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Programme content

Cutting-edge techniques with practical relevance

Day 1: Structure of the income statement and balance sheet

Key ideas in financial analysis:

  • capital employed; EBIT, economic profit and EVA, earnings

  • return on capital employed and return on equity

  • leverage,financial structure and equity cover

  • Overview of the GAAP accounting rules.

Day 2: What is an asset and a liability?

  • Recognition of intangible assets

  • Effect of M&A on the financial statements

  • Off-balance sheet accounting to hide borrowing.Asset/liability derecognition

  • Operating leasing, securitisation, non-consolidation and equity accounting.

Day 3: The nature of income:

  • income measurement strategies: revenue recognition and cost capitalisation

  • income presentation strategies: EBITDA, underlying income, pro forma accounting 

  • Analysis of cash flow to reveal financial strength and creative accounting

  • Prediction of financial distress.

Day 4: Valuation – how assets and liabilities are valued in balance sheets

  • The financial analysis of financial services companies, banking and insurance 

  • Financial modelling  – forecasting the future of the business by projecting its financial statements.

Using the financial model:

  • for managing the business and developing business strategy

  • to value businesses.

Day 5: Forensic financial analysis – decomposing return on capital to reveal the economics of the business and the drivers of its return and value

  • The new orthodoxy in balance sheets. How companies are evolving their balance sheet models in pursuit of economic value.
  • The future direction of GAAP.

Live cases from leading global companies bring each topic to life and demonstrate the practical application and characteristics of each technique. Case studies include:


  • How you learn

    Case studies

    Case studies are used to apply key concepts to real businesses, focussing on performance measurement analysis. These include: AOL, Time Warner, WPP, EasyJet, Lehman Brothers, Enron, and Vodafone.



    Through tutorials, interact with tutors with industry expertise, who offer you invaluable guidance with group work and projects.


    Study groups

    Learn from each other’s experiences working in study groups and gain international perspectives on accounting. Work collaboratively and apply the techniques you have learned by completing a variety of project work.

Key details

Duration: 5 days
Next start: 02 Sept 2019
Fees: £7,500
Location: London

Next programme dates:

  • 02 - 06 Sep 2019

Contact us

Contact David Ratcliffe,
Client Relationship Manager.

Email: finance@london.edu

Tel: +44(0) 20 7000 7051

Email us