Advanced Project Accounting

Description

This is a practical course which seeks to provide participants with the necessary skills in order to carry out an efficient and effective project accounting. The course will show participants how to record and control project outlays and deal with the most common problems and strategies of how to overcome them. The course will train participants how to calculate the cost of capital and perform appropriate calculations such as discounted cash flow measures. The course will put and emphasis on practical case studies to provide participants with the ability to successfully conduct the project accounting.

Objective

The aims of this course are to:

i.                    Provide participants with the issues and strategies needed to record project outlays.

ii.                  To understand the impact of the weighted average cost of capital.

iii.                To ensure that correct procedures and performances are carried out.

iv.                To apply recent accounting innovations to the process of project accounting.

Course Outline

The training course will cover the following topics:

The Hurdle rate

·        General Principals of Risk and return

·        Types of risk

·        Measuring Risk

·        Risk Premium

·        Risk Mitigation

The Cost of Capital

·        The Cost of equity

·        The Cost of Debt

·        Weighted Average Cost of capital

Measuring Returns

·        What is a PROJECT

·        Measuring Returns: The Choices

·        Accounting Vs. Cash Flow Model

Investment Decision Rules

·        Accounting Based Rules

·        Cash flow Based Rules

·        Cash flow Analysis

·        Time Value of Money

Discounted Cash Flow Measures

·        Net Present Value (NPV)

·        Internal Rate of Return (IRR)

·        Capital Rationing

·        Comparing NPV and IRR

·        Profitability Index

Project Quality

·        Where Do Good Projects Come From?

·        Corporate Strategy and Project Quantity

Ensuring Correct Procedures and performance

·        Using Progress Reports and Cost Accruals

·        Payment Methods

o       Milestones

o       Bill of Quantity

·        Commission Costs

·        Retention of Money

·        Warranty

·        Performance Bonds