Copyright -- CONTENTS -- FIGURES AND TABLES -- AUTHORS -- FOREWORD -- ACKNOWLEDGEMENTS -- ABBREVIATIONS -- PREFACE -- 1 FINANCE AND ACCOUNTS: THE BASICS -- OBJECTIVES -- THE PURPOSE OF BUSINESS -- COMPANIES OR CORPORATIONS -- HOW A BUSINESS WORKS -- EXAMPLE 1.1 PART 1: HOW TRANSACTIONS AFFECT THE STATEMENT OF FINANCIAL POSITION -- EXAMPLE 1.1 PART 2: TYPICAL ADJUSTMENTS -- EXAMPLE 1.1 PART 3: THE INCOME STATEMENT -- EXAMPLE 1.1 PART 4: THE STATEMENT OF CASH FLOWS -- RELATING CASH FLOW TO PROFIT -- PUBLISHED ACCOUNTS -- PLANNING AND MANAGEMENT ACCOUNTING -- CASH FLOW FORECASTING -- NON-BUSINESS ORGANISATIONS -- SUMMARY -- 2 DECISIONS, DECISIONS… -- OBJECTIVES -- WHAT IS CASH FLOW? -- A FINANCIAL CASE -- WHAT IS DISCOUNTED CASH FLOW? -- THE COST OF MONEY -- PRESENT VALUE -- NET PRESENT VALUE (NPV) -- INTERPRETING PRESENT VALUES -- OPPORTUNITY COST -- 'FINANCIAL CASH FLOWS' -- INFLATION -- SUMMARY -- 3 FINANCIAL CASES AND BUSINESS CASES -- OBJECTIVES -- COST CASES -- FINANCIAL CASES -- BUSINESS CASES -- WHAT IS A BENEFIT? -- CASH FLOW AND PROFIT -- A BASIS FOR INVESTMENT DECISION-MAKING -- SUMMARY -- 4 WHEN IS A BENEFIT NOT A BENEFIT? -- OBJECTIVES -- HOW TO BUILD AN IT FINANCIAL CASE -- EXAMPLE 4.1: DESCRIPTION -- EXAMPLE 4.1: SOLUTION -- EXAMPLE 4.1: EXPLANATIONS -- WHAT CASH FLOWS ARE RELEVANT? -- IS IT A WORTHWHILE INVESTMENT? -- SUMMARY -- 5 HOW FINANCIAL CASES ARE EVALUATED: PART 1 -- OBJECTIVES -- PRESENT VALUE REVISITED -- THE COST OF CAPITAL -- WEIGHTED AVERAGE COST OF CAPITAL (WACC) -- APPLYING PRESENT VALUES -- THE NPV DECISION RULE -- PROFITABILITY INDEX -- INTERNAL RATE OF RETURN (IRR) -- THE IRR DECISION RULE -- NPV, IRR AND RISK -- SUMMARY -- 6 HOW FINANCIAL CASES ARE EVALUATED: PART 2 -- OBJECTIVES -- PAYBACK -- PAYBACK AND RISK -- DISCOUNTED PAYBACK -- RETURN ON INVESTMENT (ROI) -- ROI AND RISK -- SHAREHOLDER VALUE ADDED (SVA).

EXAMPLE 6.1: SVA -- THE METHODS COMPARED -- SUMMARY -- 7 THE EFFECTS OF TAXATION -- OBJECTIVES -- BUSINESS TAX -- 'DEPRECIATION ALLOWANCES' -- HOW DOES TAX AFFECT AN IT FINANCIAL CASE? -- AFTER-TAX EVALUATION OF AN INVESTMENT -- THE RESULTS COMPARED -- TAXATION AND LEASING -- SUMMARY -- 8 DEPRECIATION OF IT ASSETS -- OBJECTIVES -- DEPRECIATION OF IT ASSETS -- STRAIGHT-LINE DEPRECIATION -- REDUCING BALANCE DEPRECIATION -- LOSS ON DISPOSAL -- FREQUENCY OF DEPRECIATION CHARGE -- DEPRECIATION OF UPGRADABLE ASSETS -- SUMMARY -- 9 IT FINANCING AND LEASING -- OBJECTIVES -- INTRODUCTION -- WHAT IS A LEASE? -- LEASE DEFINITIONS -- FINANCE LEASES -- HOW ARE FINANCE LEASES ACCOUNTED FOR? -- SALE AND LEASE-BACK -- LEASING AND FINANCIAL CASES -- OPERATING LEASES -- RESIDUAL VALUE (RV) -- HOW ARE OPERATING LEASES ACCOUNTED FOR? -- RISK AND REWARD -- VARIATIONS ON THE LEASING THEME -- EXCHANGE LEASES -- RENTAL -- INTERNATIONAL FINANCING -- 'SMALL TICKET' LEASING -- THE LEASING CONTRACT -- THE FUTURE -- SUMMARY -- 10 OUTSOURCING: FINANCIAL ASPECTS -- OBJECTIVES -- WHAT IS OUTSOURCING? -- OUTSOURCING IN PERSONAL LIFE -- OUTSOURCING IN BUSINESS -- FINANCIAL CHARACTERISTICS OF OUTSOURCING -- RISK AND SERVICE LEVELS -- FINANCIAL EVALUATION METHODS -- SERVICE ENHANCEMENTS -- INFLATION -- HOW TO BUILD AN OUTSOURCING FINANCIAL CASE -- A WORKED EXAMPLE -- EXAMPLE 10.1: DESCRIPTION -- STEP BY STEP TO THE SOLUTION -- THE TABLES -- EXAMPLE 10.1: EXPLANATIONS -- EXAMPLE 10.1: SUMMARY -- OUTSOURCING DECISION CRITERIA -- MANAGING THE PROCESS -- SUMMARY -- 11 BUDGETING, COSTING AND PRICING: THE BASICS -- OBJECTIVES -- BUDGETING -- DEPARTMENTALISED BUSINESSES -- COST CENTRES AND PROFIT CENTRES -- CHARGE-OUT -- RESPONSIBILITY ACCOUNTING -- THE IMPORTANCE OF OPERATING PROFIT -- CAPITAL EXPENDITURE -- REVENUE EXPENDITURE OR 'EXPENSE' -- BUDGETS AND LEASING -- COSTING AND PRICING.

VARIABLE COSTS -- FIXED COSTS -- CONTRIBUTION -- PRICE/VOLUME CALCULATIONS -- COSTING IN MANUFACTURING -- ART VERSUS SCIENCE -- SUMMARY -- 12 FINANCIAL ANALYSIS: THE BASICS -- OBJECTIVES -- FINANCIAL ANALYSIS -- EXAMPLE 12.1: A SAMPLE COMPANY -- PROFITABILITY RATIOS -- ACTIVITY (OR CAPITAL PRODUCTIVITY) RATIOS -- LIQUIDITY (OR CASH MANAGEMENT) RATIOS -- GEARING OR LEVERAGE RATIOS -- STOCK MARKET RATIOS -- OTHER RATIOS -- SHAREHOLDER VALUE ADDED -- SUMMARY -- APPENDICES -- A1 DISCOUNT TABLES -- THE PRESENT VALUE OF A LUMP SUM -- THE PRESENT VALUE OF AN ANNUITY -- ANNUAL EQUIVALENT ANNUITY -- A2 FINANCIAL CHARACTERISTICS OF DIFFERENT BUSINESSES -- MANUFACTURING BUSINESSES -- BUYING AND SELLING BUSINESSES -- SERVICE BUSINESSES -- A3 PUBLISHED ACCOUNTS -- A4 ACCOUNTING FOR LONG-TERM CONTRACTS -- A5 DEBIT AND CREDIT -- GLOSSARY -- FURTHER READING -- INDEX -- Back Cover.