CFA Curriculum
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Why analysts should understand portfolio construction
Analysis of portfolio construction helps organise evidence about the combination of investments to meet investor objectives and constraints. Its scope includes the selection and weighting of investments to implement a strategy. Used properly, the concept clarifies a decision; used mechanically, it can create false confidence. Misconceptions that distort the topic Several recurring errors reduce the…
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Questions analysts should ask about LIFO inventory accounting
The useful question is not simply “what does LIFO inventory accounting mean?” It is how the concept changes analysis. The topic addresses the assumption that the latest inventory costs flow to cost of sales first, and it should ultimately support normalised, comparable information suitable for valuation, credit analysis and forecasting. Risk hidden inside the concept…
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Common errors when analysing natural resources
Analysis of natural resources helps organise evidence about assets and strategies outside traditional listed equities and conventional bonds. Its scope includes investments in energy, metals, agriculture, timberland and related assets. Used properly, the concept clarifies a decision; used mechanically, it can create false confidence. What should be compared Analysis of natural resources addresses investments in…
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How to interpret financial risk identification with confidence
Analysis of financial risk identification helps organise evidence about the identification, measurement and treatment of uncertainty. Its scope includes the recognition of market, credit, liquidity and other financial exposures. Used properly, the concept clarifies a decision; used mechanically, it can create false confidence. Misconceptions that distort the topic Several recurring errors reduce the value of…
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How to apply bond instrument features effectively
Analysts use fixed-income instrument features to develop a clearer view of the contractual cash flows, valuation and risks of debt instruments. In practical terms, the topic covers the contractual terms that determine a debt security’s cash flows, rights and risks. A disciplined approach separates a defensible conclusion from a number or rule applied without context.…
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Common errors when analysing time value of money
Analysts use time value of money to develop a clearer view of the measurement and comparison of financial values, returns and uncertainty. In practical terms, the topic covers why money available today differs in value from the same nominal amount received later. A disciplined approach separates a defensible conclusion from a number or rule applied…
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Why analysts should understand price-weighted indexes
Analysis of price-weighted indexes helps organise evidence about the analysis, trading and valuation of ownership securities. Its scope includes indexes in which higher-priced securities receive larger weights. Used properly, the concept clarifies a decision; used mechanically, it can create false confidence. Misconceptions that distort the topic Several recurring errors reduce the value of the analysis:…
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Questions analysts should ask about derivative risks
The useful question is not simply “what does derivative risks and controversies mean?” It is how the concept changes analysis. The topic addresses leverage, counterparty exposure, complexity, misuse and systemic concerns, and it should ultimately support an understood pay-off and valuation rather than leverage without control. Start with an example Consider an analyst preparing a…
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Common errors when analysing pension accounting
The topic of pensions and post-employment benefits covers the measurement and analysis of employer promises after service. It matters because it helps an analyst decide whether accounting numbers represent sustainable economic performance and financial capacity. The practical objective is not to memorise a definition in isolation, but to connect the concept to evidence, assumptions and…
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A practical guide to distributed ledger technology
The useful question is not simply “what does distributed ledger technology mean?” It is how the concept changes analysis. The topic addresses shared databases that record and validate transactions across a network, and it should ultimately support a transparent workflow that supports professional judgement rather than replacing it. Risk hidden inside the concept A reviewer…