mock # 58 pm

CFA Level II
#1

i think this was already discussed, but can’t seem to find the post for it. why aren’t 1-marketable securities classified as AFS 2-foreign currency translation adjustments from the consolidation of any self sustaining subs. companies (where the lcl currency is the functional currency) violations of the clean surplus relationship? I thought anything that by passes the income statement is considered a violation, so wouldnt these be a violation. Please help! thanks

#2

Question says - least likely to violate - Did you miss that?

#3

oh crap. you got me there. i’ve been soo crunched on time that i didn’t read carefully. it says least likely to result in a clean surplus VIOLATION. I missed the violation part. for some reason i read it as …clean surplus relationship. pheww…i have to slow down.

#4

thanks!