2016 - Analysing Financial Statements

The course is designed to provide participants with the tools for analysing financial statements to enable them to appraise new investments, identify growth and problem areas, and measure the performance of the organisation. Using practical examples and industry expertise, the trainer will enable participants to understand how their decisions affect financial statements and their interpretation by the stakeholders.
The course will help participants:
-Understand financial statements and key accounting policies governing preparation of financial statements
-Link operating, administrative and financial decisions to financial statements
-Learn the objectives of various internal and external users in analysing the financial statements and develop knowledge of -arious tools and techniques used in analysis of financial statements
Course outline:
Understand financial statements
-Financial terminology
-Structure of audited financial accounts
-Key financial statements
-The profit & loss account
-The balance sheet
-Cash flow statement
-Limitations of financial statements
-Relative importance of cash flows, profits, working capital, net worth etc.
-Users of financial statements
-How day to day decisions impact financial performance and hence financial statements
Analysis of financial statements
-Objectives of financial statement analysis
-Tools of financial statement analysis
-Common size statements
-Charting
-Time Series Analysis
-Balanced Scorecard
-Ratio analysis
-Division/Product/Customer profitability analysis
-Value addition analysis : Economic Value Added (EVA) and Market value added (MVA)
-Key day to day management decisions and their impact on financial statements
-Use of financial statement analysis for:
-Budgeting
-Financial planning and forecasting
-Taking operating and investment decisions
-Managing working capital
-Raising finance
-Evaluating financial and operating risks