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 Purpose Financial Statements 11/27 Speculation and Summary 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 Study Text: Summary table revised (rows deleted) Video: Summary table revised and audio/video removed “What you 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: HEDGE OF: Forecasted Transaction: to offset risk of changes on forecasted transaction Firm Commitment: to offset risk of rate changes on a firm commitment Type of Hedge Cash flow Fair value Basic Approach Treatment of Gain/Loss Comments 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 Recognize in current income The firm commitment is recognized when designated as the hedged item Adjust derivative and firm commitment to fair value Recognized Asset or Liability: to offset risk of changes in assets or liabilities Investment in AvailableFor-Sale (AFS) Securities: to offset risk of exchange rate changes on investment Net Investment in Foreign Operation: to offset risk of exchange rate changes on conversion of financial statements SPECULATION: Entered for profit not hedging a risk Cash flow OR fair value Fair Value Foreign currency hedge None Adjust derivative and recognized asset or liability to fair value Cash flow: defer to OCI Adjust AFS investment and derivative to fair value Recognize in current income Adjust derivative to fair value Adjust carrying value of derivative to fair value Fair value: Recognize in current income Offset translation adjustment; any gain more than the translation adjustment is reported in net income Recognize in current net income Must document the risk being hedged as cash flow or fair value Only debt securities are classified as AFS None Risk enhancing