[tmturner74]

Is it ok to start a FAR Study Group? I retook Audit yesterday and although I don’t have a gut feeling either way if I passed or not, I am going to start on FAR. I am using Becker self-study and purchased the Ninja Notes for FAR.

I am looking forward to reading a/b everyone’s progression. Good Luck!

 

Aud- 11/28/12 (72), 02/27/13 (72), 04/06/2013 77!!
FAR-tbd
BEC-tbd
REG-tbd

[Anonymous]

Disregard that- 1 minute into the F10 lecture I realized it is the last topic covered.

[Anonymous]

Alright all you Pension experts that use Becker. Please explain AGE in SIR AGE. I understand that SIR is Service cost, interest cost and return on plan assets. Please explain AGE…Amortization maybe?? My review course does not use this acronym and I think it would be helpful to learn. Thanks!

[Anonymous]

Alright all you Pension experts that use Becker. Please explain AGE in SIR AGE. I understand that SIR is Service cost, interest cost and return on plan assets. Please explain AGE…Amortization maybe?? My review course does not use this acronym and I think it would be helpful to learn. Thanks!

[Anonymous]

who is pension expert

i want to see him,lol

actually i can explain the A and the G very well

but the E i just know how to handle it with knowing why 🙁

if you want i will give what i know

but let us wait to see if there is any expert over here that can explain things better than me

[Anonymous]

who is pension expert

i want to see him,lol

actually i can explain the A and the G very well

but the E i just know how to handle it with knowing why 🙁

if you want i will give what i know

but let us wait to see if there is any expert over here that can explain things better than me

[Anonymous]

and if he explain why we take deferred tax from SIR i will be very happy

i know why we take a deferred tax for other comprehensive income and amortizing

but why for SIR

[Anonymous]

and if he explain why we take deferred tax from SIR i will be very happy

i know why we take a deferred tax for other comprehensive income and amortizing

but why for SIR

[Anonymous]

Okay. I am no expert on Pensions- but I do have some basic knowledge.

Casagarber: Becker uses the SIR AGE to help remember, so since you know what SIR is- no need to explain but AGE is as follows:

A- Amortization of Prior Service Costs (a really easy way to remember this is that say you have a pension plan and you decided to amend it, so you went to your staff and said instead of paying you 10% of your prior salary- your pension will now pay you 20%. So you now have to amortize those prior service costs for that 10% increase for those employees. You amortize this over their remaining estimated service years.)

G- Gains and Losses (this is quite simple. There are two components- One: actuarial gains and losses. This is an amount that will always be provided to you. Second: your actual vs. expected rate of return on plan assets. So since most of these MCQ are not comprehensive and are only looking at the current year you don't really get to in depth but essentially every year you have a gain or loss based on actual to expected that goes to OCI. Than at the beginning of your next period you use the corridor approach to determine if you should amortize any of that to your pension expense in the current period. Corridor= Gain/Loss – (10% of the GREATER of your PBO or FV of Plan assets)= Remaining portion that will be amortized over remaining service life of the employees).

E- Amortization or EXPENSE of the Transition obligation. This isn't seen much anymore, as it relates to adoption of a pension in 1992 and its basically the extra costs incurred before you adopted your plan. You have two options. Expense immediately, or amortize it using the GREATER of 15 years or Average Service Life of employees. So if it was an ASSET you would decrease your expense. If it was a LIABILITY you would increase your Net Periodic Pension expense each period of amortization.

I really hope that makes sense.

[Anonymous]

Okay. I am no expert on Pensions- but I do have some basic knowledge.

Casagarber: Becker uses the SIR AGE to help remember, so since you know what SIR is- no need to explain but AGE is as follows:

A- Amortization of Prior Service Costs (a really easy way to remember this is that say you have a pension plan and you decided to amend it, so you went to your staff and said instead of paying you 10% of your prior salary- your pension will now pay you 20%. So you now have to amortize those prior service costs for that 10% increase for those employees. You amortize this over their remaining estimated service years.)

G- Gains and Losses (this is quite simple. There are two components- One: actuarial gains and losses. This is an amount that will always be provided to you. Second: your actual vs. expected rate of return on plan assets. So since most of these MCQ are not comprehensive and are only looking at the current year you don't really get to in depth but essentially every year you have a gain or loss based on actual to expected that goes to OCI. Than at the beginning of your next period you use the corridor approach to determine if you should amortize any of that to your pension expense in the current period. Corridor= Gain/Loss – (10% of the GREATER of your PBO or FV of Plan assets)= Remaining portion that will be amortized over remaining service life of the employees).

E- Amortization or EXPENSE of the Transition obligation. This isn't seen much anymore, as it relates to adoption of a pension in 1992 and its basically the extra costs incurred before you adopted your plan. You have two options. Expense immediately, or amortize it using the GREATER of 15 years or Average Service Life of employees. So if it was an ASSET you would decrease your expense. If it was a LIABILITY you would increase your Net Periodic Pension expense each period of amortization.

I really hope that makes sense.

[Anonymous]

AnasG- So I was confused as to why you set up a Deferred Tax when you are recording your current period SIR, also. For me it helped to know how you handle it on your tax return, so I went to ask my Tax Professor. Basically you wouldn't take the tax benefit because on your 1120 (corp return) you don't actually take a deduction for those expenses. You would take the deduction when you actually pay the benefits, from what she said. I am guessing that is one of those things beyond the scope of the exam, but I am not sure. They definitely don't cover it in Becker but conceptually it makes sense. For your F/S you would want to set up the DTA- for future tax savings, but on your return your not allowed to take the expense until you actually pay the benefits (love the IRS, Income Immediately… Drag out taking those expenses).

[Anonymous]

AnasG- So I was confused as to why you set up a Deferred Tax when you are recording your current period SIR, also. For me it helped to know how you handle it on your tax return, so I went to ask my Tax Professor. Basically you wouldn't take the tax benefit because on your 1120 (corp return) you don't actually take a deduction for those expenses. You would take the deduction when you actually pay the benefits, from what she said. I am guessing that is one of those things beyond the scope of the exam, but I am not sure. They definitely don't cover it in Becker but conceptually it makes sense. For your F/S you would want to set up the DTA- for future tax savings, but on your return your not allowed to take the expense until you actually pay the benefits (love the IRS, Income Immediately… Drag out taking those expenses).

[Anonymous]

Correction of the E in the AGE Nmumonic. Instead of amortizing the greater of Avg. Service life and 15… it should be average service life or 20! whichever is greater.

Because pensions are “GRRRRREEEAAAT.” – Tim Gearty

[Anonymous]

Correction of the E in the AGE Nmumonic. Instead of amortizing the greater of Avg. Service life and 15… it should be average service life or 20! whichever is greater.

Because pensions are “GRRRRREEEAAAT.” – Tim Gearty

[Anonymous]

@bcjasper09 that helps a lot

but what i know in E its 15 not 20 right ?

can you give me example of E

i know it is not seen anymore but i care for it for the exam

and the J/E makes sense now thank you,really thank you

[Anonymous]

@bcjasper09 that helps a lot

but what i know in E its 15 not 20 right ?

can you give me example of E

i know it is not seen anymore but i care for it for the exam

and the J/E makes sense now thank you,really thank you

[Author]

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