讲义教程教案bined

SSTUDYEthicalandThisstudysessionintroducesethics,relatedchallengestoethicalbehavior,andtheroleplayedbyethicsintheinvestmentprofession.Aframeworktosupportethicaldecision-makingisprovidedtohelpguidebehavior.TheCFAInstituteCodeofEthicsandStandardsofProfessionalConduct(CodeandStandards)areexamined,withattentiongiventoeachstandardanditsapplication.ThesessionconcludeswithcoverageoftheGlobalInvestmentPerformanceStandards.Reading EthicsandTrustintheInvestmentbyBidhanL.Parmar,PhD,DorothyC.Kelly,CFA,andDavidB.Stevens,CIMC,CFAReading CodeofEthicsandStandardsofProfessionalStandardsofPracticeHandbook,EleventhReading GuidanceforStandardsStandardsofPracticeHandbook,EleventhReading4 IntroductiontotheGlobalInvestmentPerformanceStandards(GIPS)Reading GlobalInvestmentPerformanceStandardsREADING1.ETHICSANDTRUSTINTHEINVESTMENTThecandidateshouldbeableexplaindescribetheroleofacodeofethicsindefiningaidentifychallengestoethicaldescribetheneedforhighethicalstandardsintheinvestmentdistinguishbetweenethicalandlegaldescribeandapplyaframeworkforethicaldecisionREADING2.CODEOFETHICSANDSTANDARDSOFPROFESSIONALCONDUCTThecandidateshouldbeabledescribethestructureoftheCFAInstituteProfessionalConductProgramandtheprocessfortheenforcementoftheCodeandStandards;statethesixcomponentsoftheCodeofEthicsandthesevenStandardsofProfessionalConduct;explaintheethicalresponsibilitiesrequiredbytheCodeandStandards,includ-ingthesub-sectionsofeachStandard.READING3.GUIDANCEFORSTANDARDSThecandidateshouldbeabledemonstratetheapplicationoftheCodeofEthicsandStandardsofProfessionalConducttosituationsinvolvingissuesofprofessionalintegrity;distinguishbetweenconductthatconformstotheCodeandStandardsandconductthatviolatestheCodeandStandards; mendpracticesandproceduresdesignedtopreventviolationsoftheCodeofEthicsandStandardsofProfessionalConduct.READING4.INTRODUCTIONTOTHEGLOBALINVESTMENTPERFORMANCESTANDARDS(GIPS)ThecandidateshouldbeableexplainwhytheGIPSstandardswerecreated,whatpartiestheGIPSstandardsapplyto,andwhoisservedbythestandards;explaintheconstructionandpurposeofcompositesinperformanceexplaintherequirementsforREADING5.GLOBALINVESTMENTPERFORMANCESTANDARDSThecandidateshouldbeabledescribethekeyfeaturesoftheGIPSstandardsandthefundamentalsofdefinitionandhistoricalperformanceexplainhowtheGIPSstandardsareimplementedincountrieswithexistingstandardsforperformancereportinganddescribetheappropriateresponsewhentheGIPSstandardsandlocalregulations describetheninemajorsectionsoftheGIPS解 全真模拟题 /道解 全真模拟题 /道德手册/QuickSheet/等2017-音频课程及指史上最全的学霸学渣党CFA考经笔2017-2018CFA一级二级考点汇总备考CFA的8大最有效资料和工文版根据考纲编写，比看notes还有效/notes/词汇手册/考纲及解析手册/计算器 除CFA资料 金融、财会技 包+热门书G考证资料 群 免费2018年CFA备考资料，含CFA网课，考友交流互助答疑、考试指导、考经、资料共享、考试资讯发布！快来加入我们吧！2018年CFA资料共享群Q`Q群号： 在CFA备考的你！

SSTUDYtativeMethodsThisstudysessionintroduces tativeconceptsandtechniquesusedinfinancialysisandinvestmentdecisionmaking.Thetimevalueofmoneyanddiscountedcashflow ysisformthebasisforcashflowandsecurityvaluation.Descriptivestatisticsusedforconveyingimportantdataattributessuchascentraltendency,location,anddispersionarepresented.Characteristicsofreturndistributionssuchsymmetry,skewness,andkurtosisarealsointroduced.Finally,allinvestmentforecastsanddecisionsinvolveuncertainty:Therefore,probabilitytheoryanditsapplicationfyingriskininvestmentdecisionmakingisconsidered.Reading TheTimeValueofbyRichardA.DeFusco,PhD,CFA,DennisW.McLeavey,CFA,JeraldE.Pinto,PhD,CFA,andDavidE.Runkle,PhD,CFAReading DiscountedCashFlowbyRichardA.DeFusco,PhD,CFA,DennisW.McLeavey,CFA,JeraldE.Pinto,PhD,CFA,andDavidE.Runkle,PhD,CFAReading StatisticalConceptsandMarketbyRichardA.DeFusco,PhD,CFA,DennisW.McLeavey,CFA,JeraldE.Pinto,PhD,CFA,andDavidE.Runkle,PhD,CFAReading ProbabilitybyRichardA.DeFusco,PhD,CFA,DennisW.McLeavey,CFA,JeraldE.Pinto,PhD,CFA,andDavidE.Runkle,PhD,CFAREADING6.THETIMEVALUEOFThecandidateshouldbeableinterpretinterestratesasrequiredratesofreturn,discountrates,oropportu-nitycosts;explainaninterestrateasthesumofarealrisk-freerateandpremiumsthatcompensateinvestorsforbearingdistincttypesofrisk;calculateandinterprettheeffectiveannualrate,giventhestatedannualinterestrateandthefrequencyofcompounding;solvetimevalueofmoneyproblemsfordifferentfrequenciesofcalculateandinterpretthefuturevalue(FV)andpresentvalue(PV)ofasinglesumofmoney,anordinaryannuity,anannuitydue,aperpetuity(PVonly),andaseriesofunequalcashflows;demonstratetheuseofatimelineinmodelingandsolvingtimevalueofmoneyREADING7.DISCOUNTEDCASHFLOWThecandidateshouldbeablecalculateandinterpretthenetpresentvalue(NPV)andtheinternalrateofreturn(IRR)ofaninvestment;contrasttheNPVruletotheIRRrule,andidentifyproblemsassociatedwiththeIRRrule;calculateandinterpretaholdingperiodreturn(totalcalculateandcomparethemoney-weightedandtime-weightedratesofreturnofaportfolioandevaluatetheperformanceofportfoliosbasedonthesecalculateandinterpretthebankdiscountyield,holdingperiodyield,effectiveannualyield,andmoneymarketyieldforUSTreasurybillsandothermoneymarketinstruments;convertamongholdingperiodyields,moneymarketyields,effectiveannualyields,andbondequivalentyields.READING8.STATISTICALCONCEPTSANDMARKETThecandidateshouldbeabledistinguishbetweendescriptivestatisticsandinferentialstatistics,betweenapopulationandasample,andamongthetypesofmeasurementscales;defineaparameter,asamplestatistic,andafrequencycalculateandinterpretrelativefrequenciesandcumulativerelativefrequencies,givenafrequencydistribution;describethepropertiesofadatasetpresentedasahistogramorafrequencycalculateandinterpretmeasuresofcentraltendency,includingthepopulationmean,samplemean,arithmeticmean,weightedaverageormean,geometricmean,harmonicmean,median,andmode;calculateandinterpretquartiles,quintiles,deciles,andcalculateandinterpret1)arangeandameanabsolutedeviationand2)thevarianceandstandarddeviationofapopulationandofasample;calculateandinterprettheproportionofobservationsfallingwithinanumberofstandarddeviationsofthemeanusingChebyshev’scalculateandinterpretthecoefficientofvariationandtheSharpeexplainskewnessandthemeaningofapositivelyornegativelyskewedreturndescribetherelativelocationsofthemean,median,andmodeforaunimodal,nonsymmetricaldistribution;explainmeasuresofsampleskewnessandcomparetheuseofarithmeticandgeometricmeanswhen READING9.PROBABILITYThecandidateshouldbeabledefinearandomvariable,an e,anevent,mutuallyexclusiveevents,andexhaustiveevents;statethetwodefiningpropertiesofprobabilityanddistinguishamongempiri-cal,subjective,andaprioriprobabilities;statetheprobabilityofaneventintermsofoddsforandagainstthedistinguishbetweenunconditionalandconditionalexplainthemultiplication,addition,andtotalprobabilitycalculateandinterpret1)thejointprobabilityoftwoevents,2)theprobabilitythatatleastoneoftwoeventswilloccur,giventheprobabilityofeachandthejointprobabilityofthetwoevents,and3)ajointprobabilityofanynumberofindependentevents;distinguishbetweendependentandindependentcalculateandinterpretanunconditionalprobabilityusingthetotalprobabilityexplaintheuseofatreediagramtorepresentaninvestmentcalculateandinterpretcovarianceandcalculateandinterprettheexpectedvalue,variance,andstandarddeviationofarandomvariableandofreturnsonaportfolio;calculateandinterpretcovariancegivenajointprobabilitycalculateandinterpretanupdatedprobabilityusingBayes’identifythemostappropriatemethodtosolveaparticularcountingproblemandsolvecountingproblemsusingfactorial,combination,andpermutationSSTUDYtativeMethodsThisstudysessionintroducesthecommonprobabilitydistributionsusedtodescribethebehaviorofrandomvariables,suchasassetpricesandreturns.Howtoestimatemeasuresofapopulation(mean,standarddeviation)basedonapopulationsampleisshown.Aframeworkforhypothesistesting,usedforvalidatingdatasethypotheses,follows,alongwithtechniquestotestahypothesis.Thesessionendswithcoverageoftechnicalysis,asetoftoolsthatusesassetprice,tradingvolume,andothersimilardataformakinginvestmentdecisions.Reading CommonProbabilitybyRichardA.DeFusco,PhD,CFA,DennisW.McLeavey,CFA,JeraldE.Pinto,PhD,CFA,andDavidE.Runkle,PhD,CFAReading SamplingandbyRichardA.DeFusco,PhD,CFA,DennisW.McLeavey,CFA,JeraldE.Pinto,PhD,CFA,andDavidE.Runkle,PhD,CFAReading HypothesisbyRichardA.DeFusco,PhD,CFA,DennisW.McLeavey,CFA,JeraldE.Pinto,PhD,CFA,andDavidE.Runkle,PhD,CFAReading byBarryM.Sine,CMT,CFA,andRobertA.Strong,PhD,CFAREADING10.COMMONPROBABILITYThecandidateshouldbeabledefineaprobabilitydistributionanddistinguishbetweendiscreteandcontinu-ousrandomvariablesandtheirprobabilityfunctions;describethesetof esofaspecifieddiscreterandominterpretacumulativedistributioncalculateandinterpretprobabilitiesforarandomvariable,givenitscumulativedistributionfunction;defineadiscreteuniformrandomvariable,aBernoullirandomvariable,andabinomialrandomvariable;calculateandinterpretprobabilitiesgiventhediscreteuniformandthebino-mialdistributionfunctions;constructabinomialtreetodescribestockpricedefinethecontinuousuniformdistributionandcalculateandinterpretproba-bilities,givenacontinuousuniformdistribution;explainthekeypropertiesofthenormaldistinguishbetweenaunivariateandamultivariatedistributionandexplaintheroleofcorrelationinthemultivariatenormaldistribution;determinetheprobabilitythatanormallydistributedrandomvariableliesinsideagiveninterval;definethestandardnormaldistribution,explainhowtostandardizearandomvariable,andcalculateandinterpretprobabilitiesusingthestandardnormalliousingRoy’ssafety-firstexplaintherelationshipbetweennormalandlognormaldistributionsandwhythelognormaldistributionisusedtomodelassetprices;distinguishbetweendiscreyandcontinuouslycompoundedratesofreturnandcalculateandinterpretacontinuouslycompoundedrateofreturn,givenaspecificholdingperiodreturn;explainMonteCarlosimulationanddescribeitsapplicationsandcompareMonteCarlosimulationandhistoricalREADING11.SAMPLINGANDThecandidateshouldbeabledefinesimplerandomsamplingandasamplingexplainsamplingdistinguishbetweensimplerandomandstratifiedrandomdistinguishbetweentime-seriesandcross-sectionalexplainthecentrallimittheoremanditscalculateandinterpretthestandarderrorofthesampleidentifyanddescribedesirablepropertiesofandistinguishbetweenapointestimateandaconfidenceintervalestimateofapopulationparameter;describepropertiesofStudent’st-distributionandcalculateandinterpretitsdegreesoffreedom;calculateandinterpretaconfidenceintervalforapopulationmean,givenanor-maldistributionwith1)aknownpopulationvariance,2)anunknownpopula-tionvariance,or3)anunknownpopulationvarianceandalargesamplesize;describetheissuesregardingselectionoftheappropriatesamplesize,data-miningbias,sampleselectionbias,survivorshipbias,look-aheadbias,andtime-periodbias.READING12.HYPOTHESISThecandidateshouldbeabledefineahypothesis,describethestepsofhypothesistesting,anddescribeandinterpretthechoiceofthenullandalternativehypotheses;distinguishbetweenone-tailedandtwo-tailedtestsofexplainateststatistic,TypeIandTypeIIerrors,asignificancelevel,andhowsignificancelevelsareusedinhypothesistesting;explainadecisionrule,thepowerofatest,andtherelationbetweenconfidenceintervalsandhypothesistests;distinguishbetweenastatisticalresultandaneconomicallymeaningfulexplainandinterpretthep-valueasitrelatestohypothesisidentifytheappropriateteststatisticandinterprettheresultsforahypothesistestconcerningthepopulationmeanofbothlargeandsmallsampleswhenthepopulationisnormallyorapproximaynormallydistributedandthevarianceis1)knownor2)unknown;identifytheappropriateteststatisticandinterprettheresultsforahypothesistestconcerningtheequalityofthepopulationmeansoftwoatleastapproxi- ynormallydistributedpopulations,basedonindependentrandomsam-pleswith1)equalor2)unequalassumedvariances;identifytheappropriateteststatisticandinterprettheresultsforahypothesistestconcerningthemeandifferenceoftwonormallydistributedpopulations;identifytheappropriateteststatisticandinterprettheresultsforahypothesistestconcerning1)thevarianceofanormallydistributedpopulation,and2)theequalityofthevariancesoftwonormallydistributedpopulationsbasedontwoindependentrandomsamples;distinguishbetweenparametricandnonparametrictestsanddescribesituationsinwhichtheuseofnonparametrictestsmaybeappropriate.READING13. Thecandidateshouldbeableexplainprinciplesoftechnical ysis,itsapplications,anditsunderlyingdescribetheconstructionofdifferenttypesoftechnical ysischartsandinterpretthem;explainusesoftrend, lines,andchangeindescribecommonchartdescribecommontechnical ysisindicators(price-based,momentumoscil-lators,sentiment,andflowoffunds);explainhow describethekeytenetsofElliottWaveTheoryandtheimportanceofFibonaccidescribeintermarket ysisasitrelatestotechnical ysisandassetSSTUDYEconomicsThisstudysessionbeginsbyintroducingfundamentalconceptsofdemandandsupplyysisforindividualconsumersandfirms.Alsocoveredarethevariousmarketstructures(perfectcompetition,oligopoly,monopoly)inwhichfirmsoperate.Keymacroeconomicconceptsandprinciplesthenfollow,includingaggregateoutput economicgrowthfactors.Thestudysessionconcludeswithcoverageofthebusinesscycleanditseffectoneconomicactivity.Reading TopicsinDemandandSupplybyRichardV.Eastin,PhD,andGaryL.Arbogast,PhD,Reading TheFirmandMarketbyRichardFritz,PhD,andMicheleGambera,PhD,Reading AggregateOutput,Prices,andEconomicbyPaulR.Kutasovic,PhD,CFA,andRichardFritz,Reading UnderstandingBusinessbyMicheleGambera,PhD,CFA,MiltonEzrati,andBolongCao,PhD,CFAREADING14.TOPICSINDEMANDAND Thecandidateshouldbeablecalculateandinterpretprice, e,andcross-priceelasticitiesofdemandanddescribefactorsthataffecteachmeasure;comparesubstitution edistinguishbetweennormalgoodsandinferiordescribethephenomenonofdiminishingmarginaldetermineandinterpretbreakevenandshutdownpointsofdescribehoweconomiesofscaleanddiseconomiesofscaleaffectREADING15.THEFIRMANDMARKETThecandidateshouldbeabledescribecharacteristicsofperfectcompetition,monopolisticcompetition,oli-gopoly,andpuremonopoly;explainrelationshipsbetweenprice,marginalrevenue,marginalcost,economicprofit,andtheelasticityofdemandundereachmarketstructure;describeafirm’ssupplyfunctionundereachmarketdescribeanddeterminetheoptimalpriceandoutputforfirmsundereachmar-ketstructure;explainfactorsaffectinglong-runequilibriumundereachmarketdescribepricingstrategyundereachmarketdescribetheuseandlimitationsofconcentrationmeasuresinidentifyingmar-ketstructure;identifythetypeofmarketstructurewithinwhichafirmREADING16.AGGREGATEOUTPUT,PRICES,ANDECONOMICThecandidateshouldbeablecalculateandexplaingrossdomesticproduct(GDP)usingexpenditureandeapproaches;comparethesum-of-value-addedandvalue-of-final-outputmethodsofcalcu-latingGDP;comparenominalandrealGDPandcalculateandinterprettheGDPcompareGDP,national e,and aldisposableexplainthefundamentalrelationshipamongsaving,investment,thefiscalbal-ance,andthetradebalance;explaintheISandLMcurvesandhowtheycombinetogeneratetheaggregatedemandcurve;explaintheaggregatesupplycurveintheshortrunandlongexplaincausesofmovementsalongandshiftsinaggregatedemandandsupplydescribehowfluctuationsinaggregatedemandandaggregatesupplycauseshort-runchangesintheeconomyandthebusinesscycle;distinguishbetweenthefollowingtypesofmacroeconomicequilibria:long-runfullemployment,short-runrecessionarygap,short-runinflationarygap,andshort-runstagflation;explainhowashort-runmacroeconomicequilibriummayoccuratalevelaboveorbelowfullemployment; yzetheeffectofcombinedchangesinaggregatesupplyanddemandonthedescribesources,measurement,andsustainabilityofeconomicdescribetheproductionfunctionapproachto yzingthesourcesofeco-nomicgrowth;distinguishbetweeninputgrowthandgrowthoftotalfactorproductivityascomponentsofeconomicgrowth.READING17.UNDERSTANDINGBUSINESSThecandidateshouldbeabledescribethebusinesscycleanditsdescribehowresourceuse,housingsectoractivity,andexternaltradesectoractivityvaryasaneconomymovesthroughthebusinesscycle;describetheoriesofthebusinessdescribetypesofunemploymentandcomparemeasuresofexplaininflation,hyperinflation,disinflation,andexplaintheconstructionofindexesusedtomeasurecompareinflationmeasures,includingtheirusesanddistinguishbetweencost-pushanddemand-pullinterpretasetofeconomicindicatorsanddescribetheirusesandSSTUDYEconomicsThisstudysessionbeginswithmonetaryandfiscalpolicy,includingtheirusebycentralbanksand ernments.Economicsinaglobalcontextisthenintroduced.Nextfollowsadiscussionontheflowsofgoodsandservicesandphysicalandfinan-cialcapitalthatoccuracrossnationalborders.Highlightedinthediscussionaretherelationshipsbetweendifferenttypesofflowsandthebenefitsoftradetotradepart-ners.Finally,giventhatoperationsandinvestmentsinglobalmarketsinvolveforeignexchange(currency)risk,thesessionconcludeswithanoverviewofcurrencymarketReading MonetaryandFiscalbyAndrewClare,PhD,andStephenThomas,Reading byUshaNair-Reichert,PhD,andDanielRobertWitschi,PhD,CFAReading CurrencyExchangebyWilliamA.Barker,PhD,CFA,PaulD.McNelis,andJerryNickelsburgREADING18.MONETARYANDFISCALThecandidateshouldbeablecomparemonetaryandfiscaldescribefunctionsanddefinitionsofexplainthemoneycreationdescribetheoriesofthedemandforandsupplyofdescribetheFisherdescriberolesandobjectivesofcentralcontrastthecostsofexpectedandunexpecteddescribetoolsusedtoimplementmonetarydescribethemonetarytransmissiondescribequalitiesofeffectivecentralexplaintherelationshipsbetweenmonetarypolicyandeconomicgrowth,infla-tion,interest,andexchangerates;contrasttheuseofinflation,interestrate,andexchangeratetargetingbycentraldeterminewhetheramonetarypolicyisexpansionaryordescribelimitationsofmonetarydescriberolesandobjectivesoffiscaldescribetoolsoffiscalpolicy,includingtheiradvantagesanddescribetheargumentsaboutwhetherthesizeofanationaldebtrelativetoGDPmatters;explaintheimplementationoffiscalpolicyanddifficultiesofdeterminewhetherafiscalpolicyisexpansionaryorexplaintheinteractionofmonetaryandfiscalREADING19.INTERNATIONALTRADEANDCAPITALThecandidateshouldbeablecomparegrossdomesticproductandgrossnationaldescribebenefitsandcostsofinternationaldistinguishbetweencomparativeadvantageandabsolutecomparetheRicardianandHeckscher–Ohlinmodelsoftradeandthesource(s)ofcomparativeadvantageineachmodel;comparetypesoftradeandcapitalrestrictionsandtheireconomicexplainmotivationsforandadvantagesoftradingblocs,commonmarkets,andeconomicunions;describecommonobjectivesofcapitalrestrictionsimposed describethebalanceofpaymentsaccountsincludingtheirexplainhowdecisionsbyconsumers,firms,andernmentsaffectthebalanceofpayments;describefunctionsandobjectivesoftheinternationalorganizationsthatfacili-tatetrade,includingtheWorldBank,theInternationalMonetaryFund,andtheWorldTradeOrganization.READING20.CURRENCYEXCHANGEThecandidateshouldbeabledefineanexchangerateanddistinguishbetweennominalandrealexchangeratesandspotandforwardexchangerates;describefunctionsofandparticipantsintheforeignexchangecalculateandinterpretthepercentagechangeinacurrencyrelativetoanothercalculateandinterpretcurrencycross-convertforwardquotationsexpressedonapointsbasisorinpercentagetermsintoanoutrightforwardquotation;explainthearbitragerelationshipbetweenspotrates,forwardrates,andinterestcalculateandinterpretaforwarddiscountorcalculateandinterprettheforwardrateconsistentwiththespotrateandtheinterestrateineachcurrency;describeexchangerateexplaintheeffectsofexchangeratesoncountries’internationaltradeandcapi-talflows.SSTUDYFinancialReportingandysisthereadings,aswellasThisstudysessionintroducestheprincipalinformationsourcesusedtoevaluateacompany’sfinancialperformance.Primaryfinancialstatements(estatement,balancesheet,cashflowstatement,andstatementofchangesinequity)inadditiontonotestothesestatementsandmanagementreportingareexamined.Ageneralframeworkforconductingfinancialstatementysisisprovided.Thesessionalsoincludesadescriptionofthethereadings,aswellasReading Financial ysis:AnbyElaineHenry,PhD,CFA,andThomasR.Robinson,PhD,CFAReading byElaineHenry,PhD,CFA,JanHendrikvanGreuning,DCom,CFA,andThomasR.Robinson,PhD,CFAREADING21.FINANCIALSTATEMENT Thecandidateshouldbeabledescribetherolesoffinancialreportingandfinancialstatementdescribetherolesofthestatementoffinancialposition,statementofcompre- e,statementofchangesinequity,andstatementofcashflowsinStudySession describetheimportanceoffinancialstatementnotesandsupplementaryinfor-mation—includingdisclosuresofaccountingpolicies,methods,andestimates—andmanagement’scommentary;describetheobjectiveofauditsoffinancialstatements,thetypesofauditreports,andtheimportanceofeffectiveinternalcontrols;identifyanddescribeinformationsourcesthatystsuseinfinancialstatementysisbesidesannualfinancialstatementsandsupplementarydescribethestepsinthefinancialstatementysisREADING22.FINANCIALREPORTINGThecandidateshouldbeabledescribetheobjectiveoffinancialstatementsandtheimportanceoffinancialreportingstandardsinsecurity ysisandvaluation;describerolesanddesirableattributesoffinancialreportingstandard-settingbodiesandregulatoryauthoritiesinestablishingandenforcingreportingstandards,anddescribetheroleoftheInternationalOrganizationofSecuritiesdescribethestatusofglobalconvergenceofaccountingstandardsandongo-ingbarrierstodevelooneuniversallyacceptedsetoffinancialreportingdescribetheInternationalAccountingStandardsBoard’sconceptualframework,includingtheobjectiveandqualitativecharacteristicsoffinancialstatements,requiredreportingelements,andconstraintsandassumptionsinpreparingfinancialstatements;describegeneralrequirementsforfinancialstatementsunderInternationalFinancialReportingStandards(IFRS);comparekeyconceptsoffinancialreportingstandardsunderIFRSandUSgen-erallyacceptedaccountingprinciples(USGAAP)reportingsystems;identifycharacteristicsofacoherentfinancialreportingframeworkandthebarrierstocreatingsuchaframework;describeimplicationsforfinancial ysisofdifferingfinancialreportingsystemsandtheimportanceofmonitoringdevelopmentsinfinancialreportingyzecompanydisclosuresofsignificantaccountingSSTUDYFinancialReportingandysisthereadings,aswellasThisstudysessionaddressesthethreemajorfinancialstatements—the statement,thebalancesheet,andthecashflowstatement—byexaminingeachinturn.Thepurpose,elementsof,construction,thereadings,aswellasadiscussionoffinancialysistechniquesincludingtheuseofratiostoevaluatecorporatefinancialhealth.Reading ebyElaineHenry,PhD,CFA,andThomasR.Robinson,PhD,CFAReading UnderstandingBalancebyElaineHenry,PhD,CFA,andThomasR.Robinson,PhD,CFAReading UnderstandingCashFlowbyElaineHenry,PhD,CFA,ThomasR.Robinson,PhD,CFA,JanHendrikvanGreuning,DCom,CFA,andMichaelA.Broihahn,CPA,CIA,CFAReading ysisbyElaineHenry,PhD,CFA,ThomasR.Robinson,PhD,CFA,andJanHendrikvanGreuning,DCom,CFAREADING23. EThecandidateshouldbeabledescribethecomponentsofthe estatementandalternativepresentationformatsofthatstatement;describegeneralprinciplesofrevenuerecognitionandaccrualaccounting,specificrevenuerecognitionapplications(includingaccountingforlong-termcontracts,installmentsales,bartertransactions,grossandnetreportingofreve-nue),andimplicationsofrevenuerecognitionprinciplesforfinancial calculaterevenuegiveninformationthatmightinfluencethechoiceofrevenuerecognitionmethod;describekeyaspectsoftheconvergedaccountingstandardsforrevenuerecog-nitionissuedbytheInternationalAccountingStandardsBoardandFinancialAccountingStandardsBoardinMay2014;describegeneralprinciplesofexpenserecognition,specificexpenserecogni-tionapplications,andimplicationsofexpenserecognitionchoicesforfinancialdescribethefinancialreportingtreatmentandysisofnon-recurringitems(includingdiscontinuedoperations,unusualorinfrequentitems)andchangesinaccountingpolicies;distinguishbetweentheoperatingandnon-operatingcomponentsoftheestatement;describehowearningspershareiscalculatedandcalculateandinterpretacom-pany’searningspershare(bothbasicanddilutedearningspershare)forbothsimpleandcomplexcapitalstructures;distinguishbetweendilutiveandantidilutivesecuritiesanddescribetheimpli-cationsofeachfortheearningspersharecalculation; eevaluateacompany’sfinancialperformanceusingcommon-size estate-mentsandfinancialratiosbasedonthe estatement;describe,calculate,andinterpret describeothercomprehensive eandidentifymajortypesofitemsincludedinit.READING24.UNDERSTANDINGBALANCEThecandidateshouldbeabledescribetheelementsofthebalancesheet:assets,liabilities,anddescribeusesandlimitationsofthebalancesheetin describealternativeformatsofbalancesheetdistinguishbetweencurrentandnon-currentassetsandcurrentandnon-currentliabilities;describedifferenttypesofassetsandliabilitiesandthemeasurementbasesofdescribethecomponentsofshareholders’convertbalancesheetstocommon-sizebalancesheetsandinterpretcommon-sizebalancesheets;calculateandinterpretliquidityandsolvencyREADING25.UNDERSTANDINGCASHFLOWThecandidateshouldbeablecomparecashflowsfromoperating,investing,andfinancingactivitiesandclas-sifycashflowitemsasrelatingtooneofthosethreecategoriesgivenadescrip-tionoftheitems;describehownon-cashinvestingandfinancingactivitiesarecontrastcashflowstatementspreparedunderInternationalFinancialReportingStandards(IFRS)andUSgenerallyacceptedaccountingprinciples(USGAAP);distinguishbetweenthedirectandindirectmethodsofpresentingcashfromoperatingac