After 7 weeks of dedicated work we are now exactly half way through the curriculum. The second half of the curriculum is spread over 8 weeks, so if you have managed to keep pace so far, there is no reason to fear the upcoming challenge. Last week was a pretty heavy session, unfortunately the upcoming week is going to be roughly the same workload, before we ease into some shorter study sessions.
The week to come
This week we are covering the remaining two FRA study sessions (9 and 10). The first study session is divided into 4 readings (Inventories, Long-Lived Assets, Income Taxes and Non-current (long-term) Liabilities). Each reading cover the financial reporting treatment for some of the key assets and liabilities on a standard corporate balance sheet. The Income Taxes reading deals with Deferred Taxes (the difference between taxes reported on the tax returns vs. financial statements).
The second study session is divided into 3 short readings (Financial Reporting Quality: Red Flags and Accounting Warning Signs, Accounting Shenanigans on the Cash Flow Statement and Financial Statement Analysis: Applications) related to the analysis of financial reporting quality and the general application of financial statement analysis.
The 2 study sessions combined cover some 256 pages, and there are 120 end of chapter questions to get through (roughly 3 hours worth). This is by any measure the most intensive weekly challenge remaining in the program, so if you can manage to hang on throughout this week, then it is all going to be downhill from here.
- As always please ensure that you attempt the end of chapter questions as the first thing when starting each reading. As you answer the questions make a list of the most difficult ones (especially whenever you resort to guessing). Review your answers thoroughly (particularly those that you got wrong) and add these questions to your list as well.
- Also please ensure that you write down and answer the LOS on flash cards as you work your way through each reading (note the relevant page number on the flipside of the flashcard along with the answer). Also create similar flashcards with any key concepts and formulae that you discover in the readings. The combined effort of question practice and LOS statement “hunting” will ensure that you are focused on seeking out the most important information as you progress through each reading.
- Lastly as you wrap up each reading attempt only the challenging end of chapter questions from your list. Remove those answers that you can now confidently answer correctly from the list, and if there are any questions left read the explanations thoroughly before you redo them. Continue this process until you have mastered all of the end of chapter questions in the reading.
Good luck this week and talk soon,