Understanding Company Reports and Accounts
Short course
In Guernsey & Jersey (UK Offshore Dependencies), London, Isle Of Man (UK Offshore Dependencies) and another venue.
Description
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Type
Short course
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Location
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Duration
1 Day
Have a basic understanding of company accounts. To understand how international accounting standards have allowed consistency in financial reporting throughout the banking/commercial sectors. At the end of the course participants should be able to: Examine a set of company accounts in detail. Identify areas of key significance in financial statements. Analyse the income statement and balance sheet. Understand the importance of cash flow. Undertake ratio and financial analysis. Appreciate regulation and audit issues. Appraise share valuation. Suitable for: Anyone
Facilities
Location
Start date
Start date
Start date
Start date
Start date
Reviews
Course programme
Understanding Company Reports and Accounts
Aim
This course will give non-accountants and new entrants to banking and financial services a basic understanding of company accounts. Also the participant will understand how international accounting standards have allowed consistency in financial reporting throughout the banking/commercial sectors.
Extensive use will be made of some light-hearted but instructional video material. Participants should be prepared to undertake considerable practical work during the day. Detailed examination will be made of the report and accounts of a well-known food retailing company.
Objectives
At the end of the course participants should be able to:
- Examine a set of company accounts in detail
- Identify areas of key significance in financial statements
- Analyse the income statement and balance sheet
- Understand the importance of cash flow
- Undertake ratio and financial analysis
- Appreciate regulation and audit issues
- Appraise share valuation
COURSE PROGRAMME
- Purpose of key financial statements
- Ratio analysis
- Liquidity and solvency
- Cash flow
- Dividends and earnings per share
- Shareholder value
- Accounting standards
- Early warning signals
Audience
The user groups of annual reports are diverse and include those who may be evaluating the financial health of companies, assessing competitor strength, investigating investment or acquisition potential or exploring the future of business partnerships. The target audience therefore includes marketing and sales professionals, bankers, researchers, administrators, support staff, suppliers and customers, investors and analysts.
Purpose of Financial Statements
COURSE PROGRAMME
- The need for external financing reports
- Contents of balance sheet and income statement
- Preparation of financial statements
- Key accounting concepts
Introduction to the Annual Report and Accounts
- Contents of the annual report
- Legal background to financial reporting
- Accounting standards
- Comparative international reporting
Evaluation of Financial Statements
- Uses and limitations of financial information
- Ratio analysis to assess financial health
- Investment ratios
- Profitability and asset management
Capital Structure
- Share capital and reserves
- Types of debt
- Benefits of leverage and gearing
Cash Flow
- Cash vs profit
- Cash flow cascade
- Interpreting the cash flow statement
- Forecasting
Non-Financial Analysis
- PEST analysis
- Competitor analysis
- Role of management
Case Study
- In-depth analysis of annual report
Value Creation
- Valuation techniques
- Shareholder value
- Recent trends
Risk Assessment
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Measures of risk
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Warning signals
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Symptoms and causes
Understanding Company Reports and Accounts