How to Understand & Analyze Financial Statements for Attorneys, April 20


The ability to understand and analyze financial information is essential in all areas of legal practice.  In these unstable economic times, it has become more important than ever for accounting misstatements and corporate financial manipulations to be understood and avoided.

This basic-to-intermediate level seminar will show you easily adaptable techniques for reading a balance sheet, income statement and statement of cash flows, helping you communicate more effectively with financial and business professionals as well as identify vital financial and legal issues significant to you and your client.


Your Role as an Attorney:

Ethical, Considerations Relating to Financial Statements

Basic Concepts Underlying Financial Reporting
* Generally accepted accounting principles (GAAP) and non-GAAP accounting
* Levels of assurance provided in a financial statement
* Net income vs. cash flow
* Depreciable assets
* Capitalizing vs. expensing
* Inventory

* Other fundamental concepts

The Financial Statements
* Accountants’ Report
* Balance Sheet
* Statement of Cash Flows

* Notes to the Financial Statement

Basic Financial Statement Analysis
* Short-term Liquidity
* Long-term Solvency and Planning
* Profitability
* Return on Investment

* Commonly Used Ratios

Common Manipulative Techniques
* How a financial statement can follow the rules and still be deceptive
* Circumstances where you are most at risk of being misled
* Tactics to protect yourself, clients and your firm


Douglas R. Smith, CPA

Adjunct Instructor, Sierra Nevada College, Incline Village, NV

Thomas D. Perkins
Attorney, Indianapolis


6 CLE / .5 E – Wednesday, April 20
9:00 A.M. – 4:30 P.M.

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