6 simple tips to keep in mind during your CFA Exam to score more in the Financial Reporting and Analysis section.

1. Hi Gue st ( Lo gin) Abo ut Media Co ntact Search +1 34 7 6 4 7 9 0 0 1
Ho me Co urses My Acco unt Do wnlo ads Blo g Fo rum
Blog
Search to pics, articles, categro ies and much mo re. Se arch Abo ut t he Aut ho r
Prist ine
Pristine is India’s largest training
Latest Posts provider for international
certifications like CFA®, FRM®, PRM®. It
has been found by industry professionals
6 Steps to Score 70%+ in FRA who have worked in the area of investment
9 banking and private equity.
No vember 22nd, 20 12 Co mments ( 0 )
Tags 6 steps CFA cfa tips exam tips fra tips
Dear CFA Level –I Candidate, We all thank those of you who have found this series useful and sent in your email id Subscribe
letters of appreciation.
So far we have seen a few tricks in the topic s of Corporate Finance, Economics, and Fixed Income. These
FREE 10 days Se e
subjects cover a total of 30%. CFA trial course D e t ails
In this session we will discuss the Commandments and Sins of the topic that has the highest weight in you
exam. That’s right! It’s Financial Reporting and Analysis.
1. The best way to remember the differences between IFRS and US GAAP is: IFRS is mostly logic- based in
its approach and allows more flexibility / discretion based on substance of the transaction while US GAAP
is mostly rule- based and leaves no room for judgement.
2. While answering a question with respect to ratios: Always ensure that there is consistency in the numerator
and denominator in a ratio; for example, if you are calculating ROE, the numerator should have a profit
figure that is available for equity shareholders (Profit after tax less preferred dividend) since the
denominator has equity share capital.
PDFmyURL.com

2. 3. To understand whether an item should be capitaliz ed or expensed: Remember the Matching Principle - any
Po pular Po st s
cost item (or a portion of it) that can be matched to the revenue of the current period should be expensed
CFA fro m ICFAI (India) Vs CFA fro m CFAI
rest all should be capitaliz ed. (US)
4. Remember, Goodwill is not amortiz ed but is tested annually for impairment. CFA v/s FRM
5. Two checks for sales type lease:
CFA Results
1. Lessor is the manufacturer of the item being leased, and CFA Planner
2. PV of the future cash flows from lease payments exceeds the carrying value / purchase price of the
FRM Co urse Planner
item being leased, indicating a Gross Profit on the sale
6. Fraud triangle's first two buckets - due to incentives and pressures & due to opportunity for fraud are
All Cat e go rie s
clearer and easier to remember; try to map items / fraud cases into these buckets, else by default it can be
Career in Finance
clubbed in the third bucket.
Chartered Financial Analyst (CFA)
We hope that the above points were useful for your preparation. We will send you such useful information
Diagno se FRM
before the exam. If you want to know about a particular topic please write to us at help@edupristine.com.
Facebo o k
You can get some useful downloads on FRA at http://www.edupristine.com/ca/downloads/cfa/
Financial Mo deling
You can also buy some recordings for the topic of your choice at
Financial Risk Manager (FRM)
http://www.edupristine.com/ca/courses/cfa/cfa- level- i/
Free Quizzes
If you want to see what questions others are asking then please visit our forum at
FRM Interviews
http://www.edupristine.com/discuss/.
Jo bs
Please feel free to write to us for any help regarding your CFA exams. LMS
Newsletter
9
Operatio nalRisk
Pristine
Pro fessio nal Risk Manager (PRM)
Pro ject Management
Qo td
Tips and Material
Uncatego rized
Updates
PDFmyURL.com

3. Value at Risk (VAR)
Abo ut Site Map Partners T&C Co ntact
Disclaim e r
Glo bal Asso ciatio n o f Risk Pro fessio nals, Inc. (GARP® ) do es no t endo rse, pro mo te, review o r warrant the accuracy o f the pro ducts o r services o ffered by Pristine fo r
FRM® related info rmatio n, no r do es it endo rse any pass rates claimed by the pro vider. Further, GARP is no t respo nsible fo r any fees o r co sts paid by the user to Pristine
no r is GARP respo nsible fo r any fees o r co sts o f any perso n o r entity pro viding any services to Pristine Study Pro gram. FRM® , GARP® and Glo bal Asso ciatio n o f Risk
Pro fessio nals® , are trademarks o wned by the Glo bal Asso ciatio n o f Risk Pro fessio nals, Inc
CFA Institute, CFA® , and Chartered Financial Analyst® are trademarks o wned by CFA Institute. CFA Institute do es no t endo rse, pro mo te, o r warrant the accuracy o r quality o f
the pro ducts o r services o ffered by Pristine.
Co pyright Pristine 20 12 Click here to get help
PDFmyURL.com