunity to try out some of the skills needed to become effective Internal Auditors

Workshop Goal

To enhance the participants’ Knowledge, Abilities and Skills necessary to employ the financial controls and audits and to prepare the financial and control reports

Workshop Objectives

By the end of the workshop the participant will be able to:

·         Define internal auditing and internal control

·         Determine the Elements of manual and computerized internal control system

·        Evaluate internal control system         

·         Develop internal control system

·         Act as an internal auditor

Workshop Outline

·         Internal control

·         Internal auditing and internal control

·         Elements of manual and computerized internal control system

·         Internal auditing: The most important element of internal control system

·        Evaluation of internal control system         

·         Development of internal control system

o       Internal control and Human Behavior

o       Objective

·     How to Act? (Employ the Right People, Use modern Techniques, Interview to Elicit Information, Report Writing)          

Who Can Benefit

Accountants, Internal Auditors, Controllers, and Executives

UP

AF15-FINANCE FOR NON-FINANCIALS

Workshop Description

Managers have financial responsibilities and many have budgets to write and control and face many decisions that require evaluating the cash flows associated with projects. Based on numerical illustrations, this course aims to break down some of the financial barriers in an entertaining and informative style, with numerous examples. Bring your calculator! It gives an insight into the world of finance for non-financial managers and professionals.

Workshop Goal:

To enhance the participants’ knowledge, skills, and abilities in the field of finance and budgeting,

Workshop Objectives:

By the end of the workshop the participant will be able to:

·         Understand the financial and accounting terms used in business.

·         Develop skills in financial literacy.

·         Understand the main financial statements and how to be used to monitor and control business performance.

·         Understand the financial language, asking relevant financial questions, and making business decisions using financial criteria.

·         Highlight the need for good budget construction and the basic techniques for budgetary control.

·         Develop operating budgets

·         Understand how cash budgeting can affect motivation and control

Workshop Outline

1.      Finance and Accounting

·         The World of Finance and Accounting.

·         Why Do We Have Accounting Systems?

·         The Goal of Good Management is to Create Value

·         The Three Management Functions

·         Financial vs. Managerial Accounting

·         New Management Trends to Create Value

2.      What is Profit?

·         Definition and Importance of Profit.

·         How much profit can we make?

·         Management by the Numbers

·         Volume Based Cost Behavior Patterns

·         Contribution Margin Based income Statements

·         Cost-Volume-Profit (CVP) Analysis

·         Using CVP to Manage

·         How does the CVP Chart Change to Reflect Cost Management

·         What Questions Can we Answer?

3.      The importance of Cash Flow

·         How money works in business.

·         Why profit and cash are not the same.

·         How much cash can we take?

·         The Cash Management Process

·         Planning Motivates Control Through Evaluation

·         Budgeting in an Uncertain Business World — Solvency Management

·         Factors Influencing the Need for Budgeting & Planning

·         What Makes the Budgeting Process Successful?

4.      Breaking Down the Financial Statement Barrier

·         Assets and Liabilities.

·         Working Capital Management.

·         Key ratios to improve asset utilization and profitability.

5.      Expenditure Planning and Financial Decision Making

·         Cost benefit analysis.

·         Capital expenditure decisions.

o        What is Capital Expenditure?

o        Nature of Capital Investment Decisions

o        What is Capital Budget?

o        Stages of Capital Budgeting Process

o        Relevant Cash Flows

o        Methods of Evaluating Capital Investments

o        Sensitivity analysis.

6.      Budgeting for Profit

·         Definition of a budget.

·         Purpose of a budget.

·         How to construct a budget.

·         How to use a budget for financial control.

7.      Motivation and Control through Budgeting

·         The Motivational Cycle

·         The Control Environment

·         How Much Accounting Control Do We Need?

·         Types of Controls

·         Centralized vs. Decentralized Controls

·         Responsibility Centers used in Accounting Control Systems

·         Limitations for ‘Management by the Numbers’ or Accounting Control

·         Evaluation of Managers and Divisions

·         Cost of Capital Employed

·         Accounting Performance Measures

·         Do Our Accounting Systems Encourage Good Judgment?

Who Can Benefit

Non-financial managers and anyone from non-financial disciplines who needs to know more about business finance terminology.

UP 

AF16-FINANCE PLANNING AND BUDGETING IN OIL AND GAS COMPANY

Course Description

This is an intensive, practical workshop designed to eliminate the "mystery" from the financial side of the participant’s business, through the enhancement of the participant’s Knowledge, Abilities and Skills necessary to understand finance and accounting issues needed for his position and to incorporate financial decisions and issues into his operating decision. The workshop begins with an overview of petroleum accounting principles and concludes with a discussion of budgeting and capital allocation. Using Oil and gas industry examples and exercises, the participants will learn how financial structure determines the company’s cost of capital. Also, they will learn how to analyze company performance by reviewing financial statements. Participants at this five-day workshop will learn about the financial considerations of international operations including production sharing and joint operating agreements

Course Goal:

To enhance the participant’s knowledge, abilities, and skills necessary to financial planning and budgeting and to use the results to increase the value of his organization

Course Objectives

By the end of the course the participant will be able to:

·             Understand the difference between successful efforts and full cost accounting methods and its implications

·             Benchmark his company's financial performance against global competitors,

·             Learn how to identify, measure and manage risk and how it can affect a firm's capital structure

·             Understand the workings of capital investments and what financial resources are needed to sustain future growth

·             Gain a broad understanding of financial concepts such as NPV, IRR, WACC and ROCE and their differences

Course Outline:

1.            Overview of Oil and Gas Accounting

·             Overview of petroleum accounting principles;

·             Accounting for drilling and equipment costs;

·             Successful efforts vs. full-cost accounting;

·             Depreciation, depletion and amortization and accounting for impairment of proved properties

2.            Corporate Reporting and Analysis

·             Financial statement analysis,

·             Performance measures and peer company analysis

3.            Capital Structure and Sources of Funds

·             Financial leverage,

·             Other people's money,

·             Debt,

·             Equity capital,

·             Carried interest and leasing

·             Cost of capital,

·             Debt capital and equity capital

2.            Financial Planning

·             Financial Forecasting

·             Percent of Sales Method

·             Predicting Discretionary Financing Needs

3.      Budgeting and Capital Allocation

·             Budgeting process,

·             Capital Expenditure Evaluation

·             Capital allocation

6.      Global Risk Management

·             Significant risk areas,

·             Measuring risk with expected value and variance,

·             Introducing uncertainty into project analysis and managing price risk

Who Can Benefit

Controllers, senior finance managers, executives and those with expertise in their own fields who need to acquire expertise in financial planning and budgeting in oil and Gas Companies

UP

 AF17-FINANCIAL AUDITING AND CONTROL

Course Description:

This 5-day course will provide a framework of practical information for a clear understanding of financial auditing and control. This course provides guidelines for establishing a system of internal controls and internal audits that will safeguard assets especially cash.

Course Goal

To enhance the participants’ Knowledge, Abilities and Skills necessary to employ the financial controls and audits and to safeguard assets especially cash, and prepare the financial and control reports.

Course Objectives