Chapter 18 demonstrate the use of a framework for the analysis of financial statements, given a particular problem, question, or purpose (., valuing equity based on comparables, critiquing a credit rating, obtaining a comprehensive picture of financial leverage, evaluating the perspectives given in management’s discussion of financial results); identify financial reporting choices and biases that affect the quality and comparability of companies’ financial statements, and explain how such biases may affect financial decisions; | Chapter 18 Integration of Financial Statement Analysis Techniques Presenter’s name Presenter’s title dd Month yyyy LEARNING OUTCOMES Demonstrate the use of a framework for the analysis of financial statements, given a particular problem, question, or purpose (., valuing equity based on comparables, critiquing a credit rating, obtaining a comprehensive picture of financial leverage, evaluating the perspectives given in management’s discussion of financial results). Identify financial reporting choices and biases that affect the quality and comparability of companies’ financial statements, and explain how such biases may affect financial decisions. Evaluate the quality of a company’s financial data, and recommend appropriate adjustments to improve quality and comparability with similar companies, including adjustments for differences in accounting standards, methods, and assumptions. Evaluate how a given change in accounting standards, methods, or assumptions affects financial statements and ratios. Analyze and interpret how balance sheet modifications, earnings normalization, and cash flow statement related modifications affect a company’s financial statements, financial ratios, and overall financial condition. 1 framework The primary reason for performing financial statement analysis is to facilitate an economic decision. The framework for the analysis contains six phases: Define the purpose for the analysis Collect input data Process data Analyze/interpret the processed data Develop and communicate conclusions Follow-up Copyright © 2013 CFA Institute 2 LOS. Demonstrate the use of a framework for the analysis of financial statements, given a particular problem, question, or purpose (., valuing equity based on comparables, critiquing a credit rating, obtaining a comprehensive picture of financial leverage, evaluating the perspectives given in management’s discussion of financial results). 2 Framework: case study 1 Evaluating Nestlé as a long-term equity . | Chapter 18 Integration of Financial Statement Analysis Techniques Presenter’s name Presenter’s title dd Month yyyy LEARNING OUTCOMES Demonstrate the use of a framework for the analysis of financial statements, given a particular problem, question, or purpose (., valuing equity based on comparables, critiquing a credit rating, obtaining a comprehensive picture of financial leverage, evaluating the perspectives given in management’s discussion of financial results). Identify financial reporting choices and biases that affect the quality and comparability of companies’ financial statements, and explain how such biases may affect financial decisions. Evaluate the quality of a company’s financial data, and recommend appropriate adjustments to improve quality and comparability with similar companies, including adjustments for differences in accounting standards, methods, and assumptions. Evaluate how a given change in accounting standards, methods, or assumptions affects financial .
