CPD Principles of Financial Statement Analysis

(FPI 12 CPD points) Face – Face Workshop (Online workshop 4 CPD Points)
FPI Approval no: FPI22073450

Description: This unit standard requires learners to understand the history, and different approaches to analysis and perform both technical and fundamental analysis as input into the trading system. Learners will be expected to apply the principles of scenario planning to fundamental analysis.

SPECIFIC OUTCOMES

At the end of this section, learners will be able to:

Discuss the history and alternative approaches to analysis
Perform technical analysis as input
Perform fundamental analysis as input into the trading system.
Apply the principles of scenario planning to fundamental analysis.
ASSESSMENT CRITERIA:

1. Discuss the history and alternative approaches to analysis

· The history and development of technical and fundamental analysis are related with examples.

· The alternative approaches and information required in technical and fundamental analyses are compared and the difference between them described orally and in writing with examples.

2. Perform technical analysis as input

· Cycles and trends are identified, tracked and described with examples.

· Changes in the market are predicted using charting techniques.

· Buy and sell signals are identified using charting techniques.

3. Perform fundamental analysis as input into the trading strategy

· The drivers of profit in the industry under investigation are identified and the reasons given why they can be regarded as drivers.

· The performance and profitability of a company is evaluated based on its financial statements.

· The business and financial risks of a company is evaluated based on its financial statements.

· The core competencies of the company are identified through research.

· Source of competitive advantage of a company are identified through research.

· Sound recommendations are made based on research findings and analysis.

4. Apply the principles of scenario planning to fundamental analysis

· Threats and opportunities in the industry are identified through research.

· Regulations impacting on the industry are analysed and an indication given of their impact on the sector and on individual investors.

· Scenarios are formulated based on research and analysis findings.

· Sound recommendations are made based on the scenarios identified.