Financial Statements, Preparation and Analysis

Ref	FI 390
Dates	26 - 30 July 2010
Venue	Geneva
Fees	US$ 4450
CPE Credits	30

INTRODUCTION

Financial Statements are the language of business indicating areas of profitability and loss, assets and liabilities and the cash flow position.  Financial Analysis enables you to analyse and evaluate financial statements in order to assess past performance, perform SWOT analysis, improve decision making and aid with the strategic planning process.

Delegates will develop a clear understanding of the essential skills required to both prepare and analyse financial statements, which will enable you to:

• Improve your role in the workplace
• Increase your awareness of the major issues facing your business
• Enable you to further your professional skills
• Enable you to liaise effectively with line managers and other departments
• Improve your status in the organisation as those around you realise and appreciate your knowledge and understanding

WHO SHOULD ATTEND?

• Those directly responsible for the preparation of financial statements
• Professionals 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 organisation
• Analysts whose role involves evaluating and identifying market and competitive trends

PROGRAMME 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 and Co Analysis
  • Porter's Analysis
• Be able to value businesses and evaluate/analyse business valuations based on:

  • Asset valuations
  • Earnings valuations
  • Market valuations

TRAINING METHODOLOGY

The training session will be conducted along workshop principles with formal lectures, case studies and interactive worked examples.  Participants will be actively engaged, individually and as part of a group, in the preparation of financial statements and the analysis of case studies, simulation and discussions based on real world examples, many of which are from the oil sector.  Participants will also be given a detailed set of handouts and examples of various software that will enable them to review the topics covered at a later date. .

PROGRAMME SUMMARY

The organisation will gain from staff, who as a result of participation will:

• Contribute more effectively
• Improve their decision making
• Develop accounting and financial skills
• Appreciate the importance of finance within the organisation
• Be motivated to add value to their role for the good of the organisation

The programme will focus on the following areas through the clear outline of terminology and procedures and the use of real world case studies:

• preparation of financial statements (Profit & Loss Account (Income Statement);
• Balance Sheet and Cashflow Statements) analysis and
• Interpretation of financial statements to aid assessment and decision making

PROGRAMME 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 and Capital Expenditure
  • Assets - Fixed and Current
  • Liabilities - Current and Long-term
  • Reserves - Capital and Revenue
  • Working Capital
  • Net Worth
• An introduction to IFRS, International Financial Reporting Standards
• Annual Reports and 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
  • Cashflow 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 - Analysing 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 and Acquisition
• Business Restructuring and Reorganisations
• Summary
  • The essential skills required to both prepare and analyse financial statements in order to evaluate past performance and improve future financial performance - profitability and cashflow

 

 

 

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