Acronyms and Mnemonics

CFA Level II
#1

Anyone have some good acronyms and/or mnemonics to share?

I’m trying to get a few memorized as I go through my second reading of the material.

Got a couple so far:

Derivatives:

FGSC: F orward rate G reater than S pot rate => market is in C ontango

FRA

CBC: C urrent rate method: B alance sheet items translated at C urrent rate

TMCNM: T emporal method: M onetary assets translated at C urrent rate, N on- M onetary assets translated at H istorical rate

Feel free to share…

#2

A mnemonic for OCI is “PUFE” (pronounced “poofy”):

  • _ P _ension costs that haven’t been amortized
  • _ U _nrealized gains/losses on available-for-sale securities
  • _ F _oreign currency gains/losses under the current-rate method for foreign subsidiaries
  • _ E _ffective portion of a cash-flow hedge
#3

unfortunately, i use diagrams, not mnemonics.

#4

I like the OCI one. I’ll try and get some more formulated as the days pass.