Understanding Financial Statements for non-finance managers

Understanding Financial Statements for Non-finance Managers

BACKGROUND

This course is designed to provide non-financial managers and executives an understanding of how to analyse and interpret financial statements and the inter-relationship of the items in those statements. As a result of this course, you will appreciate better understanding of not only the financial statements but also how this information is being translated and used for business decisions. The SECRETS to performance measurement, evaluating the strength and weakness of a company is not the underlining profits but through the detailed ratios analysis and interpretations.

TARGET AUDIENCE

Suitable for managers and executives and managers who requires to interpret and evaluate financial statements. We encourage participants to attend our course on “Finance for Non-finance Managers” to understand the basic accounting concepts if the participants have no prior knowledge on accounting and finance.

LEARNING OBJECTIVES

At the end of the course, the participant is able to know

Understand the different types of Financial Statements
Understand the purpose of ratios calculation

Understand ratios implications and interpretations of the financial statements
How to apply key management ratios to evaluate the strengths and weaknesses of the organisation

PROGRAMME OUTLINE

The course will cover short lectures and discussions for the following topics:

Types of Financial Statements

Understand how financial statements are prepared, their purposes and usefulness of the following reports: Balance Sheet / Statement of Financial Position; Profit & Loss Statement / Income Statement / Statement of Comprehensive Income; Statement of Changes in Equity; Statement of Cash Flow
Distinction between Accrual Concept and Cash basis of financial statements preparation

The purpose of ratios calculation

Assist users of financial statements to invest, evaluate and measure performance and make informed decision

Ratios implications and interpretations of the financial statements

Analyse the trend and interpret in the areas of Liquidity, Profitability, Efficiency, Solvency and Marketability / Investment related ratios.
Knowledge of the different ratios inter-relationships