FAR Study Group Q1 2017 - Page 140

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  • March 5, 2017 at 4:28 pm #1505056
    aatoural
    Participant

    Can somebody please explain the concept of adding the impairment loss to the Accumulated Depreciation?

    Gei Co. determined that, due to obsolescence, equipment with an original cost of $900,000 and accumulated depreciation at January 1, 1992, of $420,000 had suffered permanent impairment, and as a result should have a carrying value of only $300,000 as of the beginning of the year. In addition, the remaining useful life of the equipment was reduced from 8 years to 3. In its December 31, 1992, balance sheet, what amount should Gei report as accumulated depreciation?
    a.$600,000
    b.$100,000
    c.$520,000
    d.$700,000
    Explanation
    Choice “d” is correct. When a permanent impairment occurs, the book value is reduced and a loss is recorded. The loss is credited to accumulated depreciation. In addition, the current year's depreciation expense should be added. The new book value is depreciated over the new life.

    BEC - PASSED
    AUD - 8/29/16
    FAR - TBS
    REG - TBS

    March 5, 2017 at 4:53 pm #1505079
    Cruzer
    Participant

    There is only one example of a Govt. Cash Flow Statement Example in the Becker book I found however I wish there was SIM on it. I just spent over an hour drilling down on NINJA SIM #1 Cash Flow Problem. It was a consolidation accounted for under the equity method (25% ownership) and asked to prepare statement of CF on Indirect method. I sure as hell they don't ask us to prepare a statement of CF under the Direct Method because I am not as comfortable in this method.

    I know under the only time you have to do a statement of CF for Govt purposes would be under the Proprietary funds. Has anyone seen an example of this?

    March 5, 2017 at 5:03 pm #1505091
    norseman88
    Participant

    @Cruzer Take a look at Becker F8 first simulation, last question within

    March 5, 2017 at 5:05 pm #1505095
    Namstut
    Participant

    @cruzer I didn't see the CF for Governmental. I did SIMs for Ch. 9 yesterday and I was frustrated that most of them were on NFP!

    I am going through IRFS vs. US GAAP and the Equity Method Step-by-step acquisition for GAAP seems to be inconsistent to what I see in Becker.

    Becker F3-20, to of the page: B. Adopt the equity method as of that date and going forward. Retroactive adjustments are not required.

    Becker F10-61, GAAP Step-by-step Acquisition: The investment account and the retained earnings account are adjusted retrospectively for the difference between the available-for-sale classification/cost method to the equity method.

    Am I looking at two unrelated concepts? What am I missing here?

    AUD 7/6/16 Passed
    BEC 9/3/16
    FAR TBD
    REG TBD

    March 5, 2017 at 5:05 pm #1505100
    norseman88
    Participant

    @Cruzer Take a look at Becker F9 first simulation, last question within

    March 5, 2017 at 5:07 pm #1505103
    Namstut
    Participant

    @norseman88, what version of Becker are you using?

    AUD 7/6/16 Passed
    BEC 9/3/16
    FAR TBD
    REG TBD

    March 5, 2017 at 5:09 pm #1505110
    Cruzer
    Participant

    @norseman88 I don't have the Becker software, only the book. Using it only as a review of certain topics.

    March 5, 2017 at 5:16 pm #1505115
    Cruzer
    Participant

    @Namstut I was referring to the link below since I am using V 1.0 book I have to go all the way back to oldest update to make sure this is updated so for you there should be no changes to what you already have in your book besides the two you pointed out above.

    March 5, 2017 at 5:26 pm #1505119
    GiniC
    Participant

    @Namstut –

    I think Becker missed a correction. The F3-20 you're quoting is the new inserted page that became effective for Q-1 exams, and the IFRS/GAAP table apparently didn't get updated. They missed it in the IFRS/GAAP table on F3-57 as well. Send it in to academic support – it might need to be updated in the books for Q2 as well.

    March 5, 2017 at 5:33 pm #1505127
    GiniC
    Participant

    I just checked the other corrections for Q1. I think only the Deferred Tax Asset/liability categories in F6 had an impact on the IFRS/GAAP table, so everyone check that block too, page F10-66.

    March 5, 2017 at 5:37 pm #1505139
    Mscfisher
    Participant

    Why do i feel so unprepared! 4 days to go and I'm feeling like there is just sooooooo much. I have 600 mcq in ninja left. Competed becker. I'm just feeling overwhelmed

    March 5, 2017 at 5:55 pm #1505155
    GiniC
    Participant

    @Mscfisher You and me both! I am relying on Becker (full course and Final review) which has prepared me well for the other three tests, but I hit a point each day when I feel like information goes in my head and pushes something else out. In the morning, I'm better off (which is why my exam is at 9 AM) but right now I feel literally sick.

    Going to take aspirin, chew ginger root, and watch Roger videos on YouTube. He's rather entertaining, maybe something he says as he dances around that white board will come to me on Thursday!

    March 5, 2017 at 5:57 pm #1505160
    Namstut
    Participant

    @GiniC thank you!!! Well, this is frustrating.

    The good news is that it looks like I've retained SOME information and I can spot if something I know does not sound right.

    AUD 7/6/16 Passed
    BEC 9/3/16
    FAR TBD
    REG TBD

    March 5, 2017 at 8:31 pm #1505265
    mtaylo24
    Participant

    😂 I am TERRIBLE with accounts receivable and cash! It seems that I have put way too much time into the harder topics and have taken the easy ones lightly. I hope I dont get a cash reconciliation DRS like back in q3. That was painful.

    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)

    March 5, 2017 at 9:07 pm #1505289
    norseman88
    Participant

    Getting my butt kicked on cost and par method treasury stock. Wasting far too much time on this crap when I need to get my eyes on other topics.

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