“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
analysis;
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
commentary;
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.