Topics in Long-Term Liabilities and Equity (2024/2025 CFA® Level I Exam – FSA – Learning Module 8)

Master “Topics in Long-Term Liabilities & Equity” for the 2024/2025 CFA® Level I – Financial Statement Analysis (FSA) – LM8. Professor Jim breaks down the accounting and analysis of leases (lessee & lessor), defined contribution vs. defined benefit pensions, stock-based compensation, and the key disclosures that impact ratios—under both IFRS & US GAAP.

What you’ll learn

Operating vs. finance/capital leases: recognition, income statement & cash-flow effects

Lessee vs. lessor accounting (PV tests, profit on “sale-type” leases)

Pension accounting: service cost, interest cost, remeasurements/OCI, funded status

US GAAP vs. IFRS components (3 vs. 5) you must memorize

Stock options/RSUs: fair-value expensing, vesting, dilution & EPS

Required disclosures and how to analyze them

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Topic 5 – Financial Statements Analysis
Learning Module 8 – Topics in Long-Term Liabilities and Equity
LOS : Explain the financial reporting of leases from the perspectives of lessors and lessees.
LOS : Explain the financial reporting of defined contribution, defined benefit, and stock-based compensation plans.
LOS : Describe the financial statement presentation of and disclosures relating to long-term liabilities and share-based compensation.

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