I’ve only just started FRA, having fluffed some of the easier stuff. I have no background knowledge of accounting or financial reporting. Will it pay off to spend longer on Study Session 7 and the introductory parts, or can i skim read them to get onto the other FRA topics, and make sure i skim cover them all.
I guess the question is which of these is better: skim read all of the FRA study sessions and hope it makes sense. or revise the early ones solidly and hope the rest will fall logically into place. Crumy choices i know, but i don’t have much spare time left, and the slow pace of the syllabus makes me panic.
If I remember correctly, the early FRA SS’ are introductory accounting concepts that lay the foundation for all of FRA at L1 and L2. You should have these down cold if you expect to succeed in the rest of FRA, in my opinion. You need to understand how the statement of cash flows is constructed and how it links to the BS and P&L, etc. After that, it’s rules, rules, and rules. Accounting is not logical (at least not to me), it’s all rules, and some of them are downright silly.
Put in the time here, FRA is huge at both L1 and L2.
+1000. I’m a CPA, and I spent more time on FRA than on any other section.
Absolutely correct. Some of accounting can be reasoned from first principles, but a lot of it is sheer memorization, and memorization of illogical ideas (e.g., under US GAAP, interest expense is a nonoperating expense, but interest paid is an operating cash flow).
Definitely put the time in on those early study sessions. They’re crucial.
do not skip ANYTHING in FRA, you will regret it in L2 even if you make it through L1.
Trust me, FRA is like 40% of L2, you can’t afford to not know accounting.
Please go through with FRA once and after that try to solve the question based on them. It will clear your concepts.