For any of you studying for the CFA® (Chartered Financial Analyst) exams, overcoming the material is only half the fight. It’s also critical to know the CFAI’s rules of governance and other guidelines, including your CFA Calculator Policy. It’s one of the very few tools you can bring into the exam room, and the Institute has some very precise rules about which calculators are allowed and how they’re used.
In this blog, let’s take a detailed look at the CFA calculator policy:
- Which calculators are allowed
- Guidelines for the use of calculators during the examination
- Fool-proof your preparation and prevent calculator troubles
- FAQs related to calculators
Table of Contents
Why is there a CFA Calculator Policy?
Financial analysis frequently requires complex time and value-of-money (TVM) calculations, cash analysis or other mathematical manipulations. Because we want to make sure that everyone has the same opportunity and to help to ensure the integrity of the exam, the CFA Institute limits what specific calculators we’re allowed to use.
Major objectives of the policy include;
- Uniformity: All have a great commonality of tools in use.
- Fairness: Not technology biased.
- Closer to home Security: Minimize the chance of cheating by prohibiting programmable or internet-enabled tools.
Approved Calculators for CFA Exams
Below are the only two calculators sanctioned for use on all levels the CFA examination:
- Texas Instruments BA II Plus
This includes:
Texas Instruments BA II Plus (common)
Texas Instruments BA II Plus Professional
When students first start using the BA II Plus Professional, they may be puzzled by its abstract design, but once they learn how to use the buttons and familiarize themselves with the calculator, they actually enjoy using it.
Key Features:
- Time Value of Money functions
- NPV and IRR and Cash flow Analysis
- Depreciation schedules
- Bond calculations
- Amortization schedules
- Hewlett Packard 12C
This includes:
- Hewlett Packard 12C
- Hewlett Packard 12C Platinum
- Hewlett Packard 25th Anniversary Limited Edition 12C Business Calculator
- Hewlett Packard 12C Prestige
Key Features:
- RPN (Reverse Polish Notation) (some models)
- TVM, NPV, IRR and the pricing of bonds
- Functions for statistical and regression analysis
Important:
Other models, including complex financial calculators or scientific calculators, are prohibited. Calculators that are programmable or graphic are not allowed.
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Rules for Calculator Usage During Exam
The CFA Institute has a number of rules surrounding calculators:
- Extra Calculator: Candidates could take two calculators, should one breakdown.
- Battery Backup: Come with extras batteries if you can, the test centre may not have any to offer.
- No Sharing: No sharing of calculators, batteries, or any electronic devices during the exam.
- Quiet Performance: Your calculator should work silently without making any distracting noise.
- Resetting Memory: CFA Institute advises that you reset the memory prior to the exam day to avoid any complications on that day.
- Calculator Cover: You can carry the calculator cover/case.
If you break any of the calculator policy rules at your ACT exam, you may be subject to harsh penalties, such as having your exam disallowed or being disciplined.
Tips to Avoid Calculator Problems
- Start practicing early: Become comfortable and efficient with your approved calculator well before the exam day. You want to be able to use it intuitively.
- Bring 2 Calculators: I always have a second one in your bag. It’s a tiny insurance policy against technical snafus.
- Get New Batteries: Put in new batteries a couple days before just to check they are fresh.
- Know the Workarounds: Knowing how to work functions such as IRR, NPV, amortization, and depreciation will save you crucial time on the exam.
- Don’t Depend on Test Centre Support: If your calculator dies during the exam and you don’t have a backup, the proctor will not assist you.
- Pack the Right Model: Make sure you have the right model of calculator (there are 2 approved models, just double check your calculator is one of the two). Confusing another model would be disastrous.
What Happens If You Bring a Non-Compliant Calculator?
If you try to take a non-approved calculator into the room, the proctors can:
- Take Away the Calculator: You will have to finish the test without it.
- You may File an Incident Report, which may result in disciplinary procedure.
- Get Your Exam Invalidated: In more severe cases, your entire exam could be invalidated.
- Simply put: don’t risk it. Check your equipment before going to the exam.
FAQs on CFA Calculator Policy
Q1: The Texas Instruments BA II Plus Professional Can the be used in place of the regular BA II Plus?
Yes, the non-professional, and professional BA II Plus are accepted!
Q2: May I use a financial calculator which is not one of the approved models?
No, it doesn’t, even if they do basically the same thing – it has to lend either from the Texas Instruments BA II Plus (standard or Professional) series, or from the Hewlett Packard 12C series.
Q3: Can I bring a new, packaged calculator to the test?
You can, but I would recommend opening it up and getting used to it before this lot. Maybe the new calculator is sealed before you make any setting.
Q4: Can I take supplementary batteries with me?
Yes, you can pack extra batteries. But if changing batteries during the exam is an inconvenience, it’s going to eat into the exam time.
Q5: What happens if my calculator malfunctions while taking the exam?
If you do not have a backup, then you will have to take the exam without it. We recommend that candidates use a second calculator.
Conclusion
When the testing room ramps up for CFA exams, your calculator is your best friend. But only if you understand and adhere to the CFA Calculator Policy.
Make sure you:
- Do not bring anything other than an authorised calculator.
- Also, bring spares and extra batteries.
- Familiarize yourself with all the required functions.
- Obey ALL calculator rules to avoid unneeded stress on test day.
Some care about these little things could head off a big problem.” Passing the CFA exam is a process of intelligent preparation—and this applies to even simple rules like the Calculator Policy.
Good luck on your CFA journey.
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