#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
In evaluating financial reports, analysts typically have a specific economic decision in mind.
Examples of these decisions include the following:
Evaluating an equity investment for inclusion in a portfolio.
Evaluating a merger or acquisition candidate.
Evaluating a subsidiary or operating division of a parent company.
Deciding whether to make a venture capital or other private equity investment.
Determining the creditworthiness of a company in order to decide whether to extend a loan to the company and if so, what terms to offer.