Tuesday, March 22, 2011

CFA Level II Foreign Currency Translation

As usual the accounting portion of the CFA is taking me the longest to learn. In fact it currently accounts for 38% of the hours I've studied so far and I'm still having trouble consistently scoring over 70% on Stalla's tests.

In an effort to hammer some of the concepts home I've decided to mind map some of the decision rules, so here is the Foreign Currency Translation section in 3 slides.

Choosing the right method

Differentiating between Current and Temporal
 How to balance (what to plug)

Guide to my shorthand.
BS = Balance Sheet
IS = Income Statement
DNE = Does Not Exist
NI = Net Income
REb = Retained Earnings Beginning
Div = Dividend
Dep = Depreciation
MV = Market Value
G/L = Gain or Loss
Inf = Inflation
CHG = Change in


  1. This is a very useful reference. Can I refer to this in the website Mister Exam? at http://www.misterexam.com ?

    Much thanks!

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