Essentials of Accounting for Finance Professionals

Objective
The Essentials of Accounting for Finance Professionals training course provides a practical understanding of the accounting information in corporate financial statements and explains how to use that information. The program does not aim to make participants into accountants – but it will help explain what accountants do and why they do it.

Key benefits
By attending this program, you will:

• Enhance your ability to understand and use accounting information contained in company annual reports – balance sheets, income statements, statements of cash flows, and footnotes
• Understand the principles and methods used to prepare financial statements under IFRS and GAAP
• Deepen your ability to understand and use information about the key elements of financial statements
• Develop a better understanding for the subtle and complex issues in financial reporting
• Sharpen your skills for using financial statements to assess profitability and risk, how they have changed over time, and how they compare with key competitors

Day 1
Overview of financial statements

• Balance sheets
• Income statements
• Cash flow statements
• Statements of shareholders’ equity

 Overview of general principles of accounting under International Financial Reporting Standards (IFRS)

• Measurement
• Recognition
• Disclosure
   

Overview of the information in financial statements and how it is used by a wide variety of decision makers

The role of accounting information in agency settings and contracting

The demand for auditing and accounting standards

The accounting process – how to capture, measure, and report economic activities

Subtle but complex accounting issues

• Measurement: historical cost, fair value, estimation and allocation
• Defining assets and liabilities
• Recognition principles that effect income measurement: revenue recognition, expense recognition; unrealized gain/loss recognition (fair values); matching to revenues vs matching to periods
• Recognition principles that affect balance sheet measurement: accruals, deferrals
• Allocations over time
• Disclosure: footnotes, management discussion, manager reputation, voluntary disclosure 

Day 2
Accounting for operating activities

• Cash
• Receivables
• Inventory
• Prepaid expenses
• Payables and deferred revenues
• Long term accruals: pensions and deferred taxes
   

Accounting for investing activities

• Short- and long-term investment securities
• Property, plant and equipment
• Intangible assets
• Joint ventures, equity method investments, consolidations
   

Day 3
Accounting for financing activities

• Short and long term debt: bonds, mortgages, leases
• Shareholders’ equity: common and preferred paid in capital, retained earnings, treasury stock, accumulated other comprehensive income, minority interest

Understanding the outcomes of the accounting process

• In-depth review of financial statements

US Generally Accepted Accounting Principles (GAAP) vs International Financial Reporting Standards (IFRS):

• Key differences
• Progress toward convergence

The Essentials of Accounting for Finance Professionals training course is designed for all finance professionals who need to increase their understanding of accounting principles and methods in order to enhance their knowledge and use of the information in financial statements. No prior knowledge of accounting and financial statements is necessary.

This is a useful program to take prior to the Advanced Financial Statement Analysis program for participants who have had little or no exposure to financial accounting and reporting.

Amsterdam Institute of Finance is registered with CFA Institute as an Approved Provider of continuing education programs. Essentials of Accounting for Finance Professionals is eligible for 18 CE credit hours as granted by CFA Institute. If you are a CFA Institute member, CE credit for your attendance at this event will be automatically recorded in your CE Diary.
 

"Great program: pitched just right with the appropriate combination of theory and practice. Definitely a pleasing extension to my corporate finance knowledge."
Consultant
Troika Ltd.
United Kingdom

"Very useful, enlightening and highly contemporary in its focus and orientation. A good program for all bank management and corporate finance practitioners."
Vice President, Internal Audit Department
Arab Banking Corporation
Bahrain