07.03.2023
This course gives a detailed orientation of financial accounting. Though I have done some of the basic in my bachelor, details explanation given here with practical example helps me to clear some confusion I have previously.
Fundamentals of Financial Reporting
with
Antoniya Baltova
This course is designed to equip you with the knowledge and skills necessary to effectively read, analyze, and interpret financial statements. You will learn to confidently navigate the complex world of financial reporting, evaluate a company's financial health, identify potential risks, and make strategic financial decisions.
7 hours 61 lessons
Start course
61 High Quality Lessons
3 Practical Tasks
7 Hours of Content
Certificate of Achievement
Course Overview
True and fair financial reports are crucial for the financial operations of companies from all industries. They provide valuable business performance information to a wide range of stakeholders, including the firm’s internal management and external investors. In the Fundamentals of Financial Reporting course, you will learn how to read, understand, and analyze the core financial statements (Income Statement, Balance Sheet, Statement of Changes in Equity, and Cash Flow Statement) and the supplementary financial information (Management Discussions and Analysis, Audit Reports, Notes to the Financial Statements, etc.) published in the Annual Report of a company. We examine the key aspects of revenue and expense recognition, learn how to calculate EPS and DEPS, distinguish between operating and non-operating components of the Income Statement, and much more. The Fundamentals of Financial Reporting course covers the specifics of the major current and non-current assets and liabilities and how to evaluate a company’s liquidity and solvency positions. You will learn to construct a Cash Flow Statement in Excel, convert cash flows from the Indirect to the Direct method, and the difference between Free Cash Flow to the Firm (FCFF) and Free Cash Flow to Equity (FCFE). We also introduce the concept of “quality” of financial reporting and discuss the possible motivations for low-quality financial reports, the Fraud Triangle, and the most common accounting warning signs. Sign up now to master your financial reporting skills and take you finance career to the next level!
Topics covered
Financial AccountingFinancial ReportingIFRSInvestment Analysis
What You'll Learn
In The Fundamentals Financial Reporting course, we examine various aspects of financial reporting and analysis, including:
The importance of financial reporting standards and the quality of published financial information
The IASB Conceptual Framework for Financial Reporting
Financial reporting and measurement basis for the main Balance Sheet elements
Profitability measures at different Income Statement levels
Preparing Cash Flow Statements under the direct and indirect methods
Common-size analysis, accounting warning signs, and fraud motivations
Curriculum
- Introduction Free1 Lesson 3 Min
In this introductory lesson, you will meet your instructor and get acquainted with the course structure and topics covered.
What does the course cover Free - Introduction to Financial Statements Analysis and Financial Reporting13 Lessons 73 Min
In this section, we introduce the main financial statements and supplementary sources of information used in financial analysis. Next, we explain why auditors provide an opinion on published financial information and what the main types of audit reports are. Last but not least, we discuss the importance of setting financial reporting standards and examine the elements of the IASB Conceptual Framework for Financial Reporting.
Introduction to Financial Reporting FreeThe Main Financial Statements FreeSupplementary Sources of Financial InformationAuditor's ReportsFinancial Statement AnalysisThe Financial Statement Analysis FrameworkThe Importance of Financial Reporting StandardsStandard-setting Bodies and RegulatorsThe Conceptual Framework for Financial Reporting (Part 1)The Conceptual Framework for Financial Reporting (Part 2)Basics of AccountingGeneral Requirements of Financial StatementsAlternative Financial Reporting systems - Understanding the Income Statement13 Lessons 96 Min
This section of the financial reporting course is dedicated to the Income Statement. We explore and give examples of the main Income Statement items—gross and net revenue, Cost of Goods Sold (COGS), Selling, General and Administrative expenses (SG&A), payroll expenses, interest, taxes, and others. We show you how to calculate different levels of profitability, Earnings per Share (EPS), and Diluted Earnings per Share (DEPS). Last but not least, we examine the items that are included in the Other Comprehensive Income section.
Components of the Income StatementAlternative Presentation FormatsRevenue Recognition - PrinciplesRevenue Recognition - Practical ApplicationsExpense Recognition - PrinciplesExpense recognition - Practical ApplicationsFinancial Reporting for Non-recurring ItemsOperating and Non- operating Components of the Income StatementEarnings per Share (EPS)Dilutive vs. Antidilutive SecuritiesCommon-size Income StatementThe Income Statement - Ratio AnalysisWhat is Other Comprehensive Income - Understanding the Balance Sheet12 Lessons 88 Min
Here, we cover in detail the main Balance Sheet elements - current and non-current assets and liabilities and shareholders’ equity. We explore different measurement bases of these elements (historical cost, current cost, fair value, etc.) and explain what a Common-Size Balance Sheet is. Lastly, we calculate and interpret some liquidity and solvency ratios.
Components of the Balance SheetThe Balance Sheet - Alternative Presentation FormatsMajor Uses and Limitations of Balance SheetCurrent AssetsNon-current AssetsCurrent LiabilitiesNon-current LiabilitiesMeasurement BasesShareholders' EquityCommon-size Balance SheetLiquidity RatiosSolvency Ratios - Understanding the Cash Flow Statement13 Lessons 67 Min
This section of the financial reporting course is dedicated to the specifics of the Cash Flow Statement. You will learn how to prepare a Cash Flow Statement using the direct and indirect methods and how to convert from one to the other. We also show you what a Common-Size Cash Flow Statement looks like and how to calculate the Free Cash Flow to the Firm (FCFF), Free Cash Flow to Equity (FCFE), and other cash flow ratios.
Introduction to Cash Flow StatementsMajor Sections in the Cash Flow StatementHow to Treat Non-cash ItemsIFRS vs. US GAAP - Cash FlowDirect vs. Indirect MethodHow is the Cash Flow Statement Linked to Other Financial StatementsConstructing an Indirect Cash Flow StatementConstructing a Direct Cash Flow StatementConverting from the Indirect to Direct MethodCash Flows from Investing and Financing activitiesCommon-size Cash Flow StatementFree Cash Flow IndicatorsCash Flow Ratios - The Importance of Financial Reporting Quality9 Lessons 43 Min
Knowing the main elements in the core financial statements gives you a broader perspective of financial reporting. In this section of The Fundamentals of Financial Reporting course, we define the “quality” of financial reporting and introduce a spectrum for assessing it. Some of the other topics we cover in this section include Conservative vs. Aggressive accounting practices, the Fraud Triangle, and the typical accounting warning signs.
What is Financial Reporting QualitySpectrum for Assessing Financial Reporting QualityConservative vs. Aggressive AccountingMotivations for Low-quality Financial ReportingThe Fraud TriangleMechanisms that Discipline Financial Reporting QualityPresentation ChoicesManipulations of Financial ResultsAccounting Warning Signs
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“Being able to understand the financial statements of a company means that you can read the story of its business operations.”
Antoniya Baltova
Chief Financial Officer at 365
Fundamentals of Financial Reporting
with Antoniya Baltova