TheAliMan Wrote: ------------------------------------------------------- > You know what I noticed, a lot of people are > getting the same questions right and wrong. Is > that a bad sign? I noticed it too - we nuke the same question and with the same bad explanation. Definitely a bad sign
bannisja Wrote: ------------------------------------------------------- > 2nd one B > 1st one I feel like sucking my thumb- PM is like > this nightmare that won’t go away. total guess- > B. PM I either need to review HARD or just be ok > bombing. 1st is from SS 10 equity (return concept, remember) and not from PM
eq risk premiums and build up are in equity not PM? really? i guess this cirriculum does overlap. skip- which SS was that one from?
I think it is a good sign if this correlation last. Low cutoff hence low passing score.
Morgan Bondillo, CFA, is attempting to calculate the value of Smith Sprockets. She is using a supply-side model to estimate the equity risk premium and a build-up model to estimate returns. Based on the strategies Bondillo is using, Smith Sprockets is least likely to: A) be closely held. B) need its beta adjusted for drift. C) be located in a developed market. build up model to estimate returns - so it is likely in a developed market. supply side model for ERP -> I think this is closely held. So least likely - need beta adjustment for drift. B An analyst should carefully review the footnotes to a firm’s financial statements to determine the: A) future growth rate of the firm. B) accounting practices and basis utilized by the firm. C) salaries of top executives. B) Accounting practices…
The correct answer was b. Supply-side models work best in developed countries, where public equities represent a significant share of the economy, suggesting that there is a relationship between macroeconomic variables and asset prices. The use of a supply-side model suggests Smith Sprockets is in a developed market. Build-up models are generally used for closely held companies for which betas are not easy to obtain. Bondillo’s use of a build-up model suggests Smith Sprockets is probably closely held. Betas of public companies must be adjusted for drift. However, since the use of the build-up method suggests the company is closely held and has no beta available, beta drift is probably not relevant for Smith Sprockets. B- EZ one LAST ONE BOYS AND GULLS… Which of the following methods of business combinations is the generally preferred method under International Accounting Standards (IAS)? A) Purchase method. B) Proportional consolidation method. C) Pooling method.
philip.platt Wrote: ------------------------------------------------------- > (this thread is) 3 pages in 90 min on a Thursday > afternoon and for something related to CFAI > material and not joking around or innuendos? > > FML. That means this exam is coming soon. Phil bro - you are already gold for this exam.
> Which of the following methods of business > combinations is the generally preferred method > under International Accounting Standards (IAS)? > A) Purchase method. > B) Proportional consolidation method. > C) Pooling method. A (Business Combination - Purchase always!)
Which of the following methods of business combinations is the generally preferred method under International Accounting Standards (IAS)? A) Purchase method. B) Proportional consolidation method. C) Pooling method. B) prop. consolidation method
A B is for joint ventures?
^ cpk - I chose B too - which is correct if thought of w/o looking at the question stem. Question ask for Business Combination, So changed it to A. Dunno if I nuked this too.
B for the win.
The correct answer was A. Pooling and uniting of interests are no longer widely used. Proportional consolidation is generally used for joint ventures. Note that IAS 22 requires the use of the purchase method of accounting. excellent review today. Class dismissed.
B to end with. fck beta estimate
Cooool!. Thanks Skip for a wonderful Brunch today. I lost all motivation to study at work when ditch stopped putting up questions.
thank you teacher. good session.
I finished on a good note. But I am depressed, around this time in level 1 I was nailing most questions. I need a clean sweep of all sections once again…
SkipE99 Wrote: ------------------------------------------------------- > The correct answer was A. > > Pooling and uniting of interests are no longer > widely used. Proportional consolidation is > generally used for joint ventures. Note that IAS > 22 requires the use of the purchase method of > accounting. > > > > excellent review today. Class dismissed. very confusing. Everybody answered B for this.
I scored in 70s today, Skip is my fav teacher
SkipE99 Wrote: ------------------------------------------------------- > once again, shorter/quicker questions. > > Get Set, Go! (I like that screen name fyi) > > Im starting with a nasty one that i dont like. I > dont know how many times i had to read this before > i understood the question (Actually i dont think i > still understand it, but i would never say that on > the forum) > > Suppose that it is incorrect to assume (as an > analyst did) that the deferred tax liability will > reverse in the near future. What will be the > likely effects on their estimate of the company’s > current leverage and her forecasts of future > operating cash flow, assuming the analyst is > incorrect in their conclusion but makes the > adjustment and forecast that are consistent with > their assumption? > > a- underestimate both > b- one is overestimated, the other is > underestimated > c- overestimate both I say B. Doesn’t seem too bad. Cash flow is understated because the deferred liability will actually not reverse thus becoming equity. Leverage is overstated because the adjustment is taking into consideration that the liability will reverse.