Understanding and Analyzing Consolidated Financial Statements

Training Program

Understanding and Analyzing Consolidated Financial Statements

Understanding and analyzing consolidated financial statements is an essential skill for anyone responsible for interpreting the financial health of a group of companies. In a business environment where strategic decisions rely on a deep understanding of consolidated financial reports, mastering the principles and underlying mechanisms of these documents is crucial.

This training will familiarize you with international accounting standards (IFRS) and teach you how to interpret the main components of consolidated financial statements: the balance sheet, income statement, and cash flow statement. You will gain insights into adjustments, consolidation scopes, and integration methods (full consolidation, proportional consolidation, and the equity method).

Designed for professionals looking to strengthen their financial knowledge, this course will equip you with the tools needed to analyze the performance and financial structure of a group, identifying key indicators and potential risks.

By the end of this training, you will be able to interpret consolidated financial statements and draw well-informed conclusions about a company group's financial and strategic situation.

Training Objectives

• Understand the logic and objectives of consolidated financial statements.
• Master the reading of consolidated financial statements: balance sheet, income statement, and cash flow statement.
• Identify specific adjustments and their impact on financial analysis.
• Evaluate the profitability, financial structure, and risks of a consolidated group.
• Apply these concepts through case studies and practical scenarios.

Target Audience

• Entrepreneurs
• Managers
• Professionals in career transition

Training Duration

• 2 days (14 hours)

Training Program

Understanding and Analyzing Consolidated Financial Statements

I. Introduction to Consolidated Financial Statements

• Definition and objectives of consolidated financial statements
• Main accounting frameworks: IFRS vs local standards
• Consolidation scope: full consolidation, proportional consolidation, and equity method

Practical Case:

Identifying the consolidation scope of a corporate group

II. Reading and Interpreting Consolidated Financial Statements

• Consolidated balance sheet: assets, liabilities, and shareholders' equity
• Consolidated income statement: margins, EBITDA, and net income
• Consolidated cash flow statement: operational, investment, and financing cash flows

Practical Case:

Analyzing a consolidated balance sheet and income statement

III. Adjustments and Specific Restatements

• Elimination of intra-group transactions
• Goodwill treatment and impairments
• Impact of scope variations and consolidation of foreign subsidiaries

Practical Case:

Adjusting intra-group transactions in a consolidated balance sheet

IV. Financial Analysis of Consolidated Financial Statements

• Profitability ratios: ROE, ROA, ROCE
• Financial structure analysis: debt levels, gearing, financial leverage
• Assessing liquidity and solvency

Practical Case:

Calculating and interpreting consolidated financial ratios

V. Risks and Limitations of Consolidated Financial Statement Analysis

• The impact of IFRS standards on comparability
• Accounting adjustments and their influence on financial analysis
• Specific cases: provisions, deferred taxes, financial instruments

Practical Case:

Analyzing the impact of new IFRS standards on a listed group

VI. Case Studies and Practical Applications

• Case study: analysis of a listed corporate group's consolidated financial statements
• Evaluating financial performance using consolidated financial statements
• Interpreting cash flows for decision-making

Practical Case:

Financial diagnosis based on the consolidated financial statements of a listed company