APSN CFA 2013 Level 1 Study Session Income Statement, Balance Sheet, and Cash Flow Statement

The first three readings in this study session focus on the three major financial statements: the balance sheet, the income statement, and the statement of cash flows. For each financial statement, the reading describes its purpose, construction, pertinent ratios, and common-size analysis. These readings provide a background for evaluating trends in a company’s performance over several measurement periods and for comparing the performance of different companies over a given period. The final reading covers in greater depth financial analysis techniques based on the financial reports.
Note: New rulings and/or pronouncements issued after the publication of the readings in financial reporting and analysis may cause some of the information in these readings to become dated. Candidates are expected to be familiar with the overall analytical framework contained in the study session readings, as well as the implications of alternative accounting methods for financial analysis and valuation, as provided in the assigned readings. Candidates are not responsible for changes that occur after the material was written.