Financial Accounting & Reporting - Basics To Advance

Become a master in financial reporting from an Industry Expert to pursue the most lucrative Financial Analyst Career

What you'll learn

Explain how the balance sheet, income statement, and statement of cash flows are used, what they measure, and why we need three statements.

Explain what is the balance sheet equation and why the balance sheet equation is the foundational model for accrual accounting/double entry accounting

Explain how the statement of cash flows and income statement link into the balance sheet

Locate a real company’s annual report at their website and locate their financial statements within the annual report

Explain the give and take of a transaction and how to record both sides of the transaction separately with the six stakeholders

Explain why you can’t measure profit with cash and why you need to use accrual accounting (double-entry accounting), not cash accounting

Explain the basis for bookkeeping and basic accounting without learning bookkeeping

Explain how the format of the operating activities section differs from the other two activities (investing and financing)

Differentiate between income and cash flow

Define what are assets, liabilities, and equity and how assets, liabilities, and equity relate

Explain who are the six most important stakeholders of a corporation (employees, customers, government, vendors, lenders, investors)

Explain which side of the give and take appears on the income statement and on the statement of cash flows

Illustrate how accrual accounting can both record cash and profits using a spreadsheet

Explain what each line item of the balance sheet means and distinguish between current and noncurrent assets, liabilities, and shareholders’ equity

Explain each important line item for the three sections of the statement of cash flows: operating activities, investing activities, and financing activities

Requirements

There are no prerequisites for the course. You do not need to know anything about accounting

Description

This course provides a comprehensive understanding of financial accounting principles and reporting standards. Students will learn to analyze and interpret financial information, prepare financial statements, and communicate the financial position of an organization to external stakeholders.Key Topics Covered:Introduction to Financial Accounting:Overview of accounting principles and conceptsThe accounting equation and double-entry systemAccounting cycles and the financial reporting processFinancial Statements:Preparation and interpretation of the income statementBalance sheet analysis and interpretationStatement of cash flows and its significanceRevenue Recognition and Expense Measurement:Principles of revenue recognitionMeasurement and recognition of expensesAsset Valuation:Valuation and accounting for current and non-current assetsDepreciation and amortization methodsLiabilities and Equity:Accounting for various types of liabilitiesEquity transactions and stockholder's equityFinancial Statement Analysis:Ratio analysis for performance evaluationInterpretation of financial statements for decision-makingTeaching Methodology: The course may include a combination of lectures, case studies, practical exercises, and group projects. Students may also have the opportunity to use accounting software to gain hands-on experience in financial statement preparation.Assessment: Assessment methods may include examinations, quizzes, assignments, and a final project. The final project may involve the analysis and preparation of financial statements for a real or hypothetical company.

Overview

Section 1: 1. Introduction of Financial Reporting

Lecture 1 Financial Reporting _ Stakeholders

Lecture 2 Component of Financial Reporting

Lecture 3 Importance of Financial Reporting

Lecture 4 Generally Accepted Accounting Principle

Section 2: Profit & loss account

Lecture 5 Income Statement Format

Lecture 6 Income Statement - Poona Bakery Example

Lecture 7 Income Statement From Annual Report - Revenue

Lecture 8 Calculation of Cost of Material Consumed, Purchase and Changes in Inventory

Lecture 9 Income Statement - Expenses and Exceptional Items

Section 3: Balance Sheet

Lecture 10 Introduction of Balance Sheet

Lecture 11 Balance Sheet Format

Lecture 12 Non Current Assets

Lecture 13 Current Assets

Lecture 14 Share Capital

Lecture 15 Difference between Current Liability and Non Current Liability

Lecture 16 Non Current Liability and Current Liability

Lecture 17 Annual Report of Dabur - Assets

Lecture 18 Annual Report of Dabur Share Capital

Lecture 19 Annual Report of Dabur Non Current and Current Liability

Section 4: Cash Flow Statement

Lecture 20 Introduction of Cash Flow Statement

Lecture 21 Operating Activity

Lecture 22 Operating Activity 2

Lecture 23 Financing Activity

Lecture 24 Investing Activity

Lecture 25 Discussion about all 3 activities - Operating, Investing and Financing Activity

Lecture 26 Cash Flow Statement - Case 1

Lecture 27 Cash Flow Statement - Case 2

Section 5: Accounting Concepts and Principles

Lecture 28 Introduction of Accounting Concepts

Lecture 29 Entity Concept

Lecture 30 Money Measurement Concept

Lecture 31 Periodicity Concept

Lecture 32 Dual Aspect Concept

Lecture 33 Accrual Concept

Lecture 34 Matching Concept

Lecture 35 Going Concern Concept

Lecture 36 Conservatism Concept

Lecture 37 Consistency Concept

Lecture 38 Materiality Concept

Lecture 39 Substance Over Form

Section 6: Financial Ratios

Lecture 40 Introduction of Financial Statement Analysis

Lecture 41 Introduction of Ratios - Adani vs. Hinderberg

Lecture 42 Liquidity Ratio - Current Ratio & Case Study 1

Lecture 43 Quick Ratio and Practical Case

Lecture 44 Cash ratio and Practical Case

Lecture 45 Case study for Liquidity Ratios

Lecture 46 Solvency Ratios - Equity Ratio and Multiple cases

Lecture 47 Debt to Equity Ratio

Lecture 48 Case study on Solvency Ratio

Lecture 49 Revision of previous lecture

Lecture 50 Discussion of Shark Tank Video

Lecture 51 Debt to Asset Ratio and Capital Gearing Ratio

Lecture 52 Introduction of Coverage Ratios

Lecture 53 Interest Coverage Ratio

Lecture 54 Debt Service Coverage Ratio

Lecture 55 Preference Dividend Coverage Ratio

Lecture 56 Profitability Ratios Related to Sales - Net, Gross and Operating Profit Ratio

Lecture 57 Case Study on Profitability Ratio Related to Sales

Lecture 58 Return on Investment, Asset, Capital Employed and Equity

Lecture 59 Case Study 1 on Return on Asset and Capital Employed

Lecture 60 Case Study 1 on Return on Asset, Equity and Capital Employed

Lecture 61 Earning Per Share and Dividend Per Share - Annual Report

Lecture 62 Practical case on DPS and Dividend Yield.

Lecture 63 PE Ratio, Dividend Yield and Earning Yield

Lecture 64 PB Ratio - Price to Book Value Ratio

Lecture 65 Introduction of Turnover Ratios

Lecture 66 Total Asset, Fixed Asset, Capital Employed and Current Asset Turnover Ratio

Lecture 67 Practical Case on Turnover Ratios

Lecture 68 Operating Cycle - Amazon and Apple Case Study

Lecture 69 Inventory Turnover Ratio

Lecture 70 Receivable Turnover Ratio

Lecture 71 Payable Turnover Ratio

Lecture 72 L&T Case Study - Understanding of Turnover Ratios

Business students who want a big picture view of accounting by understanding the end product, financial statements, not how the end product is created through bookkeeping,Managers who want to read and understand financial statements without learning bookkeeping,Investors who want to read and understand annual reports,Non-accounting/finance employees in companies who want to determine how their company is doing without taking an accounting course,Accounting/finance majors should not take the course