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MichaelParticipant
When you have unrealized gains as you hold lets say some stock or when you sell the asset for cash? The tax consequence from transactions of capital assets ( securities and other) come when you SELL something. Well the same goes for losses. But people try to game the system and this gaming is called wash sales. How does it work? Lets say you purchased one stock for 10 dollars and its now worth 5 dollars. You want to offset some capital gains, so what do you do? Sell it, no problem. But then you immediately buy the stock back at 5 dollars. What just happened? Did you really sell your one stock? Technically yes, but in theory no because at the end of the day you have the same asset as you did before yet you recognized a loss of 5 to offset your gains for the year. You essentially recognized an unrealized loss and the IRS says that's not allowed. If you had 2 shares of stock and only repurchased one, well then that is a partial legit sale and partial wash sale. One is allowed to be recognized as a loss for the year and the other is not.
MichaelParticipantdont think of whats inside SGA, rather think of whats not in cost of goods sold… This mixes cost accounting in BEC with FAR. Direct labor Direct materials and some direct OVH go into cogs and you expense them all at one time as cogs when you sell inventory. This method exemplifies the matching principle as you are matching the costs you can directly identify with the benefit in the same time period ( when you sell it). Anything that doesnt go here goes to SGA… Such as, advertising expenses, indirect OVH like labor of people in office buildings and not on the factory line, etc.
I can further expand and explain differently if that doesnt make sense
April 24, 2020 at 8:19 pm in reply to: Is 2.5 months studying for FAR too long? How long did it take you to pass FAR? #2986457MichaelParticipantdepends if you want an education or ability to pass… to get an education takes minimum 6 months imo took me much more. to pass only need probably 3 months.
MichaelParticipantWOWWWWW 84 on BEC. No one can tell me this exam isnt curved in some way
February 24, 2020 at 8:12 pm in reply to: Just took BEC… Don’t sit this window if you dont have to #2944386MichaelParticipantWOWWWWWWWWWW 84… how???? Dont know dont care
February 23, 2020 at 10:33 pm in reply to: Just took BEC… Don’t sit this window if you dont have to #2943270MichaelParticipantIf your exam is like mine I would say dont even try to study COSO because the questions were all application none were logic and definitional
February 23, 2020 at 10:32 pm in reply to: Just took BEC… Don’t sit this window if you dont have to #2943267MichaelParticipantIn my opinion, you should. Do you need to? probably not. I dont remember anything I study, I am against remembering anything. I understand every formula thats in my head. It takes time and its very slow but youll get it. For example, the CAPM formula I can fully explain its components and I understand wh it is the way it is
February 23, 2020 at 10:28 pm in reply to: Just took BEC… Don’t sit this window if you dont have to #2943264MichaelParticipantIn the middle of testlet number 2 I was thinking about getting up and walking out, thats how bad I thought I did. If I passed, It will be the most shocking revelation of my life. I guess there is a chance only because the last sim I had plus the WCs I think I got right but legit that is the only thing on the test I thought I did well. Im guessing I did 45-50% on the MC and one simulation I picked random answers. Hopefully I get my score tommorow , Ill post my grade
February 14, 2020 at 12:24 pm in reply to: Just took BEC… Don’t sit this window if you dont have to #2931135MichaelParticipanthow would you rank this quarters exam to your other attempts? This was my first attempt and im curious if I just sat in a tough quarter or this section is going to be my major battle.
February 11, 2020 at 7:48 pm in reply to: Just took BEC… Don’t sit this window if you dont have to #2927769MichaelParticipantvery true. Good luck to you!
MichaelParticipantIm glad im not the only one wondering the same thing. I am using Wiley currently as well and IT section could be its own section. I watched all the lectures which took forever and read the text book but its all memorizing. Im just going to focus on the MCs in the test bank and hope questions on the exam are relativly basic.
MichaelParticipantDont think in terms of MC vs SIM! Understand every topic and reaffirm going through every question. Make a list of all the topics from A-Z. Assess from strongest to weakest and start at the bottom. You got a 74 which means you know alot. If that approach is too much I would just get a new test bank and do AMAP.
MichaelParticipant83 on AUD. 2 more to go.
MichaelParticipantThink of COSO like this, you have a goal or strategy as a business (lets say keeping the financial statements in accordance with gaap) which you clearly state. You really want it achieved so your tolerance/appetite for failure is low. You have identified all risks that you can imagine will threaten your goals achievement (for example errors and fraud somewhere in the accounting process) and assessed each of them distinctly as being severe/ likely threats vs less severe or unlikely ones. You combine the fact that your tolerance for failure is low along with all severe/ material risks of failure and you say to yourself these are unacceptable risks. So what you do is lower those risks to an acceptable level so when you reassess those risks there are little to none in the way of your goal/ strategy. How is this lowering of risk achieved??? CONTROLS. They are risk mitigating decisions. Each risk should be lined up with a menu of available controls along with their costs so we can make a decision on which to implement. Depending on your appetite and the assesed risk level will be your guide to tell you which to choose (you may choose several). After this process of choosing control activities is done whats next? A continous/ periodic monitoring to make sure that the controls are working 1) as designed and 2) that they are actually lowering risks. Auditors (internal and external) will do procedures on these controls such as observation of employees to make sure they are operating. Also, monitor changes in risks and levels. Risks are always changing so existing controls may no longer be needed, new ones may be needed, etc. Communication lines from anyone in the org at any point in this situation need be proper and have documented procedures for.
The 5 coso components I have just explained fully to you in regular people terms.
Control Environment
Risk Assessment
Control Activities
Information and Communication
Monitoring -
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