shootingstar

sundusg_ Wrote:
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> Dont know about everyone else, but I do relate it
> to accounting most of the time, maybe because when
> I did A/O-Level, this is what we called
> accounting, including the ratio analysis.
>
> With respect to the CFA material, most of the FSA
> stuff is related to accounting treatment of leases
> or assets/liabilities or taxes or whatever. Of
> course, you are looking at it from the perspective
> of an analyst, and the material is not really
> accounting per se

I think the accounting treatment for operating/capital leases is important to understand the true liabilities of a company and thats more important to a financial analyst not an accountant

We need to know the difference because it affects the way one values a company. Accounting would be more like if I enter into a operating leases what do I debit and what do I credit. The CFA doesn't worry about that.