Finance for Non-Financial Managers in Telecommunications

Introduction to accounting and financial matters

• The importance of finance
• Financial accounting vs. management accounting
• Generally Accepted Accounting Principles (GAAP)
• Accountability and responsibility for financial information

Basic principles of accounting

• Use of financial statements
• Financial statements
• Financial statement build-up exercise
• Financial ratios

Network overview: What to cost

• Network generalities
• The evolution of wireless networks
• 2G networks
• 2.5G networks
• 3G networks
• Incumbent operator versus new operators

Costs, accounting, and activity-based cost evaluations

• Types of costs
• Revenue recognition and cost allocation
• Role of management accounting
• Activity-Based Costing (ABC)
• Costing in telecommunications
o The top-down approach
o The bottom-up approach

Analyzing business investments

• Investment analysis
• Cost of capital and hurdle rate
• Analysis methods and tools
• Communicating with financial decision-makers

Planning, budgets and performance measures

• Planning process overview
• Business plans, what ifs and strategy
• Balanced Scorecards and KPIs
• Budgets and control
• Variance analysis
• Measurement and continuous improvements