FAR Study Group Q3 2016 - Page 15

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  • #835081
    Operation_CPA
    Participant

    Can someone explain to me if this is correct for exchanges that lack commercial substance?

    Boot is paid = No gain (if under 25%) –> If over 25% recognized all of the gain
    ………..To get percentage –> Boot paid / FV given = % (then use rules above)

    Boot is received = recognize a proportion of the gain (If under 25%) –> If over 25% recognize all of the gain
    ……….To get percentage –> Boot received / FV received = % (then use rules above)

    #836020
    drcpa
    Participant

    Hey guys,
    the governmental is very confusing, any advise?

    If You Fail To Plan, You Plan to Fail

    #836071
    Operation_CPA
    Participant

    @drcpa

    Practice makes perfect on that stuff. Rewrite the funds over and over again (GRSPP SE PAPI) and know the main items that belong in each fund. For example: Special Revenue includes gas tax. Try seeing it “big picture” before getting the small little details down, this really helped me.

    Just a sample of what I am referring to:

    Governmental funds use: Modified accrual accounting and have a current financial resources measurement focus. Governmental funds include the “GRSPP funds” –> General, Special Revenue, Debt Service, Capital Projects, Permanent. Then list what goes in each fund, etc.

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