I was wondering if anyone else is finding reading 31 in the CFA Curriculum (Income Taxes) to be not very well-written? I have found that I’ve had to refer to other sources of information for this reading – for example the authors don’t explain what statutory taxes are vs. effective taxes, and I had to look that up in an alternate source on the Internet. I didn’t find myself doing that in previous readings. Would be interested in hearing your thoughts.
TinyBeluga, I think that the balance sheet approach to computing deferred tax (comparing book value with tax base) tends to loose the big picture of why deferred tax is recording in a certain amount and with a certain sign (as an asset or liability). I agree that the authors of the text have probably not done enough to ensure that things remain clear throughout the reading.
Thanks a bunch for your feedback, Wojtek and Cinderella. I’m glad to know that it’s not just me that found this reading to be harder / less clear than others in the FRA book. I actually found the other readings to be quite understandable and even enjoyable.
I thought it was only me that facing difficulty with this reading ! Im using Schweser notes and i think they didnt explain the concept very will, Im trying to get as much of it as I can but it seems to be harsh, i spent over 4 hrs and only done 5 pages !! I keep thinkin to skip this reading as it holds me. anyway goodluck all
Hi rakans85, I would suggest trying the CFAI book for that chapter. Not that it’s well-written either, but at least they provide more explanation than Schweser!
This makes me feel good, I struggled mightily wth that section as well. At least I’m not the only one! Not going to let it drag me down, there’s tons of other material so my suggestion twould be to keep moving forward and revisit it later.