Understanding accounts
Many people are unable to read company accounts with any degree of confidence, and yet understanding accounts is essential for any manager.
Edit 515 simulations provide a complete set of business accounts after each decision period. These accounts follow closely the format and terminology recommended by the current International Financial Reporting Standards (IFRS).
This provides an excellent opportunity to learn (or be taught) the meaning of, and the relationships between, the Income statement, the Balance Sheet and the Cash Flow statement, and what a manager should consider when analysing the accounts.
In our simulations the criterion for success is usually a notional share price calculated by the model. This allows participants to understand the role of the share price in reflecting not only the company’s success to date, but also how well it is placed to face the future.