Accounting Principles for Lenders
A banker's understanding of accounting fundamentals is essential to the application of sound financial statement and credit analysis.
Accounting is the language employed to communicate financial information.
It is the process of identifying and measuring economic events, then classifying, recording and summarizing the measurements and reporting the information to permit judgments and decisions by the users. Bankers rely on this accountant prepared information to make such decisions.
The purpose of this course is to expose the participant to the flow of accounting from identifying economic events and how they are reported in financial statements. Another purpose is to demonstrate how the Balance Sheet, Income Statement, Reconciliation of Net Worth and Cash Flow Statement are developed and connected to each other. The instructor is a banker; therefore, the approach to the credit analysis process will be from a banker’s perspective. Case studies will be used to reinforce concepts presented.
- Underlying Assumptions Used by Accountants
- Rules of Debits and Credits
- Construction of the Balance Sheet, Income Statement, Reconciliation of Net Worth and the Statement of Cash Flow
- Difference between Accrual and Cash Basis Accounting
- Analysis of Accounts often used as Collateral such as:
- Accounts Receivable (Aging Schedules, Allowance Calculations, etc)
- Inventory (Effect of LIFO, FIFO and Average Cost Costing Methods)
- Fixed Assets (Effect of varying Depreciation Methods)
- Analysis of the Notes to the Financial Statements
- Types of Financial Statements and meaning of CPA’ Opinions
After completing this course, the participant will have:
- A firm understanding of how financial statements are constructed
- A firm understanding of how the financial statements are connected
- A firm understanding of the accounting used for major collateral accounts
- A firm understanding of how to apply the concepts to credit analysis
Commercial Lenders, Consumer Lenders, Branch Managers, Credit Analysts, Loan Review Officers, Credit Officers and Directors requiring a better understanding of financial statements.
Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.
Most of his career has been spent in Credit Administration, Lending, Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individual, Middle Market Companies, Small Business, Real Estate and Non-Profit Organizations.
Mr. Johnson is now a training professional in the financial industry by leading various seminars covering important topics relating to issues in financial institutions. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual financial institutions nationwide. He co-authored a training course entitled “Lending to Service and Other Professional Organizations” for RMA in 2001.
Mr. Johnson earned a B.A. Degree in Accounting from Morehouse College in Atlanta; a MBA in Finance from John Carroll University in University Heights, Ohio; Banking diploma from Prochnow School of Banking at the University of Wisconsin and a Graduate Certificate in Bank Management from the Wharton School of Business at the University of Pennsylvania.
Institute of Certified Bankers: Visit http://www.icbmembers.org/login.aspx for instructions regarding self-reporting. Estimated credits: 2.5 CE Credits
- Live Webinar which includes 7 Day On-Demand - $265
- Six Month On-Demand – $295
- Live plus Six Month On-Demand – $365
- CD-ROM (Includes Six Month On-Demand) – $325
- Premier (Includes all options) – $395
- Additional Locations – $75
Online: Click here.
Phone: Call Total Training Solutions at (800) 831-0678
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