EuroWings Training Center | - Methodology for Evaluating the Real Worth of Organizations training courses

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This program provides you the Business Analysis tools to evaluate the real worth of organizations. Besides estimating organizational financial worth, Real worth includes the strategic assets of the organization. Understanding these strategic assets and converting them into $ terms is an important part of this program.
This Program will discuss the following analysis issues and the best ways to solve the analysis problems...

Real Worth requires making decisions based on
More than 1 Years Performance
ComWashington, DCon with its “Like” Competitors
Comparing “Like with Like”
Real Skills lie in knowing
Which Figures to Use
Where to Find them
How to Judge the Result
Sources of Data are many
Financial Statements
Non Financial Statements
Comparing “Like with Like” becomes difficult due to variations between countries in
Laws
Regulations
Rules
Accounting Standards
Codes of practice
Going Concern Analysis
Fully Owned Subsidiary Company
Partly owned Subsidiary Company
Intra-Group Trading
Retained Profits
Capital Gains
Asset Valuation
Potential Future Risks
Profit and Cashflow generating capacity – Liquidity, Solvency
Future Performance
Currency Fluctuations
Inflation
Current Purchasing Power Accounting (CPP)
Current Cost Accounting (CCA) – values assets using indices at Reference Date
Original or Historic or Book Values
Depreciation
Replacement Value
Valuations based on Going Concern
Current Market Value or Disposal Value
Accountant’s Prudence
Better undervalue than overvalue assets
When in Doubt Write it Off
Prudent Accounting
Value Inventory at Lower of Cost or Market Value
Write Off Potential Bad Debts Immediately
If any doubt about some revenue recognize it only when it is collected in cash
Do not anticipate future income events in income statements
Provide for all known or anticipated (may lead to hidden reserves)
Liabilities
Losses
Recognize future losses as soon as they are known (suspected?)
Promise of a Large Order without a legally binding agreement can not be reflected in the accounting books or till ownership of goods is transferred to the customer
Asset value increase due to Inflation or currency can not be included as profit unless the asset sold
Aggressive Accounting
Income considered at time of Invoicing and not when goods delivered or payment received but recorded as accrual (money to be paid) or prepayment (advance)
Multiple different ways to Account for Certain Transactions
Inventory Valuation Method
Depreciation Method
Changes during the year/s of (see regulations)
Inventory Valuation Method Change
Depreciation Method Change
Terminology
Classification of Costs
….Accounting Policy…
Important and Material Information about the Company (from your/customer point of view)
How big impact is Material?
2%, 5%, 10% Of what is being considered?
Any Information obtained
Timeliness
Free from Errors
Unbiased
Complete
Clearly Relevant
Variations in Accounting Standards
Financial Accounting Standards Board (FASB) of US
International Accounting Standards Committee (IASC)
International Financial Reporting Standards (IFRS)
Generally Accepted Accounting Principles (GAAP)
Laws
Stock Exchange Rules
Accounting Standards
Conventions
Concepts
Practices
US GAAP
EU 4th (1978) Directive Standard Accounting and 7th (1983) Directives Quoted Co Standard– Formats
German GAAP
Stock Exchange Listing Requirements from Stock Exchange and Relevant Securities & Exchange Commission (SEC), requiring varied…
Reporting
Disclosure
Different Auditing Standards
Chartered Accountants of England and Wales (ICAEW)
American Institute of Certified Public Accountants (AICPA)
Large Audit Firms vs. Small Audit Firms
National Practices (GAAS and GAAP)
Non Standardization of Chairman or CEO Statement or the Operating and Financial Review (OFR)
Definition of “True and Fair View” of a Company’s Financial Performance and Position
Different Legal Systems based on Common and Roman Law Countries
Interpretations of “True and Fair View” is Dynamic
Balanced and Objective Dynamics of Various Lines of Business
Risk Factors
Expectations of Future Changes
events
trends
uncertainties
Rule about Data Compilations and Analysis: When in doubt do it yourself.
Hindsight Factor
Sources of Data Covered Include
Annual Directors Report
AGM Annual Report & Accounts
Legal Disclosure Requirements for AGM
Auditor Reports
Corporate Strategic Plan (If available)
Accounting Reports
Submission Requirements to Limited Company Registration Authority
Private Limited
Limited
Quoted Companies
Publication Requirements
Tax Requirements
Stock Exchange Requirements for Listed Companies
Regulatory Authorities
Reports Required by Regulatory Authorities
Industry Specific
Environment
Safety
Labour
Consolidated Accounts of Group Companies
Parent Company Balance Sheet (Not in US)
Corporate Governance
Combined Code (All UK Quoted Companies)
Hampel Code (1998)
Cadbury Code (1992)
Greenbury Code (1996)
Good Governance & Best Practices
Going Concern
Independent Remuneration Committee
Directors Accounts Responsibility
Audit Committee – Review of Best Practice Compliance
Balanced & Understandable Assessment
Various Compliance Statements to
Stock Exchanges
Securities and Exchange Commission (SEC)
Foreign Company Additional Disclosure
Chairman or CEO Statement or the Operating and Financial Review
Director’s Shareholdings
Commercially Available Information about Organizations

EURO WINGS - Methodology for Evaluating the Real Worth of Organizations

Program Content