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Ethical and Professional StandardsQuantitative MethodsEconomicsFinancial Statement AnalysisCorporate IssuersEquity InvestmentsFixed IncomeDerivativesAlternative InvestmentsPortfolio Management

Level I · 2026 curriculum · 11–14% of the exam

Financial Statement Analysis

Financial Statement Analysis is one of the heaviest topics: reading, adjusting and comparing the income statement, balance sheet and cash flow statement under IFRS and US GAAP.

Exam weight11–14%
≈ Questions in a 180-question exam22

What the questions cover

  • Revenue and expense recognition, and earnings per share
  • Balance sheet classification and measurement
  • Cash flow statements (direct and indirect) and free cash flow
  • Ratio analysis, including DuPont analysis
  • Inventories, long-lived assets, income taxes and long-term liabilities
  • Financial reporting quality and warning signs
  • Differences between IFRS and US GAAP

How to study it

  • For every accounting choice, ask how it moves income, assets, cash flow and the key ratios.
  • Keep a one-page list of IFRS vs US GAAP differences and revise it often.
  • Table questions reward a steady routine: identify the line items you need first, then calculate.

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