Chapter 3: Advanced Financial Statement Analysis and Interpretation

In this section

• Intercorporate Investments, Mergers & Acquisitions
  A comprehensive, slightly informal yet instructive guide to intercorporate investments, focusing on IFRS vs. US GAAP classification, measurement, disclosure, and the key aspects of M&A accounting.
• Employee Compensation and Post-Employment Benefits
  Explore types of employee compensation, share-based awards, pension plans, and best practices for analyzing and forecasting post-employment benefits under IFRS and US GAAP.
• Multinational Operations and Currency Translation
  Explore how global firms handle foreign currencies, including local, functional, and presentation currencies, translation methods under IFRS & US GAAP, and hyperinflationary considerations. Gain practical insights through real-world examples and best practices for CFA Level II success.
• Evaluating Financial Reporting Quality and Earnings Sustainability
  Discover how to evaluate financial reporting quality and assess the sustainability of corporate earnings. This comprehensive CFA® Level II guide explores potential red flags, indicators of earnings manipulation, mean reversion in accruals, and techniques to appraise cash flow and balance sheet quality—everything you need to deepen your mastery.
• Analysis of Financial Institutions
  Explore the CAMELS framework, regulatory environments, and fundamental metrics for evaluating the financial health of banks and insurers.
• Comprehensive Integration of Financial Statement Techniques
  Learn how to reconcile and normalize financial statements across different accounting standards, detect management bias, and make accurate valuations using integrated financial statement analysis.