Q11
In the wiki article it was mentioned that we use the current CY not mean when calculating the prepaid expense (PPE for UEP), the cheat sheet even had that part labeled as (PPE for UEP in curr yr)A
it's the prepaid expenses in the UEP for the current CY, not the mean. (In other words, the portion of the UEP that goes towards the current CY pre-paid expenses.)
but then it lists the following formula 2a, which clearly uses mean
Formula 2a: (PPE for UEP)A = PPERA x m(UEPA)
and both the examiner's report and pdf in wiki uses mean instead of CY
apply PPERH to m(UEPH) to get (PPE for UEP)H
Am i missing something here? I checked the source and CY expenses were used to calculate the prepaid expense ratio, but when calculating the portion of prepaid expenses in FAIT, they used the m(UEP) x CY(PPER%)
edit: found an older thread in IEE section explaining this already, but idk how to delete this post
Comments
Could you tell me in which thread you found the answer?
this one: https://www.battleacts6us.ca/vanillaforum6us/discussion/23/prepaid-expenses-for-uep#latest
Thank you