Hello
Do we have to memorise all the ratios and rules in FRA?
Just wondering how I should tackle this book efficiently as there are too many rules (IFRS and GAAP) to remember. I have not even finished the book. What should be the best way to study this book?
Ratios: Don’t memorise, Try to understand the construction of the ratios, and what are they designed for. It’ll then come naturally.
Rules: Practise questions to remember. You will then distinguish the “important” rules from the “lesser important” rules.
Good luck!
One thing that helped me was having a PowerPoint slide pack. Whenever I came across a difference between IFRS and GAAP I would add a new slide with the details and analytical implications. Good way to ingrain the specifics in your memory and as an added bonus you also have a pretty handy slide deck for some quick revision in the lead up to the exam.
For most of FRA, it’s best to try to understand the material, this includes ratios. There’s some really easy tricks to remember each ratio based on the name/type of ratio.
When it comes to certain rules and differences in accounting standards (IFRS vs GAAP), you need to memorize these. There’s absolutely no way around it.
Practice, practice and practice. These steps will help to remember and also particularly understand their application.
Cheers
Thanks!
Which book/online materials should I buy to practise questions?
I have been working on memorizing those ratios all last week and they are tough and wont stick so practicing them over and over would be a better solution I think
Ratios are a minute detail of the exam. It’s better to understand the concepts of FRA rather than formulas.
The more you practice the more you get acquainted and remember longer. Understand rather memorizing.