FAR january 2019 product errata

JANUARY 2019 WILEY CPAEXCEL EXAM REVIEW: FINANCIAL ACCOUNTING AND REPORTING Product Released October 16, 2018 for exam planners with exam sit dates after 12/10/18 11/8 Overview--General

JANUARY 2019 WILEY CPAEXCEL EXAM REVIEW: FINANCIAL ACCOUNTING AND REPORTING

(Product Released October 16, 2018 for exam planners with exam sit dates after 12/10/18)

11/8 Overview General Purpose Financial Statements Study Text for this lesson did

not appear in the print study guide PDF “FAR January 2019_Study Text_Overview General Purpose Financial Statements.pdf” has been attached for download

11/27 Speculation and Summary Study Text: Summary table

revised (rows deleted) Video: Summary table revised and audio/video removed

“What do you do with the effective or ineffective portion

of those gains and losses ” starting back at “are they going

to be in income or OCI

OVERVIEW GENERAL-PURPOSE FINANCIAL STATEMENTS (STUDY TEXT AND VIDEO)

SPECULATION AND SUMMARY (STUDY TEXT AND VIDEO)

Video:

Revised table appearing at end of lesson:

Forecasted

Transaction: to

offset risk of

changes on forecasted

transaction

Cash flow

Adjust derivative to fair value

Defer to other comprehensive income (OCI)

Gain/ loss reclassified out of AOCI to net income when forecasted transaction effects income

Firm Commitment: to

offset risk of rate changes

Adjust derivative and firm commitment to fair value

Recognize in current income

The firm commitment is recognized when designated as the hedged item

Recognized Asset or

Liability: to offset risk of

changes in assets or

liabilities

Cash flow OR fair value

Adjust derivative and recognized asset or liability

to fair value

Cash flow: defer to OCI Fair value: Recognize in current income

Must document the risk being hedged as cash flow or fair value

Investment in

Available-For-Sale (AFS) Securities:

to offset risk of exchange

rate changes on

investment

Fair Value

Adjust AFS investment and derivative to fair value

Recognize in current

classified as AFS

Net Investment

in Foreign Operation: to

offset risk of exchange

rate changes on

conversion of financial

statements

Foreign currency hedge

Adjust derivative

to fair value

Offset translation adjustment; any gain more than the translation adjustment is reported in net income

None

SPECULATION:

Entered for profit not

Adjust carrying value of derivative to fair value

Recognize in current net income

Risk enhancing