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

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