May 23-25, 2011<br />Orlando, Florida<br />May 23-25, 2011<br />Orlando, Florida<br />Business Acumen for Learning Profess...
Foundation of Business Acumen is…<br />Understanding the Numbers.<br />2<br />p9<br />
3<br />Look beyond the stripes<br />p11<br />
Color Accounting Framework™- Definitions<br />SOURCE OF FUNDS<br />USE OF FUNDS<br />Assets<br />Liabilities<br />Obligati...
Accounting Layout & Logic<br />SOURCE OF FUNDS<br />USE OF FUNDS<br />Assets<br />Outsiders’ Claim<br />Bank loan 30 000<...
Organizing principles<br />
Perspective<br />7<br />p46<br />
To communicate effectively you must stay cognizant of the duality of accounting. <br />
Balancing the books<br />Sources of funds<br />Uses of funds<br />$99<br />$99<br />
Balancing the books<br />Sources of funds<br />Uses of funds<br />$99<br />$99<br />
Balancing the books<br />Sources of funds<br />Uses of funds<br />$99<br />$99<br />
Balancing the books<br />Sources of funds<br />Uses of funds<br />$99<br />$99<br />
The ONLY 4 transactions that exist<br />13<br />p24<br />
Debit accounts<br />Credit accounts<br />Crediting<br />Debiting<br />Crediting<br />Debiting<br />      Same = <br />   ...
Dec<br />Dec<br />Dec<br />Mar<br />Mar<br />Mar<br />Jan<br />Jan<br />Jan<br />Feb<br />Feb<br />Feb<br />Business recei...
Dec<br />Dec<br />Dec<br />Mar<br />Mar<br />Mar<br />Jan<br />Jan<br />Jan<br />Feb<br />Feb<br />Feb<br />Business pays ...
Gross Profit Margin<br />USE OF FUNDS<br />SOURCE OF FUNDS<br />Liabilities<br />Assets<br />Equity<br />Gross Profit<br /...
Color Accounting Framework™<br />Labor Consulting, Inc.<br />SOURCE OF FUNDS<br />USE OF FUNDS<br />Assets<br />Liabilitie...
EBITDA& EBIT<br />19<br />p53<br />
20<br />Cash Flow Statement<br />Operating activities<br />Investing activities<br />Financing activities<br />p54<br />
21<br />Global Retail – headline reviewtable<br />p38<br />
22<br />Global Retail – headline reviewtable<br />p38<br />
23<br />Global Retail – headline reviewtable<br />p38<br />
24<br />Global Retail – headline reviewtable<br />p38<br />
Liabilities<br />Assets<br />Income<br />Expenses<br />A value story…<br />The value cycle!<br />USE OF FUNDS<br />SOURCE ...
A whimsical farming analogy<br />26<br />p49<br />
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Business Acumen for Learning Professionals: An Innovative Approach (ASTD 2011)

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Session Number: TU312
Session Title: Business Acumen for Learning Professionals: An Innovative Approach
Session Start Date: 5/24/2011
Session Time: 4:00 PM - 5:30 PM
Room: W 311 AB

Published in: Business
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  • These two reports are very valuable and are key tools in making informed business decisions. They provide a moment in time view of how the business is doing.
  • This slide will be animated to introduce complete concept of financial reporting.Will be used as the basis for discussion to explain key accounting concepts such as:- turnover/sales *- operating profit *- EBITDA *- profit (Bottom Line) *- minority interests*- EPS *- profit margin *- cashflow statements *- Liquidity *- Capitalisation *
  • This slide will be animated to introduce complete concept of financial reporting.Will be used as the basis for discussion to explain key accounting concepts such as:- turnover/sales *- operating profit *- EBITDA *- profit (Bottom Line) *- minority interests*- EPS *- profit margin *- cashflow statements *- Liquidity *- Capitalisation *
  • Accounting is merely a way of organizing in such a way that you can quickly fin specific information.
  • An important element of accounting is maintaining the perspective of the entity.
  • For every transaction there is a balancing transaction.
  • Help them unlearnI can finish my MBA!
  • Help them unlearnI can finish my MBA!
  • Help them unlearnI can finish my MBA!
  • Help them unlearn good, bad, positive, negative, increase, decrease.I can finish my MBA!
  • This slide will be animated to introduce complete concept of financial reporting.Will be used as the basis for discussion to explain key accounting concepts such as:- turnover/sales *- operating profit *- EBITDA *- profit (Bottom Line) *- minority interests*- EPS *- profit margin *- cashflow statements *- Liquidity *- Capitalisation *
  • This slide will be animated to introduce complete concept of financial reporting.Will be used as the basis for discussion to explain key accounting concepts such as:- turnover/sales *- operating profit *- EBITDA *- profit (Bottom Line) *- minority interests*- EPS *- profit margin *- cashflow statements *- Liquidity *- Capitalisation *
  • Business Acumen for Learning Professionals: An Innovative Approach (ASTD 2011)

    1. 1. May 23-25, 2011<br />Orlando, Florida<br />May 23-25, 2011<br />Orlando, Florida<br />Business Acumen for Learning Professionals: <br />An Innovative Approach<br />Peter Frampton • 24 May 2011<br />4:00 PM - 5:30 PM<br />ASTD 2011 International Conference & Exposition <br />
    2. 2. Foundation of Business Acumen is…<br />Understanding the Numbers.<br />2<br />p9<br />
    3. 3. 3<br />Look beyond the stripes<br />p11<br />
    4. 4. Color Accounting Framework™- Definitions<br />SOURCE OF FUNDS<br />USE OF FUNDS<br />Assets<br />Liabilities<br />Obligation/<br />Outsiders’ Claim<br />Valuable<br />Balance <br />Sheet<br />Equity<br />Owners’ Contribution/<br />Claim<br />Profit Story<br />Expenses<br />Income<br />Income<br /> Statement<br />Generation of Value<br />Loss of Value<br />© ACA<br />
    5. 5. Accounting Layout & Logic<br />SOURCE OF FUNDS<br />USE OF FUNDS<br />Assets<br />Outsiders’ Claim<br />Bank loan 30 000<br />Property 50 000<br />1<br />Borrow/Lenders<br />=<br />Cash  600<br />+<br />Statement of Position<br />Stakeholders’ Claim<br />Cash  100<br />Endowment  20 000<br />Stakeholders<br />2<br /> 500<br />Surplus<br />500<br />Expenses<br />Income<br />Customers/Donors<br />Consulting 600<br />3<br />Taxi used100<br />Statement of Activity<br />© ACA<br />NFP CAF<br />
    6. 6. Organizing principles<br />
    7. 7. Perspective<br />7<br />p46<br />
    8. 8. To communicate effectively you must stay cognizant of the duality of accounting. <br />
    9. 9. Balancing the books<br />Sources of funds<br />Uses of funds<br />$99<br />$99<br />
    10. 10. Balancing the books<br />Sources of funds<br />Uses of funds<br />$99<br />$99<br />
    11. 11. Balancing the books<br />Sources of funds<br />Uses of funds<br />$99<br />$99<br />
    12. 12. Balancing the books<br />Sources of funds<br />Uses of funds<br />$99<br />$99<br />
    13. 13. The ONLY 4 transactions that exist<br />13<br />p24<br />
    14. 14. Debit accounts<br />Credit accounts<br />Crediting<br />Debiting<br />Crediting<br />Debiting<br /> Same = <br /> Opposite = <br />
    15. 15. Dec<br />Dec<br />Dec<br />Mar<br />Mar<br />Mar<br />Jan<br />Jan<br />Jan<br />Feb<br />Feb<br />Feb<br />Business receives payment at the same time as the income was earned<br />Earning income<br /><br />Liabilities<br />Assets<br />1<br />Equity<br /><br />Money received<br />Profit<br />Expenses<br />Income<br />Work performed<br /><br />X<br /><br /><br />2<br /><br />Business receives payment before the income was earned<br />(a)<br />(b)<br />Liabilities<br />Assets<br />Equity<br />Profit<br /><br />X<br /><br /><br />Expenses<br />Income<br />3<br />Money received<br />Work performed<br />A/R<br />Cash<br /><br />(a)<br />(b)<br />Business does the work first and then receives payment later<br />Liabilities<br />Assets<br />Equity<br />Profit<br />Expenses<br />Income<br />Money received<br />Work performed<br />
    16. 16. Dec<br />Dec<br />Dec<br />Mar<br />Mar<br />Mar<br />Jan<br />Jan<br />Jan<br />Feb<br />Feb<br />Feb<br />Business pays at the same time as incurring the expense<br />Incurring an expense<br />Liabilities<br />Assets<br /><br />1<br />Equity<br />Cash paid<br /><br />Profit<br />Expenses<br />Income<br />Expense incurred<br />X<br /><br /><br /><br />2<br />PrepaidExpense<br />Cash<br />Business pays before incurring the expense<br /><br />(a)<br />Liabilities<br />Assets<br />(b)<br />Equity<br />Profit<br />X<br /><br /><br />Expenses<br />Income<br />Money paid<br />Expense incurred<br /><br />3<br /><br />(a)<br />(b)<br />Business incurs the expense first and then pays for it later<br />Liabilities<br />Assets<br />Equity<br />Profit<br />Expenses<br />Income<br />Money paid<br />Expense incurred<br />
    17. 17. Gross Profit Margin<br />USE OF FUNDS<br />SOURCE OF FUNDS<br />Liabilities<br />Assets<br />Equity<br />Gross Profit<br />%<br />Income<br />Expenses<br />Indirect Expenses<br />Direct Expenses<br />Sales<br />© CAI 2008<br />
    18. 18. Color Accounting Framework™<br />Labor Consulting, Inc.<br />SOURCE OF FUNDS<br />USE OF FUNDS<br />Assets<br />Liabilities<br />Bank loan+300 000<br />Property+400 000<br />1<br />Borrow/Lenders<br />=<br />Cash +100 000<br />+<br />Balance <br />Sheet<br />Equity<br />Cash +6 000<br />Share capital+200 000<br />Investment/Owners<br />2<br />Cash -100<br />Profit<br />5 900<br />Profit Story<br />Expenses<br />Income<br />Net Income/Customers<br />Fees earned+6 000<br />3<br />Taxi used+100<br />Income<br /> Statement<br />© ACA<br />
    19. 19. EBITDA& EBIT<br />19<br />p53<br />
    20. 20. 20<br />Cash Flow Statement<br />Operating activities<br />Investing activities<br />Financing activities<br />p54<br />
    21. 21. 21<br />Global Retail – headline reviewtable<br />p38<br />
    22. 22. 22<br />Global Retail – headline reviewtable<br />p38<br />
    23. 23. 23<br />Global Retail – headline reviewtable<br />p38<br />
    24. 24. 24<br />Global Retail – headline reviewtable<br />p38<br />
    25. 25. Liabilities<br />Assets<br />Income<br />Expenses<br />A value story…<br />The value cycle!<br />USE OF FUNDS<br />SOURCE OF FUNDS<br />Equity<br />
    26. 26. A whimsical farming analogy<br />26<br />p49<br />
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