Introduction
In this new age of information, Accounting is considered as the language of business. Managers utilize this language to communicate the necessary financial information within and outside the organization. Proper flow of information in an organization alleviates challenges in the decision-making process, boosts efficiency and ensures the organization’s survival in the industry.
Accounting makes this smooth flow of information possible for an organization. Financial accounting is the process of recording, classifying, summarizing and interpreting financial information of a business entity in an orderly manner, usually in the form of financial statements.
The concept of financial accounting is much broader than that of bookkeeping as it goes beyond merely recording financial transactions but also entails interpreting those transactions in a manner most useful to the users of financial statements.
Course Objectives
Financial Accounting and Reporting course aim to achieve the following objectives with their participants:
- To understand different fundamentals, jargons, systems of Financial Accounting and Reporting
- To understand accounting concepts and conventions
- To identify various users of financial information and prepare financial reports according to their relevance
- To be able to read and prepare financial statements such as Profit and Loss Accounts, Balance Sheet, Cash Flow Statements
- To be able to interpret and analyses financial statements using different analysis tools such as financial ratios
- To understand the challenges of financial reporting
- To be able to use accounting information as a tool in making managerial decisions
- To evaluate the financial health of the firm using financial information and comparing financial performance
- To gain awareness of emerging accounting trends in the industry
Who Should Attend?
- Budding entrepreneurs
- Start-up founders
- Proprietor owners
- Taxation authorities
- Finance heads/managers
- Departmental heads and managers
- Credit managers
- Shareholders
- Investors
- Financial analysts
- Investment advisors
- Financial planners
- Wealth managers
Course Outline
Module 1: Basics of Financial Accounting
- Meaning, need and terminology of financial accounting
- Accounting cycle
- Double-entry system
- Accounting equation
- Cash and accrual system of accounting
- GAAP
- Accounting concepts and conventions
Module 2: Basics of Financial Reporting
- Evolution of regulatory framework of financial reporting, conceptual framework
- IFRS
- Users of financial information
- Theories of disclosure
- Accounting standards
- Annual report
Module 3: Recording and posting of transactions
- Source documents
- Classification of accounts
- Journalizing
- Posting and balancing
Module 4: Preparation of financial statements
- Aspects of financial statements
- Manufacturing account, trading account
- Profit and loss account- classification, accounting treatment of revenue and expenses
- Balance sheet- classification, accounting treatment of assets and liabilities
Module 5: Accounting for share capital
- Classification of capital
- Kinds of shares
- Basic terminology
- Off-balance sheet finance
- Financial instruments
- Allotment of securities
- The balance sheet of the company
Module 6: Depreciation and valuation for inventories
- Basics of depreciation
- Methods of allocating depreciation- Straight line method, written down value method
- Sinking fund method
- Provisions and reserves
- Revenue reserve and capital reserve
- Inventory systems: periodic and perpetual
- Methods of valuation of inventories: LIFO and FIFO method
Module 7: Analysis and interpretation of financial statements
- Ratio analysis
- Liquidity ratios
- Solvency ratios
- Activity ratios
- Profitability ratios
- Cash flow statement
- Measures of return
Module 8: Accountability and ethics
- Ethical issues in accounting
- Accounting code of conduct
- Function of auditing
- Corporate governance
- Case study