why cant CFA exams just use one set of standards? GAAP or IFRS

CFA Level I
#1

Why cant they just follow GAAP if and until it harmonizes with IFRS or simply use only IFRS or make a standard called CFA-GAAP and pick the rules they like from US GAAP or IFRS

Why the need to bother us with 2 sets of standards as if we are going to be accountants

#2

US GAAP vs. IFRS is one area that I loathe with a passion, all the way up to L2. There is no way to “understand” them. It’s all a bunch of arbitrary rules made up by people. The “why” doesn’t matter. The good news is that IFRS will eventually assimilate US GAAP, the bad news is that it’s not going to happen before your exam.

Don’t bother studying these. Make a full list of IFRS vs. US GAAP differences, read them once every day, and most importantly read them 5 minutes before walking into the exam center in the morning and at lunch. It will stay in your short-term memory long enough for you to get through the exam.

#3

We would’ve only had to study IFRS if it wasn’t for the US not wanting to adopt IFRS… (just like they won’t adopt the metric system when practically everyone else uses it). So until that day comes, we’re forced to study both at the moment :frowning:

#4

But GAAP is more straight forward and less bullshit

#5

I don’t know if I can say that. In most cases it’s just a different way of doing things. Especially in L2, you’ll see that they are equally troublesome, just in different ways. But that’s only in the context of the CFA exam. A real accountant may think differently.

#6

Convergence, that’s why. Learning both versions helped me with the CPA and it also makes you more knowledgeable, obviously, and better rounded.

Anyway, if you hate it now, wait till you get to Level 2 with consolidations lol. That was a bitch.

#7

Did you get the CPA after CFA? What’s your thought on CPA, as I’m considering that as well

#8

No good comes from knowing all those differences well. I don’t think the CFA exams tests heavily on these areas - i mean the differences per-se. Knowing few key differences is enough. Otherwise its an intellectual excercise in futility. Its a game of regulators vs standard setters vs business vs economies vs sovereign status etc…

#9

Yea. I’m actually taking the last part of the CPA on Thursday. I would compare all 4 parts of the CPA to level one of the CFA in terms of content and difficulty. PM me if you want to talk more.