[FAR_SUCKS]

I’m working through Becker’s FAR selfstudy, and I’m really struggling understanding some of the SIM questions. By that I mean that I have a hard time understanding what the question is asking for.

For example,

in one SIM on defined benefit pension plans, it gives the following info related to the PBO and assets:

12/31/Y3 PBO: 840,000
12/31/Y4 PBO: 870,000
12/31/Y3 FV plan assets: 920,000
12/31/Y4 FV plan assets: 975,000

and then question verbatim says: ‘ What is the classification and amount of the Year 4 funded status of Ridge Company’s pension plan?’

How am I supposed to know if they want the funding status at the beginning of Y4 or the end of Y4??? the correct answer is end of Y4 (105,000 overfunded)

Is anyone else having issues like this with Becker SIMS? are the sims on the actual exam clearer?

I’ve had this issue since I started F1 and I’m now in F8 and still have issues, so I’m getting a little bit worried.

Thanks!

[Anonymous]

I agree that many Becker sims I've worked through have had unclear instructions. I don't think I've ever felt that way during the actual exams though, so personally I think it's just a Becker issue.

[FAR_SUCKS]

thanks for the reply. I see you crushed FAR so thats encouraging to hear.

[jgod]

Half the battle in these questions is picking up on all the little queues they give.

When they ask for the classification of the funded status, that's a tip off that you're dealing with financial reporting issues. The financial reporting is done at the period end.

Also for defined benefit plans i don't think I've ever seen a problem that doesn't ask for year end amounts.

AUD- 99 (6/8/16)
REG- TBD
FAR- TBD
BEC- TBD

[Author]

Replies