i hate reading 38 analysis of income of taxes.

CFA Level I
#1

I feel like i am not catching anything while i am reading the chapter. This is the hardest chapter i have encounter so far.

#2

I agree. I felt the same way. I think book doesn’t do a good job of explaining these concepts to new comers. Refer some other source, I studied from videos and then i went to do the book reading again, only then it made sense. Still not comfortable though.

#3

Stalla has a good tax section.

#4

the only way to go thro this chapter, monstrous as it is, is to take a few examples and walk thro’ them thoroughly. Yes, it is tough, but not unsurmountable

#5

Just remember Temporary/Versus Permanent difference which can be created using different accounting method. Example: Accelerated vc Straight line depreciation methods: - Accelerated methods are typicallyused for tax purposes. The SL is normally used for financial reporting. - In the early years of the asset’s life, because depreciation under accelerated method is higher than the one under SL method, THERE IS A TEMPORARY DIFFERENCE, and hence it adds to DTL. Because IT IS A TEMPORARY DIFFERENCE, in the later year this difference will reverse (due to the used of the depreciation method…go to have a look at the long lived assets section). In this case, the Taxman would like to have the money ASAP, but because this is a temporary difference which will reverse in the future, you will register a DTL (and not pay now).

#6

i may read schweser notes instead, CFAI did a terrible job of explaining the concept. One surprising thing is that i do not see a lot questions about taxes in this forum, why is that?

#7

ssdnola Wrote: ------------------------------------------------------- > i may read schweser notes instead, CFAI did a > terrible job of explaining the concept. One > surprising thing is that i do not see a lot > questions about taxes in this forum, why is that? No one like it!

#8

Part of the FSA book uses chapters written by Fried, Sondhi, and White. These authors write some of the driest material you will lay your hands on. I have an old edition of their Financial Statement Analysis textbook printed in 1997. The book is so heavy that I used to hate wearing it in my backpack back when I was in college.

#9

Reading 38 is without a doubt one of the most boring things I have ever read in my life. Now whenever I meet a tax accountant or attorney its hard to keep the pity out of my voice!!