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#cfa-level-1 #reading-22-financial-statement-analysis-intro

If the policies of the companies being compared are different, the analyst who understands accounting and financial reporting can often make necessary adjustments so that the financial statement data used are more comparable.

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3.1.5. Financial Notes and Supplementary Schedules
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. <span>If the policies of the companies being compared are different, the analyst who understands accounting and financial reporting can often make necessary adjustments so that the financial statement data used are more comparable. For many companies, the financial notes and supplemental schedules provide explanatory information about every line item (or almost every line item) on the balance sheet an


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