Dublin, April 21, 2023 (GLOBE NEWSWIRE) -- The "Financial Statements Analysis and Interpretation" conference has been added to ResearchAndMarkets.com's offering.
The aim of this two-day live classroom-based course is to introduce participants to financial statements analysis and develop their knowledge and skills in the analysis of financial statements so that they can make more informed credit and investment decisions.
Using an interactive case study-driven approach driven from a real set of mid-tier corporate financial statements, the course:
- reviews how financial statements are constructed, considering how transactions are reflected in the primary statements of profit or loss, financial position and cash flow and their interrelationships
- considers the key approaches to identifying trends and relationships over time, with peers and within the financial statements
- identifies and calculates key financial ratios to assist in the analysis
- develops skills in identifying unusual relationships between operating profit and operating cash flow
Throughout the course we will be referring to a real-world case study company reporting under IFRS and applying the techniques learned to analyse its financial statements.
The course will include a wide range of learning and development approaches including:
- Lecture-based presentations
- Practice case studies
- Reviews of relevant financial statements
- Group exercises and discussions
- Expert tutor inputs
Please note that the content of this course is specific to the analysis of mid-sized corporate entities and does not cover the analysis of financial services ones.
Having an understanding of financial statements and their analysis is a key skill for many business applications whether this be for credit control, lending, assessing the financial stability of suppliers, evaluating internal business performance, analysing the results of rival businesses or seeking investment opportunities.
This course will develop an understanding and provide a structure that can be used for the financial analysis of corporates:
- Describe the statements of financial position (balance sheet), financial performance (profit or loss), cash flow and changes in equity and how they reflect transactions
- Perform common sizing of financial statements
- Apply the 5 stages of financial analysis
- Calculate key ratios underpinning the 5 stages of financial analysis and interpret the results
- Identify how different accounting policy choices will impact on results and ratios
- Identify the relationship between profit, working capital and cash flow
- Analysis the cash flow statement to anticipate and detect deteriorating cash flow quality
- Application to real financial statements
Who Should Attend:
This course will benefit anyone who wants to develop their knowledge and skills in the understanding and analyses of financial statements information, including but not limited to:
- Credit analysts
- Business managers
- Investment analysts
- Relationship managers
- Financial consultants
- Internal auditors
- Regulators
This course is suited to people who are new to financial statements analysis or who have on the job experience but little formal training in its application, or to those experienced in this area but looking to refresh their knowledge and skills.
Agenda:
Day 1 Financial Analysis Principles and Financial Reporting
- Understand the approach to Financial Statements Analysis which will be used during the course
- Discussion: the significance that different financial reporting frameworks can have
Understanding Financial Statements and Their Components
- Understanding how the primary financial statements reflect transactions
- Essentials of double entry
- Assets, their recognition and utilisation; the concept of depreciation
- Debt vs. equity
- Profit and loss vs. cash flow; the relationship between sales, cost of sales and inventory
- The importance of accounting policies
- Case study: developing a set of financial statements and comparison to real-world financial statements
Approaches to financial statements analysis
- Vertical analysis establishing the importance of key elements within the statements and common sizing to gain insight
- Horizontal analysis, looking at trends over time, identifying unusual events and comparison with peers
- Case study: vertical analysis of our main case study company
Financial Ratios and their Analysis
- Understand the key financial ratios to use and their calculation
- Be able to analyse a business, using the 5-step approach
- Main features
- Key features of the business
- External (industry/economic) perspectives
- Profitability and growth
- Profitability ratios
- Growth rates
- Application: apply the ratios to the case study company financial statements
Day 2 Financial Ratios and their Analysis (continued)
- Investment
- In capital
- Intangible assets and people
- Solvency
- Working capital and liquidity
- Financial structure and leverage
- Conclusions
- Application: apply the ratios to the case study company financial statements
Financial Ratios and their Analysis (continued)
- Investment
- In capital
- Intangible assets and people
- Solvency
Analysing Working Capital
- Know the importance of working capital to financial analysis and how it is measured
- Measuring working capital performance
- Managing working capital
- Warning signs for financial analysis
Cash Flow Analysis
- Construction of the cash flow statement, direct vs. indirect methods and presentation
- Cleaning up the cash flows to identify sustainable operating cash flows
- Critically analyse a cash flow statement and the implications for a company's financial health
- Application: apply to case study company
Conclusions
- Frameworks for concluding on the financial statements
- Drawing together the analysis of the case study company
- Identify strengths, weaknesses, opportunities and threats
Speakers:
Alan Mayo
Owner
Maltway
Alan Mayo FCA is a chartered accountant from the UK and a member of the Institute of Internal Auditors with 30 years' professional experience.
Alan began his career with PwC where he spent 10 years conducting and managing external audits in the private sector. He then spent a further 10 years as a consultant with PwC leading training programs supporting major systems and process change, predominantly in the public sector.
On leaving PwC Alan formed his own training business which he has been running for the past 15 years. During that time he has worked on a wide range of financial training projects within the private, public and not-for-profit sectors.
Alan has conducted training courses worldwide covering aspects of risk management, internal control, operational and financial control, countering risk of fraud, financial reporting and audit for numerous organisations including Shell and Government Agencies such as London Boroughs of Lambeth and Ealing Council etc.
For more information about this conference visit https://www.researchandmarkets.com/r/d5l3o7
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