Advance Financial Statement Analysis

Training Goals & Objectives

The Training on Advance Financial Statement Analysis is designed to develop your knowledge and understanding of advanced financial analysis techniques. You will also learn how to apply them, as well as the concepts and principles which underpin them. This course will also help both accountants and auditors identify issues which may require preventive action.

This course will also provide you with the necessary analytical framework and a wide array of practical tools to help you understand and exploit information in financial statements. You will be shown how to examine the many valuable and relevant pieces that make up a financial statement. Application of advanced techniques will enable you to gain more information out of financial statements, allowing you to better assess a company’s profitability and risk and to make more accurate valuations.

Who Should Attend

  • This highly practical program has been specifically designed for:
  • Middle management accounting professional
  • Chief Accountants
  • Heads of Finance
  • Finance Managers
  • Financial Controllers
  • Managers of Financial Accounts
  • Heads of Accounting and Administration
  • Finance and Information Systems Managers
  • Financial Analysts
  • Senior Management of Non-Finance also can a􀆩end

Practice Areas

The financial statement analysis training will promise the following objectives: –

  • The significance of financial statements
  • Ratio analysis: Practical case to analyze the company’s financial performance
  • Corporate reporting: a tool for decision making
  • Key performance indicators
  • Identifying the strategic objective (customers, stakeholders)

Training Program

Course contents of the program are as under:

Pre Session Activities

  • Networking & Participant Introduction
  • Course introductions & Overview

Day 1

  • Discussion of Agenda and Case study approach
  • The Nature of Financial Statements
  • The balance sheet , income statement & cash flow statement and statement of changes in owners’ equity
  • Ratio Analysis : Practical case to analyze a firm’s financial performance
  • Corporate Reporting – a tool for decision making
  • Key Performance Indicators (Performance Prism)
  • Identifying the Strategic objective (Customers, Stakeholders)
  • Economic Value Added
  • Free Cash Flow and its implications
  • IFRS/FASB/IASB New Standards Impact- Revenue,
  • Leases & Consolidations
  • Tools Of Financial Analysis And Control
  • Management’s, Owners & Lenders point of view
  • Integration of financial performance analysis
  • Deceptive accounting possibilities
  • Financial and operating leverage
  • Liquidity & Stress analysis
  • Theory of capital structure
  • EBIT-EPS analysis

Day 2

  • Corporate Reporting – other information useful for decision making
  • The Cost Of Capital And Business Decisions
  • Risk categories
  • Fraud Analysis Ratios (Enron Fraud)
  • Case Study & Discussion
  • Valuation And Business Performance
  • Capital asset pricing model
  • Dividend discount model
  • Analysis of company’s performance
  • The most recent trends in company valuations;
  • The use of financial statements for credit risk
  • The importance of analyzing off-balance sheet obligations
  • Balance sheet and assessing the company’s liquidity risk.
  • Enron Scandal
  • Troubled Companies – Can a new Culture be the answer
  • how bad governance practices can lead to organization failures
  • What Happened at Enron

Key Takeaways

  • Be able to identify the most important parts of the financial statements and know their purpose
  • Understand significant options that companies have in preparing financial statements
  • Know what warning signs to lookout for which indicate that company is getting into financial difficulty
  • Appreciate the main financial ratios which can be calculated and what they mean

Certificate Distribution Ceremony