[MCLKT]

Tootsie started an AUD study game if you haven’t checked it out. It’s ctually fun! (spoken like a true CPA candidate)

Let’s try it out!

“……. a game where we post FAR questions to help us study and if you know the answer, post it and ask another question. I’ll go first.

Q. How is it the Tax Expense calculated and where is it located on a Personal Financial Statement?

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[Anonymous]

tax expense is calculated after making adjustment AGI to standard deduction or itemized detection. then calculating tax expense …

if the income tax paid in near future is reported as current liability ..

[Anonymous]

ok i am confused with this question , may be i will get insight from you guys.

Consolidation question :

How is NI reported in consolidation at acquisition date and after acquisition date?

[MCLKT]

Nam, your answer 🙂 it's apparent you did well on REG! My question wasn't that good. I just meant when presenting the Personal Financial Statement how do you come up with the Estimated Tax Liability. I said it wrong, oops. Maybe I should have left the game to the AUD group, ha!

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[Anonymous]

Tax expense is computed as if all assets were liquidated and all liabilities were paid. It goes at the bottom of the statement right before Net Assets.

[MCLKT]

Kricket! You get to ask a question now 🙂

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[Anonymous]

How many sections are there in a Gov Cash Flow Statement? Name them.

[Igotthis]

@Nam

Regarding the NI reported in consolidation at acquisition date and after acquisition date:

The Wiley textbook was extremely vague on this point but basically it is stating that at the acquisition date it is when the acquirer (parent) takes control of the acquiree (subsidiary) and the acquirer recognizes the net income of the acquiree only AFTER the date of acquisition. Basically when everything is consolidated is after the acquisition date.

Before the date of acquisition, the acquirer and acquiree are still separate entities; filing their own individual financial statements.

@ Kricket

Only the Proprietary Fund has statement of cash flows and the sections are operating, investing, capital financing, and non-capital financing

Question: Monetary Current Assets and Current Liabilities

If transferee transfers a financial asset but continues to hold an interest in the service asset, the interest in the servicing asset should be measured at?

[Anonymous]

The difference between the old carrying amount and the amount derecognized.

Question: Pensions

Interest cost included in the net pension cost represents?

[WishingForCPA]

Kricket:

The amount of interest that has accumulated, due to the passage of time, on the PBO.

My life (upcoming exams):
FAR 2/16/13
AUD 4/2/13
BEC 4/29/13
REG 5/27/13

I can only hope! and study!

[Anonymous]

@Wishing – Your turn to ask a question.

[lyzgrace]

Alright, I'm gonna take wishing's turn because I want in on the game and I'm too early in my FAR prep to know any of your answers XD

When during the year is a loss recognized on devalued inventory?

AUD: 82
FAR: 78
BEC: 75
REG: 8/1 score release!!

[Anonymous]

recognize the loss as soon as you're aware of it, no?

Okay I've got a question: What is the difference between discrete and blended presentation when dealing with government-wide financial statements?

[lyzgrace]

Almost, I might have needed to word that better. The loss must be viewed as permanent without likelihood of the value coming back up to cost.

I hate government stuff… I think discrete is when the fund is reported in a separate column on the… right? And blended is just all the funds combined into one column?

Next: How do you calculate sum-of-years-digits depreciation?

AUD: 82
FAR: 78
BEC: 75
REG: 8/1 score release!!

[Anonymous]

I have a question on Consolidation. How do you adjust the subs Assets if fair value is less than carrying value, lets say ..all of the subs assets fair value equal to book value except equipment $100,000 undervalued. In this case how do you calculate goodwill? All i saw the MCQs about the fair value more than its carrying value? but what happens if it is less than fair value,, do we just subtract it instead of adding?

[lbi18]

SYD Method of depreciation example:

If asset has a cost of $10,000 and salvage value of $1,000 with a useful life of 5 years, calculate depreciation as follows:

Depreciable base: $9,000

SYD factor: 5(5+1)/2 = 15

First year depreciation (assuming asset purchased Jan. 1): $9,000 x (5/15) = $3,000

Second year depreciation: $9,000 x (4/15) = $2,400

FAR - 85
AUD - 99
REG - 85
BEC - 10/4/13 (Waiting)

Using Becker Self-Study

[Author]

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