Series 2: Interpreting Quality of Financial Reports and Accounts
Course Number: ABA
Course Code: ABA
How to interpret risks stemming from the quality of financial reports and underlying financial accounts.
Produced by the Risk Management Association
*Only available as a series
- LDP 2.1 – Interpreting Reliability and Comparability of Financial Statements
- LDP 2.2 – Interpreting Quality and Consistency of Balance Sheet and Income Statements
What You’ll Learn
After completing this series, students will be able to:
- Analyze the reliability of accountant prepared financial statements.
- Compare and contrast the differences among cash, modified-cash, and tax-basis accounting methods.
- Interpret repayment risks stemming from identified financial reporting issues.
- Assess the implication of estimates permitted by GAAP.
- Identify the characteristics of a company’s assets, liabilities, and net worth accounts.
- Determine the integrity of a company’s reported financial condition based on a review of both on- and off-balance sheet accounts.
- Identify the characteristics of a company’s income and expense accounts.
- Analyze the quality of a company’s earnings, the consistency and authenticity of its income and expense accounts, and the sustainability of revenues.
Audience: Loan trainees, credit analysts, and anyone with commercial lending authority.