FAR Study Group Q1 2015 - Page 21

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  • January 6, 2015 at 10:12 pm #654454
    Anonymous
    Inactive

    This is the explanation the Becker review material gave regarding the PSC not recognized:

    The $5,000 of prior service cost would be a positive addition to comprehensive income in the year that it was amortized to net periodic pension cost. In this problem, it is not being recognized in net periodic pension cost.

    January 6, 2015 at 10:12 pm #654455
    rossk
    Member

    You back out prior service cost because it reduces OCI and amortized each year as an expense then you will take it out of OCI and recognize it in I/S

    January 6, 2015 at 10:14 pm #654456
    Determined CPA
    Participant

    Thank you all for the responses!! Truly appreciate it!

    A - 75
    B - 78 God is good.
    F - 77 Answered prayers.
    R - 84! Done!!

    Paperwork sent - waiting for license!!
    Still on a cloud and in shock. Through God, all things will happen.

    January 6, 2015 at 10:15 pm #654457
    Anonymous
    Inactive

    Yes, you're right. I should have backed out $5k instead of adding it. Thanks!

    January 6, 2015 at 10:18 pm #654458
    Determined CPA
    Participant

    At least you knew to do something with it LOL

    It didn't fit in the PUFE mnemonic so I ignored it – ugh

    A - 75
    B - 78 God is good.
    F - 77 Answered prayers.
    R - 84! Done!!

    Paperwork sent - waiting for license!!
    Still on a cloud and in shock. Through God, all things will happen.

    January 6, 2015 at 10:25 pm #654459
    Satchman
    Member

    Prior Service cost is recognized in the OCI, and we amortize it in a straight line basis where PSC is divided by the average employee no. of years.

    When we amortize the PSC, the amortization is included in the Pension Expense.

    The reason is if we recognize all the PSC costs of all the prior years in the earnings, it skews the financial statements portrayal in the sense it makes it look very volatile. Hence, we put that in OCI and amortize it slowly over the avg. life of the employees. In addition, if there are future PSC gains they can be netted out.

    January 6, 2015 at 10:30 pm #654460
    Satchman
    Member

    I am taking FAR in two days – first timer. Any tips/hacks and suggestions on what to do and what not, what to expect at the center, Bars, water, procedures, sleep, caffeine, before exam day ritual etc etc.

    Your inputs will be highly appreciated

    Thanks

    January 6, 2015 at 11:19 pm #654461
    Anonymous
    Inactive

    Make sure you are well rested and avoid too much caffeine. Made the mistake of going overboard with energy drinks last time I tested and I couldn't focus for S*** during the first testlet.

    January 6, 2015 at 11:21 pm #654462
    Anonymous
    Inactive

    If you've put in the time studying then you're in good shape. GOOD LUCK!!

    January 6, 2015 at 11:47 pm #654463
    Satchman
    Member

    Thanks @CTM – I am high on caffeine all the time esp monster. Thanks for the input.

    Right now, I am worried about sleeping well the night before the exam. I am kind of an insomniac.

    January 7, 2015 at 12:01 am #654464
    SkilletCPA
    Participant

    Satchman: I recommend relaxing the day before and eat well the morning of the exam. If thinking of any studying do it lightly and put up your materials by 2 or 3 pm the night before and go watch a movie or TV. I'm confident that you will do well! Good luck to you!

    BEC Pass
    AUD Pass
    REG Pass
    FAR Pass

    January 7, 2015 at 12:34 am #654465
    Satchman
    Member

    Thanks @Skillet CPA

    January 7, 2015 at 4:08 am #654466
    fuyuki
    Member

    feeling pretty down right now. Just took FAR today…

    MCQ testlets didn't really get “harder” Testlets I took today seems to be alot less calculation and more concept related qeustions…

    Totally missed one simulation. Wiley didn't cover the simulation for this topic so I was totally unprepared for this simulation question. Other simulations were okay

    I'm very anxious. Don't know if I should start studying for next exam (AUD) or just keep reviewing FAR until I see my score

    January 7, 2015 at 4:15 am #654467
    Satchman
    Member

    One more question folks

    Are we allowed to go back and forth, skip a question and come back later within a testlet ? I am assuming we are allowed but not sure.

    January 7, 2015 at 4:33 am #654468
    fuyuki
    Member

    @satchman: you can go back and forth within a testlet.

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