Corporate Finance

CISI Financial Reporting and Financial Statements Analysis

Official CISI Accredited Training Partner

Complete Level 3 FRFS preparation for the CISI Diploma in Corporate Finance, covering all five current syllabus elements.

160 Practice Questions Detailed Study Notes Realistic Mock Exams

Course syllabus information reviewed for 2026. Always check the awarding body’s latest official syllabus and candidate updates before booking or sitting your exam.

Exactly what is included

5 mock exams × 40 questions · 160 unique questions · 200 total question slots · unlimited retakes
Focus Learn · key areas, pitfalls, exam traps & key numbers
Flashcards · fun, fast and effective recall
Exam cheat sheet · key facts, rules and numbers by chapter
Audio Learning · every chapter in audio
AI Analyzer & Mentor · pinpoints your weak areas
Study Mode Exams · learn while you train
AI Chat trained specifically for this exam
Community-polished data, improved every day
Up-to-date, accuracy-checked content

AI Audio Summaries New

Listen to course modules on the go. Perfect for studying while driving or commuting.

🎧 Audio

* This is a chapter sample. All audio is available in the full version.

Prepare for the CISI FRFS exam

Financial Reporting and Financial Statements Analysis is the Level 3 opening unit in the current route to the CISI Diploma in Corporate Finance. It develops the financial-reporting and analytical foundation needed for the higher-level corporate-finance units that follow.

This course follows the latest official syllabus structure reviewed for 2026. It maps the 40-question examination across five elements: the income statement, statement of financial position, cash flow statement and free cash flows, group accounting, and financial analysis. The Income Statement carries 12 questions, or 30% of the paper, while each remaining element carries seven questions.

Study with five detailed chapter summaries, 140 rapid-recall flashcards, 118 calculation and exam-trap cheat-sheet entries, five timed 40-question mock exams with answer explanations, and a syllabus-grounded AI tutor.

Key Benefits

Corporate-finance reporting foundation

Build the financial-statement knowledge used throughout the current CISI Diploma in Corporate Finance route.

✓ Income statement and balance sheet
✓ Cash flow and free cash flow
✓ Group accounting and analysis

Official weighting plan

Allocate preparation time using the published distribution of all 40 examination questions.

✓ Five official elements
✓ 30% Income Statement weighting
✓ Seven questions in each remaining element

Calculation and interpretation focus

Prepare for both technical calculations and the interpretation of financial performance from a corporate-finance perspective.

✓ EPS and deferred tax
✓ FCFF and FCFE
✓ Goodwill, NCI and financial ratios

Syllabus

Module 1: The Income Statement 30% syllabus weight

🎧 Audio

Income-statement purpose and format, revenue recognition, expenses, taxation, non-recurring items and earnings per share.

• IFRS 15 revenue recognition
• Capital and revenue expenditure
• Current and deferred tax
• Basic and diluted EPS

Module 2: The Statement of Financial Position 17.5% syllabus weight

The purpose, classification and measurement of assets, liabilities and shareholders' equity.

• Current and non-current assets
• Bonds, leases and deferred tax liabilities
• Stranded assets
• Share capital, reserves and retained earnings

Module 3: The Cash Flow Statement and Free Cash Flows 17.5% syllabus weight

Operating, investing and financing cash flows, the indirect method, FCFF and FCFE.

• Cash and non-cash transactions
• CFO, CFI and CFF classification
• Indirect-method operating cash flow
• FCFF and FCFE calculations

Module 4: Group Accounting 17.5% syllabus weight

Consolidated accounts for subsidiaries and associates, including acquisition adjustments and the equity method.

• Parent, subsidiary and control
• Goodwill and non-controlling interest
• Intra-group balances and unrealised profit
• Associates and equity accounting

Module 5: Financial Analysis 17.5% syllabus weight

Financial ratios, analytical limitations and other information and tools used to assess performance and financial position.

• Activity, liquidity and solvency ratios
• Profitability and valuation ratios
• Trend and common-size statements
• Forecasts, competitors and industry averages

Frequently Asked Questions

The Financial Reporting and Financial Statements Analysis unit is assessed by 40 multiple-choice questions in 50 minutes. Computer-based tests may include up to 10% additional unscored trial questions with proportionately more time.

FRFS is a Level 3 unit in the current route to the CISI Level 6 Diploma in Corporate Finance. It is separate from Corporate Finance Technical Foundations, which belongs to the Certificate in Corporate Finance.

The Income Statement carries 12 of the 40 questions, or 30%. Each of the other four elements carries seven questions, or 17.5%.

It covers the income statement, statement of financial position, cash flow statement and free cash flows, group accounting, and financial analysis from a corporate-finance perspective.

The course is ready with five detailed chapter summaries, 140 flashcards, 118 cheat-sheet entries, five timed 40-question mock exams with answer explanations, and a syllabus-grounded AI tutor.

Yes! Test your knowledge and review detailed explanations with the free CISI Financial Reporting and Financial Statements Analysis Mock Exam Preview below. It contains 15 exam-style questions from one named syllabus topic; the full course provides complete mock exams and syllabus coverage.

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Free CISI Financial Reporting and Financial Statements Analysis Practice Questions & Exam Preview

Try 15 CISI Financial Reporting and Financial Statements Analysis practice questions from Element 1: The Income Statement

Practice CISI Financial Reporting and Financial Statements Analysis exam questions with answers and explanations. The full course includes 5 mock exams and complete syllabus coverage.

Exam Preview

Element 1: The Income Statement

Question 1 of 15

Which statement most accurately describes income-statement purpose and structure?

1 / 15

Flashcards

Card 1 of 10Chapter 1

Question

What is the core exam rule for income-statement purpose and structure?

Tap to reveal answer

Focus Learn

Key Examinable Areas6

Income-statement purpose, format and classification
IFRS 15 five-step model and over-time recognition
Principal-agent, repurchase, bill-and-hold and consignment
Matching, expenditure and depreciation
Current and deferred tax
Discontinued operations and basic or diluted EPS

Common Pitfalls to Avoid4

Exam Traps4

Key Numbers5

Chapter 1: The Income Statement

The income statement explains financial performance over a period by bringing together income, expenses and the resulting profit or loss. It differs from the statement of financial position, which reports resources and obligations at a date, and from the cash-flow statement, which follows cash movements. Candidates should be able to recognise the main presentation sequence and distinguish revenue from the entity's ordinary activities from other income and gains. Classification matters because users want to judge the sustainability and quality of the reported result, not merely its final total.

IFRS 15 supplies the central revenue-recognition model. First identify an enforceable contract, then identify its distinct performance obligations, determine the transaction price, allocate that pri…

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See the answer and explanation after each choice.

Exam Mode

Realistic exam simulation

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Who Is This For?

✓ Candidates preparing for the CISI Financial Reporting and Financial Statements Analysis exam

✓ Professionals progressing through the Diploma in Corporate Finance

✓ Corporate-finance analysts who need a stronger financial-reporting foundation

✓ Candidates entering the Diploma route through the Certificate in Corporate Finance or an eligible accountancy qualification