CPA Hot Topic – FASB Pronouncements 04/01/09

Hi, I’m Garrett, Dr. Gleim’s third and youngest child. After earning a degree from the The Wharton School, University of Pennsylvania, I went to work for a firm at the Chicago Board Options Exchange. For the past six years, I have been helping my father continually update his books as well as answering many CPA candidates’ questions. This work, along with Gleim Review materials, prepared me to pass the CPA exam in 2006 and become a CPA in the state of Delaware in January 2007.

My personal experiences as well as those of our thousands of candidates convinced me we can do more to help our CPA candidates. To this end, I will be sending CPA candidates bimonthly emails concerning different aspects of the CPA exam. I encourage you to forward my emails to your friends and colleagues and to give us your feedback. Together we can make the CPA exam preparation experience better. As Dr. Gleim says, “Onward and upward.”

This first email is covering when new pronouncements begin to be tested on the CPA exam. As you may have noticed, we recently released our 2009 CPA editions. If you are in our online course or Simulation Wizard, you have probably noticed that some of the study units have been updated. As you might have guessed, some of these changes are due to new pronouncements.

New accounting and auditing pronouncements are eligible to be tested on the Uniform CPA Examination in the testing window beginning six months after a pronouncement’s effective date. Some pronouncements are eligible for early application. When early application is permitted, the pronouncement is eligible to be tested in the window beginning six months after the issuance date. Therefore, when both old and new pronouncements can be used by a practitioner at the same time, the side effect is that they both may be tested until the old pronouncement is superseded.

While knowing when a pronouncement will begin to be testable on the CPA exam is helpful, you can count on Gleim materials being accurate in relation to what is testable on the CPA exam. We occasionally receive emails from astute CPA candidates who inform us that we are teaching old information. They are usually correct, but the information in our books is what is being tested on the CPA exam due to the AICPA’s aforementioned six-month time lapse. The bottom line is we always keep our materials accurate in relation to what is tested on the Uniform CPA Examination.

Based on personal experience, I can promise you that if you relax and concentrate on studying our Knowledge Transfer Outlines and answering lots of practice questions under exam conditions as we suggest, you will pass the Uniform CPA Examination.

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