Program Schedule

Program Content

• 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 4^th (1978) Directive Standard Accounting and 7^th (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