Chapter 3: Analyzing Balance Sheets

In this section

• Balance Sheet Presentation and Classification
  Balance Sheet Presentation and Classification (CFA Level 1): Structure of a Classified Balance Sheet, Current Assets, and Noncurrent Assets. Key definitions, formulas, and exam tips.
• Intangible Assets and Goodwill
  Intangible Assets and Goodwill (CFA Level 1): Defining Intangible Assets, Internally Developed vs. Purchased Intangibles, and Internally Developed Intangibles. Key definitions, formulas, and exam tips.
• Financial Instruments and Fair Value Disclosures
  Financial Instruments and Fair Value Disclosures (CFA Level 1): Understanding Financial Instruments, Classification and Measurement, and Amortized Cost. Key definitions, formulas, and exam tips.
• Noncurrent Liabilities
  Noncurrent Liabilities (CFA Level 1): Key Components of Noncurrent Liabilities, Long-Term Debt, and Carrying Value and Amortization. Key definitions, formulas, and exam tips.
• Common-Size Balance Sheets and Solvency Ratios
  Common-Size Balance Sheets and Solvency Ratios (CFA Level 1): Understanding the Power of Common-Size Balance Sheets and Why Common-Size Analysis Matters. Key definitions, formulas, and exam tips.
• Other Comprehensive Income and Equity Section Implications
  Other Comprehensive Income and Equity Section Implications (CFA Level 1): Typical Items in OCI, Presentation and Format, and IFRS vs. US GAAP Treatment. Key definitions, formulas, and exam tips.
• Assets Held for Sale and Discontinued Operations
  Assets Held for Sale and Discontinued Operations (CFA Level 1): IFRS 5 and ASC 205-20 Basics, Criteria for Classification as Held for Sale, and Measurement at the Lower of Carrying Amount or. Key definitions, formulas, and exam tips.
• Biological Assets and Government Grants
  Biological Assets and Government Grants (CFA Level 1): IFRS Approach to Biological Assets, Defining Biological Assets, and Fair Value Measurement and Impact on Earnings. Key definitions, formulas, and exam tips.
• Contingent Liabilities and Provisions
  Contingent Liabilities and Provisions (CFA Level 1): Key Definitions, Recognition Criteria, and Measurement Approaches. Key definitions, formulas, and exam tips.
• Implications of High-Inflation Environments on Balance Sheet Items
  Implications of High-Inflation Environments on Balance Sheet Items (CFA Level 1): Understanding High-Inflation and Hyperinflation and IFRS Fundamentals: IAS 29 Restatement. Key definitions, formulas, and exam tips.
• Fair Value Hierarchy under IFRS 13 and ASC 820
  Fair Value Hierarchy under IFRS 13 and ASC 820 (CFA Level 1): Why Fair Value Matters, Three-Level Fair Value Hierarchy, and Visualizing the Fair Value Hierarchy. Key definitions, formulas, and exam tips.
• Examples of Fair Value Measurement (Levels 1, 2, 3)
  Examples of Fair Value Measurement (Levels 1, 2, 3) (CFA Level 1): Level 1: Fair Value from Quoted Market Prices and Level 2: Valuation Using Observable Inputs (Other Than. Key definitions, formulas, and exam tips.