Training Course on Advanced Financial Statement Analysis for Financial Analysts

Course Outline

Module 1: Advanced Accounting Concepts and Their Impact on Analysis

ü  Revenue Recognition under IFRS 15 / ASC 606: Complexities and Disclosure

ü  Lease Accounting under IFRS 16 / ASC 842: Impact on Financial Ratios

ü  Stock-Based Compensation: Measurement and Disclosure

ü  Post-Retirement Benefits and Contingencies

ü  Practical Session: Analyzing the impact of new lease accounting standards on a company's balance sheet and income statement.

Module 2: Quality of Earnings and Revenue Recognition Deep Dive

ü  Assessing Earnings Quality: Red Flags and Adjustments

ü  Channel Stuffing, Bill-and-Hold Arrangements, and Other Revenue Manipulations

ü  Expense Recognition Timing and Capitalization vs. Expensing Issues

ü  Non-recurring Items and Discontinued Operations

ü  Practical Session: Identifying warning signs of aggressive revenue recognition practices in a company's financial reports.

Module 3: Advanced Cash Flow Analysis and Free Cash Flow Calculation

ü  Reconciling Net Income to Cash Flow: Direct vs. Indirect Method

ü  Distinguishing Operating, Investing, and Financing Cash Flows

ü  Calculating and Interpreting Different Measures of Free Cash Flow (FCFF, FCFE)

ü  Quality of Cash Flow Analysis

ü  Practical Session: Calculating Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) for a real company.

Module 4: Analyzing Off-Balance Sheet Financing and Complex Liabilities

ü  Operating vs. Finance Lease Classification and its Analytical Implications

ü  Special Purpose Entities (SPEs) and Consolidation Issues

ü  Contingent Liabilities and Commitments

ü  Pension and Post-Employment Benefit Liabilities

ü  Practical Session: Adjusting a company's financial statements to reflect the true economic impact of off-balance sheet arrangements.

Module 5: Detecting Financial Shenanigans and Aggressive Accounting

ü  Common Techniques of Earnings Manipulation (e.g., boosting income, hiding expenses)

ü  Forensic Analytical Tools: Beneish M-Score, Altman Z-Score

ü  Understanding the Motivations and Rationalizations for Financial Fraud

ü  Using Disclosures and Footnotes to Uncover Red Flags

ü  Practical Session: Applying analytical ratios and qualitative factors to identify potential "shenanigans" in a case study company.

Module 6: Advanced Equity Valuation Using Multiples and Ratios

ü  P/E, P/B, EV/EBITDA, and Other Multiples: Strengths and Weaknesses

ü  Adjusting Multiples for Differences in Accounting, Growth, and Risk

ü  Peer Group Selection and Benchmarking

ü  Cyclicality and Normalizing Earnings for Valuation

ü  Practical Session: Performing a detailed comparable company analysis (Comps) for a target company, adjusting for key differences.

Module 7: Credit Analysis and Debt Capacity Assessment

ü  Assessing Liquidity, Solvency, and Debt Service Capabilities

ü  Key Credit Ratios (e.g., Debt/EBITDA, Interest Coverage Ratio)

ü  Understanding Debt Covenants and Their Implications

ü  Cash Flow-Based Credit Analysis

ü  Practical Session: Analyzing a company's financial statements from a creditor's perspective to assess its creditworthiness.

Module 8: Segment and International Financial Statement Analysis

ü  Analyzing Performance of Business Segments

ü  Impact of Foreign Currency Translation on Financial Statements

ü  Differences in Accounting Standards (IFRS vs. US GAAP) and Reconciliation

ü  Cross-Border Financial Statement Analysis Challenges

ü  Practical Session: Comparing the financial performance of different operating segments of a multinational company.

Module 9: Forensic Financial Analysis: Uncovering Red Flags

ü  The Fraud Triangle and Financial Statement Fraud Schemes

ü  Using Data Analytics to Identify Anomalies and Patterns

ü  Non-Financial Cues and Qualitative Red Flags

ü  Case Studies of Major Financial Frauds and Their Detection

ü  Practical Session: Analyzing a provided dataset for unusual patterns or transactions that could indicate fraud.

Module 10: Integrating ESG Factors into Financial Analysis

ü  Understanding ESG Data and Reporting Frameworks (e.g., SASB, TCFD)

ü  Impact of Environmental Risks and Opportunities on Financial Performance

ü  Assessing Social Capital and Human Capital Management

ü  Evaluating Governance Structures and Their Influence on Value

ü  Practical Session: Discussing how specific ESG factors can be incorporated into a traditional financial valuation model.

About Our Trainers

Our trainers are highly experienced financial analysts and investment professionals with a deep understanding of advanced financial statement analysis. They have held senior roles in investment banking, equity research, asset management, and corporate finance, and many hold the Chartered Financial Analyst (CFA) designation. Their expertise comes from years of performing in-depth financial analysis on complex companies across various industries. They are skilled at translating sophisticated analytical concepts into practical, actionable insights and fostering a dynamic learning environment.

Quality Statement

We are committed to delivering high-quality training programs that provide tangible value to our participants and their organizations. Our courses are meticulously designed, continuously updated with the latest accounting standards, analytical techniques, and market trends, and delivered by expert trainers. We strive to create an interactive and supportive learning environment that fosters knowledge acquisition, skill development, and professional growth.

Admission Criteria

ü  Participants should be reasonably proficient in English. 

ü  Applicants must live up to Phoenix Center for Policy, Research and Training admission criteria.

Terms and Conditions

1. Discounts: Organizations sponsoring Four Participants will have the 5th attend Free
2. What is catered for by the Course Fees: Fees cater for all requirements for the training – Learning materials, Lunches, Teas, Snacks and Certification. All participants will additionally cater for their travel and accommodation expenses, visa application, insurance, and other personal expenses.
3. Certificate Awarded: Participants are awarded Certificates of Participation at the end of the training.
4. The program content shown here is for guidance purposes only. Our continuous course improvement process may lead to changes in topics and course structure.
5. Approval of Course: Our Programs are NITA Approved. Participating organizations can therefore claim reimbursement on fees paid in accordance with NITA Rules.

Booking for Training

Simply send an email to the Training Officer on training@phoenixtrainingcenter.com and we will send you a registration form. We advise you to book early to avoid missing a seat to this training.

Or call us on +254720272325 / +254737296202

Payment Options

We provide 3 payment options, choose one for your convenience, and kindly make payments at least 5 days before the Training start date to reserve your seat:

1. Groups of 5 People and Above – Cheque Payments to: Phoenix Center for Policy, Research and Training Limited should be paid in advance, 5 days to the training.
2. Invoice: We can send a bill directly to you or your company.
3. Deposit directly into Bank Account (Account details provided upon request)

Cancellation Policy

1. Payment for all courses includes a registration fee, which is non-refundable, and equals 15% of the total sum of the course fee.
2. Participants may cancel attendance 14 days or more prior to the training commencement date.
3. No refunds will be made 14 days or less before the training commencement date. However, participants who are unable to attend may opt to attend a similar training course at a later date or send a substitute participant provided the participation criteria have been met.

Tailor Made Courses

This training course can also be customized for your institution upon request for a minimum of 5 participants. You can have it conducted at our Training Centre or at a convenient location.

For further inquiries, please contact us on Tel: +254720272325 / +254737296202 or Email training@phoenixtrainingcenter.com

Accommodation and Airport Transfer

Accommodation and Airport Transfer is arranged upon request and at extra cost. For reservations contact the Training Officer on Email: training@phoenixtrainingcenter.com or on Tel: +254720272325 / +254737296202