FAR on Wednesday

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  • #186956
    Vlakmir
    Member

    Any last minute tips?

    FAR has been a beast. There’s just so much material. It’s my last exam and hopefully August 4th brings good news for FAR/BEC sections.

    I’m fairly uneasy about some of the topics. I think I’ve ran short on time. I felt this way for BEC, but the test was fairly easy (much easier than the questions I was practicing anyway. Hopefully that’s not a bad thing)

    As for FAR…I feel like I pretty much fundamentally know everything, but still pretty much feel like I don’t know anything.

    I finished the lectures on June 21st, took notes/made flashcards, then hit BEC, took that on the 2nd, and have spent the last 2 weeks back at FAR. I’m a little concerned ><

    Anyway, if anyone has any last minute tips on what to study if you felt like you were running out of time, what you should make sure you know, review tips etc…

    I’ve pretty much skipped the sims. I figured I would study more MCQ/Notes/Flashcards today, do a few simulations tomorrow in a pratice exam or two, and just run over my notes doing high-levels reviews until I run out of time.

    Any thoughts?

    I started studying April 1st in the midst of tax season and finishing my masters. taking my last test July 16th. It’s been quite the hellish 3 and a half months. I think burnout has been affecting my studying for this last one.

    PS only using bisk review materials

    REG - 92
    AUD - 90
    BEC - 82
    FAR - 82
    BISK Review Materials
    DONE! /Happydance

Viewing 7 replies - 1 through 7 (of 7 total)
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  • #581032
    floacct
    Member

    Ask for forgiveness, vow to be a better person, eat a good breakfast and pray you don't get too many questions about journal entries for the corridor approach to pension accounting. Also, I wouldn't study too much the day b4 ur exam as this may mess with ur short term memory.

    #581033
    Vlakmir
    Member

    Corridor-who-what-where now????

    OH BOY.

    /pray

    REG - 92
    AUD - 90
    BEC - 82
    FAR - 82
    BISK Review Materials
    DONE! /Happydance

    #581034
    Lidis
    Participant

    Vlakmir

    On Pensions the corridor approach to figure out actuarial gain/loss take 10% of the larger number between

    1,- Market related value of plan assets and

    2.- Project Benefit Obligation (PBO)

    To figure out the minimum to be amortized to pension expense

    #581035
    Lidis
    Participant

    McMurtry Company has a defined benefit pension plan. Data relating to the plan at January 1 are

    as follows:

    Accumulated benefit obligation $500,000

    Projected benefit obligation 600,000

    Fair value of plan assets 630,000

    Market-related value of plan assets 650,000

    Unrecognized net loss 80,000

    Average remaining service period 10 years

    The amount of actuarial net loss that McMurtry should include in the calculation of net pension cost

    recognized for the year ended December 31 is

    a. $1,500

    b. $1,700

    c. $2,000

    d. $8,000

    A. Actuarial Gain [+] or Loss [–]

    1. Compare PBO and market-related value of plan assets (weighted average)

    2. Take 10% of the larger of the two

    3. Amount of actuarial loss that exceeds the 10% figure

    4. Divide that amount over the average remaining service period

    #581036
    Lidis
    Participant

    PBO = 600.000

    Markrt related value of plan assets 650,000

    650,000*10%= 65,000

    Actuarial net loss = 80,000-65,000= 15,000/10= 1,500

    #581037
    floacct
    Member

    Any chance you could work through the journal entry for that.

    #581038
    Vlakmir
    Member

    ah that's not named the corridor approach in my notes. Probably is in the book.

    Yeah….I kinda know how that works. But I don't really have an understanding of it's purpose.

    I have that exact example question as well here,

    I'm wondering, though – my question says “actuarial loss accumulated in OCI” and yours say “unrecognized net loss” – Why is that?

    Also, where does this even come from? The actuarial loss is usually given for pension questions – is this just one step deeper than that to give you the Actuarial loss for the net periodic pension cost calculation? The end result is the A in SIR PAT mnemonic (Service, interest, return on PA, prior service, actuarial g/l, transition asset/obligation) net periodic pension cost calc?

    Yes…..My last day of studying is just starting.

    I generally study the day before the test, so I'll be fine.

    I thought I would look over

    Govt/NFP/IFRS glance over

    Flash card review on all topics

    Do a practice test or two

    Practice few sims

    I have a few hour car drive before the test tomorrow afternoon – I'll hit flashcards then too ><

    UGh I'm not ready 🙁

    REG - 92
    AUD - 90
    BEC - 82
    FAR - 82
    BISK Review Materials
    DONE! /Happydance

Viewing 7 replies - 1 through 7 (of 7 total)
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