Академический Документы
Профессиональный Документы
Культура Документы
2015
Level 1
August 2014
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Summary of Changes
The Readings for Ethical and Professional Standards has been updated to the new 11th Edition
of the Standards of Practice Handbook
In addition, 3 new Readings have been added; 1 each in Financial Reporting & Analysis, Fixed
Income and Derivatives
6 Readings have been removed; 2 in Financial Reporting & Analysis and 4 in Derivatives
In total 38 new LOS have been added, while 6 have been amended, and 39 have been removed
10 out of the 18 Study Sessions have been effected by changing LOS
There is also a small adjustment in exam weighting guidelines affecting 4 subjects
Subject
Study
Sessions
Exam Weighting
2014
Exam Weighting
2015
Net Change
15%
15%
2,3
12%
12%
4,5,6
10%
10%
7,8,9,10
20%
20%
Corporate Finance
11
8%
7%
-1%
Portfolio Management
12
5%
7%
+2%
Equity
13,14
10%
10%
Fixed Income
15,16
12%
10%
-2%
Derivatives
17
5%
5%
Alternative Investments
18
3%
4%
+1%
Quantitative Methods
Economics
Financial Reporting and
Analysis
The Code of Ethics now includes language that aligns with the mission of CFA Institute and
reflects an investment professional's responsibility to protect the integrity of capital markets for
the betterment of society.
Standard IV(C): Responsibilities of Supervisors now focuses on the need for supervisors to take
positive steps to promote compliance rather than just preventing violations.
Standard V(B): Communication with Clients and Prospective Clients now includes a requirement
to address risks and limitations as part of the investment process.
Standard VII(A) now reflects the growth in educational programs of CFA Institute by
encompassing additional programs beyond the CFA examination.
The Handbook chapter Ethics and the Investment Industry expands the discussion on the
importance of ethical conduct within the industry. The integrity of capital markets and its
participants is vital to maintaining levels of efficiencies and trust that ultimately benefit society.
Throughout the Handbook, guidance enhancements and new examples were added to cover a
variety of current practices occurring within the investment industry such as social media usage
and reliance upon quantitative models and processes.
http://www.cfainstitute.org/ethics/codes/ethics/pages/periodic_review.aspx
5 | www.apptuto.com Apptuto 2014
2014 Syllabus
Explain Monte Carlo simulation and
describe its major applications and
limitations
2015 Syllabus
Explain Monte Carlo simulation and
describe its applications and
limitations
Comment: By removing the word major could imply the Candidate needs to have a deeper knowledge of
Monte Carlo simulations applications.
LOS
Change type
2014 Syllabus
j.
New
5.2.2
2015 Syllabus
distinguish between the following
types of macroeconomic equilibria:
long-run full employment, short-run
recessionary gap, short-run
inflationary gap, and short-run
stagflation;
LOS
Change type
2014 Syllabus
i.
New
2015 Syllabus
describe the monetary transmission
mechanism
LOS
Change type
2014 Syllabus
g.
New
2015 Syllabus
describe common objectives of
capital restrictions imposed by
governments
LOS
Change type
g.
Removed
2014 Syllabus
Analyze balance sheets and statements
of changes in equity
2015 Syllabus
-
2014 Syllabus
2015 Syllabus
2014 Reading 33 Financial Reporting Quality: Red Flags and Accounting Warning Signs
2014 Reading 34 Accounting Shenanigans on the Cash Flow Statement
LOS
Change
Type
2014
Syllabus
2015 Syllabus
a.
New
b.
New
c.
New
d.
New
e.
New
f.
New
g.
New
h.
New
i.
New
10.2.2
2014 Reading 33: Financial Reporting Quality: Red Flags and Accounting Warning Signs
LOS
Change
Type
2014 Syllabus
2015
Syllabus
a.
Removed
b.
Removed
c.
Removed
d.
Removed
10.2.3
LOS
Change type
a.
Removed
b.
Removed
2014 Syllabus
describe reasons for investors to assess the quality of cash flow
statements
analyze and describe the following ways to manage or
manipulate the cash flow statement: stretching out payables,
financing of payables, securitization of receivables, issuing stock
options, and using stock buybacks.
2015
Syllabus
-
a.
Partial
Change:
Removal
b.
Partial
Change:
Removal
d.
Partial
Change:
Removal
11.2.2
2015 Syllabus
describe the capital budgeting
process and distinguish among the
various categories of capital projects;
describe the basic principles of
capital budgeting
calculate and interpret net present
value (NPV), internal rate of return
(IRR), payback period, discounted
payback period, and profitability index
(PI) of a single capital project;
LOS
Change type
c.
Removed
c.
2014 Syllabus
describe the capital budgeting process,
including the typical steps of the process, and distinguish among the various
categories of capital projects;
describe the basic principles of capital
budgeting, including cash flow
estimation;
calculate and interpret the results using
each of the following methods to
evaluate a single capital project: net
present value (NPV), internal rate of
return (IRR), payback period, discounted
payback period, and profitability index
(PI);
2014 Syllabus
Explain alternative methods of
calculating the weights used in the
WACC, including the use of the
companys target capital structure
New
2015 Syllabus
Describe the use of target capital
structure in estimating WACC and
how target capital structure weights
may be determined
11.2.3
LOS
Change type
a.
Partial
Change:
Removal
11.2.4
LOS
a.
2014 Syllabus
define and explain leverage, business
risk, sales risk, operating risk, and financial risk, and classify a risk, given a
description;
2015 Syllabus
define and explain leverage, business
risk, sales risk, operating risk, and
financial risk, and classify a risk;
Partial
Change: New
2014 Syllabus
2015 Syllabus
Describe regular cash dividends,
extra dividends, liquidating
dividends, stock dividends, stock
splits, and reverse stock splits,
including their expected effect on
shareholders wealth and a
companys financial ratios;
Study
Sessions
Exam Weighting
2014
Exam
Weighting
2015
Net Change
11
8%
7%
-1%
Study
Sessions
Exam Weighting
2014
Exam Weighting
2015
Net Change
12
5%
7%
+2%
Portfolio Management
LOS
Change
Type
2014
Syllabus
a.
New
b.
New
c.
New
d.
New
e.
New
f.
New
g.
New
h.
New
2015 Syllabus
explain benefits of securitization for economies and financial
markets;
describe the securitization process, including the parties to the
process, the roles they play, and the legal structures involved;
describe types and characteristics of residential mortgage loans
that are typically securitized;
describe types and characteristics of residential mortgage-backed
securities, and explain the cash flows and credit risk for each type;
explain the motivation for creating securitized structures with
multiple tranches (e.g., collateralized mortgage obligations), and
the characteristics and risks of securitized structures;
describe the characteristics and risks of commercial mortgagebacked securities;
describe types and characteristics of non-mortgage asset-backed
securities, including the cash flows and credit risk of each type;
describe collateralized debt obligations, including their cash flows
and credit risk.;
Study
Sessions
Exam Weighting
2014
Exam Weighting
2015
Net Change
15,16
12%
10%
-2%
Fixed Income
LOS
Change type
2014
Syllabus
2015 Syllabus
d.
New
Define key rate duration and describe the key use of key rate
durations in measuring the sensitivity of bonds to changes in the
shape of the benchmark yield
Subject
Study
Sessions
Exam Weighting
2014
Exam Weighting
2015
Net Change
15,16
12%
10%
-2%
Fixed Income
LOS
Change
Type
2014
Syllabus
a.
New
explain how the concepts of arbitrage, replication, and risk neutrality are
used in pricing derivatives;
b.
New
c.
New
d.
New
e.
New
f.
New
g.
New
explain how swap contracts are similar to but different from a series of
forward contracts;
h.
New
i.
New
j.
New
k.
New
identify the factors that determine the value of an option, and explain how
each factor affects the value of an option
2015 Syllabus
explain how the value and price of a forward contract are determined at
expiration, during the life of the contract, and at initiation
describe monetary and nonmonetary benefits and costs associated with
holding the underlying asset, and explain how they affect the value and
price of a forward contract
l.
New
m.
New
n.
New
o.
New
17.2.2
LOS
Change
Type
a.
Removed
explain delivery/settlement and default risk for both long and short
positions in a forward contract
b.
Removed
c.
Removed
d.
Removed
e.
Removed
f.
Removed
g.
Removed
calculate and interpret the payoff of a FRA and explain each of the
component terms of the payoff formula;
h.
Removed
17.2.3
2014 Syllabus
2015
Syllabus
LOS
Change
Type
a.
Removed
b.
Removed
c.
Removed
d.
Removed
e.
Removed
f.
Removed
2014 Syllabus
2015
Syllabus
17.2.4
LOS
Change
Type
a.
Removed
b.
Removed
c.
Removed
d.
Removed
e.
Removed
f.
Removed
g.
Removed
h.
Removed
calculate and interpret option payoffs and explain how interest rate
options differ from other types of options;
i.
Removed
define intrinsic value and time value, and explain their relationship;
j.
Removed
k.
Removed
l.
Removed
m.
Removed
explain putcall parity for European options, and explain how putcall
parity is related to arbitrage and the construction of synthetic options;
n.
Removed
explain how cash flows on the underlying asset affect putcall parity
and the lower bounds of option prices;
o.
Removed
17.2.5
2014 Syllabus
2015
Syllabus
LOS
Change
Type
2014 Syllabus
2015
Syllabus
a.
Removed
b.
Removed
Study
Sessions
Exam Weighting
2014
Exam Weighting
2015
Net Change
18
3%
4%
+1%