[Mike27]

1) Can a pretty average person pass FAR using only Becker? Doing the MCQ the second time, I sometimes feel like I had memorized the answer and don’t understand the concept.

2) Pensions and OCI: To record prior service cost and pension losses, DR: OCI and CR: Pension asset/liability.

This amount is periodically amortized to I/S. I thought OCI has a “normal” credit balance. Sorry if this is a stupid question. My intermediate accounting instructor elected to skip pensions, and I’m using self study. I’d really appreciate an in-depth explanation of this topic, as Becker really doesn’t explain it well.

[musicamor]

@Mike27—yes, the average person can pass FAR using only Becker. I did not supplement with anything else and passed FAR.

To answer your second question, OCI is an equity account; therefore it does have a normal credit balance. If you're recording (amortizing) unrecognized prior service costs, you would debit OCI and credit the liability; the only time items of OCI are reclassified to the P&L is when they become recognized gains/losses. Other pension items includible in OCI are unrecognized actuarial gains/losses and unrecognized transition obligations/assets. Recognized and current items flow to the P&L as part of Net Periodic Pension Cost.

Texas CPA - licensed in 2012!!!

[jeff]

Supplementary materials are a hedge to your investment – both time and $$. If you fail … that's what you'll end up doing anyway – restudying using your course + adding supplements.

Check out the NINJA Demos to see if they are right for you: https://www.another71.com/cpa-exam-study-plan/

If you start to memorize your MCQs – get the Wiley Test Bank – a lot of people use it on here: https://www.another71.com/wiley-cpa-software/

[Author]

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