1. The Basics of Business Accounting
• Accounting – definition and core concepts
• Business transactions and its classifications
• Accounting and its functional objectives
• The business entity concept and how it differs from legal entity concept
• Business activities:
i. Operating
ii. Investing
iii. Financing activities
• The basic accounting equation
• Introduction to Generally Accepted Accounting Principles (GAAP) and International Accounting Standards (IFRS)
• Introduction to financial statements
i. Balance Sheet
ii. Income Statement
iii. Cash Flow Statement
iv. Comprehensive Income statement
v. Change in equity statement
• Elements of financial statements and their classifications
• How financial statements for banks are different than those of companies
• Financial statements and business decisions
• Tangible and Intangible assets
• Accounting for consolidation
2. Accounting for Financial Institutions
• Banking assets and liabilities
• Banking revenue and expenditure items
• Contingent and off balance sheet items
• Capital requirements for commercial banks
3. Accounting Data Processing
• Trial Balance, format and uses
• The need for adjusting accounts
• Time period concepts and revenue recognition principles
• Major types of adjusting entries
i. Accruals
ii. Prepayments
iii. Advance receipts and payments
• Major types of adjusting entries
i. Merchandise inventories
ii. Bad debts
iii. Depreciation and amortization
• Adjusted trial balance
• Preparing financial statements from adjusted trial balance
• Introduction to worksheet
• Closing process through “expense and revenue summary account”
• Post closing trial balance
i. Contents
ii. Uses
4. Receivables
• Creation of accounts receivable
• Collection of receivable
• Valuation of account
• Estimation of bad debts
• Aging of accounts receivable
• Writing off and recoveries
• Notes receivables
• Presentation on financial statements
5. Provisioning process
• Importance
6. Accounting for Fixed Assets
• Acquisition of fixed assets
• Depreciation methods and their effects on financial statements
• Intangibles and natural resources – simple accounting appreciation
• Typical issues related to tangible and intangible fixed assets
• Revaluations in fixed assets
7. Understanding Financial Statements
• Profit and loss statement
• Balance sheet
• Cash flow statement
• Statement of equity
• Critical elements to ascertain health of the enterprises
• Understanding notes attached to financial statements
8. Investments
• Accounting classifications
i. Held for Trading
ii. Available for Sale
iii. Held Till Maturity
• Standards relating to accounting classifications
• Balance sheet presentation and treatment
• Income statement presentation and treatment
9. Analysis of Financial Statement
• Horizontal and vertical analysis
• Financial ratios including cash flow ratios (Bank financial statement analysis)
• Interpretations and applications of financial ratios in banking decisions
