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In this course, you will :
- Classify the various financial statement elements (assets, liabilities, equity, revenue, and expenses)..
- Understand the basic and expanded accounting equations..
- Understand the roles of standard setting bodies and regulatory authorities..
- Be familiar with the IFRS Framework, and also identify the key differences between IFRS and US GAAP..
- Calculate depreciation, COGS, inventory under different cost flow assumptions, basic and diluted EPS..
- Distinguish between operating and non-operating items..
- Understand the various balance sheet accounts, how they are valued, and what they represent..
- Calculate financial ratios and make inferences through the ratios..
- Construct a cash flow statement, by either the direct or indirect method..
- Distinguish between operating, investing, and financing cash flows..
- Apply various tools and techniques used in financial analysis..
- Use the DuPont formulas to decompose ROE into its components to interpret a firm's profit drivers..
- Distinguish between the different cost flow methods: LIFO, FIFO, and weighted average cost..
- Calculate COGS, ending inventory, and gross profit under the different cost flow methods..
- Distinguish between capitalisation and immediate expensing of various costs..
- Determine if an asset is impaired, and the methods to revalue an asset..
- Distinguish between taxes payable and income tax expense..
- Understand the circumstances that lead to deferred taxes, calculate and make adjustments to deferred taxes..
- Calculate the book value of a bond and the interest expense using the effective interest rate method..
- Distinguish between operating lease and finance lease..
- Understand how accounting methods and estimates can affect reported earnings, financial position, and classification of cash flows..
- Be aware of warning signs of earnings manipulation..
- Apply analytic methods to forecast future earnings and cash flows..
- Understand the common types of adjustments to financial statements for comparability purposes
Syllabus :
- Financial Statement Analysis: An Introduction
- Financial Reporting Mechanics (removed from 2019 exam onwards)
- Financial Reporting Standards
- Understanding Income Statements
- Understanding Balance Sheets
- Understanding Cash Flow Statements
- Financial Analysis Techniques
- Inventories
- Long-Lived Assets
- Income Taxes
- Non-Current Liabilities
- Financial Reporting Quality
- Financial Statement Analysis – Applications
