The five interconnected reports that summarise a company's financial position and performance. Session 2

Statement of financial position at a point in time: Assets = Liabilities + Equity. Session 2

The P&L: Revenue − Expenses = Profit / Loss over a period. Session 2

Reconciles profit to cash, split into operating, investing, and financing activities. Session 2

Statement of how owners' stake changed over the period (issuance, dividends, retained earnings). Session 2

Every transaction touches at least two accounts so that total debits = total credits. Session 2

Record revenues and expenses when the economic event occurs, not when cash moves. Session 2

Match expenses to the revenue they help generate in the same period. Session 2

Spreading the cost of a long-lived asset over its useful life. Session 2

Period-end adjustments aligning revenues and expenses to the correct period. Session 2

Cut-off asset: cash paid in advance of consuming the benefit. Session 2

Cut-off asset: income earned but cash received late. In revenue recognition, the contract asset — a conditional right to consideration. Session 2

Cut-off liability: expense incurred but cash paid late. Session 2

Cut-off liability: cash received early, before the good/service is delivered. Session 2

The mix of liabilities and equity funding the company. Session 3

A high-debt capital structure; raises both financial risk and the Tax Shield benefit. Session 3

Ordinary shares carrying voting, dividend, and dissolution rights. Session 3

Shares with negotiated preferences (e.g. liquidation, dividends) over Common Stock. Session 3

Simple Agreement for Future Equity — an early-stage instrument converting to equity at a later priced round. Session 3

The company's value before a new investment. Session 3

The company's value immediately after a new investment (pre-money + amount raised). Session 3

The tax saving from deducting interest expense against taxable profit. Session 3

Debt that may convert into equity under agreed terms. Session 3

Issuing securities to investors in exchange for cash. Session 4

The private contract governing a capital raise. Session 4

Preferred shareholders' right to be paid first in an exit. Session 4

Protection that adjusts the preferred-share conversion ratio in a down round. Session 4

Initial Public Offering — the first sale of shares to the public. Session 4

Tax paid by a corporation on its profits. Session 4

Rules governing the prices charged between related entities. Session 4

US tax on the low-taxed foreign income of US-owned multinationals. Session 4

US tax incentive for keeping IP in the US and selling internationally. Session 4

All cash compensation — salary, bonus, vacation, severance, pension. Session 4

The right (not obligation) to buy company shares at a fixed exercise price. Session 4

Gradual earning of the right to exercise options (or receive shares) over time. Session 4

A mathematical model for valuing options. Session 4

Restricted Stock Unit — shares granted after Vesting, with no exercise price. Session 4

Israeli tax law governing the taxation of employee stock options. Session 4

Year-on-year comparison of a company's performance. Session 5

Expressing each line as a % of revenue to compare across companies/periods. Session 5

Standardised financial ratios for comparing efficiency and health. Session 5

Current assets ÷ current liabilities — short-term liquidity. Session 5

Liquid assets only ÷ current liabilities — a stricter liquidity test. Session 5

Current assets minus current liabilities — the absolute liquidity buffer. Session 5

Gross profit ÷ revenue — core operational efficiency. Session 5

Earnings before interest, taxes, depreciation and amortization. Session 5

Net income ÷ average total assets — asset efficiency. Session 5

Net income ÷ average equity — return to shareholders. Session 5

EBIT ÷ capital employed; must exceed WACC to create value. Session 5

SaaS health metric: revenue growth % + EBITDA margin % ≥ 40. Session 5

Monthly Recurring Revenue — total predictable monthly subscription revenue. Session 5

Net Revenue Retention — revenue retained/expanded from existing customers. Session 5

Revenue lost from cancellations as a % of total MRR. Session 5

Customer Acquisition Cost — total sales & marketing spend per new customer. Session 5

Lifetime Value — total revenue expected from a customer over their lifetime. Session 5

Discounted Cash Flow — projects future cash flows and discounts them to NPV. Session 5

A quantitative plan for a period expressing expected outputs, inputs, and resources. Session 6

A system of predetermined cost targets (price standard × quantity standard). Session 6

Decomposing the gap between standard and actual costs. Session 6

The portion of cost variance from paying more/less per unit than standard. Session 6

The portion of cost variance from using more/less than the standard quantity. Session 6

Overhead price variance — actual overhead prices differ from forecast. Session 6

Overhead quantity variance — actual output differs from forecast. Session 6

Organisational units with defined financial accountability. Session 6

A unit whose manager is accountable for revenue only. Session 6

A unit whose manager is accountable for costs only. Session 6

A unit whose manager is accountable for both revenue and costs. Session 6

A unit whose manager is accountable for investments and ROA. Session 6

A transaction where an acquiror obtains control over an acquiree; requires full Consolidation. Session 7

< 20% ownership — recorded at cost, then fair value through P&L. Session 7

20–50% ownership — accounted under the Equity Method. Session 7

Share of the associate's profit is added to the investment; dividends reduce it. Session 7

The only permitted method for business combinations under IFRS 3. Session 7

Residual of consideration + NCI fair value minus net identifiable assets at fair value. Session 7

PPA — allocating the consideration to specific assets/liabilities at Fair Value. Session 7

Minority shareholders' stake, shown separately in consolidated equity. Session 7

Combining 100% of a subsidiary's statements with the parent's; NCI splits income/equity. Session 7

The measurement basis for all assets/liabilities at the acquisition date. Session 7

The accounting process deciding when and how much revenue is recorded. Session 8

The US GAAP converged revenue standard (5-step model). Session 8

The international converged revenue standard (5-step model). Session 8

A promise to transfer a distinct good or service. Session 8

The consideration the entity expects to be entitled to. Session 8

Discounts/bonuses/concessions, estimated and constrained. Session 8

SSP — the basis for allocating the transaction price across obligations. Session 8

The recognition trigger — point-in-time vs over-time. Session 8

A liability — cash received before delivery. Session 8

An unconditional right to consideration (billed, awaiting only the passage of time) — distinct from a contract asset and from Deferred Revenue. Session 8

A capitalization table of shareholders, share classes, shares, and ownership %. Session 9

APIC — equity paid in above par value. Session 9

Operating cash flow minus capex — the basis of a DCF Model. Session 9

The value of all cash flows beyond the explicit forecast horizon. Session 9

Weighted average cost of capital — the DCF discount rate. Session 9

The discounted sum of future cash flows — the DCF output. Session 9