FCInv. formula question

CFA Level II Equities
#1

I’m assuming that FCInv. = ∆PP&E + NCC ?

#2

Correction, FCInv. = ∆Net PPE + NCC

#3

For the purposes of the Level II exam, this equation is OK.

In the real world, however, noncash charges (NCC) can include amortization of intangibles and bond premia/discounts, as well as noncash revenues (e.g., income from affiliates when using the equity method). It’s (incredibly) unlikely that either would appear on a Level II exam, but it’s still best to be clear; instead of NCC, use Depreciation Expense.

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#4

I just purchased a 1 year subscription from your website. That was dumb for me to wait so long.

#5

I wouldn’t say dumb.

I hope that you find it useful.

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