Financial Statement Analysis: Study Session 7
Study Session Materials
New Readings from the 2008 CFA Program
Topic Overview
Financial Statement Analysis: An Introduction
The readings in this study session discuss the general principles of the
financial reporting system, underscoring the critical role of the
analysis of financial reports in investment decision making.
The first reading introduces the range of information that an analyst may use in analyzing the financial performance of a company, including the principal financial statements (the income statement, balance sheet, cash flow statement, and statement of changes in owners’ equity), notes to those statements, and management discussion and analysis of results. A general framework for addressing most financial statement analysis tasks is also presented.
A company’s financial statements are the end-products of a process for
recording the business transactions of the company. The second reading
illustrates this process, introducing such basic concepts as the
accounting equation and accounting accruals.
The presentation of financial information to the public by a company must conform to the governing set of financial reporting standards applying in the jurisdiction in which the information is released. The final reading in this study explores the role of financial reporting standard-setting bodies worldwide and the International Financial Reporting Standards framework promulgated by one key body, the International Accounting Standards Board. The movement towards worldwide convergence of financial reporting standards is also introduced.
View learning outcome statements (LOS) for reading objectives.
New Readings from the 2008 CFA Program
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"Financial Statement Analysis: An
Introduction" Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and Michael A. Broihahn (CFA Institute, 2007) |
View LOS |
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"Financial Reporting Mechanics" Thomas R. Robinson, Hennie van Greuning, Karen O'Connor Rubsam, Elaine Henry, and Michael A. Broihahn (CFA Institute, 2007) |
View LOS |
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"Financial Reporting Standards" Thomas R. Robinson, Hennie van Greuning, Karen O'Connor Rubsam, Elaine Henry, and Michael A. Broihahn (CFA Institute, 2007) |
View LOS |