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FINANCIAL STATEMENTS INTERPRETATION FOR EXECUTIVES

When we drive on a super highway, we need to keep our engine running at high speed whilst maintaining a clear mind. This means you need to keep one eye on the road and the other eye on your dashboard.
It is the same for business people when they make a decision. The decision maker of a company needs to pay attention to the company’s financial statements and, in addition, they need to understand the problems and analyze the trends based on the limited data available on a financial statement.
It is the same with investments and acquisitions, in that we need to analyze the financial statement of a targeted company. From this it helps us to understand our target and whether it is worth the investment.
When a company claims swift increases in sales we need to scrutinize its financial statements. Does good revenue indicate a solid financial status? When we are obsessed with sales and profits, do we pay enough attention to the cash flow of a company?
We should also wonder if the financial data and indicators are reliable. When a cash flow ratio and liquidity ratio all look normal, you never know if risks may be accumulating.

Training Objectives

To build effective communication with your finance department
To make a correct evaluation of a given company’s operating performance
To offer advice to decision makers from a financial perspective
To understand financial statements from the perspective of an owner and an executive officer
To identify fabrication in a financial statement
To learn to analyze a company’s working capital and discover what went wrong
To analyze profitability of a company from its cash flow statements

Training Attendees

This course is helpful to board members, chief executives, chief operating executives, and other senior management.


	Training Outline

	Basic concept of accounting
	Introduction of the procedure
	Accounting is an art.
	How to effectively use accounting knowledge
	Three financial statements
	Relationship of the three statements: balance sheet, income statement, cash flow statement
	Financial statements can be shaped for different purposes.
	Financial statements fitting into different industries.
	Financial statements created for different management philosophies.
	From inside out: How to read a financial statement

	Learn about the past, and future, of a company from its balance sheet
	Know the competiveness of a company from its income statement
	Identify if net income is genuine from a cash flow statement
	Discover what has been fabricated in a financial statement
	Decisions are made ever wiser
	Know the business environment from a company’s working capital
	Tell a company’s future health from its cash flow statement
	Obtain valuable information from reading notes on a financial statement