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#cfa-level-1 #reading-22-financial-statement-analysis-intro
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3.1.5. Financial Notes and Supplementary Schedules
ate adjustments when comparing companies’ financial positions and performance. A company’s significant accounting choices (policies, methods, and estimates) must be discussed in the notes to the financial statements. For example, <span>a note containing a summary of significant accounting policies includes how the company recognizes its revenues and depreciates its non-current tangible assets. Analysts must understand the accounting choices a company makes and determine whether they are similar to those of other companies identified and used as benchmarks or comparables. If t


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