So under IFRS 3 components make a up a change in the pension
1) Service costs- (PV of additional benefits earned by an employee over the year)
2) Net interest expensive/income
3) Remeasurement
I understand 1 and 2. However, can someone please explain service costs? What does it mean by additional benefits? Continue reading
Can someone please explain the statement below? I can’t seem to understand it…
”The point where AVC and MC intersect, average product is at its maximum. It is also the output level where average product and marginal product intersect.” -
Seems like an important topic and feel Econ is where I need to improve.. Continue reading
Developing economy starts to rise rapidly and that domestic inflation in the developing economy rises above the level in the US. The currency of the developing economy would start to fall against the dollar (and vice versa).
Why is this? If the economy picks up, there would be more demand for the developing country’s currency and that would cause appreciate? What am I thinking wrong? Continue reading
Just curious if anyone can share what they think of the mock exams vs. the real test. I have taken 2 CFAI mock exams so far, the 2010 and 2013 MEs, and have scored a 60% on both. Is anyone else having trouble like this? Are the mock exams harder than the actual exam or is this what should be expected on test day? Continue reading
S2000Magician, this one’s for you!
Can we get a break down of the chronology of the time line chronology of the dividends, from declaration to ex-dividend, to holders of record (and all that jazz) and what exactly is the purpose of each step?
Thanks in advance! Continue reading
Hi All,
I’ve been searching all the posts here and decided to register to try and get a clear answer from someone (none of the posts I found really made it clear) - I know there are a lot of other confused people out there.
How exactly does the higher “interest expense” vs the coupon payments on a discount bond flow through NI into CFO, and below NI what adjustments do we make under the indirect method?
Continue reading
Regardless of how hard I try I just don’t get and I don’t think that I should spend any more time on it. It has to be the most annoying thing I have ever studied :S Continue reading
Hello,
So a quick question.
If the weekly interest rate is 25%.
What would the stated annual interest rate be, with weekly compuding? .25 * 52. is that correct?
Also, what would the effective annual interest rate be? (1+.25)^52 - 1?
Thanks! Continue reading
please explain them logically….or thru example
1) higher coupon means lower interest rate risk ie duration….
2) higher current market yields means lower interest rate risk….
why do callable and prepayable securities have low interst rate risk at low yield….
why does zero coupon bond have the highest duration..
thks
CFAI Mock Example Q83 Morning Exam
Trader buys 500 shs on margin at $36/shs
Leverage ratio: 1.66
Maintenance margin requirement: 30%
What is the stock price that margin call will occur at?
I read the answer but I don’t understand the intuition. Could you guys please explain how I would be able to go through it in my mind without using the formula? Thanks! Continue reading