I have learned that Financial Reporting and Analysis is one subject that appears to be the most difficult for people from Non Finance/Commerce background because it heavily draws from Accountancy.
I want to fill the gaps because I am also not from the Finance Background.
I have come across a course on http://www.coursera.org on Introduction to Financial Accounting , would be helpful If I take it.
Should I be taking such a course , will it function like a precursor to Financial Reporting and Analysis for Level 1?
The topics covered in the course are :
Introduction and Balance Sheet
1.1: Financial Reporting Overview
1.2.1: Balance Sheet Equation
1.2.2: Assets, Liabilities, and Stockholders’ Equity
1.3.1: Debit and Credit Bookkeeping I
1.3.2: Debit and Credit Bookkeeping II
1.4.1: Relic Spotter Case, Part 1
1.4.2: Relic Spotter Case, Part 2
1.5: 3M Company: Tour of an Annual Report (10:06)
Accrual Accounting and the Income Statement
2.1.1: Revenues and Expenses
2.1.2: Relic Spotter Case, Part 3
2.2.1: Adjusting Entries
2.2.2: Adjusting Entries II
2.2.3: Relic Spotter Case, Part 4
2.3: Financial Statements and Closing Entries
2.4: 3M Company: Income Statement and Balance Sheet
3.1.1: Operating, Investing, and Financing Cash Flows
3.1.2: Relic Spotter Case, Part 5
3.2.1: Statement of Cash Flows
3.2.2: Relic Spotter Case, Part 6
3.3.1: More SCF Topics and EBITDA
3.3.2: Cash Flow vs. Earnings vs. EBITDA Examples
3.4: 3M Company: Cash Flows
Working Capital Assets
4.1.1: Accounts Receivable
4.1.2: Estimating Uncollectible Accounts
4.2: Accounts Receivable Disclosure Example
4.3.2: LIFO vs. FIFO
4.4: Inventory Disclosure Example
4.5: 3M Company: Accounts Receivable and Inventory
5.1: Overview of Ratio Analysis
5.2: Plainview Technology Case, Part 1
5.3: Plainview Technology Case, Part 2
5.4: Plainview Technology Case, Part 3
5.5: 3M Company: Ratios
Long-lived Assets and Marketable Securities
6.1.1: Tangible Assets I
6.1.2: Tangible Assets II
6.2: Intangible Assets and Goodwill
6.3: Long-lived Assets Disclosure Example
6.4.1: Marketable Securities I
6.4.2: Marketable Securities II
6.5: Marketable Securities Disclosure Example
6.6: 3M Company: Long-lived Assets & Marketable Securities
Liabilities and Long-term Debt
7.1.1: Time Value of Money: Future Value
7.1.2: Time Value of Money: Present Value
7.1.3: Time Value of Money: Annuities
7.2.1: Long-Term Debt and Bonds I
7.2.2: Long-Term Debt and Bonds II
7.3: Leases (28:33)
7.4: 3M Company: Long-Term Debt and Leases
8.1: Income Taxes: Overview and Terminology
8.2.1: Deferred Tax Liabilities
8.2.2: Deferred Tax Assets and Tax Rate Changes
8.3: Valuation Allowances and NOLs
8.4: Income Tax Disclosure Example
8.5: Taxes, SCF, and Marketable Securities
8.6: 3M Company: Income Taxes
9.1: Share Issuances and Repurchases
9.2: Dividends, Splits, and AOCI
9.3: Stock-based Compensation
9.4: Earnings Per Share
9.5.1: Contributed Capital Disclosure Example
9.5.2: Stock-based Compensation Disclosure Example
9.6: 3M Company: Shareholders’ Equity
Financial Statement Analysis
10.1: FSA I: Business, Strategy, and Competitive Environment
10.2: FSA II: Growth and Earnings Performance
10.3: FSA III: Cash Flow and Ratios
10.4: FSA IV: Investing and Financing Activities
The issue is I don’t know if there’s simplification or things that are adjusted for the CFA curriculum vs Coursera’s course. I know for sure in the accounting world of US GAAP vs IFRS things may change (in the real world) and may not be as complicated in CFA. My personal view is that not having finance background is OK, but if you want to learn (just for interest) it’s not a bad idea to try out Coursera, bearing in mind that if there’s any conflict the CFA materials will supersede (for exam purposes).
Hi @k10111v, the CFAI text for Financial Reporting Analysis is basic enough that you don’t need to read anything else as a pre-requisite. It is also long enough that it will likely take you a few months if you are like me and like to get deep into your understanding. And finally, if you are registering for the CFA Level 1 exam in June, which is my assumption, at this point you don’t want to be distracted with another text on a related subject; it may get you confused at times. My advice to you would be to focus on the CFAI material, and try to master it. It will pay you amazing dividends!… If you want, keeping a basic text on the side, just in case you need to understand a concept or something like that could be helpful, but definitely not focus on that one… Good luck!
My 2 cents are that anything helps, but at the end of the day you need to know the CFA material thoroughly. If time is no issue, and you hate reading the same material multiple times, then read the non-CFA material first, then dive into the CFA material after (and never go back to the non-CFA material before the exam as there could be differences between the books and you want to completely forget those before the exam).
Reading the other material could help for sure. It will prepare your mind better for the CFA material. But it won’t give you an edge by giving you extra knowledge, cause the CFA exam only covers stuff in the CFA material. As I said above, the main advantage is giving yourself more knowledge before diving into the CFA stuff, especially if you have a hard time reading the same material multiple times (you can go through the CFA/Schweser stuff only 1 or 2 times instead of 3 times for example).
Ok, @k10111v, in that case you may want to take that coursera as a first introduction, before you start studying for the CFA Level 1.
Just be careful with the time; for example, try to take that course in a pre-determined period of time (say 3 months). Then, when you finally start studying for CFA, you have enough time for the whole syllabus. The exam covers a lot of information and time really flies when you are into it.
I’m a cpa & this section would b a lot easier if you understood the underlying journal entries. Even people with investment backgrounds find this section the hardest. However you will obv be learning JEs more than anything else in your class n that’s only going to give you an understanding, its not really discussed in the curriculum
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