CFA Level 1 (2019) - Complete Financial Reporting & Analysis

CFA Level 1 (2019) - Complete Financial Reporting & Analysis

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Course Description

Prep Course for 2019 CFA Level I Exam. Master Financial Reporting & Analysis (FRA) without any finance background!


  • Basic mathematics knowledge


Financial Reporting & Analysis (FRA) questions accounts for the most marks in the CFA Level 1 Exam.  It is no doubt the heaviest topic in one of the hardest exams in the world.  Many candidates struggle with this topic, not just due to the sheer volume of concepts to master, but also the different standards that one has to be aware of.

We believe in the Pareto principle - putting in the 20% effort to score 80% of the marks.  

The PrepNuggets approach is simply to condense at least 80% of the pertinent material from the curriculum, to easily digestible nuggets for you to consume during your pockets of free time.  Each nugget is painstaking

ly crafted to explain really complex concepts using engaging illustrations and animations.  No more wading through pages and pages of non-stop text, or sitting through long boring lectures with slides filled with text.

By the end of this course, we are confident that you will be able to comfortably handle at least 80% of the questions under FRA, more than enough to give you a passing mark for this section.

REQUIRED DISCLAIMER: CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by PrepNuggets or Udemy. CFA Institute, CFA®, and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Who this course is for:

  • This course is for CFA Level 1 Candidates
  • This course is for people who are interested in the CFA Program

What you will learn

  • Classify the various financial statement elements (assets, liabilities, equity, revenue, and expenses).

  • Understand the basic and expanded accounting equations.

  • Understand the roles of standard-setting bodies and regulatory authorities.

  • Be familiar with the IFRS Framework, and also identify the key differences between IFRS and US GAAP.

  • Calculate depreciation, COGS, inventory under different cost flow assumptions, basic and diluted EPS.

  • Distinguish between operating and non-operating items.

  • Understand the various balance sheet accounts, how they are valued, and what they represent.

  • Calculate financial ratios and make inferences through the ratios.

  • Construct a cash flow statement, by either the direct or indirect method.

  • Distinguish between operating, investing, and financing cash flows.

  • Apply various tools and techniques used in financial analysis.

  • Use the DuPont formulas to decompose ROE into its components to interpret a firm's profit drivers.

  • Distinguish between the different cost flow methods: LIFO, FIFO, and weighted average cost.

  • Calculate COGS, ending inventory, and gross profit under the different cost flow methods.

  • Distinguish between capitalization and immediate expensing of various costs.

  • Determine if an asset is impaired, and the methods to revalue an asset.

  • Distinguish between taxes payable and income tax expense.

  • Understand the circumstances that lead to deferred taxes, calculate and make adjustments to deferred taxes.

  • Calculate the book value of a bond and the interest expense using the effective interest rate method.

  • Distinguish between operating lease and finance lease.

  • Understand how accounting methods and estimates can affect reported earnings, financial position, and classification of cash flows.

  • Be aware of warning signs of earnings manipulation.

  • Apply analytic methods to forecast future earnings and cash flows.

  • Understand the common types of adjustments to financial statements for comparability purposes.


Section 1: Introduction

Section 2: Financial Statement Analysis: An Introduction

Section 3: Financial Reporting Mechanics

Section 4: Financial Reporting Standards

Section 5: Understanding Income Statements

Section 6: Understanding Balance Sheets

Section 7: Understanding Cash Flow Statements

Section 8: Financial Analysis Techniques

Section 9: Inventories

Section 10: Long-Lived Assets

Section 11: Income Taxes

Section 12: Non-Current Liabilities

Section 13: Financial Reporting Quality

Section 14: Financial Statement Analysis – Applications