- CFA Exams
- Dec. 2020 Level 1
- Study Session 6. Financial Reporting and Analysis I
- Reading 19. Introduction to Financial Statement Analysis
Reading 19. Introduction to Financial Statement Analysis
Learning Outcome Statements
| Reading 19. Introduction to Financial Statement Analysis | |
|---|---|
| 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. |