Course Methodology

The course uses interactive techniques, such as brief presentations by the consultant, the practical application of theories, and group exercises to exchange experience and apply knowledge acquired throughout the course.

Course Objectives

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

• List the basic financial statements and determine the best structure and presentation practices
• Explain how to properly account for revenues and expenses, leading to the preparation of an income statement
• Classify the accounts of assets, liabilities, and equity, leading to the preparation of the balance sheet and statement of owners’ equity
• Prepare the cash flow statement
• Apply accounting adjustments required for accurate financial reporting
• Recognize reporting for major accounts and transactions

Target Audience

Professionals in finance and accounting, accountants at all levels seeking to enhance practical finance and accounting knowledge, and certified financial and accounting personnel.

Target Competencies

• Mapping trial balance accounts to financial statements accounts
• Applying accounting adjustments
• Preparing financial statements
• Practicing financial statements' notes preparation
• Realizing minimum disclosure requirements
• Applying International Financial Reporting Standards (IFRS)

Financial Statements and Business Decisions

• The financial accounting cycle
• The four or five key financial statements
• Management uses of financial statements
• Relationship among financial statements
• Essential notes and disclosures to the financial statements
• Basis of preparation
• Accounting Policies
• Related parties' transactions
• Commitments and contingencies
• Risk management
• Subsequent events

Income Statement

• Revenue and expense recognition: Applying the accrual basis
• The matching principle between revenues and expenses
• Illustration of the income statement
• Other comprehensive income components
• Earnings per share reporting

Balance Sheet and Statement of Owners' Equity

• Purpose of the balance sheet
• Components of the balance sheet accounts
• Illustration of the balance sheet
• Minimum presentation requirements of balance sheet accounts
• Definitions of accounts in the balance sheet
• Correct presentation for statement of owners' equity

Cash Flow Statement

• Purpose of the cash flow statement
• Exploring the three sections of a cash flow statement
• Direct method cash flow statement preparation
• Indirect method cash flow statement preparation
• Linking cash flow statements to notes

Accounting Adjustments

• Accruals and unearned revenues
• Prepayments and deferrals
• Accounting estimates
• Depreciation
• Impairment of assets

Financial Reporting for Major Accounts and Transactions

• Measuring and reporting accounts receivable
• Estimating and accounting for bad debts
• Costs to be capitalized in inventory value
• Inventory cost flow assumptions
• Presenting inventory at a lower cost or net realizable value
• Classifying, measuring, and recording long-lived assets
• Repairs, maintenance, and additions to long-lived assets
• Depreciation and amortization
• Disposal of long-lived assets
• Accounting and reporting for intangibles
• Accounting for investments
• Passive investment, exercising significant influence or control
• Types of equity and debt investments
• Definitions and classification of liability accounts
• Types of ownership and stocks
• Accounting for capital and dividends