Analyzing Income Statements (2024/2025 CFA® Level I Exam – FSA – Learning Module 2)

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Topic 5 – Financial Statements Analysis
Learning Module 2 – Analyzing Income Statements
- LOS : Describe general principles of revenue recognition, specific revenue recognition applications, and implications of revenue recognition choices for financial analysis.
- LOS : Describe general principles of expense recognition, specific expense recognition applications, implications of expense recognition choices for financial analysis and contrast costs that are capitalized versus those that are expensed in the period in which they are incurred.
- LOS : Describe the financial reporting treatment and analysis of non-recurring items (including discontinued operations, unusual or infrequent items) and changes in accounting policies.
- LOS : Describe how earnings per share is calculated and calculate and interpret a company’s basic and diluted earnings per share for companies with simple and complex capital structures including those with antidilutive securities.
- LOS : Evaluate a company’s financial performance using common-size income statements and financial ratios based on the income statement.