“Introduction to Financial Statement Analysis” is a Level I reading for the CFA Program. It covers the following learning outcomes.
a. describe the roles of financial reporting and financial statement
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;
c. describe the importance of financial statement notes and
supplementary information—including disclosures of
accounting policies, methods, and estimates—and management’s
d. describe the objective of audits of financial statements, the types
of audit reports, and the importance of effective internal controls;
e. identify and describe information sources that analysts use in
financial statement analysis besides annual financial statements
and supplementary information;
f. describe the steps in the financial statement analysis framework.