Learning and Training Learning


Transfer Pricing

During this two-day training course, the participants will be able to get acquainted with various transfer-pricing models, understand the principle of setting up management accounting books of a bank, familiarize themselves with approaches toward the centralization and the management of market risks and the liquidity risks, make a final decision on approaches toward the fair allocation of the interest margin to products, units and business segments.


Module 1: 1 day

Transfer pricing models

Transfer pricing is a key element of a management accounting system
  • Review of various transfer pricing models
  • Specific features of choosing a transfer pricing model
  • Sample calculation of a transfer price
Structure of management accounting books of a bank
  • Books of cost centers
  • Books of profit centers
  • Books of investment centers


Module 2: 1 day

Management Accounting Books of a Bank

Management accounting books of cost centers
  • Books of service centers: HRM, IT, facilities management
  • Books of support centers: back offices, risk management, channel management, product management, segment management, marketing
  • Books of management centers: Management Board, secretariat, audit, finance, anti-money laundering 
Management accounting books of profit centers (management balance sheets and P&Ls)
  • Commercial books: of points of sale, retail business, corporate business and the Treasury
  • ALCO books: resource transfer book, liquidity management book, own investments book
  • Trade books: transactions of dealers on the money market, operations of dealers on the FX market, operations of dealers on the central bank’s market
Work in groups on practical tasks:
  • Building a book structure for a typical bank
  • Sample calculation of a transfer price
  • Project presentation and discussion

Cost Accounting and Cost

During this two-day module, the participants will have an opportunity to determine the financial structure of a bank on his own, define the structure of cost and profit centers, specify budget centers, and consider practical approaches toward accounting and cost allocation. The participants will understand the difference between the activity-based costing and the traditional cost allocation method, and familiarize themselves with a methodology of costing profit and products. 


Module 1: 1 day

Financial structure of a bank

Financial structure of a bank as the basis for the management accounting
  • Linkage between the organizational and financial structures
  • Key principles of building a financial structure
  • Types of financial responsibility centers
  • Hierarchy of financial responsibility centers
Work in groups on a practical assignment
  • Building a typical financial structure of a bank
  • Building budget centers and budget items 
  • Project presentation and discussion
Management accounting and overhead allocation
  • Management accounting for costs of financial responsibility centers
  • Management accounting for costs broken down by budget items
  • Management accounting for costs broken down by activity


Module 2: 1 day

Cost accounting cost allocation models

Overview of various cost accounting cost allocation models
  • Activity based costing
  • Traditional method
  • Overhead allocation bases for two methods
Determining cost of profit centers and products
  • Base cost price
  • Cost including business expenses
  • Full cost
Work in groups on a practical assignment
  • Overhead allocation to profit centers
  • Calculating cost of profit centers
  • Calculating product cost
  • Project presentation and discussion

Planning and Budgeting

The entire planning cycle—from a bank’s strategic and financial plans to tactical plans and annual budgets—will be covered in this two-day budgeting module. Participants will be provided with formats of tactical and budget plans.


Module 1: 1 day

Planning and budgeting process in banks

Key elements of strategic planning
  • General strategy and goals of a bank
  • Customer segmentation and segment strategies
  • Defining financial goals and key performance indicators
  • Financial modelling
  • Strategic plan and financial plan
  • Strategy performance monitoring
Financial modelling—the beginning of a budget process
  • Projected balance sheet and projected P&L model
  • Check for regulatory and other limitations
  • Determining budgeting directives


Module 2: 1 day

Tactical plan and business plan of a bank

Tactical planning — context and process
  • Linking strategies to tactical plans and resources
  • Format of tactical plans of business units: customer segments, products, channels
  • Format of tactical plans of support and service units: Back Offices, Risks, Finance, HRM, Facilities Management
  • Tactical plan monitoring
Business plans and annual budget
  • General notion of a budget and linkage between a budget and a bank’s annual tactical plans
  • Key principles of, and approaches toward, structuring the budget of assets and liabilities
  • Key principles of, and approaches toward, structuring the budget of income and expenses
  • Key principles of, and approaches toward, structuring the overheads budget
  • Branch budgets
  • Flexible budgeting, zero-based budgeting, and other methods
Development of regulatory and reference information or the budgeting process implementation
  • Reference table of codes of asset and liability budget items
  • Reference table of codes of income and expense budget items
  • Reference table of codes of overheads budget items
  • Reference table of codes of budget centers and budget items (products and services)

During this two-day training course, the participants will be able to get acquainted with various transfer-pricing models, understand the principle of setting up management accounting books of a bank, familiarize themselves with approaches toward the centralization and the management of market risks and the liquidity risks, make a final decision on approaches toward the fair allocation of the interest margin to products, units and business segments.


Module 1: 1 day

Transfer pricing models

Transfer pricing is a key element of a management accounting system
  • Review of various transfer pricing models
  • Specific features of choosing a transfer pricing model
  • Sample calculation of a transfer price
Structure of management accounting books of a bank
  • Books of cost centers
  • Books of profit centers
  • Books of investment centers


Module 2: 1 day

Management Accounting Books of a Bank

Management accounting books of cost centers
  • Books of service centers: HRM, IT, facilities management
  • Books of support centers: back offices, risk management, channel management, product management, segment management, marketing
  • Books of management centers: Management Board, secretariat, audit, finance, anti-money laundering 
Management accounting books of profit centers (management balance sheets and P&Ls)
  • Commercial books: of points of sale, retail business, corporate business and the Treasury
  • ALCO books: resource transfer book, liquidity management book, own investments book
  • Trade books: transactions of dealers on the money market, operations of dealers on the FX market, operations of dealers on the central bank’s market
Work in groups on practical tasks:
  • Building a book structure for a typical bank
  • Sample calculation of a transfer price
  • Project presentation and discussion

During this two-day module, the participants will have an opportunity to determine the financial structure of a bank on his own, define the structure of cost and profit centers, specify budget centers, and consider practical approaches toward accounting and cost allocation. The participants will understand the difference between the activity-based costing and the traditional cost allocation method, and familiarize themselves with a methodology of costing profit and products. 


Module 1: 1 day

Financial structure of a bank

Financial structure of a bank as the basis for the management accounting
  • Linkage between the organizational and financial structures
  • Key principles of building a financial structure
  • Types of financial responsibility centers
  • Hierarchy of financial responsibility centers
Work in groups on a practical assignment
  • Building a typical financial structure of a bank
  • Building budget centers and budget items 
  • Project presentation and discussion
Management accounting and overhead allocation
  • Management accounting for costs of financial responsibility centers
  • Management accounting for costs broken down by budget items
  • Management accounting for costs broken down by activity


Module 2: 1 day

Cost accounting cost allocation models

Overview of various cost accounting cost allocation models
  • Activity based costing
  • Traditional method
  • Overhead allocation bases for two methods
Determining cost of profit centers and products
  • Base cost price
  • Cost including business expenses
  • Full cost
Work in groups on a practical assignment
  • Overhead allocation to profit centers
  • Calculating cost of profit centers
  • Calculating product cost
  • Project presentation and discussion

The entire planning cycle—from a bank’s strategic and financial plans to tactical plans and annual budgets—will be covered in this two-day budgeting module. Participants will be provided with formats of tactical and budget plans.


Module 1: 1 day

Planning and budgeting process in banks

Key elements of strategic planning
  • General strategy and goals of a bank
  • Customer segmentation and segment strategies
  • Defining financial goals and key performance indicators
  • Financial modelling
  • Strategic plan and financial plan
  • Strategy performance monitoring
Financial modelling—the beginning of a budget process
  • Projected balance sheet and projected P&L model
  • Check for regulatory and other limitations
  • Determining budgeting directives


Module 2: 1 day

Tactical plan and business plan of a bank

Tactical planning — context and process
  • Linking strategies to tactical plans and resources
  • Format of tactical plans of business units: customer segments, products, channels
  • Format of tactical plans of support and service units: Back Offices, Risks, Finance, HRM, Facilities Management
  • Tactical plan monitoring
Business plans and annual budget
  • General notion of a budget and linkage between a budget and a bank’s annual tactical plans
  • Key principles of, and approaches toward, structuring the budget of assets and liabilities
  • Key principles of, and approaches toward, structuring the budget of income and expenses
  • Key principles of, and approaches toward, structuring the overheads budget
  • Branch budgets
  • Flexible budgeting, zero-based budgeting, and other methods
Development of regulatory and reference information or the budgeting process implementation
  • Reference table of codes of asset and liability budget items
  • Reference table of codes of income and expense budget items
  • Reference table of codes of overheads budget items
  • Reference table of codes of budget centers and budget items (products and services)


This course is designed for finance directors, chief accountants, managers, economists, specialists from financial analysis, planning and audit, management reporting and accounting, network performance management and analysis.