Introduction to Financial Statement Analysis
Free CFA Level I lesson in Financial Statement Analysis. 14 min read, ~2,084 words.
Six steps: purpose, collect, process, analyze, conclude, follow up. The first and last frame the work. Notes and MD&A often carry more decision-relevant information than the primary statements. Audit ladder: unqualified (clean), qualified (one issue), adverse (misleading), disclaimer (no opinion). IFRS is principles-based and prohibits LIFO. US GAAP is more...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- introduction to FSA
- analyzing income statements
- analyzing balance sheets
- analyzing cash flows I
- analyzing cash flows II
- analysis of inventories
- analysis of long-term assets
- long-term liabilities and equity
- analysis of income taxes
- financial reporting quality
- financial analysis techniques
- introduction to financial statement modeling
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