This lesson introduces the core principles of corporate finance that underpin treasury decision-making .

6.1 Financial Accounting and Reporting
A treasury professional must understand and interpret the key financial statements: the balance sheet, income statement, and cash flow statement . Financial ratio analysis is a core skill for assessing the financial health and performance of the organisation . The syllabus covers “financial ratio analysis and financial profiling” as a foundational competency .

6.2 Shareholder Value Management
Treasury plays a key role in supporting the creation of sustainable shareholder value. This involves understanding measures of shareholder value such as Total Shareholder Returns (TSR) and Economic Value Added (EVA) .

6.3 Governance and Ethics
Strong corporate governance is vital for protecting the organisation from fraudulent or unethical activities . This includes adhering to codes of conduct and implementing robust internal controls.