In the interconnected global economy, capital budgeting decisions are no longer confined to a single market. Organizations pursuing cross-border expansions, mergers, and large-scale projects must navigate a complex web of international accounting standards, regulatory requirements, and diverse economic conditions. An inability to align with these global benchmarks can lead to inaccurate project valuations, suboptimal investment decisions, and a loss of investor confidence. Mastering international standards in capital budgeting is therefore a critical skill for any professional involved in strategic financial planning.

This intensive five-day training program is designed to equip you with the advanced knowledge and practical tools to excel in this globalized environment. The curriculum delves into the intricacies of international financial reporting standards (IFRS), Generally Accepted Accounting Principles (GAAP), and other key frameworks that govern capital expenditure. By focusing on real-world case studies and hands-on exercises, this course will empower you to confidently evaluate international projects, manage global financial risks, and create a robust framework for making capital investment decisions that drive long-term value.

Duration

5 days

Target Audience

• Chief Financial Officers (CFOs)
• Corporate finance managers
• Strategic planners
• Investment analysts
• Project managers and directors
• Internal and external auditors
• Treasury professionals
• Budgeting and planning specialists
• Mergers and acquisitions (M&A) advisors
• Financial consultants

Objectives

• Master the application of international financial standards to capital budgeting.
• Evaluate capital projects across different international jurisdictions.
• Conduct comprehensive risk analysis for global investment decisions.
• Formulate robust business cases and feasibility studies for international projects.
• Understand the impact of foreign exchange and country-specific risks on project valuation.
• Calculate and apply the appropriate cost of capital for international investments.
• Align capital budgeting processes with corporate governance principles.
• Effectively communicate and justify investment decisions to a global audience.
• Develop a framework for continuous improvement in capital budgeting practices.

Course Modules

Module 1: Foundations of Global Capital Budgeting

• The strategic importance of capital budgeting in a global context.
• Key terminology and foundational principles of capital investment.
• The role of international financial markets and institutions.
• An overview of the capital budgeting process from idea to implementation.
• The impact of globalization on traditional capital budgeting models.

Module 2: International Financial Reporting Standards (IFRS) and GAAP

• A deep dive into IFRS and its application to capital budgeting.
• Key differences and convergence efforts between IFRS and US GAAP.
• How to account for capital assets and expenditures under both standards.
• The implications of reporting standards on project valuation and cash flows.
• Case studies on applying IFRS and GAAP to real-world projects.

Module 3: Advanced Project Valuation Techniques

• Re-evaluating Net Present Value (NPV) and Internal Rate of Return (IRR) in a global context.
• Using Adjusted Present Value (APV) for projects with complex financing.
• The role of real options analysis in international investment decisions.
• Understanding payback period and profitability index as secondary metrics.
• Hands-on workshop on building discounted cash flow models for international projects.

Module 4: Global Risk Analysis in Capital Budgeting

• Identifying and mitigating political, economic, and sovereign risks.
• The impact of foreign exchange volatility on project cash flows.
• Analyzing country-specific risks using established indices.
• Developing sensitivity analysis and scenario planning for international projects.
• The use of Monte Carlo simulation for complex risk modeling.

Module 5: The International Cost of Capital

• Calculating the Weighted Average Cost of Capital (WACC) for a multinational corporation.
• The concept of a country risk premium and its impact on the cost of equity.
• Using the International Capital Asset Pricing Model (ICAPM).
• The effect of sovereign credit ratings on the cost of debt.
• Case studies on estimating the cost of capital for a global portfolio.

Module 6: Capital Rationing and Strategic Prioritization

• Methods for prioritizing and selecting projects under capital constraints.
• The strategic alignment of projects with corporate goals.
• The importance of non-financial factors in project selection.
• Developing a capital budgeting committee and governance structure.
• Practical exercises on capital rationing techniques.

Module 7: Auditing and Post-Implementation Review

• The importance of regular post-audits for capital projects.
• Best practices for performance measurement and variance analysis.
• Auditing the original assumptions and projections of a project.
• The role of internal audit in capital budgeting governance.
• Establishing a feedback loop to improve future decisions.

Module 8: Ethical Governance and Sustainability

• The role of corporate governance in capital allocation decisions.
• Integrating environmental, social, and governance (ESG) factors into budgeting.
• Ethical considerations in selecting international projects.
• The impact of global regulations on sustainable investments.
• Case studies on governance failures in capital investment.

Module 9: Capstone Project: Global Investment Proposal

• Participants will work in teams to prepare a full investment proposal for a global project.
• Applying all course concepts, from valuation to risk analysis and compliance.
• Presenting the proposal to a "Board of Directors" for approval.
• Peer review and feedback on the proposals.
• Finalizing a personal action plan to implement learned skills.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.