So who else is staying home and studying tonight>

prepping for a practice test tomorrow and reviewing my weak spots... (i.e. everything).
starting to get stressed. and only tonight found the one quiet place to study in new york.. woohoo!!


a few questions if anyone would be so kind:

1. for asset retirement obligation: b/c it's increased asset and liab. each year you'd have deprec. expense(decrease asset) and an int. exp (decrease liab through accretion), is this correct?

2. for cap leases. it's asset and liab for lessee, so d/a and d/a are > (i heard it's <)?

3. where are impairments listed on balance sheet?

4. calculating LIFO using FIFO, does anyone know how to calculate the "inflation rate", it wasn't too clear?

and what are other people's specific weak spots, i am interested to know..

sorry for the rant.
thanks
 
2. D/E and D/A (Leverage Ratios) increase because of the increased asset and equity base.

4. the inflation rate is most likely going to be given to you on the test, but usually analysts calculate it using industry stats or the increase in the lifo reserve for another company in the same industry divided by that company's beginning investory level converted to FIFO accounting. (page 178 on schweser book 3)

(change in LIFO reserve/ BI FIFO) = Inflation rate

remember not to use the general inflation rate for this calc but the industry or firm based rate.

The other two questions I forget. Hope this helps.
 
2. D/E and D/A (Leverage Ratios) increase because of the increased asset and equity base. wouldn't this decrease them?

yankees98a, I am in Astoria
but study at work in midtown
 
Just did my first comprehensive review of the material, quick review of SS3, and the first SS in FSA for me and review the ratios, I'm gonna ingrain them in my head.
 
I'm working on GIPS - Corporate governance. Corporate governance is so dry, and not even sure how much of that material will be tested. (I blame Enron!)
 
I hate corporate governance too (a little dry), but the schwesr Qbank questions are very specific and therefore a bit scary, so I have to re-read that section too (along with GIPS and of course a thorough ethics review).
 
I was thinking about dedicated entire day to Ethics; but stuck here at work on sunday!!!!

Schweser question on GIPS are kind of lengthy. I think CFA questions will be more straight to the point.
 
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