CHAPTER 4 FINANCIAL PLANNING AND CONTROL

ACCA F9 FM Financial Management (FM) 复习笔记（一）为了督促自己学习决定定期更新笔记，同时也可以和广大ACCA考生一起备考！主要是根据课本和老师的笔记整理的，如有错漏还望指正。

今天先来复习一下Part A Financial Management Function吧，主要就是记住一些考点供写选择题时用，大题这部分没啥好考的。

直接上笔记啦。

Chapter 1 Financial Management and Financial Objectives1.Three key decisions 财务管理的三大决策1）InvestmentCapital assets (考虑return&risk)Working capital (balance the risk of insolvency against the cost of funding)2）Finance (需要融资多少totally funding required，从哪儿融资internally vs. externally，用债还是权益debt vs. equity，长短期long term vs. short term)3）Dividend decision （发不发？发多少？何形式？影响因素：profitability, cash flow, growth, legal restriction, shareholder expectation）2.Corporate objectivesFinancial objectives1)Shareholder wealth maximization（最基本，首要）2)Maximizing profitshareholder wealth maximization 和Maximizing profit不同的方面：long term vs. short term issues, quality of earnings, profit does not equal to cash3)Earnings per share growth4)Other financial objectives(eg. Restriction on the company’s level of gearing, profit retention, a target for operating profitability)Non-financial objectives*market share increase is a non-financial object3.Stakeholders 利益相关者Agency theoryagency problemThe divorce of ownership and controlConflict of interestTakeovers并购Time horizonRiskReward解决方法：1)Managerial reward schemesPerformance related payRewarding managers with sharesExecutive share option plans(ESOPS)ESOPS优缺点Advantages：Goal congruenceImprove staff motivation and retention and thus lower expensive staff turnover costsDisadvantages:不一定能创造extra share value可能不是有主要影响的因素2)Regulatory requirementsCorporate governance （内治）（目标和规则？）Stock exchange listing regulations（外治）4.Not for profit organizationValue for money1.Economy given output, input最小化2.Efficiency given input, output最大化3.Effectiveness goals are achieved。

8
MediumTerm Goals
• Start college savings plan • Diversify investment portfolio
• Convert term life insurance policy to cash-value policy
• Contribute maximum to 401 (k) plan and IRA
13
Minimization of Taxes
Minimizing taxes must serve as a means to meet your objectives; it isn't an end in itself. An effective plan will minimize both income taxes and estate taxes.
6
Step 2: Set Goals
• What investment rates can you reasonably expect? • What about the rate of inflation? • How much involvement do you wish to have in managing your investments?
14
Step 4: Monitor Your Progress
• Here are the general questions to ask:
• Have your financial goals stayed the same? • Are you meeting your budget?
• Are you earning the investment rates of return you anticipated?

Management’s Review of the Financial Forecast
• Consultation with some key managers has yielded
the following revisions:
– Firm expects customers to pay quicker next year, thus
17-1
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.
20days 8.33x 4.00x 2.00x 30.00% 6.25x 2.50x 30.00%
2013F 10.00% 2.62% 8.77%
34.0 days 10.00x 3.57x 2.00x 40.40% 7.81x 1.98x 30.00%
Key Assumptions in Preliminary Financial Forecast for NWC
• Operating at full capacity in 2012. • Each type of asset grows proportionally with sales. • Payables and accruals grow proportionally with
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.

4-4
Financial Planning Process
• Planning Horizon - divide decisions into short-run decisions (usually next 12 months) and long-run decisions (usually 2 – 5 years) • Aggregation - combine capital budgeting decisions into one large project • Assumptions and Scenarios
– Dividends are the plug variable, so equity Assets increases at 15% – Dividends = 460 (NI) – 370 (increase in equity)Total = 90 dividends paid
• Case II
4-7
Example: Historical Financial Statements
Gourmet Coffee Inc. Balance Sheet December 31, 2009
Gourmet Coffee Inc.
Income Statement For Year Ended December 31, 2009
Percentage of Sales Approach
• Some items vary directly with sales, while others do not • Income Statement
– Costs may vary directly with sales - if this is the case, then the profit margin is constant – Depreciation and interest expense may not vary directly with sales – if this is the case, then the profit margin is not constant – Dividends are a management decision and generally do not vary directly with sales – this influences additions to retained earnings