Did anyone learn all this (inventory, asset writedowns, goodwill writedowns) - or are most punting?
This is one of my most hated topics. I’m writing this out of my memory, so if something’s wrong please correct me. Inventory: IFRS - write down to min(cost, NRV); NRV = fair price-selling cost; write-up permissible to cost GAAP - write down to min(cost, mkt); mkt = (NRV-profit, NRV); no write-up Long-lived Asset: IFRS - write down to min(NRV, PV(CF)); write up permissible, if over cost then record as gain in OCI. GAAP - check if BV
This is my most hated topic. I may review this if I figure out pensions, but most likely won’t get to this. Doubt it will be more than 1 question on the test, if that.
pension is one of the easiest sections for me in fra. I just hate inventory and long-lived assets & freakin’ goodwill. full (us) and full/partial goodwill (ifrs).
^^ I agree. I will stab the person next to me with my TI calculator if there isn’t a Pension vignette.
What’s the secret on pensions? Is it just memorizing the reconciliation formulas. I understand most of the assumption related questions but get tripped up on the calcs.