2020年CFA一级教材V3：财政报告和分析

©CFAInstitute.Forcandidateuseonly.Notfordistribution.

FINANCIAL

REPORTING

ANDANALYSIS

CFA

®

ProgramCurriculum

2020LEVELIVOLUME3

•

•

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HowtoUsetheCFAProgramCurriculum

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xiii

BackgroundontheCBOK

OrganizationoftheCurriculum

FeaturesoftheCurriculum

DesigningYourPersonalStudyProgram

Feedback

FinancialReportingandAnalysis

StudySession6

Reading19

FinancialReportingandAnalysis(1)

3

IntroductiontoFinancialStatementAnalysis

Introduction

5

6

RolesofFinancialReportingandFinancialStatementAnalysis

PrimaryFinancialStatementsandOtherInformationSources

FinancialStatementsandSupplementaryInformation

OtherSourcesofInformation

FinancialStatementAnalysisFramework

ArticulatethePurposeandContextofAnalysis

CollectData

6

13

13

31

32

33

34

35

35

35

36

36

39

42

ProcessData

Analyze/InterprettheProcessedData

DevelopandCommunicateConclusions/Recommendations

Follow-Up

Summary

PracticeProblems

Solutions

Reading20

FinancialReportingStandards

Introduction

TheObjectiveofFinancialReporting

Standard-SettingBodiesandRegulatoryAuthorities

AccountingStandardsBoards

45

46

46

47

48

49

54

54

55

56

58

61

62

63

63

RegulatoryAuthorities

TheInternationalFinancialReportingStandardsFramework

QualitativeCharacteristicsofFinancialReports

ConstraintsonFinancialReports

TheElementsofFinancialStatements

GeneralRequirementsforFinancialStatements

ComparisonofIFRSwithAlternativeReportingSystems

MonitoringDevelopmentsinFinancialReportingStandards

NewProductsorTypesofTransactions

EvolvingStandardsandtheRoleofCFAInstitute

indicatesanoptionalsegment

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ii

Contents

Summary

PracticeProblems

Solutions

64

66

68

StudySession7

Reading21

FinancialReportingandAnalysis(2)

69

UnderstandingIncomeStatements

Introduction

71

72

ComponentsandFormatoftheIncomeStatement

RevenueRecognition

72

78

GeneralPrinciples

79

AccountingStandardsforRevenueRecognition

ExpenseRecognition

80

84

GeneralPrinciples

84

IssuesinExpenseRecognition

ImplicationsforFinancialAnalysis

Non-RecurringItemsandNon-OperatingItems

DiscontinuedOperations

UnusualorInfrequentItems

ChangesinAccountingPolicies

Non-OperatingItems

88

93

93

94

94

96

98

EarningsperShare

99

SimpleversusComplexCapitalStructure

BasicEPS

DilutedEPS

100

101

102

109

109

109

111

113

116

119

124

ChangesinEPS

AnalysisoftheIncomeStatement

Common-SizeAnalysisoftheIncomeStatement

IncomeStatementRatios

ComprehensiveIncome

Summary

PracticeProblems

Solutions

Reading22

UnderstandingBalanceSheets

Introduction

127

128

128

129

131

132

133

133

138

142

143

144

145

148

150

ComponentsandFormatoftheBalanceSheet

BalanceSheetComponents

CurrentandNon-CurrentClassification

Liquidity-BasedPresentation

CurrentAssetsandCurrentLiabilities

CurrentAssets

CurrentLiabilities

Non-CurrentAssets

Property,Plant,andEquipment

InvestmentProperty

IntangibleAssets

Goodwill

FinancialAssets

indicatesanoptionalsegment

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Contents

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DeferredTaxAssets

Non-CurrentLiabilities

Long-termFinancialLiabilities

DeferredTaxLiabilities

Equity

ComponentsofEquity

StatementofChangesinEquity

AnalysisoftheBalanceSheet

Common-SizeAnalysisoftheBalanceSheet

BalanceSheetRatios

Summary

154

154

156

156

157

157

160

161

161

169

171

174

179

PracticeProblems

Solutions

Reading23

UnderstandingCashFlowStatements

Introduction

183

184

185

185

187

ComponentsandFormatoftheCashFlowStatement

ClassificationofCashFlowsandNon-CashActivities

ASummaryofDifferencesbetweenIFRSandUSGAAP

DirectandIndirectMethodsforReportingCashFlowfrom

OperatingActivities

TheCashFlowStatement:LinkagesandPreparation

LinkagesoftheCashFlowStatementwiththeIncomeStatement

andBalanceSheet

188

198

198

199

211

212

212

216

222

223

225

226

232

StepsinPreparingtheCashFlowStatement

ConversionofCashFlowsfromtheIndirecttotheDirectMethod

CashFlowStatementAnalysis

EvaluationoftheSourcesandUsesofCash

Common-SizeAnalysisoftheStatementofCashFlows

FreeCashFlowtotheFirmandFreeCashFlowtoEquity

CashFlowRatios

Summary

PracticeProblems

Solutions

Reading24

FinancialAnalysisTechniques

Introduction

235

236

237

237

238

241

243

248

254

256

256

257

258

264

TheFinancialAnalysisProcess

TheObjectivesoftheFinancialAnalysisProcess

DistinguishingbetweenComputationsandAnalysis

AnalyticalToolsandTechniques

Ratios

Common-SizeAnalysis

TheUseofGraphsasanAnalyticalTool

RegressionAnalysis

CommonRatiosUsedinFinancialAnalysis

InterpretationandContext

ActivityRatios

LiquidityRatios

indicatesanoptionalsegment

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Contents

SolvencyRatios

ProfitabilityRatios

IntegratedFinancialRatioAnalysis

EquityAnalysis

269

273

276

284

284

287

289

290

290

291

292

292

293

296

297

299

305

ValuationRatios

Industry-SpecificRatios

HistoricalResearchonRatiosinEquityAnalysis

CreditAnalysis

TheCreditRatingProcess

HistoricalResearchonRatiosinCreditAnalysis

BusinessandGeographicSegments

SegmentReportingRequirements

SegmentRatios

ModelBuildingandForecasting

Summary

PracticeProblems

Solutions

StudySession8

Reading25

FinancialReportingandAnalysis(3)

309

Inventories

Introduction

CostofInventories

InventoryValuationMethods

SpecificIdentification

First-In,First-Out(FIFO)

WeightedAverageCost

Last-In,First-Out(LIFO)

CalculationofCostofSales,GrossProfit,andEndingInventory

PeriodicversusPerpetualInventorySystems

ComparisonofInventoryValuationMethods

TheLIFOMethod

311

312

313

314

315

315

315

316

316

318

320

323

323

324

331

332

339

339

340

341

350

353

369

LIFOReserve

LIFOLiquidations

InventoryMethodChanges

InventoryAdjustments

EvaluationofInventoryManagement

PresentationandDisclosure

InventoryRatios

FinancialAnalysisIllustrations

Summary

PracticeProblems

Solutions

Reading26

Long-LivedAssets

Introduction

AcquisitionofLong-LivedAssets

Property,Plant,andEquipment

IntangibleAssets

377

378

379

379

382

indicatesanoptionalsegment

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Contents

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CapitalisingversusExpensing:ImpactonFinancialStatementsand

Ratios

386

391

394

398

398

406

407

411

412

414

414

414

414

415

415

416

417

428

432

434

446

CapitalisationofInterestCosts

CapitalisationofInternalDevelopmentCosts

DepreciationandAmortisationofLong-LivedAssets

DepreciationMethodsandCalculationofDepreciationExpense

AmortisationMethodsandCalculationofAmortisationExpense

TheRevaluationModel

ImpairmentofAssets

ImpairmentofProperty,Plant,andEquipment

ImpairmentofIntangibleAssetswithaFiniteLife

ImpairmentofIntangibleswithIndefiniteLives

ImpairmentofLong-LivedAssetsHeldforSale

ReversalsofImpairmentsofLong-LivedAssets

Derecognition

SaleofLong-LivedAssets

Long-LivedAssetsDisposedofOtherThanbyaSale

PresentationandDisclosures

InvestmentProperty

Summary

PracticeProblems

Solutions

Reading27

IncomeTaxes

Introduction

451

452

452

453

454

457

457

459

461

DifferencesbetweenAccountingProfitandTaxableIncome

CurrentTaxAssetsandLiabilities

DeferredTaxAssetsandLiabilities

DeterminingtheTaxBaseofAssetsandLiabilities

DeterminingtheTaxBaseofanAsset

DeterminingtheTaxBaseofaLiability

ChangesinIncomeTaxRates

TemporaryandPermanentDifferencesBetweenTaxableandAccounting

Profit

462

463

463

464

466

466

TaxableTemporaryDifferences

DeductibleTemporaryDifferences

ExamplesofTaxableandDeductibleTemporaryDifferences

TemporaryDifferencesatInitialRecognitionofAssetsandLiabilities

BusinessCombinationsandDeferredTaxes

InvestmentsinSubsidiaries,Branches,AssociatesandInterestsin

JointVentures

467

467

468

469

469

471

477

UnusedTaxLossesandTaxCredits

RecognitionandMeasurementofCurrentandDeferredTax

RecognitionofaValuationAllowance

RecognitionofCurrentandDeferredTaxChargedDirectlytoEquity

PresentationandDisclosure

ComparisonofIFRSandUSGAAP

indicatesanoptionalsegment

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Contents

Summary

PracticeProblems

Solutions

479

481

486

Reading28

Non-Current(Long-Term)Liabilities

Introduction

BondsPayable

489

490

490

490

AccountingforBondIssuance

AccountingforBondAmortisation,InterestExpense,andInterest

Payments

494

498

502

504

506

509

510

511

513

516

520

523

529

CurrentMarketRatesandFairValueReportingOption

DerecognitionofDebt

DebtCovenants

PresentationandDisclosureofLong-TermDebt

Leases

Lesseeaccounting

Lessoraccounting

IntroductiontoPensionsandOtherPost-EmploymentBenefits

EvaluatingSolvency:LeverageandCoverageRatios

Summary

PracticeProblems

Solutions

StudySession9

Reading29

FinancialReportingandAnalysis(4)

537

FinancialReportingQuality

Introduction

ConceptualOverview

539

540

540

542

542

543

552

554

557

557

558

559

566

567

573

591

596

599

603

GAAP,Decision-Useful,Sustainable,andAdequateReturns

GAAP,Decision-Useful,butSustainable?

BiasedAccountingChoices

DeparturesfromGAAP

DifferentiatebetweenConservativeandAggressiveAccounting

ContextforAssessingFinancialReportingQuality

Motivations

ConditionsConducivetoIssuingLow-QualityFinancialReports

MechanismsThatDisciplineFinancialReportingQuality

DetectionofFinancialReportingQualityIssues

PresentationChoices

AccountingChoicesandEstimates

WarningSigns

Summary

PracticeProblems

Solutions

indicatesanoptionalsegment

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Contents

vii

Reading30

ApplicationsofFinancialStatementAnalysis

Introduction

607

608

609

612

613

618

622

624

627

627

628

628

632

634

636

638

640

Application:EvaluatingPastFinancialPerformance

Application:ProjectingFutureFinancialPerformance

ProjectingPerformance:AnInputtoMarket-BasedValuation

ProjectingMultiple-PeriodPerformance

Application:AssessingCreditRisk

Application:ScreeningforPotentialEquityInvestments

AnalystAdjustmentstoReportedFinancials

AFrameworkforAnalystAdjustments

AnalystAdjustmentsRelatedtoInvestments

AnalystAdjustmentsRelatedtoInventory

AnalystAdjustmentsRelatedtoProperty,Plant,andEquipment

AnalystAdjustmentsRelatedtoGoodwill

Summary

PracticeProblems

Solutions

Glossary

G-1

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ix

HowtoUsetheCFA

ProgramCurriculum

C

ongratulationsonyourdecisiontoentertheCharteredFinancialAnalyst(CFA®)

Program.isexcitingandrewardingprogramofstudyreflectsyourdesiretobecome

aseriousinvestmentprofessional.Youareembarkingonaprogramnotedforitshigh

ethicalstandardsandthebreadthofknowledge,skills,andabilities(competencies)

itdevelops.YourcommitmenttotheCFAProgramshouldbeeducationallyand

professionallyrewarding.

ecredentialyouseekisrespectedaroundtheworldasamarkofaccomplish-

mentanddedication.Eachleveloftheprogramrepresentsadistinctachievementin

professionaldevelopment.Successfulcompletionoftheprogramisrewardedwith

membershipinaprestigiousglobalcommunityofinvestmentprofessionals.CFA

charterholdersarededicatedtolife-longlearningandmaintainingcurrencywiththe

ever-changingdynamicsofachallengingprofession.eCFAProgramrepresentsthe

firststeptowardacareer-longcommitmenttoprofessionaleducation.

eCFAexaminationmeasuresyourmasteryofthecoreknowledge,skills,and

abilitiesrequiredtosucceedasaninvestmentprofessional.esecorecompetencies

arethebasisfortheCandidateBodyofKnowledge(CBOK™).eCBOKconsistsof

fourcomponents:

AbroadoutlinethatliststhemajortopicareascoveredintheCFAProgram

(/programs/cfa/curriculum/cbok);

■■

Topicareaweightsthatindicatetherelativeexamweightingsofthetop-level

topicareas(/programs/cfa/curriculum/overview);

■■

Learningoutcomestatements(LOS)thatadvisecandidatesaboutthespecific

■■

knowledge,skills,andabilitiestheyshouldacquirefromreadingscoveringa

topicarea(LOSareprovidedincandidatestudysessionsandatthebeginning

ofeachreading);and

eCFAProgramcurriculumthatcandidatesreceiveuponexamination

registration.

■■

erefore,thekeytoyoursuccessontheCFAexaminationsisstudyingandunder-

standingtheCBOK.efollowingsectionsprovidebackgroundontheCBOK,the

organizationofthecurriculum,featuresofthecurriculum,andtipsfordesigningan

effectivepersonalstudyprogram.

BACKGROUNDONTHECBOK

eCFAProgramisgroundedinthepracticeoftheinvestmentprofession.Beginning

withtheGlobalBodyofInvestmentKnowledge(GBIK),CFAInstituteperformsa

continuouspracticeanalysiswithinvestmentprofessionalsaroundtheworldtodeter-

minethecompetenciesthatarerelevanttotheprofession.Regionalexpertpanelsand

targetedsurveysareconductedannuallytoverifyandreinforcethecontinuousfeed-

backabouttheGBIK.epracticeanalysisprocessultimatelydefinestheCBOK.e

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HowtoUsetheCFAProgramCurriculum

x

CBOKreflectsthecompetenciesthataregenerallyacceptedandappliedbyinvestment

professionals.esecompetenciesareusedinpracticeinageneralistcontextandare

expectedtobedemonstratedbyarecentlyqualifiedCFAcharterholder.

eCFAInstitutestaff,inconjunctionwiththeEducationAdvisoryCommittee

andCurriculumLevelAdvisors,whoconsistofpracticingCFAcharterholders,

designstheCFAProgramcurriculuminordertodelivertheCBOKtocandidates.

eexaminations,alsowrittenbyCFAcharterholders,aredesignedtoallowyouto

demonstrateyourmasteryoftheCBOKassetforthintheCFAProgramcurriculum.

Asyoustructureyourpersonalstudyprogram,youshouldemphasizemasteryofthe

CBOKandthepracticalapplicationofthatknowledge.Formoreinformationonthe

practiceanalysis,CBOK,anddevelopmentoftheCFAProgramcurriculum,please

visit.

ORGANIZATIONOFTHECURRICULUM

eLevelICFAProgramcurriculumisorganizedinto10topicareas.Eachtopicarea

beginswithabriefstatementofthematerialandthedepthofknowledgeexpected.It

isthendividedintooneormorestudysessions.esestudysessions—19sessionsin

theLevelIcurriculum—shouldformthebasicstructureofyourreadingandprepa-

ration.Eachstudysessionincludesastatementofitsstructureandobjectiveandis

furtherdividedintoassignedreadings.Anoutlineillustratingtheorganizationof

these19studysessionscanbefoundatthefrontofeachvolumeofthecurriculum.

ereadingsarecommissionedbyCFAInstituteandwrittenbycontentexperts,

includinginvestmentprofessionalsanduniversityprofessors.Eachreadingincludes

LOSandthecorematerialtobestudied,oftenacombinationoftext,exhibits,and

in-textexamplesandquestions.Areadingtypicallyendswithpracticeproblemsfol-

lowedbysolutionstotheseproblemstohelpyouunderstandandmasterthematerial.

eLOSindicatewhatyoushouldbeabletoaccomplishafterstudyingthematerial.

eLOS,thecorematerial,andthepracticeproblemsaredependentoneachother,

withthecorematerialandthepracticeproblemsprovidingcontextforunderstanding

thescopeoftheLOSandenablingyoutoapplyaprincipleorconceptinavariety

ofscenarios.

eentirereadings,includingthepracticeproblemsattheendofthereadings,are

thebasisforallexaminationquestionsandareselectedordevelopedspecificallyto

teachtheknowledge,skills,andabilitiesreflectedintheCBOK.

YoushouldusetheLOStoguideandfocusyourstudybecauseeachexamination

questionisbasedononeormoreLOSandthecorematerialandpracticeproblems

associatedwiththeLOS.Asacandidate,youareresponsiblefortheentiretyofthe

requiredmaterialinastudysession.

WeencourageyoutoreviewtheinformationabouttheLOSonourwebsite(www.

/programs/cfa/curriculum/study-sessions),includingthedescriptions

ofLOS“commandwords”onthecandidateresourcespageat.

FEATURESOFTHECURRICULUM

OPTIONAL

SEGMENT

Requiredvs.OptionalSegmentsYoushouldreadallofanassignedreading.Insome

cases,though,wehavereprintedanentirepublicationandmarkedcertainpartsofthe

readingas“optional.”eCFAexaminationisbasedonlyontherequiredsegments,

andtheoptionalsegmentsareincludedonlywhenitisdeterminedthattheymight

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HowtoUsetheCFAProgramCurriculum

xi

helpyoutobetterunderstandtherequiredsegments(byseeingtherequiredmaterial

initsfullcontext).Whenanoptionalsegmentbegins,youwillseeaniconandadashed

verticalbarintheoutsidemarginthatwillcontinueuntiltheoptionalsegmentends,

accompaniedbyanothericon.Unlessthematerialisspecificallymarkedasoptional,

youshouldassumeitisrequired.Youshouldrelyontherequiredsegmentsandthe

reading-specificLOSinpreparingfortheexamination.

ENDOPTIONAL

SEGMENT

PracticeProblems/SolutionsAllpracticeproblemsattheendofthereadingsaswellas

theirsolutionsarepartofthecurriculumandarerequiredmaterialfortheexamination.

Inadditiontothein-textexamplesandquestions,thesepracticeproblemsshouldhelp

demonstratepracticalapplicationsandreinforceyourunderstandingoftheconcepts

presented.SomeofthesepracticeproblemsareadaptedfrompastCFAexaminations

and/ormayserveasabasisforexaminationquestions.

GlossaryForyourconvenience,eachvolumeincludesacomprehensiveglossary.

roughoutthecurriculum,aboldedwordinareadingdenotesatermdefinedin

theglossary.

Notethatthedigitalcurriculumthatisincludedinyourexaminationregistration

feeissearchableforkeywords,includingglossaryterms.

LOSSelf-CheckWehaveinsertedcheckboxesnexttoeachLOSthatyoucanuseto

trackyourprogressinmasteringtheconceptsineachreading.

SourceMaterialeCFAInstitutecurriculumcitestextbooks,journalarticles,and

otherpublicationsthatprovideadditionalcontextorinformationabouttopicscovered

inthereadings.Asacandidate,youarenotresponsibleforfamiliaritywiththeoriginal

sourcematerialscitedinthecurriculum.

NotethatsomereadingsmaycontainawebaddressorURL.ereferencedsites

wereliveatthetimethereadingwaswrittenorupdatedbutmayhavebeendeacti-

vatedsincethen.

SomereadingsinthecurriculumcitearticlespublishedintheFinancialAnalystsJournal®,

whichistheflagshippublicationofCFAInstitute.Sinceitslaunchin1945,theFinancial

AnalystsJournalhasestablisheditselfastheleadingpractitioner-orientedjournalinthe

investmentmanagementcommunity.Overtheyears,ithasadvancedtheknowledgeand

understandingofthepracticeofinvestmentmanagementthroughthepublicationof

peer-reviewedpractitioner-relevantresearchfromleadingacademicsandpractitioners.

Ithasalsofeaturedthought-provokingopinionpiecesthatadvancethecommonlevelof

discoursewithintheinvestmentmanagementprofession.Someofthemostinfluential

researchintheareaofinvestmentmanagementhasappearedinthepagesoftheFinancial

AnalystsJournal,andseveralNobellaureateshavecontributedarticles.

CandidatesarenotresponsibleforfamiliaritywithFinancialAnalystsJournalarticles

thatarecitedinthecurriculum.But,asyourtimeandstudiesallow,westronglyencour-

ageyoutobeginsupplementingyourunderstandingofkeyinvestmentmanagement

issuesbyreadingthispractice-orientedpublication.Candidateshavefullonlineaccess

totheFinancialAnalystsJournalandassociatedresources.Allyouneedistologinon

usingyourcandidatecredentials.

Errataecurriculumdevelopmentprocessisrigorousandincludesmultiplerounds

ofreviewsbycontentexperts.Despiteoureffortstoproduceacurriculumthatisfree

oferrors,therearetimeswhenwemustmakecorrections.Curriculumerrataareperi-

odicallyupdatedandpostedonthecandidateresourcespageat.

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HowtoUsetheCFAProgramCurriculum

xii

DESIGNINGYOURPERSONALSTUDYPROGRAM

CreateaScheduleAnorderly,systematicapproachtoexaminationpreparationis

critical.Youshoulddedicateaconsistentblockoftimeeveryweektoreadingand

studying.Completeallassignedreadingsandtheassociatedproblemsandsolutions

ineachstudysession.ReviewtheLOSbothbeforeandafteryoustudyeachreading

toensurethatyouhavemasteredtheapplicablecontentandcandemonstratethe

knowledge,skills,andabilitiesdescribedbytheLOSandtheassignedreading.Usethe

LOSself-checktotrackyourprogressandhighlightareasofweaknessforlaterreview.

Successfulcandidatesreportanaverageofmorethan300hourspreparingfor

eachexamination.Yourpreparationtimewillvarybasedonyourprioreducationand

experience,andyouwillprobablyspendmoretimeonsomestudysessionsthanon

others.AstheLevelIcurriculumincludes19studysessions,agoodplanistodevote

15−20hoursperweekfor19weekstostudyingthematerialandusethefinalfourto

sixweeksbeforetheexaminationtoreviewwhatyouhavelearnedandpracticewith

practicequestionsandmockexaminations.isrecommendation,however,may

underestimatethehoursneededforappropriateexaminationpreparationdepending

onyourindividualcircumstances,relevantexperience,andacademicbackground.

Youwillundoubtedlyadjustyourstudytimetoconformtoyourownstrengthsand

weaknessesandtoyoureducationalandprofessionalbackground.

Youshouldallowampletimeforbothin-depthstudyofalltopicareasandaddi-

tionalconcentrationonthosetopicareasforwhichyoufeeltheleastprepared.

Aspartofthesupplementalstudytoolsthatareincludedinyourexamination

registrationfee,youhaveaccesstoastudyplannertohelpyouplanyourstudytime.

estudyplannercalculatesyourstudyprogressandpacebasedonthetimeremaining

untilexamination.Formoreinformationonthestudyplannerandothersupplemental

studytools,pleasevisit.

Asyouprepareforyourexamination,wewille-mailyouimportantexamination

updates,testingpolicies,andstudytips.Besuretoreadthesecarefully.

CFAInstitutePracticeQuestionsYourexaminationregistrationfeeincludesdigital

accesstohundredsofpracticequestionsthatareadditionaltothepracticeproblems

attheendofthereadings.esepracticequestionsareintendedtohelpyouassess

yourmasteryofindividualtopicareasasyouprogressthroughyourstudies.Aftereach

practicequestion,youwillbeabletoreceiveimmediatefeedbacknotingthecorrect

responsesandindicatingtherelevantassignedreadingsoyoucanidentifyareasof

weaknessforfurtherstudy.Formoreinformationonthepracticequestions,please

visit.

CFAInstituteMockExaminationsYourexaminationregistrationfeealsoincludes

digitalaccesstothree-hourmockexaminationsthatsimulatethemorningandafter-

noonsessionsoftheactualCFAexamination.esemockexaminationsareintended

tobetakenafteryoucompleteyourstudyofthefullcurriculumandtakepractice

questionssoyoucantestyourunderstandingofthecurriculumandyourreadiness

fortheexamination.Youwillreceivefeedbackattheendofthemockexamination,

notingthecorrectresponsesandindicatingtherelevantassignedreadingssoyoucan

assessareasofweaknessforfurtherstudyduringyourreviewperiod.Werecommend

thatyoutakemockexaminationsduringthefinalstagesofyourpreparationforthe

actualCFAexamination.Formoreinformationonthemockexaminations,pleasevisit

.

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HowtoUsetheCFAProgramCurriculum

xiii

PreparatoryProvidersAfteryouenrollintheCFAProgram,youmayreceivenumer-

oussolicitationsforpreparatorycoursesandreviewmaterials.Whenconsideringa

preparatorycourse,makesuretheproviderbelongstotheCFAInstituteApprovedPrep

ProviderProgram.ApprovedPrepProvidershavecommittedtofollowCFAInstitute

guidelinesandhighstandardsintheirofferingsandcommunicationswithcandidates.

FormoreinformationontheApprovedPrepProviders,pleasevisitwww.cfainstitute.

org/programs/cfa/exam/prep-providers.

Remember,however,thattherearenoshortcutstosuccessontheCFAexamina-

tions;readingandstudyingtheCFAcurriculumisthekeytosuccessontheexamina-

tion.eCFAexaminationsreferenceonlytheCFAInstituteassignedcurriculum—no

preparatorycourseorreviewcoursematerialsareconsultedorreferenced.

SUMMARY

EveryquestionontheCFAexaminationis