Financial Reporting and Analysis by CFA InstituteAs one of the largest sections of the exam, you will want to be familiar with the FRA formula sheet information, as many of the questions will involve giving you a snippet of information from a financial statement and asking you to calculate a specific value from that. Knowing which data points go into specific formulas will be necessary to get a good score here. These statements are prepared according to specific standards based on where the company is located. These notes include important information about risks the company faces, estimates used in preparing the financial statements, and performance of specific business units within the company. The curriculum specifies a 6 step framework for financial statement analysis, which goes as follows:. The purpose of having standards for the preparation of financial statements is to provide consistency between different companies. As an analyst, you would be expected to utilize information from financial statements to influence investment decisions, and having standards to which these statements must conform makes it easier to compare widely different companies.
CFA Level I Financial Reporting Analysis in 9 minutes
Summary: CFA LEVEL 1 - FINANCIAL REPORTING & ANALYSIS
Goodreads helps you keep track of books you want to read. Want to Read saving…. Want to Read Currently Reading Read. Other editions. Enlarge cover.
The best study guides
Revenue recognition Revenue is recognized when earned and expenses are recognized when incurred. Expense recognition is based on the matching principle expenses to generate revenue are recognized in the same period as the revenue. Discontinued operation Barter transactions is one that management has decided to dispose off but has not yet done so. IMP Unusual or infrequent items either unusual in nature or infrequent in occurrence, but not both These are included in income from continuing operations and are reported before tax. Change in accounting principle prior-period financial statements are restated to reflect the change. Dilutive securities are stock options, warrants, convertible debt convertible preferred stock that would decrease EPS if exercised or converted to common stock. Available for Sale 1.
What do you want to do? Add to cart. Add to wishlist. Hope this can help you. Please note that this does not guarantee for your pass, which requires dedication, hardwork and consistency. Last document update: 3 months ago.