Accounting Principles for Business Bankers
Outline of Programme
On completion of this programme, students will understand the following :
- The Ten Commandments of Credit and why they cannot be broken
- The importance of taking security for the right reasons
- How to lend to the future using historical information
- Their role as a decision maker rather than an information gatherer
- Understanding the contents of the Statement of Comprehensive Income for risk analysis
- How to understand PROFITABILITY rather than PROFIT
- Understand the difference between profit and cash flow
- The objectives of a business
- Concept of sustainable growth vs maximising profit
- Understanding the world of finance
- Understand the players of the game
- Note the important distinction between accounting rules, tax rules and legal entity rules
- Understand their role in the “game of finance “
- Fundamental accounting concepts
- How the Going Concern Concept explains the nature of the Statement of Financial Position and the importance for credit officials
- How the Matching Concept explains the nature of the Statement of Comprehensive Income and the importance for credit officials
- Using the Fundamental Accounting Concepts to draw up the financial statements
- The importance of financial information in Annual Financial Statements
- Understanding the Accounting Process
- Following the process from transaction to Statement of Financial Position in relation to a better understanding of credit risk assessment
