CFA Level I Topic Picks

Question

This is an evolving post of useful CFA topics discussions for Level I. As new and awesome discussions are created, I will be continually adding them here to create a quick reference guide for Level I members to dive straight in!

Topic AreaTopicDescriptionGeneralChanges in Level I from 2012 to 2013@TacheMan shares his findings on syllabus changes from 2012 to 2013.GeneralEasiest CFA Topics@Diya asks everyone which topics they love in Level I.GeneralEOC Questions are harder/easier than the actual exam?@Nabeel looks at end-of-chapter questions from CFAI.GeneralHardest CFA Topics@hairyfairy ponders the toughest topics in Level I.GeneralLevel 1 exam prep, weightings by study readings@mitch895 looks at L1 topic weightings.GeneralNPV/IRR Calculator Questions@CFA_redemption_12713 goes through a NPV/IRR question.GeneralTest Prep and Test Day practical tips@channing_cox shares test-day and test-taking tips.GeneralYou Passed Level 1. What Do You Wish You Knew?@lulu123 finds out from past exam takers what they wish they knew beforehand.DerivativesMargin calls: futures vs equities@KawiGreen asks - what are the differences between equity and future margin calls?DerivativesOption Pricing@SidMenon helps clarify the relationship between an option's exercise price and its relative value.DerivativesSwap Markets and Contracts@SidMenon asks how an interest rate swap can be used to hedge an interest rate risk.EconomicsLabor, capital and technology@ajost14 looks at the relationship between all 3 economic factors.EconomicsPrice Ceilings@AJFinance clarifies when does a price ceiling become effective.EconomicsProblem with a question from Q-Bank@Chevalier investigates an example of trades between countries.EconomicsShort Selling and Market Efficiency@sidmenon finds out why prohibition of short selling creates market inefficiency.EquityDiluted EPS - Mock Exam Question - Why is my answer wrong?@ajost14 goes through a question on diluted EPS.EquityQuestion on Reading 49 (Equity Securities)@edulima asks a question about common shareholders and differences with preferred shareholders.EquitySustainable Growth Rate@lulu123 walks through a sustainable growth rate exam question.EquityValuing a preferred stock@lulu123 values a preferred stock.EthicsComposite vs Mutual Funds in GIPS@bendujamin asks if mutual funds and composites get the same treatment in GIPS.EthicsEthics: material non public vs independent and objectivity@aanchalb goes through an Ethics question with some confusing answer options.FRAAccelerated Depreciation as a Tax ShieldHow does accelerated depreciation acts as a tax shield? @TacheMan investigates.FRACalculation of Equity for ROEWhat numbers do you use from the balance sheet? @sidmenon investigates.FRADeferred Tax Assets and Deferred Tax LiabilitiesStruggling with understanding both? @Maroon5 helps clarify this.FRAFIFO/LIFO@Snippy asks if we should use conceptual or calculation approaches when assessing some LIFO/FIFO differences questions.FRAFinancial Leverage FactorsHow does issuing common stock influence financial leverage? @policedog goes through the reasoning.FRAFRA - Dilutive securities@Snippy goes through a question on dilutive securities.FRAHow do one account for warrants emission in the balance sheet?@huwabara asks 'On the asset side, we add the proceeds to the cash. On the liability side, what do we do?'FRAIFRS vs GAAP for Level-1@RaviVooda shares his key learnings on IFRS vs GAAP.FRAImpairment vs EBITDA@huwabara clarifies an issue in FRAFRAInventory/Sales Ratio@GraemeA asks 'when inventory/sales is rising or falling, what stage of the business cycle is the economy in?'FRANon-controlling Interest, How Does It Work?@Dan ponders the exact definition of non-controlling interest, and how it should be reported in the income statement.FRAPerpetual vs periodic inventory system@lulu123 investigates the effect on COGS and gross margin is for perpetual system vs. periodic system.FRARevenue, sales, turnover, net income, EBITDA questions@policedog investigates the differences between several terms.FRAUnderstanding Balance Sheet Revenue Recognition@SidMenon goes through an example and nuances of recognizing different revenue types in the balance sheet.FRAUS GAAP & IFRS Differences@Dan helps compile a list of GAAP and IRFS differences in one handy place.QuantKurtosis Calculations@lulu123 asks if kurtosis calculations are really necessary...?QuantQM - Answer Explanation Re Time Value@GraemeA goes through a time value question.QuantQuantitative Methods - Distribution of Returns Example Question@SidMenon runs through a particularly confusing question.QuantQuants - Impulse Wave and Corrective Wave@Snippy dives into the Elliot Wave theory.QuantQuants: Study Session 3, LOS 9.i@peekabooitsme looks at a uniform distribution question.QuantSettling Kurtosis Once and For All@hairyfairy discusses leptokurtic and platykurtic distributions and why the tails seem counterintuitive.QuantVIX and Contrarian Strategy@lulu123 reconciles her understanding as to why extremely high VIX levels are considered bullish by contrarians.

shreeneewas · Answer

Please consider opening a new thread for discussion as your questions warrants it.

In US Market, CPA has overshadowed CFA ...

Its like saying dentists have overshadowed heart surgeons., sorry no pun intended ...

That is not possible for simple reason that they have very different role to play and both are required by organisations. I terms of volume of jobs it may be true but then as they are two different career all together, I don't think we can compare them fairly.

This may help you:
http://www.investopedia.com/articles/professionaleducation/08/cfa-cpa-cfp-how-to-choose.asp

So first choose your career before certification / charter. As first one decides which way you travel and later decides how fast you can travel ;)

I may be wrong here, but as you are going to qualify ACCA, CPA makes so much more sense than CFA.

Sophie Macon · Answer

I agree with @shreeneewas here. But first of all, let's take a step back. It depends what you want to do for a career. If it's accounting related, ACCA and CPA would be more relevant. If it's broader like finance, portfolio management, equity research then CFA is more relevant. Both are recognised worldwide, but for different fields. So I'm not sure if we're comparing apples with apples here @shams.