[joohj1187]

So I think I’m pretty well-versed in most of the stuff for FAR, trying to at least convince myself I’m gonna pass this thing. But I have a couple of questions maybe some people can help me with.

I am having some trouble accounting for intercompany sales for consolidation. Does anyone have any tips on how they understand that concept?

Also, do I have to know more than the conventional retail method/Dollar value LIFO for calculating inventory? I mean there are like, 6 methods in the appendix of the becker book. Hoping I don’t have to know them all.

I know that these two topics will probably be no more than a few questions on the test, but especially for interco sales, I could use some pointers. Thanks!

FAR: 8/5/2010 - 89
AUD: 8/24/2010 - 92
REG: 10/11/2010 - 94!!
BEC: 11/30/2010

[michelle119]

So the best explanation I give you is that you should treat intercompany sales as if the two companies are similar to a checking and a savings account. Basically if the only occur between the two companies you disregard/eliminate them from the consolidated income statement. You only count the sale that occurs outside of the two companies in your consolidated income statement. I hope this helps you.

I basically “memorized” the appendix that you are talking about.

I know Becker doesn't help much with these two topics so let me know if you have any other intercompany questions.

FAR 7/2 - 88
BEC 7/30 - 87
AUD 8/27 - 80
REG 11/12 - 96

[SeanM]

Make sure you are at the very least familiar with all of the different LIFO methods, they are all fair game on the test

FAR-87; AUD-89; BEC-85; BEC-84
DONE!

[italianCPA]

Intercompany sales:

To consolidate F/S: Always eliminate intercompany sales and intercompany COGS (DR Sales & CR COGS)

Your entry won't balance yet, because the difference between sale and COGS is your intercompany profit.

Allocate the intercompany profit between inventory and COGS.

If all of those goods have been sold to third parties, then CR the whole difference to COGS.

If all of those goods are still in inventory, then CR the whole difference to Inventory.

If some are sold and some are still sitting in inventory, allocate the difference between COGS and Inventory accordingly.

FAR - 7/26/10 - 95
AUD - 8/10/10 - 88
BEC - 8/31/10 - 88
REG - 10/15/10 - 95

[joohj1187]

awesome. thanks for your help guys, italiancpa i think you provided exactly what i was looking for!

FAR: 8/5/2010 - 89
AUD: 8/24/2010 - 92
REG: 10/11/2010 - 94!!
BEC: 11/30/2010

[gabe1475]

Figured I would not create another thread for this. Which fund would account for Special Assesments to affected owners?

I thought It was an enterprise fund, but I got it wrong and the Wiley CD did not give an explanation as to where it should be included.

FAR - 95
AUD - 82
REG - 94
BEC - 84

[Anonymous]

I'm guessing Special Revenue…but I'm notorious for being wrong.

[gabe1475]

That was my second guess, but the question dealing with special revenue did not include this amount either. I went through all the questions and they never included the special assessment.

FAR - 95
AUD - 82
REG - 94
BEC - 84

[veena]

Hi Everyone………….

Can any one tell me the enrollment process of Becker Live Classroom . The thing is I am going to give my BEC exam in Nov this year and the classes for this step will be starting from Oct. So do I need to enroll myself in advance i.e. two months before or else I can enroll at the end of Sept as the classes are going to start in OCT ???? And I will be giving the remaining steps in next year . As you all know the format and syllabus is going to change from next year so my main concern is if I join/ enroll for Becker now I will be getting the old syllabus material or I will get the new syllabus material ??????????

And any advice would be appreciated and thank you in advance………….

[Anonymous]

veena

When ordering the materials Becker allows you to select the study materials to match your testing period. If you were to order material later this year and wanted BEC for 2010 and FAR, AUD and REG for to 2011 you ccan do that on a single order. The 2011 material won't be shipped until Dec I think. Hope this helps.

[joohj1187]

hey gabe, any special assessments to affected owners, in which the government has NO liability for, is accounted for through the agency fund (the govt receives money from owners to take care of the special assessment, like improvement of sidewalk or something). If the government IS responsible for it, then you use either the capital projects fun or some proprietary fund (if it's an upgrade to the water system, then you would use the enterprise fund for water utilities)

hope that answers your question!

FAR: 8/5/2010 - 89
AUD: 8/24/2010 - 92
REG: 10/11/2010 - 94!!
BEC: 11/30/2010

[gabe1475]

Yes. Thanks for your help.

FAR - 95
AUD - 82
REG - 94
BEC - 84

[joohj1187]

Question regarding deferred taxes…If there is a DTL for $75000 related to fixed assets arising from depreciation, and $10,000 will reverse in the next year, why is it the case that you still classify the entire $75000 as a DTL? Anyone have an explanation? This was one of the becker questions…

FAR: 8/5/2010 - 89
AUD: 8/24/2010 - 92
REG: 10/11/2010 - 94!!
BEC: 11/30/2010

[gabe1475]

Did you mean a noncurrent DTL? In that case treatment depends on the asset/liability that it relates to (Fixed Asset), which in this case is a Non Current Asset. If you can not relate back to a specific asset or liability, then you use the period in which you expect the DTL or DTA to reverse.

FAR - 95
AUD - 82
REG - 94
BEC - 84

[joohj1187]

ahhhh yes, that's what i meant and I see it now. Yeah, the deferred tax liability is related to an fixed asset so the entire $75000 would be a non-current tax liability, EVEN if the $10000 reverses in the next year.

god i hope the actual test is not impossible.

FAR: 8/5/2010 - 89
AUD: 8/24/2010 - 92
REG: 10/11/2010 - 94!!
BEC: 11/30/2010

[Author]

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