Downloaded 86 times
More Related Content
Similar to Business Acumen for Learning Professionals: An Innovative Approach (ASTD 2011)
Business Acumen for Learning Professionals: An Innovative Approach (ASTD 2011)
- 1. May 23-25, 2011Orlando,FloridaMay 23-25, 2011Orlando, FloridaBusiness Acumen for Learning Professionals: An Innovative ApproachPeter Frampton • 24 May 20114:00 PM - 5:30 PMASTD 2011 International Conference & Exposition
- 2. Foundation of BusinessAcumen is…Understanding the Numbers.2p9
- 3. 3Look beyond thestripesp11
- 4. Color Accounting Framework™-DefinitionsSOURCE OF FUNDSUSE OF FUNDSAssetsLiabilitiesObligation/Outsiders’ ClaimValuableBalance SheetEquityOwners’ Contribution/ClaimProfit StoryExpensesIncomeIncome StatementGeneration of ValueLoss of Value© ACA
- 5. Accounting Layout &LogicSOURCE OF FUNDSUSE OF FUNDSAssetsOutsiders’ ClaimBank loan 30 000Property 50 0001Borrow/Lenders=Cash 600+Statement of PositionStakeholders’ ClaimCash 100Endowment 20 000Stakeholders2 500Surplus500ExpensesIncomeCustomers/DonorsConsulting 6003Taxi used100Statement of Activity© ACANFP CAF
- 6.
- 7.
- 8. To communicate effectivelyyou must stay cognizant of the duality of accounting.
- 9. Balancing the booksSourcesof fundsUses of funds$99$99
- 10. Balancing the booksSourcesof fundsUses of funds$99$99
- 11. Balancing the booksSourcesof fundsUses of funds$99$99
- 12. Balancing the booksSourcesof fundsUses of funds$99$99
- 13. The ONLY 4transactions that exist13p24
- 14. Debit accountsCredit accountsCreditingDebitingCreditingDebiting Same = Opposite =
- 15. DecDecDecMarMarMarJanJanJanFebFebFebBusiness receives paymentat the same time as the income was earnedEarning incomeLiabilitiesAssets1EquityMoney receivedProfitExpensesIncomeWork performedX2Business receives payment before the income was earned(a)(b)LiabilitiesAssetsEquityProfitXExpensesIncome3Money receivedWork performedA/RCash(a)(b)Business does the work first and then receives payment laterLiabilitiesAssetsEquityProfitExpensesIncomeMoney receivedWork performed
- 16. DecDecDecMarMarMarJanJanJanFebFebFebBusiness pays atthe same time as incurring the expenseIncurring an expenseLiabilitiesAssets1EquityCash paidProfitExpensesIncomeExpense incurredX2PrepaidExpenseCashBusiness pays before incurring the expense(a)LiabilitiesAssets(b)EquityProfitXExpensesIncomeMoney paidExpense incurred3(a)(b)Business incurs the expense first and then pays for it laterLiabilitiesAssetsEquityProfitExpensesIncomeMoney paidExpense incurred
- 17. Gross Profit MarginUSEOF FUNDSSOURCE OF FUNDSLiabilitiesAssetsEquityGross Profit%IncomeExpensesIndirect ExpensesDirect ExpensesSales© CAI 2008
- 18. Color Accounting Framework™LaborConsulting, Inc.SOURCE OF FUNDSUSE OF FUNDSAssetsLiabilitiesBank loan+300 000Property+400 0001Borrow/Lenders=Cash +100 000+Balance SheetEquityCash +6 000Share capital+200 000Investment/Owners2Cash -100Profit5 900Profit StoryExpensesIncomeNet Income/CustomersFees earned+6 0003Taxi used+100Income Statement© ACA
- 19.
- 20. 20Cash Flow StatementOperatingactivitiesInvesting activitiesFinancing activitiesp54
- 21. 21Global Retail –headline reviewtablep38
- 22. 22Global Retail –headline reviewtablep38
- 23. 23Global Retail –headline reviewtablep38
- 24. 24Global Retail –headline reviewtablep38
- 25. LiabilitiesAssetsIncomeExpensesA value story…Thevalue cycle!USE OF FUNDSSOURCE OF FUNDSEquity
- 26. A whimsical farminganalogy26p49
Editor's Notes
- #4 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.
- #5 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 *
- #6 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 *
- #7 Accounting is merely a way of organizing in such a way that you can quickly fin specific information.
- #8 An important element of accounting is maintaining the perspective of the entity.
- #9 For every transaction there is a balancing transaction.
- #10 Help them unlearnI can finish my MBA!
- #11 Help them unlearnI can finish my MBA!
- #12 Help them unlearnI can finish my MBA!
- #13 Help them unlearn good, bad, positive, negative, increase, decrease.I can finish my MBA!
- #19 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 *
- #26 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 *