Understanding Financial Statements

Board Members: Financial Statements & Budgeting Essentials

Gain the confidence to actively participate in boardroom discussions about financial performance with this essential course. Learn to interpret key financial documents and contribute meaningfully to strategic decision-making.

Here's what you'll discover:

• Understanding Financial Statements: Decode the purpose of the three core financial statements – the balance sheet, income statement, and cash flow statement – and what insights each provides about the company's health.
• Budget Review Expertise: Develop the skills to effectively review an operating budget, identify key trends, and assess financial performance against planned targets.
• Asset vs. Expense Recognition: Clarify the distinction between recording expenditures as assets on the balance sheet versus expenses on the income statement – a crucial understanding for financial analysis.
• Internal Controls for Asset Protection: Explore various types of internal controls designed to safeguard company assets and mitigate financial risks.
• Financial Statement Review Process: Master a ten-step process for thoroughly reviewing financial statements, ensuring a comprehensive understanding of the company's financial position.

This course provides a clear, easy-to-understand foundation for board members to feel comfortable and informed when reviewing financial statements and budgets.

Learning Objectives:

• Recognize the information conveyed by each of the three primary financial statements.
• Learn how to conduct a thorough review of an operating budget.
• Distinguish between asset and expense recognition in financial reporting.
• Explore different types of internal controls for asset protection.
• Understand and apply a ten-step process for reviewing financial statements.