About This Chapter
Overview of Financial Reporting & Analysis - Chapter Summary
Follow along with our expert instructors to review the basics of financial reporting and analysis. This chapter contains short and simple lessons that examine financial reporting, statement and ratio analysis concepts. You'll also take a look at financial reporting standards, standards for comparison and issues regarding the analysis of financial statements. By the end of the chapter, you should be equipped to:
- Understand the purpose of financial reporting and statement analysis
- Recognize International Financial Reporting Standards (IFRS)
- Differentiate between IFRS and GAAP
- Outline the financial statement analysis standards for comparison
- Define financial ratio analysis
- Explain several issues concerning financial statement analysis
You can work through the chapter at your own pace using any computer or mobile device. These lessons use a simplified instructional style, and they highlight the most important financial reporting and analysis terms. Be sure to take the accompanying self-assessment quizzes to reinforce your understanding of the material. Our instructors are available to answer your questions, and you can access the chapter material at any time of day or night.
1. What Is Financial Reporting? - Purpose, Statement Examples & Analysis
Financial reporting is a vital part of corporate governance. In this lesson, you'll learn what financial reporting is, its primary components, its purpose, and be provided with some examples. A short quiz follows the lesson.
2. International Financial Reporting Standards (IFRS)
The International Financial Reporting Standards (IFRS) provide guidance for preparing financial statements globally. This lesson will define the IFRS, outline its goals and objectives, and discuss the advantages and disadvantages of a single set of global accounting standards.
3. Differences Between GAAP & IFRS
We live in an interconnected world, and doing business globally has become nearly commonplace. This impacts financial reporting and accounting standards. In this lesson, we'll cover differences between the US and International standards.
4. Standards for Comparison in Financial Statement Analysis
In this lesson, you'll understand the purpose of comparing ratio data. We'll discuss four standards in comparing ratios; you'll learn about ratios in each category and where to find the data.
5. Defining and Applying Financial Ratio Analysis
In this lesson, we'll define financial ratios. You'll learn the three main categories of financial ratios, and we'll show an example of each. We'll also discuss an analysis of each example.
6. Financial Statement Analysis: Definition, Purpose, Elements & Examples
In this lesson, we'll define financial statement analysis and discuss the main categories. You'll also learn how to calculate a financial ratio in each category and analyze the results.
7. Issues with Financial Statement Analysis
In this lesson, we'll define financial statement ratios. You'll also learn some of the issues in analyzing financial statement ratios, as well as suggestions on how to make sure you're comparing apples to apples.
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Other chapters within the Chartered Financial Analyst (CFA): Exam Prep & Study Guide course
- About the CFA Exam
- Ethical & Professional Standards in Finance
- Quantitative Methods in Finance
- Overview of Economics in the Financial Market
- Domestic Economic Concepts
- International Trade & Currency Exchange
- Types of Financial Reporting & Analysis
- Understanding Corporate Finance
- Equity Investments
- Fixed-Income Securities
- Derivatives in Finance
- Alternative Investments
- Overview of Portfolios
- Portfolio Management Strategies
- Portfolio Performance Analysis