Executive Seminar: Reading and Interpreting Financial Statements

Overview

Understanding and speaking the accounting language 

Date: October 18 – 19, 2018 | Language of instruction: English

Target Group: Executives and managers who do not work in accounting, but who need and want to know accounting fundamentals to make better business decisions.

Program Duration: 2 days

Method: Presentation, interactive discussion, individual exercises, case studies and group activities. Published financial statements of companies are used as real-life examples. 

Academic Director: Prof. Dr. Alexander Himme

Seminar fees and registration deadline: 

  • 1.490 € (plus VAT)
  • 1.250 € (plus VAT); for registrations until July 15, 2018
  • Registration deadline: October 11, 2018

Contents

Day 1

Getting the basics of accounting

  • Distinguishing assets, liabilities, equity, revenues, and expenses
  • Describing fundamental accounting concepts and principles 
  • Differentiating financial and managerial accounting

Reading financial statements

  • Income statement, statement of changes in equity, balance sheet 
  • Linkages between these statements 
  • Cash flow statement

Analyzing financial statements

  • Horizontal, vertical, and ratio analysis 
  • Ratios to assess the liquidity, creditworthiness, efficiency and profitability of a firm

Interpreting the cash flow statement

  • Direct versus indirect cash flow statement of a firm
  • Cash flow statement as a predictor of the solvency of a firm


Day 2

Accounting treatment of tangible and intangible assets

  • Recognition of tangible assets 
  • The concept of depreciation
  • Reflection of intangible assets/activities in the financial statements

Earnings management

  • Accounting choices and how they affect financial outcomes
  • Options for earnings management 
  • Pros and cons of earnings management

Learning outcomes and benefits for your company

• Understand the meaning and fundamental components of financial statements (i.e. income/cash flow statement, balance sheet)
• Learn the inter-relationships between different components of financial statements
• Analyze the strengths and weaknesses of companies by using key financial ratios
• Realize how management decisions affect financial statements and vice versa 
• Acknowledge to what extent financial statements reflect the increasing importance of intangible assets 

Academic Director

Prof. Dr. Alexander Himme

Associate Professor of Management Accounting

Kühne Logistics University - KLU