Understanding income statement | Financial Statement Analysis | CFA Level 1 2025

Hello everyone! In this video, I break down the Income Statement and all its cool components in a simple, friendly way. if you’re wondering what makes up an income statement, you're in the right place. Here’s what we cover: Income Statement Basics: A clear explanation of what an income statement is and why it matters. Common Size Statement Format: How to read and use a common size income statement to compare companies. Expense Classification: A look at how expenses are organized and why that’s important. Minority Interest: What minority interest means in the context of the income statement. Revenue Recognition: Understanding when and how revenue is recorded. Changes in Accounting Principles & Estimates: How adjustments in accounting can affect your financial statements. Revenue Reporting – Gross vs Net: A simple guide to understanding the differences between gross and net revenue. Whether you're a finance student, an aspiring CFA candidate, or just curious about financial statements, this video will help you get a clear, practical understanding of each topic. Got it? Then hit that play button! If you find this video helpful, please like, subscribe, and drop a comment below. Thanks for watching, and happy learning!