Hey guys, I am progressing well through the CFA curriculum and I am currently on the Equity section. ( Started at the start of the books). However, one common thing that I have experienced in my studies so far, is that I am not confident enough with the Income Statement.
E.g. What is deducted before EBITDA, before EBIT etc. Does anyone of you have a good summary over the different items on the Income Statement and where they show up? Things to look out for etc. Thanks a lot for the help - much appreciated.
A few follow - up questions on the items between EBIT and EBT:
Financial Income - is this gain from the firms investments? Any other situations that this will cover?
Financial Expenses - I assume this will contain interest expenses, anything else? Exceptional G/L - what does this constitute of? Anything that is likely to show up on the exam?
No. This is income for non-operating activities such as received interest on cash deposit on bank accounts (cash pooling etc) or positive exchange currency differences.
Same but with opposite prefix. Interest paid on borrowings, negative currency differences and similar.
No longer exists according to IFRS but may be shown mostly in internal reporting. The main thing here may be non recurrent gains and losses such sale of company’s assets.