SS6 Multinationals some thoughts

finished up schweser reading and the schwes and CFAI questions. only skimmed the CFAI text but year over year here are a few comments and if anyone has read the CFAI materials yet on this, please feel free to jump in also. 1. BALANCE SHEET EXPOSURE- this came up in 2 questions in the CFAI text and I didn’t recall it really being as big last year: AC method it’s Net Assets (total assets- total liabilities)- in LC Temportal it’s net MONETARY assets (cash + AR - AP - ST/LTD) a few questions on how to reduce BS exposure which made you calc it depending on AC/temporal and then figure out how to drop the exposure. worth a look if you’re solo schweser b/c I don’t think it covered this a ton 2. INCOME STATEMENT EXCHANGE RATE/OPERATIONAL EFFECTS- this was big last year, didn’t see it in schweser or CFAI that I found. this gone? or still fair game under the LOS 24d “calc translation effects”, etc? 3. CTA calcs in there yes, but actual holding/flow effects gone? I don’t see holding/flow effects this year- are they adios? 4. HYPERINFLATION- last year think it was pretty basic “use temporal”, the GAAP way. this year compares IFRS vs GAAP a bit more in depth- worth a look. 5. FOREIGN CURRENCY TRANSACTIONS AND B/S DATES- pg 139-142 of the CFAI text reading 24… I don’t recall this from last year. Not hard at all, just worth a look in terms of how to treat a payable/receivable with B/S dates in mind. Yeah, that’s about it- rest is pretty same in terms of ratios and just calc’ing out the B/S and I/S items depending on which method used. If anyone has read this, though, tell me if operational/exchange rate effects are gone this year as well as holding/flow effect calcs. I might go compare last vs this year CFAI texts if I get the motivation, but maybe not. re-takers just clue into the few other differences I noted above- those were the biggest changes I saw on first read anyways. SS7, i’m coming for you this afternoon. everybody loves adjustments!

I am confused too. I think it is not in the material anymore as CFAI as well as Schweser have not mentioned in the curriculum. I still have my old note cards for Holding/flow and operational effects though. Less things to do this year with respect to SS 6.

yeah, it does seem easier in terms of calculations. not complaining if that stuff is out. $20 says q-bank still has questions on it? we’ll see. i haven’t started SS7 yet. watching football has taken priority, although these games today on tv (giants/skins and colts/browns) haven’t been that exciting. the giants game has been the better choice thus far. maybe i’ll half read ss7 when the 4pm games come on.