Introduction
This workshop is designed for non-finance personnel to get an insight into the nifty and gritty of financial terminology and financial number at the basic level. Participants will learn the features of financial statement which has become the primary source of information for business decision.
How you will benefit
This program aim to help participants to :
• Understand the definition and terms of ‘depreciation’, ’profit’, ’income/sales’ ,’variable cost’ , ‘fixed cost’, ‘losses’, ‘share capital’ ‘loan’,’ cash flow’ ‘operating expenses’, ‘capital expenditure’
• Know the differences between capital verses revenue expenditure
• Identify what are financial statement and their purpose
• Know the differences between accrual accounting v cash accounting
• understand what is matching and accrual concept
• Examine what is fixed asset, current asset, non-current liabilities, current liabilities
• Understand the component in income statement e.g. revenue, cost of sales, Gross profit , earnings before interest and tax (EBIT) , operating profit , interest expenses and interest income profit before tax and profit after tax
Who should attend :
Managers or Executives who wish to understand basic financial terminology and understand basic financial report to enhance their understanding in business and operation.
Course outline
Module 1: Learning the Financial Jargon
• definition and terms (receipt, payment, income, expenses, fixed asset, current asset ,work-in-progress current liabilities , working capital)
• Capital v revenue expenditure
• Types of business ownership
• Accounting equation
Module 2 : Source Document in Business Transaction
• Invoice
• Deliver note
• service acceptance form
• debit note
• credit note
• statement of account
• Debtor/Account receivable
• Creditor/Account payable
• Trade discount
• Cash discount
Module 3 :Component of Income Statement
• Concept of accrual
• Revenue
• what constitute cost of sale
• The difference between mark-up and margin
• Gross profit
• Operating profit (EBIT)
• Finance charges
• other operating income
• Investment income
• Tax expenses
• Profit after tax
Module 4: Component in Statement of Financial Position (Balance Sheet )
• Classes of share capital i.e. ordinary share, preference share
• Retained earnings, share premium, revaluation reserve/ surplus
• Distribution of profit
• Interim dividend and final dividend
• Loan stock and bond
• Component of shareholder fund /equity
• Component of capital employed
• Fixed asset and depreciation
Training Methodology
Case Study & Kahoot Quiz