How do you get the line of best fit (in regression)? Are we supposed to know this? 2) A mechanism for reducing execution costs is principal trade (if i’m not mistaken), what does this entail? 3) What is scalable future funding (in alternative investments)? 4) What is a QSPE and how should it be accounted for? What is a VIE and how should it be accounted for? 5) I read an answer to a Schweser question that said that the “cost method” and “equity method” is U.S. GAAP, but proportionate consolidation isn’t? Any thoughts? 6) Can someone please explain to me the LIFO and FIFO COGS and inventory under the temporal method and current rate methods? Ive been using the 2010 notes and noticed that this is not included in there. 7) is Residual Income = EVA = Economic Profit??? 8) If so, EVA discounted at WACC to give MVA, but residual income is discounted at cost of equity?
makes little sense. The only GAAP/IFRS difference is when accounting for joint ventures; GAAP requires equity method while IFRS recommends proportional consolidation but equity method is allowed
How do you get the line of best fit (in regression)? Are we supposed to know this? the line that gives you the smallest SEE/RMSE 2) A mechanism for reducing execution costs is principal trade (if i’m not mistaken), what does this entail? internal crossing 4) What is a QSPE and how should it be accounted for? What is a VIE and how should it be accounted for? Qualifying SPE, now prohibited under both US GAAP and IFRS. VIE is essentially a SPE, but you use consolidated accounting for its numbers 5) I read an answer to a Schweser question that said that the “cost method” and “equity method” is U.S. GAAP, but proportionate consolidation isn’t? Any thoughts? proportionate consolidation is only in IFRS. consolidated accounting is under both US GAAP and IFRS 7) is Residual Income = EVA = Economic Profit??? residual income is NI- EC EVA is NOPAT- cost of capital (WACCx total capital)