FINANCIAL SESSIONS

15047. Advanced Financial Statement Analysis

Speaker DJ. Masson, Ph.D., CTP, Cert ICM

This session will outline a six-step process to be used in advanced financial analysis. The effective analysis of a set of financial statements begins with an understanding of (1) the economic characteristics and current conditions of a firm's businesses, and (2) the particular strategies the firm selects to compete in each of these businesses. It then moves to (3) assessing how well the firm's financial statements reflect the economic effects of the firm's decisions and actions. Next the analyst (4) assesses the profitability and risk of the firm in the recent past, using financial statements, ratios and other analytical tools, and then (5) forecasts its expected future profitability and risk. Finally, the analyst (6) values the firm using various valuation methods. This session will also discuss the basics of how financial accounting statements might not always provide a full and accurate picture of a company's financial health. The problems in analyzing financial statements range from legitimate adjustments within GAAP guidelines to more "creative accounting" methods that are designed to actively mislead investors or hide financial problems.

15055. Financial Statement Fraud: Where Have All the Assets Gone

Speaker: Bruce Dubinsky, DubinskyO Company, P.C.

In today's business world, making good credit decisions rests upon understanding all of the financial aspects of the debtor's business from the inside out. However, what do you do when you are faced with a company to whom you have already granted credit and whose financial picture appears to have changed almost overnight? Financial statement fraud is becoming more and more prevalent in the business world and therefore, detecting it is even more important. With the proliferation of computer bookkeeping software, it is very easy to create fraudulent financial statements in order to either gain credit in the first instance or avoid collection actions in the later. This session will look at how to spot financial statement fraud and most importantly, how to uncover clues that will help track assets that have been removed or concealed from the corporate books. In fraud detection, it's not what's on the page in front of you that's critical, it's what's not on the page.

15060. PFE (Potential Future Exposure) and CVAR (Credit Value-at-Risk) Analysis

Speaker: Jerry Dean, CCE, BP oil International Ltd.

Credit risk managers traditionally remain focused on current exposure measurement (i.e., current mark-to-market exposure, plus outstanding receivables) and collateral management. The problem with this focus is that it places excessive emphasis on the present and fails to provide an acceptable indication of credit risk at some point in the future. Because losses from credit risk take a relatively long time to evolve, a more useful measure of exposure is potential exposure. PFE is defined as maximum credit exposures to a given counterparty over a specified period of time calculated at some level of confidence. Credit VAR or CVAR tries to estimate the forward probability distribution of the value of an entire portfolio of accounts based on probability of default, recovery rates, etc. This session will discuss these concepts, their value and application to the credit risk process.

15062. Cash Is King

Speaker: Harvey Gotdstein, Singer Lewak Creenbaum & Coldstein LLP

Is forecasting the wave of the future? Companies spend thousands of dollars each year to find out where they have been. How much does your company spend to find out where they are going? What's more important?

In this session we'll discuss how to develop a financial plan that will answer the three most important questions facing each business. How much cash will you need? When will you need it? Where will you get it? Cash is King... the more the merrier.

15073. Financial Ratios

Speaker: Harvey Coldstein, Singer Lewak Creenbaum & Coldstein LLP

Financial statements: are they accounting nightmares or useful information? This session will help explain how to better understand financial ratios as well as how to use them to improve operations and how the financial community uses them to judge your company.

15084. Credit and Financial Analysis

Speaker: William Thomas, Microsoft

This session will cover important topics relating to credit and financial analysis including the application of the four C's of credit; definition and discussion of creditworthiness; performing non-financial analysis (voluntary trade groups, bank ratings, and credit reports); financial analysis (financial statements, ratios, trends, etc.); and decision procedures (findings and setting credit lines).

15096. Profitability Analysis

Speaker: Jerry Dean, CCE, BP oil International Ltd.

Profit is generally perceived by most people as being the appropriate barometer for measuring a firm's success. Such a view often fails to ascertain the Quality of Earnings or how a company could go broke while making a profit. One of the best tools to assess a firm's quality of earnings that breaks down the various profit components related to the ROE number is the DuPont Model. By using and understanding this model, you will see how the ROE number can be influenced by several financial decisions. Using the DuPont model, we will identify the component relationships of an ROE number and the overall effect of management decisions made on a firm's quality of earnings.

CERTIFICATE SESSIONS OFFERED AT THE CREDIT CONGRESS

We are pleased to offer two Certificate Sessions at this year's Credit Congress. Certificate Sessions are week-long courses available during the convention. These two courses are separate from the Credit Congress educational sessions and satisfy designation requirements. Participants must attend all five course segments (30 hours) of one of the two sessions being offered and must successfully complete the exam offered on the last day (Wednesday, June 13) to earn course equivalency. Certificate Session fees are not included in the Full Delegate Registration. An additional fee of $249 is required.

Intermediate Financial Analysis, Interpretation and Credit Risk Assessment

This intermediate course focuses on the comprehensive understanding of what's behind the numbers in financial reports. It gives equal weight to the process of financial reporting, the analysis and interpretation of financial statements and the steps required to write a quality credit line recommendation. It is designed for those preparing for the Credit Business Fellow (CBF) exam.

Instructor: George Schnupp, CCE, Anixter, Inc.

Business Credit Principles

This course is an intensive program that offers a comprehensive look at the credit function. Upon successful completion, you should understand the role of credit in financial management, the components of effective credit department systems and procedures, specific government regulations that pertain to business credit, credit and policy procedures, selling terms, negotiable instruments, the Uniform Commercial Code, credit investigations, financing and insurance, business credit fraud, factors associated with credit limits, out-of-court settlements and bankruptcy. Successful completion of this course satisfies a Credit Business Associate (CBA) course requirement.

Instructor:James Mdntyre. CCf, Mdntyre Enterprises. Ltd.