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Eresse
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Joined: 22 Nov 2008
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Posts: 43

Posted: 07 Mar 2009 at 14:40 \| IP Logged

Need help from you, Guys...

Unfortunately, I have a problem using the online help from Becker b/c my logging doesn't work today. I am sure it gets fixed on Monday; but I am not patient :) :) I want to speed up with this exam. Study, learn, PASS... and remember to erase my memory after :)

My question will be from 2009 Lecture Notes (BTW... I love Becker for this update! Excellent job!!!)

Info: Changed from SYD to SL depreciation.

Question 1: Type of Change

Answer: Change in acct. principle that is inseparable from a change in estimate

What if I do NOT get this choice? Should I pick up either:

a) Change in acct. principle

b) Change in acct. estimate

*Someone just almost argue with me that this is a change in acct. estimate! I was like, "NO way! NEVER" :) :) But maybe I am wrong! Please help me...share your opinion.

If you wonder WHY I asked this... I say this, "I have experienced during my AUD exam that some questions are not clear!" Plus, this comment, "Its a change in acct. estimate!!!"

Question 2: Acct. Treatment

Answer: Prospectively

*I DO remember this is an exception... It's treated as a change in estimate, so prospectively (for the current & future periods)

Summarizing my question: What do you think of question number 1? Please support your answer (if you could)

Thanks in advance. I truly don't feel like waiting until Monday to solve this issue. It is like a little question (from my judgment) :) So let's do some opinion shopping (?) :)

Eresse (soon an accounting change expert...or hater!) :)

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Posted: 07 Mar 2009 at 16:12 \| IP Logged

It is a change of accounting estimate. Estimates are prospectively. If it were a change in principle it would be retroactively. Depreciation is an estimate.

__________________
FAR - 74, 74, 75-PASSED
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ETHICS 95
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ysjd.patel
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Joined: 12 Jan 2009
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Posted: 07 Mar 2009 at 22:47 \| IP Logged

Eresse

A change from the SYmethod of depreciation to the straight-line method of depreciation is a change in accounting estimate effected by a change in accounting principle. This type of change is reported prospectively, and all activity is reported through income form continuing operations. There is no separate or special reporting of the effect of the change. The change in method is simply implemented, and the depreciation under the straight-line method is reported as expense in income from continuing operations.

Even I had the same question...and was to the opinion of change in accounting principle.....but I think change to straight line method of depreciation shows the more fairly present and hence the change in estimate effected by change in principle....

Plz do correct me if am going wrong.....

Eresse
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Joined: 22 Nov 2008
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Posted: 08 Mar 2009 at 14:25 \| IP Logged

Hmm... Thanks Guys!

Personally, I strongly believe in these:

1) it should be treated PROSPECTEVELY!

2) it's a change in acct. principle that is INSEPERABLE from a change in estimate

BUT... It bothers me because...

Well... We are not allowed to talk about the exam. And I respect this rule. BUT... I experienced during my AUD exam a question where I bet there was NO correct answer! And I felt like an idiot trying to choose the "right" answer!!!

Guess, I should be optimistic and hope for GOOD... CLEAR.... HONEST... MAKING SENSE...questions :) :) And accept the fact that life is not perfect (everyone makes mistakes.... even those smart people preparing our CPA exam :))

Thanks again! :) Let's explore more problems NOW (before the actual exam) :)

Edited by Eresse on 09 Mar 2009 at 10:10

ysjd.patel
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Posted: 08 Mar 2009 at 19:39 \| IP Logged

Eresse
Are you referring to beckers 2009? what other book u supplement with beckers for some more practice....? Do u think beckers is enough to pass?

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