Course Description
This course will develop your understanding of financial reporting in business and it’s importance. It will consider how a company’s annual report and accounts provide an opportunity for its management to account for their actions to shareholders. The course will consider the framework provided by accounting and financial reporting standards, corporate legislation, and the requirements of stock markets around the world.
What Do Participants Learn?
- Appreciate how transactions are recorded in business accounting systems
- Apply professional judgment in summarizing and reporting financial information
- Identify the role of accounting and financial reporting standards in the communication of financial results
- Understand how key accounting and financial reporting standards are applied to their respective organizations
- Understand the role of audit in providing assurance to shareholders
- Read and understand their organization’s annual financial reports
- Apply analytical techniques to evaluate the financial performance and financial position of the organization.
Who Should Attend?
- Managers
- Bankers
- Financial officers and planners
- Auditors
- Anyone interested and wanted to develop his performance in finance
What Will the Learning Experience Include?
Phase: 1
Introduce
- Comprehensive pre-program activities include:
- Web-based information forms & surveys completed by attendee.
- Direct consultation with the attendee about the expectations.
- During the training, participants engage in data, activities, and conversations that lead to insight and knowledge.
- Participants learn from expert trainers who have both academic and business experiences.
- Highly applicable training content & instructive activities for adding depth to training topics.
- **A half-day site visit for integrating the experience & plan next steps. Opportunities to provide connections, ideas & support.
Phase: 2
Explore & Practice
Phase: 3
Apply
- Apply & sustain the learning experience by using this ongoing support:
- To ensure participant has new skills or behavior progress.
- Optional, fee-based mentoring & coaching with the trainer.
- Training materials & additional documents (e-books, pdf files, presentations and articles)
- Evaluate your training experience by giving us feedbacks and help us to reach our organizational goals.
- Participant's Evaluation
- Trainer's Evaluation
Phase: 4
EVALUATE
Section One: The Importance of Accounting in Business
- Business objectives and shareholder wealth maximization
- The users of financial information
- The role of accounting in financial reporting
- Double-entry accounting – the language of business
- The importance of the accounting period for measuring performance and value
- The fundamental accounting equations
Section Two: The Structure and Format of Financial Reports
- The income statement and its elements: revenues; costs
- What the income statement tells us, its purpose, and structure
- Categories of revenue and cost
- Calculation of profit
- Circumstances where judgment needs to be applied
- The balance sheet and its 3 elements: assets; liabilities; equity
- What the balance sheet tells us, its purpose, and structure
- Shareholders’ equity
- Current and non-current assets and liabilities
- Valuation of non-current assets and depreciation
- Valuation of inventory and cost of sales
- The links between asset valuation and profit
- Long-term financing
- Short-term financing and working capital
Section Three: The Statement of Cash Flows and Group Accounting
- The statement of cash flows
- What the statement of cash flows tells us, its purpose, and structure
- Cash flows from operating activities
- Cash flows from investing activities
- Cash flows from financing activities
- The cash flow forecast
- The creation of groups of companies
- Subsidiary companies, associated companies, and joint ventures
- Preparation of a group balance sheet
- The conceptual frameworks of accounting
- The development of International Financial Reporting Standards
Section Four: Analysis and Interpretation of Financial Reports
- Analysis of financial position and financial performance
- Interpretation of financial statements – key principles
- Ratio analysis
- Profitability ratios
- Efficiency and working capital ratios
- Liquidity ratios
- Investment ratios
- Financial structure ratios
- Pyramids of ratios
- Integration of ratios – the Dupont system
- Common size trend analysis
- Vertical trend analysis
- Financial distress
- The shortcomings of financial statements for analysis
Section Five: Published Financial Reports and Corporate Governance
- The annual report and accounts
- Financial reporting in the UK, USA, and GCC countries
- Recent developments in financial reporting
- Financial reporting – it is not just the numbers
- Segmental analysis
- Post balance sheet events and contingencies
- The agency problem
- International financial scandals
- The need for corporate governance