Page 23 - FINAL CFA I SLIDES JUNE 2019 DAY 7
P. 23
Session Unit 7:
24. Understanding Income Statements, p.56
LOS 24.g: Distinguish between the operating and non-operating components of the income
statement.
• For a nonfinancial firm, non operating transactions may result from investment income
and financing expenses.
• Interest expense is based on the firm’s capital structure, which is also independent of the
firm’s operations.
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• Conversely, for a financial firm, investment income and financing expenses are usually
considered operating activities.
