Understanding Financial Statements
Presenters : Doubt Moyo
Overview
Financial statements are the foundation of informed business decisions. They provide a clear picture of an organisation’s financial position, performance, and cash flow — enabling managers, investors, and other stakeholders to make data-driven decisions. Understanding how to interpret these statements is essential for evaluating profitability, liquidity, and solvency.
Join Doubt Moyo (ACCA, ICTA) as he unpacks the components of financial statements and demonstrates how to analyse them effectively. This session will equip participants with practical tools to interpret balance sheets, income statements, cash flow statements, and equity reports, while understanding the key differences between GAAP and IFRS reporting standards.
Learning objectives
By attending this webinar you will gain the following competencies:
• Read and understand the components of key financial statements.
• Interpret financial information using ratios and trend analysis.
• Distinguish between profit and cash flow and their impact on business health.
• Identify and analyse the relationship between assets, liabilities, and equity.
• Apply financial statement analysis to support sound business and investment decisions.
Content
The webinar will cover the following topics:
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Introduction to Financial Statements
o Purpose and importance of financial statements.
o The four main types: Income Statement, Balance Sheet, Cash Flow Statement, and Statement of Changes in Equity.
o How financial statements inform decision-making. -
The Accounting Equation and Frameworks
o The fundamental equation: Assets = Liabilities + Equity.
o Differences between GAAP and IFRS.
o Key terminology and structural variations. -
Understanding Key Financial Statements
o Balance Sheet – Assessing assets, liabilities, and equity to evaluate financial position.
o Income Statement – Measuring profitability and performance over time.
o Cash Flow Statement – Tracking cash inflows and outflows from operating, investing, and financing activities.
o Statement of Changes in Equity – Understanding movements in ownership value. -
Analysing Financial Information
o Common financial ratios: liquidity, solvency, profitability, and efficiency.
o Interpreting results through trend (horizontal) and common-size (vertical) analysis.
o Connecting profitability, liquidity, and cash flow performance. -
Using Financial Statements for Decision-Making
o Applying ratio analysis for credit and investment evaluation.
o Identifying financial risks and growth opportunities.
o Recognising red flags and early indicators of financial distress.
