Course Methodology

This course uses a mix of interactive techniques, such as brief presentations by the consultant and the participants, in addition to demonstrating theoretical core accounting topics. The course also features real-life case studies that are discussed, solved and presented by participants.

Course Objectives

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

• Define accounting and the accounting cycle
• Identify the major rules and principles of accounting under the International Financial Reporting Standards (IFRS)
• Demonstrate knowledge of the basic accounting equation, double-entry bookkeeping, and the new automated accounting systems
• List the key financial statements (balance sheet, income statement, changes in shareholders’ equity and cash flow statement) and their components
• Practice financial statements’ adjustments at month and year-end

Target Audience

Managers, supervisors and staff from any function including the accounting department who need to improve their understanding, application and techniques of the language of numbers.

Target Competencies

• Accounting for business transactions
• Preparing income statements
• Interpreting balance sheets
• Analyzing cash flow statements
• Preparing adjustment entries
• Using debits and credits
• Applying international financial reporting standards

Introducing accounting and financial statements

• Definition of accounting
• Users of accounting information
• Basic financial statements
• The corporation defined
• Presentation of accounting information by different business entities

International financial reporting standards

• The International Accounting Standards Board (IASB)
• Introduction to IFRS
• Main differences between IFRS and US Generally Accepted Accounting Principles (GAAP)

Double-entry accounting

• The accounting equation
• Traditional double-entry bookkeeping
• Your asset is his liability
• The chart of accounts
• The general journal
• The general ledger
• The trial balance
• Modern bookkeeping: automating transactions

Income statements

• Defining the income statement
• Defining revenue and its recognition
• Defining expenditures and their classifications
• Calculating profit
• Gross profit
• Operating profit
• Net profit
• The income statement illustrated

Net equity

• Defining capital stock
• Dividends are not an expense
• Cash dividends, stock dividends and stock split
• Definition of treasury stock
• Retained earnings - not the same as cash

The balance sheet and its components

• Defining the balance sheet
• Assets
• Liabilities
• Equity
• Current versus non-current assets and liabilities
• The balance sheet illustrated

Cash flow statement

• Defining the statement of cash flows
• Cash and cash equivalents
• Classification of cash flows
• Operating activities
• Investing activities
• Financing activities
• The cash flow statement illustrated

Adjustments to financial statements

• The accrual concepts
• Accruals and prepayments
• Depreciation
• Bad debts
• Provisions for contingencies