[Rebornalphawolf]

I’m taking FAR in a couple of weeks. :(<

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So, I decided to make my way through F3, and I have to admit, I’m so confused. In the example in the back, dealing with a consolidation using the cost method, only the beginning retained earnings is eliminated (leaving the ending). Also, I see other times when the ending retained earnings will be eliminated only. The CAR IN BIG only eliminates retained earnings once, and I assume that you eliminate the year end retained earnings?

So beyond the Beginning and Ending retained earnings issue, I don’t see a good example dealing with dividends and subsidiary income especially with a company that has a NCI account. Or, does a subsidiary problem even really need to mess with the income statement, other than removing subsidiary income. (I didn’t see an example of this either.)

The bottom line is, I just don’t believe that there was enough depth in the examples or explanations to help really understand the fullness of the method. As it is, I understand all the easy junk, but when it comes to actual worksheet entries, I am like……. WHA?!

Honestly, I feel like Becker is saying, “Well, it’s complicated, even for us. You know what, we’ll try to get you ready for the multiple choice, and if you have a SIMS on it, well you can just take it again eh?” LOL

BTW, I’ve studied all 10 sections in FAR, and this is the only one that itches me. Any advice would be great! I would love to see one really complicated example from start to finish, with worksheet elimination.

[jenuno01]

CAR IN BIG – this will help you answer any consolidated question… Also, memorize the T accounts for the Cost and Equity methods.

Class of 2012

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