EXECUTIVE DEVELOPMENT PROGRAMME A Seminar on How to Analyze Annual Reports, Financial Statements, and The Quality of Earnings In this programme, participants will find new and expanded coverage on how to: * Apply and interpret key business ratios and other indicators of financial strength or weakness * Check for trouble spots * Uncover questionable or misleading practices * Avoid business failure Saturdays 2, 9, 16 June 2012 9:00am - 12:30pm HOW TO ANALYZE ANNUAL REPORTS, FINANCIAL STATEMENTS, AND THE QUALITY OF EARNINGS SG-26591-2012-2-F SEMINAR OBJECTIVES INTRODUCTION Company reports and financial statements of an enterprise represent a summary of the activities of a business. These reports and statements are generally required by law, but they can serve a variety of additional purposes, such as decision basis for financial planning, bank loans and investment. The ability to understand, interpret and use the information in these reports and statements is therefore essential for comparing and measuring company performance, as well as making sound decisions in planning for future development. This seminar is specially designed to provide participants with a clear and concise framework of the contents and format of company reports, and teach you to determine any company’s true financial position and performance, enabling you to spot and understand ALL the key information contained in its financial statements. Included in this seminar are scores of detailed checklists, illustrative examples, and the latest techniques and analytical approaches to help participants get a clear fix on the favourable or unfavourable factors underlying any company’s results - and even improve your own company’s performance. OBJECTIVES Upon completion of the seminar, participants will be able to: understand the statutory requirements of the directors’ report, the chairman’s report and the auditors’ report; interpret the profit/loss statement, its balance sheet and the fund flow statement; evaluate the quality of reported earnings, and conference the relative performance of companies within the same industry; clearly see to what extent earning are backed by cash or highly liquid cash equivalents; detect attempts to overstate or understate assets, liabilities, inventory, receivables; quickly uncover areas of excessive risk, or the early warning signs of business failure and bankruptcy. DESIGNED FOR This seminar will be particularly useful to individuals including: investors, credit grantors, suppliers, business owners, bankers, auditors, and business managers those who have occasion to examine company reports and financial statements but have difficulty in interpreting them. LECTURER MR C M LAI Mr Lai is a qualified accountant since 1985. Taking up the positions in the finance and accounting discipline, Mr Lai has obtained diversified experience through his career in the finance/banking, trading, retail, cinema, restaurant and property industries more than 20 years. Mr Lai is currently the Group Financial Controller of a conglomerate business. He has also been teaching part-time in various universities/instititutions (including HKMA) since the early 1990’s on accounting, banking and investments subjects. ENQUIRIES For reservations and general enquiries, please call Customer Service Department on 2774-8501 or via fax 2774-8503. For course details, please contact Ms Josephine Chow on 2774-8536. SEMINAR STRUCTURE METHODOLOGY This seminar will use actual company reports and financial statements throughout the programme to illustrate and apply the analytical techniques being examined. Participants will be encouraged to actively participate and discuss both the general and specific nature of company reports and financial statements analysis. LANGUAGE MEDIUM The language of instruction will be Cantonese (with English terminology). CONTENTS I. CONTENT AND FORMAT OF ANNUAL REPORTS - WHAT IS INCLUDED AND WHY? 1. The Directors’ Report 2. The Chairman’s Report 3. The Auditor’s Report II. PRESENTATION OF INDIVIDUAL STATEMENTS - WHAT DO THEY MEAN? 1. The Balance Sheet 2. Profit and Loss/Retained Earnings 3. Statement of Cash Flows 4. Notes to Statements 5. Post Balance Sheet Events 6. The Interim Report III. BALANCE SHEET ANALYSIS 1. How to Analyze Assets 2. How to Analyze Liabilities 3. Shareholders’ Equity IV. EARNINGS QUALITY AND KEY RATIOS 1. Earnings Stability 2. Operating and Financial Leverage 3. Return on Investment 4. Other Measures of Earnings Capacity V. FINANCIAL DISTRESS AND BANKRUPTCY 1. Indicators that a Firm is Not a Going Concern 2. Short-term and Long-term Debt-Paying Ability 3. Appraising the Statement of Cash Flows NOTE: Please bring your calculator ADMINISTRATIVE DETAILS DATES & TIME VENUE Saturdays 2, 9, 16 June 2012 9:00 am - 12:30 pm W Haking Management Development Centre The Hong Kong Management Association 14/F Fairmont House 8 Cotton Tree Drive Central HONG KONG FEE (Inclusive of tea/coffee breaks) HKMA Member: HK$2,800 Non-member: HK$2,950 Early Bird Discount: HK$200 each (For those who make payment one month before the course commencement date) Group Discount: HK$200 each (For those companies which send a total of two OR more participants to this course and enrol of the same time) DEADLINE FOR APPLICATIONS 26 May 2012 AWARD OF CERTIFICATE OF ATTENDANCE Certificate of attendance will be awarded to participants who have attended the whole programme. For enquiries concerning the Certificate of attendance, please contact Ms Mei Tang on 2774-8553 during normal office hours. HOW TO ANALYZE ANNUAL REPORTS, FINANCIAL STATEMENTS, AND THE QUALITY OF EARNINGS SG-26591-2012-2-F (EB) 2, 9, 16 June 2012 FEE: HKMA Member: HK$2,800 / Non-member: HK$2,950 ENROLMENT FORM *Applicants should include their HKID card number and fill in their details in block letters, otherwise no MDCU will be given. The Association will issue certificates based on following details and name format. Name (Mr/Ms): (Surname) ( HKID Card No.: (Other Names) ) HKMA Membership No.: Position: Company: Address of Company: Nature of Business (e.g. Toy Manufacturing), please specify: Job Responsibilities: Telephone No. (Office): (Residence): Fax No. (Office): E-mail: (Mobile): Correspondence Address: Cheque Number: Education Level: Cheque Amount: HK$ Master or above Bachelor HKMA Diploma Matriculation F.5 Others (Please specify) Total Number of Years’ Working Experience: Other Diploma Years of Working Experience in Course-Related Field: Name and Title of Nominator (Mr/Ms): Nominator Email / Address: Sponsorship Company-sponsored Self-sponsored Where did you first learn about this programme? Email Newspaper/Magazine (please specify): HKMA email Email promotion form other websites (please specify): Website advertisement (Please specify): HKMA Website (From where did you learn about, please specify): MTR Station Display (Please specify): Exhibition Education & Careers Expo (EEX) Jobmarket Career & Education (EJEX) Others (Please specify): I understand that all handout materials obtained in class are strictly for my own educational purposes. OINA Signature: Date: This form together with a crossed cheque payable to The Hong Kong Management Association should be returned to: Executive Director, The Hong Kong Management Association, 16/F Tower B Southmark, 11 Yip Hing Street, Wong Chuk Hang, Hong Kong. Registration must be made on the Enrolment Form provided and returned to the Association before the programme commencement date (Not less than 5 days) with full fee. Acceptance is subject to the discretion of the Association. Applicants will be notified by telephone to confirm receipt of the application form and full programme fee. An official receipt will be sent to you within two weeks. Applicants are expected to attend the course at the place and time specified in the brochure unless otherwise notified. When a programme is over-subscribed, additional classes may be started in some cases. Applicants may then be notified of the new time, dates and place of meetings when necessary. For ENROLMENT and ENQUIRIES please call 2774-8501 (Customer Service Department) during normal office hours or fax 2774-8503. No refund will be made after payment, but participants can arrange to have their places substituted should they be unable to attend the programme by notifying the Association at least 2 days prior to programme commencement. Fax reservations are welcome but are subject to confirmation by payment in full within 10 days of the date the reservation is made or 5 days prior to programme commencement, whichever is sooner. Applications, upon full payment, will be processed on a first-come first-served basis. Before classes/examinations commence, if the Observatory announces that Typhoon Signal No.8 or above/Black Rainstorm Warning is in force; or Typhoon Signal No.8 or above will be hoisted within 2 hours, no classes/examinations will be held. Replacement classes and remedial examinations will be arranged. (All classes will be held as scheduled if Typhoon Signal No.8 or above/Black Rainstorm Warning is lowered at or before 7:00 am; 2:00 pm classes and examinations thereafter will be held as scheduled if Typhoon Signal No.8 or above/Black Rainstorm Warning is lowered at or before 12:00 noon; 6:00 pm classes and examinations thereafter will be held as scheduled if it is lowered at or before 4:00 pm.) When Typhoon Signal No.8 or above is in force during classes/examinations, all classes and examinations will be dismissed immediately. Replacement classes and remedial examinations will be arranged. When Black Rainstorm Warning is in force during classes/examinations, all classes and examinations will be held as scheduled. The HKMA reserves the right to make alterations regarding the details. For course details, please contact Customer Services Department on 2774-8501 or Ms Josephine Chow on 2774-8536. Website: WWW.HKMA.ORG.HK Personal data will be used for the purposes of market research, programme development and direct mailing. The HKMA supports the equal opportunities policy, without discriminating against any person on the grounds of gender, disability, family status or any other basis.