[memmy29]

I’m using the Becker approach to remember what to add/subtract to reconcile, but I can’t seem to remember the individual items. There are so many and a few don’t make sense. Anyone have a good way to understand and remember this concept?

AUD-84, REG-75, BEC-84, FAR-77

Licensed CPA

CIA Exam
Part 1 - Passed
Part 2 - Passed
Part 3 - Passed

[Anonymous]

Becker has the nmuemonic “GOES BARE” and “GALS BARE” I believe. I personally didn't use that on the exam when I took it. For me it helped to just understand what was going on in the F/S in the first place without trying to remember some nmeumonic. Just remember that the major differences are going to be your capital expenditures, issuance of debt, and depreciation. If you purchased an asset, you expended it all immediately but you should have capitalized is, thus an add back to net fund balance. You then have to subtract the related depreciation. Conversely, with Debt Service you recorded that as revenue (oops) so you have to minus that from fund balance. Your principle payments of debt would also have to be added back because you treated that as an expenditure when it should have just reduced your liabitlity but always remember that interest payments are not going to change because under both circumstances they are expenses. Those are the main differences and reconciling items. Just remember to add your Internal Service Fund balance to the Govt Balance. That may help, or it may be a reassurance of what you already know but I know personally trying to memorize some nmeumnoic has never worked for me.

[memmy29]

@bcjasper thanks for the explanation!

AUD-84, REG-75, BEC-84, FAR-77

Licensed CPA

CIA Exam
Part 1 - Passed
Part 2 - Passed
Part 3 - Passed

[Author]

Replies