Preparing Financial Statements and the Annual Report

Course overview

Course outline

1. 1Day 1: The accounting cycle

   • Understanding the accounting cycle
   • Supporting documents
   • Analyzing transactions and recording in the system
   • Preparing ledgers and General Ledgers (GL)
   • Converting the GL to Trial Balance (TB)
   • Types of adjusting entries
   • The Adjusted Trial Balance (ATB)
   • Mapping ATB to the financial statements
   • Preparing financial statements
   • Closing the books
   • Preparing the Post-Closing Trial Balance (PCTB)
2. 2Day 2: Chart of accounts and design techniques

   • Designing the chart of accounts
   • Maintenance of the chart of accounts
   • Analyzing the chart of accounts
   • Reconciliations and important issues
   • Creating the trial balance
3. 3Day 3: Accounting adjusting entries & Working with accruals

   • Accounting adjusting entries
   • Understanding deferrals
   • Deferred revenues and entries
   • Deferred expenses entries
   • Working with accruals
   • Adjusting for accrued revenues
   • Accrued expenses entries
   • Other adjustments and corrections
   • Preparing the adjusted trial balance
4. 4Day 4: Preparing financial statements and notes

   • Mapping the adjusted trial balance to the financial statements
   • Preparing the income statements
   • Preparing the balance sheets
   • Preparing the cash flow statements
   • Preparing the owners equity statements
   • Objectives of external audit
   • External audit versus internal audit
   • Reading and interpreting the audit opinion
   • Management Discussion and Analysis (MD&A)
5. 5Day 5: Notes to the financial statements

   • Understanding the requirements for the notes
   • Organization and activities of the notes
   • Basis for preparation
   • Summary of significant accounting policies
   • Accounting convention
   • Use of estimates
   • Completing the financial statements and the notes