Financial Statements Workshop

About this course

This course will provide candidates with a solid grounding in understanding company financial statements – how they are compiled and how to use them to effectively analyse a company’s financial performance.

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Who should attend?

Corporate Financial Managers
Small Business Owners
Corporate and Investment Bankers

Course Outline

Financial Statements
Overview of Corporate Financial Statements
- The Company Annual Report
- Directors Report
- Audit Opinion
- Accounting Policies

The Income Statement
- Lay out of Income Statement
- EBITDA, EBIT
- Effect of Depreciation and Amortisation policies on reported profits
- Nature of capitalized costs and effect on reported profitability
- Earnings per share (EPS), Headline Earnings per share (HEPS)
- Ratios: Margins, Leverage, Interest Cover

The Balance Sheet
- Layout of Balance Sheet
- Nature and Treatment of Goodwill in the Balance Sheet
- Capital Structure and Weighted Average Cost of Capital (WACC)
- Ratios: Gearing, Debtors Days, Creditor Days, Stock Turn

The Cash Flow Statement
- Layout of Cash Flow Statement
- Connection to Balance Sheet and Income Statement
- Working Capital Changes
- Cashflow Statement ratios

Creative Accounting
- Income Statement
  - Sales/Turnover recognition
  - EBITDA
  - Depreciation & Amortisation
  - Capitalization of Costs
- Balance Sheet
  - Accounting for Goodwill
  - Intangibles
  - Fixed Asset Revaluations
  - Valuing Stock
  - Valuing Cash

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