A pre-recorded streaming VIDEO replay of the August 2015 webcast, Understanding Financial Statements.
Understanding and analyzing financial information is essential in all areas of legal practice, including, among others, estate planning, family law, bankruptcy, litigation, business valuation, corporate formation and representation, and workers’ compensation. Participants will learn how to decide how much reliance to place on financial reports and what inquiries should be made in various circumstances. The knowledge gained will enhance the ability to examine and communicate with accounting and financial professionals and help participants avoid being misled about financial results and more.
While engaging an accounting expert is sometimes an option, often there is not the time or availability to access that advice. Whatever their specialties, lawyers must understand financial concepts in order to understand their clients’ goals and the interests of other parties to deals.
The Basic Rules of Accounting
- Understanding basic accounting terminology and the accounting formula
- Knowledge of the four basic financial statements
- How to read financial statements and their interrelations
- The importance of notes to financial statements
- Types of auditor reviews of statements and the significance of the auditor's opinion
- Overview of AICPA Financial Reporting Framework for Small- and Medium-Sized Entities
Specific Issues and Quantitative Analysis
- Capitalization vs. expense policies
- Inventory valuations
- Fixed assets and depreciation
- Intangible assets and amortization
- Debt analysis and time value of money
- Ratio and trend analysis
Common Areas Where the Attorney Will Be Involved with Financial Statements
- Securities offerings
- Contract negotiations
- Real estate developments
- Mergers and acquisitions
- Divorce and custody matters
- Tax and estate planning