Corporate Accounting In International Accounting Standards
Corporate Accounting In International Accounting Standards
Course Code:
FA15
►Course Objective
Record and classify commercial transactions in business accounting systems, and use professional judgement in the valuation of non-current assets and inventories and assess their impact on profitability
Prepare the three key financial statements: income statement; balance sheet; statement of cash flows
Apply the accounting concepts, IASs, and IFRSs with regard to preparation of the financial statements and annual financial reporting
Use financial analysis to interpret the financial statements and annual reports and accounts to evaluate the financial performance and financial position of the organisation
Provide assurance to shareholders and others through corporate governance and internal audit
►Target Audience
Chief financial officers, vice-presidents of finance, controllers, treasurers
Professionals responsible for financial reporting
Accountants, project managers, and budget analysts who would like to refresh and update their financial accounting and reporting knowledge and skills
►Course Outline
DAY 1
The Importance of Accounting in Business
Business objectives and shareholder wealth maximisation
The users of financial information
The role of accounting in financial reporting
Double-entry accounting using debits and credits, T-accounts and the trial balance
The structure of the accounting system and accounting transactions
Incomplete transactions at the period end – the five accounting adjustments
How business transactions are recorded – the ledgers and books of account
Accrual accounting vs. cash accounting, accruals and prepayments, and the accounting period
DAY 2
The Structure and Format of Financial Reports
The income statement and its two elements: revenues; costs, and the accounting equation
What the income statement tells us, its purpose, and structure: categories of revenue and cost and the calculation of profit
Circumstances where judgement needs to be applied
The balance sheet and its three elements: equity; assets; liabilities, and the accounting equation
What the balance sheet tells us, its purpose, and structure: shareholders’ equity; current and non-current assets; current and non-current liabilities
Non-current assets valuation and depreciation, and inventory valuation and cost of sales
The links between asset valuation and profit
Long-term financing, short-term financing and working capital
DAY 3
The Statement of Cash Flows and Group Accounting
The statement of cash flows and its three elements: cash flows from operating activities (direct and indirect); cash flows from investing activities; cash flows from financing activities
What the statement of cash flows tells us, its purpose, and structure
The cash flow forecast
The creation of groups of companies
Subsidiary companies, associated companies, and joint ventures
Preparation of a group balance sheet
The conceptual frameworks of accounting
The development of International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs)
DAY 4
Analysis and Interpretation of Financial Reports
Analysis of financial position and financial performance
Interpretation of financial statements – key principles
Ratio analysis: profitability ratios; efficiency and working capital ratios; liquidity ratios; investment ratios; financial structure ratios
Pyramids of ratios
Integration of ratios – the DuPont system
Common size (horizontal) and vertical trend analysis
Predicting financial distress using the Altman’s Z-score
The limitations of financial statements analysis
DAY 5
Published Financial Reports and Corporate Governance
The annual report and accounts of organisations in the UK, USA, GCC and other countries
Recent developments in financial reporting
Financial reporting – it is not just the numbers
Segmental analysis
Post balance sheet events and contingencies
The agency problem and international financial scandals
The development of corporate governance in the UK, USA, GCC and other countries
A glossary of accounting and financial terminology