Financial Accounting & Reporting

Start Date: 7 Jul 2019
End Date: 11 Jul 2019
Duration: 5
Country: Frankfurt / Germany
Category: Finance, Accounting & Investment


This interactive seminar will develop an understanding of the importance of financial reporting in business. It will consider how the Annual Report provides an opportunity for the management of a company to account for their actions to the stockholders. The seminar will consider the framework imposed by accounting and financial reporting standards, corporate legislation, and the requirements of stock markets around the world. The implications of recent financial scandals in the USA, and how these have prompted the strengthening of corporate governance around the world will be discussed.

The seminar will also consider the ways in which internal reporting contributes to the control of costs, identification and correction of problems, and how to make and implement profitable decisions.

The highlights of this course will be:

         The formats and structures of company annual reports, and how to read and understand them.

         The generally accepted accounting principles that are applied in the U.S. and Europe

         International rules of corporate governance

         Tools and techniques to evaluate business performance, and to predict future problems.

         The evaluation of new investment proposals will they add value to your organisation?


At the end of this seminar participants will:

         The evaluation of new investment proposals will they add value to your organisation?

         Understand and use analytical tools and techniques in practical case-study situations.

         Appreciate the importance of new investments in maintaining growth and competitiveness, and how these investments should be evaluated.

         Identify the role of accounting standards in the communication of financial results

         Apply key accounting standards to their respective enterprises

         Understand the role of audit

Training Methodology

The seminar will be conducted along workshop principles with formal lectures, case studies and interactive worked examples. Relevant case studies will be provided to illustrate the application of each technique in an operational environment. Each learning point will be re-inforced with practical exercises. Discussion in groups will promote exchange of concepts and ideas.

Organisational Impact

What will your organisation gain from sending employees to attend this seminar?

         Confidence in understanding financial position and performance

         Awareness of the causes of accounting scandals, and how to avoid them

         Understanding of the importance of corporate governance

         Understanding of the tools and techniques that can monitor and improve performance

         Ability to identify problem areas, and suggest realistic solutions

         Ability to evaluate and select new investments that will generate growth and meet the stockholders expectations.

Personal Impact

What will the employee gain from attending this seminar?

         Exchange of ideas and knowledge with other professionals

         Increased awareness of techniques in financial analysis and capital appraisal

         Better understanding of the language of finance and accounting

         Knowledge and understanding of business risk

         Increased ability to identify problem areas

         Increased confidence to tackle new situations

Who Should Attend?

         Financial Officers, Controllers and Treasurers

         Professionals responsible for financial reporting

         Accountants, Project Professionals, Budget Analysts

         Anyone with an interest in financial reporting



Financial Reporting and Corporate Governance

         Business objectives and shareholder wealth

         The users of financial information

         The role of accounting in financial reporting

         Key financial statements, their nature and purpose

         The conceptual framework of accounting and financial reporting

         Introduction to accounting standards

         The development of accounting standards

         International financial scandals

         The agency problem

         The role of audit

         The need for corporate governance

         Corporate governance in the UK, US, and in GCC countries

         The Balance Sheet

         Shareholders equity

         Current and non-current assets

         Current and non-current liabilities

         Working capital

         Preparing the balance sheet

         What does the balance sheet tell us?

         What are its limitations?

         Accounting terminology


Accounting Systems, Reporting and Decisions

         Preparation of the Income Statement

         Calculation of profit

         HCategories of income and expenditure

         Valuation of current and non-current assets

         The format of the Income Statement and Balance Sheet

         The link between cash and profit

         The link between asset valuation and profit

         Inventory, receivables, payables, and cash

         The application of judgement

         The nature and purpose of working capital

         Management accounting and cost-volume-profit (CVP) analysis

         Break even analysis

         The impact of volume and sales changes on cost structures

         The limitations of break-even analysis


Cash Flow and Investment Appraisal

         The purpose of the Cash Flow Statement, and its contents

         The preparation and presentation of the Cash Flow Statement

         Sources and uses of cash

         The link between the Cash Flow Statement, the Balance Sheet, and the Income Statement

         The Cash Flow Statement as a predictor of future performance

         Interest rates and the time value of money

         Discounting and compounding - present values and future values

         Annuities and perpetuities

         Investment appraisal: what is an investment?

         Appraisal techniques NPV and IRR

         Relevant cash flows and free cash flows

         The effect of inflation

         Dealing with risk and uncertainty

         Asset replacement and annual equivalent value

         Capital rationing

         Managing the investment project


Financing and Cost of Capital

         Financing the business

         Financing principles

         Sources and types of finance, and the effect of gearing

         Defensive, neutral, aggressive financing policies

         Stock Market listing

         The Cost of Capital

         Cost of equity (Ke)

         Cost of debt (Kd)

         Weighted average cost of capital (WACC)

         Capital Asset Pricing Model (CAPM)

         The need for company valuations

         Valuation methods: Net assets; PE Ratio; Dividend growth model; Present value of future free cashflows; Capitalised earnings

         Shareholder value added

         Financial growth modelling: analysis of growth patterns

         Use of Excel for growth forecasting

         DCF valuation


Analysis and Interpretation of Financial Reports

         The contents of the published annual report

         Recent developments in financial reporting

         Interpretation of financial statements

         Common size analysis

         Ratio analysis, including the Dupont system

         Profitability ratios

         Liquidity ratios

         Efficiency ratios

         Capital structure ratios

         Investment performance ratios

         Measuring performance cash ratios or profit ratios?

         Value Added analysis

         Segmental analysis

         The shortcomings of financial statements, for interpretation purposes

         Predicting corporate failure

         Non-financial factors

         General financial management issues

         The effect of poor liquidity

         Post balance sheet events and contingencies

         The auditors report

         Failure-predicting ratios

         Multivariate failure predicting models Altman Z score

         Integrated financial accounting case study

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