Event: Demystifying Financial Statements - The Essentials

Practical Law in association with MacIntyre Hudson

Practical Law is working in association with MacIntyre Hudson Advisory Services to deliver a one day course on Demystifying Financial Statements - The Essentials on Thursday 18 September 2014.

About the Course

There are transactions where lawyers need an understanding of accounts. For example drafting the accounting aspects, such as the warranty section, of a share purchase agreement in an acquisition, the financial covenants clause in a loan agreement, loss of profit calculations in litigation, the tax consequences of these or advising on profit related pay schemes or pension plans as part of a remuneration scheme.

More generally lawyers also need to appreciate the impact the deal will have on the company's future financial statements; which can help to manage the risk that a transaction has unintended accounting consequences as well as meeting clients increasing expectations that their legal advisors have a thorough grounding in finance.

This course will increase delegate’s confidence in dealing with these financial issues by explaining technical accounting terms in everyday accessible language.

This programme is not intended to turn a lawyer into an accountant but to enable delegates to:

  • Spend less time in drafting and researching.
  • Negotiate deals more effectively and efficiently; and
  • Be better prepared for client meetings.

Content

The material will be covered using both tutor led annotation on screen and team worked examples as well as a set of accounts (which delegates will be given the opportunity to mark up).

  • Statutory accounts versus management accounts.
    • Preparation of, differences and warnings over their limitations.
  • The framework of Financial Reporting in the UK
    • The dual accounting regime -Which companies apply which accounting standards
    • Defining the regime in a legal document and why it is important to get it right
    • What is the fuss about the introduction of the ‘new UK GAAP’ regime and what this will mean for your drafting?
    • Top 3 things lawyers must remember about GAAP
  • Key components of a set of accounts:
    • What would you expect to see in the ‘Contents’ page of a set of accounts?
    • Overview of each of Balance Sheet, Profit and Loss account and Cash flow
    • Suggested approach to reading a set of accounts
  • The Audit Report
    • Understanding what it is and isn’t telling you
    • The underlying legal requirement to prepare accounts to give a True and Fair view
    • Opinions – ‘clean’ versus ‘unclean/dirty’ – when and why?
  • Reinforcing why cash and profit are different and which rules when?
  • Other fundamental accounting concepts, policies and estimates needing clarification (Going concern, consistency, prudence and the implications of changes in policies and estimates and why these are important)
  • Line by line consideration of the key components of a set of statutory accounts:
    • What is included in each of the line items? (Demystifying financial terms)
    • Examples of how are the items valued in the Balance Sheet?
    • Why is the value in the Balance Sheet not the amount you would pay for the company?
    • Where are the subjective areas and choices in treatment?
    • What is meant by ‘profit’ and EBITDA?
    • How does the profit and loss account link into the Balance Sheet?
    • How does the Cash flow Statement fit with the Balance Sheet cash line items?
  • Exploration of the notes to the accounts – what extra useful information may be there about the business?
  • Events after the Balance Sheet date
    • What the financial statements tell us about events between the year end and the date of approval and beyond – why is this useful?
  • Demystifying common financial terms such as working capital, net assets and gearing
  • Summary of key terminology differences used in UK GAAP and International Financial Reporting Standards (IFRS) accounts

Who should attend

All lawyers of any level or practice area who need a better understanding of accounting terms or a refresher.

Details

Date:
18 September 2014

Time:

  • 09h30: Registration
  • 10h00: Morning session
  • 13h00: Lunch
  • 13h40: Afternoon session
  • 17h00: Course finishes

CPD:
6 CPD Points


Pricing*:

Book before 07 August 2014 to claim our Early Bird Offer!

  • Subscribers: £325
  • Non-Subscribers: £375

Standard Price

  • Subscribers: £400
  • Non-subscribers: £450
*all pricing subject to VAT

Location:
Maclntyre Hudson Advisory Services LLP
New Bridge Street House
30 - 34 New Bridge Street
London EC4V 6BJ

Please click here for directions.

Contact us

If you would like to know more about any event, please contact the events team or call +44 20 7202 1220.

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