Basic Accounting Theories

Accounting - Part 4


Module 1: Balance Sheet – An Introduction
This eCourse consists of two modules. Module 1 uses examples of both IFRS and US GAAP balance sheets to describe the various elements (assets, liabilities, and equity) that make up the balance sheet. The module also examines how the presentation and terminology of certain balance sheet items can differ under IFRS and US GAAP standards. Finally, it looks at key balance sheet accounting policies in relation to depreciation, amortization, and the impairment of assets.

Module 2 outlines the importance of balance sheet analysis, particularly from the point of view of credit analysts. It demonstrates how to perform an analysis using common size balance sheets and describes the key ratios and other measures – such as the debt/equity ratio and various liquidity ratios – that can be derived from balance sheet values.


On completion of this course, you will be able to:

- Identify the different types of balance sheet assets and liabilities and the components of shareholders' equity
- Recognize how the order of presentation and the terminology associated with certain balance sheet items can differ between IFRS and US GAAP accounting standards
- Identify the key balance accounting policies related to depreciation and amortization
- Recognize the importance of balance sheet analysis when making lending decisions in relation to a company
- Perform a balance sheet common size analysis
- Calculate and analyze key ratios related to liquidity, solvency, and working capital management


Module 1: Balance Sheet – An Introduction
Topic 1: Balance Sheet Presentation
Topic 2: IFRS Balance Sheet Example
Topic 3: US GAAP Balance Sheet Example
Topic 4: Balance Sheet Accounting Policies

Module 2: Balance Sheet - Analysis
Topic 1: Balance Sheet Analysis


SFC:1.50, PWMA:1.50
Staff of Corporate Member: HK$425
Non-Member: HK$630
All Member: HK$425