Study Intercorporate Investments Prior to IFRS 9 or After IFRS 9?

Hey All,

What are you doing for investments in associates this year? Are you studying pre-IFRS 9, post-IFRS 9, or are you just learning them both? I understand CFA Level 2 is supposed to be tough, but the idea we have to learn both just seems wrong especially when added to the mountain of stuff we also have to learn. Has CFAI put out an offical word on what will be on the test?

Whatever is in the curriculum is what’s testable, so I would just go off that.

They’re both in the curriculum; you’d better know both.

Other than the name changes , are there any major differences. The schweser books have only explained IFRS9 in a page, the new names, criteria and reclassification. Dont see any major differences. Anything I’m missing?

One major difference is that IFRS 9 does not allow the equivalent of today’s AFS approach (measurement at fair value with changes in fair value taken to OCI) for debt instruments

Measurement at fair value via OCI will still be allowed for equity instruments BUT there will be no recycling of gains/losses from OCI to P&L on disposal, which is a second big difference.I don’t think the Curriculum even mentions the second point … which is a shame seeing as the difference will potentially have a big impact on reported results.

Thanks everybody!

My pleasure.