Banking professionals responsible for evaluating management success in these areas can turn to this curriculum for a set of crucial financial statement analysis techniques, culminating in business valuation principles. Learn how to compare companies financially, understand cash flow, and grasp basic profitability and risk analysis concepts.

• Identify the main financial facts and figures, in the income statements, balance sheet and statement of cash flow
• Compute key financial ratios out of the financial statements and explain their implication with reference to credit risks
• Identify and explain the types of credit risks in banking – operations and credit risks
• Identify and explain the causes of the financial results and their implications
• Recognize the major drivers of business and financial policies of a company and its business
• Understand the financial statements of AmBank Berhad
• Conduct computation of financial indicators and analysing them to support business judgement
• Identify creative accounting and red flags in financial statement, Business Failurs
• Financial reports of findings of financial analysis
• Post assessment

Module 1: Introduction to Financial Statements

• Balance Sheet – Financial Positions

– How to Read the Financial Statements

– Auditors & Director’s Reports, Notes to Accounts

– Principals Assets and Liabilities Groupings

– Cash & Equivalents

– Working Capitals

– Asset Conversion Cycles

– Business Cycles – Operating Cycles

– Goodwill & Intangibles

– Extraordinary Items

– Capital Reserves

– Contingent Liabilities – Post Balance Sheet Events

– Off Balance Sheet Items

– Net Tangible Assets

• Income Statement – Financial Performance

– Principles of Income Statement Components

– Operating Revenue & Non-Operating Revenue

– One time gain, Operating Expense, COGS, Net Income

– Normalization Adjustments

– Fixed Cost and Variable Costs Items

– Depreciation & Amortization

– EBIT & EAT
– Earnings per share

– Price Earnings Ratio (PE ratio)

– Share Capitalisation (Market Value)

• Cash Flow Statement – Sources & Application of Cash

– Key Components of the Statement of Cash Flows

– Investing Activities, Funding Activities, Operating Activities

– Sources & Application of Funds

• Notes to Financial Statements

– Accounting Policies

– Asset Valuation – Valuation Reserves

– Capitalisation of Expenses

– Material Subsequent Events

Module 2: Business Profitability

– Defining Profitability

– Differentiation between Profit, Revenue, Cash Flows

– Gross Profit Margin

– COGS

– Factors Affecting Company Profitability

Module 3 : Financial Positions

– Understanding AmBank Financial Statements

– Key Components affecting AmBank Financial Positions

– Comparing Industry Standards with Other Banks

– Strategic Positioning of AmBank

– Core Business Units

Module 4: Financial Conditions and Risks

– Types of Risks in Banking – Operating & Credit Risks

– Key Financial Ratio Calculator

– Interpretation of Financial Ratios to the Business

– Vertical, Horizontal, Prospective and Dynamic Analysis

– Asset Management

– Funding Capacity & Capabilities

Module 5: Financial Conditions and Asset Management

– Creative Accounting

– Financial Red Flags

– Business Failures Indicators

Module 6: Business Reports – Conclusions

– Types of Reports

• With or Without Accounting Knowledge acceptable