The British Academy for Training and Development offers this training program in “Accounting for Inventory Matters, Reconciliations, and the Preparation of Financial Statements”, with the aim of providing participants with precise practical knowledge of accounting inventory procedures in their various forms, the mechanisms for performing different accounting reconciliations, and a comprehensive understanding of how to prepare financial statements in accordance with approved standards.

Inventory and reconciliation processes are among the most critical accounting stages that directly affect the fairness and accuracy of financial reports. They are considered fundamental pillars upon which management relies in making operational and financial decisions. In this context, the program focuses on clarifying the accounting procedures related to inventory counts of stock, assets, liabilities, and equity, as well as how to address identified variances through accounting adjusting entries in accordance with applicable principles and standards.

Who Should Attend?

• Financial accountants and assistant accountants in public and private organizations.

• Financial managers and financial controllers.

• Employees of accounting firms and tax and audit consultancies.

• Graduates of accounting-related disciplines seeking to develop their professional competencies.

Knowledge and Benefits:

After completing the program, participants will be able to master the following:

• Understand the mechanisms of periodic and perpetual inventory accounting systems.

• Identify the types of inventory-related adjustments and their accurate accounting treatment.

• Prepare adjusting entries related to expenses, revenues, and inventory.

• Understand the components of financial statements and how to prepare and analyze them in accordance with accounting principles.

• Enhance their ability to detect accounting errors resulting from inventory processes and address them appropriately.

• Introduction to Accounting Inventory

  • Concept of accounting inventory and its importance in the accounting cycle

  • Differences between periodic and perpetual inventory systems

  • Accounting systems used in inventory operations

• Types of Accounting Inventory

  • Physical inventory of stock and its classifications

  • Accounting inventory of fixed assets

  • Cash inventory and bank account reconciliations

• Periodic Inventory System

  • Advantages and disadvantages of the periodic inventory system

  • Practical procedures for conducting periodic inventory

  • Recording accounting entries under the periodic inventory system

• Perpetual Inventory System

  • Characteristics of the perpetual inventory system and its applications

  • Relationship between the perpetual inventory system and internal control

  • Recording real-time accounting transactions under the perpetual system

• Inventory Adjustments: Concept and Types

  • Concept and accounting objectives of inventory adjustments

  • Types of adjustments: revenues, expenses, and provisions

  • Timing of adjustments and their impact on financial statements

• Revenue and Expense Adjustments

  • Accounting treatment of accrued and deferred revenues

  • Adjustments for prepaid and accrued expenses

  • Practical examples of adjusting journal entries

• Inventory and Asset Adjustments

  • Reconciling differences between physical and book inventory

  • Inventory valuation methods (FIFO, LIFO, Weighted Average)

  • Adjustments for inventory impairment

• Adjustments Related to Fixed Assets

  • Depreciation calculation and capitalization adjustments

  • Revaluation of fixed assets and treatment of revaluation differences

  • Accounting for disposal of fixed assets

• Adjustments Related to Liabilities

  • Accounting treatment of short-term and long-term liabilities

  • Adjustments for accrued and payable interest

  • Adjusting entries for loans and provisions

• Adjustments Related to Equity

  • Accounting treatment of retained earnings distributions

  • Impact of adjustments on capital

  • Journal entries for capital increases or reductions

• Introduction to Financial Statement Preparation

  • Definition of main financial statements

  • Objectives of financial statement preparation

  • Accounting standards affecting financial statement preparation

• Core Components of Financial Statements

  • Statement of Financial Position: assets, liabilities, and equity

  • Income Statement: revenues, expenses, and net profit

  • Cash Flow Statement: operating, investing, and financing activities

• Practical Preparation of Financial Statements

  • Preparing the statement of financial position after adjustments

  • Preparing the income statement and linking it to adjusting entries

  • Preparing the statement of changes in equity

• Financial Statement Analysis

  • Liquidity and profitability indicators

  • Financial ratios and financial analysis tools

  • Comparative financial performance analysis across periods

• Linking Inventory to Financial Reporting

  • Relationship between inventory results and financial statement preparation

  • Impact of inventory adjustments on the accuracy of financial information

  • Key considerations when closing the financial year

• Accounting Skills After Inventory and Adjustments

  • Reviewing and auditing adjusting entries

  • Preparing supporting accounting reports

  • Coordination with external auditors