Reading and Interpreting Corporate Financial Statements

This "Reading and Interpreting Corporate Financial Statements" training is designed for those who wish to learn / enhance their knowledge and skills in understanding Financial Statements.

Participants will be able to develop their business acumen and be able to apply financial management knowledge to work, business and personal life.

The aim of this two days course is to :

• Learn about the various types of Financial Statements and their uses
• Understand the terminology used in Financial Statements
• Understand the accounting concept used in preparing the Financial Statements
• Analyse Financial Statements and understand their relationships
• Understand the limitations of Financial Statements analysis
• See the underlying business dynamics from the financial perspective
• Make better business decisions and investment decisions
• Build the necessary confidence to work with professionals
• Build a more productive relationship with other sections, suppliers and customers
• Become a team player in achieving financial goals of the Company
• Think “Bottom-Line” and help transform performance measure into result
• Extend professional skills and add career value

Learning Outcomes:

• Apply accounting concepts on which the preparation of Financial Statements are based
• Differentiate the different between Profit and Cash
• Define linkages between Financial Statements
• Identify some controversies involved in the preparation of Financial Statements
• Determine limitations of the information contained in Financial Statements
• Read, Understand and analyze the Financial Statements
• Know the limitations of Financial Statements analysis
• Predict Financial Failure
• Know the capital structure use by successful companies

Who Should Attend:

• Presidents / Vice Presidents / Directors / General Managers / Departmental Managers
• Personnel who are involved in making Financial and Business Decisions
• Investor who wish to understand Financial Statement
• Anyone who is responsible for financial analysis and reporting
• It is also suitable for beginners who would like to learn how to read and interpret Financial Statements

Course Outline:

• Day 1
• 1. Understanding Accounting Framework
• Understand the different between Conceptual Framework and Regulatory Framework
• What are Fundamental Accounting Concept and Assumption used in preparing Accounting Records and why these are being used
• 2. Distinction between Types of Accounts
• Differentiate between Assets, Liabilities, Expenses, Income and Equity
• Understanding the Accounting Equation
• Differentiate between OPEX and CAPEX
• Types of Capital Structure
• 3. Types of Financial Statements
• Statement of Profit or Loss and other Comprehensive Income
• Statement of Financial Position
• Statement of Changes in Equity
• Statement of Cash Flows
• 4. Analysis Tools for interpreting Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position
• Vertical Analysis
• Horizontal (Trend) analysis
• Ratio Analysis
• Day 2
• 5. Evaluate using Ratios
• Profitability
• Efficiency
• Liquidity
• Leverage
• Valuation
• 6. Analyze through Detailed study of Statement of Cash Flows
• Differentiate between Profit and Cash
• Analysis of the Company’s Cash Flows
• 7. Other Pertinent Factors in making business decisions
• Notes to the accounts in Published Financial Statements
• Limitation of Financial Statements and interpretation techniques