Chapter 1: Introduction to Financial Statement Analysis

In this section

• The Role of Financial Reporting and Analysis
  The Role of Financial Reporting and Analysis (CFA Level 1): Importance of Financial Reporting, Communicating Financial Health, and Enhancing Transparency. Key definitions, formulas, and exam tips.
• The Financial Statement Analysis Framework
  The Financial Statement Analysis Framework (CFA Level 1): Purpose and Context, Collecting Data, and Processing the Data. Key definitions, formulas, and exam tips.
• Regulatory Filings, Notes, and Auditor’s Reports
  Regulatory Filings, Notes, and Auditor’s Reports (CFA Level 1): Major Regulatory Filings, Importance in Financial Statement Analysis, and Notes to the Financial Statements. Key definitions, formulas, and exam tips.
• IFRS vs. US GAAP and Monitoring Developments in Reporting Standards
  IFRS vs. US GAAP and Monitoring Developments in Reporting Standards (CFA Level 1): Principle-Based vs. Rules-Based Approach, Key Differences Affecting Financial Analysis, and Revenue Recognition. Key definitions, formulas, and exam tips.
• Sources of Information for Analysis
  Sources of Information for Analysis (CFA Level 1): Key Public Filings: Annual and Interim Reports, Press Releases and Investor Presentations, and Industry Reports and Economic Data. Key definitions, formulas, and exam tips.
• Qualitative Characteristics of Financial Statements
  Qualitative Characteristics of Financial Statements (CFA Level 1): Relevance, Faithful Representation, and Comparability. Key definitions, formulas, and exam tips.
• Limitations and Challenges in Financial Statement Analysis
  Limitations and Challenges in Financial Statement Analysis (CFA Level 1): Historical Focus, Impact of Estimates and Judgment, and Omission of Non-Financial Factors. Key definitions, formulas, and exam tips.
• Segment Reporting Requirements
  Segment Reporting Requirements (CFA Level 1): Segment Reporting: A Practical Exploration, Why Segment Reporting Matters, and Definition of an Operating Segment. Key definitions, formulas, and exam tips.
• Subsequent Events and Their Implications
  Subsequent Events and Their Implications (CFA Level 1): Definition of Subsequent Events, Categories of Subsequent Events, and Adjusting Events. Key definitions, formulas, and exam tips.
• XBRL and Digital Reporting Requirements
  XBRL and Digital Reporting Requirements (CFA Level 1): Defining XBRL and Its Growing Importance, Key Concepts and Terminology, and Regulatory Landscape and Global Adoption. Key definitions, formulas, and exam tips.
• Critical Audit Matters and Auditor Communication
  Critical Audit Matters and Auditor Communication (CFA Level 1): Defining Critical Audit Matters, Broader Spectrum of Auditor Communication, and Why CAMs Matter for Analysts. Key definitions, formulas, and exam tips.
• Interim Reporting (IAS 34, US GAAP) and First-Time Adoption (IFRS 1)
  Interim Reporting (IAS 34, US GAAP) and First-Time Adoption (IFRS 1) (CFA Level 1): Purpose of Interim Financial Statements and Interim Reporting Under IAS 34. Key definitions, formulas, and exam tips.
• Data Analytics for Financial Disclosures
  Data Analytics for Financial Disclosures (CFA Level 1): Big Data and Textual Analysis, Structured vs. Unstructured Data, and Real-Time Surveillance. Key definitions, formulas, and exam tips.
• Seasonality in Interim Disclosures
  Seasonality in Interim Disclosures (CFA Level 1): Key Concepts and Terminology, Practical Implications for Analysts, and 1) Comparability. Key definitions, formulas, and exam tips.
• Illustrative Example of IFRS 1 Adjustments
  Illustrative Example of IFRS 1 Adjustments (CFA Level 1): Transition Reconciliation Under IFRS 1, Common IFRS 1 Adjustments, and Optional Exemptions. Key definitions, formulas, and exam tips.