Module 1.4: Financial Statement Analysis and Interpretation [4HRS]

Chapter Learning Objectives

• Understand various techniques used in analyzing financial statements and their applications
• Assess financial position and health of a business.

Chapter Learning Outcomes
At the end of this chapter a learner should be able to assess and interpret the performance of both private and public owned firms using various techniques. The regulators should be able to get the meanings of the financial statements data, to get information necessary for decision-making.

Sessions to be Covered:

Session 1: Vertical and Horizontal Analysis
Session 2: Ratio analysis technique
Session 3: Cross-sectional and Time-series (Trend analysis) technique
Session 4: Indicators and causes of financial distress and business failures.