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Basic Question 1 of 4
To help analyze financial statements for diversified companies, which of the following does FASB require to be reported separately for each segment?
II. Certain revenue and expense items
III. Assets
I. Profit or loss
II. Certain revenue and expense items
III. Assets
User Contributed Comments 3
| User | Comment |
|---|---|
| copus | It appears that Wall Street is pretty lazy when it comes to analyzing diversified companies. A good example is Warren Buffett´s Berkshire Hathaway (probabely the most diversified company in the world with interest in candy, furniture, newspapers, soft drinks, jewelry, insurance, reinsurance, timeshare for executive jets inter alia). The last time I looked, the number of analysts covering the stock was aahh....errr....zero! I am sure that this comment will have a net assistance coefficient for the exam of exactly zero as well! |
| DS12 | Where did you read that no analysts are covering Berkshire. Im not saying you're wrong, it just seems like an interesting statement. |
| Kobe8kenji | My Prof once mentioned that it is extremely difficult to accurately analyse a diversified company. It is also extremely tedious as well. No analyst will dare to risk their reputation/credibility analyzing it. |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
calculate and interpret ratios used in equity analysis and credit analysis;
explain the requirements for segment reporting and calculate and interpret segment ratios;
CFA® 2024 Level I Curriculum, Volume 3, Module 21.