Forensic Accounting Services has designed a series of in-house training seminars designed to provide solicitors with an overview of accounting principals and financial statement analysis for the purpose of understanding the process used in analysing business’, whether the analysis be for the purpose of quantifying damages or economic loss sustained, valuation of the business or specific investigative reasons.

The general session topics are as follows:

Accounting fundamentals;

The story the financial statements portray;

Quantifying Damages – Misleading or Deceptive Conduct;

Quantifying Economic Loss – Business Interruption

Business Valuation – Methodology and process.

An overview of each of these sessions is detailed below.

All sessions run for approximately 1 hour, however, they may be individually tailored to the existing skill set of the participants.

Further, all sessions stand alone and may be run individually or with a combination of the other sessions.

Finally, these sessions are run free of charge to participating firms, with the exception of any costs incurred by Forensic Accounting Services. If you would like to know more about these training sessions, please contact us on either (07) 3394 3395 or email

Accounting Fundamentals

This topic is designed to give participants an overview of the basic accounting concepts and reading financial statements.
Areas covered include:       

Introduction to the double entry accounting system;

Concept of revenue, expenses, assets, liabilities and equity;

What are journals and ledgers;

What is a trial balance;

What are financial statements;

Reading a Profit & Loss Statement;

Reading a Balance Sheet.

The Story the Financial Statements Portray - Financial Statement Analysis

Following on from the ‘Accounting Fundamentals’ session, this topic focuses on analysing financial statements with a view to gaining an opinion as to the financial performance and strength of a business

How is the business trading, past performance, future performance?

How secure or viable is the business?

How much does management take out of the business?

Techniques discussed include:

 Ratio Analysis

 Profitability

 Working Capital

 Liquidity

 Financial Structure

 Trend Analysis

 Normalising Financial Performance

 Identifying accounting treatment of various items including:

Use of  “off balance sheet” financing

 Depreciation

Intangible assets, e.g., goodwill, etc

 Asset valuations & revaluations

 Provisions

Current vs non-current assets/liabilities

Quantifying Damages – Misleading or Deceptive Conduct

This session is designed to give an overview on how to answer the following question:         What is the monetary sum required to return the applicants to the financial position they were in prior to the misleading or deceptive conduct.
This session will be based around a hypothetical case study.
The case study examines a franchisee’s position who relied on representations and acquired a start-up franchised business. The business failed and the franchisee incurred substantial losses.

Quantifying Economic Loss – Business Interruption

The aim of this session is to provide an understanding of the approach and components in quantifying the economic loss sustained as a result of business interruption.
This session assumes a general understanding of financial statement analysis as any quantification in this area is usually based on an analysis of historical performance.
The session will be based on a hypothetical case study. The hypothetical business had trading for a substantial period prior to a fire destroying part of the business premises. Following the fire the premises is rebuilt and business recommences.
Participants will be provided with an overview of:

Historical financial analysis

Examining the business environment at the time of the fire

Projected performance

Loss during business interruption

Ongoing loss once business recommenced

Business Valuation – Methodology and Process

The aim of this session is to provide participants with an understanding of the business valuation methodologies and the processes involved.
This is a practical session based around a hypothetical case study.
On completion, participants should have an understanding of the following:

Various valuation methodologies including:

Capitalisation of future maintainable earnings

Discounted cashflow

Capitalisation of dividend payout

Net asset valuation

Rules of thumb valuations

Super profits method

Concept of goodwill.

Factors to consider in valuing a business