Financial Statements, Preparation & Analysis

OBJECTIVES

Be able to Prepare Financial Statements
- Income Statement
- Balance Sheet
- Accompanying notes
- Cash Flow Statement
- Cash Budgets
Gain a basic understanding of the major IFRS and their impact
Develop an understanding of the role and responsibilities of financial analysis and management as part of the Strategic Planning Process
Be able to identify the key success factors/critical factors in their industry/division
Evaluate case studies using Excel® and the very latest techniques/methods of Financial Analysis focusing on profitability and cash flow
Understand the limitations of Financial Analysis
Be able to:
- Assess past performance
- Identify Strengths, Weaknesses, Opportunities and Threats
- Improve Decision Making relating to future:
  - Divisional/Individual Performance
  - Capital Expenditure
  - Investment Opportunities
- Implement and Evaluation Performance measures
- Aid the Strategic Planning Process
Evaluate future market/competitive trends using:
- SWOT Analysis
- LE PESTE & Co Analysis
- Porter’s Analysis
Be able to value businesses and evaluate/analyze business valuations based on:
- Asset valuations
- Earnings valuations
- Market valuations

WHO SHOULD ATTEND?

Those directly responsible for the preparation of financial statements
Managers and those with accounting and financial responsibilities
Financial decision makers, whose techniques of decision making and analysis will be improved through attendance
Professionals acting upon the financial decisions of others, who will gain an appreciation for decision making thereby ensuring shared values within the organization
Analysts whose role involves evaluating and identifying market and competitive trends

COURSE OUTLINE

DAY 1 – Preparing Income Statements and Balance Sheets together with accompanying notes

Preparing Financial Statements:
- the Profit & Loss Account (Income Statement);
- the Balance Sheet
- accompanying notes
Key Elements – Defined and Explained
- Profit
- Revenue & Capital Expenditure
- Assets – Fixed & Current
- Liabilities – Current & Long-term
- Reserves – Capital & Revenue
- Working Capital
- Net Worth
An introduction to IFRS, International Financial Reporting Standards
Annual Reports & Accounts
Book Value versus Market Value

DAY 2 – Preparing Cash Flow Statements and Cash Budgets

DAY 3 – The Role and Methods of Financial Analysis

Financial Analysis as part of the Strategic Planning Process
The Role & Responsibilities of Financial Analysis and Management
- Identifying key success factors in your industry sector
- Financial review compared to targets and expectations and Variance Analysis
- Financial performance measurement systems
Methods of Financial Analysis
- Common Size Statements
- Trend Analysis
- Ratio Analysis
- Du-Pont Analysis
- Z scores
- Investment Ratios
- Cash flow Analysis
- Peer Group/Industry comparison
- Sensitivity & Scenario Analysis
Establishing the need for both Financial and Non-Financial Analysis
Non-Financial Analysis
- SWOT Analysis
- LE PESTE & Co Analysis
- Porter’s Analysis
Techniques/Models Combining Financial and Non-Financial Analysis

DAY 4 – Analyzing and Evaluating Financial Performance

DAY 5 – Valuation and Business Performance

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