Financial Reporting Part 3

Lessons

CFA Level 2: Financial Reporting Part 3 – Introduction

Various Definitions of Earnings

Total Comprehensive Income

Earnings and Cash Flows

Derivatives Hedging and Financial Reporting

Cash Basis Accounting vs. Accrual Basis Accounting

Management Motivations for Financial Statement Manipulation

Measures of Earnings Quality

Analyzing Earnings Quality – the Accruals Ratio

Financial Reporting Problems and Warning Signs

Financial Statement Analysis – Ratio Analysis

Adjusting a Company’s Reported Financial Statements