I’ve read the financial synthesis section at the end of the CFA text. It’s really horrible to read, plus there’s no practice questions to do after the reading? Why couldn’t the institute provide better examples and show what to actually in regards to adjusting the balance sheet or income statement for each issue? For example, Acct receivables sold with recourse should be added back to acct receivable and their should be an equal adjustment to current liabilities.
I also found the CFAI reading terrible. I liked the Stalla reading on that section much better. They show what adjustments to make to the financial statements. Now, if I can just remember it all…
schweser & qbank have some examples but not many. I guess you just go through every line in the BS, IS, CF, and ask - is it non-recurring?, does it reflect the real underlying current value or position?, is it really part of normal operations?, - if not then make the logical adjustments to un-do, remove, discount, etc. Also is it comparable to other firms in the industry?, etc Reminds me of something a CPA/CFA once told me: - CPA/CA role is make up a pretty set accounts to hide the true position - CFA role is to get behind the pretty set of accounts to find out what’s really going on…