INVEST FOR EXCEL®
Features and Benefits
Features
- Investment calculation
- Profitability analysis
- Capital budgeting with depreciations and realizations
- Income statement, Cash flow analysis, Working capital and Balance sheet
- The most common investment performance ratios: Net Present Value (NPV), Internal Rate of Return (IRR), Pay-back period
- RONA, EVA, DCVA and more
- Comparison of different scenarios and investment alternatives
- Margin calculation as a difference between investment compared to status quo
- Automatic consolidation of various investments
- Break-even and sensitivity analysis in tables and charts of discount rate, investment, income, costs variables affecting profitability indicators
- Automatically generated reports i.e. balance sheet or profitability report
- Investment proposal template
- Enterprise valuation
- Impairment testing
- Financing Selection of interface languages: English, German, Swedish, Finnish, Polish, Spanish, Russian, Serbian and Bulgarian
- Currency conversion
Benefits
- Invest for Excel® provides a complete overview on investment planning or business valuation enhancing the quality of management process
- Great modelling tool for any kind of business
- Structure and clear functionality with the flexibility of MS Excel-based software
- Standardized investment calculations and proposals to enable easy comparison or consolidation of various projects
- Calculation errors are eliminated
- Nothing of importance is by chance left out of the calculation, as Invest for Excel guides the user in calculations
- Calculations and reports can be distributed as MS Excel files
- Excellent presentation tool, for example in steering committee meetings
- Calculations made in Invest for Excel can be linked to other calculations made in Excel worksheets
- Range of ready reports can serve as a complete package for financing applications
- User interface is easy to learn because it is based on MS Excel, the most widely used spreadsheet application today
- Visual menus, manual, software guide, and dialog boxes give a friendly framework of work
- Through 8 available languages that can be changed while working, the tool facilitates management of international business
Application Areas
Investments
Investments are sometimes huge projects and even more huge calculations. Our customers in metal, energy, forest, paper, automotive or chemical industries know something about it, as well. Invest for Excel® easily handles the complicated models, but you will notice that your calculation is transparently organized.
All you need to do is define calculation template, enter investments, expected income, costs and working capital. The input variables can be as complicated and have as many dependants, as you want. In other words, if you need to analyze your production process or evaluate building an energy plant, you can do it with Invest for Excel® You can easily model your calculation through applying software functions or Excel formulas.
As a result, you receive a detailed profitability analysis, a great variety of break-even and sensitivity analysis. The results are reliable and correct. You can also consolidate, compare various investments or calculate a marginal effect of investment. You have saved a lot of time and others understand your approach, too.
Invest for Excel® does not require inputting your numbers from the very beginning. If you have other calculations in Excel, you can copy or link without effort.
Business Planning
With Invest for Excel® you model all cash flow-effective measures and events in business activity planning. The goal is to get a general view of the financial consequences of a plan. Usually a company has several implementation alternatives. With Invest for Excel®, those alternatives are easy to compare. The software also supports a follow-up of a plan.
The calculation process in budgeting is in principle the same as in business activity planning, but the target is different and the time window is usually 12 months. Invest for Excel® can be used for both long and short intervals, which makes practical work easier.
Cash Flow Modelling
Invest for Excel® can be used in decisions regarding outsourcing, marketing, R&D, human resources, start-up of a new business or expansion into a new market, for example.
When considering the effects of such decisions, both project lifecycle and cost of capital should be taken into account. Because there are many ways to achieve the target, evaluations of the financial consequences require appropriate applications and a systematic process. Invest for Excel® strengthens your capability to make the right decisions.
Datapartner has since its foundation in 1987 worked on such areas of decision-making that has a decisive meaning for the future cash-flow of the company. We see a possibility in cash-flow based management to persistently build the success of the company.
Lifecycle Costing
When companies assess a product, solution or technology, lifecycle cost and its impact on long-term profitability is an obvious part of investment calculations. Still many decision-makers seem to be making decisions based on today's cost, with little consideration for the effect of the lifecycle cost (LCC).
Lifecycle costing is a challenging task due to many reasons; complex business environment, lack of information, conflicting arguments, no standard methods for calculating LCC. Only a few companies apply lifecycle costing even if strategically focused efforts on lifecycle costing can generate significant financial returns.
Invest for Excel® offers you an easy-to-use tool for managing all financial parameters of LCC. The key in using the software is that the user can focus on analysis of his business case, while the software guides the user through the calculation process.
Valuation
The Enterprise version of Invest for Excel® gives you a discounted cash flow (DCF) -based tool for enterprise or business valuation. You can consider all components of income statement and balance sheet to be able to complete your analysis of future cash flow. With historical data that you may input, link or import, you ensure a comprehensive perspective in your calculation. Break-even analysis helps you find the DCF-based value of your modelled business.
The acquisition is reflected in the Group P&L account, Cash Flow statement and Balance sheet.
Impairment testing - Recoverability Test
Invest for Excel®, Enterprise edition, includes functionality for impairment test in accordance with IFRS, US GAAP and some national Gaaps. With this software it is easy to make cash flow modelling for calculation of value in use. Goodwill as well as other assets can be tested. Invest for Excel® guides you during the analysis process. Protected and tested calculation logic ensures correct and comparable results in annual impairment tests. In addition, the software produces a verification of impairment test for annual reporting.
Functions supporting international accounting standards in Invest for Excel® Enterprise edition:
- Calculation of value in use or recoverable value
- Impairment testing of assets and goodwill
- Verification of impairment test
- Allocation of overvalue (IFRS3)
- Deferred tax liability
- Financial statements in IFRS form
- Capitalization of project borrowing costs
- Iteration of pre-tax discount rate
- Split in continuing operations and discontinuing operations
Examples of IFRS regulations implemented: IFRS3, IFRS5, IAS 16, IAS 23, IAS 36, IAS 38, IAS 40.
KEY DEFINITIONS:
What is value in use?
Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit.
What is a cash-generating unit?
Under international financial reporting standards, a cash-generating unit is the smallest group of assets that independently generates cash flow and whose cash flow is largely independent of the cash flows generated by other assets.
What is a recoverability test?
A recoverability test screens for asset impairment. If the future cash flows from the use of an asset plus its disposition are less than the carrying value of the asset, the asset is considered to be impaired.
What is impairment loss?
Impairment loss is the amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount.
What is carrying amount?
In accounting, carrying amount or carrying value or book value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset.
What is Recoverable amount?
Recoverable amount the higher of an asset's fair value less costs of disposal* (sometimes called net selling price) and its value in use
Why is Impairment testing required?
Impairment testing is required under the applicable accounting framework and standards. The regulations for conducting impairment tests have been summarized by the International Accounting Standards Board primarily in International Accounting Standard (IAS) 36 Impairment of Assets.
The main purpose of impairment testing is to bring the carrying value of a business in line with its recoverable value, which is the higher of the fair value less cost to sell and the value in use. In more practical terms, this means that the book value of a business should not exceed what the owners of the business expect to receive either from its open market sale or through its continuous use.
Impairment testing is an area in which significant judgment is required, and current market conditions only increase the complexity involved. Thus, in line with the relevant professional standards as set by the International Federation of Accountants, audit teams are encouraged to liaise with an accredited Valuation specialist upon need for performing impairment tests in line with the requirements of IAS 36.
When is impairment testing required?
Under the International Financial Reporting Standards (IFRS), impairment testing is required:
- at each reporting date when there is an indication of a possible impairment (a • triggering event), and annually for the following assets, regardless of whether there is a triggering event:• - intangible assets with an indefinite useful life and intangible assets not yet available for use, and - assets to which goodwill acquired in a business combination has been allocated.
- Indicators of possible impairment include an increase in the cost of borrowing and the carrying amount of the net assets of an entity exceeding its market capitalization. Significant adverse changes in the business climate may also be an indicator of impairment. As a result, under the current market conditions, it is likely that most entities will be carrying out detailed impairment testing of non-financial assets.
What is IAS 36 Impairment of Assets?
IAS 36 Impairment of Assets seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. the higher of fair value less costs of disposal and value in use). With the exception of goodwill and certain intangible assets for which an annual impairment test is required, entities are required to conduct impairment tests where there is an indication of impairment of an asset, and the test may be conducted for a 'cash-generating unit' where an asset does not generate cash inflows that are largely independent of those from other assets.
IAS 36 applies to (among other assets):
- land
- buildings
- machinery and equipment
- investment property carried at cost
- intangible assets
- goodwill investments in subsidiaries, associates, and joint ventures carried at cost
- assets carried at revalued amounts under IAS 16 and IAS 38
Financing
The financing module works in connection with the investment calculation. The program can calculate the need for finance in your investment calculation and return the financing expenses and loan instalments. You can build a financing package consisting of one or several loans. Loans can be added with just one click. Invest for Excel® version Enterprise controls several different types of loans and provides a wide selection of expense items related to the loans.
The financing expenses and loan instalments can be automatically added to the investment calculation, so that you have a complete overview of your project.
Post Implementation Reviews
Post Implementation Reviews are an important part of professional Capital Budgeting.
What is the post-audit and why is it so important?
The post-audit is an evaluation of the project after it has been started. This is critical to see if cash flows are happening as planned so that the company can expand an unexpectedly profitable project, and curtail or cancel an unexpectedly unprofitable project. Also, a low-return project could be modified to ensure a higher return before it is too late. The post-audit is crucial, because the future is often different than expected. The post implementation reviews give important feedback that leads to better planning in the future. Utilize the power of Invest for Excel® to improve quality of capital budgeting in your organization.
Product Calculations
The Invest for Excel® software is industry-independent for the execution of product calculations. The concepts of existing or new products, manufacturing process and product costing can be easily simulated with Invest for Excel®.
Invest for Excel® - Presentation Videos
Invest for Excel 3-minute solution introduction
Invest for Excel 12-minute tutorial
Say something interesting about your business here.
Overview Invest for Excel® Calculation Files
Production-Line-Example-Calculation-Snapshot (xlsx)
DownloadInvest for Excel® - Live Presentations
Book Live Web Meeting- Online Presentation of DataPartner's software.
You are welcome to take an opportunity to meet our expert and find out how you can improve your way of working with investments, budgeting or valuations. In order to participate in the Live Web Meeting you will need an internet access and a telephone.
In order to reserve your booking, send us an email. We will contact you and instruct how to login to the meeting. The meeting does not involve any costs for you.
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