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Understanding Income Statements

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This reading introduces the readers to income statements, one of the three major financial statements. We will learn about the structure and presentation of income statement, calculation of various elements of income statements, and common ratios associated with it.

Course Syllabus

01

Income Statement

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02

Formats of Income Statements

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03

Principles of Revenue Recognition

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04

Revenue Recognition - Long-term Contracts

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05

Revenue Recognition - Instalment Sales

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06

Revenue Recognition - Barter Transactions

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07

Expense Recognition

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08

Inventory Expense Recognition

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09

Depreciation Expense Recognition

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10

Amortization Expense Recognition

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11

Bad Debt Expense and Warranty Expense Recognition

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12

Financial Reporting of Non-recurring Items

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13

Operating and Non-operating Components of Income Statement

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14

How to Calculate Basic Earnings Per Share (EPS)

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15

Impact of Stock Dividends and Stock Splits on Earnings Per Share (EPS)

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16

Diluted EPS

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17

Calculation of Diluted EPS (Convertible Preferred Stock)

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18

Calculation of Diluted EPS (Convertible Debt)

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19

Common Size Income Statement

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20

Performance Measures of a Company

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21

Comprehensive Income

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What's Included:

eBook in PDF format
All code files used in the book
All data files used in the book
All related book resources

Course Quizzes

Understanding Income Statements

This quiz is a part of the CFA Level 1 reading 'Understanding Income Statements'.

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Topics Covered

Financial Analysis