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Series 2: Evaluating Quality of the Borrower’s Financial Reports

The Lending Decision Process and the courses in the curriculum are products of The Risk Management Association.

In this series, Trainees will interpret risks stemming from the quality of financial reports and underlying financial accounts.

 

Duration: Approximately 5 hours.

 

Audience: Loan trainees, credit analysts, and anyone with commercial lending authority.

 

Learning Objectives: After completing this course, students will be able to:

  • Analyze the reliability of accountant prepared financial statements.
  • Compare and contrast the differences among cash, modified-cash, and tax-basis accounting methods.
  • Interpret repayment risks stemming from identified financial reporting issues.
  • Assess the implication of estimates permitted by GAAP.
  • Identify the characteristics of a company’s assets, liabilities, and net worth accounts.
  • Determine the integrity of a company’s reported financial condition based on a review of both on- and off-balance sheet accounts.
  • Identify the characteristics of a company’s income and expense accounts.
  • Analyze the quality of a company’s earnings, the consistency and authenticity of its income and expense accounts, and the sustainability of revenues.

 

The courses included in Series 2: Evaluating Quality of the Borrower’s Financial Reports Curriculum are:

  • LDP 2.1 – Interpreting Reliability and Comparability of Financial Statements
  • LDP 2.2 – Interpreting Quality and Consistency of Balance Sheet and Income Statements 

Commands