Financial Statements, Preparation & Analysis
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
- Profit and Cash – what is the difference?
- The Cash Flow Cycle
- Working Capital – Analysis and Management
- Cash Flow Statements
- Preparations
- Roles
- Interpretation
- Cash Budgets
- Preparation
- Role
- Interpretation
- The Analysis of Financial Statements
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
- The Analysis and Evaluation of various Case Studies using Excel® in order 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 Evaluate Performance Measures
- Aid the Strategic Planning Process
DAY 5 – Valuation and Business Performance
- Definitions of Value
- Methods of Business Valuation
- Asset Based
- Earnings Based
- Market
- Value to the Investor
- Managing for Shareholder Value
- Creating Value in Restructuring and Combinations
- Business Valuation for Merger & Acquisition
- Business Restructuring and Reorganizations