cfa level 1 - los changes 2014 - 2015
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CFA Level 1 - LOS Changes 2014 - 2015
Topic LOS Level I - 2014 (532 LOS) LOS Level I - 2015 (529 LOS) Compared
Ethics 1.1.a
describe the structure of the CFA
Institute Professional Conduct Program
and the process for the enforcement of
the Code and Standards
1.1.a
describe the structure of the CFA
Institute Professional Conduct Program
and the process for the enforcement of
the Code and Standards
Ethics 1.1.b
state the six components of the Code of
Ethics and the seven Standards of
Professional Conduct
1.1.b
state the six components of the Code of
Ethics and the seven Standards of
Professional Conduct
Ethics 1.1.c
explain the ethical responsibilities
required by the Code and Standards,
including the sub-sections of each
Standard
1.1.c
explain the ethical responsibilities
required by the Code and Standards,
including the sub-sections of each
Standard
Ethics 1.2.a
demonstrate the application of the Code
of Ethics and Standards of Professional
Conduct to situations involving issues of
professional integrity
1.2.a
demonstrate the application of the Code
of Ethics and Standards of Professional
Conduct to situations involving issues of
professional integrity
Ethics 1.2.b
distinguish between conduct that
conforms to the Code and Standards
and conduct that violates the Code and
Standards
1.2.b
distinguish between conduct that
conforms to the Code and Standards
and conduct that violates the Code and
Standards
Ethics 1.2.c
recommend practices and procedures
designed to prevent violations of the
Code of Ethics and Standards of
Professional Conduct
1.2.c
recommend practices and procedures
designed to prevent violations of the
Code of Ethics and Standards of
Professional Conduct
Ethics 1.3.a
explain why the GIPS standards were
created, what parties the GIPS
standards apply to, and who is served
by the standards
1.3.a
explain why the GIPS standards were
created, what parties the GIPS
standards apply to, and who is served
by the standards
Ethics 1.3.bexplain the construction and purpose of
composites in performance reporting1.3.b
explain the construction and purpose of
composites in performance reporting
Ethics 1.3.c explain the requirements for verification 1.3.c explain the requirements for verification
Ethics 1.4.a
describe the key features of the GIPS
standards and the fundamentals of
compliance
1.4.a
describe the key features of the GIPS
standards and the fundamentals of
compliance
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Ethics 1.4.b
describe the scope of the GIPS
standards with respect to an investment
firms definition and historical
performance record
1.4.b
describe the scope of the GIPS
standards with respect to an investment
firms definition and historical
performance record
Ethics 1.4.c
explain how the GIPS standards are
implemented in countries with existing
standards for performance reporting
and describe the appropriate response
when the GIPS standards and local
regulations conflict
1.4.c
explain how the GIPS standards are
implemented in countries with existing
standards for performance reporting
and describe the appropriate response
when the GIPS standards and local
regulations conflict
Ethics 1.4.ddescribe the nine major sections of the
GIPS standards1.4.d
describe the nine major sections of the
GIPS standards
Quantitative 2.5.a
interpret interest rates as required rates
of return, discount rates, or opportunity
costs
2.5.a
interpret interest rates as required rates
of return, discount rates, or opportunity
costs
Quantitative 2.5.b
explain an interest rate as the sum of a
real risk-free rate, and premiums that
compensate investors for bearing
distinct types of risk
2.5.b
explain an interest rate as the sum of a
real risk-free rate, and premiums that
compensate investors for bearing
distinct types of risk
Quantitative 2.5.c
calculate and interpret the effective
annual rate, given the stated annual
interest rate and the frequency of
compounding
2.5.c
calculate and interpret the effective
annual rate, given the stated annual
interest rate and the frequency of
compounding
Quantitative 2.5.dsolve time value of money problems for
different frequencies of compounding2.5.d
solve time value of money problems for
different frequencies of compounding
Quantitative 2.5.e
calculate and interpret the future value
(FV) and present value (PV) of a single
sum of money, an ordinary annuity, an
annuity due, a perpetuity (PV only), and
a series of unequal cash flows
2.5.e
calculate and interpret the future value
(FV) and present value (PV) of a single
sum of money, an ordinary annuity, an
annuity due, a perpetuity (PV only), and
a series of unequal cash flows
Quantitative 2.5.f
demonstrate the use of a time line in
modeling and solving time value of
money problems
2.5.f
demonstrate the use of a time line in
modeling and solving time value of
money problems
Quantitative 2.6.a
calculate and interpret the net present
value (NPV) and the internal rate of
return (IRR) of an investment
2.6.a
calculate and interpret the net present
value (NPV) and the internal rate of
return (IRR) of an investment
Quantitative 2.6.b
contrast the NPV rule to the IRR rule,
and identify problems associated with
the IRR rule
2.6.b
contrast the NPV rule to the IRR rule,
and identify problems associated with
the IRR rule
Quantitative 2.6.ccalculate and interpret a holding period
return (total return) 2.6.ccalculate and interpret a holding period
return (total return)
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Quantitative 2.6.d
calculate and compare the money-
weighted and time-weighted rates of
return of a portfolio and evaluate the
performance of portfolios based on
these measures
2.6.d
calculate and compare the money-
weighted and time-weighted rates of
return of a portfolio and evaluate the
performance of portfolios based on
these measures
Quantitative 2.6.e
calculate and interpret the bank
discount yield, holding period yield,
effective annual yield, and money
market yield for U.S. Treasury bills and
other money market instruments
2.6.e
calculate and interpret the bank
discount yield, holding period yield,
effective annual yield, and money
market yield for U.S. Treasury bills and
other money market instruments
Quantitative 2.6.f
convert among holding period yields,
money market yields, effective annual
yields, and bond equivalent yields
2.6.f
convert among holding period yields,
money market yields, effective annual
yields, and bond equivalent yields
Quantitative 2.7.a
distinguish between descriptive
statistics and inferential statistics,
between a population and a sample,
and among the types of measurement
scales
2.7.a
distinguish between descriptive
statistics and inferential statistics,
between a population and a sample,
and among the types of measurement
scales
Quantitative 2.7.bdefine a parameter, a sample statistic,
and a frequency distribution2.7.b
define a parameter, a sample statistic,
and a frequency distribution
Quantitative 2.7.c
calculate and interpret relative
frequencies and cumulative relative
frequencies, given a frequency
distribution
2.7.c
calculate and interpret relative
frequencies and cumulative relative
frequencies, given a frequency
distribution
Quantitative 2.7.d
describe the properties of a data set
presented as a histogram or a
frequency polygon
2.7.d
describe the properties of a data set
presented as a histogram or a
frequency polygon
Quantitative 2.7.e
calculate and interpret measures of
central tendency, including the
population mean, sample mean,
arithmetic mean, weighted average or
mean, geometric mean, harmonic
mean, median, and mode
2.7.e
calculate and interpret measures of
central tendency, including the
population mean, sample mean,
arithmetic mean, weighted average or
mean, geometric mean, harmonic
mean, median, and mode
Quantitative 2.7.fcalculate and interpret quartiles,
quintiles, deciles, and percentiles2.7.f
calculate and interpret quartiles,
quintiles, deciles, and percentiles
Quantitative 2.7.g
calculate and interpret 1) a range and a
mean absolute deviation and 2) the
variance and standard deviation of a
population and of a sample
2.7.g
calculate and interpret 1) a range and a
mean absolute deviation and 2) the
variance and standard deviation of a
population and of a sample
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Quantitative 2.7.h
calculate and interpret the proportion of
observations falling within a specified
number of standard deviations of the
mean using Chebyshevs inequality
2.7.h
calculate and interpret the proportion of
observations falling within a specified
number of standard deviations of the
mean using Chebyshevs inequality
Quantitative 2.7.icalculate and interpret the coefficient of
variation and the Sharpe ratio2.7.i
calculate and interpret the coefficient of
variation and the Sharpe ratio
Quantitative 2.7.j
explain skewness and the meaning of a
positively or negatively skewed return
distribution
2.7.j
explain skewness and the meaning of a
positively or negatively skewed return
distribution
Quantitative 2.7.k
describe the relative locations of the
mean, median, and mode for a
unimodal, nonsymmetrical distribution
2.7.k
describe the relative locations of the
mean, median, and mode for a
unimodal, nonsymmetrical distribution
Quantitative 2.7.lexplain measures of sample skewness
and kurtosis2.7.l
explain measures of sample skewness
and kurtosis
Quantitative 2.7.m
compare the use of arithmetic and
geometric means when analyzing
investment returns
2.7.m
compare the use of arithmetic and
geometric means when analyzing
investment returns
Quantitative 2.8.a
define a random variable, an outcome,
an event, mutually exclusive events,
and exhaustive events
2.8.a
define a random variable, an outcome,
an event, mutually exclusive events,
and exhaustive events
Quantitative 2.8.b
state the two defining properties of
probability and distinguish among
empirical, subjective, and a priori
probabilities
2.8.b
state the two defining properties of
probability and distinguish among
empirical, subjective, and a priori
probabilities
Quantitative 2.8.cstate the probability of an event in
terms of odds for and against the event2.8.c
state the probability of an event in
terms of odds for and against the event
Quantitative 2.8.ddistinguish between unconditional and
conditional probabilities2.8.d
distinguish between unconditional and
conditional probabilities
Quantitative 2.8.eexplain the multiplication, addition, and
total probability rules 2.8.eexplain the multiplication, addition, and
total probability rules
Quantitative 2.8.f
calculate and interpret 1) the joint
probability of two events, 2) the
probability that at least one of two
events will occur, given the probability
of each and the joint probability of the
two events, and 3) a joint probability of
any number of independent events
2.8.f
calculate and interpret 1) the joint
probability of two events, 2) the
probability that at least one of two
events will occur, given the probability
of each and the joint probability of the
two events, and 3) a joint probability of
any number of independent events
Quantitative 2.8.gdistinguish between dependent and
independent events2.8.g
distinguish between dependent and
independent events
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Quantitative 2.8.h
calculate and interpret an unconditional
probability using the total probability
rule
2.8.h
calculate and interpret an unconditional
probability using the total probability
rule
Quantitative 2.8.iexplain the use of conditional
expectation in investment applications2.8.i
explain the use of conditional
expectation in investment applications
Quantitative 2.8.jexplain the use of a tree diagram to
represent an investment problem2.8.j
explain the use of a tree diagram to
represent an investment problem
Quantitative 2.8.kcalculate and interpret covariance and
correlation2.8.k
calculate and interpret covariance and
correlation
Quantitative 2.8.l
calculate and interpret the expected
value, variance, and standard deviation
of a random variable and of returns on
a portfolio
2.8.l
calculate and interpret the expected
value, variance, and standard deviation
of a random variable and of returns on
a portfolio
Quantitative 2.8.mcalculate and interpret covariance given
a joint probability function2.8.m
calculate and interpret covariance given
a joint probability function
Quantitative 2.8.ncalculate and interpret an updated
probability using Bayes formula2.8.n
calculate and interpret an updated
probability using Bayes formula
Quantitative 2.8.o
identify the most appropriate method to
solve a particular counting problem, and
solve counting problems using factorial,
combination, and permutation concepts
2.8.o
identify the most appropriate method to
solve a particular counting problem, and
solve counting problems using factorial,
combination, and permutation concepts
Quantitative 3.9.a
define a probability distribution and
distinguish between discrete and
continuous random variables and their
probability functions
3.9.a
define a probability distribution and
distinguish between discrete and
continuous random variables and their
probability functions
Quantitative 3.9.bdescribe the set of possible outcomes of
a specified discrete random variable3.9.b
describe the set of possible outcomes of
a specified discrete random variable
Quantitative 3.9.cinterpret a cumulative distribution
function 3.9.cinterpret a cumulative distribution
function
Quantitative 3.9.d
calculate and interpret probabilities for
a random variable, given its cumulative
distribution function
3.9.d
calculate and interpret probabilities for
a random variable, given its cumulative
distribution function
Quantitative 3.9.e
define a discrete uniform random
variable, a Bernoulli random variable,
and a binomial random variable
3.9.e
define a discrete uniform random
variable, a Bernoulli random variable,
and a binomial random variable
Quantitative 3.9.f
calculate and interpret probabilities
given the discrete uniform and the
binomial distribution functions
3.9.f
calculate and interpret probabilities
given the discrete uniform and the
binomial distribution functions
Quantitative 3.9.gconstruct a binomial tree to describe
stock price movement 3.9.gconstruct a binomial tree to describe
stock price movement
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Quantitative 3.10.cdistinguish between simple random and
stratified random sampling3.10.c
distinguish between simple random and
stratified random sampling
Quantitative 3.10.ddistinguish between time-series and
cross-sectional data3.10.d
distinguish between time-series and
cross-sectional data
Quantitative 3.10.eexplain the central limit theorem and its
importance3.10.e
explain the central limit theorem and its
importance
Quantitative 3.10.f
calculate and interpret the standard
error of the sample mean 3.10.f
calculate and interpret the standard
error of the sample mean
Quantitative 3.10.gidentify and describe desirable
properties of an estimator3.10.g
identify and describe desirable
properties of an estimator
Quantitative 3.10.h
distinguish between a point estimate
and a confidence interval estimate of a
population parameter
3.10.h
distinguish between a point estimate
and a confidence interval estimate of a
population parameter
Quantitative 3.10.i
describe properties of Students t-
distribution and calculate and interpret
its degrees of freedom
3.10.i
describe properties of Students t-
distribution and calculate and interpret
its degrees of freedom
Quantitative 3.10.j
calculate and interpret a confidence
interval for a population mean, given a
normal distribution with 1) a known
population variance, 2) an unknown
population variance, or 3) an unknown
variance and a large sample size
3.10.j
calculate and interpret a confidence
interval for a population mean, given a
normal distribution with 1) a known
population variance, 2) an unknown
population variance, or 3) an unknown
variance and a large sample size
Quantitative 3.10.k
describe the issues regarding selection
of the appropriate sample size, data-
mining bias, sample selection bias,
survivorship bias, look-ahead bias, and
time-period bias
3.10.k
describe the issues regarding selection
of the appropriate sample size, data-
mining bias, sample selection bias,
survivorship bias, look-ahead bias, and
time-period bias
Quantitative 3.11.a
define a hypothesis, describe the steps
of hypothesis testing, and describe and
interpret the choice of the null and
alternative hypotheses
3.11.a
define a hypothesis, describe the steps
of hypothesis testing, and describe and
interpret the choice of the null and
alternative hypotheses
Quantitative 3.11.bdistinguish between one-tailed and two-
tailed tests of hypotheses3.11.b
distinguish between one-tailed and two-
tailed tests of hypotheses
Quantitative 3.11.c
explain a test statistic, Type I and Type
II errors, a significance level, and how
significance levels are used in
hypothesis testing
3.11.c
explain a test statistic, Type I and Type
II errors, a significance level, and how
significance levels are used in
hypothesis testing
Quantitative 3.11.d
explain a decision rule, the power of a
test, and the relation between
confidence intervals and hypothesis
tests
3.11.d
explain a decision rule, the power of a
test, and the relation between
confidence intervals and hypothesis
tests
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Quantitative 3.11.edistinguish between a statistical result
and an economically meaningful result3.11.e
distinguish between a statistical result
and an economically meaningful result
Quantitative 3.11.fexplain and interpret the p-value as it
relates to hypothesis testing3.11.f
explain and interpret the p-value as it
relates to hypothesis testing
Quantitative 3.11.g
identify the appropriate test statistic
and interpret the results for a
hypothesis test concerning the
population mean of both large and smallsamples when the population is
normally or approximately distributed
and the variance is 1) known or 2)
unknown
3.11.g
identify the appropriate test statistic
and interpret the results for a
hypothesis test concerning the
population mean of both large and smallsamples when the population is
normally or approximately distributed
and the variance is 1) known or 2)
unknown
Quantitative 3.11.h
identify the appropriate test statistic
and interpret the results for a
hypothesis test concerning the equality
of the population means of two at least
approximately normally distributed
populations, based on independent
random samples with 1) equal or 2)
unequal assumed variances
3.11.h
identify the appropriate test statistic
and interpret the results for a
hypothesis test concerning the equality
of the population means of two at least
approximately normally distributed
populations, based on independent
random samples with 1) equal or 2)
unequal assumed variances
Quantitative 3.11.i
identify the appropriate test statistic
and interpret the results for a
hypothesis test concerning the mean
difference of two normally distributed
populations
3.11.i
identify the appropriate test statistic
and interpret the results for a
hypothesis test concerning the mean
difference of two normally distributed
populations
Quantitative 3.11.j
identify the appropriate test statistic
and interpret the results for a
hypothesis test concerning 1) the
variance of a normally distributed
population, and 2) the equality of the
variances of two normally distributed
populations based on two independent
random samples
3.11.j
identify the appropriate test statistic
and interpret the results for a
hypothesis test concerning 1) the
variance of a normally distributed
population, and 2) the equality of the
variances of two normally distributed
populations based on two independent
random samples
Quantitative 3.11.k
distinguish between parametric and
nonparametric tests and describe
situations in which the use of
nonparametric tests may be appropriate
3.11.k
distinguish between parametric and
nonparametric tests and describe
situations in which the use of
nonparametric tests may be appropriate
Quantitative 3.12.a
explain principles of technical analysis,
its applications, and its underlying
assumptions
3.12.a
explain principles of technical analysis,
its applications, and its underlying
assumptions
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Quantitative 3.12.b
describe the construction of different
types of technical analysis charts and
interpret them
3.12.b
describe the construction of different
types of technical analysis charts and
interpret them
Quantitative 3.12.cexplain uses of trend, support,
resistance lines, and change in polarity3.12.c
explain uses of trend, support,
resistance lines, and change in polarity
Quantitative 3.12.d describe common chart patterns 3.12.d describe common chart patterns
Quantitative 3.12.e
describe common technical analysis
indicators (price-based, momentumoscillators, sentiment, and flow of
funds)
3.12.e
describe common technical analysis
indicators (price-based, momentumoscillators, sentiment, and flow of
funds)
Quantitative 3.12.fexplain how technical analysts use
cycles3.12.f
explain how technical analysts use
cycles
Quantitative 3.12.g
describe the key tenets of Elliott Wave
Theory and the importance of Fibonacci
numbers
3.12.g
describe the key tenets of Elliott Wave
Theory and the importance of Fibonacci
numbers
Quantitative 3.12.h
describe intermarket analysis as it
relates to technical analysis and asset
allocation
3.12.h
describe intermarket analysis as it
relates to technical analysis and asset
allocation
Economics 4.13.a distinguish among types of markets 4.13.a distinguish among types of markets
Economics 4.13.bexplain the principles of demand and
supply4.13.b
explain the principles of demand and
supply
Economics 4.13.c
describe causes of shifts in and
movements along demand and supply
curves
4.13.c
describe causes of shifts in and
movements along demand and supply
curves
Economics 4.13.ddescribe the process of aggregating
demand and supply curves4.13.d
describe the process of aggregating
demand and supply curves
Economics 4.13.e
describe the concept of equilibrium
(partial and general), and mechanisms
by which markets achieve equilibrium
4.13.e
describe the concept of equilibrium
(partial and general), and mechanisms
by which markets achieve equilibrium
Economics 4.13.f
distinguish between stable and unstable
equilibria, including price bubbles, and
identify instances of such equilibria
4.13.f
distinguish between stable and unstable
equilibria, including price bubbles, and
identify instances of such equilibria
Economics 4.13.g
calculate and interpret individual and
aggregate demand, and inverse demand
and supply functions, and interpret
individual and aggregate demand and
supply curves
4.13.g
calculate and interpret individual and
aggregate demand, and inverse demand
and supply functions, and interpret
individual and aggregate demand and
supply curves
Economics 4.13.h
calculate and interpret the amount of
excess demand or excess supply
associated with a non-equilibrium price
4.13.h
calculate and interpret the amount of
excess demand or excess supply
associated with a non-equilibrium price
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Economics 4.13.idescribe types of auctions and calculate
the winning price(s) of an auction4.13.i
describe types of auctions and calculate
the winning price(s) of an auction
Economics 4.13.j
calculate and interpret consumer
surplus, producer surplus, and total
surplus
4.13.j
calculate and interpret consumer
surplus, producer surplus, and total
surplus
Economics 4.13.k
describe how government regulation
and intervention affect demand and
supply
4.13.k
describe how government regulation
and intervention affect demand and
supply
Economics 4.13.l
forecast the effect of the introduction
and the removal of a market
interference (e.g., a price floor or
ceiling) on price and quantity
4.13.l
forecast the effect of the introduction
and the removal of a market
interference (e.g., a price floor or
ceiling) on price and quantity
Economics 4.13.m
calculate and interpret price, income,
and cross-price elasticities of demand
and describe factors that affect each
measure
4.13.m
calculate and interpret price, income,
and cross-price elasticities of demand
and describe factors that affect each
measure
Economics 4.14.adescribe consumer choice theory and
utility theory4.14.a
describe consumer choice theory and
utility theory
Economics 4.14.bdescribe the use of indifference curves,opportunity sets, and budget constraints
in decision making
4.14.bdescribe the use of indifference curves,opportunity sets, and budget constraints
in decision making
Economics 4.14.ccalculate and interpret a budget
constraint4.14.c
calculate and interpret a budget
constraint
Economics 4.14.d
determine a consumers equilibrium
bundle of goods based on utility
analysis
4.14.d
determine a consumers equilibrium
bundle of goods based on utility
analysis
Economics 4.14.ecompare substitution and income effects
4.14.ecompare substitution and income effects
Economics 4.14.f
distinguish between normal goods and
inferior goods, and explain Giffen goods
and Veblen goods in this context
4.14.f
distinguish between normal goods and
inferior goods, and explain Giffen goods
and Veblen goods in this context
Economics 4.15.a
calculate, interpret, and compare
accounting profit, economic profit,
normal profit, and economic rent
4.15.a
calculate, interpret, and compare
accounting profit, economic profit,
normal profit, and economic rent
Economics 4.15.bcalculate and interpret and compare
total, average, and marginal revenue4.15.b
calculate and interpret and compare
total, average, and marginal revenue
Economics 4.15.c describe a firms factors of production 4.15.c describe a firms factors of production
Economics 4.15.dcalculate and interpret total, average,
marginal, fixed, and variable costs4.15.d
calculate and interpret total, average,
marginal, fixed, and variable costs
Economics 4.15.e
determine and describe breakeven and
shutdown points of production 4.15.e
determine and describe breakeven and
shutdown points of production
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Economics 4.15.fdescribe approaches to determining the
profit-maximizing level of output4.15.f
describe approaches to determining the
profit-maximizing level of output
Economics 4.15.gdescribe how economies of scale and
diseconomies of scale affect costs4.15.g
describe how economies of scale and
diseconomies of scale affect costs
Economics 4.15.hdistinguish between short-run and long-
run profit maximization4.15.h
distinguish between short-run and long-
run profit maximization
Economics 4.15.i
distinguish among decreasing-cost,
constant-cost, and increasing-costindustries and describe the long-run
supply of each
4.15.i
distinguish among decreasing-cost,
constant-cost, and increasing-costindustries and describe the long-run
supply of each
Economics 4.15.jcalculate and interpret total, marginal,
and average product of labor4.15.j
calculate and interpret total, marginal,
and average product of labor
Economics 4.15.k
describe the phenomenon of diminishing
marginal returns and calculate and
interpret the profit-maximizing
utilization level of an input
4.15.k
describe the phenomenon of diminishing
marginal returns and calculate and
interpret the profit-maximizing
utilization level of an input
Economics 4.15.ldetermine the optimal combination of
resources that minimizes cost4.15.l
determine the optimal combination of
resources that minimizes cost
Economics 4.16.adescribe characteristics of perfectcompetition, monopolistic competition,
oligopoly, and pure monopoly
4.16.adescribe characteristics of perfectcompetition, monopolistic competition,
oligopoly, and pure monopoly
Economics 4.16.b
explain relationships between price,
marginal revenue, marginal cost,
economic profit, and the elasticity of
demand under each market structure
4.16.b
explain relationships between price,
marginal revenue, marginal cost,
economic profit, and the elasticity of
demand under each market structure
Economics 4.16.cdescribe a firms supply function under
each market structure4.16.c
describe a firms supply function under
each market structure
Economics 4.16.d
describe and determine the optimal
price and output for firms under each
market structure
4.16.d
describe and determine the optimal
price and output for firms under each
market structure
Economics 4.16.e explain factors affecting long-run
equilibrium under each market structure
4.16.e explain factors affecting long-run
equilibrium under each market structure
Economics 4.16.fdescribe pricing strategy under each
market structure4.16.f
describe pricing strategy under each
market structure
Economics 4.16.g
describe the use and limitations of
concentration measures in identifying
market structure
4.16.g
describe the use and limitations of
concentration measures in identifying
market structure
Economics 4.16.hidentify the type of market structure
within which a firm operates4.16.h
identify the type of market structure
within which a firm operates
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Economics 5.17.a
calculate and explain gross domestic
product (GDP) using expenditure and
income approaches
5.17.a
calculate and explain gross domestic
product (GDP) using expenditure and
income approaches
Economics 5.17.b
compare the sum-of-value-added and
value-of-final-output methods of
calculating GDP
5.17.b
compare the sum-of-value-added and
value-of-final-output methods of
calculating GDP
Economics 5.17.c
compare nominal and real GDP and
calculate and interpret the GDP deflator 5.17.c
compare nominal and real GDP and
calculate and interpret the GDP deflator
Economics 5.17.d compare GDP, national income, personal
income, and personal disposable income
5.17.d compare GDP, national income, personal
income, and personal disposable income
Economics 5.17.e
explain the fundamental relationship
among saving, investment, the fiscal
balance, and the trade balance
5.17.e
explain the fundamental relationship
among saving, investment, the fiscal
balance, and the trade balance
Economics 5.17.f
explain the IS and LM curves and how
they combine to generate the aggregate
demand curve
5.17.f
explain the IS and LM curves and how
they combine to generate the aggregate
demand curve
Economics 5.17.g
explain the aggregate supply curve in
the short run and long run 5.17.g
explain the aggregate supply curve in
the short run and long run
Economics 5.17.h
explain causes of movements along and
shifts in aggregate demand and supply
curves
5.17.h
explain causes of movements along and
shifts in aggregate demand and supply
curves
Economics 5.17.i
describe how fluctuations in aggregate
demand and aggregate supply cause
short-run changes in the economy and
the business cycle
5.17.i
describe how fluctuations in aggregate
demand and aggregate supply cause
short-run changes in the economy and
the business cycle
Economics 5.17.j
distinguish between the following types
of macroeconomic equilibria: long-run
full employment, short-run recessionary
gap, short-run inflationary gap, and
short-run stagflation
New
Economics 5.17.j
explain how a short-run macroeconomic
equilibrium may occur at a level above
or below full employment
5.17.k
explain how a short-run macroeconomic
equilibrium may occur at a level above
or below full employment
Economics 5.17.k
analyze the effect of combined changes
in aggregate supply and demand on the
economy
5.17.l
analyze the effect of combined changes
in aggregate supply and demand on the
economy
Economics 5.17.ldescribe sources, measurement, and
sustainability of economic growth5.17.m
describe sources, measurement, and
sustainability of economic growth
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Economics 5.17.m
describe the production function
approach to analyzing the sources of
economic growth
5.17.n
describe the production function
approach to analyzing the sources of
economic growth
Economics 5.17.n
distinguish between input growth and
growth of total factor productivity as
components of economic growth
5.17.o
distinguish between input growth and
growth of total factor productivity as
components of economic growth
Economics 5.18.a
describe the business cycle and its
phases 5.18.a
describe the business cycle and its
phases
Economics 5.18.b
describe how resource use, housing
sector activity, and external trade sector
activity vary as an economy moves
through the business cycle
5.18.b
describe how resource use, housing
sector activity, and external trade sector
activity vary as an economy moves
through the business cycle
Economics 5.18.c describe theories of the business cycle 5.18.c describe theories of the business cycle
Economics 5.18.ddescribe types of unemployment and
measures of unemployment5.18.d
describe types of unemployment and
measures of unemployment
Economics 5.18.eexplain inflation, hyperinflation,
disinflation, and deflation5.18.e
explain inflation, hyperinflation,
disinflation, and deflation
Economics 5.18.f
explain the construction of indices used
to measure inflation 5.18.f
explain the construction of indices used
to measure inflation
Economics 5.18.gcompare inflation measures, including
their uses and limitations5.18.g
compare inflation measures, including
their uses and limitations
Economics 5.18.hdistinguish between cost-push and
demand-pull inflation5.18.h
distinguish between cost-push and
demand-pull inflation
Economics 5.18.idescribe economic indicators, including
their uses and limitations5.18.i
describe economic indicators, including
their uses and limitations
Economics 5.19.a compare monetary and fiscal policy 5.19.a compare monetary and fiscal policy
Economics 5.19.bdescribe functions and definitions of
money5.19.b
describe functions and definitions of
money
Economics 5.19.c explain the money creation process 5.19.c explain the money creation process
Economics 5.19.ddescribe theories of the demand for and
supply of money5.19.d
describe theories of the demand for and
supply of money
Economics 5.19.e describe the Fisher effect 5.19.e describe the Fisher effect
Economics 5.19.fdescribe roles and objectives of central
banks5.19.f
describe roles and objectives of central
banks
Economics 5.19.gcontrast the costs of expected and
unexpected inflation5.19.g
contrast the costs of expected and
unexpected inflation
Economics 5.19.hdescribe tools used to implement
monetary policy5.19.h
describe tools used to implement
monetary policy
Economics 5.19.idescribe the monetary transmission
mechanism New
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Economics 5.19.idescribe qualities of effective central
banks5.19.j
describe qualities of effective central
banks
Economics 5.19.j
explain the relationships between
monetary policy and economic growth,
inflation, interest, and exchange rates
5.19.k
explain the relationships between
monetary policy and economic growth,
inflation, interest, and exchange rates
Economics 5.19.k
contrast the use of inflation, interest
rate, and exchange rate targeting by
central banks
5.19.l
contrast the use of inflation, interest
rate, and exchange rate targeting by
central banks
Economics 5.19.ldetermine whether a monetary policy is
expansionary or contractionary5.19.m
determine whether a monetary policy is
expansionary or contractionary
Economics 5.19.m describe limitations of monetary policy 5.19.n describe limitations of monetary policy
Economics 5.19.ndescribe roles and objectives of fiscal
policy5.19.o
describe roles and objectives of fiscal
policy
Economics 5.19.odescribe tools of fiscal policy, including
their advantages and disadvantages5.19.p
describe tools of fiscal policy, including
their advantages and disadvantages
Economics 5.19.p
describe the arguments about whether
the size of a national debt relative to
GDP matters
5.19.q
describe the arguments about whether
the size of a national debt relative to
GDP matters
Economics 5.19.qexplain the implementation of fiscalpolicy and difficulties of implementation
5.19.rexplain the implementation of fiscalpolicy and difficulties of implementation
Economics 5.19.rdetermine whether a fiscal policy is
expansionary or contractionary5.19.s
determine whether a fiscal policy is
expansionary or contractionary
Economics 5.19.sexplain the interaction of monetary and
fiscal policy5.19.t
explain the interaction of monetary and
fiscal policy
Economics 6.20.acompare gross domestic product and
gross national product6.20.a
compare gross domestic product and
gross national product
Economics 6.20.bdescribe benefits and costs of
international trade6.20.b
describe benefits and costs of
international trade
Economics 6.20.c
distinguish between comparative
advantage and absolute advantage 6.20.c
distinguish between comparative
advantage and absolute advantage
Economics 6.20.d
explain the Ricardian and
HeckscherOhlin models of trade and
the source(s) of comparative advantage
in each model
6.20.d
explain the Ricardian and
HeckscherOhlin models of trade and
the source(s) of comparative advantage
in each model
Economics 6.20.e
compare types of trade and capital
restrictions and their economic
implications
6.20.e
compare types of trade and capital
restrictions and their economic
implications
Economics 6.20.f
explain motivations for and advantages
of trading blocs, common markets, and
economic unions
6.20.f
explain motivations for and advantages
of trading blocs, common markets, and
economic unions
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Economics 6.20.gdescribe common objectives of capital
restrictions imposed by governments New
Economics 6.20.gdescribe the balance of payments
accounts including their components6.20.h
describe the balance of payments
accounts including their components
Economics 6.20.h
explain how decisions by consumers,
firms, and governments affect the
balance of payments
6.20.i
explain how decisions by consumers,
firms, and governments affect the
balance of payments
Economics 6.20.i
describe functions and objectives of theinternational organizations that facilitate
trade, including the World Bank, the
International Monetary Fund, and the
World Trade Organization
6.20.j
describe functions and objectives of theinternational organizations that facilitate
trade, including the World Bank, the
International Monetary Fund, and the
World Trade Organization
Economics 6.21.a
define an exchange rate, and
distinguish between nominal and real
exchange rates and spot and forward
exchange rates
6.21.a
define an exchange rate, and
distinguish between nominal and real
exchange rates and spot and forward
exchange rates
Economics 6.21.bdescribe functions of and participants in
the foreign exchange market6.21.b
describe functions of and participants in
the foreign exchange market
Economics 6.21.ccalculate and interpret the percentagechange in a currency relative to another
currency
6.21.ccalculate and interpret the percentagechange in a currency relative to another
currency
Economics 6.21.dcalculate and interpret currency cross-
rates6.21.d
calculate and interpret currency cross-
rates
Economics 6.21.econvert forward quotations expressed
on a points basis or in percentage terms
into an outright forward quotation
6.21.econvert forward quotations expressed
on a points basis or in percentage terms
into an outright forward quotation
Economics 6.21.f
explain the arbitrage relationship
between spot rates, forward rates, and
interest rates
6.21.f
explain the arbitrage relationship
between spot rates, forward rates, and
interest rates
Economics 6.21.gcalculate and interpret a forward
discount or premium6.21.g
calculate and interpret a forward
discount or premium
Economics 6.21.h
calculate and interpret the forward rate
consistent with the spot rate and the
interest rate in each currency
6.21.h
calculate and interpret the forward rate
consistent with the spot rate and the
interest rate in each currency
Economics 6.21.i describe exchange rate regimes 6.21.i describe exchange rate regimes
Economics 6.21.j
explain the effects of exchange rates on
countries international trade and capital
flows
6.21.j
explain the effects of exchange rates on
countries international trade and capital
flows
Financial
Reporting 7.22.a
describe the roles of financial reporting
and financial statement analysis 7.22.a
describe the roles of financial reporting
and financial statement analysis
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Financial
Reporting7.22.b
describe the roles of the key financial
statements (statement of financial
position, statement of comprehensive
income, statement of changes in equity,
and statement of cash flows) in
evaluating a companys performance
and financial position
7.22.b
describe the roles of the key financial
statements (statement of financial
position, statement of comprehensive
income, statement of changes in equity,
and statement of cash flows) in
evaluating a companys performance
and financial position
Financial
Reporting7.22.c
describe the importance of financialstatement notes and supplementary
informationincluding disclosures of
accounting policies, methods, and
estimates and managements
commentary
7.22.c
describe the importance of financialstatement notes and supplementary
informationincluding disclosures of
accounting policies, methods, and
estimates and managements
commentary
Financial
Reporting7.22.d
describe the objective of audits of
financial statements, the types of audit
reports, and the importance of effective
internal controls
7.22.d
describe the objective of audits of
financial statements, the types of audit
reports, and the importance of effective
internal controls
Financial
Reporting7.22.e
identify and describe information
sources that analysts use in financialstatement analysis besides annual
financial statements and supplementary
information
7.22.e
identify and describe information
sources that analysts use in financialstatement analysis besides annual
financial statements and supplementary
information
Financial
Reporting7.22.f
describe the steps in the financial
statement analysis framework7.22.f
describe the steps in the financial
statement analysis framework
Financial
Reporting7.23.a
explain the relationship of financial
statement elements and accounts, and
classify accounts into the financial
statement elements
7.23.a
explain the relationship of financial
statement elements and accounts, and
classify accounts into the financial
statement elements
Financial
Reporting 7.23.b
explain the accounting equation in its
basic and expanded forms 7.23.b
explain the accounting equation in its
basic and expanded forms
Financial
Reporting7.23.c
describe the process of recording
business transactions using an
accounting system based on the
accounting equation
7.23.c
describe the process of recording
business transactions using an
accounting system based on the
accounting equation
Financial
Reporting7.23.d
describe the need for accruals and other
adjustments in preparing financial
statements
7.23.d
describe the need for accruals and other
adjustments in preparing financial
statements
Financial
Reporting7.23.e
describe the relationships among the
income statement, balance sheet,
statement of cash flows, and statement
of owners equity
7.23.e
describe the relationships among the
income statement, balance sheet,
statement of cash flows, and statement
of owners equity
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Financial
Reporting7.23.f
describe the flow of information in an
accounting system7.23.f
describe the flow of information in an
accounting system
Financial
Reporting7.23.g
describe the use of the results of the
accounting process in security analysis7.23.g
describe the use of the results of the
accounting process in security analysis
Financial
Reporting7.24.a
describe the objective of financial
statements and the importance of
financial reporting standards in security
analysis and valuation
7.24.a
describe the objective of financial
statements and the importance of
financial reporting standards in security
analysis and valuation
Financial
Reporting7.24.b
describe roles and desirable attributes
of financial reporting standard-setting
bodies and regulatory authorities in
establishing and enforcing reporting
standards, and describe the role of the
International Organization of Securities
Commissions
7.24.b
describe roles and desirable attributes
of financial reporting standard-setting
bodies and regulatory authorities in
establishing and enforcing reporting
standards, and describe the role of the
International Organization of Securities
Commissions
Financial
Reporting
7.24.c
describe the status of global
convergence of accounting standards
and ongoing barriers to developing one
universally accepted set of financialreporting standards
7.24.c
describe the status of global
convergence of accounting standards
and ongoing barriers to developing one
universally accepted set of financialreporting standards
Financial
Reporting7.24.d
describe the International Accounting
Standards Boards conceptual
framework, including the objective and
qualitative characteristics of financial
statements, required reporting
elements, and constraints and
assumptions in preparing financial
statements
7.24.d
describe the International Accounting
Standards Boards conceptual
framework, including the objective and
qualitative characteristics of financial
statements, required reporting
elements, and constraints and
assumptions in preparing financial
statements
FinancialReporting
7.24.e describe general requirements forfinancial statements under IFRS
7.24.e
describe general requirements for
financial statements under InternationalFinancial Reporting Standards (IFRS)
WordingChange
Financial
Reporting7.24.f
compare key concepts of financial
reporting standards under IFRS and
U.S. GAAP reporting systems
7.24.f
compare key concepts of financial
reporting standards under IFRS and US
generally accepted accounting principles
(US GAAP) reporting systems
Wording
Change
Financial
Reporting7.24.g
identify characteristics of a coherent
financial reporting framework and the
barriers to creating such a framework
7.24.g
identify characteristics of a coherent
financial reporting framework and the
barriers to creating such a framework
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Financial
Reporting7.24.h
describe implications for financial
analysis of differing financial reporting
systems and the importance of
monitoring developments in financial
reporting standards
7.24.h
describe implications for financial
analysis of differing financial reporting
systems and the importance of
monitoring developments in financial
reporting standards
Financial
Reporting7.24.i
analyze company disclosures of
significant accounting policies7.24.i
analyze company disclosures of
significant accounting policies
Financial
Reporting8.25.a
describe the components of the incomestatement and alternative presentation
formats of that statement
8.25.adescribe the components of the incomestatement and alternative presentation
formats of that statement
Financial
Reporting8.25.b
describe general principles of revenue
recognition and accrual accounting,
specific revenue recognition applications
(including accounting for long-term
contracts, installment sales, barter
transactions, gross and net reporting of
revenue), and implications of revenue
recognition principles for financial
analysis
8.25.b
describe general principles of revenue
recognition and accrual accounting,
specific revenue recognition applications
(including accounting for long-term
contracts, installment sales, barter
transactions, gross and net reporting of
revenue), and implications of revenue
recognition principles for financial
analysis
Financial
Reporting8.25.c
calculate revenue given information that
might influence the choice of revenue
recognition method
8.25.c
calculate revenue given information that
might influence the choice of revenue
recognition method
Financial
Reporting8.25.d
describe general principles of expense
recognition, specific expense recognition
applications, and implications of
expense recognition choices for financial
analysis
8.25.d
describe general principles of expense
recognition, specific expense recognition
applications, and implications of
expense recognition choices for financial
analysis
FinancialReporting
8.25.e
describe the financial reporting
treatment and analysis of non-recurring
items (including discontinuedoperations, extraordinary items,
unusual or infrequent items) and
changes in accounting standards
8.25.e
describe the financial reporting
treatment and analysis of non-recurring
items (including discontinuedoperations, extraordinary items,
unusual or infrequent items) and
changes in accounting standards
Financial
Reporting8.25.f
distinguish between the operating and
non-operating components of the
income statement
8.25.f
distinguish between the operating and
non-operating components of the
income statement
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Financial
Reporting8.25.g
describe how earnings per share is
calculated and calculate and interpret a
companys earnings per share (both
basic and diluted earnings per share)
for both simple and complex capital
structures
8.25.g
describe how earnings per share is
calculated and calculate and interpret a
companys earnings per share (both
basic and diluted earnings per share)
for both simple and complex capital
structures
FinancialReporting
8.25.h
distinguish between dilutive and
antidilutive securities, and describe theimplications of each for the earnings per
share calculation
8.25.h
distinguish between dilutive and
antidilutive securities, and describe theimplications of each for the earnings per
share calculation
Financial
Reporting8.25.i
convert income statements to common-
size income statements8.25.i
convert income statements to common-
size income statements
Financial
Reporting8.25.j
evaluate a companys financial
performance using common-size income
statements and financial ratios based on
the income statement
8.25.j
evaluate a companys financial
performance using common-size income
statements and financial ratios based on
the income statement
Financial
Reporting8.25.k
describe, calculate, and interpret
comprehensive income8.25.k
describe, calculate, and interpret
comprehensive income
Financial
Reporting8.25.l
describe other comprehensive income,and identify major types of items
included in it
8.25.ldescribe other comprehensive income,and identify major types of items
included in it
Financial
Reporting8.26.a
describe the elements of the balance
sheet: assets, liabilities, and equity8.26.a
describe the elements of the balance
sheet: assets, liabilities, and equity
Financial
Reporting8.26.b
describe uses and limitations of the
balance sheet in financial analysis8.26.b
describe uses and limitations of the
balance sheet in financial analysis
Financial
Reporting8.26.c
describe alternative formats of balance
sheet presentation8.26.c
describe alternative formats of balance
sheet presentation
Financial
Reporting
8.26.d
distinguish between current and non-
current assets, and current and non-
current liabilities
8.26.d
distinguish between current and non-
current assets, and current and non-
current liabilities
Financial
Reporting8.26.e
describe different types of assets and
liabilities and the measurement bases of
each
8.26.e
describe different types of assets and
liabilities and the measurement bases of
each
Financial
Reporting8.26.f
describe the components of
shareholders equity8.26.f
describe the components of
shareholders equity
Financial
Reporting8.26.g analyze balance sheets and statements
of changes in equity
8.26.g
convert balance sheets to common-size
balance sheets and interpret common-
size balance sheets
Separation
Financial
Reporting
8.26.h
convert balance sheets to common-size
balance sheets and interpret common-
size balance sheets
Separation
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Financial
Reporting8.26.i
calculate and interpret liquidity and
solvency ratios8.26.h
calculate and interpret liquidity and
solvency ratios
Financial
Reporting8.27.a
compare cash flows from operating,
investing, and financing activities and
classify cash flow items as relating to
one of those three categories given a
description of the items
8.27.a
compare cash flows from operating,
investing, and financing activities and
classify cash flow items as relating to
one of those three categories given a
description of the items
FinancialReporting
8.27.b describe how non-cash investing andfinancing activities are reported
8.27.b describe how non-cash investing andfinancing activities are reported
Financial
Reporting8.27.c
contrast cash flow statements prepared
under International Financial Reporting
Standards (IFRS) and U.S. generally
accepted accounting principles (U.S.
GAAP)
8.27.c
contrast cash flow statements prepared
under International Financial Reporting
Standards (IFRS) and U.S. generally
accepted accounting principles (U.S.
GAAP)
Financial
Reporting8.27.d
distinguish between the direct and
indirect methods of presenting cash
from operating activities and describe
arguments in favor of each method
8.27.d
distinguish between the direct and
indirect methods of presenting cash
from operating activities and describe
arguments in favor of each method
Financial
Reporting8.27.e
describe how the cash flow statement islinked to the income statement and the
balance sheet
8.27.edescribe how the cash flow statement islinked to the income statement and the
balance sheet
Financial
Reporting8.27.f
describe the steps in the preparation of
direct and indirect cash flow
statements, including how cash flows
can be computed using income
statement and balance sheet data
8.27.f
describe the steps in the preparation of
direct and indirect cash flow
statements, including how cash flows
can be computed using income
statement and balance sheet data
Financial
Reporting8.27.g
convert cash flows from the indirect to
direct method8.27.g
convert cash flows from the indirect to
direct method
Financial
Reporting 8.27.h
analyze and interpret both reported and
common-size cash flow statements 8.27.h
analyze and interpret both reported and
common-size cash flow statements
Financial
Reporting8.27.i
calculate and interpret free cash flow to
the firm, free cash flow to equity, and
performance and coverage cash flow
ratios
8.27.i
calculate and interpret free cash flow to
the firm, free cash flow to equity, and
performance and coverage cash flow
ratios
Financial
Reporting8.28.a
describe tools and techniques used in
financial analysis, including their uses
and limitations
8.28.a
describe tools and techniques used in
financial analysis, including their uses
and limitations
Financial
Reporting8.28.b
classify, calculate, and interpret activity,
liquidity, solvency, profitability, and
valuation ratios
8.28.b
classify, calculate, and interpret activity,
liquidity, solvency, profitability, and
valuation ratios
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Financial
Reporting8.28.c
describe relationships among ratios and
evaluate a company using ratio analysis8.28.c
describe relationships among ratios and
evaluate a company using ratio analysis
Financial
Reporting8.28.d
demonstrate the application of DuPont
analysis of return on equity, and
calculate and interpret effects of
changes in its components
8.28.d
demonstrate the application of DuPont
analysis of return on equity, and
calculate and interpret effects of
changes in its components
Financial
Reporting8.28.e
calculate and interpret ratios used in
equity analysis and credit analysis8.28.e
calculate and interpret ratios used in
equity analysis and credit analysis
Financial
Reporting8.28.f
explain the requirements for segment
reporting, and calculate and interpret
segment ratios
8.28.f
explain the requirements for segment
reporting, and calculate and interpret
segment ratios
Financial
Reporting8.28.g
describe how ratio analysis and other
techniques can be used to model and
forecast earnings
8.28.g
describe how ratio analysis and other
techniques can be used to model and
forecast earnings
Financial
Reporting9.29.a
distinguish between costs included in
inventories and costs recognized as
expenses in the period in which they are
incurred
9.29.a
distinguish between costs included in
inventories and costs recognised as
expenses in the period in which they are
incurred
sp
FinancialReporting
9.29.b describe different inventory valuationmethods (cost formulas)
9.29.b describe different inventory valuationmethods (cost formulas)
Financial
Reporting9.29.c
calculate cost of sales and ending
inventory using different inventory
valuation methods and explain the
effect of the inventory valuation method
choice on gross profit
9.29.c
calculate cost of sales and ending
inventory using different inventory
valuation methods and explain the
effect of the inventory valuation method
choice on gross profit
Financial
Reporting9.29.d
calculate and compare cost of sales,
gross profit, and ending inventory using
perpetual and periodic inventory
systems
9.29.d
calculate and compare cost of sales,
gross profit, and ending inventory using
perpetual and periodic inventory
systems
Financial
Reporting9.29.e
compare cost of sales, ending inventory,and gross profit using different
inventory valuation methods
9.29.ecompare cost of sales, ending inventory,and gross profit using different
inventory valuation methods
Financial
Reporting9.29.f
describe the measurement of inventory
at the lower of cost and net realisable
value
9.29.f
describe the measurement of inventory
at the lower of cost and net realisable
value
Financial
Reporting9.29.g
describe the financial statement
presentation of and disclosures relating
to inventories
9.29.g
describe the financial statement
presentation of and disclosures relating
to inventories
Financial
Reporting9.29.h
calculate and interpret ratios used to
evaluate inventory management9.29.h
calculate and interpret ratios used to
evaluate inventory management
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Financial
Reporting9.30.a
distinguish between costs that are
capitalized and costs that are expensed
in the period in which they are incurred
9.30.a
distinguish between costs that are
capitalized and costs that are expensed
in the period in which they are incurred
Financial
Reporting9.30.b
compare the financial reporting of the
following types of intangible assets:
purchased, internally developed,
acquired in a business combination
9.30.b
compare the financial reporting of the
following types of intangible assets:
purchased, internally developed,
acquired in a business combination
Financial
Reporting9.30.c
describe the different depreciationmethods for property, plant, and
equipment, the effect of the choice of
depreciation method on the financial
statements, and the effects of
assumptions concerning useful life and
residual value on depreciation expense
9.30.c
describe the different depreciationmethods for property, plant, and
equipment, the effect of the choice of
depreciation method on the financial
statements, and the effects of
assumptions concerning useful life and
residual value on depreciation expense
Financial
Reporting9.30.d
calculate depreciation expense9.30.d
calculate depreciation expense
Financial
Reporting9.30.e
describe the different amortization
methods for intangible assets with finite
lives, the effect of the choice ofamortization method on the financial
statements, and the effects of
assumptions concerning useful life and
residual value on amortization expense
9.30.e
describe the different amortization
methods for intangible assets with finite
lives, the effect of the choice ofamortization method on the financial
statements, and the effects of
assumptions concerning useful life and
residual value on amortization expense
Financial
Reporting9.30.f
calculate amortization expense9.30.f
calculate amortization expense
Financial
Reporting9.30.g
describe the revaluation model9.30.g
describe the revaluation model
Financial
Reporting
9.30.h
explain the imparment of property,
plant, and equipment and intangible
assets
9.30.h
explain the impairment of property,
plant, and equipment and intangible
assets
Financial
Reporting9.30.i
explain the derecognition of property,
plant, and equipment and intangible
assets
9.30.i
explain the derecognition of property,
plant, and equipment and intangible
assets
Financial
Reporting9.30.j
describe the financial statement
presentation of and disclosures relating
to property, plant, and equipment and
intangible assets
9.30.j
describe the financial statement
presentation of and disclosures relating
to property, plant, and equipment and
intangible assets
Financial
Reporting9.30.k
compare the financial reporting of
investment property with that of
property, plant, and equipment
9.30.k
compare the financial reporting of
investment property with that of
property, plant, and equipment
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Financial
Reporting9.31.a
describe the differences between
accounting profit and taxable income,
and define key terms, including deferred
tax assets, deferred tax liabilities,
valuation allowance, taxes payable, and
income tax expense
9.31.a
describe the differences between
accounting profit and taxable income,
and define key terms, including deferred
tax assets, deferred tax liabilities,
valuation allowance, taxes payable, and
income tax expense
Financial
Reporting9.31.b
explain how deferred tax liabilities and
assets are created and the factors thatdetermine how a companys deferred
tax liabilities and assets should be
treated for the purposes of financial
analysis
9.31.b
explain how deferred tax liabilities and
assets are created and the factors thatdetermine how a companys deferred
tax liabilities and assets should be
treated for the purposes of financial
analysis
Financial
Reporting9.31.c
calculate the tax base of a companys
assets and liabilities9.31.c
calculate the tax base of a companys
assets and liabilities
Financial
Reporting9.31.d
calculate income tax expense, income
taxes payable, deferred tax assets, and
deferred tax liabilities, and calculate and
interpret the adjustment to the financial
statements related to a change in theincome tax rate
9.31.d
calculate income tax expense, income
taxes payable, deferred tax assets, and
deferred tax liabilities, and calculate and
interpret the adjustment to the financial
statements related to a change in theincome tax rate
Financial
Reporting9.31.e
evaluate the impact of tax rate changes
on a company's financial statements
and ratios
9.31.e
evaluate the impact of tax rate changes
on a companys financial statements
and ratios
Financial
Reporting9.31.f
distinguish between temporary and
permanent differences in pre-tax
accounting income and taxable income
9.31.f
distinguish between temporary and
permanent differences in pre-tax
accounting income and taxable income
Financial
Reporting9.31.g
describe the valuation allowance for
deferred tax assetswhen it is required
and what impact it has on financial
statements
9.31.g
describe the valuation allowance for
deferred tax assetswhen it is required
and what impact it has on financial
statementsFinancial
Reporting9.31.h
compare a companys deferred tax
items9.31.h
compare a companys deferred tax
items
Financial
Reporting9.31.i
analyze disclosures relating to deferred
tax items and the effective tax rate
reconciliation, and explain how
information included in these
disclosures affects a companys financial
statements and financial ratios
9.31.i
analyze disclosures relating to deferred
tax items and the effective tax rate
reconciliation, and explain how
information included in these
disclosures affects a companys financial
statements and financial ratios
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Financial
Reporting9.31.j
identify the key provisions of and
differences between income tax
accounting under IFRS and U.S. GAAP
9.31.j
identify the key provisions of and
differences between income tax
accounting under International Financial
Reporting Standards (IFRS) and US
generally accepted accounting principles
(GAAP)
Wording
Change
Financial
Reporting 9.32.a
determine the initial recognition, initial
measurement and subsequentmeasurement of bonds
9.32.a
determine the initial recognition, initial
measurement and subsequentmeasurement of bonds
Financial
Reporting9.32.b
describe the effective interest method
and calculate interest expense,
amortisation of bond
discounts/premiums, and interest
payments
9.32.b
describe the effective interest method
and calculate interest expense,
amortisation of bond
discounts/premiums, and interest
payments
Financial
Reporting9.32.c
explain the derecognition of debt9.32.c
explain the derecognition of debt
Financial
Reporting9.32.d
describe the role of debt covenants in
protecting creditors9.32.d
describe the role of debt covenants in
protecting creditors
Financial
Reporting9.32.e
describe the financial statementpresentation of and disclosures relating
to debt
9.32.edescribe the financial statementpresentation of and disclosures relating
to debt
Financial
Reporting9.32.f
explain the motivations for leasing
assets instead of purchasing them9.32.f
explain motivations for leasing assets
instead of purchasing them
Wording
Change
Financial
Reporting9.32.g
distinguish between a finance lease and
an operating lease from the
perspectives of the lessor and the
lessee
9.32.g
distinguish between a finance lease and
an operating lease from the
perspectives of the lessor and the
lessee
Financial
Reporting
9.32.h
determine the initial recognition, initial
measurement, and subsequent
measurement of finance leases
9.32.h
determine the initial recognition, initial
measurement, and subsequent
measurement of finance leasesFinancial
Reporting9.32.i
compare the disclosures relating to
finance and operating leases9.32.i
compare the disclosures relating to
finance and operating leases
Financial
Reporting9.32.j
describe defined contribution and
defined benefit pension plansRemoved
Financial
Reporting9.32.k
compare the presentation and
disclosure of defined contribution and
defined benefit pension plans
9.32.j
compare the presentation and
disclosure of defined contribution and
defined benefit pension plans
Financial
Reporting9.32.l
calculate and interpret leverage and
coverage ratios9.32.k
calculate and interpret leverage and
coverage ratios
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Financial
Reporting10.33.a
distinguish between financial reporting
quality and quality of reported results
(including quality of earnings, cash flow,
and balance sheet items)
New
Financial
Reporting10.33.b
describe a spectrum for assessing
financial reporting quality New
Financial
Reporting10.33.c
distinguish between conservative and
aggressive accounting New
Financial
Reporting10.33.a
describe incentives that might induce a
companys executives to manage
reported earnings, financial positions,
and cash flows
10.33.ddescribe motivations that might cause
management to issue financial reports
that are not high quality
Wording
Change
Financial
Reporting10.33.b
describe activities that will result in a
low quality of earnings Separation
Financial
Reporting10.33.c
describe the three conditions that are
generally present when fraud occurs,
including the risk factors related to
these conditions
10.33.edescribe conditions that are conducive
to issuing low-quality, or even
fraudulent, financial reports
Separation
Financial
Reporting10.33.f
describe mechanisms that disciplinefinancial reporting quality and the
potential limitations of those
mechanisms
New
Financial
Reporting10.33.g
describe presentation choices, including
non-GAAP measures, that could be used
to influence an analysts opinion
New
Financial
Reporting10.33.h
describe accounting methods (choices
and estimates) that could be used to
manage earnings, cash flow, and
balance sheet items
New
Financial
Reporting10.33.d describe common accounting warning
signs and methods for detecting each
10.33.idescribe accounting warning signs andmethods for detecting manipulation of
information in financial reports
Wording
Change
Financial
Reporting10.34.a
describe reasons for investors to assess
the quality of cash flow statements Removed
Financial
Reporting10.34.b
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
Removed
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Financial
Reporting10.35.a
evaluate a companys past financial
performance and explain how a
companys strategy is reflected in past
financial performance
10.34.a
evaluate a companys past financial
performance and explain how a
companys strategy is reflected in past
financial performance
Financial
Reporting10.35.b
forecast a companys future net income
and cash flow10.34.b
forecast a companys future net income
and cash flow
Financial
Reporting 10.35.c
describe the role of financial statement
analysis in assessing the credit qualityof a potential debt investment
10.34.c
describe the role of financial statement
analysis in assessing the credit qualityof a potential debt investment
Financial
Reporting10.35.d
describe the use of financial statement
analysis in screening for potential equity
investments
10.34.d
describe the use of financial statement
analysis in screening for potential equity
investments
Financial
Reporting10.35.e
explain appropriate analyst adjustments
to a companys financial statements to
facilitate comparison with another
company
10.34.e
explain appropriate analyst adjustments
to a companys financial statements to
facilitate comparison with another
company
Corporate
Finance11.36.a
describe the capital budgeting process,
including the typical steps of the
process, and distinguish among thevarious categories of capital projects
11.35.adescribe the capital budgeting process
and distinguish among the variouscategories of capital projects
Wording
Change
Corporate
Finance11.36.b
describe the basic principles of capital
budgeting, including cash flow
estimation
11.35.b describe the basic principles of capital
budgeting
Wording
Change
Corporate
Finance11.36.c
explain how the evaluation and
selection of capital projects is affected
by mutually exclusive projects, project
sequencing, and capital rationing
11.35.c
explain how the evaluation and
selection of capital projects is affected
by mutually exclusive projects, project
sequencing, and capital rationing
Corporate
Finance11.36.d
calculate and interpret the results using
each of the following methods to
evaluate a single capital project: netpresent value (NPV), internal rate of
return (IRR), payback period,
discounted payback period, and
profitability index (PI)
11.35.dcalculate and interpret net presentvalue (NPV), internal rate of return
(IRR), payback period, discounted
payback period, and profitability index
(PI) of a single capital project
Wording
Change
Corporate
Finance11.36.e
explain the NPV profile, compare the
NPV and IRR methods when evaluating
independent and mutually exclusive
projects, and describe the problems
associated with each of the evaluation
methods
11.35.e
explain the NPV profile, compare the
NPV and IRR methods when evaluating
independent and mutually exclusive
projects, and describe the problems
associated with each of the evaluation
methods
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Corporate
Finance11.36.f
describe expected relations among an
investments NPV, company value, and
share price
11.35.f
describe expected relations among an
investments NPV, company value, and
share price
Corporate
Finance11.37.a
calculate and interpret the weighted
average cost of capital (WACC) of a
company
11.36.a
calculate and interpret the weighted
average cost of capital (WACC) of a
company
Corporate
Finance11.37.b
describe how taxes affect the cost of
capital from different capital sources11.36.b
describe how taxes affect the cost of
capital from different capital sources
Corporate
Finance11.37.c
explain alternative methods of
calculating the weights used in the
WACC, including the use of the
companys target capital structure
11.36.c
describe the use of target capital
structure in estimating WACC and how
target capital structure weights may be
determined
Wording
Change
Corporate
Finance11.37.d
explain how the marginal cost of capital
and the investment opportunity
schedule are used to determine the
optimal capital budget
11.36.d
explain how the marginal cost of capital
and the investment opportunity
schedule are used to determine the
optimal capital budget
Corporate
Finance11.37.e
explain the marginal cost of capitals
role in determining the net present
value of a project
11.36.e
explain the marginal cost of capitals
role in determining the net present
value of a project
Corporate
Finance11.37.f
calculate and interpret the cost of debt
capital using the yield-to-maturity
approach and the debt-rating approach
11.36.f
calculate and interpret the cost of debt
capital using the yield-to-maturity
approach and the debt-rating approach
Corporate
Finance11.37.g
calculate and interpret the cost of
noncallable, nonconvertible preferred
stock
11.36.g
calculate and interpret the cost of
noncallable, nonconvertible preferred
stock
Corporate
Finance11.37.h
calculate and interpret the cost of
equity capital using the capital asset
pricing model approach, the dividend
discount model approach, and the bond-
yield-plus risk-premium approach
11.36.h
calculate and interpret the cost of
equity capital using the capital asset
pricing
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