FAR Study Group Q1 2017 - Page 113

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  • #1500448
    GiniC
    Participant

    You use each year's ending inventory costs to create it's layer – UNLESS the inventory went DOWN (in base year $) in which case you don't have a layer for that year, you sold inventory from the prior year. This one is a little confusing because your FIRST year has a lower inventory, so your base year has to be reduced.

    Base Yr Curr Yr____$Val Lifo
    01/01/x0___90,000____90,000____90,000
    X0 layer__does not exist, must reduce Base layer (you sold all of X0 inventory and some of prior years')
    12/31/X0___20,000______________20,000
    X1 layer___20,000__x2.0>>>_____40,000 Base yr x X1 index = X1 layer
    12/31/X1__40,000____80,000_____60,000 80/40=2; X0 end(20K)-X1 end(40K) = 20K; X0 (reduced base) layer + X1 layer = X1 end at $Value LIFO

    There's a really good example here, someone else posted it a few pages back: https://www.accountingformanagement.org/dollar-value-lifo-method/

    #1500456
    Iceman6
    Participant

    Is it March 8th yet? Ugh. Already can't wait to find out if I passed or not

    #1500457
    GiniC
    Participant

    @Iceman6 – at least your exam is behind you and you can (probably) take a break from studying. Still obsessing here, forgetting to take tax off my AOCI pension calculation…

    #1500463
    mtaylo24
    Participant

    @McKan514w Thanks. Does anybody know where I can find a list of the Q1 rule changes?

    AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
    REG - 55 (2/16) 69 (5/16) Retake(8/16)
    BEC - 71(5/16) Retake (9/16)
    FAR - (8/16)

    #1500477
    mckan514w
    Participant

    Getting back to small vs. large stock dividends- am I correct in the fact that Large stock dividends (greater than 25%) are recorded at Par… DR RE / CR Common
    and that Small ones are recorded at FV- so DR RE- Mkt/ CR Common-Par CR APIC difference???

    If I pass this before having a nervous breakdown it will be a miracle..

    and they ask me why I drink...

    FAR- 61-next time I'll ask for lube instead of a calculator
    REG-75- Never been so happy to see such a low grade
    BEC- 8/11
    AUD- 9/2

    #1500483
    GiniC
    Participant

    @mckan514w – Yes, but I have been having issues with entries on date of declaration vs. date of distribution. Some of the materials display as though there's only one entry (like you just did) but I was taught two, for ALL dividends.

    Date of declaration
    DR Retained Earnings Par for Lg, FV for small
    …..CR Stock Dividends Distributable

    Record date – no entry

    Date of distribution
    DR Stock Dividends Distributable
    …..CR CS at par
    …..CR (for small dividends) excess of FV over par

    I questioned Becker on this yesterday, but haven't heard back yet.

    #1500486
    Holly
    Participant

    According to the FASB conceptual framework, which of the following situations violates the concept of reliability?
    A. Data on segments having the same expected risks and growth rates are reported to analysts estimating future profits.
    B. Financial statements are issued nine months late.
    C. Management reports to stockholders regularly refer to new projects undertaken, but the financial statements never report project results.
    Correct D. Financial statements include property with a carrying amount increased to management's estimate of market value.

    What would C be? I was thinking complete????

    BEC - 79
    REG - 85
    AUD - 5/27/16

    #1500495
    mckan514w
    Participant

    @Ginic- I think you are correct on your entries- (I was just doing a “down and dirty” to make sure I had amounts correct)- the OWNER of the stocks would not record anything until date of record…. however the company records the liability on date of declaration.

    @hr- yeah I think C would speak to completeness- management says it is doing this but the records do not show it so either management is lying or the records are not complete…

    and they ask me why I drink...

    FAR- 61-next time I'll ask for lube instead of a calculator
    REG-75- Never been so happy to see such a low grade
    BEC- 8/11
    AUD- 9/2

    #1500501
    mckan514w
    Participant

    @mtaylo- not sure about a list anywhere but off top of head we have:

    Inventories- all other than LIFO and Retail Method LIFO are now Lower of Cost or NRV
    DTL/DTA- all are now listed as Non-current
    Prospective application of significant influence (gained or lost).

    Seems like there is another one but can't remember it right now….

    and they ask me why I drink...

    FAR- 61-next time I'll ask for lube instead of a calculator
    REG-75- Never been so happy to see such a low grade
    BEC- 8/11
    AUD- 9/2

    #1500531
    T Rev
    Participant

    @GiniC Thank you for the link to the Dollar Value LIFO explanation. I knew the steps before, but this explains why those steps are done and that was exactly what I needed to help cement everything.

    #1500565
    Holly
    Participant

    Did y'all see someone posted about selling their 3/10 seat to test? It's since been closed to new replies, but crazy!

    BEC - 79
    REG - 85
    AUD - 5/27/16

    #1500577
    mckan514w
    Participant

    LOL- I enjoyed that one with my morning coffee @hr…. ha ha ha ha…. especially was interested since they said it was a “Washington DC test center”- which is my area- SMH….

    and they ask me why I drink...

    FAR- 61-next time I'll ask for lube instead of a calculator
    REG-75- Never been so happy to see such a low grade
    BEC- 8/11
    AUD- 9/2

    #1500579
    mtaylo24
    Participant

    That's actually pretty clever

    AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
    REG - 55 (2/16) 69 (5/16) Retake(8/16)
    BEC - 71(5/16) Retake (9/16)
    FAR - (8/16)

    #1500594
    T Rev
    Participant

    No I wouldn't offer that idea any sort of compliment. There's a difference between capitalizing on an opportunity, and then there's just being a crappy human being. Some of us are using doing all of this to better our lives, as opposed to just living up to Daddy's expectations. The person selling it wouldn't be a CPA yet, but I would assume that this would qualify as an act disreputable to the profession.

    #1500597
    Holly
    Participant

    I was shocked that person had the nerve to post it. Pretty sure Trevor is right.

    BEC - 79
    REG - 85
    AUD - 5/27/16

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