4 accounting models?

anyone know where these accounting models are in schweser? continental, south american, mixed economy, british-american? the question was on cfai exam 5 and it’s absolute rubbish.

haha… the ans was continental… I got messed up on that one too

There is a huge chapter on that in the CFAI book, Schweser has done a very poor job on that section. If you get a chance, skim through it in the book. That chapter also outlines the major differences between IAS & US GAAP.

is this in LOS?

LOS 37 B: Discuss the importance of the hierarchical model of accounting diversity.

thanks for the reference. too bad they’re not in schweser.

geez, now i am worried. is there a lot stuff that schweser was missing? I did not purchase CFA I sample exams. am I screwed?

hah i wouldn’t worry about it i don’t think anyone that had the cfai texts knew the continental accounting model

can someone summarize the stuff that schweser did poorly. So I can look into them more. thanks a lot!

if you knew 100% of the schweser stuff then there might be cause for that, but you don’t. so you should probably just spend time reviewing the stuff in schweser you’re iffy on and not freak out about the 2 questions out of 240 that weren’t in schweser

^ agree with slave, if you know schweser notes inside out, you don’t have anything to worry about, at most there might be 4-5 questions in the exam that schweser has not covered. But do make sure you don’t rely on schweser for ethics.

can someone still please post a short summary ( 1-2 sentences) of continental … south american… mixed economy… british american… thanks

Following is a gross simplification of the 4 models (all I remember) B-American: Usually followed in common law countries, accounting policies are made keeping in needs of the user of financial info like creditors and investors Continental: used in Continental Europe and Japan, usually code law countries, accounting policies are legalistic and are set generally by the legislature and are geared towards tax & government planning purposes. Most of the companies here are more reliant on banks for funding. South American: same as continental, but also have adjustments for inflation Mixed Economy: Eastern Europe & former USSR countries, combines element of former planned economy and recent open economy. Assist in governmental planning.

yes…schweser doesn’t cover this, but book 7 actually has the same exact question. That is why I was able to get this question right on the CFAI sample.

thanks delhi… i guessed it right, since so far i’ve just heard about continental… lol.