Workshop on Financial Statements: Preparation & Analysis for Hospital Accountants

Program overview:              

This course brings together the key elements of financial statement preparing and analysis to help participants improve their financial analysis skills, enable them to ask the right questions, and see the real risks facing businesses and investors. In addition, this course helps participants feel more confident in their ability to comment on business activities and performance and analyze financial health for management of hospitals. These skills and the required technical knowledge will be put into practice throughout the course using interactive examples and case studies, putting theory and technique into context.

For whom:

This course is designed for Chief medical directors, Chief financial officers, Head of Administration, Hospital Accountants, and Non-financial professional managers who are required to read, interpret, and contribute to the hospital business financial reports and projections.

Learning Objectives:

At the end of the program, participants will be able to;

• list the basics of financial statements and determine the best structure and presentation practices;
• recognize important periodical adjustments and their effect on hospital financial statements;
• explain how to properly account for assets, liabilities, equity, revenues and expenses during recurrent and non-recurrent transactions;
• prepare financial statements starting from raw trial balance and ending with full comprehensive disclosures;
• apply the framework of financial statements analysis;
• demonstrate skills at the foundations of ratio and financial analysis;
• carry out company and industry analysis;
• implement the process of company evaluation and analysis; and
• analyze the financial position and performance of a company over a period of time and draw conclusions regarding its sustainability.

Course Outline:

Day 1: Financial statements and business decisions

• The financial accounting cycle
• Four or five key financial statements
• Management uses of financial statements
• Relationship among financial statements
• Essential notes and disclosures to the financial statements
• Basis of preparation
  • Accounting policies, Related parties’ transactions
  • Contingencies, Risk managements, Subsequent event

Day 2: Financial Statement Analysis

• Role of Financial Reporting and Analysis
• The Core Financial Statements and the Importance of the Annual Report
• The Important Role of Notes and Supplementary Information
• Objective and Types of Audits of Financial Statements
• Financial Statement Analysis Framework
• The Accounting Cycle, Financial Reporting Mechanics
• Relationship, Elements and Classification of Financial Statements

Day 3: Financial reporting for major accounts and transactions

• Measuring and reporting accounts receivable
• Estimating and accounting for bad debts
• Costs to be capitalized in inventory value
• Inventory cost flow assumptions, Presenting inventory at lower of cost or net realizable value
• Classifying, measuring and recording long lived assets
• Repairs, maintenance, and additions to long lived assets
• Depreciation and amortization, Disposal of long-lived assets
• Accounting and reporting for intangibles, Accounting for investments
• Passive investment, exercising significant influence or control
• Types of equity and debt investments, Definitions and classification of liability accounts
• Types of ownership and stock, Accounting for capital and dividends
• Wrapping it up: linking notes to face of financial statements
• Financial Reporting Standards
  • Importance of Reporting Standards in Security Analysis and Valuation
  • The Standards Setting Bodies
  • International Financial Reporting Standards versus Generally Accepted Accounting Principles

Day 4: Understanding Financial Statements

• Income Statement Components
• Revenue and Expense Recognition
• Balance Sheet Components:
• Measurement and Classification
• Cash Flow Statement:
• Operating, Investing, and Financing Activities
• Direct versus Indirect Methods in Cash Flow Preparation

Day 5: Financial Analysis Techniques   

• Ratio Analysis:
• Liquidity: Current, Quick, and Cash Ratios
• Asset Management and Activity Ratios
• Solvency: Debt, Equity, and

Times Interest Earned Ratios

• Profitability: Profit Margin, Gross Margin,

Return on Assets, Return on Equity

• Market and Valuation: Price-Earnings and

Earnings Per Share Ratios

• Vertical Analysis and Strategy:

Balance Sheet and Income Statement Approaches

• Trend Analysis and Growth
• DuPont Analysis:

The Three-Step and Five-Step Models

• Time-Series and Cross-Sectional Analysis
• Limitation of Ratio Analysis
• Financial Statement Analysis:

Applications and Presentations

• Evaluating a Company’s Past Performance

Training Methodology

Lectures, discussions, exercises, and case studies will be used to reinforce these teaching/learning methods.