Accounting, Reporting & Analysis Frameworks

  1. F2

    Financial Statement Architecture

    The map. Three statements, what each answers, and how they lock together.

    • Framework

      How to Read a Set of Financial Statements in Order

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    • Framework

      How to Perform Trend Analysis on Financial Statements

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  2. F3

    Income Statement, Profitability and Tax

    The first statement, taught in the order it is built. Revenue down to earnings per share, including tax.

    • Framework

      How to Read an Income Statement: A Six-Step Order

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  3. F4

    Balance Sheet and Capital Employed

    The second statement. What is owned, owed and left, and the capital base returns are measured against.

  4. F5

    Cash Flow and Liquidity

    The third statement, and the reconciliation between the other two.

    • Framework

      How to Read a Cash Flow Statement: A Six-Step Order

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    • Framework

      How to Reconcile Cash Flow With the Balance Sheet

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  5. F6

    Revenue, Receivables and Working Capital

    The first cross-statement item. Revenue recognition and the cash cycle it creates.

    • Framework

      How to Analyse Revenue Quality: A Six-Step Order

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  6. F7

    Inventory, Cost Accounting and Margins

    The cost side of the same cycle, and the margin ladder it produces.

    • Framework

      How to Analyse Profit Margins: A Procedure in Six Steps

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    • Framework

      How to Interpret Operating Leverage in a Company's Results

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  7. F8

    Fixed Assets, Leases and Intangibles

    The long-lived asset base: what is capitalised, how it is written down, and what leases changed.

    • Framework

      How to Analyse Capex Intensity and Asset Quality

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  8. F9

    Debt, Equity and Financial Instruments

    The funding side of the balance sheet, and where the classification becomes a judgement.

    • Framework

      How to Analyse Debt Maturity and Refinancing Risk

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  9. F10

    Consolidation and Business Combinations

    The group. Control, what gets consolidated, and what goodwill is.

    • Framework

      How to Analyse Group Structure and Minority Interests

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  10. F11

    Cash, Investments and Financial Assets

    What a company does with surplus cash, and how those holdings are carried.

    • Framework

      How to Analyse Cash Conversion

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    • Framework

      How to Interpret a Company's Investment Income and Fair-Value Gains

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  11. F12

    Financial Ratios and Performance Diagnostics

    The first diagnostic family. Ratios read across the statements rather than down one.

    • Framework

      How to Perform Common-Size Analysis: A Six-Step Order

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  12. F13

    Earnings Quality, Red Flags and Forensics

    The judgement family. Whether the reported number is a sound base for a forecast.

    • Framework

      How to Prepare for an Earnings Call Using Public Disclosures

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    • Framework

      How to Analyse Related-Party Transactions

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    • Framework

      How to Spot Accounting Red Flags in an Annual Report

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  13. F14

    Annual Reports, Notes and Disclosure Reading

    The document layer. Where the statements actually appear, and what surrounds them.

    • Framework

      How to Read an Annual Report: The Order That Makes It Work

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