Finance Fundamentals 2 - Introduction to Analysis of Accounts

Overview

Often those working closely with finance professionals feel exposed and not confident in discussing matters of accounting. Building on the skills developed in Finance Fundamentals 1, this course introduces analysis and interpretation of a set of accounts. This will include using a number of basic ratios to analyse and interpret sets of accounts. It will also look at the potential pitfalls in using incomparable information and the implications of accounts being prepared using different accounting policies.

The course is highly practical with several case studies and exercises to bring the theory to life.

Who is this for?

This course will benefit all lawyers - whatever their field and number of years PQE - who may have to analyse and interpret accounting information whether in relation to client activity or who want to feel more confident in analysing their own practice’s financial performance and risk. It will also explore some of the more judgemental areas within a set of accounts and alert delegates to common pitfalls.

This course assumes that you are already comfortable with the key concepts covered in Finance Fundamentals 1 and accordingly we highly recommended that you go on that course before attending this course.

What will you learn?

By the end of this course you will be able to:

• Understand how to analyse and interpret a set of accounts
• Appreciate the subjective nature of a set of accounts and be able to explore some of the judgemental areas
• Use key ratios to help with analysis
• Understand the principles of covenant strength
• Recognise indicators of company distress
• Understand some of the potential limitations of financial analysis
• Appreciate that there are different accounting regulations that affect companies depending on their size and whether they are listed or not
  
  

PSC Elective

This course may be taken as a PSC elective, although it may also be attended by non-trainees.

SRA competencies