Financial Statement Analysis: Study Session 10
Study Session Materials
New Readings from the 2008 CFA Program
Topic Overview
Techniques, Applications, and International Standards Convergence
The readings in this study session discuss financial analysis techniques, financial statement analysis applications, and the international convergence of accounting standards.
The first reading presents the most frequently used tools and techniques
used to evaluate companies, including common size analysis,
cross-sectional analysis, trend analysis, and ratio analysis. The second
reading then shows the application of financial analysis techniques to
major analyst tasks including the evaluation of past and future financial
performance, credit risk, and the screening of potential equity
investments. The reading also discusses analyst adjustments to reported
financials. Such adjustments are often needed to put companies’ reported
results on a comparable basis.
This study session concludes with a reading on convergence of international and U.S. accounting standards. Although there has been much progress in harmonizing accounting standards globally, as this reading discusses, there are still significant variations between generally accepted accounting principles from one country to another.
View learning outcome statements (LOS) for reading objectives.
New Readings from the 2008 CFA Program
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"Financial Analysis Techniques"
Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and Michael A. Broihahn (CFA Institute, 2007) |
View LOS |
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"Financial Statement Analysis:
Applications" Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and Michael A. Broihahn (CFA Institute, 2007) |
View LOS |
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"International Standards Convergence" Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and Michael A. Broihahn (CFA Institute, 2007) |
View LOS |