[Q2] FAR Study Group 2014 - Page 147

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    Topic
  • February 6, 2014 at 9:58 pm #183478
    jeff
    Keymaster

    I’ve had a few requests for April/May Study Groups…March will be here before you know it.

    In order to take an early April exam, you should begin studying…now. 🙂

    Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

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  • March 31, 2014 at 2:47 am #562706
    Anonymous
    Inactive

    I'm confused about the “Accounting Changes” part of the income statement. What do you mean by that? Disclosures? I was thinking

    Income from Continuing Ops

    Income from Discontinued Ops

    Income from Extraordinary Items (Not allowed in IFRS)

    Net Income

    March 31, 2014 at 2:50 am #562707
    SpartanCPA
    Member

    Yes, sorry! It was just part of a mnemonic lol.

    AUD - 01/18/14 - 81
    BEC - 05/29/14 - 85
    FAR - 07/18/14 - 81
    REG - 11/18/14 - 80

    Becker CPA Review
    NINJA Audio
    Michigan State University

    March 31, 2014 at 2:50 am #562708
    jrosen92770
    Participant

    Accounting changes impact retained earnings.

    BEC - 5/26/2013 75
    REG - 8/31/2013 82
    AUD - 11/24/2013 74, 2/9/2014 92
    FAR - 5/25/2014 85

    NY CPA

    March 31, 2014 at 2:52 am #562709
    SpartanCPA
    Member

    How should unrealized gains and losses be amortized for pensions?

    AUD - 01/18/14 - 81
    BEC - 05/29/14 - 85
    FAR - 07/18/14 - 81
    REG - 11/18/14 - 80

    Becker CPA Review
    NINJA Audio
    Michigan State University

    March 31, 2014 at 2:54 am #562710
    jrosen92770
    Participant

    CPAMomma – What do you have for the constraints, not seeing in Becker.

    BEC - 5/26/2013 75
    REG - 8/31/2013 82
    AUD - 11/24/2013 74, 2/9/2014 92
    FAR - 5/25/2014 85

    NY CPA

    March 31, 2014 at 2:56 am #562711
    Anonymous
    Inactive

    The 2 primary constraints are

    Materiality

    Cost vs Benefit

    The 2 secondary constraints are

    Comparability (To compare against other companies)

    Consistency (Compare from year to year)

    March 31, 2014 at 2:59 am #562712
    jrosen92770
    Participant

    Thanks CPAMomma

    BEC - 5/26/2013 75
    REG - 8/31/2013 82
    AUD - 11/24/2013 74, 2/9/2014 92
    FAR - 5/25/2014 85

    NY CPA

    March 31, 2014 at 3:00 am #562713
    Anonymous
    Inactive

    Unrealized gains/losses for pensions is part of the calculation for pension expense, right?

    SIRAGE

    Service Cost

    + Interest Expense

    -Return on plan assets

    -/+ Gains/Losses

    -/+ amortization of prior service cost

    March 31, 2014 at 3:02 am #562714
    Anonymous
    Inactive

    How does a donee record donated property?

    March 31, 2014 at 3:03 am #562715
    jrosen92770
    Participant

    As an asset and gain – non reciprocal transfer.

    BEC - 5/26/2013 75
    REG - 8/31/2013 82
    AUD - 11/24/2013 74, 2/9/2014 92
    FAR - 5/25/2014 85

    NY CPA

    March 31, 2014 at 3:04 am #562716
    SpartanCPA
    Member

    Yes, they are a part of the calculation for pension expense. However, to calculate the amount that is amortized into pension expense, you use the corridor approach.

    10% of the greater of the PBO or Market Value at beginning

    – Gain/Loss

    = Excess / Average remaining years

    = Amount amortized into pension expense

    AUD - 01/18/14 - 81
    BEC - 05/29/14 - 85
    FAR - 07/18/14 - 81
    REG - 11/18/14 - 80

    Becker CPA Review
    NINJA Audio
    Michigan State University

    March 31, 2014 at 3:04 am #562717
    jrosen92770
    Participant

    Curious to the answer for pensions

    BEC - 5/26/2013 75
    REG - 8/31/2013 82
    AUD - 11/24/2013 74, 2/9/2014 92
    FAR - 5/25/2014 85

    NY CPA

    March 31, 2014 at 3:12 am #562718
    Anonymous
    Inactive

    @JRosen–Wiley says it's recorded as Asset and Revenue at Fair Value (including any costs to get the property to it's intended use). A gain would be recognized when it was sold.

    March 31, 2014 at 3:13 am #562719
    Anonymous
    Inactive

    @Spartan–Do you have a problem with that info in it? I completely forgot about the calculation and need to practice it.

    March 31, 2014 at 3:18 am #562720
    Anonymous
    Inactive

    In which of the following situations is the units-of-production method of depreciation most appropriate?

    A. An asset's service potential declines with use

    B An Assets's service potential declines with the passage of time

    C An asset is subject to rapid obsolescence

    D. An asset incurs increasing repairs and maintenance with use

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