[MaLoTu]

I am reviewing inventory valuation and Becker says that the ASU changes do not take effect until after fiscal year December 15, 2016 … However, the changes can be implemented sooner and therefore it is testable as soon as April 1, 2016.

So, what valuation do we need to know for Q1? I don’t want to spend time learning the new rules when the old rules will apply until April … and even then it is pretty vague on what standard they are going to follow until the very end of 2016…

Maybe they are going to test these new topics more lightly until the new standards officially take hold?

[mystical guy]

Don't quote me on this but, it's my experience that the AICPA are very kind when introducing new material. New material will usually be straightforward, tested at “awareness level.”

At the very least I would just go over the new rules and understand the differences with the old.

I'm speaking from my experience with when they introduced IFRS to the exam a while back.

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[MaLoTu]

Thanks, mystical guy.

I want to believe that the testing will be light and straightforward on these new topics … I think they will be, as you mentioned. As far as inventory goes, the only change is that it is following IFRS for all costing methods except for LIFO and retail. I think the other changes are fairly minor, as well. My only real concern is the time frame for testing the material and how blatant it will be that they are testing the new standard.

[jberrier]

This is something I've been wondering as well. There doesn't seem to be a clear, authoritative answer (or I haven't seen one, at least) as to whether this new inventory costing will be tested in Q1. I trust that RogerCPA would have included that in their recent updates, such as updates for Bond Issue Costs and Extraordinary items. However, I thought I've seen that this will change sometime next year. It's not a hard change to remember, but it would be nice to get a definitive answer about this.

[mystical guy]

@MaLoTu

If I'm not wrong,brand new material will be questions won't even count toward your score. Of course, you won't know which ones they are. The following window, most of the new material will count toward your score, it will be fair game. I believe that's what they did with IFRS. But they will never just decide to bring new material without a fair amount of warning, months or even a year in advance. You'll be fine. It shouldn't be life changing 🙂

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[jeff]

Not testable until 2017 (with a caveat that it might be mid-year, I forget)…no need to worry about it for now.

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Author]

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