I passed BEC exam!

I passed BEC exam the other day. In fact, a friend of mine, nn left congratulation message before this posting. I am very glad without saying. A lot of people around me say, "Congratulation. You did a good job!"

In my analysis why I could pass, I tried most of questions of the material could solve perfectly. When I made mistakes, I wrote down these points on my notebook. And I reviewed over & over even in lunch time. Keeping on doing it, I felt myself, my preparation was nearly done before taking exam.

On the other hand, I need to prepare for next FAR exam. Of course I keep on writing my mistakes down on my notebook.

Breakdown

I am struggling for learning FAR (Financial Reporting) in CPA. I have a lot of things to understand. Sometimes, I feel each of them is complicate. It is no use just to say "complicate". To push myself, I do breakdown the difficulties. I said to myself, "What is the key to come up the answer?" Then reading explanation & textbooks, I understand how to solve. I feel my pace of learning is slow. But, I cannot make progress without understanding the contents.

Never give up!

"Never give up!". This words are what I often listen from starting CPA study. We candidates need time to study in order to pass the exam. Even in lunch time, I sometimes study. Of course, I want to go out and spend a hot day.

Why do I want to become a CPA? Do I want to just get big money and big status? Surely, in my mind, I occupy these things. But, accounting is a measure of money matter. If we know accounting, we can live a happier life regarding money. In daily life, we know what part should be saving. We estimate how much do we earn to live an ideal life. Accounting is a basis of these matters.

The more understanding accounting, the more I can study. Continue.

Comprehensive income concept

Comprehensive income is the change in equity of business during a period from transactions and other events from non-owner sources. That is the FASB framework.

In the real, comprehensive income is the total of net income, pension minimum liability adjustments, unrealized gains and losses, foreign currency items, and effective portion cash flow hedges.

Japan weights on net income, but gradually focuses on comprehensive income.

Financial Accounting (2)

Accounting changes & Prior Period Adjustments

• Estimate Changes... Current & Subsequent I/S will be affected

• Principle Changes (GAAP to GAAP)... Restate prior period FS (if comparative FS)/ Restate RE (if not comparative FS) & Cumulative Effect should be shown

• Entity Changes... Restate prior period FS only

• Error Collection (non GAAP to GAAP etc.) ... Restate prior period FS (if comparative FS)/ Restate RE (if not comparative FS)

*GAAP means Generally Accepted Accounting Principles

This is one of the complication of financial matter. It is necessary to keep memorize it correctly.

Records

"Recognition is the process of recording an item in the financial statements of an entity." It is one of the important definition of accounting. I like this words, because accumulation of recording (information) is useful for predictions.

As I write it down in my blog, I am an accountant. These days, I am analysing company's financial statements, then I suggest the strategy. At least over 3 year's F/S's are helpful for analysing. Financial statements have bunch of material information, about not only numbers but also footnotes.

Anyway, I started a new CPA class. I need to understand bunch of information. I hope the less information, the better in this case...