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2011 LOS vs 2012 LOS

As a retaker, I was interested to see what changed between last years (2011) material and this years (2012) material so I did a comparison of the two LOS summaries. And there are sevenless readings in the new material compared to this previous year. Two of the readings were combined and added to so the grand total of readings is now 64 sections. Unfortunately, most of the readings that they removed were more of the "fluff" readings.

Here's a breakdown of the 2012 material compared to this past years. All the reading numbers are from the 2011 CFAI material:

Ethics - All the same

Quant - All the same

Econ -
Removed Reading 17 - Balance of Payments section. No more interest rate parity and purchasing power parity or the balance of payments section.

FRA - All the same

CorpFin -
In Reading 33 M&A - One LOS was removed about US antitrust legislation.

Equity-
Removed Reading 36 - Markets and Instruments
No more 'why is an ADR different from a closed country fund and ETF?'

Removed Reading 38 - No more life cycle and franchise value model

In Readings 39 and 44 they simply changed an LOS or two - no reading changes.

Alt Inv -
Removed Reading 50 - Investing in Commodities
No more contango vs backwardation

Readings 51 and 52 - Both about Hedge Funds, were combined into one reading and new LOS were added, the only new reading in the material.

Fixed Income -
Removed Reading 54
No more conservative vs speculative vs ponzi

Derivs - All the same

PortMan - All the same


My main reason for comparing was to see how much new reading there would have to be and how different would SchweserNotes be. Being a cheapo, I don't want to fork over the money for new study materials (other than the CFAI) if I don't have to. And looking at the 2012 LOS summary it doesn't look I will be purchasing new stuff and using last years books. Sorry Schweser.

Anyone else have comments on the new material?

well ... there is minor changes in some of the LOS .. for example they changed from discuss to explain

this what have been changed in inventory reading

a. explain and calculate the effect of inflation and deflation of inventory costs on the financial statements and ratios of companies that use different inventory valuation methods (cost formulas or cost flow assumptions);
b. discuss (explain) LIFO reserve and LIFO liquidation and their effects on financial statements and ratios;
c. demonstrate how to adjust (convert) a company’s reported financial statements from LIFO to FIFO for purposes of comparison;
d. discuss (describe) the implications of valuing inventory at net realisable value for financial statements and ratios;
e. analyze and compare the financial statements and ratios of companies, including those that use different inventory valuation methods;
f. discuss (explain) issues that analysts should consider when examining a company’s inventory disclosures and other sources of information

you have to be careful if they added calculate or compute

good luck ...

TOP

Purely from an educational perspective...why would CFAI delete the chapters in economics regarding Balance of payments / parity relations ?!...Thats weird!

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Jordan84 Wrote:
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> well ... there is minor changes in some of the LOS
> .. for example they changed from discuss to
> explain


I did see this quite a bit. But I feel this is too minor of a detail to worry about. If I read and understand a section how can it be possible that I could discuss it but not explain it???

I know you're point if they added compute to an LOS, but didn't catch it in my general overview.

TOP

Have many people used previous versions and PASSED? I'm in the same boat as biffyfries. Although I feel like reading CFAI texts for heavy weighted materials, Schweser for rest.

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I passed Level I with year old Schweser materials.

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I passed l2 with old material

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I have 2010 Schweser notes. Do you guys think I can use that for 2012?

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Thank you for sharing, I wonder where I can download the LOS for CFA level 1. Thank you~

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