Accounting for Financial Modeling
Master Accounting for Financial Modeling from Basics to Advanced Based On Real World Exercises
Accounting for Financial Modeling will give you the skills to understand and analyze the financial statements of public and private companies.
Students at FMO
Over 8 Hours
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Accounting for Financial Modeling Course - Objectives:
Accounting for Financial Modeling will give you the skills to understand and analyze the financial statements of public and private companies. The course covers essential and advanced topics related to the income statement, balance sheet, and cash flow statement, and will provide you with a robust skillset for analysis of advanced accounting issues that appear often in real-world financial analysis. The focus is on the US GAAP accounting, however, whenever the US GAAP deviates from the IFRS accounting, the difference will be reviewed.
In an online environment, you will go from basic accounting to advanced accounting topics relevant for investment analysis, debt structuring, and financial modeling of both public and private companies. This course is filled with quizzes and exercises that cover advanced accounting problems that you will not find in introductory accounting courses.
By the end of this course, you will have gained advanced accounting knowledge and you will be able to understand and analyze complex financial statements of public and private companies.
What This Course is About?
This course is about understanding the practical side of the complex accounting for public and private companies. In this course, we start with basic accounting subjects and quickly advance to complex issues that are not usually covered in most accounting courses.
The topics covered:
- Income Statement, Balance Sheet, and Cash Flow Statement;
- Accounts Receivable, Inventory, PP&E, Goodwill, Deferred Revenue, Accounts Payable;
- Net Operating Losses, Deferred Tax Asset & Liability;
- Revenue, COGS, SG&A, R&D, Depreciation, Amortization, Interest Expense, and Taxes;
- Debt & Equity Financing, APIC, Retained Earnings;
- Debt Financing Fees, Capitalized Interest, PIK Debt;
- Operating and Finance Leases;
- Bonds, Original Issue Discount & Premium;
- M&A Accounting;
You will learn about:
- How to account for different types of revenues, costs and expenses;
- How to account for assets and liabilities;
- How to account for equity;
- How to construct the income statement, balance sheet and cash flow statement;
- How to account for stock-based compensation;
- How to account for debt issuance costs, commitment fees, capitalized interest and PIK loans;
- How to account for bond premiums and discounts;
- How to account for operating and finance leases;
- How to account for M&A transactions;
This is the same comprehensive financial training used to prepare analysts and managers at top financial institutions and infrastructure funds.
How Does It Work?
The course length is over 8 hours.
First, we will review the basics of revenue, expenses, taxes, and net income in order to understand all essential components that make up the income statement. We will then construct an income statement for the fictitious ice cream business from scratch.
In the second part, we will review the accounting for assets, liabilities, and equity. We will cover the short-term and long-term assets such as cash, accounts receivable, prepaid expenses, inventory, PP&E, intangible assets, and goodwill. We will also cover short-term and long-term liabilities and equity such as accounts payable, deferred revenue, and debt and equity financing. We will end the second part of the course with homework focused on building the balance sheet of our ice cream business.
In the third part, we will focus on the cash flow statement and we will use the indirect method to generate the cash flow statement for the ice cream business.
In the fourth and final part, we will cover the advanced accounting topics focused on stock-based compensation, deferred taxes, debt fees, PIK loans, bonds, operating and finance leases, and M&A accounting.
Is This Course For You?
Yes, if you need to build, review or analyse financial models.
Typical students include analysts, managers, senior managers, associate directors, financial advisors, financiers and CFOs from project companies, investment banks, private equity and infrastructure funds.
You will need the basic knowledge of investment concepts such as NPV and IRR.
In this video we will go over the course structure and describe what we will learn in each part of the course. The course is divided into five parts:
- in part 1, we will learn basic project finance theory, so we understand in and outs of project finance before we begin modeling;
- in part 2, we will introduce the toll road case study, review the modeling methods to increase your excel productivity and we will jump into excel to model the construction period in our project finance model;
- in part 3, we will model out financial statements which will include income statement, balance sheet and cash flow statement.
-in part 4, we will introduce project finance items such as cover ratios, debt sculpting, debt service reserve account (DSRA), maintenance reserve account (MRA), revolver and shareholder loan. We will introduce to the problem of circularity in project finance models and we will learn how excel VBA can help us to resolve this circularity in excel. We will carry out valuation and model optimization in this part.
- in part 5, we will go over the advanced project finance modeling methods such as equity first financing, debt sizing macros, DSRA macros and scenario analysis automation.
It is highly recommended to watch this video so that you have the big picture of our journey ahead.
In this lesson we will be talking about what project finance is in the context of raising capital to fund construction of infrastructure projects. We will review distinctive features of the project finance and how project finance is different from the corporate finance.
In this lesson, we will review the important financial players, that participate in project finance transaction. These include investors, which are called project sponsors in project finance. Project sponsors, as we shall see, can further be divided into industrial investors, financial investors and sometimes government may also be an investor in the project.
Lender is another financial player which participate in project finance transaction. In fact, lender make project finance possible, because, typically, a majority of construction costs are financed with debt in project finance transaction. We shall see that due to transaction size, lenders typically unite and form a syndicate to arrange a syndicated loan to the project.
In this lecture, we will talk about the role of the Government and public private partnerships (PPP) in project finance. We will look at the development of PPA for power industry in the US and its effect on the PPP development. We will then review a dominant PPP form - concession agreement and its main varieties.
In this lesson, we will be looking at the risks in project finance transactions. As in any business venture, the project company in project finance faces 4 types of risks, these are project specific risks, macroeconomic risks, political risks and natural disaster risks. We will discuss these risks and see how they are allocated to the party which is best capable of managing those risks.
In this lesson, we will be looking at the capital and operating cash flows in project finance at different stages of project development. We will review the composition of project costs and project's Capex, different financing methods and forms, and important cash flows for lenders and equity investors.
In project finance, lenders usually impose strict restrictions on how the project company uses its cash. Cash movement in project company is controlled by means of control accounts and cash flow waterfall structure. In this lesson we will review these two important aspects of project finance transaction.
In this lesson we will talk about the covenants in project finance documentation. A covenant, also called an undertaking, is a promise by the borrower to the lender to do something or refrain from doing something in return for getting the loan. Covenants appear in the loan agreement. The financial covenants are extremely important to understand for modelers, because they are part of project finance models.
In this lesson we will review the case study which will serve as a basis for our project finance model throughout the course.
In this lesson, we will go over the modeling methods that we will be using in this course. These modeling methods are intended to make you and your model as productive as possible.
In this lesson we will model construction costs.
Frequently Asked Questions
The course is divided into 3 parts.
First, we will review the basics of mining projects development, so we understand all essential components of project finance transactions in the context of mining industry. Then, in the second part, we will review financial modeling methods and excel functions that we will use often in this course, to improve our productivity in Excel. We will begin financial modeling in the third part, where we will build a financial model for gold project.
Part 1 consists only of concept explainer videos and quizzes.
Each module in part 3 comes with concept explainer video, a quiz and a financial modeling video. Each financial modeling video has "before" and "after" excel files so you can practice what you have learnt from the video lessons. And, final lesson has final project finance model.
The course is based on the open-pit gold project case study.
Video content length 14 hours.
You’ll also get personalized, one-on-one support from me, so you can get your questions answered every step of the way.
When you enroll in Financial Modeling for Mining course, you'll be able to ask me questions around how to apply what you're learning in the course (see the screenshots below).
It's kind of sitting in the class asking me questions but through an ongoing email chain comments whenever you need help.
Absolutely. Each financial modeling video has "before" and "after" excel files so you can practice what you have learnt from the video lessons. And, final lesson has final project finance model.
Yes! If you don’t feel like you’re mastering project finance modeling and analysis in the first 30 days of your enrollment, just email me and let me know. I’ll give you a full refund - no questions asked.
No catch here. My objective is to get my courses out to as many students that needed them as possible, which results in lower pricing as a starting point. Right now, I’m able to answer questions thoroughly at this price point. However, as enrollments continue to grow, I will probably need to increase enrollment price to reduce the number of students enrolling every month so I can continue to provide the level of personal attention I want to for everyone who decides to enroll in the course.
- Introduction to Balance Sheet (7:03)
- Current Assets, Cash & Cash Equivalents (2:09)
- Accounts Receivable (2:24)
- Inventory (10:37)
- NCA: Property, Plant and Equipment (13:15)
- Prepaid Expenses (2:49)
- Intangible Assets (5:19)
- Goodwill (3:58)
- Accounts Payable (4:58)
- Deferred Revenue (11:32)
- Debt (9:36)
- Equity (12:25)
- Double Entry Accounting (11:36)
- Homework #3 (15:17)
- Homework #4 (66:47)
Other Courses Offered by FMO
M&A Modeling for Renewable Energy
Gain in-depth understanding of the Merger and Acquisition process with focus on the renewable energy sector
Project Finance Modeling for Infrastructure Projects
Learn Financial Modeling for Infrastructure Assets
FMO specializes in developing your financial modeling skills in project finance, investment banking, asset and wealth management. While we are a young firm, the team has decades of experience of complex financial transaction modelling.
The course is taught by Gregory Ahuy. Gregory started his career in investment banking as M&A analyst in London at Renaissance Capital - leading Russian investment banking firm https://www.rencap.com/. He was later relocated to Moscow to help with some of the biggest Russian M&A deals in mining and infrastructure sectors. Gregory continued his career at InfraRed Capital Partners, one of the largest infrastructure funds, focused on sourcing and executing greenfield and brownfield infrastructure projects in Eastern Europe. Later, Mr. Ahuy joined Eneco, one of the largest energy companies in the Netherlands where he led several renewable energy projects.
If you have any questions, please send us an email: [email protected]