Modern Methods: Financial Accounts and
Reports
Introduction :
This interactive program will develop your understanding of the role played by financial reporting in
communication between the enterprise and its stakeholders and its influence over managerial decisions.
The program will consider the framework imposed by the accounting and financial standard setting
process and the implications of recent and the related developments in the world that affect
organisations worldwide.
Objectives :
By the end of the program, participants will be able to:
Identify the role of accounting standards in the communication of financial results.
Apply key accounting standards to their respective enterprises.
Appreciate the need for openness and clarity in financial reporting.
Understand and work with the role of audit.
To gain more confidence in understanding financial position and performance.
To increase their awareness of techniques in financial analysis and financial reporting.
To develops their ability to identify problem areas.
Contents :
Financial reporting and accounting and reporting standards:
The role of accounting in financial reporting.
Business objectives and shareholder wealth maximization.
Users of financial information.
Accounting terminology.
The framework of accounting and financial reporting.
Accounting concepts.
Accounting standards (FRS, IAS, and IFRS).
The nature and purpose of financial statements.
The key financial statements.
Organization financial position reporting – the balance sheet:
The structure of the balance sheet.
Shareholders’ equity; liabilities; assets.
Current assets and fixed assets.
Current liabilities and non-current liabilities.
Working capital.
Balance sheet preparation.
What does the balance sheet tell us about the organization?
Limitations of the conventional balance sheet.
Working capital analysis:
Working capital and working capital requirement.
Inventory.
Accounts receivable.
Accounts payable.
Cash.
Organization financial performance reporting – the income statement:
What is profit?
The structure of the income statement (profit and loss account).
The categories of income and expenditure in the income statement.
Income statement preparation.
Valuation of assets impact on the income statement and balance sheet.
The links between the income statement, balance sheet and cash flow.
Break-even analysis:
Cost/volume/profit (CVP) relationships.
Break-even analysis.
The impact of cost structure, volume and sales changes.
Limitations of CVP analysis.
Organization financial reporting – the cash flow statement:
What is included in the cash flow statement?
Why is cash flow so important?
The structure of the cash flow statement.
Sources of cash.
Uses of cash.
Cash flow statement preparation.
The links between the cash flow statement, profit and loss account and balance sheet.
Organization valuation:
The reasons for organization valuation.
Types of valuation methods.
Net assets valuation.
Capitalized earnings valuation.
P/E ratio valuation.
Gordon growth model valuation.
DCF valuation.
Analysis of financial reporting:
Publication of financial statements.
The annual report and accounts.
Tools and techniques of financial reporting: ratios; trends; common size analysis.
The use of financial ratios.
The best performance measure – cash or profit?
Common size (or horizontal) trend analysis of financial statements.
Vertical trend analysis of financial statements.
Segmental analysis of financial statements.
Value added analysis of financial statements.
Financial distress.
Altman's Z-score analysis and its uses.
Integrated financial accounting reporting case studies.
Who Should attend?
Professionals and CFOs responsible for financial reporting.
Accountants, project professionals, budget analysts, vice presidents of finance, controllers and
treasurers.
Anyone with an interest in financial reporting.
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