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Study Session 6 FRA
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This study session introduces the principal information sources used to evaluate a company’s financial performance. Primary financial statements (income statement, balance sheet, cash flow statement, and statement of changes in equity) in addition to notes to these statements and management reporting are examined. A general framework for conducting financial statement analysis is provided. The process of recording a business’s activities through the accounting process including necessary accruals and adjustments is then described. The session concludes with an explanation of the roles played by financial reporting standard-setting bodies and regulatory authorities, the Internal Accounting Standards Board’s conceptual framework, and the movement toward global accounting standards.
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