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CPA-FSU
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Joined: 18 Nov 2009
Location: United States
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Posts: 27

Posted: 20 Nov 2009 at 09:48 \| IP Logged

Hi - I am planning on starting the CPA exam with the FAR section in February. I am currently finishing up an Accounting Theory class. I have been reading Wiley GAAP 2009 for this class and finished Pensions about a week ago. According to my text, the 15 year amortization is an election that can only be made at initial FAS 87 adoption (not plan amendments). Since FAS 87 has been in existence over 20 years, this is pretty much moot. Someone, please correct me if I am wrong on this.

Thanks!

joecjr
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Joined: 10 Oct 2009
Location: United States
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Posts: 974

Posted: 20 Nov 2009 at 10:25 \| IP Logged

ltp,

I don't have that mnemonic for SIRAGE from WIley, I think it is a Becker mnemonic. I could be wrong about the A being Actual return.

Anyhow, I have the same understanding of the expected years of service as you.

The instructors show it using straight line, which is way easier

__________________
FAR [83] 1109 Yaeger
AUD [90] 0510 Roger CPA
BEC [76] 0810 Yaeger/Gleim
REG [80] 1110 Yaeger
Done 12/16/2010
1year & 4months

Philadelphia, PA
joey_cjr@yahoo.com

snehakhabiya
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Joined: 21 Mar 2008
Location: United States
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Posts: 63

Posted: 20 Nov 2009 at 14:47 \| IP Logged

S- Current Service cost
I- Interest cost -plan assets*Settlement rate
R- (Expected Return on plan assets)

A- Amortization of unrecognized prior service cost
G- Amortization of(Gain)/ Loss-
E- Amortization of existing net obligation or net assets

= Net pension expense

__________________
BEC: 75
REG: 78
AUD: 86
FARE: November 30th

lovethepirk
Major Contributor

Joined: 10 Jul 2009
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Posts: 295

Posted: 21 Nov 2009 at 12:59 \| IP Logged

joe,

yea the pensions was the only chapter that really pissed me off in Wiley...I went to becker for help and SIRAGE helped alot. I think Wiley kinda likes to put the expected and actual(gain) together which messes me all up. All I use ever now is the expected gain for R. I never worry about the actual gain.

If I remember the actual gain will get factored in when you do the 'G' which is the amortization of the gain chilling in another one of those memo accounts.

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FAR - Not enough acc hours
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AUD - ""
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Using Wiley books and CPAnet!!!

joecjr
Major Contributor

Joined: 10 Oct 2009
Location: United States
Online Status: Offline
Posts: 974

Posted: 21 Nov 2009 at 16:59 \| IP Logged

you have to use the actual gain if it is lower than the expected gain.

you use the lower of the two

__________________
FAR [83] 1109 Yaeger
AUD [90] 0510 Roger CPA
BEC [76] 0810 Yaeger/Gleim
REG [80] 1110 Yaeger
Done 12/16/2010
1year & 4months

Philadelphia, PA
joey_cjr@yahoo.com

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