Financial Statement Analysis

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

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

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.



We offer banking and finance courses as well as soft skills and business management training. You can either attend an open public course in London or Dubai or arrange customised in-house training to be delivered in any of your offices worldwide.

Most of our public courses are run over 2 full days. Some programmes are offered as a 1 or 3 day training.

In-house training is tailored to client’s requirements and can be organised over 1 day, 2-3 weeks or longer.

Public courses are organised mainly in London and Dubai. Occasionally we organise courses in other centres like Paris or New York. Check our public course calendar for the current list of programmes. We use a range of training venues, all in the centre of the cities and with excellent transport links to the airports and train stations.

In London we use venues in the centre (near Oxford Circus station or in Mayfair) or in the City (near Liverpool Street or Moorgate stations).

In Dubai our courses are organised in one of 4-5* hotels in the Deira district. Once you register we will send you detailed information together with accommodation options if required.

Our in-house courses can be delivered anywhere in the world. We work with over 25 trainers worldwide. Contact us do discuss your requirements. Check our list of available programmes.

Our courses are run in central locations from 9 a.m until 5-5.30 p.m. There are 2 coffee breaks and a lunch break. Lunch is always provided in the venue.

Dress code is smart casual.

All our programmes are taught by senior specialists who have spent many years in their respective sectors, working as senior managers and head of departments, so they understand very well the market and the challenges you are facing.

The experience of our trainers allows us to create very practical programmes, focused on current market trends and challenges. You can be sure that you will gain the knowledge which can be instantly applied in your workplace after the course. You will be analysing real life case studies, take part in group exercises and discussions as well as role plays, whenever applicable.

We want our courses to be as practical and interactive as possible so we limit the number of participants in order to optimise your time with the trainer and allow you to ask questions which are important for you.

In order to understand your requirements and expectations, we will send you a pre-course questionnaire.

You will also receive post-course support so if you have any questions after you left the training, you are welcome to contact us.

There are 2 easy ways to register:

  1. Go to the course of your choice and click Register Now button to fill the registration page
  2. Email us to

After you register, we will send you registration confirmation and an invoice so you can arrange the payment. Please note that your place is not confirmed until we receive it.

If you register within Early Bird discount period, there’s limited time to arrange the payment in order to be eligible for the discount. You will find all the details on the invoice.

We don’t advise to make any travel and hotel arrangements until you receive full course confirmation from us.

We will send you venue and course details as soon as possible but most likely about 3-4 weeks prior to the course commencement.

You can pay by:

  • Making a bank transfer
  • Debit/credit card
  • Cheque payable to Eureka Financial Ltd. - only within UK

Just mark preferred paying option on the registration form. Whichever form of payment you choose we will always send you an invoice.

If you pay by card, a 2.2% processing fee will be added. We will send you authorisation form so you can give us your card details.

Included in the price of a public course are:

  • Course tutorial
  • Take away course materials
  • Course Certificate
  • Lunch on the days of the training as well as drinks and snacks throughout the course

The price doesn’t include accommodation, flights, transfers and any additional costs outside of the training venue.

Yes, we always offer Early Bird discount, so the sooner you register the more savings you can make. We also offer group discounts and if you register for 2 or more programmes at the same time.

If you are a full time student or unemployed, we offer a 25% discount of the full price of the training. Student ID or unemployment status confirmation is required to claim this discount.

If you attend one of our courses you will be entitled to a special discount for a year after the last course you attend with us. Also, if you have attended and recommended us to a friend, both you and your friend will receive a special discount. You will receive more information about it after you attend the course.

See our Customer Loyalty Discounts page for more details.

All our courses based in the UK are subject to the VAT charge of 20%. This fee is irrespective of the country of residence of the delegates.

You can, however, claim the VAT back by contacting UK tax office - HMRC, and filling the relevant form, as long as you comply with the following rules:

For Delegates coming from the EU countries

If you represent a registered business in another EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the UK
  • You don't make any supplies in the UK

You can find some more information here. In order to claim the VAT you have to fill Form 65.

For the Delegates from Non EU countries

If you represent a registered business in a non-EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the EU
  • You can only use the Refund Scheme if your own country operates a similar scheme and makes it available to UK businesses. If your country has its own Refund Scheme but doesn't let UK businesses use it, you can't claim under the UK Refund Scheme.
  • You don't make any supplies in the UK

If the following rules apply to you, please fill the 65A form and send it to HMRC.

If you are unable to attend the course, you can either send a replacement at no extra charge or, up to 20 working days before the training, you can transfer your booking to another course within the next 6 months for an additional fee of 25% of the full course value. Please note that you can only transfer once.

Alternatively, for cancellations requests received more than 20 working days before the course date we will offer a refund less an administration fee of 10% of the course price.

We regret that no refunds can be given after this period. Non-attendance without any notification will be charged at full rate.

Cancellations must be made in writing and reach our office 20 working days prior to the course date.

Your place on a course is not guaranteed until we receive the payment. All payments must be made in full before the course date.

All our trainers have been working for many years in their respective sectors before they begun to teach so they bring a wealth of practical experience to the classroom.

Most of them used to work for 15 or more years in the financial sector and corporate world, and were holding positions of Directors, VP and Senior Managers. Some of them have published books and have written articles for specialised magazines and newspapers including FT, The Independent, The Times etc. You can find detailed biography of each trainer on the page of the course you want to register for.

Yes, you will receive a Certificate of Attendance at the end of the course you attend.

If you have to apply for a Visa to attend a course in the UK, we will issue a letter to support your application. The letter will be issued only after the payment for the course has been made.

It is delegate’s responsibility to obtain a Visa and failure to do so will not make the participant exempt from the cancellation policy.

Anyone suspected of applying for a training course simply to gain a Visa letter will be reported to their embassy.

We will need the following information to issue an invitation letter:

  • Full name as it appears on your passport
  • Date of birth
  • Passport number
  • Passport issue date
  • Passport expiry date

This topic can be arranged on in-company basis. If you have a group of 4 or more we can customise it and deliver in any location worldwide. Contact us to discuss your requirements


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