Level I Curriculum: What Changed for 2023

Extensive work through practice analysis and curriculum development has resulted in major revisions at Level I for 2023. These changes,
coupled with the updates made for the 2022 cycle, aim to better equip candidates with the knowledge and skills that reflect current investment
practice.

And by leveraging the experience the Learning Ecosystem (LES) platform can provide, changes for 2023 also keep learning technology and
adult learners’ needs central, especially in the Derivatives and Alternative Investments topic areas. By revising the material to a learning module
structure—designed with an “LES-first” mindset—we have aligned the content with learning best practice to meet candidates' needs. Each
module is designed to be completed in an evening of study, and formative assessments are included throughout. The modules incorporate more
visuals, spreadsheets, and realistic content, plus expert demonstrations followed by opportunities for candidates to practice the skills.

Refer to the key and tables below to learn what else has changed in Level I of the CFA Program curriculum for 2023.

Interested to compare these changes against updates that were made last year? Visit Level I Curriculum: What Changed for 2022.

Key to Changes

 Update: Smallest degree of change. Data, examples, and references were brought up to date. 
 Revision: Medium degree of change. Content was adjusted and improved for clarity or accuracy. 
 Major Revision: Largest degree of change. Content was rewritten or significantly altered to reflect new guidance or advances in the
industry.
 Added: New area of content introduced to the curriculum. 
 Dropped: Reading no longer appears in the curriculum. Material was no longer relevant or was better captured elsewhere. 
 No Changes: Content remains the same as in the 2022 curriculum.
Quantitative Methods

Reading Change Summary of Changes

The Time Value of Money No Changes
Organizing, Visualizing, and Describing Data No Changes
Probability Concepts No Changes  
Common Probability Distributions No Changes  
Sampling and Estimation No Changes  
Hypothesis Testing No Changes  
Introduction to Linear Regression No Changes  

Economics

Reading Change Summary of Changes

Topics in Demand and Supply Analysis No
Changes
The Firm and Market Structures No
Changes
Aggregate Output, Prices, and Economic No  
Growth Changes
Understanding Business Cycles No  
Changes
Monetary and Fiscal Policy No
Changes
Introduction to Geopolitics Added New learning module introducing geopolitics and explaining its importance for investment
management
International Trade and Capital Flows No
Changes
Currency Exchange Rates No
Changes
Financial Statement Analysis

Reading Change Summary of Changes

Introduction to Financial Statement Analysis No Changes
Financial Reporting Standards No Changes
Understanding Income Statements No Changes
Understanding Balance Sheets No Changes
Understanding Cash Flow Statements No Changes
Financial Analysis Techniques No Changes
Inventories No Changes
Long-Lived Assets No Changes
Income Taxes No Changes
Non-Current (Long-Term) Liabilities No Changes  
Financial Reporting Quality No Changes
Applications of Financial Statement Analysis No Changes

Corporate Issuers

Reading Change Summary of Changes

Corporate Structures and Ownership Added New learning module introducing business structures important for investment
management
Introduction to Corporate Governance and Revision Revisions to ESG terms to align with evolving practice
Other ESG Considerations New EORQs
Business Models Added New learning module examining key aspects of a business and ways an analyst can
evaluate business models to support financial modeling
Capital Investments (Previously Uses of Update Revised content to increase relevance for external analysts valuing a company
Capital)
 Working Capital (Previously Sources of Update Revised content to increase relevance for external analysts valuing a company
Capital)
Cost of Capital-Foundational Topics No Changes
Reading Change Summary of Changes
Capital Structure Major Revised content to reduce existing theoretical content and develop a more practical
Revision focus to support valuation exercises
Measures of Leverage No Changes

Equity Investments

Reading Change Summary of Changes

Market Organization and Structure No Changes
Security Market Indexes No Changes
Market Efficiency No Changes  
Overview of Equity Securities No Changes
Introduction to Industry and Company Analysis No Changes  
Equity Valuation: Concepts and Basic Tools No Changes

Fixed Income

Reading Change Summary of Changes

Fixed-Income Securities: Defining Elements No Changes  
Fixed-Income Markets: Issuance, Trading, and Funding No Changes  
Introduction to Fixed-Income Valuation No Changes  
Introduction to Asset-Backed Securities No Changes
Understanding Fixed-Income Risk and Return No Changes  
Fundamentals of Credit Analysis No Changes  

Derivatives

Readings Change Summary of Changes

Derivative Markets and Instruments and Basics of Derivative Revision Readings revised as learning modules into the following topics:
Pricing and Valuation 
Readings Change Summary of Changes

 Derivative instrument and derivative market features

 Forward commitment and contingent claim features and
instruments
 Derivative benefits, risks, and issuer and investor uses
 Arbitrage, replication, and the cost of carry in pricing derivatives
 Pricing and valuation of forward contracts and for an underlying
with varying maturities
 Pricing and valuation of futures contracts
 Pricing and valuation of interest rate and other swaps
 Pricing and valuation of options
 Option replication using put-call parity
 Valuing a derivative using a one-period binomial model

Alternative Investments

Reading Change Summary of Changes

Introduction to Alternative Revision Previous reading streamlined and revised into learning modules covering the following topics, with no
Investments change to the content coverage:

 Categories, Characteristics, and Compensation Structures of Alternative Investments

 Performance Calculation and Appraisal of Alternative Investments
 Private Capital, Real Estate, Infrastructure, Natural Resources, and Hedge Funds

Portfolio Management
Reading Change Summary of Changes
Portfolio Management: An Overview No Changes
Portfolio Risk and Return: Part I Update Content added to support risk management for international investments with currency risk
Portfolio Risk and Return: Part II Update New EORQs
Basics of Portfolio Planning and Construction No Changes
The Behavioral Biases of Individuals No Changes
Introduction to Risk Management Update Content added to support risk management for international investments with currency risk
Technical Analysis No Changes
Fintech in Investment Management Update Updated content to reflect recent evolution in decentralized finance (DeFi) and blockchain

Ethical and Professional Standards

Reading Change Summary of Changes

Ethics and Trust in the Investment Profession No Changes  

Code of Ethics and Standards of Professional Conduct No Changes

Guidance for Standards I–VII No Changes

Introduction to the Global Investment Performance Standards (GIPS) No Changes  

Ethics Application No Changes