So I’ve been focusing on the FSA Text/Schweser the last week or so since I’m finding it’s my weakest area leading up to exam date. I’ve seen a few members just do postings of stuff they wern’t remembering to help others out and I figured I’d do the same. Luckily enough, I’ve got this small list memorized memorized (still working on SS9 :/) - discontinued operations and extraordinary items are reported NET OF TAX and separate from continuing operations on the income statement - unusual or infrequent items (not both) are reported BEFORE tax and included the income from continuing operations section - change in accounting “principle” requires retrospective application, change in accounting “estimate” does not - remember to add net income to “Other Comprehensive Income” (lots of mock questions give you 2 selections where the difference in $ value is NI) - Balance Sheet: account format = 2 columns, report =1 (think 21, Blackjack) - under IFRS, tax paid on expenses associated with investing/financing activities can be netted under the CFO umbrella - US GAAP requires reconciliation from the direct to indirect method, IFRS does not - FCFF still adds [Interest x (1-t)] to net income, since this money is still technically available to bondholders
Thanks Mildeg! FSA is a weakness for most people. I will post mine up later on FSA.
Ok Mildeg, mine are not from specific SS’s but from all over the FSA. These are my notes for some of my weak areas - adjustments made by the analyst for the take-or-pay commitments will increase short term and long term obligations -Lease capitalization will increase asset balances resulting in a lower asset turnover (remember net sales/ave total assets). As the leased asset is depreciated and the asset balance becomes smaller, the ratio will increase. The lower the asset balance is, or becomes, the higher the asset turnover ratio will be. -Capitalization of interest will increase shareholder’s equity, resulting in a lower debt-to-equity -In the the latter years of a capital lease, the net profit (margin) will be greater than the net profit (margin) reported with an operating lease. Interest expense declines in a capital lease while depreciation expense remains constant. This leads to lower total expense in the latter years of a capital lease than operating lease and a higher net profit (margin) -The direct-write-off method records bad debt expense in the period of default, which may be different than the period of the related sale. -The cost of intangible assets is allocated over their estimated useful lives or other definite period through amortization -The warranty expense reported on the income statement represents an estimate of the actual future cash refunds