Principles of Financial Accounting and Reporting (10 Days)

Introduction:

This financial accounting and reporting course is specifically designed to enhance your understanding of the critical importance of financial reporting within the business context. It will demonstrate how the Annual Report is a vital tool in management’s communication with stakeholders, disclosing actions and outcomes.

The course will assess the impact of legal frameworks, accounting standards, and financial examinations required for qualification in global stock markets. Additionally, it will focus on the role of internal reporting in cost management, problem identification, problem-solving, and profit-maximizing decision-making.

In addressing the persistent issue of competency and stagnation among administrators, one of the core aims of this training is to provide participants with a solid understanding of the fundamental elements of financial accounting in practice.

Participants will gain a deep understanding of the concept and content of financial accounting and will appreciate the components of financial reporting that enhance accountability for an organization’s funds.

Objectives:

At the end of this financial accounting and reporting course, participants will be able to:

• Provide detailed justification for the assessment of new capital projects and evaluate their merit to the organization.
• Utilize analytical tools and tactics effectively.
• Understand the importance of investments in organizational growth and competitive advantage.
• Recognize the role of accounting principles and values in financial communication.
• Implement accounting standards within their entities.
• Articulate key audit concepts.
• Enhance understanding of capital budgeting and financial assessment.
• Comprehend business risk considerations.
• Develop the skills to identify and solve problematic issues.
• Build confidence in addressing future financial challenges.

Training Methodology:

• Simulations of practical financial reporting
• Senior-level speeches
• Group collaboration
• Performance of fictional activities
• Interactive quizzes

Course Outline:

Unit 1: Financial Accounting and Corporate Governance

• Valuing business objectives and maximizing stakeholder returns.
• Identifying key financial stakeholders.
• Embedding accountancy in the production of annual reports.
• Researching critical constructs related to financial reporting.
• Examining the theoretical framework of accounting and reporting.
• Understanding accounting standards and their formation.
• Investigating high-profile financial scandals.
• Addressing agency problems.
• Understanding financial accountability and its relation to audit services.
• Implementing corporate governance practices across different regions.
• Analyzing the corporate governance relations between the UK, US, and GCC regions.
• Profiling current assets and understanding related constraints.
• Managing short-term and long-term assets.
• Understanding financial obligations.
• Analyzing the contents of a balance sheet.
• Considering factors beyond financial ratios in financial statement analysis.
• Familiarizing with key accounting concepts.

Unit 2: Accounting Systems, Reporting, and Decisions

• Formulating the Income Statement.
• Analyzing profitability.
• Classifying income and expenses.
• Assessing current and noncurrent assets.
• Understanding the structure of Income Statements and Balance Sheets.
• Exploring the relationship between cash and sales, and asset value and profit.
• Managing stocks, accounts receivable, accounts payable, and cash.
• Exercising judgment in financial decisions.
• Understanding working capital definitions and functions.
• Analyzing cost-volume-profit (CVP) relationships and break-even points.
• Addressing the limitations of break-even analysis.

Unit 3: Cash Flow and Investment Appraisal

• Creating and analyzing cash flow statements.
• Understanding the relationship between cash flow statements, financial position, and income statements.
• Exploring cash flow management strategies to enhance future performance.
• Understanding the time value of money, including present and future values.
• Applying investment appraisal techniques such as NPV and IRR.
• Managing relevant and free cash flows.
• Addressing the effects of inflation, risk, and uncertainty.
• Managing capital investment projects.
• Evaluating asset replacement and annual equivalent value.
• Understanding capital rationing.

Unit 4: Financing and Cost of Capital

• Understanding business funding principles.
• Exploring sources and types of finance and the importance of gearing.
• Analyzing defensive, neutral, and aggressive financing strategies.
• Understanding stock exchange listing and cost of capital concepts.
• Calculating the cost of equity, debt, and WACC.
• Applying the Capital Asset Pricing Model (CAPM).
• Valuing companies using various methods.
• Understanding shareholder value-added and financial growth modeling.
• Using Excel for forecasting and DCF evaluation.

Unit 5: Analysis and Comparison of Financial Statements

• Analyzing the components of an Annual Report.
• Exploring current trends in financial disclosures.
• Conducting financial statement analysis, including common size statements.
• Applying financial ratio analysis, including the Dupont system.
• Assessing profitability, liquidity, efficiency, capital structure, and investment performance ratios.
• Evaluating cash versus profit performance.
• Approaching value addition and company division.
• Recognizing the limitations of financial reports and forecasting business failure.
• Considering nonfinancial factors and managing working capital deficiencies.
• Understanding subsequent events and their effects on financial statements.
• Applying assessment ratios to predict business failures, including Altman Z-Score.

Title: Senior Accountant Financial Reporting

Participants interested in advancing to a senior accountant position with a focus on financial reporting will benefit from analyzing financial accounting and reporting within a corporate context. For those seeking to develop financial reporting terminology and pursue certification opportunities, this course will provide essential education for building competence in financial reporting.