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BPM Financial Modelling

Financial Statements Modelling Exercise


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Primary Model Developer: BPM Financial Modelling


Cover Notes:
Provides a practical example of the modelling of live, three-way financial statements.

Table of Contents
Financial Statements Modelling Exercise
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Section & Sheet Titles


1. Assumptions
a. Time Series Assumptions
b. Opening Balance Sheet Assumptions
c. Projected Assumptions

2. Financial Statements
a. Income Statement
b. Balance Sheet
c. Cash Flow Statement

3. Appendices
3.1. Lookup Tables
a. Time Series Lookup Tables

3.2. Checks
a. Checks
- Error Checks
- Sensitivity Checks
- Alert Checks

Total Pages:

Page
3
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6
7

8
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10
11

12
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17
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20

Assumptions
Section 1.
Financial Statements Modelling Exercise
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Section Cover Notes:


This section contains assumptions relating to the forecasting of financial statement items.
Assumptions are contained within the Time Series worksheet, Opening Balance Sheet worksheet and the Project Assumptions worksheet.

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Time Series Assumptions


Financial Statements Modelling Exercise
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Time Series Assumptions


Core Time Series Assumptions
Title
Periodicity
Financial Year End
Start Date
Periods

Primary
Annual
31

12
1-Jan-12
5

Denomination

Historical & Forecast Period Titles


Include in Period Titles?
Actual Periods
Budget Periods

1
3
-

Data & Projections - Timing Assumptions


Data Term Basis
Data - Active Periods
Projections - Start Date

1
3
1-Jan-13

Notes:
- A Financial Year End assumption of 28th of February is assumed to be a month end financial year end, even in a leap year.
- The "Model Denomination" assumption will not necessarily automatically change the denomination of the outputs of this model.
- A "Budget Period" refers to either a period in the current financial year or periods containing combined actual and forecast data.
- "Data & Projections - Timing Assumptions" are used as the basis for related data and projections time series sheets.
- Use the bpmToolbox "Update Time Series Columns" tool to hide inactive data and projections time series periods.

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Opening Balance Sheet Assumptions


Financial Statements Modelling Exercise
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Opening Balance Sheet ($Millions)


Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets

1-Jan-12
-

Non-Current Assets
PP&E
Intangibles
Deferred Tax Assets
Other Non-Current Assets
Total Non-Current Assets

Total Assets

Current Liabilities
Accounts Payable
Interest Payable
Dividends Payable
Income Tax Payable
Other Current Liabilities
Total Current Liabilities

Non-Current Liabilities
Debt
Deferred Tax Liabilities
Other Non-Current Liabilities
Total Non-Current Liabilities

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Projected Assumptions
Financial Statements Modelling Exercise
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Year Ending 31 December

2012 (A)

2013 (A)

2014 (A)

2015 (F)

2016 (F)

Base Period Periodic Growth Rates (% per Year)


120.0
5.0%
3.0%
2.5%

2.5%

Revenues & Expenses


Sales

$Millions

Cost of Goods Sold

% of Sales

Operating Expenditure

$Millions

Capital Expenditure - PP&E


Capital Expenditure - Intangibles

$Millions
$Millions

45.0%

45.0%

45.0%

45.0%

45.0%

Base Period Periodic Growth Rates (% per Year)


27.0
2.5%
2.5%
2.5%

2.5%

7.0
1.0

7.5
1.3

8.0
1.5

8.5
1.8

9.0
2.0

Debtors & Creditors


Accounts Receivable

Debtor Days

30

30

30

30

30

Accounts Payable

Creditor Days

60

60

60

60

60

90.0%
95.0%

90.0%
95.0%

90.0%
95.0%

90.0%
95.0%

90.0%
95.0%

Assets
Depreciation & Amortisation Assumptions
Depreciation - PP&E
Depreciation - Intangibles

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% of Capex
% of Capex

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Financial Statements
Section 2.
Financial Statements Modelling Exercise
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Section Cover Notes:


Contains live, linked three-way financial statements (Income Statement, Balance Sheet & Cash Flow Statement).

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Income Statement
Financial Statements Modelling Exercise
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Year Ending 31 December

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2012 (A)

2013 (A)

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2014 (A)

2015 (F)

2016 (F)

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Balance Sheet
Financial Statements Modelling Exercise
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Year Ending 31 December

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2012 (A)

2013 (A)

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2014 (A)

2015 (F)

2016 (F)

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Cash Flow Statement


Financial Statements Modelling Exercise
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Year Ending 31 December

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2012 (A)

2013 (A)

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2014 (A)

2015 (F)

2016 (F)

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Appendices
Section 3.
Financial Statements Modelling Exercise
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Section Cover Notes:


This section contains Appendices

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Lookup Tables
Sub-Section 3.1.
Financial Statements Modelling Exercise
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Sub-Section Cover Notes:


This sub-section contains Lookup Tables

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Time Series Lookup Tables


Financial Statements Modelling Exercise
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Time Series Lookup Tables
Month Days

Names
Month Days
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

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Time Series Lookup Tables


Financial Statements Modelling Exercise
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Month Names

Names
Month Names
January
February
March
April
May
June
July
August
September
October
November
December

Denomination

LU_Mth_Names

Names
Denomination
$Billions
$Millions
$'000
$

Data Term Basis

LU_Denom
Billions
Millions
Thousands
Currency

Names

Data Term Basis


Active Data Periods
Projections Start

Periodicity

LU_Data_Term_Basis

Names
Periodicity
Annual
Semi-Annual
Quarterly
Monthly

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LU_Periodicity
Annual
Semi_Annual
Qtrly
Mthly

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Time Series Lookup Tables


Financial Statements Modelling Exercise
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Period Type Names


Period Type Names
Year
Half Year
Quarter
Month

Periods In Year
Periods In Year
1
2
4
12

Conversion Factors
Conversion Factors
10
100
1,000
1,000,000
1,000,000,000

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Names
LU_Period_Type_Names
Yr_Name
Half_Yr_Name
Qtr_Name
Mth_Name

Names
LU_Pers_In_Yr
Yrs_In_Yr
Halves_In_Yr
Qtrs_In_Yr
Mths_In_Yr

Names
Ten
Hundred
Thousand
Million
Billion

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Checks
Sub-Section 3.2.
Financial Statements Modelling Exercise
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Sub-Section Cover Notes:


This sub-section contains Checks

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Checks
Financial Statements Modelling Exercise
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Error Checks
1

Include summary in model name?

Errors Detected - Summary


Total Errors:
Error Message (Empty if None):

Error Checks
Error Checks
Balance Sheet

Check

Include?

Flag

Yes

Total Errors:

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Checks
Financial Statements Modelling Exercise
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Sensitivity Checks
1

Include summary in model name?

Sensitivities Detected - Summary


Total Sensitivities:
Sensitivity Message (Empty if None):

Sensitivity Checks
Sensitivity Checks

Check

Total Sensitivities:

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Include?

Flag
-

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Checks
Financial Statements Modelling Exercise
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Alert Checks
1

Include summary in model name?

Alerts Detected - Summary


Total Alerts:
Alert Message (Empty if None):

Alert Checks
Alert Checks
Opening Balance Sheet Assumptions

Check

Include?

Flag

Yes

Total Alerts:

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