Hello All,
I have recently passed CFA III. I would like to ask whether the following experience will qualify me for CFA regular membership.
"I have been teaching courses in finance and accounting at the undergraduate and postgraduate level on full-time basis. The materials that I had taught are listed as follows:
1 perform valuation on fixed income and equity securities using yield to maturity, CAPM and Dividend Growth Model. Fair value can then be compared to market price for investment decisions.
2 use financial instruments such as stock options and future and forward contracts, convertible bonds to hedge investment risk and perform accounting treatments for them.
3 use efficient-market hypothesis to determine what techniques (technical or fundamental analysis) should be used in a given market (weak, semi-strong and strong) for security investments.
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determine the risk of equity security in terms of total risk (standard deviation) and systematic risk (beta) so investors can appreciate diversification effects due to correlation of their investments.
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perform fundamental analysis to evaluate their investment choices.
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determine the optimal capital structure, including WACC and M&M propositions I, II and III, so managers can determine to what extent equity and debt should be used to raise capital and their impacts on WACC and firm value. This is relevant to investment decision because this is how a company raises capital to finance their investment.
7 understand dividend payout policy such as signaling effects to the markets and the impacts of dividends on share price. Thus, investors can determine how dividends payout affects the value of their investment.
8 understand differences between fixed income and equity securities so they can determine which investments are suitable for them given their risk and return requirements.
9 use various techniques for capital budgeting such as NPV and IRR to evaluate the appropriateness of investments.
10 Consolidate group financial statements and related party transactions, so that investors can understand how to interpret the impacts of consolidated financial statements and the disclosure made by companies on their investment decisions.
11 interpret various accounting standards and policies such as revenue, lease, deferred taxes, impairment, intangible asset, PPE provisions, contingencies and inventory so that they can understand the meanings and impacts of various items on financial statements and policies to make their investment decisions.
12 compute present and future value using appropriate discount rate for financial planning.
My concern is that it may be too basic. However, I think 100% or 80% are relevant to investment decision making or even CFA materials (of course not that hard).
Non-teaching experience:
Prepare financial statements and external audits".
Thank you all for your information.