Learning Objectives
By the end of this module, you will be able to:
Understand Core Accounting Principles
Learn key accounting such as accounting equation, double-entry system.
Recognise how standards such as AASB and IFRS guide financial reporting.
Use these accounting principles to assess a business’s profitability, liquidity, and solvency and overall creditworthiness.
Understand Financial Reports and Business Structures
Distinguish between legal entities, accounting entities, and reporting periods.
Understand how different reporting frameworks can affect your financial comparisons and analytical reliability.
Evaluate Ownership Type and Financial Implications
Compare the lending risks and benefits of structures like sole traders, partnerships, trusts, and companies.
Assess how ownership structures influence liability, loan repayments capacity, and security availability.
Apply Accounting Standards to Financial Statements
Apply key standards such as AASB 16 (Leases) and IFRS 15 (Revenue) to assess lease liabilities, revenue risks, and off-balance sheet exposures.
Interpret financial statements and notes to the accounts to identify covenant issues and potential red flags.
Use Accounting Insights to Make Better Lending Decisions
Use accounting insights to recommend appropriate financial covenants, loan structures, and risk mitigants.
Make informed recommendations that support sound credit decisions and promote portfolio health.
