Series 2: Interpreting Quality of Financial Reports and Accounts
Course Number: RMA2
Course Code: ABA 171B
How to interpret risks stemming from the quality of financial reports and underlying financial accounts.
LDP 2.1 – Interpreting Reliability and Comparability of Financial Statements
LDP 2.2 – Interpreting Quality and Consistency of Balance Sheet and Income Statements
– After completing this course, students will be able to:
– Analyze the reliability of accountant prepared financial statements.
– Compare and contrast the differences among cash, modified-cash, and tax-basis accounting methods.
– Interpret repayment risks stemming from identified financial reporting issues.
– Assess the implication of estimates permitted by GAAP.
– Identify the characteristics of a company’s assets, liabilities, and net worth accounts.
– Determine the integrity of a company’s reported financial condition based on a review of both on- and off-balance sheet accounts.
– Identify the characteristics of a company’s income and expense accounts.
– Analyze the quality of a company’s earnings, the consistency and authenticity of its income and expense accounts, and the sustainability of revenues.
The Commercial Real Estate Lending Decision Process and the courses in the curriculum are products of The Risk Management Association.
Audience: Loan trainees, credit analysts, and anyone with commercial lending authority