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Tags
#cfa-level-1 #expense-recognition #reading-25-understanding-income-statement
Question
An analyst can use the [...] to adjust the reported expenses so that they are on a comparable basis.
Answer
monetary effect

Tags
#cfa-level-1 #expense-recognition #reading-25-understanding-income-statement
Question
An analyst can use the [...] to adjust the reported expenses so that they are on a comparable basis.
Answer
?

Tags
#cfa-level-1 #expense-recognition #reading-25-understanding-income-statement
Question
An analyst can use the [...] to adjust the reported expenses so that they are on a comparable basis.
Answer
monetary effect
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4.3. Implications for Financial Analysis
al report. When possible, the monetary effect of differences in expense recognition policies and estimates can facilitate more meaningful comparisons with a single company’s historical performance or across a number of companies. <span>An analyst can use the monetary effect to adjust the reported expenses so that they are on a comparable basis. Even when the monetary effects of differences in policies and estimates cannot be calculated, it is generally possible to characterize the relative conservatism of the poli

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