A4 Training are experts in delivering tailored training solutions to legal teams, covering a complete range of financial topics at every level of difficulty.
How we teach.
The programme comprises four one-day modules, aggregated into two themes:
• Financial Statements
• Investments and Markets
The themes are non-overlapping and may be delivered independently. The modules may be further customised to incorporate specific client requests.
Finance for Lawyers is best suited to the needs of legal professionals who use and interpret information coming from financial statements or those who practice law within a financial markets context.
Delegates in the programme typically come from the following practice areas: Mergers & Acquisitions, Capital Markets, Banking and Finance, Real Estate and Tax.
At the same time, due to the broad range of topics covered, the programme also appeals to lawyers from other legal disciplines who want to better uderstand their clients’ business.
Finance for Lawyers is buit on ten years of experience in delivering nancial training to non- nancial managers and business professionals.
We do not assume any background in nance, and in particular no prior knowledge of accounting or nancial reporting.
We base our courses on real-life examples and numbers:
• Financial statements of companies, carefully picked to re ect the industry focus of delegates.
• Live market data: FX rates, securities prices and interest rates.
Reading and Interpreting Financial Statements.
- The balance sheet and income statement – understanding how they react to common business transactions and events – purchases, sales, acquisitions and disposals of non-current assets.
- Choosing between measurement models: cost, revaluation and fair value.
- Common creative accounting and profit smoothing techniques.
- Understanding the role of development expenditure and investment property assets and their impact on performance.
- Why companies create provisions?
- The role of depreciation and amortisation.
- The need for asset write-downs, write-offs and impairment tests.
- Why certain resources and obligations do not appear on the balance sheet?
- Business acquistions – understanding the computation of goodwill and other acquistion-specific effects.
- Reporting income in the construction industry – the fallacies of the stage of completion approach.
Analysing Financial Performance.
- Understanding the di erence between net profit, EBIT and EBITDA.
- Why investors care about ROE, ROA and ROCE?
- Understanding financial leverage in the context of profit generating potential and capital structure risk.
- Cost generation models and operating leverage.
- Adjusting performance for one-off events and window dressing – a look at common adjustments applied in master lending agreements.
- Measuring operating efficiency – inventory, receivables and payables turnover and their impact on liquidity.
- Why cash flows matter more than profit – making sense of the cash flow statement.
- Assessing ability to pay off debt – interest coverage and free cash flow.
- Understanding the rationale behind common approaches to business valuation.
Investments and Markets
- Understanding time value of money.
- Overview of rates of return on risk-free investments. Making sense of negative interest rates.
- Setting market rates of interest – LIBOR, EURIBOR determination.
- How businesses measure the profitability and rates of return on investment projects? Net present value (NPV) and the internal rate of return (IRR).
- Understanding the cost of capital.
- Determining the rate of return (yield) on investments in fixed income and equity securities.
- Understanding bond price sensitivities (maturity and coupon effects).
- Assessing cross-border investments in a multi-currency setting – introduction to FX rate analysis.
- The drivers of the USD/EUR and other common currency pairs.
- Classifying derivatives – contract types and trading methods.
- Forward contracts explained – commodity, FX and interest rate underlyings.
- Demystifying FX forward rates – making the link between exchange and interest rates.
- Futures trading – common examples from major markets.
- The role of the clearinghouse and margin systems.
- Call and put option payoffs and applications.
- Pricing options and warrants – the intuitive approach.
- Understanding convertible and reverse convertible bond structures.
- Common option hedging strategies and what happens when they go wrong.
- Making sense of swaps – IRS, CIRS and equity swaps.
- Credit Default Swaps (CDSs) explained.