worldwide accounting models

Schweser doesn’t have this listed but I recently got tested on it during the v5 CFAI sample test…wondering if anyone could shed some light on the four worldside accounting models, i.e. the name and briefly describe. I know one of them: Continental: legalistic, generally provides information primarily for taxation/governmental planning purposes. Could be a potential gimme during the test…

British American - oriented to investors and creditors Continental (Europe and Japan) - oriented to banks, taxation, govt. planning South American - same as continental but has inflation adjustment Mixed Economy (Eastern Europe) - oriented to planned exonomic system and recent marked economy returns

this was in the CFAI texts but not in Schweser

wow, talk about answering quick…thanks a bunch…hopefully that will help some of the others on this forum who only have schweser also.

I made a flashcard of that last night, so it was fresh on the brain.

oh crap… then I only guessed right… cuz I only remembered seeing the word “continental”…

budfox427 Wrote: ------------------------------------------------------- > British American - oriented to investors and > creditors > Continental (Europe and Japan) - oriented to > banks, taxation, govt. planning > South American - same as continental but has > inflation adjustment > Mixed Economy (Eastern Europe) - oriented to > planned exonomic system and recent marked economy > returns OMG, if this is what it was supposed to mean they I guessed well on cfa5. Schweser does not talk about any of these… :-((

I also came across the questions where they ask about different approaches of US and IAS GAAP - like treating dividends, CF etc. Schweser hardly covers it

i guess that is why you can rush through schweser in one month but not through the cfai books… i studied with schweser though, so i might have some “gaps”.

if i have to remember something like this, i am fizzzuckd. i’m already at my capacity.

But you can think it out on the day. Remember - the french are cheese eating, striking, collaborating socialists - so their accounting system is for the diktats of central government. Therefore continental was the answer. That’s how I got it first time round :wink:

There’s Micro-based is split into British American and Economic Theory. British American is further split between british influenced (commonwealth countries) and american influence (US, Canada) Economic Theory only has Netherlands. Macro Based has the groups Continental and Government - Economy Continental is further split into tax based (japan and germany) and law based (france, spain etc) Government -Economy only has Sweeden, they allow income smoothing because they believe it stabilises the economy.