I have problem with memorizing these, it’s like they are all spinning in my head n mixed together. Wondering if you have any tips to learn it by heart:
-OAS in relAtive to Treasury bond, Issuer and sector ( when OAS> 0 ,=0…)
-MM with taxes and no taxes (1,2)
-rules of US gaap and Ifrs in Reclassifying under financial asset ( esp held for trading…)
-same as above but rules for impairment of financial assets
-cash flow, fair value hedge…effective án ineffective portion go to where?
I really feel the key to beating Lvl II is doing as many mocks as you can (or vingnette-style questions at least). My grades the last two weeks have gone from 45% to 75%, while i have also identified gaps in my knowledge.
-I also find the GAAP/IFRS differences hard to memorize. Even though the item you point out is more flexible under US GAAP, I generally think of IFRS as more flexible (able to reverse impairment loss (Fixed & Financial Assets), choice of Proport Consol or Equity Method, Full or Impartial Goodwill, Pension A/L).
-For derivative hedges, I dumb it down to fair value hedge (A/L) G/L on IS. Cash flow hedge goes to E (other comp) until realized.
-OAS I attempt to understand the concept, not memorize. Same with M&M.
I agree IFRS is more flexible but in terms of reclassifying, they don’t allow you to reclass. into and out of held for trading and out of held to maturity
I also find it difficult with test to detect and to correct problems in Multiple regression .
maxmeomeo, I am afraid you are wrong about HTM, they can be reclassified as AFS under IFRS.
My understanding is: IFRS restricts To or From HFT. US GAAP allows. To and out of HTM is allowed, but taints the category.
My understanding is: IFRS restricts To or From HFT. US GAAP allows. To and out of HTM is allowed, but taints the category.