MindMap Gallery CFA Level 2 Review-Financial Reporting
CFA Level 2 review notes for 2105. Mainly the big framework and the formulas that need to be memorized. They are all compiled based on personal understanding of the teaching materials. You can add or delete them according to your own review situation. I hope it can help you clarify your knowledge and improve your learning efficiency. I wish you all good luck in the exam~ For your reference, I hope you can get on board as soon as possible!
Edited at 2021-05-31 15:49:38This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
financial report
intercorporate investment
investment in financial assets monetary assets
no significant influence
Classification
Amotivated cost
FVOCI
FVPL
rearrange
Equity financial assets cannot be reclassified
Debt financial assets can be reclassified
investment in associates Non-controlling long-term equity investment
significant influence
accounting method
equity method equity method
one-line consolidation
FV option
GAAP allows
IFRS is only allowed in VC, MF
Impairment
GAAP
nontemporary BV>FV Confirmed Impairment
IFRS
Loss event occurred Confirmation of impairment
No rotation allowed
business combination Holding long-term equity investment
control
accounting method
acquisition method cost method
goodwill
full goodwill = cash paid/ω%-Es
MI of full goodwill = cash paid(1-ω%)/ω%
partial goodwill = cash paid-Es*ω%
MI of partial goodwill = Es*(1-ω%)
GAAP
Only full goodwill is allowed
IFRS
Full & partial allowed
GW impairment
IFRS one-step
Whether it is impaired
Compare cash generating unit (BV>FV)
Impairment amount
cash generating unit(BV-FV)
GAAP two-step
Whether it is impaired
Compare cash generating unit (BV>FV)
Impairment amount
goodwill(BV-FV)
joint venture joint venture
accounting method
In most cases equity method
Rarely proportionate consolidation
SPE&VIE
Determine whether to consolidate the table
Compare
Equity method(E)
acquisition method (A)
proportionate consolidation (P)
IS
NI
E=A=P
revenue & expenses
A>P>E
BS
Equity
A>E=P The extra amount is MI
A&L
A>P>E
employee compensation
DB plan
PA (plan assets)
PAbgn contribution actual return - paid benefits = PAend
PBO
PBObgn current service cost interest cost past service cost actuarial G/L -benefits paid = PBOend
funded status
FV of PA-PBO
TPPC
employer contribution - Δfunded status
IFRS expense classification
current service cost
interest cost
PBobgn*interest rate
past service cost
actuarial G/L
actual return
expected return
OCI
GAAP expense classification
current service cost
interest cost
PBobgn*interest rate
past service cost
actuarial G/L
OCI
actual return
expected return
Influencing factors
discount rate ↑
PBO↓,current service cost↓
interest cost↓
compensation growth rate↑
expected return
Analyst concerns adjusting CF
contribution>TPPC
Equivalent to prepayment
CFO balance (1-t)
CFF-Difference(1-t)
contribution<TPPC
Equivalent to borrowing
CFO-Difference (1-t)
CFF difference (1-t)
share based compensation
equity settled
stock options
stock grants
cash settled
stock appreciation rights
phantom stock
multinational operation
Foreign currency business conversion
Consolidated statement conversion
temporal method
local → functional
subsidiary dependent on parent company
Conversion order
Convert BS report first
Exchange gains and losses are presented in IS
current rate method
functional → presentation
subsidiary independent
Conversion order
Convert IS report first
Exchange gains and losses are listed in BS
Indicator comparison
Comparison of financial indicators before and after current rate method processing
Comparison between current rate method and temporal method
hyperinflation
Transnational business analysis
analysis of financial institutions
Financial Institutions
Features
systemic importance
regulated
assets
Regulatory BASEL III
bank
CAMELS
insurance company
P&C
Profit indicator
combined ratio
underwriting loss ratio
expense ratio
cyclical
L&H
Compared
financial report quality
financial statement quality
reporting quality
earnings quality
Quality grading
Detection model
M-score
Z-score
Profitability sustainability
Detection model 1
earnings t 1=α β*earnings t ε
Detection model 2
earnings t 1=α β1*cash flow t β2*accruals t ε
BS accruals
NOAend-NOAbgn
IS accruals
NI-CFO-CFI