Understanding Income Statements (2022 Level I CFA® Exam - Reading 17)

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Reading17 - Understanding Income Statements
- LOS a: describe the components of the income statement and alternative presentation formats of that statement bit.ly/2S5O7rH
- LOS b: describe general principles of revenue recognition and accrual accounting, specific revenue recognition applications (including accounting for long-term contracts, installment sales, barter transactions, gross and net reporting of revenue), and implications of revenue recognition principles for financial analysis bit.ly/2DHbvHY
- LOS c: calculate revenue given information that might influence the choice of revenue recognition method bit.ly/2zmi8Ng
- LOS d: describe general principles of expense recognition, specific expense recognition applications, and implications of expense recognition choices for financial analysis bit.ly/2DSn2Fo
- LOS e: describe the financial reporting treatment and analysis of non-recurring items (including discontinued operations, unusual or infrequent items) and changes in accounting policies) bit.ly/2Qdixeh
- LOS f: distinguish between the operating and non-operating components of the income statement bit.ly/2TCdTFv
- LOS g: describe how earnings per share is calculated and calculate and interpret a company’s earnings per share (both basic and diluted earnings per share) for both simple and complex capital structures bit.ly/2KoZQPH
- LOS h: distinguish between dilutive and antidilutive securities and describe the implications of each for the earnings per share calculation bit.ly/2QcwOrK
- LOS i: convert income statements to common-size income statements bit.ly/2Bsfp6d
- LOS j: evaluate a company’s financial performance using dilutive and antidilutive securities and financial ratios based on the income statement bit.ly/2FEXHAv
- LOS k: describe, calculate, and interpret comprehensive income bit.ly/2zmWSGV
- LOS l: describe other comprehensive income and identify major types of items included in it bit.ly/2QdhniV

[@M.R1429]

Thank you for your efforts! Please keep making videos.

[@damo925]

Thanks James!

[@tingw1807]

Thanks for making these videos !!!

[@analystprep]

My pleasure!

[@lucatintor4896]

Dear Prof. I can't really figure out diluted EPS, if the company is issuing a convertible bond as debts how it can get an interest, it must pay interest to bondholders which are the lenders and they are entitle to the common shares "deriving" from the hybrid instrument. Please revert thanks.

[@sobianazir4177]

Hello Sir Completion of sales method is not even used under converged standards. Why is still taught ? It is not even in the curriculum. I am I missing something ? Thx

[@khawlas_]

I have the same question here

[@someonespeci1697]

25% passing rate...

[@analystprep]

Yes, sadly... But CFA Institute said it should revert to pre-pandemic levels after the pandemic is over...