International Standards permit upward revaluation of assets if the fair value of the assets increases. Typically the new value is based on an appraisal.
Investment Objectives
The two main investment objectives – risk and return – are intertwined.
A Framework for Ethical Decision Making
An effective framework for ethical decision-making should allow investment professionals to examine their choices in the context of conflicting interests.
Ethical Vs Legal Standards
Laws often codify ethical behavior, but legal and ethical conduct are not always the same.
Challenges to Ethical Behavior
There are several challenges that can make ethical behavior difficult. The first of these is overconfidence. Most people believe they are more ethical than average, even though this cannot be true in aggregate. Overconfidence can lead to faulty decision-making, and a failure to consider all of the relevant inputs to analyze a situation. A second…
What is Earnings Quality
Earnings quality is in the eye of the beholder. It has variously been defined as :
• Earnings that reflect underlying economic effects.
• Earnings that are better estimates of cash flows.
• Earnings that are more conservative (lower).
• Earnings that are predictable.
Professionalism in Investment Management
As a relatively young profession, investment management has not established the same level of professionalism as other industries. Further, because of the interconnected global nature of the profession, local regulatory bodies have less influence and can often issue conflicting laws. Recognizing these shortcomings, CFA Institute has striven to become an advocate for best practices worldwide….
Ethics and Trust in the Investment Profession
“Ethics and Trust in the Investment Profession” is a reading included in the Level I curriculum for the CFA(R) Program.
The Need for High Ethical Standards in Investment Management
Not everyone engaged in investment management is a professional – they have not undergone specific training or become members of a professional body.
How Professions Establish Trust
There are several ways professions go about building trust among their customers and society at large.