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CFALevel1-LOSChanges2015-
2016
Topic
LOS
LevelI-2015
(529LOS)
LOS
LevelI-2016
(549LOS)
Compared
Ethics
1.1.a
describethestructureoftheCFA
Inst
ituteProfessionalConductProgram
and
theprocessfortheenforceme
ntof
the
CodeandStandards
1.1.a
describeth
estructureoftheCFA
InstituteProfessionalConductProgram
andtheprocessfortheenforcementof
theCodea
ndStandards
Ethics
1.1.b
stat
ethesixcomponentsoftheCo
deof
Ethi
csandthesevenStandardsof
Prof
essionalConduct
1.1.b
statethesixcomponentsoftheCodeof
Ethicsand
thesevenStandardsof
ProfessionalConduct
Ethics
1.1.c
explaintheethicalresponsibilities
requ
iredbytheCodeandStandards,
includingthesub-sectionsofeach
Standard
1.1.c
explainthe
ethicalresponsibilities
requiredbytheCodeandStandards,
includingthesub-sectionsofeach
Standard
Ethics
1.2.a
dem
onstratetheapplicationofthe
Cod
eofEthicsandStandardsof
Prof
essionalConducttosituations
invo
lvingissuesofprofessionalint
egrity
1.2.a
demonstratetheapplicationoftheCode
ofEthicsandStandardsofProfessional
Conductto
situationsinvolvingissuesof
professionalintegrity
Ethics
1.2.b
distinguishbetweenconductthat
conformstotheCodeandStandar
ds
and
conductthatviolatestheCode
and
Standards
1.2.b
distinguish
betweenconductthat
conformst
otheCodeandStandards
andconductthatviolatestheCodeand
Standards
Ethics
1.2.c
reco
mmendpracticesandprocedu
res
designedtopreventviolationsofthe
Cod
eofEthicsandStandardsof
Prof
essionalConduct
1.2.c
recommendpracticesandprocedures
designedtopreventviolationsofthe
CodeofEthicsandStandardsof
ProfessionalConduct
Ethics
1.3.a
explainwhytheGIPSstandardswere
crea
ted,whatpartiestheGIPS
stan
dardsapplyto,andwhoisser
ved
byt
hestandards
1.3.a
explainwh
ytheGIPSstandardswere
created,whatpartiestheGIPS
standardsapplyto,andwhoisserved
bythestan
dards
Ethics
1.3.b
explaintheconstructionandpurpo
seof
com
positesinperformancereporting
1.3.b
explainthe
constructionandpurposeof
composites
inperformancereporting
Ethics
1.3.c
explaintherequirementsfor
verification
1.3.c
explainthe
requirementsforverification
Ethics
1.4.a
describethekeyfeaturesoftheGIPS
stan
dardsandthefundamentalso
f
com
pliance
1.4.a
describeth
ekeyfeaturesoftheGIPS
standardsandthefundamentalsof
compliance
Ethics
1.4.b
describethescopeoftheGIPS
stan
dardswithrespecttoan
inve
stmentfirmsdefinitionand
historicalperformancerecord
1.4.b
describeth
escopeoftheGIPS
standardswithrespecttoaninvestment
firmsdefin
itionandhistorical
performancerecord
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Ethics
1.4.c
explainhowtheGIPSstandardsare
implementedincountrieswithexisting
stan
dardsforperformancereporting
and
describetheappropriateresponse
whe
ntheGIPSstandardsandloca
l
regu
lationsconflict
1.4.c
explainhowtheGIPSstandardsare
implementedincountrieswithexisting
standardsforperformancereporting
anddescribetheappropriateresponse
whentheG
IPSstandardsandlocal
regulations
conflict
Ethics
1.4.d
describetheninemajorsectionso
fthe
GIPSstandards
1.4.d
describeth
eninemajorsectionsofthe
GIPSstand
ards
Qu
antitative
2.5.a
inte
rpretinterestratesasrequired
rate
sofreturn,discountrates,or
opportunitycosts
2.5.a
interpretin
terestratesasrequiredrates
ofreturn,discountrates,oropportunity
costs
Qu
antitative
2.5.b
explainaninterestrateasthesum
ofa
realr
isk-freerate,andpremiumsthat
com
pensateinvestorsforbearing
distincttypesofrisk
2.5.b
explainan
interestrateasthesumo
fa
realrisk-freerate,andpremiumsthat
compensat
einvestorsforbearing
distincttyp
esofrisk
Qu
antitative
2.5.c
calc
ulateandinterprettheeffectiv
e
annualrate,giventhestatedannu
al
inte
restrateandthefrequencyof
com
pounding
2.5.c
calculatea
ndinterprettheeffective
annualrate,giventhestatedannual
interestrateandthefrequencyof
compounding
Qu
antitative
2.5.d
solv
etimevalueofmoneyproblem
sfor
diffe
rentfrequenciesofcompound
ing
2.5.d
solvetime
valueofmoneyproblemsfor
differentfr
equenciesofcompounding
Qu
antitative
2.5.e
calc
ulateandinterpretthefuturevalue
(FV)andpresentvalue(PV)ofasingle
sum
ofmoney,anordinaryannuity,an
annuitydue,aperpetuity(PVonly
),
and
aseriesofunequalcashflows
2.5.e
calculatea
ndinterpretthefuturevalue
(FV)andpresentvalue(PV)ofasingle
sumo
fmo
ney,anordinaryannuity,an
annuitydue,aperpetuity(PVonly),and
aseriesof
unequalcashflows
Qu
antitative
2.5.f
dem
onstratetheuseofatimeline
in
mod
elingandsolvingtimevalueo
f
mon
eyproblems
2.5.f
demonstra
tetheuseofatimelinein
modelinga
ndsolvingtimevalueof
moneypro
blems
Qu
antitative
2.6.a
calc
ulateandinterpretthenetpre
sent
valu
e(NPV)andtheinternalrateof
retu
rn(IRR)ofaninvestment
2.6.a
calculatea
ndinterpretthenetpresent
value(NPV
)andtheinternalrateof
return(IRR
)ofaninvestment
Qu
antitative
2.6.b
contrasttheNPVruletotheIRRru
le,
and
identifyproblemsassociatedw
ith
the
IRRrule
2.6.b
contrastth
eNPVruletotheIRRrule,
andidentifyproblemsassociatedwith
theIRRrule
Qu
antitative
2.6.c
calc
ulateandinterpretaholdingp
eriod
retu
rn(totalreturn)
2.6.c
calculatea
ndinterpretaholdingperiod
return(totalreturn)
Qu
antitative
2.6.d
calc
ulateandcomparethemoney-
weightedandtime-weightedrates
of
retu
rnofaportfolioandevaluatethe
perf
ormanceofportfoliosbasedon
thes
emeasures
2.6.d
calculatea
ndcomparethemoney-
weighteda
ndtime-weightedratesof
returnofa
portfolioandevaluatethe
performanceofportfoliosbasedon
thesemeasures
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Qu
antitative
2.6.e
calc
ulateandinterpretthebank
disc
ountyield,holdingperiodyield
,
effe
ctiveannualyield,andmoney
mar
ketyieldforU.S.Treasurybills
and
othe
rmoneymarketinstruments
2.6.e
calculatea
ndinterpretthebank
discountyield,holdingperiodyield,
effectiveannualyield,andmoney
marketyie
ldforU.S.Treasurybillsand
othermoneymarketinstruments
Qu
antitative
2.6.f
convertamongholdingperiodyields,
mon
eymarketyields,effectiveannual
yields,andbondequivalentyields
2.6.f
convertam
ongholdingperiodyields,
moneymarketyields,effectiveannual
yields,and
bondequivalentyields
Qu
antitative
2.7.a
distinguishbetweendescriptive
stat
isticsandinferentialstatistics,
betw
eenapopulationandasample,
and
amongthetypesofmeasurem
ent
scal
es
2.7.a
distinguish
betweendescriptive
statisticsa
ndinferentialstatistics,
betweena
populationandasample,
andamong
thetypesofmeasurement
scales
Qu
antitative
2.7.b
defineaparameter,asamplestati
stic,
and
afrequencydistribution
2.7.b
defineapa
rameter,asamplestatistic,
andafrequencydistribution
Qu
antitative
2.7.c
calc
ulateandinterpretrelative
freq
uenciesandcumulativerelativ
e
freq
uencies,givenafrequency
distribution
2.7.c
calculatea
ndinterpretrelative
frequenciesandcumulativerelative
frequencies,givenafrequency
distribution
Qu
antitative
2.7.d
describethepropertiesofadatas
et
pres
entedasahistogramora
freq
uencypolygon
2.7.d
describeth
epropertiesofadataset
presented
asahistogramora
frequencypolygon
Qu
antitative
2.7.e
calc
ulateandinterpretmeasureso
f
centraltendency,includingthe
populationmean,samplemean,
arithmeticmean,weightedaverag
eor
mea
n,geometricmean,harmonic
mea
n,median,andmode
2.7.e
calculatea
ndinterpretmeasuresof
centralten
dency,includingthe
population
mean,samplemean,
arithmetic
mean,weightedaverageor
mean,geometricmean,harmonic
mean,med
ian,andmode
Qu
antitative
2.7.f
calc
ulateandinterpretquartiles,
quin
tiles,deciles,andpercentiles
2.7.f
calculatea
ndinterpretquartiles,
quintiles,d
eciles,andpercentiles
Qu
antitative
2.7.g
calc
ulateandinterpret1)arange
anda
mea
nabsolutedeviationand2)th
e
varianceandstandarddeviationofa
populationandofasample
2.7.g
calculatea
ndinterpret1)arangeanda
meanabso
lutedeviationand2)the
varianceandstandarddeviationofa
population
andofasample
Qu
antitative
2.7.h
calc
ulateandinterprettheproport
ion
ofo
bservationsfallingwithinaspe
cified
num
berofstandarddeviationsofthe
mea
nusingChebyshevsinequality
2.7.h
calculatea
ndinterprettheproportionof
observationsfallingwithinaspecified
numberof
standarddeviationsofthe
meanusingChebyshevsinequality
Qu
antitative
2.7.i
calc
ulateandinterpretthecoefficientof
variationandtheSharperatio
2.7.i
calculatea
ndinterpretthecoefficientof
variationandtheSharperatio
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Qu
antitative
2.7.j
explainskewnessandthemeaning
ofa
positivelyornegativelyskewedreturn
distribution
2.7.j
explainske
wnessandthemeaningofa
positivelyo
rnegativelyskewedreturn
distribution
Qu
antitative
2.7.k
describetherelativelocationsofthe
mea
n,median,andmodefora
unim
odal,nonsymmetricaldistribu
tion
2.7.k
describeth
erelativelocationsofthe
mean,med
ian,andmodefora
unimodal,nonsymmetricaldistribution
Qu
antitative
2.7.l
explainmeasuresofsampleskewn
ess
and
kurtosis
2.7.l
explainme
asuresofsampleskewness
andkurtos
is
Qu
antitative
2.7.m
com
paretheuseofarithmeticand
geometricmeanswhenanalyzing
inve
stmentreturns
2.7.m
compareth
euseofarithmeticand
geometricmeanswhenanalyzing
investmentreturns
Qu
antitative
2.8.a
definearandomvariable,anoutco
me,
ane
vent,mutuallyexclusiveevents,
and
exhaustiveevents
2.8.a
defineara
ndomvariable,anoutcome,
anevent,m
utuallyexclusiveevents,
andexhaustiveevents
Qu
antitative
2.8.b
stat
ethetwodefiningpropertieso
f
probabilityanddistinguishamong
emp
irical,subjective,andapriori
probabilities
2.8.b
statethetwodefiningpropertiesof
probability
anddistinguishamong
empirical,subjective,andapriori
probabilitie
s
Qu
antitative
2.8.c
stat
etheprobabilityofaneventin
term
sofoddsforandagainsttheevent
2.8.c
statethep
robabilityofaneventin
termsofoddsforandagainsttheevent
Qu
antitative
2.8.d
distinguishbetweenunconditionaland
conditionalprobabilities
2.8.d
distinguish
betweenunconditionaland
conditionalprobabilities
Qu
antitative
2.8.e
explainthemultiplication,addition
,and
tota
lprobabilityrules
2.8.e
explainthe
multiplication,addition,and
totalproba
bilityrules
Qu
antitative
2.8.f
calc
ulateandinterpret1)thejoint
probabilityoftwoevents,2)the
probabilitythatatleastoneoftwo
eventswilloccur,giventheprobab
ility
ofe
achandthejointprobabilityofthe
two
events,and3)ajointprobabilityof
any
numberofindependentevents
2.8.f
calculatea
ndinterpret1)thejoint
probability
oftwoevents,2)the
probability
thatatleastoneoftwo
eventswilloccur,giventheprobability
ofeachandthejointprobabilityofthe
twoevents
,and3)ajointprobabilityof
anynumbe
rofindependentevents
Qu
antitative
2.8.g
distinguishbetweendependentan
d
inde
pendentevents
2.8.g
distinguish
betweendependentand
independentevents
Qu
antitative
2.8.h
calc
ulateandinterpretanunconditional
probabilityusingthetotalprobability
rule
2.8.h
calculatea
ndinterpretanunconditional
probability
usingthetotalprobability
rule
Qu
antitative
2.8.i
explaintheuseofconditional
expectationininvestmentapplicat
ions
2.8.i
explainthe
useofconditional
expectationininvestmentapplications
Qu
antitative
2.8.j
explaintheuseofatreediagramto
representaninvestmentproblem
2.8.j
explainthe
useofatreediagramto
representaninvestmentproblem
Qu
antitative
2.8.k
calc
ulateandinterpretcovariance
and
corr
elation
2.8.k
calculatea
ndinterpretcovarianceand
correlation
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Qu
antitative
2.8.l
calc
ulateandinterprettheexpecte
d
valu
e,variance,andstandarddeviation
ofa
randomvariableandofreturn
son
apo
rtfolio
2.8.l
calculatea
ndinterprettheexpected
value,variance,andstandarddeviation
ofarandomvariableandofreturnson
aportfolio
Qu
antitative
2.8.m
calc
ulateandinterpretcovariance
given
ajo
intprobabilityfunction
2.8.m
calculatea
ndinterpretcovariancegiven
ajointprobabilityfunction
Qu
antitative
2.8.n
calc
ulateandinterpretanupdated
probabilityusingBayesformula
2.8.n
calculatea
ndinterpretanupdated
probability
usingBayesformula
Qu
antitative
2.8.o
iden
tifythemostappropriatemethod
tosolveaparticularcountingprob
lem,
and
solvecountingproblemsusing
factorial,combination,andpermutation
concepts
2.8.o
identifythemostappropriatemethodto
solveaparticularcountingproblem,and
solvecountingproblemsusingfactorial,
combinatio
n,andpermutationconcepts
Qu
antitative
3.9.a
defineaprobabilitydistributionan
d
distinguishbetweendiscreteand
continuousrandomvariablesandtheir
probabilityfunctions
3.9.a
defineapr
obabilitydistributionand
distinguish
betweendiscreteand
continuous
randomvariablesandtheir
probability
functions
Qu
antitative
3.9.b
describethesetofpossibleoutcom
es
ofa
specifieddiscreterandomvariable
3.9.b
describeth
esetofpossibleoutcomesof
aspecified
discreterandomvariable
Qu
antitative
3.9.c
inte
rpretacumulativedistribution
func
tion
3.9.c
interpreta
cumulativedistribution
function
Qu
antitative
3.9.d
calc
ulateandinterpretprobabilitie
sfor
ara
ndomvariable,givenitscumulative
distributionfunction
3.9.d
calculatea
ndinterpretprobabilitiesfor
arandomvariable,givenitscumulative
distribution
function
Qu
antitative
3.9.e
defineadiscreteuniformrandom
variable,aBernoullirandomvariable,
and
abinomialrandomvariable
3.9.e
defineadiscreteuniformrandom
variable,a
Bernoullirandomvariable,
andabinomialrandomvariable
Qu
antitative
3.9.f
calc
ulateandinterpretprobabilitie
s
give
nthediscreteuniformandthe
bino
mialdistributionfunctions
3.9.f
calculatea
ndinterpretprobabilities
giventhed
iscreteuniformandthe
binomialdistributionfunctions
Qu
antitative
3.9.g
constructabinomialtreetodescri
be
stoc
kpricemovement
3.9.g
constructa
binomialtreetodescribe
stockprice
movement
Qu
antitative
3.9.h
calc
ulateandinterprettrackingerror
3.9.h
calculatea
ndinterprettrackingerror
Qu
antitative
3.9.i
definethecontinuousuniform
distributionandcalculateandinterpret
probabilities,givenacontinuous
unif
ormd
istribution
3.9.i
definethe
continuousuniform
distribution
andcalculateandinterpret
probabilitie
s,givenacontinuous
uniformdistribution
Qu
antitative
3.9.j
explainthekeypropertiesofthe
normaldistribution
3.9.j
explainthe
keypropertiesofthenormal
distribution
Qu
antitative
3.9.k
distinguishbetweenaunivariatea
nda
multivariatedistribution,andexplain
the
roleofcorrelationinthe
multivariatenormaldistribution
3.9.k
distinguish
betweenaunivariateanda
multivariat
edistribution,andexplain
theroleof
correlationinthe
multivariat
enormaldistribution
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Qu
antitative
3.9.l
dete
rminetheprobabilitythata
normallydistributedrandomvariable
lies
insideagiveninterval
3.9.l
determine
theprobabilitythata
normallydistributedrandomvariable
liesinsideagiveninterval
Qu
antitative
3.9.m
definethestandardnormaldistribution,
explainhowtostandardizearandom
variable,andcalculateandinterpret
probabilitiesusingthestandardno
rmal
distribution
3.9.m
definethe
standardnormaldistribution,
explainhowtostandardizearandom
variable,andcalculateandinterpret
probabilitie
susingthestandardnormal
distribution
Qu
antitative
3.9.n
defineshortfallr
isk,calculatethesafety
first
ratio,andselectanoptimal
portfoliousingRoyssafety-first
crite
rion
3.9.n
defineshortfallr
isk,calculatethesafety-
firstratio,andselectanoptimal
portfoliousingRoyssafety-first
criterion
Qu
antitative
3.9.o
explaintherelationshipbetween
normalandlognormaldistributionsand
why
thelognormaldistributionisu
sed
tom
odelassetprices
3.9.o
explainthe
relationshipbetweennormal
andlognor
maldistributionsandwhythe
lognormal
distributionisusedtomodel
assetprice
s
Qu
antitative
3.9.p
distinguishbetweendiscretelyand
continuouslycompoundedratesof
retu
rn,andcalculateandinterpret
a
continuouslycompoundedrateof
retu
rn,givenaspecificholdingperiod
retu
rn
3.9.p
distinguish
betweendiscretelyand
continuous
lycompoundedratesof
return,and
calculateandinterpreta
continuous
lycompoundedrateof
return,givenaspecificholdingperiod
return
Qu
antitative
3.9.q
explainMonteCarlosimulationand
describeitsapplicationsandlimita
tions
3.9.q
explainMo
nteCarlosimulationand
describeitsapplicationsandlimitations
Qu
antitative
3.9.r
com
pareMonteCarlosimulationand
historicalsimulation
3.9.r
compareM
onteCarlosimulationand
historicals
imulation
Qu
antitative
3.10.a
definesimplerandomsamplingan
da
sam
plingdistribution
3.10.a
definesimplerandomsamplinganda
samplingd
istribution
Qu
antitative
3.10.b
explainsamplingerror
3.10.b
explainsam
plingerror
Qu
antitative
3.10.c
distinguishbetweensimplerandom
and
stra
tifiedrandomsampling
3.10.c
distinguish
betweensimplerandomand
stratifiedrandomsampling
Qu
antitative
3.10.d
distinguishbetweentime-seriesan
d
cros
s-sectionaldata
3.10.d
distinguish
betweentime-seriesand
cross-secti
onaldata
Qu
antitative
3.10.e
explainthecentrallimittheorema
nd
itsimportance
3.10.e
explainthe
centrallimittheoremandits
importance
Qu
antitative
3.10.f
calc
ulateandinterpretthestandard
erro
rofthesamplemean
3.10.f
calculatea
ndinterpretthestandard
errorofthesamplemean
Qu
antitative
3.10.g
iden
tifyanddescribedesirable
propertiesofanestimator
3.10.g
identifyanddescribedesirable
properties
ofanestimator
Qu
antitative
3.10.h
distinguishbetweenapointestima
te
and
aconfidenceintervalestimate
ofa
populationparameter
3.10.h
distinguish
betweenapointestimate
andaconfidenceintervalestimateofa
population
parameter
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Qu
antitative
3.10.i
describepropertiesofStudentst-
distributionandcalculateandinterpret
itsd
egreesoffreedom
3.10.i
describepropertiesofStudentst-
distribution
andcalculateandinterpret
itsdegrees
offreedom
Qu
antitative
3.10.j
calc
ulateandinterpretaconfidenc
e
intervalforapopulationmean,giv
ena
normaldistributionwith1)aknow
n
populationvariance,2)anunknow
n
populationvariance,or3)anunkn
own
varianceandalargesamplesize
3.10.j
calculatea
ndinterpretaconfidence
intervalfor
apopulationmean,givena
normaldistributionwith1)aknown
population
variance,2)anunknown
population
variance,or3)anunknown
varianceandalargesamplesize
Qu
antitative
3.10.k
describetheissuesregardingselection
oftheappropriatesamplesize,data-
miningbias,sampleselectionbias,
surv
ivorshipbias,look-aheadbias,and
time
-periodbias
3.10.k
describeth
eissuesregardingselection
oftheappropriatesamplesize,data-
miningbias,sampleselectionbias,
survivorshipbias,look-aheadbias,and
time-periodbias
Qu
antitative
3.11.a
defineahypothesis,describethes
teps
ofh
ypothesistesting,anddescribe
and
interpretthechoiceofthenulland
alternativehypotheses
3.11.a
defineahy
pothesis,describethesteps
ofhypothe
sistesting,anddescribeand
interpretth
echoiceofthenulland
alternative
hypotheses
Qu
antitative
3.11.b
distinguishbetweenone-tailedandtwo-
taile
dtestsofhypotheses
3.11.b
distinguish
betweenone-tailedandtwo-
tailedtests
ofhypotheses
Qu
antitative
3.11.c
explainateststatistic,TypeIand
Type
IIerrors,asignificancelevel,and
how
sign
ificancelevelsareusedin
hypothesistesting
3.11.c
explainateststatistic,TypeIandType
IIerrors,a
significancelevel,andhow
significancelevelsareusedin
hypothesis
testing
Qu
antitative
3.11.d
explainadecisionrule,thepower
ofa
test
,andtherelationbetween
confidenceintervalsandhypothesis
test
s
3.11.d
explainad
ecisionrule,thepowerofa
test,andtherelationbetween
confidence
intervalsandhypothesis
tests
Qu
antitative
3.11.e
distinguishbetweenastatisticalre
sult
and
aneconomicallymeaningfulre
sult
3.11.e
distinguish
betweenastatisticalresult
andaneco
nomicallymeaningfulresult
Qu
antitative
3.11.f
explainandinterpretthep-valuea
sit
relatestohypothesistesting
3.11.f
explainandinterpretthep-valueasit
relatestoh
ypothesistesting
Qu
antitative
3.11.g
iden
tifytheappropriateteststatistic
and
interprettheresultsfora
hypothesistestconcerningthe
populationmeanofbothlargeand
sma
llsampleswhenthepopulationis
normallyorapproximatelydistribu
ted
and
thevarianceis1)knownor2)
unknown
3.11.g
identifytheappropriateteststatistic
andinterprettheresultsfora
hypothesis
testconcerningthe
population
meanofbothlargeandsmall
sampleswhenthepopulationis
normallyorapproximatelynormally
distributed
andthevarianceis1)known
or2)unknown
Wording
Change
-
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Qu
antitative
3.11.h
iden
tifytheappropriateteststatistic
and
interprettheresultsfora
hypothesistestconcerningtheequality
ofthepopulationmeansoftwoat
least
approximatelynormallydistributed
populations,basedonindependent
randomsampleswith1)equalor2)
unequalassumedvariances
3.11.h
identifytheappropriateteststatistic
andinterprettheresultsfora
hypothesis
testconcerningtheequality
ofthepopulationmeansoftwoatleast
approximatelynormallydistributed
populations,basedonindependent
randomsampleswith1)equalor2)
unequalas
sumedvariances
Qu
antitative
3.11.i
iden
tifytheappropriateteststatistic
and
interprettheresultsfora
hypothesistestconcerningtheme
an
diffe
renceoftwonormallydistribu
ted
populations
3.11.i
identifytheappropriateteststatistic
andinterprettheresultsfora
hypothesis
testconcerningthemean
differenceoftwonormallydistributed
populations
Qu
antitative
3.11.j
iden
tifytheappropriateteststatistic
and
interprettheresultsfora
hypothesistestconcerning1)the
varianceofanormallydistributed
population,and2)theequalityof
the
variancesoftwonormallydistributed
populationsbasedontwoindependent
randomsamples
3.11.j
identifytheappropriateteststatistic
andinterprettheresultsfora
hypothesis
testconcerning1)the
varianceofanormallydistributed
population,and2)theequalityofthe
varianceso
ftwonormallydistributed
populationsbasedontwoindependent
randomsamples
Qu
antitative
3.11.k
distinguishbetweenparametrican
d
nonparametrictestsanddescribe
situationsinwhichtheuseof
nonparametrictestsmaybe
appropriate
3.11.k
distinguish
betweenparametricand
nonparame
trictestsanddescribe
situationsinwhichtheuseof
nonparame
trictestsmaybeappropriate
Qu
antitative
3.12.a
explainprinciplesoftechnicalanalysis,
itsa
pplications,anditsunderlying
assu
mptions
3.12.a
explainprinciplesoftechnicalanalysis,
itsapplicat
ions,anditsunderlying
assumptions
Qu
antitative
3.12.b
describetheconstructionofdiffere
nt
type
softechnicalanalysischartsand
interpretthem
3.12.b
describeth
econstructionofdifferent
typesofte
chnicalanalysischartsand
interpretth
em
Qu
antitative
3.12.c
explainusesoftrend,support,
resistancelines,andchangeinpolarity
3.12.c
explainuse
softrend,support,
resistance
lines,andchangeinpolarity
Qu
antitative
3.12.d
describecommonchartpatterns
3.12.d
describeco
mmonchartpatterns
Qu
antitative
3.12.e
describecommontechnicalanalysis
indicators(price-based,momentum
oscillators,sentiment,andflowof
fund
s)
3.12.e
describeco
mmontechnicalanalysis
indicators(price-based,momentum
oscillators,
sentiment,andflowof
funds)
Qu
antitative
3.12.f
explainhowtechnicalanalystsuse
cycl
es
3.12.f
explainhowtechnicalanalystsuse
cycles
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Qu
antitative
3.12.g
describethekeytenetsofElliottW
ave
TheoryandtheimportanceofFibo
nacci
num
bers
3.12.g
describeth
ekeytenetsofElliottWave
Theoryand
theimportanceofFibonacci
numbers
Qu
antitative
3.12.h
describeintermarketanalysisasit
rela
testotechnicalanalysisandasset
allocation
3.12.h
describein
termarketanalysisasit
relatestot
echnicalanalysisandasset
allocation
Economics
4.13.a
distinguishamongtypesofmarkets
4.13.a
distinguish
amongtypesofmarkets
Economics
4.13.b
explaintheprinciplesofdemanda
nd
supply
4.13.b
explainthe
principlesofdemandand
supply
Economics
4.13.c
describecausesofshiftsinand
mov
ementsalongdemandandsupply
curv
es
4.13.c
describeca
usesofshiftsinand
movementsalongdemandandsupply
curves
Economics
4.13.d
describetheprocessofaggregatin
g
dem
andandsupplycurves
4.13.d
describeth
eprocessofaggregating
demandan
dsupplycurves
Economics
4.13.e
describetheconceptofequilibrium
(partialandgeneral),andmechan
isms
byw
hichmarketsachieveequilibrium
4.13.e
describeth
econceptofequilibrium
(partialandgeneral),andmechanisms
bywhichm
arketsachieveequilibrium
Economics
4.13.f
distinguishbetweenstableand
unstableequilibria,includingprice
bubbles,andidentifyinstancesof
such
equilibria
4.13.f
distinguish
betweenstableandunstable
equilibria,includingpricebubbles,and
identifyins
tancesofsuchequilibria
Economics
4.13.g
calc
ulateandinterpretindividuala
nd
aggregatedemand,andinverse
dem
andandsupplyfunctions,and
inte
rpretindividualandaggregate
dem
andandsupplycurves
4.13.g
calculatea
ndinterpretindividualand
aggregate
demand,andinversedemand
andsupply
functions,andinterpret
individualandaggregatedemandand
supplycurves
Economics
4.13.h
calc
ulateandinterprettheamountof
excessdemandorexcesssupply
asso
ciatedwithanon-equilibrium
price
4.13.h
calculatea
ndinterprettheamountof
excessdem
andorexcesssupply
associated
withanon-equilibriumprice
Economics
4.13.i
describetypesofauctionsandcalculate
the
winningprice(s)ofanauction
4.13.i
describety
pesofauctionsandcalculate
thewinningprice(s)ofanauction
Economics
4.13.j
calc
ulateandinterpretconsumer
surp
lus,producersurplus,andtotal
surp
lus
4.13.j
calculatea
ndinterpretconsumer
surplus,pr
oducersurplus,andtotal
surplus
Economics
4.13.k
describehowgovernmentregulation
and
interventionaffectdemandan
d
supply
4.13.k
describehowgovernmentregulation
andinterventionaffectdemandand
supply
Economics
4.13.l
fore
casttheeffectoftheintroduct
ion
and
theremovalofamarket
interference(e.g.,apriceflooror
ceiling)onpriceandquantity
4.13.l
forecastth
eeffectoftheintroduction
andtheremovalofamarket
interferenc
e(e.g.,apriceflooror
ceiling)on
priceandquantity
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Economics
4.13.m
calc
ulateandinterpretprice,incom
e,
and
cross-priceelasticitiesofdemand
and
describefactorsthataffecteach
mea
sure
4.13.m
calculatea
ndinterpretprice,income,
andcross-priceelasticitiesofdemand
anddescribefactorsthataffecteach
measure
Economics
4.14.a
describeconsumerchoicetheorya
nd
utilitytheory
4.14.a
describeco
nsumerchoicetheoryand
utilitytheo
ry
Economics
4.14.b
describetheuseofindifferencecu
rves,
opportunitysets,andbudget
constraintsindecisionmaking
4.14.b
describeth
euseofindifferencecurves,
opportunitysets,andbudgetconstraints
indecision
making
Economics
4.14.c
calc
ulateandinterpretabudget
constraint
4.14.c
calculatea
ndinterpretabudget
constraint
Economics
4.14.d
dete
rmineaconsumersequilibrium
bundleofgoodsbasedonutility
analysis
4.14.d
determine
aconsumersequilibrium
bundleofg
oodsbasedonutility
analysis
Economics
4.14.e
com
paresubstitutionandincome
effects
4.14.e
comparesubstitutionandincomeeffects
Economics
4.14.f
distinguishbetweennormalgoods
and
inferiorgoods,andexplainGiffengoods
and
Veblengoodsinthiscontext
4.14.f
distinguish
betweennormalgoodsand
inferiorgoods,andexplainGiffengoods
andVeblen
goodsinthiscontext
Economics
4.15.a
calc
ulate,interpret,andcompare
acco
untingprofit,economicprofit,
normalprofit,andeconomicrent
4.15.a
calculate,interpret,andcompare
accounting
profit,economicprofit,
normalpro
fit,andeconomicrent
Economics
4.15.b
calc
ulateandinterpretandcompare
tota
l,average,andmarginalreven
ue
4.15.b
calculatea
ndinterpretandcompare
total,average,andmarginalrevenue
Economics
4.15.c
describeafirmsfactorsofproduction
4.15.c
describea
firmsfactorsofproduction
Economics
4.15.d
calc
ulateandinterprettotal,avera
ge,
mar
ginal,fixed,andvariablecosts
4.15.d
calculatea
ndinterprettotal,average,
marginal,fixed,andvariablecosts
Economics
4.15.e
dete
rmineanddescribebreakeven
and
shutdownpointsofproduction
4.15.e
determine
anddescribebreakevenand
shutdownpointsofproduction
Economics
4.15.f
describeapproachestodeterminin
gthe
profit-maximizinglevelofoutput
4.15.f
describeapproachestodeterminingthe
profit-maximizinglevelofoutput
Economics
4.15.g
describehoweconomiesofscalea
nd
dise
conomiesofscaleaffectcosts
4.15.g
describehoweconomiesofscaleand
diseconom
iesofscaleaffectcosts
Economics
4.15.h
distinguishbetweenshort-runand
long-
run
profitmaximization
4.15.h
distinguish
betweenshort-runandlong-
runprofitm
aximization
Economics
4.15.i
distinguishamongdecreasing-cost,
constant-cost,andincreasing-cost
indu
striesanddescribethelong-ru
n
supplyofeach
4.15.i
distinguish
amongdecreasing-cost,
constant-cost,andincreasing-cost
industriesanddescribethelong-run
supplyofe
ach
Economics
4.15.j
calc
ulateandinterprettotal,marg
inal,
and
averageproductoflabor
4.15.j
calculatea
ndinterprettotal,marginal,
andaverag
eproductoflabor
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Economics
4.15.k
describethephenomenonof
diminishingmarginalreturnsand
calc
ulateandinterprettheprofit-
max
imizingutilizationlevelofaninput
4.15.k
describeth
ephenomenonofdiminishing
marginalreturnsandcalculateand
interpretth
eprofit-maximizing
utilizationlevelofaninput
Economics
4.15.l
dete
rminetheoptimalcombinationof
reso
urcesthatminimizescost
4.15.l
determine
theoptimalcombinationof
resourcesthatminimizescost
Economics
4.16.a
describecharacteristicsofperfect
com
petition,monopolisticcompeti
tion,
oligopoly,andpuremonopoly
4.16.a
describech
aracteristicsofperfect
competition,monopolisticcompetition,
oligopoly,a
ndpuremonopoly
Economics
4.16.b
explainrelationshipsbetweenprice,
mar
ginalrevenue,marginalcost,
economicprofit,andtheelasticity
of
dem
andundereachmarketstructure
4.16.b
explainrelationshipsbetweenprice,
marginalrevenue,marginalcost,
economicp
rofit,andtheelasticityof
demandun
dereachmarketstructure
Economics
4.16.c
describeafirmssupplyfunctionu
nder
eachmarketstructure
4.16.c
describea
firmssupplyfunctionunder
eachmarketstructure
Economics
4.16.d
describeanddeterminetheoptimal
priceandoutputforfirmsundereach
mar
ketstructure
4.16.d
describeanddeterminetheoptimal
priceando
utputforfirmsundereach
marketstructure
Economics
4.16.e
explainfactorsaffectinglong-run
equilibriumundereachmarket
stru
cture
4.16.e
explainfac
torsaffectinglong-run
equilibrium
undereachmarketstructure
Economics
4.16.f
describepricingstrategyundereach
mar
ketstructure
4.16.f
describepr
icingstrategyundereach
marketstructure
Economics
4.16.g
describetheuseandlimitationsof
concentrationmeasuresinidentify
ing
mar
ketstructure
4.16.g
describeth
euseandlimitationsof
concentrationmeasuresinidentifying
marketstructure
Economics
4.16.h
iden
tifythetypeofmarketstructu
re
with
inwhichafirmoperates
4.16.h
identifythetypeofmarketstructure
withinwhic
hafirmoperates
Economics
5.17.a
calc
ulateandexplaingrossdomes
tic
product(GDP)usingexpenditurea
nd
inco
meapproaches
5.17.a
calculatea
ndexplaingrossdomestic
product(G
DP)usingexpenditureand
incomeapproaches
Economics
5.17.b
com
parethesum-of-value-addedand
valu
e-of-final-outputmethodsof
calc
ulatingGDP
5.17.b
compareth
esum-of-value-addedand
value-of-final-outputmethodsof
calculating
GDP
Economics
5.17.c
com
parenominalandrealGDPand
calc
ulateandinterprettheGDPde
flator
5.17.c
comparenominalandrealGDPand
calculatea
ndinterprettheGDPdeflator
Economics
5.17.d
com
pareGDP,nationalincome,
personalincome,andpersonal
disp
osableincome
5.17.d
compareG
DP,nationalincome,personal
income,an
dpersonaldisposableincome
Economics
5.17.e
explainthefundamentalrelationsh
ip
amo
ngsaving,investment,thefiscal
bala
nce,andthetradebalance
5.17.e
explainthe
fundamentalrelationship
amongsav
ing,investment,thefiscal
balance,andthetradebalance
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Economics
5.17.f
explaintheISandLMcurvesandhow
they
combinetogeneratethe
aggregatedemandcurve
5.17.f
explainthe
ISandLMcurvesandhow
theycombinetogeneratetheaggregate
demandcu
rve
Economics
5.17.g
explaintheaggregatesupplycurvein
the
shortrunandlongrun
5.17.g
explainthe
aggregatesupplycurvein
theshortrunandlongrun
Economics
5.17.h
explaincausesofmovementsalon
gand
shiftsinaggregatedemandandsu
pply
curv
es
5.17.h
explaincau
sesofmovementsalongand
shiftsinag
gregatedemandandsupply
curves
Economics
5.17.i
describehowfluctuationsinaggre
gate
dem
andandaggregatesupplycau
se
short-runchangesintheeconomy
and
the
businesscycle
5.17.i
describehowfluctuationsinaggregate
demandan
daggregatesupplycause
short-runc
hangesintheeconomyand
thebusinesscycle
Economics
5.17.j
distinguishbetweenthefollowingtypes
ofm
acroeconomicequilibria:long-run
fullemployment,short-run
rece
ssionarygap,short-runinflationary
gap,andshort-runstagflation
5.17.j
distinguish
betweenthefollowingtypes
ofmacroec
onomicequilibria:long-run
fullemploy
ment,short-runrecessionary
gap,short-runinflationarygap,and
short-runs
tagflation
Economics
5.17.k
explainhowashort-run
mac
roeconomicequilibriummayo
ccur
ata
levelaboveorbelowfull
emp
loyment
5.17.k
explainhowashort-runmacroeconomic
equilibrium
mayoccuratalevelabove
orbelowfu
llemployment
Economics
5.17.l
analyzetheeffectofcombinedcha
nges
inaggregatesupplyanddemando
nthe
economy
5.17.l
analyzetheeffectofcombinedchanges
inaggrega
tesupplyanddemandonthe
economy
Economics
5.17.m
describesources,measurement,a
nd
sustainabilityofeconomicgrowth
5.17.m
describeso
urces,measurement,and
sustainabil
ityofeconomicgrowth
Economics
5.17.n
describetheproductionfunction
approachtoanalyzingthesources
of
economicgrowth
5.17.n
describeth
eproductionfunction
approacht
oanalyzingthesourcesof
economicg
rowth
Economics
5.17.o
distinguishbetweeninputgrowthand
growthoftotalfactorproductivity
as
com
ponentsofeconomicgrowth
5.17.o
distinguish
betweeninputgrowthand
growthoftotalfactorproductivityas
componentsofeconomicgrowth
Economics
5.18.a
describethebusinesscycleandits
phases
5.18.a
describeth
ebusinesscycleandits
phases
Economics
5.18.b
describehowresourceuse,housin
g
sect
oractivity,andexternaltrade
sect
oractivityvaryasaneconomy
mov
esthroughthebusinesscycle
5.18.b
describehowresourceuse,housing
sectoractivity,andexternaltradesector
activityvaryasaneconomymoves
throughthebusinesscycle
Economics
5.18.c
describetheoriesofthebusinessc
ycle
5.18.c
describeth
eoriesofthebusinesscycle
Economics
5.18.d
describetypesofunemploymenta
nd
mea
suresofunemployment
5.18.d
describety
pesofunemploymentand
measuresofunemployment
Economics
5.18.e
explaininflation,hyperinflation,
disinflation,anddeflation
5.18.e
explaininflation,hyperinflation,
disinflation
,anddeflation
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Economics
5.18.f
explaintheconstructionofindices
used
tom
easureinflation
5.18.f
explainthe
constructionofindicesused
tomeasure
inflation
Economics
5.18.g
com
pareinflationmeasures,including
theirusesandlimitations
5.18.g
comparein
flationmeasures,including
theirusesandlimitations
Economics
5.18.h
distinguishbetweencost-pushand
dem
and-pullinflation
5.18.h
distinguish
betweencost-pushand
demand-pullinflation
Economics
5.18.i
describeeconomicindicators,inclu
ding
thei
rusesandlimitations
5.18.i
describeeconomicindicators,including
theirusesandlimitations
Economics
5.19.a
com
paremonetaryandfiscalpolic
y
5.19.a
comparem
onetaryandfiscalpolicy
Economics
5.19.b
describefunctionsanddefinitionsof
mon
ey
5.19.b
describefu
nctionsanddefinitionsof
money
Economics
5.19.c
explainthemoneycreationproces
s
5.19.c
explainthe
moneycreationprocess
Economics
5.19.d
describetheoriesofthedemandfo
r
and
supplyofmoney
5.19.d
describeth
eoriesofthedemandforand
supplyofm
oney
Economics
5.19.e
describetheFishereffect
5.19.e
describeth
eFishereffect
Economics
5.19.f
describerolesandobjectivesofce
ntral
banks
5.19.f
describero
lesandobjectivesofcentral
banks
Economics
5.19.g
contrastthecostsofexpectedand
unexpectedinflation
5.19.g
contrastth
ecostsofexpectedand
unexpectedinflation
Economics
5.19.h
describetoolsusedtoimplement
mon
etarypolicy
5.19.h
describeto
olsusedtoimplement
monetarypolicy
Economics
5.19.i
describethemonetarytransmissio
n
mec
hanism
5.19.i
describeth
emonetarytransmission
mechanism
Economics
5.19.j
describequalitiesofeffectivecentral
banks
5.19.j
describequalitiesofeffectivecentral
banks
Economics
5.19.k
explaintherelationshipsbetween
mon
etarypolicyandeconomicgro
wth,
infla
tion,interest,andexchangerates
5.19.k
explainthe
relationshipsbetween
monetarypolicyandeconomicgrowth,
inflation,in
terest,andexchangerates
Economics
5.19.l
contrasttheuseofinflation,intere
st
rate
,andexchangeratetargeting
by
centralbanks
5.19.l
contrastth
euseofinflation,interest
rate,ande
xchangeratetargetingby
centralban
ks
Economics
5.19.m
dete
rminewhetheramonetarypo
licyis
expansionaryorcontractionary
5.19.m
determine
whetheramonetarypolicyis
expansiona
ryorcontractionary
Economics
5.19.n
describelimitationsofmonetarypolicy
5.19.n
describelim
itationsofmonetarypolicy
Economics
5.19.o
describerolesandobjectivesoffis
cal
policy
5.19.o
describero
lesandobjectivesoffiscal
policy
Economics
5.19.p
describetoolsoffiscalpolicy,inclu
ding
theiradvantagesanddisadvantages
5.19.p
describeto
olsoffiscalpolicy,including
theiradvan
tagesanddisadvantages
Economics
5.19.q
describetheargumentsaboutwhe
ther
the
sizeofanationaldebtrelative
to
GDP
matters
5.19.q
describeth
eargumentsaboutwhether
thesizeof
anationaldebtrelativeto
GDPmatte
rs
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Economics
5.19.r
explaintheimplementationoffiscal
policyanddifficultiesofimplementation
5.19.r
explainthe
implementationoffiscal
policyand
difficultiesofimplementation
Economics
5.19.s
dete
rminewhetherafiscalpolicyis
expansionaryorcontractionary
5.19.s
determine
whetherafiscalpolicyis
expansiona
ryorcontractionary
Economics
5.19.t
explaintheinteractionofmonetaryand
fiscalpolicy
5.19.t
explainthe
interactionofmonetaryand
fiscalpolicy
Economics
6.20.a
com
paregrossdomesticproducta
nd
grossnationalproduct
6.20.a
comparegrossdomesticproductand
grossnatio
nalproduct
Economics
6.20.b
describebenefitsandcostsof
inte
rnationaltrade
6.20.b
describebenefitsandcostsof
internation
altrade
Economics
6.20.c
distinguishbetweencomparative
advantageandabsoluteadvantage
6.20.c
distinguish
betweencomparative
advantage
andabsoluteadvantage
Economics
6.20.d
explaintheRicardianand
HeckscherOhlinmodelsoftradea
nd
the
source(s)ofcomparativeadva
ntage
ineachmodel
6.20.d
explainthe
Ricardianand
HeckscherOhlinmodelsoftradeand
thesource(s)ofcomparativeadvantage
ineachmo
del
Economics
6.20.e
com
paretypesoftradeandcapita
l
rest
rictionsandtheireconomic
implications
6.20.e
comparety
pesoftradeandcapital
restrictions
andtheireconomic
implication
s
Economics
6.20.f
explainmotivationsforandadvantages
oftradingblocs,commonmarkets,and
economicunions
6.20.f
explainmo
tivationsforandadvantages
oftradingblocs,commonmarkets,and
economicu
nions
Economics
6.20.g
describecommonobjectivesofcapital
rest
rictionsimposedbygovernments
6.20.g
describeco
mmonobjectivesofcapital
restrictions
imposedbygovernments
Economics
6.20.h
describethebalanceofpayments
accountsincludingtheircomponent
s
6.20.h
describeth
ebalanceofpayments
accountsin
cludingtheircomponents
Economics
6.20.i
explainhowdecisionsbyconsume
rs,
firm
s,andgovernmentsaffectthe
bala
nceofpayments
6.20.i
explainhowdecisionsbyconsumers,
firms,and
governmentsaffectthe
balanceof
payments
Economics
6.20.j
describefunctionsandobjectivesofthe
inte
rnationalorganizationsthat
facilitatetrade,includingtheWorld
Ban
k,theInternationalMonetaryFund,
and
theWorldTradeOrganization
6.20.j
describefu
nctionsandobjectivesofthe
internation
alorganizationsthatfacilitate
trade,inclu
dingtheWorldBank,the
Internation
alMonetaryFund,andthe
WorldTrad
eOrganization
Economics
6.21.a
defineanexchangerate,and
distinguishbetweennominalandr
eal
exchangeratesandspotandforward
exchangerates
6.21.a
defineane
xchangerate,and
distinguish
betweennominalandreal
exchangeratesandspotandforward
exchangerates
Economics
6.21.b
describefunctionsofandparticipa
ntsin
the
foreignexchangemarket
6.21.b
describefu
nctionsofandparticipantsin
theforeign
exchangemarket
-
7/26/2019 CFA 2015V2016
15/43
Economics
6.21.c
calc
ulateandinterpretthepercentage
changeinacurrencyrelativeto
anothercurrency
6.21.c
calculatea
ndinterpretthepercentage
changeinacurrencyrelativetoanother
currency
Economics
6.21.d
calc
ulateandinterpretcurrencycr
oss-
rate
s
6.21.d
calculatea
ndinterpretcurrencycross-
rates
Economics
6.21.e
convertforwardquotationsexpres
sed
ona
pointsbasisorinpercentage
term
sintoanoutrightforward
quotation
6.21.e
convertfor
wardquotationsexpressed
onapoints
basisorinpercentageterms
intoanout
rightforwardquotation
Economics
6.21.f
explainthearbitragerelationship
betw
eenspotrates,forwardrates,and
inte
restrates
6.21.f
explainthe
arbitragerelationship
betweenspotrates,forwardrates,and
interestrates
Economics
6.21.g
calc
ulateandinterpretaforward
disc
ountorpremium
6.21.g
calculatea
ndinterpretaforward
discountorpremium
Economics
6.21.h
calc
ulateandinterprettheforward
rate
consistentwiththespotrateandt
he
inte
restrateineachcurrency
6.21.h
calculatea
ndinterprettheforwardrate
consistent
withthespotrateandthe
interestrateineachcurrency
Economics
6.21.i
describeexchangerateregimes
6.21.i
describeexchangerateregimes
Economics
6.21.j
explaintheeffectsofexchangerateson
countriesinternationaltradeand
capitalflows
6.21.j
explainthe
effectsofexchangerateson
countriesinternationaltradeandcapital
flows
Fin
ancial
Re
porting
7.22.a
describetherolesoffinancialrepo
rting
and
financialstatementanalysis
7.22.a
describeth
erolesoffinancialreporting
andfinancialstatementanalysis
Fin
ancial
Re
porting
7.22.b
describetherolesofthekeyfinancial
stat
ements(statementoffinancial
position,statementofcomprehensive
inco
me,statementofchangesin
equity,andstatementofcashflow
s)in
evaluatingacompanysperforman
ce
and
financialposition
7.22.b
describeth
erolesofthestatementof
financialposition,statementof
comprehen
siveincome,statementof
changesin
equity,andstatementof
cashflows
inevaluatingacompanys
performanceandfinancialposition
Wording
Change
Fin
ancial
Re
porting
7.22.c
describetheimportanceoffinancial
stat
ementnotesandsupplementary
informationincludingdisclosures
of
accountingpolicies,methods,and
estimatesandmanagements
com
mentary
7.22.c
describeth
eimportanceoffinancial
statement
notesandsupplementary
informationincludingdisclosuresof
accounting
policies,methods,and
estimates
andmanagements
commentary
Fin
ancial
Re
porting
7.22.d
describetheobjectiveofauditsof
financialstatements,thetypesofaudit
repo
rts,andtheimportanceofeffective
inte
rnalcontrols
7.22.d
describeth
eobjectiveofauditsof
financialst
atements,thetypesofaudit
reports,an
dtheimportanceofeffective
internalcontrols
-
7/26/2019 CFA 2015V2016
16/43
Fin
ancial
Re
porting
7.22.e
iden
tifyanddescribeinformation
sourcesthatanalystsuseinfinanc
ial
stat
ementanalysisbesidesannual
financialstatementsandsuppleme
ntary
information
7.22.e
identifyanddescribeinformation
sourcesthatanalystsuseinfinancial
statement
analysisbesidesannual
financialst
atementsandsupplementary
information
Fin
ancial
Re
porting
7.22.f
describethestepsinthefinancial
stat
ementanalysisframework
7.22.f
describeth
estepsinthefinancial
statement
analysisframework
Fin
ancial
Re
porting
7.23.a
describehowbusinessactivitiesare
classifiedforfinancialreporting
purposes
New
Fin
ancial
Re
porting
7.23.a
explaintherelationshipoffinancia
l
stat
ementelementsandaccounts,and
clas
sifyaccountsintothefinancial
stat
ementelements
7.23.b
explainthe
relationshipoffinancial
statement
elementsandaccounts,and
classifyaccountsintothefinancial
statement
elements
Fin
ancial
Re
porting
7.23.b
explaintheaccountingequationin
its
basicandexpandedforms
7.23.c
explainthe
accountingequationinits
basicande
xpandedforms
Fin
ancial
Re
porting
7.23.c
describetheprocessofrecording
businesstransactionsusingan
accountingsystembasedonthe
accountingequation
7.23.d
describeth
eprocessofrecording
businesstr
ansactionsusingan
accounting
systembasedonthe
accounting
equation
Fin
ancial
Re
porting
7.23.d
describetheneedforaccrualsand
othe
radjustmentsinpreparing
financialstatements
7.23.e
describeth
eneedforaccrualsand
valuationa
djustmentsinpreparing
financialst
atements
Wording
Change
Fin
ancial
Re
porting
7.23.e
describetherelationshipsamongthe
inco
mestatement,balancesheet,
stat
ementofcashflows,andstate
ment
ofo
wnersequity
7.23.f
describeth
erelationshipsamongthe
incomesta
tement,balancesheet,
statement
ofcashflows,andstatement
ofownersequity
Fin
ancial
Re
porting
7.23.f
describetheflowofinformationin
an
acco
untingsystem
7.23.g
describeth
eflowofinformationinan
accounting
system
Fin
ancial
Re
porting
7.23.g
describetheuseoftheresultsoft
he
acco
untingprocessinsecurityana
lysis
7.23.h
describeth
euseoftheresultsofthe
accounting
processinsecurityanalysis
Fin
ancial
Re
porting
7.24.a
describetheobjectiveoffinancial
stat
ementsandtheimportanceof
financialreportingstandardsinsecurity
analysisandvaluation
7.24.a
describeth
eobjectiveoffinancial
statements
andtheimportanceof
financialre
portingstandardsinsecurity
analysisan
dvaluation
Fin
ancial
Re
porting
7.24.b
describerolesanddesirableattributes
offinancialreportingstandard-setting
bodiesandregulatoryauthoritiesin
esta
blishingandenforcingreportin
g
stan
dards,anddescribetheroleofthe
Inte
rnationalOrganizationofSecu
rities
Com
missions
7.24.b
describero
lesanddesirableattributes
offinancialreportingstandard-setting
bodiesand
regulatoryauthoritiesin
establishingandenforcingreporting
standards,
anddescribetheroleofthe
Internation
alOrganizationofSecurities
Commissio
ns
-
7/26/2019 CFA 2015V2016
17/43
Fin
ancial
Re
porting
7.24.c
describethestatusofglobal
convergenceofaccountingstandards
and
ongoingbarrierstodeveloping
one
univ
ersallyacceptedsetoffinancial
reportingstandards
7.24.c
describeth
estatusofglobal
convergenceofaccountingstandards
andongoin
gbarrierstodevelopingone
universally
acceptedsetoffinancial
reportings
tandards
Fin
ancial
Re
porting
7.24.d
describetheInternationalAccount
ing
StandardsBoardsconceptual
fram
ework,includingtheobjective
and
qualitativecharacteristicsoffinanc
ial
stat
ements,requiredreporting
elem
ents,andconstraintsand
assu
mptionsinpreparingfinancial
stat
ements
7.24.d
describeth
eInternationalAccounting
Standards
Boardsconceptual
framework
,includingtheobjectiveand
qualitative
characteristicsoffinancial
statements,requiredreporting
elements,andconstraintsand
assumptionsinpreparingfinancial
statements
Fin
ancial
Re
porting
7.24.e
describegeneralrequirementsfor
financialstatementsunder
Inte
rnationalFinancialReporting
Standards(IFRS)
7.24.e
describegeneralrequirementsfor
financialst
atementsunderInternational
FinancialR
eportingStandards(IFRS)
Fin
ancial
Re
porting
7.24.f
com
parekeyconceptsoffinancial
reportingstandardsunderIFRSan
dUS
generallyacceptedaccounting
prin
ciples(USGAAP)reportingsys
tems
7.24.f
comparekeyconceptsoffinancial
reportings
tandardsunderIFRSandUS
generallya
cceptedaccountingprinciples
(USGAAP)
reportingsystems
Fin
ancial
Re
porting
7.24.g
iden
tifycharacteristicsofacohere
nt
financialreportingframeworkand
the
barr
ierstocreatingsuchaframew
ork
7.24.g
identifycharacteristicsofacoherent
financialre
portingframeworkandthe
barriersto
creatingsuchaframework
Fin
ancial
Re
porting
7.24.h
describeimplicationsforfinancial
analysisofdifferingfinancialrepor
ting
syst
emsandtheimportanceof
mon
itoringdevelopmentsinfinanc
ial
repo
rtingstandards
7.24.h
describeim
plicationsforfinancial
analysisof
differingfinancialreporting
systemsan
dtheimportanceof
monitoring
developmentsinfinancial
reportings
tandards
Fin
ancial
Re
porting
7.24.i
analyzecompanydisclosuresof
sign
ificantaccountingpolicies
7.24.i
analyzecompanydisclosuresof
significant
accountingpolicies
Fin
ancial
Re
porting
8.25.a
describethecomponentsoftheincome
stat
ementandalternativepresentation
form
atsofthatstatement
8.25.a
describeth
ecomponentsoftheincome
statement
andalternativepresentation
formatsof
thatstatement
-
7/26/2019 CFA 2015V2016
18/43
Fin
ancial
Re
porting
8.25.b
describegeneralprinciplesofreve
nue
reco
gnitionandaccrualaccounting
,
specificrevenuerecognition
applications(includingaccounting
for
long
-termcontracts,installmentsales,
bart
ertransactions,grossandnet
repo
rtingofrevenue),andimplications
ofrevenuerecognitionprinciplesfor
financialanalysis
8.25.b
describegeneralprinciplesofrevenue
recognition
andaccrualaccounting,
specificrev
enuerecognitionapplications
(includingaccountingforlong-term
contracts,installmentsales,barter
transaction
s,grossandnetreportingof
revenue),andimplicationsofrevenue
recognition
principlesforfinancial
analysis
Fin
ancial
Re
porting
8.25.c
calc
ulaterevenuegiveninformatio
n
that
mightinfluencethechoiceof
reve
nuerecognitionmethod
8.25.c
calculaterevenuegiveninformationthat
mightinflu
encethechoiceofrevenue
recognition
method
Fin
ancial
Re
porting
8.25.d
describekeyaspectsoftheconverged
accounting
standardsissuedbythe
Internation
alAccountingStandards
Boardand
FinancialAccounting
Standards
BoardinMay2014
New
Fin
ancial
Re
porting
8.25.d
describegeneralprinciplesofexpe
nse
reco
gnition,specificexpense
reco
gnitionapplications,and
implicationsofexpenserecognition
choicesforfinancialanalysis
8.25.e
describegeneralprinciplesofexpense
recognition
,specificexpenserecognition
application
s,andimplicationsof
expensere
cognitionchoicesforfinancial
analysis
Fin
ancial
Re
porting
8.25.e
describethefinancialreporting
trea
tmentandanalysisofnon-recurring
item
s(includingdiscontinued
operations,extraordinaryitems,
unu
sualorinfrequentitems)and
changesinaccountingstandards
8.25.f
describeth
efinancialreporting
treatment
andanalysisofnon-recurring
items(includingdiscontinued
operations,extraordinaryitems,
unusualor
infrequentitems)and
changesin
accountingpolicies
Wording
Change
Fin
ancial
Re
porting
8.25.f
distinguishbetweentheoperating
and
non-operatingcomponentsofthe
inco
mestatement
8.25.g
distinguish
betweentheoperatingand
non-operatingcomponentsofthe
incomesta
tement
Fin
ancial
Re
porting
8.25.g
describehowearningspershareis
calc
ulatedandcalculateandinterp
reta
com
panysearningspershare(both
basicanddilutedearningspersha
re)
forbothsimpleandcomplexcapital
stru
ctures
8.25.h
describehowearningspershareis
calculated
andcalculateandinterpreta
companys
earningspershare(both
basicandd
ilutedearningspershare)
forbothsimpleandcomplexcapital
structures
Fin
ancial
Re
porting
8.25.h
distinguishbetweendilutiveand
anti
dilutivesecurities,anddescribethe
implicationsofeachfortheearnings
per
sharecalculation
8.25.i
distinguish
betweendilutiveand
antidilutive
securities,anddescribethe
implication
sofeachfortheearningsper
sharecalcu
lation
Fin
ancial
Re
porting
8.25.i
convertincomestatementstocom
mon-
size
incomestatements
8.25.j
convertinc
omestatementstocommon-
sizeincomestatements
-
7/26/2019 CFA 2015V2016
19/43
Fin
ancial
Re
porting
8.25.j
evaluateacompanysfinancial
perf
ormanceusingcommon-size
inco
mestatementsandfinancialratios
basedontheincomestatement
8.25.k
evaluatea
companysfinancial
performanceusingcommon-sizeincome
statements
andfinancialratiosbasedon
theincome
statement
Fin
ancial
Re
porting
8.25.k
describe,calculate,andinterpret
com
prehensiveincome
8.25.l
describe,c
alculate,andinterpret
comprehen
siveincome
Fin
ancial
Re
porting
8.25.l
describeothercomprehensiveinco
me,
and
identifymajortypesofitems
includedinit
8.25.m
describeothercomprehensiveincome,
andidentifymajortypesofitems
includedin
it
Fin
ancial
Re
porting
8.26.a
describetheelementsofthebalan
ce
sheet:assets,liabilities,andequity
8.26.a
describeth
eelementsofthebalance
sheet:assets,liabilities,andequity
Fin
ancial
Re
porting
8.26.b
describeusesandlimitationsofth
e
bala
ncesheetinfinancialanalysis
8.26.b
describeusesandlimitationsofthe
balancesh
eetinfinancialanalysis
Fin
ancial
Re
porting
8.26.c
describealternativeformatsofbalance
sheetpresentation
8.26.c
describealternativeformatsofbalance
sheetpresentation
Fin
ancial
Re
porting
8.26.d
distinguishbetweencurrentandnon-
curr
entassets,andcurrentandno
n-
curr
entliabilities
8.26.d
distinguish
betweencurrentandnon-
currentass
ets,andcurrentandnon-
currentliabilities
Fin
ancial
Re
porting
8.26.e
describedifferenttypesofassetsand
liabilitiesandthemeasurementba
ses
ofe
ach
8.26.e
describedifferenttypesofassetsand
liabilitiesandthemeasurementbasesof
each
Fin
ancial
Re
porting
8.26.f
describethecomponentsof
shareholdersequity
8.26.f
describeth
ecomponentsof
shareholde
rsequity
Fin
ancial
Re
porting
8.26.g
convertbalancesheetstocommon
-size
bala
ncesheetsandinterpretcomm
on-
size
balancesheets
8.26.g
convertbalancesheetstocommon-size
balancesh
eetsandinterpretcommon-
sizebalanc
esheets
Fin
ancial
Re
porting
8.26.h
calc
ulateandinterpretliquidityand
solv
encyratios
8.26.h
calculatea
ndinterpretliquidityand
solvencyra
tios
Fin
ancial
Re
porting
8.27.a
com
parecashflowsfromoperating,
inve
sting,andfinancingactivitiesand
clas
sifycashflowitemsasrelating
to
one
ofthosethreecategoriesgivena
descriptionoftheitems
8.27.a
comparecashflowsfromoperating,
investing,andfinancingactivitiesand
classifycashflowitemsasrelatingto
oneofthosethreecategoriesgivena
description
oftheitems
Fin
ancial
Re
porting
8.27.b
describehownon-cashinvestinga
nd
financingactivitiesarereported
8.27.b
describehownon-cashinvestingand
financinga
ctivitiesarereported
Fin
ancial
Re
porting
8.27.c
contrastcashflowstatementsprepared
underInternationalFinancialRepo
rting
Standards(IFRS)andU.S.generally
acce
ptedaccountingprinciples(U.
S.
GAA
P)
8.27.c
contrastca
shflowstatementsprepared
underInternationalFinancialReporting
Standards
(IFRS)andU.S.generally
accepteda
ccountingprinciples(U.S.
GAAP)
-
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20/43
Fin
ancial
Re
porting
8.27.d
distinguishbetweenthedirectand
indirectmethodsofpresentingcas
h
from
operatingactivitiesanddescribe
argumentsinfavorofeachmethod
8.27.d
distinguish
betweenthedirectand
indirectme
thodsofpresentingcash
fromopera
tingactivitiesanddescribe
arguments
infavorofeachmethod
Fin
ancial
Re
porting
8.27.e
describehowthecashflowstatem
ent
islinkedtotheincomestatementand
the
balancesheet
8.27.e
describehowthecashflowstatementis
linkedtoth
eincomestatementandthe
balancesh
eet
Fin
ancial
Re
porting
8.27.f
describethestepsinthepreparationof
dire
ctandindirectcashflow
stat
ements,includinghowcashflo
ws
can
becomputedusingincome
stat
ementandbalancesheetdata
8.27.f
describeth
estepsinthepreparationof
directand
indirectcashflow
statements
,includinghowcashflows
canbecom
putedusingincome
statement
andbalancesheetdata
Fin
ancial
Re
porting
8.27.g
convertcashflowsfromt
heindirectto
dire
ctmethod
8.27.g
convertcashflowsfromt
heindirectto
directmethod
Fin
ancial
Re
porting
8.27.h
analyzeandinterpretbothreporte
d
and
common-sizecashflowstatem
ents
8.27.h
analyzean
dinterpretbothreportedand
common-sizecashflowstatements
Fin
ancial
Re
porting
8.27.i
calc
ulateandinterpretfreecashfl
owto
the
firm,freecashflowtoequity,and
performanceandcoveragecashflow
ratios
8.27.i
calculatea
ndinterpretfreecashflowto
thefirm,fr
eecashflowtoequity,and
performanceandcoveragecashflow
ratios
Fin
ancial
Re
porting
8.28.a
describetoolsandtechniquesusedin
financialanalysis,includingtheiru
ses
and
limitations
8.28.a
describeto
olsandtechniquesusedin
financialan
alysis,includingtheiruses
andlimitat
ions
Fin
ancial
Re
porting
8.28.b
clas
sify,calculate,andinterpret
activity,liquidity,solvency,profitability,
and
valuationratios
8.28.b
classify,ca
lculate,andinterpretactivity,
liquidity,so
lvency,profitability,and
valuationr
atios
Fin
ancial
Re
porting
8.28.c
describerelationshipsamongratio
sand
evaluateacompanyusingratioan
alysis
8.28.c
describere
lationshipsamongratiosand
evaluatea
companyusingratioanalysis
Fin
ancial
Re
porting
8.28.d
dem
onstratetheapplicationofDuPont
analysisofreturnonequity,and
calc
ulateandinterpreteffectsof
changesinitscomponents
8.28.d
demonstra
tetheapplicationofDuPont
analysisof
returnonequity,and
calculateandinterpreteffectsof
changesin
itscomponents
Fin
ancial
Re
porting
8.28.e
calc
ulateandinterpretratiosused
in
equityanalysisandcreditanalysis
8.28.e
calculatea
ndinterpretratiosusedin
equityanalysisandcreditanalysis
Fin
ancial
Re
porting
8.28.f
explaintherequirementsforsegm
ent
reporting,andcalculateandinterp
ret
segmentratios
8.28.f
explainthe
requirementsforsegment
reporting,andcalculateandinterpret
segmentra
tios
Fin
ancial
Re
porting
8.28.g
describehowratioanalysisandother
tech
niquescanbeusedtomodela
nd
fore
castearnings
8.28.g
describehowratioanalysisandother
techniques
canbeusedtomodeland
forecastea
rnings
-
7/26/2019 CFA 2015V2016
21/43
Fin
ancial
Re
porting
9.29.a
distinguishbetweencostsincluded
in
inve
ntoriesandcostsrecogniseda
s
expensesintheperiodinwhichth
ey
are
incurred
9.29.a
distinguish
betweencostsincludedin
inventories
andcostsrecognisedas
expensesintheperiodinwhichtheyare
incurred
Fin
ancial
Re
porting
9.29.b
describedifferentinventoryvaluat
ion
met
hods(costformulas)
9.29.b
describedifferentinventoryvaluation
methods(costformulas)
Fin
ancial
Re
porting
9.29.c
calc
ulatecostofsalesandending
inve
ntoryusingdifferentinventory
valu
ationmethodsandexplainthe
effe
ctoftheinventoryvaluation
met
hodchoiceongrossprofit
Removed
Fin
ancial
Re
porting
9.29.d
calc
ulateandcomparecostofsale
s,
grossprofit,andendinginventory
using
perpetualandperiodicinventory
syst
ems
9.29.c
calculatea
ndcomparecostofsales,
grossprofit,andendinginventoryusing
differentin
ventoryvaluationmethods
andusingperpetualandperiodic
inventorys
ystems
Combined
Fin
ancial
Re
porting
9.29.e
com
parecostofsales,ending
inve
ntory,andgrossprofitusing
diffe
rentinventoryvaluationmethods
Combined
Fin
ancial
Re
porting
9.29.d
calculatea
ndexplainhowinflationand
deflationofinventorycostsaffectthe
financialst
atementsandratiosof
companies
thatusedifferentinventory
valuationm
ethods
New
Fin
ancial
Re
porting
9.29.e
explainLIF
OreserveandLIFO
liquidation
andtheireffectsonfinancial
statements
andratios
New
Fin
ancial
Re
porting
9.29.f
convertac
ompanysreportedfinancial
statements
fromL
IFOtoFIFOfor
purposeso
fcomparison
New
Fin
ancial
Re
porting
9.29.f
describethemeasurementofinventory
atthelowerofcostandnetrealisa
ble
valu
e
9.29.g
describeth
emeasurementofinventory
atthelowe
rofcostandnetrealisable
value
Fin
ancial
Re
porting
9.29.h
describeim
plicationsofvaluing
inventorya
tnetrealisablevaluefor
financialst
atementsandratios
New
Fin
ancial
Re
porting
9.29.g
describethefinancialstatement
pres
entationofanddisclosuresrelating
toin
ventories
9.29.i
describeth
efinancialstatement
presentatio
nofanddisclosuresrelating
toinventor
ies
Fin
ancial
Re
porting
9.29.j
explainissuesthatanalystsshould
considerw
henexaminingacompanys
inventoryd
isclosuresandothersources
ofinformation
New
-
7/26/2019 CFA 2015V2016
22/43
Fin
ancial
Re
porting
9.29.h
calc
ulateandinterpretratiosused
to
evaluateinventorymanagement
9.29.k
calculatea
ndcompareratiosof
companies,includingcompaniesthat
usedifferentinventorymethods
Wording
Change
Fin
ancial
Re
porting
9.29.l
analyzean
dcomparethefinancial
statements
ofcompanies,including
companies
thatusedifferentinventory
methods
New
Fin
ancial
Re
porting
9.30.a
distinguishbetweencoststhatare
capitalizedandcoststhatareexpe
nsed
intheperiodinwhichtheyareincurred
9.30.a
distinguish
betweencoststhatare
capitalised
andcoststhatareexpensed
intheperiodinwhichtheyareincurred
sp
Fin
ancial
Re
porting
9.30.b
com
parethefinancialreportingof
the
follo
wingtypesofintangibleassets:
purchased,internallydeveloped,
acquiredinabusinesscombination
9.30.b
compareth
efinancialreportingofthe
followingtypesofintangibleassets:
purchased,internallydeveloped,
acquiredin
abusinesscombination
Fin
ancial
Re
porting
9.30.c
explainandevaluatehowcapitalising
versusexp
ensingcostsintheperiodin
whichthey
areincurredaffectsfinancial
statements
andratios
Fin
ancial
Re
porting
9.30.c
describethedifferentdepreciation
met
hodsforproperty,plant,and
equipment,theeffectofthechoiceof
depreciationmethodonthefinanc
ial
stat
ements,andtheeffectsof
assu
mptionsconcerningusefullife
and
residualvalueondepreciationexp
ense
9.30.d
describeth
edifferentdepreciation
methodsfo
rproperty,plant,and
equipment
andcalculatedepreciation
expense
Separation
Fin
ancial
Re
porting
9.30.d
calc
ulatedepreciationexpense
9.30.e
describehowthechoiceofdepreciation
methodan
dassumptionsconcerning
usefullifeandresidualvalueaffect
depreciatio
nexpense,financial
statements
,andratios
Separation
Fin
ancial
Re
porting
9.30.e
describethedifferentamortization
met
hodsforintangibleassetswith
finit
elives,theeffectofthechoice
of
amo
rtizationmethodonthefinanc
ial
stat
ements,andtheeffectsof
assu
mptionsconcerningusefullife
and
residualvalueonamortizationexp
ense
9.30.f
describeth
edifferentamortisation
methodsfo
rintangibleassetswithfinite
livesandcalculateamortisationexpense
Separation
Fin
ancial
Re
porting
9.30.g
describehowthechoiceofamortisation
methodan
dassumptionsconcerning
usefullifeandresidualvalueaffect
amortisatio
nexpense,financial
statements
,andratios
Separation
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Fin
ancial
Re
porting
9.30.f
calc
ulateamortizationexpense
Removed
Fin
ancial
Re
porting
9.30.g
describetherevaluationmodel
9.30.h
describeth
erevaluationmodel
Fin
ancial
Re
porting
9.30.h
explaintheimpairmentofproperty,
plan
t,andequipmentandintangib
le
asse
ts
9.30.i
explainthe
impairmentofproperty,
plant,and
equipmentandintangible
assets
Fin
ancial
Re
porting
9.30.i
explainthederecognitionofprope
rty,
plan
t,andequipmentandintangib
le
asse
ts
9.30.j
explainthe
derecognitionofproperty,
plant,and
equipmentandintangible
assets
Fin
ancial
Re
porting
9.30.k
explainandevaluatehowimpairment,
revaluation
,andderecognitionof
property,p
lant,andequipmentand
intangibleassetsaffectfinancial
statements
andratios
New
Fin
ancial
Re
porting
9.30.j
describethefinancialstatement
pres
entationofanddisclosuresrelating
top
roperty,plant,andequipment
and
inta
ngibleassets
9.30.l
describeth
efinancialstatement
presentatio
nofanddisclosuresrelating
toproperty
,plant,andequipmentand
intangibleassets
Fin
ancial
Re
porting
9.30.m
analyzean
dinterpretfinancial
statement
disclosuresregarding
property,p
lant,andequipmentand
intangibleassets
New
Fin
ancial
Re
porting
9.30.k
com
parethefinancialreportingof
inve
stmentpropertywiththatof
prop
erty,plant,andequipment
9.30.n
compareth
efinancialreportingof
investmentpropertywiththatof
property,p
lant,andequipment
Fin
ancial
Re
porting
9.30.o
explainandevaluatehowleasingrather
thanpurch
asingassetsaffectsfinancial
statements
andratios
New
Fin
ancial
Re
porting
9.30.p
explainandevaluatehowfinanceleases
andoperat
ingleasesaffectfinancial
statements
andratiosfromt
he
perspectiveofboththelessorandthe
lessee
New
Fin
ancial
Re
porting
9.31.a
describethedifferencesbetween
acco
untingprofitandtaxableincome,
and
definekeyterms,including
defe
rredtaxassets,deferredtax
liabilities,valuationallowance,taxes
payable,andincometaxexpense
9.31.a
describeth
edifferencesbetween
accounting
profitandtaxableincome,
anddefine
keyterms,includingdeferred
taxassets,
deferredtaxliabilities,
valuationa
llowance,taxespayable,and
incometax
expense
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24/43
Fin
ancial
Re
porting
9.31.b
explainhowdeferredtaxliabilities
and
asse
tsarecreatedandthefactors
that
dete
rminehowacompanysdeferred
tax
liabilitiesandassetsshouldbe
trea
tedforthepurposesoffinancial
analysis
9.31.b
explainhowdeferredtaxliabilitiesand
assetsare
createdandthefactorsthat
determine
howacompanysdeferred
taxliabilitiesandassetsshouldbe
treatedfor
thepurposesoffinancial
analysis
Fin
ancial
Re
porting
9.31.c
calc
ulatethetaxbaseofacompan
ys
asse
tsandliabilities
9.31.c
calculatethetaxbaseofacompanys
assetsand
liabilities
Fin
ancial
Re
porting
9.31.d
calc
ulateincometaxexpense,inco
me
taxe
spayable,deferredtaxassets
,and
defe
rredtaxliabilities,andcalcula
te
and
interprettheadjustmenttoth
e
financialstatementsrelatedtoa
changeintheincometaxrate
9.31.d
calculatein
cometaxexpense,income
taxespaya
ble,deferredtaxassets,and
deferredta
xliabilities,andcalculateand
interpretth
eadjustmenttothefinancial
statements
relatedtoachangeinthe
incometax
rate
Fin
ancial
Re
porting
9.31.e
evaluatetheimpactoftaxratechanges
ona
companysfinancialstatemen
ts
and
ratios
9.31.e
evaluateth
eimpactoftaxratechanges
onacompanysfinancialstatements
andratios
Fin
ancial
Re
porting
9.31.f
distinguishbetweentemporaryand
perm
anentdifferencesinpre-tax
accountingincomeandtaxableinc
ome
9.31.f
