Series 2: Interpreting Quality of Financial Reports and Accounts
Course Number: ABA
Course Code: ABA
How to interpret risks stemming from the quality of financial reports and underlying financial accounts.
LDP 2.1 – Financial Statements Overview
LDP 2.2 – Balance Sheet and Income Statement Overview
Produced by the Risk Management Association
What You’ll Learn
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.
Audience: Loan trainees, credit analysts, and anyone with commercial lending authority.