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3 day course on Understanding Financial Statements
This course looks at the different types of financial information
and how financial statements are constructed.
It is suitable for those coming into contact with financial
information for the first time and need to understand the
principles behind them.
Objective
At the end of this programme all participants will be able
to:
- Restate the fundamental accounting concepts and construct
the balance sheet equation
- Explain the concept of double entry bookkeeping
- Construct the balance sheet in a recognized format
- Demonstrate an understanding of the profit and loss account
- State the purpose of different types of financial information
Content
Introduction to Accounting
- Fundamental needs of a business
- The balance sheet equation
- Fundamental accounting concepts
Recording Transactions
- Concept of double entry bookkeeping
- Books of prime entry and double entry
- The nominal ledger
- Relationship of the profit and loss account to the balance
sheet
The Balance Sheet - Assets
- Assets as a usage of funds
- Fixed assets
- Current assets
- Basis of valuation
The Balance Sheet - Liabilities
- Liabilities as a source of funds
- Current liabilities
- Term liabilities
- Capital and reserves.
The Profit and Loss Account
- Sales
- Gross profit
- Fixed costs
- Retained profit
Types of Financial Information
- Audited accounts
- Management accounts
- Forecasts and projections
- Users of the information
Audited Accounts
- Reporting requirements
- Accounting standards (domestic and international)
- Content of the accounts
- Role of the auditors
- The cash flow statement
- Consolidated accounts
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