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.
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.
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!
In The Fundamentals Financial Reporting course, we examine various aspects of financial reporting and analysis, including:
In this introductory lesson, you will meet your instructor and get acquainted with the course structure and topics covered.
What does the course cover FreeIn 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 Free The Main Financial Statements Free Supplementary Sources of Financial Information Auditor's Reports Financial Statement Analysis The Financial Statement Analysis Framework The Importance of Financial Reporting Standards Standard-setting Bodies and Regulators The Conceptual Framework for Financial Reporting (Part 1) The Conceptual Framework for Financial Reporting (Part 2) Basics of Accounting General Requirements of Financial Statements Alternative Financial Reporting systemsThis 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 Statement Alternative Presentation Formats Revenue Recognition - Principles Revenue Recognition - Practical Applications Expense Recognition - Principles Expense recognition - Practical Applications Financial Reporting for Non-recurring Items Operating and Non- operating Components of the Income Statement Earnings per Share (EPS) Dilutive vs. Antidilutive Securities Common-size Income Statement The Income Statement - Ratio Analysis What is Other Comprehensive IncomeHere, 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 Sheet The Balance Sheet - Alternative Presentation Formats Major Uses and Limitations of Balance Sheet Current Assets Non-current Assets Current Liabilities Non-current Liabilities Measurement Bases Shareholders' Equity Common-size Balance Sheet Liquidity Ratios Solvency RatiosThis 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 Statements Major Sections in the Cash Flow Statement How to Treat Non-cash Items IFRS vs. US GAAP - Cash Flow Direct vs. Indirect Method How is the Cash Flow Statement Linked to Other Financial Statements Constructing an Indirect Cash Flow Statement Constructing a Direct Cash Flow Statement Converting from the Indirect to Direct Method Cash Flows from Investing and Financing activities Common-size Cash Flow Statement Free Cash Flow Indicators Cash Flow RatiosKnowing 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 Quality Spectrum for Assessing Financial Reporting Quality Conservative vs. Aggressive Accounting Motivations for Low-quality Financial Reporting The Fraud Triangle Mechanisms that Discipline Financial Reporting Quality Presentation Choices Manipulations of Financial Results Accounting Warning Signswith Antoniya Baltova