For whom?

The E-course 'Period Profit Measurement' gives a firm grip to:

• Whoever is profit accountable;
• Whoever is busy with performance measurement;
• Venture capitalists;
• Accountants, evaluating IFRS, US-GAAP;
• Tax consultants.

Contents

• Period Profit Measurement;
• Exact measurement of both Internal Profit and Fiscal Profit. Discussion on Published Profit (IFRS, US-GAAP);
• Application of The Profit Formula^®;
• Problem Definitions and ELABORATIONS of various exemplary problems.

Result

Complete elaboration of exemplary problems. Starting with a simple case and ending with all-embracing problems, true to life, at top level.

E-Teacher

The course is carried out by Ir Jan F. Jacobs, Independent Researcher Business Economics, Author, Consultant and freelance Teacher of Business Economics.

Investment

Period profit is supposed to be a non-measurable event, referred to as the search for the philosopher's stone and it all ends up in the adage 'profit is an opinion'. World-wide the traditional way is followed: profit is total sales minus total costs. Seemingly simple but highly treacherous. It involves a lot of work and it arrives at an arbitrary outcome for which there is no proof. The current systems of profit measurement can be criticized, since they do not really measure. Measurement is not an economic problem, but a technical one.

Profit is not just the consolidated annual profit of a group, but it mainly consists of the detail profits of one specific activity or company unit for short periods. Knowledge of these profits is essential to give guidance and to be able to adjust. In the end good management is about creating increased value, it is as simple as that. The total of the profit for a period is the sum of its parts. The profit on each product in that period is a part. Regarding the profit in addition to its composition - the profit contribution for each company unit, for each product (or group of products) and for each customer (or group of customers) - who would not want to be well informed on these matters? In other words, one can compare a company with a gang of skaters in a tournament. Some of them choose longer and others shorter distances. Different products, activities, units, divisions. The total result of the gang in the tournament is the addition sum of individual achievements. A year-ride, 13 rounds of 4 weeks each. Lap-times. From lap to lap, how many fingers of the coach go up, down? Acceleration and slowing-down during a race can be calculated by measuring the lap-times. Without knowing the lap-times, it is difficult to say anything meaningful about accelerations and decelerations during the course of the race.

Profit figures should not be blindly accepted, it is always necessary to see test and proof.

The fiscal profit figure is calculated mostly on the basis of HC (Historical Costs) and even the exchequer knows, it is no more than just a basis of levying that which has been counted in this artificial way. By way of setting higher or lower tax rates and by special arrangements, the exchequer is trying to keep in close touch with the reality. The same applies mutatis mutandis to the actually published profit figures in relation to changing pay-out ratios.

Verified internal profit and yield-figures - information produced for management decisions within the firm - are the most important considerations for the management of a company. What does the top executive say in the published reports of the company, if he doesn’t fully understand what has happened himself? In this E-course, you will be shown exactly how to measure period profit as accurately as possible. Not knowing the profit, consequently the yield i.e. the return to capital is also unknown, which is unsatisfactory, whereas a certain cost of capital applies to each and every company. In fact, the notion of effectiveness is lost, if one cannot measure the true period profit.

Click here for detailed instructions on how to obtain a copy of the reader.

You simply cannot afford - in your position - not to do so.