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FINANCIAL REPORTING AND ANALYSIS
CFA® Program Curriculum 2020 • LEVEL II • VOLUME 2
© CFA Institute. For candidate use only. Not for distribution.
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CONTENTS How to Use the CFA Program Curriculum Background on the CBOK Organization of the Curriculum Features of the Curriculum Designing Your Personal Study Program Feedback
v v vi vi viii ix
Financial Reporting and Analysis Study Session 5
Financial Reporting and Analysis (1)
Reading 13
Intercorporate Investments 7 Introduction 8 Basic Corporate Investment Categories 8 Investments in Financial Assets: IFRS 9 10 Classification and Measurement 10 Reclassification of Investments 12 Investments in Associates and Joint Ventures 13 Equity Method of Accounting: Basic Principles 14 Investment Costs That Exceed the Book Value of the Investee 17 Amortization of Excess Purchase Price 19 Fair Value Option 21 Impairment 21 Transactions with Associates 22 Disclosure 25 Issues for Analysts 25 Business Combinations 26 Acquisition Method 28 Impact of the Acquisition Method on Financial Statements, Post- Acquisition 30 The Consolidation Process 32 Financial Statement Presentation Subsequent to the Business Combination 38 Variable Interest and Special Purpose Entities 41 Additional Issues in Business Combinations That Impair Comparability 44 Summary 45 Practice Problems 47 Solutions 58
Reading 14
Employee Compensation: Post-Employment and Share-Based Introduction Pensions and Other Post-Employment Benefits Types of Post-Employment Benefit Plans Measuring a Defined Benefit Pension Plan’s Obligations
indicates an optional segment
5
63 64 64 65 67
ii
© CFA Institute. For candidate use only. Not for distribution.
Contents
Financial Statement Reporting of Pension Plans and Other Post- Employment Benefits Disclosures of Pension and Other Post-Employment Benefits Share-Based Compensation Stock Grants Stock Options Other Types of Share-Based Compensation Summary Practice Problems Solutions Reading 15
Reading 16
69 80 90 93 94 97 97 99