Learning Outcome Statements

1. The Roles of Financial Reporting and Financial Statement Analysis

a. describe the roles of financial reporting and financial statement analysis;

2. Major Financial Statements

b. describe the roles of the statement of financial position, statement of comprehensive income, statement of changes in equity, and statement of cash flows in evaluating a company's performance and financial position;

3. Other Financial Information Sources

c. describe the importance of financial statement notes and supplementary information - including disclosures of accounting policies, methods and estimates - and management's commentary;

e. identify and describe information sources that analysts use in financial statement analysis besides annual financial statements and supplementary information;

4. Auditor's Reports

d. describe the objective of audits of financial statements, the types of audit reports, and the importance of effective internal controls;

5. Financial Statement Analysis Framework

f. describe the steps in the financial statement analysis framework.