2024 CFA© Program Curriculum - Level Prerequisite Reading - Volume 3 - Financial Statement Analysis

✍ Scribed by CFA Institute

• Publisher: CFA Institute
• Year: 2024
• Tongue: English
• Leaves: 308
• Edition: 2024
• Category: Library

✦ Table of Contents

How to Use the CFA Program Curriculum
Errata
Financial Statement Analysis
Learning Module 1 Introduction to Financial Reporting
Introduction
The Objective of Financial Reporting
Accounting Standards Boards
Accounting Standards Boards
The International Financial Reporting Standards Framework
Qualitative Characteristics of Financial Reports
Constraints on Financial Reports
The Elements of Financial Statements
Underlying Assumptions in Financial Statements
Recognition of Financial Statement Elements
Measurement of Financial Statement Elements
Major Financial Statements
Financial Statements and Supplementary Information
Balance Sheet (Statement of Financial Position)
Statement of Comprehensive Income
Income Statement
Other Comprehensive Income
Statement of Changes in Equity and Cash Flow Statement
Cash Flow Statement
Summary
Practice Problems
Solutions
Learning Module 2 Income Statements
Introduction
Components and Format of the Income Statement
Revenue Recognition
General Principles
Accounting Standards for Revenue Recognition
Issues in Expense Recognition: Doubtful Accounts, Warranties
Doubtful Accounts
Warranties
Issues in Expense Recognition: Depreciation and Amortization
Non-Operating Items
Common-Size Analysis of the Income Statement
Common-Size Analysis of the Income Statement
Comprehensive Income
Summary
Practice Problems
Solutions
Learning Module 3 Balance Sheets
Introduction and Components of the Balance Sheet
Components and Format of the Balance Sheet
Balance Sheet Components
Current and Non-Current Classification
Liquidity-Based Presentation
Current Assets: Cash and Cash Equivalents, Marketable Securities and Trade Receivables
Current Assets
Current Liabilities
Non-Current Assets: Property, Plant and Equipment and Investment Property
Property, Plant, and Equipment
Investment Property
Non-Current Assets: Deferred Tax Assets
Components of Equity
Components of Equity
Statement of Changes in Equity
Summary
Practice Problems
Solutions
Learning Module 4 Cash Flow Statements
Introduction
Classification of Cash Flows and Non-Cash Activities
Cash Flow Statement: Direct and Indirect Methods for Reporting Cash Flow from Operating Activities
Cash Flow Statement: Indirect Method under IFRS
Cash Flow Statement: Direct Method under IFRS
Cash Flow Statement: Direct Method under US GAAP
Cash Flow Statement: Indirect Method under US GAAP
Summary
Practice Problems
Solutions
Learning Module 5 Inventories
Introduction
Cost of Inventories
Inventory Valuation Methods
Specific Identification
First-In, First-Out (FIFO)
Weighted Average Cost
Last-In, First-Out (LIFO)
Calculations of Cost of Sales, Gross Profit, and Ending Inventory
Periodic versus Perpetual Inventory Systems
Comparison of Inventory Valuation Methods
The LIFO Method and LIFO Reserve
LIFO Reserve
LIFO Liquidations
Inventory Method Changes
Inventory Adjustments
Evaluation of Inventory Management: Disclosures & Ratios
Presentation and Disclosure
Inventory Ratios
Illustrations of Inventory Analysis: Adjusting LIFO to FIFO
Illustrations of Inventory Analysis: Impacts of Writedowns
Summary
Practice Problems
Solutions
Learning Module 6 Long-Lived Assets
Introduction
Acquisition of Property, Plant and Equipment
Acquisition of Long-Lived Assets
Property, Plant, and Equipment
Depreciation of Long-Lived Assets: Methods and Calculation
Depreciation Methods and Calculation of Depreciation Expense
Amortisation of Long-Lived Assets: Methods and Calculation
The Revaluation Model
Investment Property
Summary
Practice Problems
Solutions
Learning Module 7 Income Taxes
Introduction
Determining the Tax Base of Assets and Liabilities
Determining the Tax Base of an Asset
Determining the Tax Base of a Liability
Changes in Income Tax Rates
Exceptions to the Usual Rules for Temporary Differences
Business Combinations and Deferred Taxes
Investments in Subsidiaries, Branches, Associates and Interests in Joint Ventures
Unused Tax Losses and Tax Credits
Recognition and Measurement of Current and Deferred Tax
Recognition of a Valuation Allowance
Recognition of Current and Deferred Tax Charged Directly to Equity
Summary
Practice Problems
Solutions
Learning Module 8 Non-Current (Long-Term) Liabilities
Introduction
Bonds Payable & Accounting for Bond Issuance
Accounting for Bond Issuance
Accounting for Bond Amortisation, Interest Expense, and Interest Payments
Accounting for Bonds at Fair Value
Derecognition of Debt
Summary
Practice Problems
Solutions
Learning Module 9 Applications of Financial Statement Analysis
Introduction & Evaluating Past Financial Performance
Application: Evaluating Past Financial Performance
Application: Projecting Future Financial Performance as an Input to Market Based Valuation
Projecting Performance: An Input to Market-Based Valuation
Projecting Multiple-Period Performance
Application: Assessing Credit Risk
Screening for Potential Equity Investments
Framework for Analyst Adjustments, Adjustments to Investments & Adjustments to Inventory
A Framework for Analyst Adjustments
Analyst Adjustments Related to Investments
Analyst Adjustments Related to Inventory
Adjustments Related to Property, Plant, and Equipment
Adjustments Related to Goodwill
Summary
References
Practice Problems
Solutions
Glossary