Financial Statement Analysis – A Critical View

This interactive course will review the particulars of financial statement analysis and the ways in which some companies may take advantage of US GAAP accounting standards to potentially mislead stakeholders with their publicly reported results. Since different ratios are important for each industry, the trainer endeavors to analyze several different companies in various industries to illustrate learning points. The course will be comprised of a lecture, case studies, and exercises analyzing credit and equity reports.

Course Objectives

By the end of the course, participants will be able to:

• Appreciate the qualitative and quantitative approaches to analyzing financial statements
• Discuss the role of the auditor and the various opinions available
• Explain the role that management judgement plays in the Balance Sheet, Income Statement, and Cash Flow Statement
• Recognize the importance and pitfalls of ratio analysis
• Explain the importance of the Management Discussion & Analysis (MD&A) and the footnotes
• Explain how companies can manipulate revenues to boost earnings
• Recognize how and why management teams may adjust expenses to control EPS
• Identify the misapplication of cash flows in the three sections of the statement of cash flows
• Review the balance sheet and identify line items which may be (under)overstated
• Compare financial statements of different companies and the same company across different time periods

Suggested Prerequisites:

• Financial Statement Analysis

Program Level:Intermediate

Advance Preparation:None

Computers and Financial Calculators: Calculators

Recommended CPE Credits:7