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2011

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
CFA® Level 1 Curriculum Changes
Updates for the June 2011 CFA® Level 1 Exam
CFA® is a Registered Trademark of the CFA Institute.
Finance Grid Ltd. U.K. is an independent Financial Training Provider.

Study Session 1 Ethical and Professional Standards:

Reading 1: No Change
Reading 2: No Change
Reading 3: No Change
Reading 4: Minor change, now there are 9 provisions of GIPS

Study Session 2 Quantitative Methods – Basic Concepts:

Reading 5: No Change
Reading 6: No Change, except previous LOS a) has been split into two parts; a) and b)
Reading 7: No Change
Reading 8: No Change

Study Session 3 Quantitative Methods – Applications:

Reading 9: Only 1 new LOS: relating to the definition, calculation and interpretation of tracking error
Reading 10: No Change
Reading 11: No Change
Reading 12: Technical Analysis Chapter has total new content with focus on actual use of Technical Analysis
Tools, Charts and Theories. Previous Reading and LOS statements are almost entirely to be
discarded. A new focus is on applications and real use of tools and techniques, chart patterns,
trend lines, study of cycles, wave theory and Fibonacci Numbers in market prediction. This goes
alongside with commonly used technical analysis indicators as well.

Study Session 4 Microeconomic Analysis:

Reading 13: No Change


Reading 14: No Change
Reading 15: No Change
Reading 16: No Change
Reading 17: No Change

Study Session 5 Market Structure and Macroeconomic Analysis:

Reading 18: No Change


Reading 19: No Change
Reading 20: 1 new LOS: relating to a comparison and contrast between Perfect Competition and
Monopolistic Competition
Reading 21: No Change
Reading 22: No Change
Reading 23: No Change

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Study Session 6 Monetary and Fiscal Economics:

Reading 24: No Change


Reading 25: No Change
Reading 26: No Change
Reading 27: No Change
Reading 28: No Change

Study Session 7 Financial Reporting and Analysis – An Introduction:

Reading 29: No Change


Reading 30: No Change
Reading 31: No Change

Study Session 8 Financial Reporting and Analysis – Income Statement, Balance Sheet, and Cash Flow
Statement:

Reading 32: No Change


Reading 33: No Change
Reading 34: No Change (Minor wording change in 1 LOS, which does not change learning approach or
content)
Reading 35: No Change

Study Session 9 Financial Reporting and Analysis – Inventories, Long-Lived Assets, Income Taxes, and Non-
Current Liabilities
Important: Major reorganisation in the structure of the chapter
Reading 36: Major Reorganization in the structure of the chapter, and new LOS related to Periodic versus
Perpetual Inventory Valuation. 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; defined contribution and defined benefit
pension plans have been included, as well as de-recognition of debt. Other LOS statements
have been simplified.

Study Session 10 Financial Reporting and Analysis – Applications and International Convergence

Reading 40: 2 LOS Statements have been removed; the specific accounting warning signs for Enron and
Sunbeam have been removed, and only the general accounting warning signs therefore
become the focus.
Reading 41: No Change
Reading 42: No Change
Reading 43: No Change

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Study Session 11 Corporate Finance

Important: 2 New Readings; Measures of Leverage, and Dividends and Share Repurchases Basics
Reading 44: No Change
Reading 45: No Change
Reading 46: This is a new reading on ‘Measures of Leverage’.
Reading 47: This is a new reading on ‘Dividends and Share Repurchases – Basics’.
Reading 48: No Change; This reading on ‘Working Capital’ was numbered ‘46’ in 2010
Reading 49: No Change; This reading on ‘Financial Statement Analysis’ was number ‘47’ in 2010
Reading 50: 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. There are 4 chapters in 2011,
instead of 3 chapters in 2011
Reading 51: This is essentially a new reading with slightly different focus than before.
Reading 52: This is essentially a new reading; however retains some core concepts from previous reading
50.
Reading 53: Again, this is a new reading which however, retains the core concepts from previous reading
51. LOS below;
Reading 54: New Reading.

Study Session 13 Market Organisation, Market Indices and Market Efficiency


Important: This study session has one less reading (3) instead of (4) previously. The content covers
similar topics however the content has been re-authored and vastly reorganised, with new
focus areas.
Reading 55: New Reading, however it has a limited correspondence with previous reading 52.
Reading 56: New Reading, however roughly corresponds to previous reading 53.
Reading 57: This is a new reading; however it corresponds roughly to previous readings (54 and 55 from
2010).

Study Session 14 Equity Analysis and Valuation


Important: This study session has been reorganised completely and the content has been re-authored.
There is one reading less than last year (3 instead of 4).
Reading 58: New Reading.
Reading 59: Reorganized, hence we would say, a new reading, but it has rough correspondence with
previous readings number (57 plus 58).
Reading 60: Reorganised, hence we would again consider it a new reading. It has broad correspondence
with the content in previous readings (56 plus 59).

Study Session 15 Fixed Income Basic Concepts:

Reading 61: No Change; this reading on ‘Features of Debt Securities’ was number ‘60’ previously
Reading 62: Minor Change. The last LOS (LOS ‘O’), requires an additional concept relating to the description
of ‘The origin of sovereign risk’. The reading otherwise exactly corresponds to previous reading
‘61’
Reading 63: No Change; this reading was previously number ‘62’ in 2010.
Reading 64: No Change; this reading was previously number ‘63’ in 2010
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Study Session 16 Fixed Income - Analysis and Valuation:

Reading 65: No Change. It was previously number ‘64’ in 2010


Reading 66: No Change. It was previously number ‘65’ in 2010
Reading 67: 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, the previous LOS (d) has been split up
into two parts (d) and (e) to separately focus, and clarify the LOS.

Study Session 17 Derivatives

Reading 68: No Change, was previously number ‘67’ in 2010


Reading 69: No Change, was previously number ‘68’ in 2010
Reading 70: Very Minor Change; the last LOS adds the description of characteristics of T-Bill futures
contract. This reading was previously number ‘69’ in 2010
Reading 71: Minor Change. First LOS requires a clear description of a Call Option and a Put Option. The
remainder constitute slight re-wordings or splitting up of LOS statements for clarity. These do
not constitute a change. The reading was previously number ‘70’ in 2010.
Reading 72: No Change, was previously number ‘71’ in 2010
Reading 73: No Change, was previously number ‘72’ in 2010

Study Session 18 Alternative Investments

Reading 74: Very minor change; The LOS related to Hedge Funds is stated in terms of discuss rather than
define, as was previously stated for 2010, which implies a slightly broader focus in 2011 on this
LOS. Also in the same LOS, the candidate is required to describe the various classifications of
hedge funds. This reading was previously number ‘73’ in 2010.
Reading 75: No Change, was previously number ‘74’ in 2010

Summary: There are a total of 75 readings in the CFA Level 1 curriculum for 2011, whereas the total
number of readings was 74 in 2010, for the CFA Level 1 Exam

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