Advanced Financial Accounting

General

Program Description

Advanced Financial Accounting

Key Information

  • Course Code: AFB104
  • Duration: 9 days
  • Fee: £4645

Course Outline

The Cash Budget

  • Why should managers understand accounting?
  • Accounting concepts
  • Timings of receipts and payments
  • Calculation of the gross profit and gross profit margin

Introduction to the Statement of Profit and Loss

  • Measuring profit
  • Double-entry bookkeeping
  • Types of account
  • Trial balance
  • Capital versus revenue expenditure/income
  • Calculating the cost of sales

Balancing the Basics

  • Assets and liabilities
  • The statement of financial position
  • Accruals and prepayments

Accounting for Depreciation and Bad Debts

  • The straight-line method
  • The reducing-balance method
  • Disposals of non-current assets
  • Bad and doubtful debts
  • Uses and limitations of the statement of financial position

Company Finance

  • The nature of limited companies
  • Share capital
  • The stock exchange
  • Venture capital
  • Loan capital and debentures
  • Retained profits
  • Reporting requirements

Company Accounts

  • The statement of profit or loss
  • The statement of changes in equity
  • The statement of financial position
  • Intangible assets
  • Revaluing assets
  • The statement of comprehensive income
  • Corporate governance

The Statement of Cash Flows

  • Sources of cash flow
  • Non-current assets and the statement of cash flows
  • Movements in working capital
  • Tax, interest, and dividends
  • What to look for in a statement of cash flows
  • Managing cash

Interpreting Financial Statements

  • Ratio analysis
  • The pyramid of ratios
  • Probability ratios
  • Liquidity ratios
  • Control of working capital
  • The working capital cycle

Capital Structure and Investment Ratios

  • Capital structure
  • Investment ratios
  • Limitations of ratio analysis

Target audience

This financial literacy course is suitable for:

  • Those who wish to understand the implications of decisions made across a range of financial accounting issues.
  • Those who wish to develop the ability to analyze, interpret, and question the accounting information they may encounter in a business context.
  • Those who wish to acquire a sound appreciation of accounting and finance in order to communicate and succeed in the business world.
  • Non-accounting staff who desire a practical introduction to the fundamentals of financial accounting.

Learning outcomes

Upon completion of this financial literacy training course, you will be able to understand:

  • The purpose of accounting.
  • Why non-accountants need to understand accounting.
  • The basic terminology of business transactions.
  • How to prepare a cash budget.
  • The gross profit margin of a product and business.
  • The difference between cash and the profits of a business.
  • That a set of financial statements can be prepared from data included a trial balance.
  • The difference between revenue and capital expenditure and the significance of the distinction.
  • How to prepare a simple statement of profit or loss.
  • The purpose of a statement of financial position.
  • The assets and liabilities of a business.
  • What an accrual and a prepayment are and how to account for them.
  • How to prepare a statement of financial position for a simple business.
  • Why non-current assets need to be depreciated.
  • How to use the straight-line and the reducing-balance methods of providing for depreciation.
  • Why we need to provide for bad and doubtful debts.
  • How to prepare a final adjusted statement of profit or loss and statement of financial position.
  • Some of the limitations of a statement of financial position.
  • The nature of a limited company.
  • The main external sources of finance available to limited companies, and their characteristics.
  • The role of a stock exchange.
  • The reporting requirements placed upon the directors of a company.
  • How to prepare a statement of profit or loss and a statement of comprehensive income for a limited company.
  • How to prepare a statement of financial position for a limited company.
  • The purpose of a statement of changes in equity.
  • The importance of reliable corporate governance.
  • The crucial importance of cash to a business.
  • The difference between profit and cash.
  • How to prepare a simple statement of cash flows.
  • Who uses financial statements and what their needs are.
  • How to calculate and interpret ratios that enable you to comment on a business’s profitability, liquidity, and efficiency.
  • How to calculate and interpret ratios that enable you to comment on a business’s capital structure, investment returns, and performance.
  • The limitations of ratio analysis.

What is Included:

  • 54 hours of classroom-based training
  • Apple iPad
Last updated Mar 2020

About the School

London Business Training & Consulting (LBTC) is the UK’s premier business and management training and consulting service provider. We cater to both individual and organisational clients from all o ... Read More

London Business Training & Consulting (LBTC) is the UK’s premier business and management training and consulting service provider. We cater to both individual and organisational clients from all over the world. Read less