Ch 1 (IFSA) Learning Outcomes

Question 1

Discuss the roles of financial reporting and financial statement analysis.

Question 2

Discuss the roles of the key financial statements (income statement, balance sheet, cash flow statement, and statement of changes in owners’ equity) in evaluating a company’s performance and financial position.

Question 3

Discuss the importance of financial statement notes and supplementary information (including disclosures of accounting methods, estimates, and assumptions) and management’s discussion and analysis.

Question 4

Discuss the objective of audits of financial statements, the types of audit reports, and the importance of effective internal controls.

Question 5

Identify and explain information sources besides annual financial statements and supplementary information that analysts use in financial statement analysis

Question 6

Describe the steps in the financial statement analysis framework.