Advanced Financial Accounting Workshop

•         The purpose of accounting.
•         Why non-accountants need to understand accounting.
•         The basic terminology of business transactions.
•         How to prepare a cash budget.
•         The gross profit margin of a product and business.
•         The difference between cash and the profits of a business.
•         That a set of financial statements can be prepared from data included a trial balance.
•         The difference between revenue and capital expenditure and the significance of the distinction.
•         How to prepare a simple statement of profit or loss.
•         The purpose of a statement of financial position.
•         The assets and liabilities of a business.
•         What an accrual and a prepayment are and how to account for them.
•         How to prepare a statement of financial position for a simple business.
•         Why non-current assets need to be depreciated.
•         How to use the straight-line and the reducing-balance methods of providing for depreciation.
•         Why we need to provide for bad and doubtful debts.
•         How to prepare a final adjusted statement of profit or loss and statement of financial position.
•         Some of the limitations of a statement of financial position.

The Cash Budget

•         Why should managers understand accounting?
•         Accounting concepts
•         Timings of receipts and payments
•         Calculation of the gross profit and gross profit margin

Introduction to the Statement of Profit and Loss

•         Measuring profit
•         Double-entry bookkeeping
•         Types of account
•         Trial balance
•         Capital versus revenue expenditure/income
•         Calculating the cost of sales

Balancing the Basics

•         Assets and liabilities
•         The statement of financial position
•         Accruals and prepayments

Accounting for Depreciation and Bad Debts

•         The straight-line method
•         The reducing-balance method
•         Disposals of non-current assets
•         Bad and doubtful debts
•         Uses and limitations of the statement of financial position

Company Finance

•         The nature of limited companies
•         Share capital
•         The stock exchange
•         Venture capital
•         Loan capital and debentures
•         Retained profits
•         Reporting requirements

Company Accounts

•         The statement of profit or loss
•         The statement of changes in equity
•         The statement of financial position
•         Intangible assets
•         Revaluing assets
•         The statement of comprehensive income
•         Corporate governance

The Statement of Cash Flows

•         Sources of cash flow
•         Non-current assets and the statement of cash flows
•         Movements in working capital
•         Tax, interest, and dividends
•         What to look for in a statement of cash flows
•         Managing cash

Interpreting Financial Statements

•         Ratio analysis
•         The pyramid of ratios
•         Probability ratios
•         Liquidity ratios
•         Control of working capital
•         The working capital cycle

Capital Structure and Investment Ratios

•         Capital structure
•         Investment ratios
•         Limitations of ratio analysis

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.