A thread for those last-minute things that you had forgotten about, but stumbled back onto in your last week of prep. Things that are easy enough to remember in the short term, but you end up forgetting about over the long term. I just had one from quant, so I’ll kick it off: "What is the probability of someone doing something exactly x of the next n attempts? nCx * p^x * (1-p)^(1-n)
Chebyshev’'s GOT me good. 1 - 1/k^2 MINIMUM % that lies w/in k std dev’s from mean for ANY distribution. heck and I was going crazy with Z scores and &%#$…
Only available for sale marketable securities can be revalued upwards under GAAP.
T-value for Spearman’s rank correlation coefficient = t = (n - 2)^0.5 rs / (1 - rs^2)^0.5
is that true okiew? cant find it on curriculum…
okiew5 Wrote: ------------------------------------------------------- > Only available for sale marketable securities can > be revalued upwards under GAAP. Really? I don’t remember reading that. Also, can’t assets held for sale be revalued upward under GAAP as well?
NByz Wrote: ------------------------------------------------------- > A thread for those last-minute things that you had > forgotten about, but stumbled back onto in your > last week of prep. > > Things that are easy enough to remember in the > short term, but you end up forgetting about over > the long term. > > I just had one from quant, so I’ll kick it off: > > > "What is the probability of someone doing > something exactly x of the next n attempts? > > nCx * p^x * (1-p)^(1-n) Isnt it nCx * p^x * (1-p)^(n-x)??
kh.asif Wrote: ------------------------------------------------------- > Isnt it nCx * p^x * (1-p)^(n-x)?? Yes asif, it should be n-x, not (1-n). Good spot.
okiew5 Wrote: ------------------------------------------------------- > Only available for sale marketable securities can > be revalued upwards under GAAP. Trading sec are based on market value and hit the IS. Avail for sale and based on market value, but hit comprehensive income on the BS, no IS impact. Held to maturity are held at par value and not adjusted anywhere based on market price. Under us gaap you can not revalue any assets or goodwill upwards. under ifrs you can revalue up to the extent that you had previosly impaired.
Let me clarify myself, under GAAP, the available for sale securities, once impaired, can be revalued upwards and this is the only upward revaluation that can occur with long lived assets under GAAP. Under IFRS, assets may be revalued upwards to fair value. Hope that helps.
june2009, I have to disagree. Isn’t: trading securities see IS impact through realized gains/losses, unrealized gains/losses, dividends/interest available-for-sale securities see IS impact through realized gains/losses but not unrealized (these are the ones that go straight to equity) held to maturity you’re right.
I’m pretty sure for available-for-sale securities you still send unrealized gains/losses through comprehensive income.
Dirty price = full price = clean price + accumulated interest there was something else but obviously ive forgotten it again
The clean price is the quoted price.
Trading Securities- everything, including unrealized changes go on the IS Available for sale- Everything hits the IS except unrealized changes, which go to other comprehensive income. Held to maturity- everything hits the IS except unrealized changes, which aren’t reflected as they held on the BS at cost. Available for sale securities are not ‘impaired’ or ‘upward revalued’. They are simply recorded on the BS at their market price, which of course, can increase or decrease. Therefore, if you don’t include trading securities or available for sale securities, no assets can be revalued upwards under US GAAP.
drgonzo Wrote: ------------------------------------------------------- > june2009, I have to disagree. Isn’t: > > trading securities see IS impact through realized > gains/losses, unrealized gains/losses, > dividends/interest > > available-for-sale securities see IS impact > through realized gains/losses but not unrealized > (these are the ones that go straight to equity) > > held to maturity you’re right. That’s right…i was thinking unrealized only. ?? if i buy a par 1000 bond for 950 and its classified as held to maturity, what value do i book on the balance sheet? i thought it would be 1000, but sbmarti says they are held at cost… AHHH just checked…sbmarti is correct. held to maturity securities are held at par less the discount or plus any premium. changes in value are ignored.
HTM assets held at ammortised cost, not qute sure how this would be put into practice though…
GAAP/IASB/FASB/GIPS. all this stuff is just made up rules, which dont include logical thought, much harder for me.
kurupt1 Wrote: ------------------------------------------------------- > Dirty price = full price = clean price + > accumulated interest > > there was something else but obviously ive > forgotten it again +1, for some reason this question used to give me fits. Also, even for US GAAP random resource assets may be allowed to be adjusted upward.
So dirty price - accrued interest = clean price? So the price you actually pay when buying a bond is the dirty price?