Reading Financial Statements

Overview

This course examines the rise and collapse of First Brands Group to explore fraud risks embedded in modern private credit and nontraditional lending markets. Through a detailed case study, participants will analyze how aggressive leverage, complex financing structures, and weak internal controls contributed to a multibillion-dollar failure. The course highlights key issues such as receivables factoring fraud, off-balance-sheet financing, and the limitations of due diligence in opaque financial environments. Participants will gain practical insights into identifying red flags, evaluating financial structures, and understanding how systemic risk can develop within evolving credit markets. Recorded November 2025.

Highlights

• Learn the contents of an annual report.
• Understand a company's operations and business strategy.
• Realize the many risk factors a company must navigate.
• Analyze company financial statements, as well as its different business segments.
• Read and comprehend the Management Discussion & Analysis (MD&A) section.
• Review the notes to the financial statements for additional detail.

Objectives

• Successfully navigate through an annual report and
• Recognize its various components.
• Understand complex financial statement concepts like deferred taxes and goodwill.
• Read and interpret the notes to the financial statements.

Preparation

Attendees should have a basic understanding of accounting fundamentals and reading financial statements.

Notice

This is a self-study/on demand course offered by a 3rd party vendor and will NOT be accessible in the My Upcoming CPE section of the ISCPA website. Course access information will be emailed directly to you by CalCPA. The course expires one year from the purchase date. Format = Online Self-Study.