Analyzing Balance Sheets

Free CFA Level I lesson in Financial Statement Analysis. 15 min read, ~2,273 words.

Purchased intangibles capitalize at cost. Internally generated intangibles are expensed under US GAAP. IFRS capitalizes development costs once PIRATE (technical and commercial feasibility) is met. Finite-life intangibles amortize and impair. Indefinite-life intangibles and goodwill are impairment-tested only. Goodwill is never amortized and its impairment is irreversible under US GAAP and...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• analyzing balance sheets

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