[Verse 1]
When you look at balance sheets, classification is the key
Current assets flow in one year, non-current stay with me
Cash and inventory moving, accounts receivable too
While equipment, land and buildings take a longer-term view
[Chorus]
Balance sheet analysis, read between the lines
FIFO, LIFO, weighted average help the numbers shine
Current and non-current, temporary differences too
Fair value hierarchy, let the balance sheet guide you
[Verse 2]
Inventory methods matter, FIFO's first in first out
Weighted average smooths the costs, LIFO leaves no doubt
Net realizable value, write it down when prices fall
LIFO reserve adjustments help you see them all
[Chorus]
Balance sheet analysis, read between the lines
FIFO, LIFO, weighted average help the numbers shine
Current and non-current, temporary differences too
Fair value hierarchy, let the balance sheet guide you
[Verse 3]
Long-lived assets tell a story, cost or revaluation way
Impairment tests are yearly, componentization's here to stay
Intangible assets growing, some are bought and some are made
Goodwill testing every year, make sure value doesn't fade
[Bridge]
Right-of-use and lease liabilities
Operating versus finance ratios
Deferred tax temporaries
Plan assets minus obligations
[Verse 4]
Financial instruments classified, fair value's got three levels
Quoted prices, inputs observed, unobservable revels
Pension accounting's complex, funded status tells the tale
Defined benefit obligations, service costs will never fail
[Chorus]
Balance sheet analysis, read between the lines
FIFO, LIFO, weighted average help the numbers shine
Current and non-current, temporary differences too
Fair value hierarchy, let the balance sheet guide you
[Outro]
Valuation allowances, when deferred tax assets doubt
Balance sheet analysis, that's what CFA's about