Financial Steering: Valuation, KPI Management and the Interaction with IFRS

by Martin Schwarzbichler, Christian Steiner, Daniel Turnheim

Overview

This book is a guide to how financial steering is designed, measured and implemented with a special focus on the energy industry. The authors offer an overview of and practical insights into the links between financial steering and accounting, and the temporary cycles of investment, divestment, return and loss, market highs and lows that form the framework of the entire energy industry across all value chain stages. The faster and the larger the cash cycles of investments and their returns, the greater not only the value created, but also the potential loss if the financial steering is not properly designed and managed. Value and value generation require an understanding of how value is both defined and measured in both and how the business/project economics model of a company works – financial steering provides this. Further, the book also discusses accounting topics such as impairments, new IFRS standards and the impact of accounting on key performance indicators of financial steering, which are associated with these investment decision valuations. The combination of accounting with the cash flow perspective provides a complete understanding of selected practical topics of financial steering which are explained in detail in a large number of examples and case studies.

The book is intended for a wide range of finance/controlling/treasury/accounting professionals and students. It is written in practical and simple terms to outline the financial steering concept and to bring it to life in daily work and in the decision making process for financial steering. All illustrated concepts are in the same manner relevant and applicable to all other asset-intense industry sectors and their financial steering processes.

Product Details

ISBN-13:	9783030093211
Publisher:	Springer International Publishing
Publication date:	02/08/2019
Edition description:	Softcover reprint of the original 1st ed. 2018
Pages:	480
Product dimensions:	6.10(w) x 9.25(h) x (d)

About the Author

Martin Schwarzbichler Head of Downstream Finance & Projects at OMV. With a degree in business administration, Martin Schwarzbichler joined OMV in 2003. He has had several positions in commercial and finance divisions, and has also dealt with many large scale infrastructure projects and financings.

Christian Steiner Member of the Austrian Enforcement Panel. With a degree in business administration, Christian Steiner joined the Enforcement Panel in 2017 and is responsible for performing enforcement audits of IFRS consolidated financial statements and management reports form listed companies. Before he joined the Enforcement Panel he was Senior Manager and member of the IFRS Desk of Ernst&Young. He is a chartered accountant and tax advisor.

Daniel Turnheim Senior Vice President Finance. With a degree in business administration, Daniel Turnheim joined OMV in 2002. He originally took on the position Head of OMV Corporate Controlling, beforebeing engaged to the Board of Directors of OMV Petrol Ofisi. In January 2011, he was appointed Chief Financial Officer of OMV Petrom, and finally took over the role of OMV SVP Finance in 2013.

Table of Contents

1. Introduction.- 2. Value Management for the Energy Industry: Financial KPI’s & Ambition Level.- 3. WACCs & Hurdle Rate.- 4. Single Investment Decision.- 5. Valuation.- 6. Economic Portfolio Decisions.- 7. Acquisitions – Impact on Consolidated Financial Statement.- 8. Impairment of Assets (Fixed Assets and Goodwill).- 9. Divestments.- 10. New IFRS Standards.- 11. Fair Value Measurement.- Appendices.- Index.