Budgeting and its usage in local financial organizations

This course is of interest to those who wants to know what is Budget, what its purpose, how it is prepared and how it is used by management to control operating processes of organizations. During this course you will get acquainted with the main types of budget and the main budgeting approaches which are used by leading international organizations. The course will develop a basic understanding of underlying budgeting principles and concepts, you will be able to prepare sales, production, direct materials and direct labor budgets. The course will give you full understanding of cash budgeting and cash control purposes. At the end of the course we will see how all this acquired knowledge is used by local financial organizations in practice.

Textbook and Course Materials

Required Text
The course presentation
Chapters 1, 2, 3

Recommended Texts and Other Readings

Articles on:
1. Evaluation and Critical evaluation of current budgeting practices – Dusan Banovic

2. Better Budgeting methods – a comparative effect analysis on traditional budgeting problems – Marcus Wienhold

3. Beyond budgeting – Axel Guðni Úlfarsson

4. Management Accounting – L.Eldenburg, A. Brooks

5. Effects of budgetary control and justice perceptions on the relationship between budgetary participation and performance – Rahim Yucel, Mehmet Gunluk

6. The Evolution of a Management Accounting Idea: The Case of Beyond Budgeting – Sebastian Becker, Martin Messner, Utz Schäffer

7. Better Budgeting methods – a comparative effect analysis on traditional budgeting problems – Marcus Wienhold

8. New ways of setting rewards: the Beyond Budgeting model – Hope J. and Fraser R.

9. Beyond Budgeting: How Managers Can Break Free from the Annual Trap – Hope J. and Fraser R.

10. Handbooks of Management Accounting Research 3-Volume Set – Christopher S. Chapman, Anthony G. Hopwood, Michael D. Shields

11. Performance Management and Budgeting: How Governments Can Learn from Experience – F Stevens Redburn, Robert J. Shea, Terry F. Buss, David M. Walker

12. Performance Measurement and Management Control: Innovative Concepts and Practices – Marc J. Epstein, Jean-Francois Manzoni, Antonio Davila

13. Government Budgeting and Expenditure Controls: Theory and Practice – A. Premchand

14. Management Accounting and Control: Tools and Concepts in a Central European Context – Michel Charifzadeh, Andreas Taschner

15. Бюджетирование, ориентированное на результат, на региональном и муниципальном уровнях: подходы и рекомендации – И.В. Стародубровская

16. www.accaglobal.com

17. www.accountingtools.com

18. www.hbr.org

19. www.investopedia.com

Other readings will be made available in the IAB E-learning platform

Course Structure:

The course is delivered in a presentation. The theoretical material is reinforced with numerical examples and its solutions. Course is backed with interactive course notes and also quizzes for understanding at the end of each session. The course is structured in three sessions, each of them lasting 2 hours.

Learning Outcomes:

• Define and identify types of budgets, different approaches of budgeting
• Prepare some components of Operational and Financial budgets
• Practical usage of budgeting methods and process in local financial companies

Learning Approach:

• Presentations and lectures
• Practical exercises