@the_funtom Thanks budy..!!
CFA level 1 question for 26-Feb 2013
Hindalco purchased a machine worth Rs.50 crs. The useful life of this machine is 5 years and the salvage value is Rs.5 crs. What would be the depreciation reported by the company under Straight line method and double declining balance method in year 2.
Straight Line and Double Declining Balance
a. 9 and 10.8
b. 9 and 12
c. 10 and 12
Hindalco purchased a machine worth Rs.50 crs. The useful life of this machine is 5 years and the salvage value is Rs.5 crs. What would be the depreciation reported by the company under Straight line method and double declining balance method in year 2.
Straight Line and Double Declining Balance
a. 9 and 10.8
b. 9 and 12
c. 10 and 12
@Nirmal_Analyst said:CFA level 1 question for 26-Feb 2013Hindalco purchased a machine worth Rs.50 crs. The useful life of this machine is 5 years and the salvage value is Rs.5 crs. What would be the depreciation reported by the company under Straight line method and double declining balance method in year 2.Straight Line and Double Declining Balancea. 9 and 10.8b. 9 and 12c. 10 and 12
Answer is B
No need to mention the working for Straight Line Method.
Working of Double Declining Method is as follows:
First step is to calculate the Depreciation Percent using straight line method without considering the salvage value. It comes out to be 20%
Next step is to double the above percentage, i.e. it becomes 40%.
Now calculate using the above percentage. For first year it is 20 crs. For second year it is (50-20) * 40%= 12 crs.
No need to mention the working for Straight Line Method.
Working of Double Declining Method is as follows:
First step is to calculate the Depreciation Percent using straight line method without considering the salvage value. It comes out to be 20%
Next step is to double the above percentage, i.e. it becomes 40%.
Now calculate using the above percentage. For first year it is 20 crs. For second year it is (50-20) * 40%= 12 crs.
@Nirmal_Analyst said:CFA Level 1 question for 22-Feb-210322)Given below are particulars of a company. Calculate the diluted EPS• Net Profit Rs.220 million•10 million shares outstanding.• Average share price isRs.300.• Year-end share price is Rs.330.i. 100,000 Convertible Debentures with Face value of 1000 and coupon of 8% p.aii.Conversion Price Rs.250/Shareiii.Tax rate 30%a.Rs.21.15b.Rs.20.625c.Rs.22.04
WHAT IS THE ANSWER TO THIS QUESTION???????????
I have just started referring Schweser notes for level 1.Being from an engineering background , i find that there are lot of financial terms which obstructs my flow.
and It's problematic to refer online every time i am stuck with a terminology leading to very slow progress in the chapters.
Any suggestion how to come out of it ??
and It's problematic to refer online every time i am stuck with a terminology leading to very slow progress in the chapters.
Any suggestion how to come out of it ??
No in Dec 2013..
@rnishant231 then u have enough and more time........i registered for june and i have a mountain to climb......3 months full time will it be enough??????me to frm engg backgrnd
@thomaschandy depends on the way you study..
if you get along well with memorizing few things even if you don't understand concept deeply , three months will do good..
Unlike me who is very poor at memorizing , and rely on understanding concepts(Engineering curse 
).
). @Nirmal_Analyst said:CFA Level 1 question 25-Feb-13Educomp limited bought a patented learning system and recognized Rs.80 crs of intangible assets in relation to this purpose. Educomp shoulda. Ammortize this expense every yearb. Test the impairment of the patent every yearc. Both amortize every year and test for impairment
Ans B: Intangible Asset with infinite life will be tested for impairment every year. Only Intangible assets with finite life will be both amortized and tested for INDICATIONS of impairment
CFA level 1 question for 27-Feb-2013
Which among the below options list the following equity securities closest to the ascending order of risk
1) Unlisted Common shares
2) Preference shares
3) Global depository receipts
4) Putable common shares
5) Putable preference shares
6) Callable preference shares
a) 5, 2, 6,4,3,1
b) 6,2,5,3,4,1
c) 2,5,6,3,1,4
Which among the below options list the following equity securities closest to the ascending order of risk
1) Unlisted Common shares
2) Preference shares
3) Global depository receipts
4) Putable common shares
5) Putable preference shares
6) Callable preference shares
a) 5, 2, 6,4,3,1
b) 6,2,5,3,4,1
c) 2,5,6,3,1,4
@rnishant231 said:I have just started referring Schweser notes for level 1.Being from an engineering background , i find that there are lot of financial terms which obstructs my flow.and It's problematic to refer online every time i am stuck with a terminology leading to very slow progress in the chapters.Any suggestion how to come out of it ??
Hi rnishant, I do not think it makes a difference because you are an engineer. You need to dedicate time to understand the basics of finance and understand the links between financial statement. In my opinion if you can dedicate 3-4 hrs a days, in 15 days time you will be very comfortable. For this time do not concentrate on completing the syllabus but concentrate on understanding the basics
@Nirmal_Analyst said:CFA level 1 question for 27-Feb-2013Which among the below options list the following equity securities closest to the ascending order of risk1) Unlisted Common shares2) Preference shares3) Global depository receipts4) Putable common shares5) Putable preference shares6) Callable preference sharesa) 5, 2, 6,4,3,1b) 6,2,5,3,4,1c) 2,5,6,3,1,4
is it A)?
How is schweser notes for cfa......is coaching needed to clear it or self study will b sufficient......how is the syllabus for L1 and average time taken to finish the material......plz suggest....new entrant...
@thomaschandy How is schweser notes for cfa......is coaching needed to clear it or self study will b sufficient......how is the syllabus for L1 and average time taken to finish the material......plz suggest....new entrant...
What is the exam fee level 1?
Dear Friends,
Off late I am getting lot of friend request in FB from various CFA groups. Thanks for the friend request and I am overwhelmed. However I request you to follow our professional page in below link, rather than sending request in personal page. Thanks and appreciate your cooperation https://www.facebook.com/finshiksha?fref=ts
Off late I am getting lot of friend request in FB from various CFA groups. Thanks for the friend request and I am overwhelmed. However I request you to follow our professional page in below link, rather than sending request in personal page. Thanks and appreciate your cooperation https://www.facebook.com/finshiksha?fref=ts
@Nirmal_Analyst said:CFA level 1 question for 26-Feb 2013Hindalco purchased a machine worth Rs.50 crs. The useful life of this machine is 5 years and the salvage value is Rs.5 crs. What would be the depreciation reported by the company under Straight line method and double declining balance method in year 2.Straight Line and Double Declining Balancea. 9 and 10.8b. 9 and 12c. 10 and 12
Answer: SL = (Cost €“ Salvage value)/ Useful life = (50-5)/5 =9
DDL = For 1st year = Cost *2/useful life = 50*2/5=20
DDL for 2nd year = (cost €“ 1st year DDL) *2/ Useful life = (50-20)*2/5 =12.
Answer is 9 and 12
DDL = For 1st year = Cost *2/useful life = 50*2/5=20
DDL for 2nd year = (cost €“ 1st year DDL) *2/ Useful life = (50-20)*2/5 =12.
Answer is 9 and 12
CFA Level question for 28-Feb-2012
Ezone sold Rs. 50 crores worth of electronics to its retails customers this diwali season under 6 Month EMI scheme under a tie-up with HDFC credit cards wherein HDFC will automatically debit money from the customer's credit card every month and pay to Ezone, which reasonably assures collection of the money. What should be Ezone's Gross Profit for the first month under IFRS and US GAAP w.r.t this sales, if Ezone's reliable estimate of cost of capital is 12% and Cost of Goods sold is Rs.40 crores.
IFRS and US GAAP
a) Rs 10 crs and Rs.10 Crs
b) Rs.8.3 crs and Rs. 10 crs
c) Rs.8.3 crs and Rs.0
Ezone sold Rs. 50 crores worth of electronics to its retails customers this diwali season under 6 Month EMI scheme under a tie-up with HDFC credit cards wherein HDFC will automatically debit money from the customer's credit card every month and pay to Ezone, which reasonably assures collection of the money. What should be Ezone's Gross Profit for the first month under IFRS and US GAAP w.r.t this sales, if Ezone's reliable estimate of cost of capital is 12% and Cost of Goods sold is Rs.40 crores.
IFRS and US GAAP
a) Rs 10 crs and Rs.10 Crs
b) Rs.8.3 crs and Rs. 10 crs
c) Rs.8.3 crs and Rs.0
A ready reckoner on principles for capitalizing intangible assets - under IFRS and US GAAP. This should be useful for CFA Aspirants.
