FSA Flashcards
What’s the 3 types of Corporate Investment Categories and their rough % of Ownership?
- Investment in Financial Assets
- Investment in Associates (Equity Method)
- Business Combinations (Acquisition Method)
What’s the 3 types of Investment in Financial Assets? How are each treated on the B/S and I/S?
- FVPL
- FVOCI
- Amortized Cost
How do you account for Investment in Associates (Equity Method) on the B/S and I/S?
B/S: cost + %earnings - %div
I/S: %earnings
How do you account for Business Combinations (Acquisition Method) on the B/S and I/S?
B/S: Both companies combined
I/S: %earnings
What are the 2 types of Foreign Currency Translations? How do you determine each?
- Temporal Method (Remeasurement)
- Current Rate Method (Translation)
For the temporal method, which rates (current, avg, historical, mixed) are utilized?
For the current rate method, which rates (current, avg, historical, mixed) are utilized?
What’s the Basel III weighting requirements for common equity tier I, tier I, and total capital (tier 1 and 2)?
4.5% Common Equity Tier I
6% Tier I
8.5 Total Capital Tier I & Tier II
What’s the Liquidity Coverage Ratio (LCR) formula?
What’s the Net Stable Funding Ratio (NSFR) formula?
What’s the Underwriting Loss Ratio formula?
What’s the Underwriting Expense Ratio formula?
What’s the Combined Ratio formula?
What’s the Dividend to Policyholiders Ratio formula?
What’s the Combined Ratio After Dividends (CRAD) formula?
In the Beneish model, what M-Score value could lead to possible earnings manipulation?
M-score > -1.78
What’s the 3-step DuPont equation and 5-step DuPont equation?
What does it mean when the proportion of capex to proportion of assets is > 1?
The firm is growing the segment by allocating more resources.
