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Study Session 5: Financial Reporting and Analysis: Intercorporate Investments, Post-Employment and Share Based Compensation, and Multinational Operations


What will be the treatment of Dividends in Post- Consolidated Balance Sheet and Income Statement under Acquisition Method?

CFAI Online Qbank vs CFAI EOC vs real exam

I just finished my first reading of FRA. I did all CFAI EOC and got 71%. I turned to the CFAI qbank, but they’re completely different story! Waaay more difficult than EOC, and I got 53% after doing the first 38 questions. Is there anything wrong with my review or is it normal to such terrible score by now?!!

Unrealized Gains (FVPL)

Why do you subtract the amortized discount when calculating unrealized gain via fair value through profit or loss classification?

Pension plan

If the plan gets overfunded, do we say it’s worsening? or it’s worsening when underfunded?

Benefit of Goodwill Impairment?

I just finisehd studying Goodwill Impairment part when doing FS Consolidation.

I remember seeing a news earlier last week that US Companies GW Impairment loss is increasing in the last years.

This got me thinking what are the benefits of impairing goodwill other than using it as big bath or perhaps tax benenfits? (due to decrease in I/S?)

Amortization of excess price- Balance Sheet and Income Statement

In the equity method, when we allocate the excess of purchase price to amortization, we record this excess both in the balance sheet and income statement. For example, lets assume that we (investor) own 25% of ABC and we paid $150,000 for the purchase price. ABC’s book value and fair value are equal except that its PPE is worth an additional $40,000 in the market. ABC’s book value is $80,000 and fair value is $120,000.ABC’s net income is $200,000 and pays dividends of $10,000. The PPE is depreciated over 5 years.