Accounting for Financial Services

Description/Objective:
The objective of this course is to equip candidates with fundamental accounting principles and concepts, tools and techniques for analysis, and application along with having knowledge about international standards for financial business concerns. The course also provides the understanding and interpretation of financial statements to assist in effective decision-making. Learning Objectives/Outcome After the successful completion of this course, participants will have: Knowledge and understanding of: o Types of accounts and accounting cycle o Accounting treatment and accounting classifications o International accounting principles and financial reporting standards o Types of business and business activities o Preparation and presentation of financial information Financial statements and its analysis Have capacity to process data, analyze and interpret the financial information and risks Course Topics 1. The Basics of Business Accounting Accounting definition and core concepts Business transactions and its classifications Accounting and its functional objectives The business entity concept and how it differs from legal entity concept Business activities: i. Operating ii. Investing iii. Financing activities The basic accounting equation Introduction to Generally Accepted Accounting Principles (GAAP) and International Accounting Standards (IFRS) Introduction to financial statements i. Balance Sheet ii. Income Statement iii. Cash Flow Statement iv. Comprehensive Income statement v. Change in equity statement 1

Elements of financial statements and their classifications How financial statements for banks are different than those of companies Financial statements and business decisions Tangible and Intangible assets Accounting for consolidation

2. Accounting for Financial Institutions Banking assets and liabilities Banking revenue and expenditure items Contingent and off balance sheet items Capital requirements for commercial banks 3. Accounting Data Processing Trial Balance, format and uses The need for adjusting accounts Time period concepts and revenue recognition principles Major types of adjusting entries i. Accruals ii. Prepayments iii. Advance receipts and payments Major types of adjusting entries i. Merchandise inventories ii. Bad debts iii. Depreciation and amortization Adjusted trial balance Preparing financial statements from adjusted trial balance Introduction to worksheet Closing process through expense and revenue summary account Post closing trial balance i. Contents ii. Uses 4. Receivables Creation of accounts receivable Collection of receivable Valuation of account Estimation of bad debts Aging of accounts receivable Writing off and recoveries 2

Notes receivables Presentation on financial statements

5. Provisioning process Importance 6. Accounting for Fixed Assets Acquisition of fixed assets Depreciation methods and their effects on financial statements Intangibles and natural resources simple accounting appreciation Typical issues related to tangible and intangible fixed assets Revaluations in fixed assets 7. Understanding Financial Statements Profit and loss statement Balance sheet Cash flow statement Statement of equity Critical elements to ascertain health of the enterprises Understanding notes attached to financial statements 8. Investments Accounting classifications i. Held for Trading ii. Available for Sale iii. Held Till Maturity Standards relating to accounting classifications Balance sheet presentation and treatment Income statement presentation and treatment 9. Analysis of Financial Statement Horizontal and vertical analysis Financial ratios including cash flow ratios (Bank financial statement analysis) Interpretations and applications of financial ratios in banking decisions