Analysis of Income Taxes on FSA-

CFA Level I
#1

Anyone else having trouble understanding this topic through CFAi? The practice problems go into way too much detail The Schweser version was bearable…but from what i read the authors for the CFAi FSA are terrible. Any of you Dec 07’ takers…any advice on how much detail you need for this section?

#2

lots!!!

#3

So boring…

#4

this was one of the most difficult sections for me in FSA… well towards the end of FSA, it got really difficult and boring.

#5

zizou Wrote: ------------------------------------------------------- > this was one of the most difficult sections for me > in FSA… > > well towards the end of FSA, it got really > difficult and boring. Same here - I found SS9 in general to be the most challenging reading so far (I am just about to enter into the fixed income SS.) I find the Schweser notes do a much better job of explaining this particular topic.

#6

Total agreement here. One would figure that given the CFA is putting together its “own curriculum” (ie. copy and paste from textbooks used in past years) the least it could do is add some laymen’s interpretation to a topic that is a pain in the a**. I hope that when I start studying with q-bank next month there are some questions that can shed some light on this topic. Failing which, I hope to guess/muddle through this obscure topic on the exam.

#7

Just remember one thing: we could avoid all this confusion if there was parity between tax and financial reporting. FAS 109 is a major PIA and not very intuitive as who would consider overpaying the federal government the creation of an asset? Just bear with it. Take your time and maybe give the chapter another reading or two. If you know how prepaid assets and deferred liabilities work, and can make a connection between the different methods of accounting for costs for tax statements and financial statements (i.e. using straight line depreciation on your financial reporting but accelerated depreciation on your tax reporting), you will eventually get it. I’m not a fan of the authors, but I guess CFAi felt their readings would better prepare us for the exam.