Study Tips for FRA

CFA Level I FRA
#1

What are do’s and dont’s while preparing for this topic?

What has to be focussed by heart and what just to be read for knowledge?

#2

Accounting is very important, especially the difference between IFRS and GAAP.

There are no shortcuts but memorizing and practicing.

#3

Make sure you understand the difference between metrics that relate to cash flow (income and expenses) vs. balance sheet (assets and liabilities). But yes there is a lot of memorizing.

#4

Good points stated by above users. Keep in mind FRA has the highest weight (20%) and its absolutely necessary to score high to pass comfortably. CFAI loves to test on U.S GAAP and IFRS differences. This is evident in many subtopics as bs010101 mentioned. From past experience, the questions regarding investment classification is very important (AFS, HTM, FV). In exam , if you see a question in FRA which doesnt explicitly mention an accounting convention; assume IFRS.

#5

Thanks for the great input sir.

#6

There are, essentially, three keys to studying for FRA:

  • Practice
  • Practice
  • Practice

I’ve written a few articles (and plan to write more when I have a chance) that may be of some help: http://financialexamhelp123.com/level-i-financial-reporting-and-analysis/.

#7

I believe that you don’t need to assume IFRS; I believe that CFA Institute has been explicit that their default position is IFRS.

#8

http://financialexamhelp123.com/credits-and-debits/

Up until now, I try to stick to Schweser, Investopedia, and Wikipedia. I know you’re qualified but I hadn’t looked at most of your site.

Your article on credits and debits was amazing. Do you make your living as a finance professional or as a financial educator?

#9

You’re very kind.

I teach review courses for the CFA exams (all three levels), I teach financial mathematics and financial modeling to international finance students, I just recently started teaching accounting, and, with a bit of luck, I’ll be back to teaching university mathematics in the near future.

And, of course, I’m a professional magician.

#10

Never knew you do modelng too, might find you useful sometime :slight_smile:

I was an ameteur magician back in college, I’m exclusively a card magician (and flourisher), what props do you work with?

#11

I spent 6 years developing prepayment models for mortgage-backed securities for a small fixed-income house in Newport Beach, CA.

Very interesting.

I do both close-up and parlor: cards, coins, silks, rubberbands, ropes, rings, and so on. Some interesting mentalism as well.

I’ve never done fluorishes: just never spent the time on them.

#12

Nice, all around magician I see.

Flourishes aren’t really magic, they’re just flashy ways of card manipulation. To be honest, flourishes are not a good idea for a magic audience, as you come across as ‘too skilled’ with cards, and not really a ‘magician’. It’s fun to practice and execute with other fellow flourishers though.

I’ve been out of the scene for almost two years now, focusing on studies. Who’s your favorite close-up magician?

#13

Wow: tough choice!

Several of my friends – Johnny Ace Palmer, John George, Whit Haydn, Doug Brewer – are superb close-up magicians. I also enjoy Andrew Goldenhersch, Shoot Ogawa, Chad Long, Jason Latimer, . . . the list goes on.

#14

FRA is going to ruin my life. Or at least the last few weeks of it leading up to the exam.

#15

Diya.soni518. You already passed level 1, so how was the level 1 FRA, and how was your prop for it, share your experience.

#16

Thanks Magician

#17

My pleasure.