Annual Report and Financial Statements Preparation

Introduction

Annual report and Financial statements are the essence of communication between companies and their different stakeholders. By attending this course, you will be able to prepare financial statements as per the International Financial Reporting Standards (IFRS) which will allow you to maintain your company’s financial reporting transparency and credibility.

Objectives

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

• Handle each part of the accounting cycle.
• Build effective chart of accounts.
• Perform accounting adjustments including deferrals and accruals.
• Create trial balance and adjusted trial balance.
• Describe and map charts of accounts to the financial statements.
• Prepare and present income statements, balance sheets, and cash flow statements.
• Formulate notes to the financial statements.

Course Outline

Day 1

Comprehending different types of Financial Information

• Who uses financial information and why?
• The flow of information in a company.
• Recognising different types of information and what it is derived from.
• Basic accounting terminology.
• Reporting formats.

Day 2

The Cash Cycle

• Cash versus profit.
• The flow of money in and out of a company.
• How this is managed and controlled.
• Customers & Suppliers: The collection and payment processes.
• Where finance comes from.
• Basic cash flow statements.

Day 3

Inventory and Fixed Assets

• How we establish the value of a companies’ inventory.
• Different Techniques of valuation.
• How fixed assets are recorded.
• Asset lives and depreciation.
• The physical verification of assets.

Day 4

Financial Statements

• Comprehending the composition of the Profit and Loss Account.
• Computing profitability ratios.
• The Balance Sheet explained.
• Utilising financial ratios.
• Interpreting results and making comparisons between companies.

Day 5

Costing and Budgeting

• How we classify costs and set standards.
• Costing methods used in business.
• Basic forecasting techniques.
• Preparing a departmental budget.
• Balancing actual performance with the budget.