Pre - Financial Statement Analysis

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Learning Modules

P - Introduction to Financial Reporting

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• 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

P - Income Statements

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• 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

P - Balance Sheets

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• 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

P - Cash Flow Statements

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• Introduction
• Classification of Cash Flows and Non-Cash Activities
• Direct and Indirect Methods for Reporting Cash Flow from Operating Activities
• Indirect Method under IFRS
• Direct Method under IFRS
• Direct Method under US GAAP
• Indirect Method under US GAAP

P - Inventories

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• 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

P - Long-Lived Assets

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• 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

P - Income Taxes

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• 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

P - Non-Current (Long-Term) Liabilities

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• 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

P - Applications of Financial Statement Analysis

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• 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