Average Revenue > ATC Balance Sheet CDO
Average Revenue > AVC Bank Discount Yield
Backfilling Bias Banker's Acceptance
Backwardation Banker's Acceptances
8a
Created by a bank to reduce its
loan exposure on its balance sheet
Firm should stay in business for
long-run
= ((face value - m...
6 components of the Code of
A Priori Probability
Ethics:
7 Standards of Professional
Absolute Yield Spread
Conduct:
A change in accounting
Accelerated Depreciation
estimates...
A change in accounting
Accelerated Sinking Fund
principles...
1a
, +Act with integrity, competence, diligence, respect and in an
ethical manner wit the public, clients, prospective clients,
employers, employees, colleagues, and all participants in global
markets
+Place integrity of profession and interest of clients above all else
Comes from a formal reasoning +Use reasonable care and independent professional judgement
when conducting investment analysis, making investment
and inspection process; an recommendations, taking investment action, and engaging in
professional activities
objective probability +Practice and encourage others to practice in a professional and
ethical manner that will reflect credit on themselves and the
profession
+Promote the integrity, and uphold the rules of, the capital markets
+Maintain and improve their professional competence of
themselves and others
+Professionalism
The difference between yields on two +Integrity of Capital Markets
bonds; +Duties to Clients
= Higher Bond Yield - Lower Bond +Duties to Employers
Yield; +Investment Analysis, Recommendation
Most commonly used; and Action
Shortcoming is it may always remain +Conflicts of Interest
constant even as yield rise or fall +Responsibilities of a CFA
Member/Candidate
Is a change due to new
Applies depreciation more at the
information and does not require
beginning of an assets life
old statements to reflect it
Allows the issuer the choice of
retiring more than the amount of Requires restatement of prior
bonds specified in the sinking fund financial statements
requirement
1b
, Accounting Information Flow Action lag
Accounting Warning Signs Active crawling peg
Accrual Accounts Ad Hoc Auction Services
Acquisition Method of Accounting
Addition of Probability
for Business Combinations
2a
, 1. Journal record every transaction by order of date
in the general journal
2. The general ledger sorts the entries in the
general journal by account
Time it takes governments to vote
3. An initial trade balance is prepared at the end of
on and enact policy the period to show the balance of each account
and adjustments are then made
4. Financial statements are made from the
adjusted trial balances
+Aggressive revenue recognition
+Different growth rates of operating cash flow and earnings
+Abnormal sales growth as compared to the economy, industry or peers
+Abnormal inventory growth compared to sales growth
*Could be signs of obsolete products
+Boosting revenue with nonoperating income and nonrecurring gains
When the adjustments are +Delaying expense recognition
+Abnormal use of operating leases by lessees
periodic, announced and +Hiding expenses by classifying them as extraordinary or nonrecurring
+LIFO liquidations
implemented +Abnormal gross margin and operating margin as compared to industry
peers
+Extending the useful lives of long-term assets
+Aggressive pension assumptions
+Year-end surprises
+Equity method investments and off-balance-sheet special purpose entities
+Other off-balance-sheet financing arrangements including debt guarantees
+State the objective and context
+Gather data
Method where central government
+Process data
auctions new securities when
+Analyze and interpret data
market conditions are
+Report conclusions and
advantageous
recommendations
+Update analysis
When the purchase price is
allocated to the identifiable assets
P(A or B) = P(A) + P(B) - P(AB) and liabilities of the acquired firm
based on fair value and the rest is
recorded as goodwill
2b
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller viawave1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
