Financial Statements Understanding and Analysis

The “Financial Statements Understanding and Analysis” course provides a comprehensive overview of financial statements and equips participants with the necessary knowledge to analyze and interpret them effectively. Beginning with an introduction to financial statements, learners will explore the fundamental accounting concepts that underpin the preparation and presentation of financial information. They will gain an understanding of the assumptions and requirements that guide financial reporting, as well as the key elements comprising financial statements.

The course delves into the intricacies of the balance sheet, covering its structure and components in detail. Participants will examine various asset categories and their significance, including control aspects and items that are not reflected on the balance sheet directly. Moving on to the profit and loss statement, learners will learn about its purpose and the components that contribute to the determination of a company’s income. They will also explore trends analysis and potential pitfalls and concerns associated with analyzing income and expenses.

Ratio analysis will be introduced as a powerful tool for evaluating financial performance. Participants will learn how to calculate and interpret key ratios, gaining insights into a company’s liquidity, profitability, and solvency. The course also covers cash flow statements, providing an understanding of their purpose and the different activities that generate cash inflows and outflows. Finally, participants will be introduced to the balanced scorecard, a strategic performance measurement framework. They will learn about the steps involved in implementing a balanced scorecard and explore a sample template.

Throughout the course, practical examples and case studies will be used to reinforce learning and enhance practical application. By the end of this course, participants will possess a solid foundation in financial statements analysis and be equipped to make informed decisions based on the information derived from them.

What Will You Learn?

• Gain a comprehensive understanding of financial statements and their significance in evaluating a company’s financial performance.
• Learn the basic accounting concepts and assumptions that underpin the preparation and presentation of financial information.
• Explore the structure and components of the balance sheet, including assets and liabilities.
• Understand control aspects and items not directly reflected on the balance sheet.
• Analyze the profit and loss statement, examining income, expenses, and potential concerns.
• Develop skills in trends analysis to identify patterns and potential areas of improvement.
• Learn how to calculate and interpret key ratios for assessing liquidity, profitability, and solvency.
• Understand the purpose and components of cash flow statements, and analyze cash flow activities.
• Explore the balanced scorecard as a strategic performance measurement framework.
• Learn the steps involved in implementing a balanced scorecard and examine a sample template.
• Engage in practical examples and case studies to reinforce learning and apply concepts to real-world scenarios.

Who Should Take The Course?