Learning Outcome Statements

1. Components and Format of the Income Statement

a. describe the components of the income statement and alternative presentation formats of that statement;

2. Revenue Recognition

b. describe general principles of revenue recognition and accrual accounting, specific revenue recognition applications (including accounting for long-term contracts, installment sales, barter transactions, gross and net reporting of revenue), and implications of revenue recognition principles for financial analysis;

c. calculate revenue given information that might influence the choice of revenue recognition method;

3. Revenue Recognition in Special Cases

b. describe general principles of revenue recognition and accrual accounting, specific revenue recognition applications (including accounting for long-term contracts, installment sales, barter transactions, gross and net reporting of revenue), and implications of revenue recognition principles for financial analysis;

c. calculate revenue given information that might influence the choice of revenue recognition method;

4. Revenue Recognition Accounting Standards Issued May 2014

d. describe key aspects of the converged accounting standards for revenue recognition issued by the International Accounting Standards Board and Financial Accounting Standards Board in May 2014;

5. Expense Recognition

e. describe general principles of expense recognition, specific expense recognition applications, and implications of expense recognition choices for financial analysis;

6. Non-Recurring Items and Non-Operating Items

f. describe the financial reporting treatment and analysis of non-recurring items (including discontinued operations, extraordinary items, unusual or infrequent items) and changes in accounting standards;

g. distinguish between the operating and non-operating components of the income statement;

7. Earnings per Share

h. describe how earnings per share is calculated and calculate and interpret a company's earnings per share (both basic and diluted earnings per share) for both simple and complex capital structures;

i. distinguish between dilutive and antidilutive securities and describe the implications of each for the earnings per share calculation;

8. Analysis of the Income Statement

j. convert income statements to common-size income statements;

k. evaluate a company's financial performance using common-size income statements and financial ratios based on the income statement;

9. Comprehensive Income

l. describe, calculate, and interpret comprehensive income;

m. describe other comprehensive income and identify major types of items included in it.