Cfa Level 1 Fra Complete Mastery

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Deep dive into FRA with the Bestselling CFA® prep course provider | With visual learning + Quizzes

Last updated 2022-01-10 | 4.6

- 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.

What you'll 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 capitalisation 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.

* Requirements

* Basic mathematics knowledge

Description

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 capitalisation 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.

Course content

15 sections • 68 lectures

Introduction 2 lectures

How To Get The Most Out Of This Course Preview 03:40

Formulas, Definitions, Diagrams at your FINGERTIPS! Preview 00:46

Financial Statement Analysis: An Introduction 4 lectures

Major Financial Statements Preview 08:01

Auditor’s Report and Other Sources of Information Preview 04:23

Financial Statement Analysis Framework Preview 02:54

Test Your Understanding Preview 00:08

Financial Reporting Mechanics (removed from 2019 exam onwards) 5 lectures

Financial Reporting Mechanics has been removed from 2019 Exam Onwards Preview 00:13

Business and Accounting Process Preview 13:28

Accrual Accounting and Valuation Adjustments Preview 05:56

Accounts and Financial Statements Preview 04:55

Test Your Understanding Preview 00:09

Financial Reporting Standards 4 lectures

Standard Setting Bodies Preview 06:54

The IFRS Framework Preview 08:59

Convergence, Comparison, and Evolution of Standards Preview 04:04

Test Your Understanding Preview 00:09

Understanding Income Statements 10 lectures

Components and Format of an Income Statement Preview 04:55

Revenue Recognition (updated for 2020) Preview 12:33

Inventory Expense Recognition Preview 09:40

Depreciation and Amortisation Expense Recognition Preview 06:38

Non-Recurring Items and Non-Operating Items Preview 05:42

Basic Earnings Per Share Preview 08:30

Diluted Earnings Per Share Preview 12:41

Common-Size and Ratio Analysis Preview 03:49

Comprehensive Income Preview 02:29

Test Your Understanding Preview 00:09

Understanding Balance Sheets 8 lectures

Components and Format of the Balance Sheet Preview 04:52

Current Assets Preview 05:58

Current Liabilities Preview 02:07

Non-Current Assets Preview 12:24

Non-Current Liabilities Preview 03:05

Owners’ Equity Preview 07:19

Analysis of Balance Sheets Preview 03:54

Test Your Understanding Preview 00:09

Understanding Cash Flow Statements 4 lectures

Principles and Classifications of Cash Flows Preview 07:02

Methods of Presentation Preview 17:17

Analysis of Cash Flow Statements Preview 12:43

Test Your Understanding Preview 00:09

Financial Analysis Techniques 5 lectures

Analytical Process Tools and Techniques Preview 10:02

Activity, Liquidity and Solvency Ratios Preview 17:08

Profitability Ratios and DuPont Analysis Preview 09:36

Equity and Credit Analysis Preview 12:56

LOS 27e. Calculate and interpret ratios used in equity analysis and credit analysis.

LOS 27f. Explain the requirements for segment reporting and calculate and interpret segment ratios.

LOS 27g. Describe how ratio analysis and other techniques can be used to model and forecast earnings

Test Your Understanding Preview 00:09

Inventories 4 lectures

Inventory Accounting Preview 10:39

LOS 28a. Distinguish between costs included in inventories and costs recognised as expenses in the period in which they are incurred;

LOS 28g. Describe the measurement of inventory at the lower of cost and net realisable value;

LOS 28h. Describe implications of valuing inventory at net realisable value for financial statements and ratios;

Inventory Valuation Methods Preview 13:38

LOS 28b. Describe different inventory valuation methods (cost formulas);

LOS 28c. Calculate and compare cost of sales, gross profit, and ending inventory using different inventory valuation methods and using perpetual and periodic inventory systems;

LOS 28d. Calculate and explain how inflation and deflation of inventory costs affect the financial statements and ratios of companies that use different inventory valuation methods;

The LIFO Method Preview 11:11

LOS 28e. Explain LIFO reserve and LIFO liquidation and their effects on financial statements and ratios;

LOS 28f. Convert a company’s reported financial statements from LIFO to FIFO for purposes of comparison;

LOS 28i. Describe the financial statement presentation of and disclosures relating to inventories;

LOS 28j. Explain issues that analysts should consider when examining a company’s inventory disclosures and other sources of information;

LOS 28k. Calculate and compare ratios of companies, including companies that use different inventory methods;

LOS 28l. Analyze and compare the financial statements of companies, including companies that use different inventory methods.

Test Your Understanding Preview 00:09

Long-Lived Assets 5 lectures

Capitalisation of Long-Lived Assets Preview 09:57

LOS 29a. Distinguish between costs that are capitalised and costs that are expensed in the period in which they are incurred.

LOS 29b. Compare the financial reporting of the following types of intangible assets: purchased, internally developed, acquired in a business combination.

LOS 29c. Explain and evaluate how capitalising versus expensing costs in the period in which they are incurred affects financial statements and ratios

Depreciation of PP&E Preview 14:58

LOS 29d. Describe the different depreciation methods for property, plant, and equipment and calculate depreciation expense.

LOS 29e. Describe how the choice of depreciation method and assumptions concerning useful life and residual value affect depreciation expense, financial statements, and ratios.

Amortisation of Intangibles Preview 08:38

LOS 29f. Describe the different amortisation methods for intangible assets with finite lives and calculate amortisation expense.

LOS 29g. Describe how the choice of amortisation method and assumptions concerning useful life and residual value affect amortisation expense, financial statements, and ratios.

Impairments, Revaluation and Derecognition Preview 15:17

LOS 29h. Describe the revaluation model.

LOS 29i. Explain the impairment of property, plant, and equipment and intangible assets.

LOS 29j. Explain the derecognition of property, plant, and equipment and intangible assets.

LOS 29k. Explain and evaluate how impairment, revaluation, and derecognition of property, plant, and equipment and intangible assets affect financial statements and ratios.

LOS 29l. Describe the financial statement presentation of and disclosures relating to property, plant, and equipment and intangible assets.

LOS 29m. Analyze and interpret financial statement disclosures regarding property, plant, and equipment and intangible assets.

LOS 29n. Compare the financial reporting of investment property with that of property, plant, and equipment.

Test Your Understanding Preview 00:09

Income Taxes 3 lectures

Deferred Taxes Preview 15:00

LOS 30a. Describe the differences between accounting profit and taxable income and define key terms, including deferred tax assets, deferred tax liabilities, valuation allowance, taxes payable, and income tax expense.

LOS 30b. Explain how deferred tax liabilities and assets are created and the factors that determine how a company’s deferred tax liabilities and assets should be treated for the purposes of financial analysis.

LOS 30c. Calculate the tax base of a company’s assets and liabilities.

LOS 30f. Distinguish between temporary and permanent differences in pretax accounting income and taxable income.

LOS 30g. Describe the valuation allowance for deferred tax assets—when it is required and what impact it has on financial statements.

Deferred Taxes II Preview 15:14

LOS 30d. Calculate income tax expense, income taxes payable, deferred tax assets, and deferred tax liabilities, and calculate and interpret the adjustment to the financial statements related to a change in the income tax rate.

LOS 30e. Evaluate the impact of tax rate changes on a company’s financial statements and ratios.

LOS 30h. Explain recognition and measurement of current and deferred tax items.

LOS 30i. Analyze disclosures relating to deferred tax items and the effective tax rate reconciliation and explain how information included in these disclosures affects a company’s financial statements and financial ratios.

LOS 30j. Identify the key provisions of and differences between income tax accounting under International Financial Reporting Standards (IFRS) and US generally accepted accounting principles (GAAP).

Test Your Understanding Preview 00:09

Non-Current Liabilities 6 lectures

Bonds Preview 18:22

LOS 31a. Determine the initial recognition, initial measurement and subsequent measurement of bonds.

LOS 31b. Describe the effective interest method and calculate interest expense, amortisation of bond discounts/premiums, and interest payments.

Bonds II Preview 10:56

LOS 31c. Explain the derecognition of debt.

LOS 31d. Describe the role of debt covenants in protecting creditors.

LOS 31e. Describe the financial statement presentation of and disclosures relating to debt.

Leases (updated for 2020) Preview 10:28

LOS 31f. Explain motivations for leasing assets instead of purchasing them.

LOS 31g. Distinguish between a finance lease and an operating lease from the perspectives of the lessor and the lessee.

LOS 31h. Determine the initial recognition, initial measurement, and subsequent measurement of finance leases.

LOS 31i. Compare the disclosures relating to finance and operating leases.

Pension Plans Preview 09:41

Solvency Ratios Preview 04:09

Test Your Understanding Preview 00:09

Financial Reporting Quality 3 lectures

Financial Reporting Quality Concepts Preview 11:41

LOS 32a. Distinguish between financial reporting quality and quality of reported results (including quality of earnings, cash flow, and balance sheet items).

LOS 32b. Describe a spectrum for assessing financial reporting quality.

LOS 32d. Describe motivations that might cause management to issue financial reports that are not high quality.

LOS 32e. Describe conditions that are conducive to issuing low-quality, or even fraudulent, financial reports.

LOS 32f. Describe mechanisms that discipline financial reporting quality and the potential limitations of those mechanisms