Understanding and Analysing Financial Statements

Prepare for your career progression by improving on your finance literacy

Financial statements contain a wealth of information on the performance and health of an organisation.  To harness that information, however, you need to have a sound understanding of the basis upon which financial statements are prepared and the ability to interpret the myriad of data correctly.  This information will be the foundation of the various types of business decisions to be committed.

This course provides participants with a good grounding of how financial statements are prepared, interpreted and used to extract critical information for business decisions.

By attending this 2-day course, you will be better able to:

  • Gain a comprehensive overview and understand the basis upon which financial statements are prepared.
  • Interpret financial statements correctly for different types of business decisions.
  • Detect symptoms of potential problems from the financial statements and other relevant parts of the Annual Report of a company.
  • Ask the appropriate questions when analysing financial statements.

Unique Features of this training course:

  • Ability to apply the key management ratios to evaluate the strengths and weaknesses of the business operations.
  • Limited class size to ensure one to one interactivity.
Course Date

Date: 2 & 3 Mar 2015

Who should attend?
  • Every member of the Finance team
  • Managers or executives who want an incisive understanding of working financial knowledge, especially financial statements


Andrew Goh has held senior regional positions in several MNCs such as Texas Instruments & Baxter Healthcare. He has managed a local SME from its early inception to its successful IPO on the SGX and subsequently served as its Executive Director responsible for finance and operations. His experience spans across corporate startup, restructuring and fund-raising activities. He is also adept in the areas of corporate governance and compliance with listing rules.

He has conducted training for clients in both the public and private sectors. Andrew has a degree in economics and management studies, and holds membership with CIMA, ICPAS and CPA (Australia).

Course Objectives

This course is designed to cover the main features of the financial statements prepared by business enterprises. Participants will understand the meaning and fundamental structure of the financial statements, and the inter-relationship of the items in the statements. Thereafter, participants will learn to apply key management ratios to evaluate the strengths and weaknesses of the business operations.

Types of Financial Statements
  • Corporate accounts, including consolidated accounts, management accounts
Understanding How Financial Statements Are Prepared
  • Balance sheet / Statement of Financial Position
  • Profit & Loss Statement / Income Statement / Income & Expenditure Statement
  • Statement of Comprehensive Income
  • Statement of Changes in Equity
  • Differences between accounting profit and cash flow
Assessing Financial Performance & Health
  • Trend analysis
  • Profitability (Profit Margins, Return on Assets)
  • Efficiency (Asset Turn, Fixed Asset Turn, Inventory Turn, Collection Period)
  • Solvency (Financial Gearing, Current Ratio, Interest Cover, Debt Service Cover)
Awareness of Common Investment-related Ratios
  • Return on Equity
  • Impact of financial gearing on Return on Equity
  • Dividend Yield & Dividend Pay-out
  • Price-Earnings ratio, Net Asset Value
Assessing Cash Flow
  • Importance of operating cash flow
  • Interpreting Cash Flow Statement
  • Relevance of Free Cash Flow
Quick Finders in Detecting Risks
  • Key points to look out for in financial statements
  • Relevance of other parts of the Annual Report
Course Schedule
Time Topics

Day One

  • Types of financial statements and their purpose
    • Statutory financial statements
    • Management financial statement
    • Consolidated Statements
11.30am Break
  • Understanding of preparation financial statements and compliance with accounting standards
  • The interpretation of information presented
1.00pm Lunch
  • Assessing financial performance and health
  • Using a case to prepare trend analysis on:
    • Profitability
    • Gearing
    • Efficiency
    • Investment returns
5.00pm End of course for Day 1
Time Topics

Day Two

  • Understanding and interpretation of key investment ratios:
    • Return on Equity
    • Dividend Yield and Payout
    • Price-Earnings
    • Net Tangible Assets
11.30am Break
  • Assessing Cash Flow
  • Differences between profits and cash flow
  • The Cash Flow Statement
1.00pm Lunch
  • Using a case to:
    • Prepare cash flow statement
    • Interpret the cash flow statement
  • Reading the Annual Report
    • Chairman/CEO statement
    • Notes to the accounts
5.00pm End of course

Seminar, class participation, printed materials, supplementary readings, and case studies.


A certificate of attendance will be issued to participants who successfully attended and completed the course.

Course Fee

$1,926.00 (incl GST)

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