[jeff]

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

[Anonymous]

On January 1 ten years ago, Andrew Co. created a subsidiary for the purpose of buying an oil tanker depot at a cost of $1,500,000. Andrew expected to operate the depot for ten years, at which time it is legally required to dismantle the depot and remove underground storage tanks. It was estimated that it would cost $150,000 to dismantle the depot and remove the tanks at the end of the depot’s useful life. However, the actual cost to demolish and dismantle the depot and remove the tanks in the tenth year is $155,000

What amount of expense should Andrew recognize in its financial statements in year 10?

A $155,000 expense.

B $150,000 expense.

C $5,000 expense.

D None, recognized in prior years.

[Anonymous]

LOL – Oh Redsoxfan — I do try !

My Old Logins would not let me post… So i had to create a new one ..

[UHC2005]

Kenada, this came up earlier today. supercpa had a good explanation about it:

https://www.another71.com/cpa-exam-forum/topic/change-from-fifo-to-lifo-is-a-change-in-principle-or-estimate

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[Anonymous]

UHC2005 – Thank You !! 🙂

[Anonymous]

Oil tanker, answer c

[Anonymous]

C $5,000 expense. correct.

I am just curious as in my Head I started thinking that if you estimate 150,000 cost to dismantle / clear up.. would you not accrue for that cost over the life of the asset.

So it will be 150/10 = 15,000 each year.

So in Y10 would you not have the 15,000 that you are accrue for plus the 5,000 additional cost. so really your total expense would be 20,000.

[Anonymous]

PS – Does anyone have a good way to remember The Disclosures of Significant Accounting policies ?

[Anonymous]

150000 will be capitalized, added to the asset in Y1. So 15000 could have been expensed in year 10, as a part of the whole asset's depreciation if they use S/L, but they could have been using another method

[Guti]

brainfarts, if a company does not disclose their significant accounting policies, they are hiding something,so BAD AIR

B asis of Consolidation

A mortization of intangibles

D epreciation

A ccounting for recognition of profit on LT construction contracts

I nventory pricing

R ecognition of revenue from franchising or leasing

FAR-84
AUD-
REG-
BEC-

[stoleway]

@Gian

That's really great, I will add P to it …BAD AIRP

P- Policies for determining cash and cash equivalent

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[manikmehtani]

Thanks brainfarts for the explanation. One thing you told me is to treat the transaction as if it happened only with the end user (end customer) and delete the rest of the profit or cost of goods sold in the ending inventory. Now that in my mind, i feel like a super man and i can handle any questions from that topic 🙂

[Anonymous]

These two Questions have me confused from the answers Wiley gave – Its on OCI.

Which of the following are acceptable methods for reporting comprehensive income under IFRS?

I. One comprehensive income statement.

II. Two statements: an income statement and a comprehensive income statement.

III. In the statement of owners’ equity.

I, II, and III.

I only.

I and III only.

I and II only.

Answer is D but in the explanation it said “IFRS provides that comprehensive income may be presented in either one statement or in two statements. (US GAAP allows the presentation in all three ways.)” – Huh ? I thought there are only two for GAAP…

………………………………………………………….

Comprehensive income can be disclosed in various formats. Which of the following is an acceptable format for disclosing comprehensive income?

I. At the bottom of the income statement, continue from net income and add other comprehensive income to arrive at comprehensive income for the year.

II. In a separate statement, start with net income and add other comprehensive income to arrive at comprehensive income for the year.

III. In the statement of stockholders’ equity, net income is adjusted for other comprehensive income to arrive at comprehensive income for the year.

IV. After retained earnings in the stockholders’ equity section of the statement of financial position, start with net income and add other comprehensive income to arrive at comprehensive income for the year.

I and II

II and III

III and IV

All of the above are acceptable

Answer is A – Comprehensive income can be disclosed in one of the following two ways:

1. On a combined income statement where other comprehensive income is added to net income to arrive at comprehensive income for the period; or

2. On a two income statement format in which a separate statement follows the typical income statement. The separate statement starts with net income and adds other comprehensive income to arrive at comprehensive income for the period.

Reporting comprehensive income on the statement of financial position after retained earnings is not an acceptable format for displaying comprehensive income for the period, nor is displaying it on the statement of stockholders’ equity.

Then I start thinking so – what is the difference again between IFRS and GAAP on OCI ?

[manikmehtani]

i still have 8 chapters to revise and my exam is on 30th May.

I started with the third chapter today.

Huge mistake on my part that i did not revise my previous chapters on daily basis when i was studying chapters for the first time.

For those who have just started there preparation, please keep this in mind as it will help you when you are doing your final revision.

I feel like as if i have to redo the chapters. The only difference is that now it takes me 2 days to complete a chapter instead of 4.

The only problem is that i don't have 2 days per chapter now and its freaking me out.

Praying to God everyday to give me strength.

Any suggestions from you guys or anybody who is feeling the same, please reply back.

[Anonymous]

Mani – I suggest you do MCq's by topic every day until your exam – that way you can keep things fresh.

Also everyone says – day before – read Govt Acting and IFRS so that you are totally fresh on as it seem to be extremely test.

…………………………….

Someone help me with this OCI question..

I am actually comparing IFRS and GAAP and i really can't understand what is the difference again ?

[WANNABE_CPA]

@brainfarts..i think there should not be any difference now as they say US GAAP will follow 2 methods of presentation from Dec15 2012 and they in the lecture too he says that it will be ending soon so US GAAP and IFRS will be on the same terms regarding this.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Author]

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