{"id":2435,"date":"2019-09-12T13:33:00","date_gmt":"2019-09-12T13:33:00","guid":{"rendered":"https:\/\/analystprep.com\/cfa-level-1-exam\/?p=2435"},"modified":"2026-02-09T06:34:48","modified_gmt":"2026-02-09T06:34:48","slug":"information-sources-analysts-use","status":"publish","type":"post","link":"https:\/\/analystprep.com\/cfa-level-1-exam\/financial-reporting-and-analysis\/information-sources-analysts-use\/","title":{"rendered":"Other Information Sources"},"content":{"rendered":"\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"VideoObject\",\n  \"name\": \"Introduction to Financial Statement Analysis (2025 Level I CFA\u00ae Exam \u2013 FRA \u2013 Module 1)\",\n  \"description\": \"CFA\u00ae Level I \u2013 Financial Reporting & Analysis (Module 1). This lesson explains the role of financial reporting and financial statement analysis, the purpose of key financial statements (balance sheet, income statement, cash flow statement, and statement of changes in equity), the importance of notes and disclosures, audit reports, internal controls, additional analyst information sources, and the steps in the financial statement analysis framework.\",\n  \"uploadDate\": \"2022-03-31\",\n  \"thumbnailUrl\": \"https:\/\/img.youtube.com\/vi\/TEUq4EDZCmA\/hqdefault.jpg\",\n  \"contentUrl\": \"https:\/\/www.youtube.com\/watch?v=TEUq4EDZCmA\",\n  \"embedUrl\": \"https:\/\/www.youtube.com\/embed\/TEUq4EDZCmA\",\n  \"duration\": \"PT29M01S\"\n}\n<\/script>\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"QAPage\",\n  \"mainEntity\": {\n    \"@type\": \"Question\",\n    \"name\": \"What information is least likely to be presented in a proxy statement?\",\n    \"text\": \"Which of the following pieces of information is least likely presented in a proxy statement?\\n\\nA. Information on stock performance.\\n\\nB. Information on revenues and expenses.\\n\\nC. Information on management and director compensation.\",\n    \"answerCount\": 1,\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"The correct answer is B. Proxy statements are distributed to shareholders before voting meetings and typically include information about stock performance and management and director compensation. Detailed information on revenues and expenses is found in financial statements rather than proxy statements.\"\n    }\n  }\n}\n<\/script>\n\n\n\n<p><iframe loading=\"lazy\" src=\"\/\/www.youtube.com\/embed\/TEUq4EDZCmA\" width=\"611\" height=\"343\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>To get a fairly accurate picture of a company\u2019s financial position and financial performance, analysts tend to base their financial statement analysis on the company\u2019s audited, annual financial statements. The audit of the annual financial statements, in this case, must have been done by an independent auditor. There are, however, other important sources of information that can be relied upon in this process to facilitate informed investment decision making.<\/p>\n<p><a style=\"display: block; margin: 28px 0 32px; padding: 15px 22px; border: 2px solid #2563eb; border-radius: 18px; text-align: center; color: #2563eb; text-decoration: none; font-weight: 500; font-size: 15px; background-color: #ffffff;\" href=\"https:\/\/analystprep.com\/free-trial\/\" target=\"_blank\" rel=\"noopener noreferrer\"> Sharpen your financial statement analysis with real exam-style questions. <\/a><\/p>\n<h2><strong>Information Sources Other Than Annual Financial Statements<\/strong><\/h2>\n<p>Other than annual financial statements and supplementary information, financial statement analysis can be conducted using the information provided by a company in its annual report or other publicly available documents such as proxy statements. Such sources offer information on:<\/p>\n<ul>\n<li>management and director compensation;<\/li>\n<li>stock performance; and<\/li>\n<li>any potential conflicts of interest which may exist between the company\u2019s management and the board of directors, or shareholders<\/li>\n<\/ul>\n<p>Companies also prepare interim financial reports typically on a semiannual or quarterly basis, depending on regulatory requirements. These interim reports, which are usually not audited, provide the basic financial statements (statement of financial position, statement of comprehensive income, statement of changes in equity, and statement of cash flows), condensed notes as well as updated information on a company\u2019s performance and financial position since the last audited period.<\/p>\n<p>Information may also be presented on company websites, press releases, and in conference calls between a company and analysts and investors.<\/p>\n<p>Additionally, periodic earning announcements, which are a form of press release usually occurring well before a company files its formal financial statements, are considered to be particularly useful to analysts.<\/p>\n<blockquote>\n<h2><strong>Question<\/strong><\/h2>\n<p>Which of the following pieces of information is <em>least likely<\/em>\u00a0presented in a proxy statement?<\/p>\n<ol style=\"list-style-type: upper-alpha;\">\n<li data-tadv-p=\"keep\">Information on stock performance.<\/li>\n<li data-tadv-p=\"keep\">Information on revenues and expenses.<\/li>\n<li data-tadv-p=\"keep\">Information on management and director compensation.<\/li>\n<\/ol>\n<p><strong>Solution<\/strong><\/p>\n<p>The correct answer is <strong>B<\/strong>.<\/p>\n<p>A proxy statement is a statement bearing information relating to matters that will be put to a vote at the company\u2019s meeting with shareholders. It is distributed to shareholders ahead of the meeting. Proxy statements usually include information on stock performance and management and director compensation, but not information on revenues and expenses.<\/p>\n<\/blockquote>\n<div style=\"text-align: center; margin-top: 40px;\"><a style=\"display: inline-block; padding: 17px 48px; background-color: #2563eb; color: #ffffff; text-decoration: none; border-radius: 18px; font-weight: bold; font-size: 17px; box-shadow: 0 6px 18px rgba(37,99,235,0.25);\" href=\"https:\/\/analystprep.com\/free-trial\/\" target=\"_blank\" rel=\"noopener noreferrer\"> Start Free Trial \u2192 <\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>To get a fairly accurate picture of a company\u2019s financial position and financial performance, analysts tend to base their financial statement analysis on the company\u2019s audited, annual financial statements. The audit of the annual financial statements, in this case, must&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-2435","post","type-post","status-publish","format-standard","hentry","category-financial-reporting-and-analysis","blog-post","no-post-thumbnail","animate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Standard IV(B) \u2013 Additional Compensation | CFA Level 1<\/title>\n<meta name=\"description\" content=\"Learn about CFA Standard IV(B), which restricts members from accepting gifts or compensation that may conflict with their employer\u2019s interests.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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