Financial Reporting Standard-setting Bodies | CFA Level 1 - AnalystPrep (2024)

FAQs

What is the standard-setting body of financial reporting? ›

The IASB is the standard-setting body that is responsible for issuing the international financial reporting standards. The FASB issues the US generally accepted accounting principles (GAAP).

In most schools, FSA is considered a tough course or one of the hardest course. The course can be a joke if you just manually calculate accounting ratios (e.g. inventory turnover, debt-to-equity). However, good FSA courses will…

Standard-setting bodies like the IASB and FASB are professional not-for-profit organizations that establish financial reporting standards. They typically share certain desirable attributes: High professional standards, including standards of ethics and confidentiality.

Financial reporting standards provide principles for preparing financial reports and determine the types and amounts of information that must be provided to users of financial statements, including investors and creditors, so that they may make informed decisions.

The International Accounting Standards Board (IASB) is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs). The IASB operates under the oversight of the IFRS Foundation.

Financial Reporting Framework in the Philippines. Accounting standards in the Philippines are adopted by the Philippines Financial Reporting Standards Council (PFRSC) and approved by the Securities and Exchange Commission (SEC).

Is CFA level 1 hard? Yes, the first level of the CFA exam is the hardest of the three levels by pass rate. Historically, only 41% of test takers pass.

Considering their pass rates—approximately 50% for the CPA exams, around 13.5% for candidates completing all three levels of the CFA exams, and roughly 70% for the Florida bar—statistics would suggest that the CFA credential is in fact the hardest.

It's long been known as the hardest qualification in finance. A rewarding, if somewhat daunting undertaking. But 60 years since candidates sat the first exams, the CFA Program has changed.

Standard is based on predetermined level of competency. For example, the pass-mark may be set at 60% ahead of the exam. These combine both norm- and criterion- referenced standards. For example, we might set a standard at 40%, but adjust it by mean difference across tests.

What is the purpose of standard-setting? ›

Standard setting refers to the methodology used to identify performance standards on tests of proficiency. The results from standard setting studies are critical for supporting the use of many types of tests.

Standard-setting studies are typically performed using focus groups of 5-15 subject-matter-experts that represent key stakeholders for the test. For example, in setting cut scores for educational testing, experts might be instructors familiar with the capabilities of the student population for the test.

You won't be allowed to carry the formula sheet to the exam. Nevertheless, it is a valuable resource for preparing for the CFA exam.

International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world.

Financial accounting standard-setting in the United States can be best described as a social and an organized process which might reflect the political actions of various interested groups of different users.

The Financial Accounting Standards Board (FASB) is a private standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest.

The three main types of financial statements are the balance sheet, the income statement, and the cash flow statement. These three statements together show the assets and liabilities of a business, its revenues, and costs, as well as its cash flows from operating, investing, and financing activities.