Understanding Financial Statements & Annual Reports

Why You Should Attend This Course

Understanding published financial reports can be a daunting task. We often find ourselves deterred from our attempts to delve into the myriad of information and unfamiliar terms in the financial statements and their overwhelming details that are separately noted in the annual reports

This two-day course is put together based on the latest published financial reports of a SGX-listed company to enhance your confidence and make your experience more rewarding when reading financial statements and navigating annual reports..

Learning Outcomes

• Acquire sufficient knowledge on reading and understanding published financial reports

• Appreciate the usefulness of complimentary notes referenced in the financial statements

• Explain the relationships among the financial statements

• Understand the concepts and principles underlying the preparation of financial statements

• Apply financial ratios to analyse the financial performance of the SGX-listed company

• Understand the meaning, determination and use of free cash flow

• Know the major issues to look out for in the Directors' Report

• Detect tell-tale signs of potential risks insinuated by the Independent Auditors' Report

Course Outline

1) Corporate Annual Report

• Key Components of Corporate Annual Report

• Consolidated Financial Statements

2) Balance Sheet

• Accounting Equation

• Dual Aspect Principle

• Assets

• Liabilities

• Equity

3) Income Statement

• Matching Principle

• Revenue

• Expenses

• Accrual vs Cash Accounting

• Double-Entry and the T-Account

4) Statement of Changes in Equity

• Linking Balance Sheet and Income Statement

• Share Dividends and Share Capital

• Share Options and Share Capital

• FX Translation Differences and Currency Translation Reserve

• Statement of Comprehensive Income

5) How Transactions Flow to the Financial Statements

• Illustration

• Exercise

• End-of-Period Adjustments

6) Analysis Using Balance Sheet and Income Statement

• Profitability Ratios

• Efficiency Ratios

• Solvency Ratios

7) Analysis Using Cash Flow Statement

• Cash Flow Statement

• Sources and Applications of Cash

• Liquidity Ratios

• Free Cash Flow

8) Navigating Annual Report and Detecting Risk

• Relevance of Directors' Report

• Interpreting Independent Auditors' Report

• Key Trends to Watch

• Capital Commitments

Target Audience:

This two-day course will benefit managers, executives and mid-career professionals who may wish or need to refresh or enhance their understanding and analysis of published financial statements and annual reports

Trainer Profile:

Chow Chan Kwan

Mr Chow has more than 15 years of industrial experience as General Manager of various manufacturing and retail subsidiaries of a multinational company in Singapore and China.

He has delivered accounting and finance lectures to students pursuing the Certificate in Management (CIM) at the Singapore Institute of Management (SIM), and conducted in-house financial training during the initial stage of his career as a statistics and research officer at a Malaysian bank.

Chow holds a Master of Business Administration (MBA) degree in Accounting and Finance from Ohio University in the USA. While pursuing his MBA degree, he delivered accounting lectures to freshmen students, a provision under the university's Graduate Assistant Scholarship Scheme.

Mr Chow is currently a professional trainer and consultant, specialising in Accounting, Finance, Strategic and Supply Chain Management

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