LBS logo London experience. World impact.

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:

v1_AFA

  • How you learn
    15_prog_content

    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.

    20_prog_content

    Tutorials

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

    05_prog_content

    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: 30 Jul 2018
2018 Fees: £7,300
Location: London

Next programme dates:


  • 30 Jul - 03 Aug 2018

Contact us

Contact David Ratcliffe, Programme Associate.


Email: finance@london.edu

Tel: +44(0) 20 7000 7051

Email us