Course details

Overview ?

Overview

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?

Objectives

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

SEMINAR OUTLINE

DAY 1 : 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

DAY 2 : 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

DAY 3 : 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

DAY 4 : 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