Accounting and Financial Analysis

Aims

The aim of this course is to provide a good understanding of accounting principles and practices of financial accounting. Users of financial data should be in position to understand the foundations of the key financial statements and the fundamental limitations of accounting data. Analysis of financial data is an everyday tool to managers, financial analysts and many market participants. The purpose of this course is to give you the foundation for such analysis. Therefore on completion of this course you should be able to understand key financial statements, including cash flow statement. You should be able to evaluate the financial performance, financial position and financial adaptability of a general purpose company. Developing expertise in financial accounting and analysis requires a significant amount of practice.

Learning Outcomes

On completion of the course students will be able to:

• Read and understand key financial statements
• Construct a basic set of financial statements
• Critically evaluate some of the accounting decisions that have gone into the preparation of these statements
• Evaluate company performance using a set of financial statements
• Use accounting data for management planning and decision making.

Content

• The Accounting Framework.
• Structure of Financial Statements.
• Balance Sheet Components Inventory and PPE.
• Accounting for R&D & Intangibles- Liabilities- Equity.
• Accrual Accounting and Revenue recognition- Cash Flow Statement.
• Financial analysis (ratios and DuPont decomposition).
• Group accounts, basic consolidations.