Practically every lawyer at some point, in some part of the practice, needs to examine a financial statement and be able to discuss it intelligently with a client, opposing counsel, expert witness or law firm partners. This basic course is designed to give attorneys general principles of accounting, including the accountant's vocabulary, generally accepted accounting principles, and basics of financial statement analysis, including key ratios, types of financial statements, and the importance of footnotes.
Topics to be discussed include:
- Laying the foundation for effective analysis
- Ratios that matter and what they really mean
- Credit analysis - the banker's view
- Current issues and trends in taxation
8:30 a.m. - 8:45 a.m.
I. Review Of Outcomes For Seminar
A. Introduction Of Speakers
B. Understand Financial Information To Effectively Evaluate Business Issues
C. Foundational Accounting To Set The Stage For Effective Analysis
8:45 a.m. - 9:00 a.m.
II. Review Session Administration
9:00 a.m. - 9:50 a.m.
III. Overview Laying The Foundation For Effective Analysis
A. Financial Statement Construction And Elements
1. Income Statement
2. Balance Sheet
3. Statement Of Cash Flows
B. Relationship Between Balance Sheet, Income Statement, And Cash Flow Statements
1. Show How They Are Interrelated
2. Show How Changes In One Affects The Others
9:50 a.m. - 10:00 a.m.
10:00 a.m. - 12:00 p.m.
IV. Laying The Foundation For Effective Analysis Ratios That Matter, And What They
A. Income Statement Analysis And Ratios
B. Balance Sheet Analysis And Ratios
C. Integrating The Income Statement And Balance Sheet
D. Variance Analysis Actual versus Budget
E. Benchmark Analysis
F. Trend Analysis
12:00 p.m. - 1:00 p.m.
Lunch (On Your Own)
1:00 p.m. - 2:00 p.m.
V. Credit Analysis The Banker's View
A. Historical Cash Flow, Pro-Forma Analysis
B. Sources Of Repayment
1. Special Considerations The Matching Principle
2. Operating Leverage A Simple Explanation
C. Deal Evaluation And General Underwriting Criteria
D. Covenants Tying Them Into The Underlying Financials, And What They Regulate Within The Company
2:00 p.m. - 2:10 p.m.
2:10 p.m. - 4:00 p.m.
VI. Current Issues And Trends In Taxation
B. Business Entities
4:00 p.m. - 4:30 p.m.
VII. Summary, Questions And Answers