Financial Statements and International Reporting Standards

Ref	FI 3901
Dates	26 July - 6 August 2010
Venue	Geneva
Fees	US$ 8900
CPE Credits	60

INTRODUCTION

In the global and increasingly competitive world, the need for effective Finance and Finance Reporting is integral to strategic business decisions. This programme provides the essential skills required to prepare, present and analyse financial statements in accordance to IFRS in order to evaluate past performance; perform SWOT analysis, improve decision making and implement and evaluate performance measures.

In addition it establishes the Case for Corporate Governance and International Financial Reporting Standards by examining the Creative Methods of Accounting adopted and the case study of Enron. Delegates will develop a clear understanding of the essential skills required to both prepare and analyse financial statements in accordance with IFRS, 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 and Present Financial Statements in accordance with IFRS:
- Income Statement
- Balance Sheet
- Accompanying notes
- EITHER a Statement of Changes in Equity OR A Statement of Recognised Income or Expense ("SORIE")
- Cash Flow Statement
- Notes, including a Summary of the Significant Accounting Policies
Be able to Prepare Cash Budgets
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
Be able to evaluate and analyse financial statements and the impact of IFRS using Excel® and the very latest techniques/methods of Financial Analysis focusing on profitability and cash flow
Understand the limitations of Financial Analysis
Improve Decision Making relating to future:
- Divisional/Individual Performance
- Capital Expenditure
- Investment Opportunities
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
Become aware of the Case for Corporate Governance and International Financial Reporting Standards
Identify the Creative Methods adopted by companies when preparing their financial statements
Appreciate the Lessons Learnt from the Enron Case
Gain an understanding of the major IFRS
Become aware of the International Adoption of IFRS, Current Issues/IFRS Convergence Projects and the Problems of Convergence

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 and presentation of financial statements in accordance with IFRS 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 a detailed understanding of IFRS and their implications
Appreciate the importance of corporate governance
Be motivated to add value to their role for the good of the organisation

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

preparation and presentation of financial statements in accordance with IFRS
analysis and interpretation of financial statements to aid assessment and decision making
the role and importance of corporate governance and IFRS

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 & Current
- Liabilities - Current and Long-term
- Reserves - Capital and Revenue
- Working Capital
- Net Worth
An introduction to IFRS, International Financial Reporting Standards
Annual Reports & 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 and Scenario Analysis
Establishing the need for both Financial and Non-Financial Analysis
Non-Financial Analysis
- SWOT Analysis
- LE PESTE and 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

DAY 6 - Corporate Governance and International Financial Reporting Standards (IFRS)

Establishing the Case for Corporate Governance and International Financial Reporting Standards
Creative Accounting
Enron and the Lessons Learnt
Corporate Governance
The Structure of IFRS:
- International Financial Reporting Standards
- International Accounting Standards
- Interpretations
- Standing Interpretations Committee
The International Adoption of IFRS
Current Issues/IFRS Convergence Projects
The Problems of Convergence

DAY 7 - The Framework for the Preparation and Presentation of Financial Statements

Purpose and Status
Scope
Objective
Underlying Assumptions
Qualitative Characteristics of Financial Statements
Elements of Financial Statements
Recognition of Elements of Financial Statements
Measurement of the Elements of Financial Statements

DAY 8 & 9 - The Presentation of Financial Statements in accordance with IFRS

Balance Sheet
Income Statement
EITHER A Statement of Changes In Equity OR A Statement of Recognised Income or Expense ("SORIE")
A Cash Flow Statement
Notes, including a Summary of the Significant Accounting Policies

DAY 10 - The Interpretation of Financial Statements and the impact of IFRS

Financial Analysis
- Common Size Statements
- Trend Analysis
- Ratio Analysis
- Du-Pont Analysis
- Z scores
- Investment Ratios
- Cashflow Ratios
- Peer Group/Industry comparison
- Sensitivity and Scenario Analysis
International Accounting Diversity
Comparative analysis of companies adopting IFRS and those not adopting IFRS
The Impact of IFRS on accounting diversity
The Case for further IFRS

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