Financial Reporting and Analysis
　　Evaluating Financial Reporting Quality and Other Applications
　　This study session covers *uating financial reporting quality and shows the appli?cation of financial statement analysis to debt and equity investments. The most frequently used tools and techniques to *uate companies include common-size analysis, cross-sectional analysis, trend analysis, and ratio analysis. Beyond mere knowledge of these tools, however, the analyst must recognize the implications of accounting choices on the quality of a company’s reported financial results. Then the analyst can apply financial analysis techniques to analytical tasks including the *uation of past and future financial performance, credit risk, and the screening of potential equity investments. The readings also explain analyst adjustments to reported financials. Such adjustments are often needed to put companies’ reported results on a comparable basis.
　　READING ASSIGNMENTS
　　Reading 33 Financial Reporting Quality: Red Flags and Accounting Warning Signs Commercial Lending Review, by Thomas R. Robinson, CFA, and Paul Munter
　　Reading 34 Accounting Shenanigans on the Cash Flow Statement The CPA Journal, by Marc A. Siegel
　　Reading 35 Financial Statement Analysis: Applications International Financial Statement Analysis, by Thomas R. Robinson, CFA, Elaine Henry, CFA, and Michael A. Broihahn, CFA
　　LEARNING OUTCOMES
　　READING 33. FINANCIAL REPORTING QUALITY: RED FLAGS AND ACCOUNTING WARNING SIGNS
　　The candidate should be able to:
　　a describe incentives that might induce a company’s executives to manage reported earnings, financial positions, and cash flows;
　　b describe activities that will result in a low quality of earnings;
　　c describe the three conditions that are generally present when fraud occurs, including the risk factors related to these conditions;
　　d describe common accounting warning signs and methods for detecting each.
　　READING 34. ACCOUNTING SHENANIGANS ON THE CASH FLOW STATEMENT
　　The candidate should be able to:
　　a describe reasons for investors to assess the quality of cash flow statements;
　　b analyze and describe the following ways to manage or manipulate the cash flow statement: stretching out payables, financing of payables, securitization of receivables, issuing stock options, and using stock buybacks.
　　READING 35. FINANCIAL STATEMENT ANALYSIS: APPLICATIONS
　　The candidate should be able to:
　　a *uate a company’s past financial performance and explain how a company’s strategy is reflected in past financial performance;
　　b forecast a company’s future net income and cash flow;
　　c describe the role of financial statement analysis in assessing the credit quality of a potential debt investment;
　　d describe the use of financial statement analysis in screening for potential equity investments;
　　e explain appropriate analyst adjustments to a company’s financial statements to facilitate comparison with another company.
　　　
　　扫一扫微信，*9时间获取2014年CFA考试报名时间和考试时间提醒
　　
　　
　　高顿网校特别提醒：已经报名2014年CFA考试的考生可按照复习计划有效进行！另外，高顿网校2014年CFA考试辅导高清网络课程已经开通，通过针对性地讲解、训练、答疑、模考，对学习过程进行全程跟踪、分析、指导，可以帮助考生全面提升备考效果。

　　报考指南：2014年CFA考试备考指南
　　免费题库：2014年CFA免费题库
　　考前冲刺：CFA备考秘籍
　　高清网课：CFA考试网络课程