CFA Level 2: Financial Statement Analysis
Master the CFA Level II Financial Statement Analysis topic area. This course covers all six official 2026 Learning Modules across six teaching chapters: intercorporate investments — the classification, measurement, and disclosure of financial assets, associates, joint ventures, business combinations, and special purpose and variable interest entities under IFRS and US GAAP, with the equity-income and carrying-amount chains, the full-versus-partial goodwill arithmetic, and the exact effect every method has on the ratios; employee compensation — the defined-benefit roll-forward from obligation to funded status, the total periodic pension cost proved two independent ways, the IFRS and US GAAP splits between profit or loss and OCI, the analyst adjustments the disclosures make possible, and share-based compensation from grant-date fair value through the treasury stock method to a three-year forecast of expense and share count; multinational operations — presentation, functional, and local currency, transaction exposure, the current rate and temporal methods computed line by line with the translation adjustment and the translation loss each verified against their own exposure, hyperinflation under IFRS and US GAAP, the effective tax rate moved by geographic mix alone, and sales growth decomposed into the part that recurs and the part that does not; the analysis of financial institutions — Basel III capital adequacy, the full CAMELS framework applied to a bank, what CAMELS misses, and the ratios that decide an insurer; the evaluation of reporting quality — the conceptual framework, accruals ratios, the mean reversion of earnings components, cash flow and balance sheet quality, and the screening models, applied to a company that fails them; and the integration of every technique into one analytical restatement that takes reported leverage of 1.00 times EBITDA to a defensible 1.31 times. Every worked problem is stated exam-style and solved by hand first — with BA II Plus keystrokes where the calculator is the exam-day tool — then validated in runnable Python, and assessed in the exam's own vignette format: item sets with data exhibits, three-option questions, and distractors built from real candidate errors. The course closes with a full timed item-set exam. Aligned to the 10-15% CFA Level II exam weight.
- Level: intermediate
- Duration: 4 weeks
- 8 sections
- Price: $20
Topics: intercorporate investments, IFRS 9, fair value through profit or loss, fair value through OCI, equity method, excess purchase price allocation, joint ventures, acquisition method, full goodwill, partial goodwill, non-controlling interest, variable interest entity, special purpose entity, securitization, defined benefit pension, funded status, total periodic pension cost, remeasurement, share-based compensation, treasury stock method, diluted EPS, functional currency, presentation currency, current rate method, temporal method, cumulative translation adjustment, hyperinflation, effective tax rate, sales growth decomposition, CAMELS, Basel III, net interest margin, efficiency ratio, liquidity coverage ratio, combined ratio, earnings quality, accruals ratio, mean reversion, Beneish M-score, Altman Z-score, cash flow quality, balance sheet quality, LIFO reserve, financial statement adjustments, CFA Level II, financial statement analysis, item sets, vignettes
What's inside
- Financial Statement Analysis (CFA Level II)
- Chapter 1: Intercorporate Investments
- Chapter 2: Employee Compensation — Post-Employment and Share-Based
- Chapter 3: Multinational Operations
- Chapter 4: Analysis of Financial Institutions
- Chapter 5: Evaluating Quality of Financial Reports
- Chapter 6: Integration of Financial Statement Analysis Techniques
- Chapter 7: Financial Statement Analysis Item-Set Exam