This one-day course provides an overview of key accounting concepts and how they can impact on the analysis and interpretation of company financial statements.

Accounting terminology and concepts can seem unfathomable to non-financial managers, and this course will help delegates to learn the language that is used by accountants, to enable more successful appraisal of financial information and to engage in dialogue with finance personnel.

 

Suitable for anyone involved with analysing or interpreting company accounts. Delegates are preferred to have attended ‘Analysis of Company Accounts’ or to have attained a similar level of knowledge. However, the course can be taken as a stand-alone course by delegates with some experience of reviewing company financial statements.

This course is relevant for managers and senior executives working in departments such as procurement, human resources, legal, mergers and acquisitions and credit control, who may need to understand some accounting concepts and terminology in order to successfully appraise financial statements.

By the end of this course you will be able to:

  • Understand the terminology seen in company financial statements.
  • Appreciate the impact of key accounting concepts on analysis of company performance and financial position.
  • Comprehend the basics of group financial statements including subsidiaries and joint ventures.
  • Calculate ratios and adjust them to ensure relevance to the financial statements being appraised.
  • Look for signs of creative accounting.
  • Navigate the notes to the financial statements and extract useful information from them.

Revision of financial statements format and basic ratios

  • The set of financial statements – income statement, balance sheet, statement of cash flows, note to the accounts
  • Profitability, efficiency, liquidity and solvency ratios
  • Analysing the statement of cash flows

Accounting treatments and their impact on ratios

  • Valuation of assets and liabilities
  • Impairment of assets
  • Intangible assets
  • Revenue recognition policies
  • Provisions and contingencies
  • Accounting for leases
  • Pensions and other employee benefits

Group financial statements

  • Types of investments - subsidiaries, associates and joint ventures
  • Goodwill
  • Foreign subsidiaries

Notes to the financial statements

  • Operating segment analysis
  • Related party disclosures
  • Areas of significant judgment
  • Risk exposure
  • Going concern risk