Introduction

This 10 Days course covers financial accounting practice for a selection of current and complex topics. Both the accounting practice is explained and the implication of the relevant accounting standard is critically appraised, with a view to developing thorough knowledge and critical understanding of applicable accounting principles, concepts, and regulations. This course builds upon Financial Accounting. It aims to critically examine current financial accounting theory and practice for a selection of advanced topics, many of which are subject to current debate and review by the International Accounting Standards Board (IASB)

The course seeks to develop a thorough knowledge and understanding of the accounting principles, concepts, regulations and practices, applicable to selected topics. An important aim of the course is to develop skills of critical analysis through the study of relevant research papers on financial accounting topics.

This course is designed for:

• Those who wish to understand the implications of decisions made across a range of financial accounting issues.
• Those who wish to develop the ability to analyse, interpret, and question the accounting information they may encounter in a business context.
• Those who wish to acquire a sound appreciation of accounting and finance in order to communicate and succeed in the business world.
• Non-accounting staff who desire a practical introduction to the fundamentals of financial accounting.

Course Outlines:

Day 1

The Cash Budget

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

Day 2

Budgets and Performance Management

• Responsibility centres
• The controllability principle
• Profit-related performance measurement
• Standard costing and variance analysis
• Performance management in investment centres
• Non-financial performance indicators
• The balanced scorecard
• Performance measurement in not-for-profit organisations
• External influences on performance

Day 3

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

Day 4

Balancing the Basics

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

Day 5

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

Day 6

Company Finance

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

Day 7

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

Day 8

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

Day 9

Interpreting Financial Statements

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

Day 10

Capital Structure and Investment Ratios

• Capital structure
• Investment ratios
• Limitations of ratio analysis