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Financial Reporting

How Common Size Analysis Works

Vertical Analysis of Income Statements, Balance Sheets, and Cashflow Statements

1 CPD credit on completion
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Certificate on completion
Downloadable resources
Self-paced learning

About This Course

Course Information

The learning outcomes from this CPD technical update course include: Understanding common size analysis Appreciate the impact on comprehensive income The impacts on cashflow statements

Certificate on Completion

This course is made up of videos, questions and additional reading materials, and accounts for 1 unit of CPD. One unit is the equivalent of one hour of learning.

Course Sections

This course is made up of the following sections:

  • Impact on comprehensive income (video)
  • Impact on comprehensive income (quiz)
  • Understanding cashflow (video)
  • Understanding cashflow (quiz)

What You Will Learn

  • Apply vertical analysis to express income statement items as a percentage of revenue
  • Apply vertical analysis to express balance sheet items as a percentage of total assets
  • Calculate the effective tax rate and closing equity from given financial data
  • Identify items that appear in other full income versus the income statement
  • Explain how common size analysis applies to the cashflow statement, including the classification of operating, investing, and financing activities

Who This Course Is For

  • Accountants and analysts who use ratio analysis and need to add common size techniques
  • Finance professionals who prepare or review management reports with comparative analysis
  • Anyone learning financial statement analysis who wants to understand vertical analysis methods

Prerequisites

  • Familiarity with the income statement, balance sheet, and cashflow statement
  • Basic numeracy for percentage calculations

Frequently Asked Questions

Course Details

CPD Credits1
CertificateYes

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CPD certificate on completion
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