Assume IFRS unless otherwise noted??

CFA Level I
#1

In the CFA monthly newsletter that I just recieved it stated: “For questions relating to financial reporting and analysis, you should assume International Financial Reporting Standards (IFRS) apply unless otherwise noted.” I thought US GAAP was the assumed standard unless otherwise noted. Am I just mistaken or is this something new??

#2

IFRS is definitely more prominent worldwide, so it makes sense that for exam purposes we assume IFRS is correct. I think the motivation behind this statement is the constant convergence of IFRS with US GAAP principles, seemingly eliminating these discrepancies (in time).

#3

dude i was shocked too when i read the email… i thought we needed to focus on US GAAP most questions on Stalla’s readings and passmaster are US GAAP… well they sent the email on time i’m reviewing FSAs in two days tops…

#4

Apparently CFAI is quite piss off with FASB. Intense lobbying from politics and banks have change the accounting standards with respect to FASB - fair value accounting. It may be a sign that they’re not supporting the much manipulated changes in accounting standards recently.

#5

Are you sure IFRS apply? Was it anywhere stated that they change their approach?

#6

Can somebody, please post the exact link for the CFA monthly newsletter, where it states: “For questions relating to financial reporting and analysis, you should assume International Financial Reporting Standards (IFRS) apply unless otherwise noted.”

#7

^ Not sure if its on CFAi website to provide a link but that information is correct. You should have got that in your email registered with CFAi.

#8

Preparation Tip Lastly, some of the concepts in the study sessions may be superseded by updated rulings and/or pronouncements issued after a reading was published. You are expected to be familiar with the overall analytical framework contained in the assigned readings, but you are not responsible for changes that occur after the material was written. For questions relating to financial reporting and analysis, you should assume International Financial Reporting Standards (IFRS) apply unless otherwise noted. The next newsletter will provide test-taking strategies and important exam day information. Until then, best wishes in your preparation. Kind regards, Tom Robinson, PhD, CFA Managing Director, Education Division CFA Institute

#9

Thanks a lot.

#10

does anyone really think that if ifrs and gaap standards differed, cfai wouldnt indiciate in the question which standard is used? i know they want to make the test hard but still i think theyd put it in the question or at least tell us what country the firm is in

#11

In their Mock, they asked about US GAAP more

#12

dats true…lot of q said …assme usgaap unless otherwise noted…

#13

I was surprised as well… for those of you who did not receive the email, here is the link https://www.cfainstitute.org/cfaprog/resources/newsletter/index.html

#14

if any of you have access to schweser online have a look at exam tip blog last post. it reiterates that IFRS is to be assumed now over GAAP.