Overview
Understanding and speaking the accounting language
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
Contents
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
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
Contact us
Christoph Kiese
Solutions & Development Principal Executive Education