FAR Study Group – Q1 2018 - Page 7

@anyatver – besides the revenue recognition, any other changes that you will pay attention to?

Hi All,

I am an international student who is scheduled to sit for FAR on February 20. Just to feel comfortable, I first listen to BECKER lectures, took all MCQs and notes so far. I wanted to go over the material one more time later. Right now I have completed all modules until F8-3 and have not touched the simulations, yet. All I wanted to do is to be familiar with the subjects. I wanted to do the simulation during my review so I could master my subjects and feel a little bit comfortable with them.

Here is the question: do you think it is better to go over for profits (BECKER F1-F8 (untilM2) first and do the nonprofits later or just do it all and start my comprehensive review with simulations? As I said, I am an international student and it takes time to fully comprehend subject for me.

@Gabs, I don't have Wiley only Gleim. Which I use for MC only. They give more thorough explanations than Becker I've found, which is helpful. But since I do not have Wiley I am speaking candidly.

Hi All,

Quick question on pensions on this recent question-

The following information pertains to Lee Corp.’s defined benefit pension plan for the current year:

Service cost $160,000
Actual and expected gain on plan assets 35,000
Unexpected loss on plan assets related to
a disposal of a subsidiary 40,000
Amortization of prior service cost 5,000
Annual interest on pension obligation 50,000

What amount should Lee report as a separate line item titled “net periodic pension cost” in its current year-end income statement?

A.
$250,000

B.
$220,000

Incorrect
$180,000

D.
$20,000

Explanation
Service cost is a component of compensation expense, not net periodic pension cost. To compute the net periodic pension cost, subtract the expected rate of return on plan assets, add the amortization of prior service cost, and add the interest cost on the pension obligation:

$(35,000) + $5,000 + $50,000 = $20,000

I chose the answer $180,000 because I believe the service cost should be factored in for periodic pension cost due to the formula of “SIRAGE.” However, the explanation says that the service cost is a factor of compensation expense and should not included for the net period pension cost. I am very confused of the answer and can someone please help me elaborate on this question? 🙁

Thank you

@itooshallpass Congrats on passing FAR. I also use Roger as my study guide. I am wondering if you have finished all of Roger's mcq and sims before your FAR exam? Are they helpful? I am planning to use 20 days to finish all of Roger's mcq and sims and maybe do some Ninja sims later.

@ash thank you, and good luck.

Preparing for Second Round of Far on January 13th. Took in early December scored a 62 –

I was curious if anyone knows what the most tested on topics for the Sims are to focus my time in those areas this weekend? Using Wiley going through the book in 200-250 page sections per a day , and doing multiple choice. Hitting the topics I didn't know well enough first and most often, going back to the stronger areas less frequently.