@rahul12
Forum Replies Created
-
Posts
-
Up6
No.
TOTAL Periodic Pension Cost = Contributions – Change in Funded Status = service cost + interest cost – actual return on plan assets +/- actual g/l on change in PBO assumptions + prior service cost
my understanding is that expected return on plan assets is only relevant for US GAAP. it is used in the calculation of net interest cost under US GAAP.
changes in the expected return has no impact on plan assets, PBO, or periodic pension cost (PPC). It does, however, have an effect on how much of PPC goes to the income statement and what goes to OCI.
Up6hi there, i haven’t used MM’s stuff for level 1, but heard good things about it.
as long as his study materials is complete/independent, you should be able to pass only with that package, just like kaplan’s.
if you’re concerned about passing, it’s always good to start early. 6 months is a recommended minimum, but you can start earlier and slowly ramp up if preferred – 10 months now to november seems reasonable.
you don’t need a background in finance for learning and passing cfa, but it does take more effort to grasp new concepts.
Up5chores unfortunately, it’s either shower/grocery shopping/cooking/cleaning/admin. if i get some free time outside of work and study, i actually go out for a stroll… but i tend to incorporate chores with walking to be more efficient, e.g. walk to grocery stores etc. can’t wait for the exams to be over yet so unprepared for it!
Up5sorry I don’t follow your question Answer. does this relate to a particular question that you can share?
Up5hey @pcunniff this is a CFA L1 favorite which most candidates need some time to grasp the logic of the concept (and once you do you’ll remember it).
let’s start with a few definitions to make sure we are on the same page:
1) LIFO liquidation occurs when the amount of goods sold exceed the amount of goods replaced, i.e. number of inventory units is decreasing. don’t get distracted by the word LIFO in this phrase at this stage, the definition merely means that we are running low in inventory (regardless of FIFO/LIFO classification).
2) so, in a LIFO liquidation situation during an inflationary environment, the older (and lower) cost of goods are included into COGS, because we are selling the ‘older’ lower cost units in our inventory now.
3) therefore COGS reduces on average, and profit margins increases.
sorry, it sounds like I repeated the answer. inventory cost is not higher because in an inflationary environment AND LIFO liquidation (based on the definitions above), you’re selling the older, cheaper stock which brings down average COGS and increases profit.
answer A is incorrect because LIFO liquidation by definition means inventory levels are decreasing.
I hope this helps a little, let me know if not and will see if i can better explain
Up5hi there, i haven’t used MM’s stuff for level 1, but heard good things about it.
as long as his study materials is complete/independent, you should be able to pass only with that package, just like kaplan’s.
if you’re concerned about passing, it’s always good to start early. 6 months is a recommended minimum, but you can start earlier and slowly ramp up if preferred – 10 months now to november seems reasonable.
you don’t need a background in finance for learning and passing cfa, but it does take more effort to grasp new concepts.
Up5yes we assume a 2 tailed t test. however you may have misunderstood something here.
so in a normal distribution for example, if it is a 95% confidence interval (i.e. 5% significance level), it means it is the z-score that leaves a probability of 2.5% (α/2) on the upper tail (right-hand tail) of the standard normal distribution. it isn’t 5% in each tail, but 5% in total, which means 2.5% in each tail.
so that means t=1.960
hope this clarifies
Up4thanks so much sophie! it took me a few times to read your explanation and make sense of it – definitely one of those tricky questions that trips ppl up!
Up4woohoo a nice, light, fun topic to chat about for once 🙂
ben’s cookies are amazzinggg but i don’t allow myself near time (maybe to sniff only) as i can’t stop after one cookie usually!
my favourite snack is nachos actually, easy to make, adding greek yogurt (instead of sour cream), chopped coriander, salsa, guacamole, makes it relatively healthy and more-ish.
for music, I actually can only listen to the music soundtracks compiled by 300Hours – they are pretty good! (https://www.300hours.com/study-music/)
love shingo nakamura too!
Up4love the ‘mock till you drop’ line :p
I kinda just used the 300Hours study planner since L1, but noticed your timeline is pretty tight. I remembered you mentioned about expecting a child in April 2020 in another thread (congrats btw!), so I guess it’s good to have a time buffer before the arrival.I’m aiming to finish around mid April (absolute latest), but just had lots of time buffer in between as I expect to be a slow coach at the start.
Up4there’s a lot of choices actually, presumably online learning since no classroom trainings nowadays.
i personally self studied most of it, and bought extra practice exams and question banks. i don’t think you need courses per se for L1 in particular.
that said, there are so many: kaplan schweser, uworld, bloomberg, wiley, adaptprep/salt solutions, mark meldrum, fitch and ift as you said. worth checking out their packages and see what you need, to suit your learning style?
Up4nearly, the formula is net credit purchases / avg payables.
let’s try an example: assume that the credit purchases for a company for the previous year were $100k and the beginning and ending payables for the year were $20k and $40k.
so payables turnover = 100k/30k = 3.33x
it shows people how fast the company can pay its creditors in a year, for CREDIT purchases, so it’s an indicator of creditworthiness. because in this example, they bought stock on credit for 100k, but the average payables throughout the year is $30k only (that means they paid $70k on average relatively quickly to reduce supplier credit)), meaning they are able to pay creditors 3.33x a year, which is reassuring for suppliers who provide credit.
Up3hey there, current L2 candidate and a little bit stressed :/ it’s a fine line between starting too early and starting too late though, but better the former than the latter (like me)!
jokes aside, your plan seems solid, make sure you stick to it and budget for emergencies / lack of motivation days too. it’s like a marathon so pace yourself and there would be days where you just wanna be a couch potato and not study…
Up3interesting insights jasdev! yes, i think i’m giving up on reading somewhat, jumping straight to mock questions and doing as many as i can, checking where i went wrong, study those topics i got wrong, repeat for this last week. fingers crossed that works o:)
would you say level 3 feels “easier” vs. level 2 in terms of preparation and amount of material?
Up3i mentioned my CFA qualification status (for me it’s “level 3 candidate”) under the education section in my CV.
in interviews, usually i would just casually mention the CFA qualification as an add-on point to a relevant question (maximum twice in a whole interview). the point of this is to hopefully aim for “i’m competent and qualified for this job, PLUS i’m working towards a CFA qualification which hopefully sets me apart from others”.
what role are you currently in @genetemp and what role types are you interviewing for?
Up3no problem – good luck!
Up3hey @pcunniff , so if imports exceed exports, we know that it has to be a current account deficit, i.e. Answer A can be eliminated.
Since Balance of Trade (BOT) is a combination of a country’s good and services, we don’t have sufficient info in the question to conclude whether the BOT is a surplus or deficit, because the question only stated merchandise and we don’t have enough info about other sub-components of current account.
But because the balance of payments has to balance, i.e. the balances of these 3 components must sum to zero (current account, capital account and financial account). A deficit in one area implies an offsetting surplus in other areas. A current-account deficit implies a capital-account surplus (and vice versa).
