Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.



#cfa-level-1 #reading-22-financial-statement-analysis-intro
Once the purpose and context of the analysis is clear, the analyst compiles the specific questions to be answered by the analysis.

e.g. If the purpose of the financial statement analysis (or, more likely, the particular stage of a larger analysis) is to compare the historical performance of three companies operating in a particular industry, specific questions would include the following:

What has been the relative growth rate of the companies?

What has been the relative profitability of the companies?
If you want to change selection, open document below and click on "Move attachment"

4.1. Articulate the Purpose and Context of Analysis
? What is the time frame (i.e., when is the report due)? What resources and resource constraints are relevant to completion of the analysis? Again, the context may be predefined (i.e., standard and guided by institutional norms). <span>Having clarified the purpose and context of the financial statement analysis, the analyst should next compile the specific questions to be answered by the analysis. For example, if the purpose of the financial statement analysis (or, more likely, the particular stage of a larger analysis) is to compare the historical performance of three companies operating in a particular industry, specific questions would include the following: What has been the relative growth rate of the companies, and what has been the relative profitability of the companies? <span><body><html>


Summary

statusnot read reprioritisations
last reprioritisation on suggested re-reading day
started reading on finished reading on

Details


Discussion

Do you want to join discussion? Click here to log in or create user.