The New CFO Financial Leadership Manual, 2nd Edition
About the Author.
Part 1 Overview.
1 CFO’s Place in the Corporation.
First Days in the Position.
Specific CFO Responsibilities.
Overview of the Change Management Process.
Differences between the Controller and CFO Positions.
Relationship of the Controller to the CFO.
2 Financial Strategy.
Inventory: Inventory Reduction Decision.
Fixed Assets: Lease versus Buy Decision.
Fixed Expenses: Step Costing Decision.
Payroll Expenses: Temporary Labor versus Permanent Staffing Decision.
Entities: Divestiture Decision.
Systems: When to Use Throughput Costing.
High-Volume, Low-Price Sale Decision Using Throughput Costing.
Capital Budgeting Decision Using Throughput Costing.
Make versus Buy Decision Using Throughput Costing.
3 Tax Strategy.
Accumulated Earnings Tax.
Cash Method of Accounting.
Mergers and Acquisitions.
Net Operating Loss Carryforwards.
Sales and Use Taxes.
4 Information Technology Strategy.
Reasons for Devising an Information Technology Strategy.
Developing the Information Technology Strategy.
Part 2 Accounting.
5 Performance Measurement Systems.
Creating a Performance Measurement System.
Asset Utilization Measurements.
Operating Performance Measurements.
Return on Investment Measurements.
Market Performance Measurements.
Quality of Earnings Ratio.
6 Control Systems.
Need for Control Systems.
Types of Fraud.
When to Eliminate Controls.
7 Audit Function.
Composition of the Audit Committee.
Role of the Audit Committee.
Purpose of the External Auditors.
Dealing with External Auditors.
Impact of the Sarbanes-Oxley Act on the Audit Function.
Role of the Internal Audit Function.
Managing the Internal Audit Function.
8 Reports to the Securities and Exchange Commission.
Securities Act of 1933.
Securities Exchange Act of 1934.
EDGAR Filing System.
Part 3 Financial Analysis.
9 Cost of Capital.
Calculating the Cost of Debt.
Calculating the Cost of Equity.
Calculating the Weighted Cost of Capital.
Incremental Cost of Capital.
Using the Cost of Capital in Special Situations.
Modifying the Cost of Capital to Enhance Shareholder Value.
Strategize Cost of Capital Reductions.
10 Capital Budgeting.
Net Present Value.
Internal Rate of Return.
Problems with the Capital Budget Approval Process.
Cash Flow Modeling Issues.
Funding Decisions for Research and Development Projects.
Capital Investment Proposal Form.
Post-Completion Project Analysis.
11 Other Financial Analysis Topics.
Business Cycle Forecasting.
Part 4 Funding.
12 Cash Management.
Cash Forecasting Model.
Measuring Cash Forecast Accuracy.
Cash Forecasting Automation.
Cash Management Controls.
Cash Management Systems.
Foreign Exchange with the Continuous Link Settlement System.
Natural Hedging Techniques.
13 Investing Excess Funds.
14 Obtaining Debt Financing.
Management of Financing Issues.
Credit Rating Agencies.
Accounts Payable Payment Delay.
Accounts Receivable Collection Acceleration.
Direct Access Notes.
Field Warehouse Financing.
Line of Credit.
Sale and Leaseback.
15 Obtaining Equity Financing.
Types of Stock.
Private Placement of Stock.
Layout of the Offering Memorandum.
Establishing a Valuation for the Offering Memorandum.
Swapping Stock for Expenses.
Swapping Stock for Cash.
Private Investment in Public Equity.
Committed Long-Term Capital Solutions.
Buying Back Shares.
16 Initial Public Offering.
Reasons to Go Public.
Reasons Not to Go Public.
Cost of an IPO.
Preparing for the IPO.
Finding an Underwriter.
Registering for and Completing the IPO.
Alternatives for Selling Securities.
Trading on an Exchange.
Restrictions on Stock in a Publicly Traded Company.
17 Taking a Company Private.
Going Private Transaction.
Filling Out Schedule 13E-3.
Part 5 Management.
18 Risk Management.
Risk Management Policies.
Risk Management Planning.
Manager of Risk Management.
Risk Management Procedures.
Types of Insurance Companies.
Evaluating the Health of an Insurance Carrier.
Annual Risk Management Report.
Key-Man Life Insurance for the CFO.
19 Outsourcing the Accounting and Finance Functions.
Advantages and Disadvantages of Outsourcing.
Controlling Supplier Performance.
Measuring Outsourced Activities.
20 Operational Best Practices.
21 Mergers and Acquisitions.
Evaluating Acquisition Targets.
Evaluate Acquisition Targets with Alliances.
Valuing the Acquiree.
Determining the Value of Synergies.
Form of Payment for the Acquisition.
Terms of the Acquisition Agreement.
When to Use an Investment Banker.
Accounting for the Acquisition.
22 Electronic Commerce.
Advantages of Electronic Commerce.
E-Commerce Business Model.
Restructuring the Organization for E-Commerce.
E-Commerce Legal Issues.
Part 6 Other Topics.
23 Employee Compensation.
Stock Appreciation Rights.
Bonus Sliding Scale.
Cut Benefit Costs with a Captive Insurance Company.
Applicable Bankruptcy Laws.
Players in the Bankruptcy Drama.
Creditor and Shareholder Payment Priorities.
Bankruptcy Sequence of Events.
Tax Liabilities in a Bankruptcy.
Special Bankruptcy Rules.
The Bankruptcy Act of 2005.
Alternatives to Bankruptcy.
A New CFO Checklist.
B Performance Measurement Checklist.
C Due Diligence Checklist.
Organization and General Corporate Issues.
Capitalization and Significant Subsidiaries.
Research and Development.