Financial Statement Analysis

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21-22 Mar 2019 London

Special Christmas Offer until 20 Dec price £1750 + VAT. Regular price £2095 + VAT. 5% discount for 2 people and 10% for 3 people.

Register Now

3-4 Jul 2019, London London

Special Christmas offer as above.

Course Description

This 2 Day Foundational level workshop refreshes delegates’ understanding of accounting and the use of financial statements. 

By working through the published report and accounts of a well known UK company, delegates will understand how the basic theory and principles of financial accounting are applied in practice; thus enhancing their ability to analyse and interpret published financial statements.  Importantly the workshop will encourage delegates to make a definitive link between the business activities of a company and how they are reflected in the company’s reported financial information.   In that context the workshop will introduce the concept and practice of adjusting financial statements to better reflect the underlying economics of transactions and events in order to enhance their comparability and value for credit analysis.
 
Delegates will additionally be introduced to a structured approach to financial risk analysis, as one of the three integral components of a comprehensive credit risk or investment risk assessment; namely business risk, financial risk and structural risk.

What Will You Learn

By the end of this course you will: 

  • Have an enhanced understanding of the principles and practice of accounting; and the composition and presentation of financial statements
  • Understand the main components of the income statement and balance sheet to support the assessment of the sustainability and composition of revenues, profits and solvency of a company.
  • Gain an understanding of the main components of the cash flow statement, how these statements are constructed and  the key sources and uses of funds
  • Have an awareness of the role of and limitations of financial ratio analysis
  • Be able explain when it may be necessary to make adjustments to the reported figures to better assess economic reality.
  •  Have an awareness of the potential dangers of “creative accounting” and some common presentation tricks that may be used.

Main Topics Covered During This Training

  • Key Principles of Accounting
  • The Structure of Financial Statements: Income Statements
  • The Structure of Financial Statements: Balance Sheet
  • The Structure of Financial Statements: Cash Flow Statements
  • Assessing Liquidity and Solvency
  • Key Ratio Analysis
  •  Off – Balance Sheet Items and Accounting Adjustments
  • Creative Accounting
 
You may be intersted in the following programmes: 

Register for 2 courses at the same time & save extra £100 (in total, not per course)

Who Should Attend

The class is suitable for anyone who wants to learn analysing real companies in order to conduct a research, give an advice or make investment decisions. It is also useful for people who are looking at internal monthly accounts and KPIs on regular basis.

  • Analysts
  • Corporate Credit Function Staff
  • Financial Analysts
  • Credit Analysts
  • Equity Analysts
  • Investment Analysts
  • Credit Managers
  • Compliance Staff
  • Portfolio Managers
  • Risk Managers
  • Auditors and Inspectors
  • Investment Advisors
  • New Entrants to the financial services sector 
  • Middle and back office personnel 
  • Business managers and team leaders 

 

Register Now

21-22 Mar 2019 London

Special Christmas Offer until 20 Dec price £1750 + VAT. Regular price £2095 + VAT. 5% discount for 2 people and 10% for 3 people.

Register Now

3-4 Jul 2019, London London

Special Christmas offer as above.

Financial Statement Analysis - A 2 DAy Course  

Key Principles of Accounting
 
  • The use and purpose of financial accounting
  • The “Accounting Equation” and the key accounting principles and practices that determine the composition and presentation of financial statements 
  • How to relate accounting information to Business Activity
  • IFRS  - the emerging global standard for the presentation of accounts (with a high level comparison to differing Accounting Standards)
  • The Role of Auditors
 
The Structure of Financial Statements: Income Statements
 
  • Accrual versus cash accounting; its purpose and limitations
  • The presentation and composition of the income statement; analysis of revenues and expenses and the calculation of gross and net operating margins
  • Income statements and statements of comprehensive income
  • Key notes relative to Income Statement Items to refer to when reviewing an Annual Report
 
The Structure of Financial Statements: Balance Sheet
 
  • The presentation and composition of the balance sheet
  • The main balance sheet items, short term and long term classifications and the composition of net worth
  • The difference between Tangible and Intangible asset classes 
  • The true value of assets, and how Balance Sheet values can change
  • Key Notes relative to Income Statement Items to refer to when reviewing an 
  • Annual Report
 
The Structure of Financial Statements: Cash Flow Statements
 
  • The presentation and composition of the cash flow statement
  • Direct and indirect cash flow statements; the benefits and drawbacks of each method
  • Differentiating between operating, investing and financing cash flows
  • The asset conversion cycle and the assessment of  Working Capital
 
Assessing Liquidity and Solvency 
 
  • Liquidity as the life blood of a business
  • Understanding the need to maintain solvency and the drivers of both liquidity and solvency
  • How companies make decision about the financing of their business activities;
  • Debt vs. Equity – expectations of stakeholders
  • Dividend policy - the potential impacts on earnings and cash flow  
  • Using Cash flow to analyse a company’s ability to meet debt obligations
 
Ratio Analysis
 
  • Ratio Analysis – Using ratios to assess a company’s state of health and sustainability    
  • Key ratios to support the assessment of Liquidity
  • Key ratios to support the assessment of Solvency
  • Asset Management Ratios – a measure of business efficiency  
  • Return on Equity – why it is important to both lenders and investors
  • Industry specific ratios and the use of peer group comparisons  
 
Off – Balance Sheet Items and Accounting Adjustments
 
  • Off–Balance Sheet items explained, and the distortions they potentially create
  • Identifying accounting adjustments that may be appropriate to aid analysis
  • Specific adjustments for operating leases, pension obligations, contingent obligations, quasi-debt instruments  and capitalised costs
 
Creative Accounting
 
  • Notes of caution about the true reliability of financial statements and how numbers can legitimately be manipulated
  • Using accounting policies to disguise adverse financial trends or to delay the reporting of negative non-financial trends
  • Common methods that are sometimes used to overstate earnings reduce reported leverage or mask disclosure of off balance sheet items

Tim has a banking career spanning almost 40 years, during which period he has worked for RBS Group, Santander Group and Moody’s Corporation.

The first 12 years of his career were spent in RBS retail banking where he rose quickly through the ranks to become Operations Manager of a large UK provincial branch.  He subsequently moved into a Senior Credit Risk role, where he was responsible for the establishment and management of a new of a new centralised team that used technology solutions to monitor the bank’s small business customer base across England & Wales; the objective being to identify and initiate remediation strategies for emerging problem loans.

In the early 1990’s Tim moved into Corporate Banking, and initially spent 4 years in a debt restructuring role.  He subsequently moved to the world of Corporate & Structured Finance and spent the following 15 years originating, structuring and managing the credit risk related to complex leveraged transactions.  In that capacity he was involved in negotiating both Senior Debt and Mezzanine lending positions, both as a bi–lateral lender or as part of a syndicate.    

In 2009, Tim returned to Corporate Debt Restructuring, initially as a transaction lead banker, but subsequently as the Global Head of Technical Learning & Development for the Restructuring Division of a major bank with operations in 23 countries worldwide.  

Tim subsequently led a team of Credit Analysts looking at large exposures in the Manufacturing, Mining and Transport sectors on behalf of Santander Global Banking Markets before taking on an interim role as the interim Head of Credit for a fast-growing UK based Challenger Bank, supporting the highly successful IPO of that business. before becoming a full-time financial services trainer and academic lecturer.  In that latter capacity he has undertaken numerous assignments right across the EMEA region and also in Asia. 

Tim is an Associate of the Chartered Institute of Bankers of England & Wales. 

 
Financial Statement Analysis <p>This 2 Day Foundational level workshop refreshes delegates&rsquo; understanding of accounting and the use of financial statements.&nbsp;</p> <div> <div> <div>By working through the published report and accounts of a well known UK company, delegates will understand how the basic theory and principles of financial accounting are applied in practice; thus enhancing their ability to analyse and int ... London