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CFA Level 1 Curriculum Updates
CFA® is a Registered Trademark of the CFA Institute. This Document has been produced by an independent financial training company – Finance Grid Limited, U.K., to facilitate students using the study notes and study guides from third party providers, including Finance Grid. This update is based on an analysis of the CFA Institute’s curriculum updates between 2010 and 2011, which are available in detail on the website of the CFA Institute: www.cfainstitute.org Please visit the CFA Institute’s website for a detailed look at the Learning Tasks set by the CFA Institute. Finance Grid Limited is not linked with the CFA Institute, and is not liable for its interpretation of the updates. www.finance-grid.com
Jeremy Sanders Finance Grid Limited, UK 1/1/2011
wave theory and Fibonacci Numbers in market prediction. a) and b) No Change No Change Study Session 3 Quantitative Methods – Applications: Reading 9: Reading 10: Reading 11: Reading 12: Only 1 new LOS: relating to the definition. Study Session 4 Microeconomic Analysis: Reading 13: Reading 14: Reading 15: Reading 16: Reading 17: No Change No Change No Change No Change No Change Study Session 5 Market Structure and Macroeconomic Analysis: Reading 18: Reading 19: Reading 20: Reading 21: Reading 22: Reading 23: No Change No Change 1 new LOS: relating to a comparison and contrast between Perfect Competition and Monopolistic Competition No Change No Change No Change 2|Page . study of cycles.CFA® Level 1 Curriculum Changes Updates for the June 2011 CFA® Level 1 Exam CFA® is a Registered Trademark of the CFA Institute. Study Session 1 Ethical and Professional Standards: Reading 1: Reading 2: Reading 3: Reading 4: No Change No Change No Change Minor change. trend lines.K. U. except previous LOS a) has been split into two parts. chart patterns. Finance Grid Ltd. A new focus is on applications and real use of tools and techniques. This goes alongside with commonly used technical analysis indicators as well. calculation and interpretation of tracking error No Change No Change Technical Analysis Chapter has total new content with focus on actual use of Technical Analysis Tools. Charts and Theories. now there are 9 provisions of GIPS Study Session 2 Quantitative Methods – Basic Concepts: Reading 5: Reading 6: Reading 7: Reading 8: No Change No Change. Previous Reading and LOS statements are almost entirely to be discarded. is an independent Financial Training Provider.
and Cash Flow Statement: Reading 32: Reading 33: Reading 34: Reading 35: No Change No Change No Change (Minor wording change in 1 LOS. Study Session 10 Financial Reporting and Analysis – Applications and International Convergence Reading 40: 2 LOS Statements have been removed.Study Session 6 Monetary and Fiscal Economics: Reading 24: Reading 25: Reading 26: Reading 27: Reading 28: No Change No Change No Change No Change No Change Study Session 7 Financial Reporting and Analysis – An Introduction: Reading 29: Reading 30: Reading 31: No Change No Change No Change Study Session 8 Financial Reporting and Analysis – Income Statement. and only the general accounting warning signs therefore become the focus. Income Taxes. which does not change learning approach or content) No Change Study Session 9 Financial Reporting and Analysis – Inventories. No Change No Change No Change Reading 41: Reading 42: Reading 43: 3|Page . and NonCurrent Liabilities Important: Major reorganisation in the structure of the chapter Reading 36: Major Reorganization in the structure of the chapter. Balance Sheet. Previous LOS on conversion between methods seems to be absent (Check in Chapter Content) Reading 37: Major Reorganization in the structure of the chapter Reading 38: No Change Reading 39: Major reorganisation in the structure of the chapter. and new LOS related to Periodic versus Perpetual Inventory Valuation. Other LOS statements have been simplified. defined contribution and defined benefit pension plans have been included. the specific accounting warning signs for Enron and Sunbeam have been removed. as well as de-recognition of debt. Long-Lived Assets.
Reading 53: Again. The content covers similar topics however the content has been re-authored and vastly reorganised. This is a new reading on ‘Dividends and Share Repurchases – Basics’. Reading 54: New Reading. This reading on ‘Financial Statement Analysis’ was number ‘47’ in 2010 No Change. however it has a limited correspondence with previous reading 52. hence we would again consider it a new reading. No Change. with new focus areas. this reading on ‘Features of Debt Securities’ was number ‘60’ previously Minor Change. Reading 59: Reorganized. Market Indices and Market Efficiency Important: This study session has one less reading (3) instead of (4) previously. this reading was previously number ‘63’ in 2010 Reading 63: Reading 64: 4|Page . a new reading. hence we would say. requires an additional concept relating to the description of ‘The origin of sovereign risk’. Reading 58: New Reading. this reading was previously number ‘62’ in 2010. There are 4 chapters in 2011. however it corresponds roughly to previous readings (54 and 55 from 2010). Reading 56: New Reading. Study Session 13 Market Organisation. The last LOS (LOS ‘O’). Measures of Leverage. retains the core concepts from previous reading 51. this is a new reading which however. and Dividends and Share Repurchases Basics No Change No Change This is a new reading on ‘Measures of Leverage’. This reading on ‘Working Capital’ was numbered ‘46’ in 2010 No Change. Reading 52: This is essentially a new reading.Study Session 11 Corporate Finance Important: Reading 44: Reading 45: Reading 46: Reading 47: Reading 48: Reading 49: Reading 50: 2 New Readings. No Change. There is one reading less than last year (3 instead of 4). Reading 57: This is a new reading. however roughly corresponds to previous reading 53. instead of 3 chapters in 2011 Reading 51: This is essentially a new reading with slightly different focus than before. It has broad correspondence with the content in previous readings (56 plus 59). Study Session 15 Fixed Income Basic Concepts: Reading 61: Reading 62: No Change. This reading on ‘Corporate Governance’ was number ‘48’ in 2010 Study Session 12 Portfolio Management Important: There has been a major revamping of this study session. LOS below. Study Session 14 Equity Analysis and Valuation Important: This study session has been reorganised completely and the content has been re-authored. Reading 55: New Reading. however retains some core concepts from previous reading 50. The reading otherwise exactly corresponds to previous reading ‘61’ No Change. Reading 60: Reorganised. but it has rough correspondence with previous readings number (57 plus 58).
was previously number ‘71’ in 2010 No Change. No Change. the candidate is required to describe the various classifications of hedge funds. The LOS related to Hedge Funds is stated in terms of discuss rather than define. was previously number ‘72’ in 2010 Reading 72: Reading 73: Study Session 18 Alternative Investments Reading 74: Very minor change. was previously number ‘67’ in 2010 No Change. for the CFA Level 1 Exam Reading 75: Summary: 5|Page . was previously number ‘68’ in 2010 Very Minor Change. as was previously stated for 2010. was previously number ‘74’ in 2010 There are a total of 75 readings in the CFA Level 1 curriculum for 2011. Also.Study Session 16 Fixed Income . These do not constitute a change. This reading was previously number ‘73’ in 2010. The reading was previously number ‘70’ in 2010. which implies a slightly broader focus in 2011 on this LOS. It was previously number ‘65’ in 2010 Minor Change: one extra LOS at the end of the reading requiring a ‘discussion on the impact of yield volatility on the interest rate risk of a bond’. Also in the same LOS. the last LOS adds the description of characteristics of T-Bill futures contract. whereas the total number of readings was 74 in 2010.Analysis and Valuation: Reading 65: Reading 66: Reading 67: No Change. It was previously number ‘64’ in 2010 No Change. The remainder constitute slight re-wordings or splitting up of LOS statements for clarity. the previous LOS (d) has been split up into two parts (d) and (e) to separately focus. This reading was previously number ‘69’ in 2010 Minor Change. No Change. First LOS requires a clear description of a Call Option and a Put Option. and clarify the LOS. Study Session 17 Derivatives Reading 68: Reading 69: Reading 70: Reading 71: No Change.