An introduction to the four main financial statements, with examples of how the statements are affected by different business transactions.
An introduction to balance sheets, including an explanation of the balance sheet equation and descriptions of assets, liabilities and shareholders’ equity.
The income statement shows whether and how a company made or lost money over an accounting period. This course describes the income statement and the common classifications of revenue and expenses you’ll see on it. It also explains different measures of profitability such as net income, EBIT and EBITDA.
Cash flow is fundamental to a company’s ability to stay in business. This course explains cash flow statements and how they’re used to track cash from a company’s operating, investing and financing activities.
A walkthrough of a statement of shareholders’ equity, including what events typically cause changes in the value of shareholders’ equity.
What to look for in a company’s financials and annual report to give you a quick picture of a company’s financial health and current and future financial prospects.
Lawyers often want to look for financial information about a company, whether it’s to better understand a client’s business, to learn about the other side in a transaction or litigation, or for business development purposes. This course provides some tips on where to look.
The main difference between cash accounting and accrual accounting is how revenue and expenses are recognized. This course briefly explains these accounting methods and describes how revenue and expenses are recognized in accrual accounting.
A summary of how depreciation and amortization work and how they show up on the financial statements.
The math behind calculations related to the time value of money, including calculations for interest rates, present and future value, annuities and perpetuities.
Valuation is one of the most fundamental concepts in corporate finance. This course describes the different measures of a company’s value, and the various techniques used to value businesses and their assets.
Process & Oversight
An audit is the primary mechanism for providing confidence in the reliability of a company’s financial statements. This course explains the audit process, audit opinions and how audited financial statements are put together.
A discussion of how finance departments are structured, including descriptions of the typical responsibilities of common senior finance roles.
An overview of the accounting process, including how transactions appear in a company’s chart of accounts, general ledger, trial balance and financial statements.
An introduction to the regulatory framework and financial reporting for US and non-US companies, including GAAP, FASB, IFRS and IASB.
Application to Legal Practice
The key financial concepts in bankruptcy practice, broken out by the main phases of the bankruptcy process.
The key financial concepts in capital markets practice, including types of securities, pricing, securities offerings and periodic reporting.
The key financial concepts in emerging companies practice, including initial startup issues and the financial and accounting issues involved in debt and equity financings.
The key financial concepts in lending practice, including the main types of loans and their risk, financial reporting requirements for borrowers, financial covenants, and credit ratings.
The key financial concepts in litigation practice, including how financial statements are used by litigators, which bookkeeping records might be included in a document request, the roles of financial experts and fact witnesses, and the basis of calculations for damages or settlements.
The key financial concepts in M&A practice, including valuations, the main financial provisions in M&A agreements and general tax and accounting issues.
The key financial concepts in real estate practice, including when financial concepts come into play, financial soundness and guarantors, and covenants and ratios.