Financial Statement Analysis

The current financial conditions and the lessons learned from various notorious corporate scandals in the past have put increased pressure on financial and non – financial managers, investors, banks and other credit providers, to make the right strategic, operational, lending and investment decisions and maintain the organizational financial health as well, adding emphasis to the key role the proper financial statement analysis play in the process. Because of this heightened awareness, performance is scrutinised, more procedures are being implemented and in many cases more people are being employed to work in the financial analysis teams. As a result, all the above-mentioned stakeholders are starting to appreciate more and more the importance of the processes that lead to sound decision making process, therefore, realising the need for well-trained people with the confidence to spot and communicate all the possible risks and exposures effectively, and clarify the financial abilities of an organization. The good news is that financial statement analysis skills can be learned, as a means of exploring future expectations. It is a discipline with a structured way of doing things and gaining an understanding of what the numbers tell you is crucial for success. This seminar has been designed to address all the key areas of financial analysis from both a theoretical and practical perspective. What makes a great analyst, however, is being able to see the figures and then see beyond and behind them. With this in mind, this seminar has been designed to give you a thorough grounding in financial statement analysis with a unique view on how to go beyond figures and see the bigger picture.

Content

• Transactional accounting vs. economic perception worlds
• A structured approach for analysis (accounting analysis, financial analysis and prospective analysis)
• Types and purpose of financial reports and statements
• A structure for effective initial reading of the annual report/audited accounts
• The importance of strategic analysis for understanding life cycle context of financial statements
• Business model – used to understand the ‘business’
• Review of fundamental accounting principles, concepts and mechanics underlying financial statements.
• Introduction to the structure and format of ‘core’ financial statements including consolidated or group accounts
• Statement of Financial Position
• Income Statement
• Statement of Cash Flow
• The Dangers & Distortions of Creative Accounting
• Management Accounts
• Ratio Analysis
• Cashflow Analysis
• Liquidity Analysis
• SWOT Analysis using financial statements

Expected Outcomes

• The main objective of this training is to acquire and/or enhance the knowledge and competencies to understand and implement a thorough financial statements analysis and take informed and proper investment, strategic, and operational decisions.
• Appreciate the strategic context behind modern financial statement analysis
• ­ Gain intuitive insights through analysis of the accounts and how to interpret them
• ­ Learn about the common areas, methods and dangers of distortion and how to spot this
• ­ Understand how to analyse accounts through ratio, cash flow and liquidity analysis
• ­ Get to grips with the key reasons for prospective analysis
• ­ Develop an ability to look into the future through financial statement forecasting and an introduction to valuation

Who should attend:

• Managers or consultants responsible for the effective management of financial affairs and strategy formulation of their organization
• Individuals seeking to gain comprehensive knowledge of Financial Statement Reporting concepts, processes and principles
• Advisors involved in organizational strategy formulation and financial planning
• Investors in private organization
• Lending officers