Page 31 - FINAL CFA SLIDES DECEMBER 2018 DAY 7
P. 31
Session Unit 6:
23. Financial Reporting Standards
LOS 23.h: Describe implications for financial analysis of differing financial reporting systems and the
importance of monitoring developments in financial reporting standards, p.32
The analyst can use the financial reporting framework as a guide for evaluating what
effect new products or transactions might have on financial statements.
LOS 23.i: Analyze company disclosures of significant accounting policies. p.33
An analyst should use these AFS disclosures to evaluate whether accounting policies
cover all the relevant data, including estimates and changes since the prior period.
Management can conclude that a new standard will not materially affect the AFS; but
analysts should be aware of the resulting uncertainty!
