Refer to CFA text volume 3 (FSA) Study session 8, reading 34, page 279 Exhibit 11 Step 3. Cash paid to employees is given as 4133. I beleive it should be $4123 less increase in salary and wage payable of $10 = 4113 Am i right? Can anyone confirm this.
Good catch. You’re right because footnote © for exhibit 11 states “salary and wage expense of $4,123 less increase in salary and wage payable of $10.” Looks like the author accidentally added the two, rather than subtract the $10 from $4,123.
Here is a link to the complete errata on the CFA website if you don’t already have it. http://www.cfainstitute.org/cfaprog/resources/pdf/L1_Errata.pdf
Thanks i checked the errata. It was not there.
I knew it!! Goddamn it, I’m pretty sure there are more errors I’ve come across along the way. But there is no way to explore each error given the amount of material we have to cover. One would think that the least the CFA could do is double check the materials they are copying.
Haha yea you are right, they should have double or triple checked the materials. What if some young guy learns from the error and thinks that it is the proper way and uses the same wrong method to do exam questions and gets all wrong… and then he fails CFA and gets very demoralised and commits suicide! then his parents and gf get really upset… (and the story gets worse) Thats just a hypothetical example, but well anything can happen just because of that small tiny error!
you have a vivid imagination… may be make a movie
What data in life is completely free of noise? Honestly, if the amount of noise in CFA materials noticably disturbs your thinking and studying, how can you possibly be worth anything in trying to make inferences in capital markets that are loaded full of randomness, chaos, deliberate misdirection, lying, etc.? This is the cleanest stuff you are likely to encounter anytime in your career.
Yep, there’s always going to be mistakes. Be proud that you picked up on it and leave it at that. It means you know your stuff. In fact, the more mistakes you pick up on, the better.
The errata drives me insane!!! I agree on the time constraints as far as checking that an error is really an error.