2025 - FSA On-Demand - Level 1
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Chapter 1: Introduction to Financial Statement Analysis

Chapter 1 Outline
Financial Statement Analysis - Why Does It Matter?
Introduction to Financial Statement Analysis
Role of Financial Reporting and Statement Analysis
Primary Financial Statements and Other Info Sources
Regulatory Authorities
Financial Statements and Supplementary Information
Balance Sheet and Statement of Comprehensive Income
Statement of Changes in Shareholders’ Equity
Cash Flow Statement
Financial Notes
Auditor’s Report
Financial Statement Analysis Framework
Chapter 1 Questions
Chapter 1 Answer Key
Chapter 2: Financial Reporting Standards

Chapter 2 Outline
Financial Reporting Standards - Why Does It Matter?
Introduction to Financial Reporting Standards
The Objective of Financial Reporting
Standard Setting Bodies
Accounting Standards Boards (Part 1)
Accounting Standards Boards (Part 2)
IFRS Framework
Qualitative Characteristics
Constraints on Financial Reports
The Elements of Financial Statements
General Requirements
Comparison and Monitoring
Chapter 2 Questions
Chapter 2 Answer Key
Chapter 3: Understanding Income Statements

Chapter 3 Outline
Income Statement - Why Does It Matter?
Introduction to the Income Statement
Revenue Recognition (Part 1)
Revenue Recognition (Part 2)
Revenue Transactions (Part 1)
Revenue Transactions (Part 2)
Variable Consideration
Contract Modifications
Principal-Agent Relationship
Expense Recognition (Part 1)
Expense Recognition (Part 2)
Doubtful Accounts
Depreciation and Amortization
Implications for the Financial Analyst
Changes in Accounting Policy
Income Statement Formulas (Part 1)
Income Statement Formulas (Part 2)
Common Size Analysis
Chapter 3 Questions
Chapter 3 Answer Key
Chapter 3 Question 1 Solution Video
Chapter 3 Question 2 Solution Video
Chapter 3 Question 3 Solution Video
Chapter 3 Question 4 Solution Video
Chapter 3 Question 5 Solution Video
Chapter 3 Question 8 Solution Video
Chapter 4: Understanding Balance Sheets

Chapter 4 Outline
Balance Sheet - Why Does It Matter?
Introduction to the Balance Sheet
Assets
Liquidity and the Operating Cycle
Working Capital
Current Assets
Cash, Cash Equivalents, and Marketable Securities
Accounts Receivable
Inventories
Other Current Assets
Current Liabilities
Non-Current Assets
Investment Property
Intangible Assets
Goodwill, Financial Assets, and Deferred Tax Assets
Non-Current Liabilities
Equity
Analysis of the Balance Sheet
Liquidity and Solvency Ratios
Chapter 4 Questions
Chapter 4 Answer Key
Chapter 5: Understanding Cash Flow Statements

Chapter 5 Outline
Cash Flow Statements - Why Does It Matter?
Introduction to Cash Flow Statements
Components and Format of the Cash Flow Statement
Non-Cash Transactions
Direct and Indirect Methods
Linkages and Preparation (Part 1)
Linkages and Preparation (Part 2)
Cash Flow Statement Analysis
Cash Flow Statement Analysis Steps
Common-Size Analysis
Free Cash Flow
Performance and Coverage Ratios
Chapter 5 Questions
Chapter 5 Answer Key
Chapter 6: Financial Analysis Techniques

Chapter 6 Outline
Financial Analysis Techniques - Why Does It Matter?
Introduction to Financial Analysis Techniques
Financial Analysis Techniques
Concepts of Ratio Analysis
Ratio Analysis
Common-Size Analysis
Graphs and Regression Analysis
Common Ratios Used in Financial Analysis
Activity Ratios
Activity Ratio Interpretation (Part 1)
Activity Ratio Interpretation (Part 2)
Liquidity Ratios and Calculations
Interpretation of Liquidity Ratios
Solvency Ratios
Calculation of Solvency Ratios
Interpretation of Solvency Ratios
Profitability Ratios
Interpretation of Profitability Ratios
DuPont Ratio Analysis
Equity Analysis (Part 1)
Equity Analysis (Part 2)
Equity Analysis (Part 3)
Credit Analysis
Business and Geographic Segments, Model Building and Forecasting
Chapter 6 Questions
Chapter 6 Answer Key
Chapter 6 Question 5 Solution Video
Chapter 7: Inventories

Chapter 7 Outline
Inventories - Why Does It Matter?
Introduction to Inventories
Specific ID, FIFO, Weighted Average
LIFO, Calculation of Cost of Sales
Periodic vs. Perpetual Inventory Systems
LIFO Reserves and LIFO Liquidity
Inventory Method Changes
Inventory Adjustments
Presentation and Disclosure
Inventory Ratios
Chapter 7 Questions
Chapter 7 Answer Key
Chapter 7 Question 5 Solution Video
Chapter 8: Long-Lived Assets

Chapter 8 Outline
Long-Lived Assets - Why Does It Matter?
Introduction to Long-Lived Assets
Acquisition of PP&E Assets
Acquisition of Intangibles
Internally Developed Intangible Assets
Intangible Assets Acquired in a Business Combination
Capitalizing vs. Expensing
Capitalization of Interest Costs
Capitalization of Internal Development Costs
Depreciation and Amortization of Long-Term Assets
Depreciation Methods and Calculation of Depreciation Expenses
Amortization Methods and Calculation of Amortization Expenses
Revaluation Model
Impairment
Derecognition of Long-Lived Assets
Presentation and Disclosure
Chapter 8 Questions
Chapter 8 Answer Key
Chapter 8 Question 1 Solution Video
Chapter 9: Income Taxes

Chapter 9 Outline
Income Taxes - Why Does It Matter?
Introduction to Income Tax
Differences Between Accounting Profit and Taxable Income
Permanent Differences
Temporary Differences
Unused Tax Loss and Tax Credits
Chapter 9 Questions
Chapter 9 Answer Key
Chapter 9 Question 1 Solution Video
Chapter 10: Long-Term Liabilities

Chapter 10 Outline
Long-Term Liabilities - Why Does It Matter?
Introduction to Long-Term Liabilities and Bonds Payable
Accounting for Bond Issuance (Part 1)
Accounting for Bond Issuance (Part 2)
Accounting for Bond Amortization, Interest Expense, and Interest Payments (Part 1)
Accounting for Bond Amortization, Interest Expense, and Interest Payments (Part 2)
Fair Value Option and Derecognition of Debt
Debt Covenants and Presentation and Disclosure of Long-Term Debts
Lease Accounting
Lessee Accounting
Lessor Accounting
Financial Reporting for Post-Employment and Share-Based Compensation Plans
Pensions
Chapter 10 Questions
Chapter 10 Answer Key
Chapter 10 Question 5 Solution Video
Chapter 11: Financial Reporting Quality

Chapter 11 Outline
Financial Reporting Quality - Why Does It Matter
Financial Reporting Quality
Conceptual Overview
Biased Accounting Choices
Conservative vs. Aggressive Financial Reporting
Motivations
Mechanisms that Discipline Financial Reporting Quality
Detection
Chapter 11 Questions
Chapter 11 Answer Key
Chapter 12: Introduction to Financial Statement Modeling

Chapter 12 Outline
Financial Statement Modeling - Why Does It Matter?
Introduction to Financial Statement Modeling
Income Statement Forecasting
Statement of Cash Flows
Biases
External Forces Affecting Models
Chapter 13: Applications of Financial Statement Analysis

Chapter 13 Outline
Applications of Financial Statement Analysis - Why Does It Matter?
Introduction to Applications of Financial Statement Analysis
Evaluating Past Performance
Projecting Future Performance
An Input to Market Based Valuation
Projecting Multiple Period Performance
Assessing Credit Risk
Screening for Potential Equity Investments
Analyst Adjustments
Chapter 13 Questions
Chapter 13 Answer Key

Chapter 11: Financial Reporting Quality

This chapter formally defines the concept of financial reporting quality. The relationship between earnings quality and financial reporting quality is discussed as well. Finally, the impact of each on financial statement analysis is explained.

11 Lessons