Practical Financial Modelling: A Guide to Current Practice (CIMA Professional Handbook)

This book offers a refreshingly simple approach to building and using financial models. Most models in use today are as unique as the individuals who create them, and becuase of this they can be difficult to understanf or use with confidence. This book offers a critical insight into current practice and presents a clear and robust modelling methodology with the specific aim of reducing unnecessary complexity in favour of a simpler and more reliable approach, which will be of interest to both experienced and novice modellers. This methodology has been used for some of the most modelling intensive transactions in the world, but is also equally applicably to reader creating simple cash flow forecasts.

Practical Financial Modelling bridges the gap between the Excel manual and the finance textbook. The principle is that once prople have the ability to structure a model, they have a better starting point from which to address the financial calculations. Quality control is built in from the outset. The key themes of the book are model structure, audit, formulae & functions, and model use, using basic Excel functionality throughout.

The author draws on years of teaching and consultancy to identify the elements of good practice and to highlight those areas and techniques which are prone to error and inconsistency. He explores the different ways in which problems can be solved by using practical worked examples. The reader can adapt the ideas and techniques for their own purposes.