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Study Session 9: Financial Reporting and Analysis: Financial Reporting Quality and Financial Statement Analysis

Gains & losses on available-for-sale securities

CFAI Text Vol 3, P645,  EOC Q8 (P.662) & solution (P.664)

Is it that only the unrealized gains and losses on available-for-sale debt securities shall be recognozed in income statement under IFRS ? How about the available-for-sale equity securities ?

Anyone can clarify ?


I pretty much always miss these questions because I never seriously read them in the readings. The only thing I know is that IFRS says something about “future economic benefits”… or maybe it’s “probable.”

How do you learn this information? Is there a list anywhere I can just rote learn?

Stock options

I do not fully comprehend stock options….How do stock options impact taxes payable? Would it be possible to ask for a concrete example involving figures to illustrate? Thanks.

Difficulty level of questions in exam

I am studying the curriculum books. I read the whole chapter and do the EOC questions. I recently finished studying FRA. Then I happened to do self-test quiz from Kaplan for FRA. Honestly 24 questions in that self-test were much harder than EOC questions in book.

IFRS VS GAAP differences

Hi does anyone have a file that contains all the differences between IFRS and GAAP we need to know? Would really appreciate the help.


R34 - Cash Flow - Elan Practice Question 10 and 11

In Q10 it says calculate CFO and doesnt specify either IFRS or USGAAP.

Net Income = 1000

Decrease Interest Payable = 85

Gain on Equipment Sale = 45

Increase Accounts Payable = 90

Decrease Inventory = 35

Increase Prepaid Assets = 105

Depreciation = 85

Increase Taxes Payable = 125

My answer was CFO = 1000-85+90+35-105+85+125 = 1145

When I looked at the answer key it deducts a gain on sale of equipment in calculating the CFO . Isn’t gain on sale of equipment related to CFI and should be excluded from the CFO calculation?