Introduction to Corporate Financial Statements

A two-day foundation programme providing participants with a clear understanding of how the business activities of a company are reected in their nancial statements.

TARGET AUDIENCE

BUSINESS AND OPERATING APPRAISAL

This is an introductory level workshop for those who are new to corporate credit. It is designed for bankers, investors, lawyers and other users of nancial reports and accounts who have limited or no prior knowledge of analysis of corporate nancial information. This is a prerequisite for those wishing to attend a Corporate Credit workshop but lack the nancial background to do so.

COURSE OBJECTIVES

This workshop is designed to explain how nancial measures of corporate performance are calculated and used to assess credit worthiness of a business. The course covers the basics of nancial statement analysis and enables participants to condently use nancial terminology. This is an introductory level workshop designed for users of nancial reports and accounts who have no prior or limited knowledge of corporate nancial information; it focuses on the numbers behind the risks rather than the risks themselves. This is a highly interactive workshop and a case study will be used to illustrate key learning points. Specifically, participants will learn to: How a companys business and nancing activities are reected in its nancial statements The components of nancial statements balance sheet, prot and loss and cash ow The distinction between cash ow and prots How to measure operating, investing and nancial performance using appropriate ratios and cash ow tools How to review and interpret the key impacts of Notes to the Accounts and describe the key accounting rules (IFRS) and their signicance.

How the presentation of nancial statement is driven by the characteristics of the business Operating performance and the business cycle Accounting for sales and expenses Ratios to assess the quality and stability of earnings Key asset categories Return on assets and its components The meaning of net working capital Fixed asset efciency Deriving a cash ow statement Operating, investment and nancing cash ows Illustration case study. Understand how and why difference companies fund their businesses Spontaneous nance from suppliers Debt and equity: short term versus long term Liquidity and solvency Accounting for liabilities Funding ratios Debt service obligations Dividend policy on earnings and cash ow Off balance sheet liabilities Using the cash ow to analyse a companys ability to service its nancial obligations Illustration case study. Measure of performance using nancial ratio analysis and their limitations Dupont analysis return on equity and its components Evaluate performance using peer analysis.

LIABILITY AND CAPITAL STRUCTURE

CONTENT
OVERVIEW
Introduction to nancial statements and commonly used terminology The purpose payback model Relate a business to its balance sheet and prot and loss account Typical presentation of company nancial statements A glossary of common nancial terminology.

RATIO ANALYSIS

TYPES AND PRESENTATION OF FINANCIAL STATEMENTS

Focus on the key components of nancial statements and highlight some of the variances of nancial disclosure IFRS presentation of company nancial statements Key balance sheet categories Prot and loss account Cash ow statements Sources and quality of disclosure Key accounting policies Notes to the accounts.

Learning Paths

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