Understanding Company Reports and Accounts course held in the Isle of Man - Course outline from Russell and Associates

Understanding Company Reports and Accounts - Course Outline

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.

COURSE PROGRAMME

Purpose of Financial Statements

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

Measures of risk
Warning signals
Symptoms and causes