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#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?
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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>


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