What does the Foundation Program cover?
Grasp the “what”, “why” and “how” analysis of financial statements at our online foundation program. Discover how you can use financial data to add value and improve overall business acumen and commercial efficiency with the help of an industry expert and financial modeler.
Watch Rahul, our expert trainer as he provides a breakdown of the program and what it covers.
Learning Objectives
- Grasp the difference between Cash vs Accrual accounting
- Gain an in-depth insight into the accounting equation and explore how everyday business transactions impacts the same
- Discover how Income, Balance Sheet and Cash flow statements are prepared
- Learn to perform financial statement analysis
Program Agenda
Accounting
Accounting Practice
- Accounting standards & regulatory bodies
- IFRS conceptual framework and Financial statement elements
Accounting Mechanics
- The accounting equation (A = L + E)
- Cash Vs. Accrual
Exercise: Using excel understand the impact of various transactions impact the accounting equation
Financial Analysis
- Introduction to ratio analysis - Vertical & horizontal common size analysis
- Types of ratios: profitability, efficiency, liquidity and solvency ratios
- Normalizing & Regrouping financial statement to arrive at meaningful ratios
Exercise: Perform comparative financial analysis for two publicly traded companies
Financial Statements
Income Statement
- Uses and Key components
- Revenue and Expense Recognition
- Gross Profit, EBITDA, EBIT, Net Income and EPS
Balance Sheet
- Key Elements - Asset, Liability & Equity
- Current & Non – Current Assets & Liabilities
- Components of Shareholders Equity
- Measurement methods of Assets & Liabilities
Exercise 1: Prepare financial statements in Excel using transactions for an existing business
Exercise 2: Compare financial statements of 2 publicly traded companies and identify key components
Cash Flow
- Introduction, applications and importance
- Classification: CFO, CFI & CFF
- Direct & Indirect method of CFO preparation
