Net UEP on Battlecard - 2016 Spring #15
Hi,
I'm a little confused about how the net UEP is presented on the battlecard for this question.
We're told to only add the liability associated with CY/AY net UEP, but in the case of a non-zero Net UEP associated with CY/AY-1, why would this not be added? It's still a liability at CY year-end despite it being for the previous AY.
The way the exam problem presents the question is purely the Net UEP from B/S (presumably B/S since it's a single "at year end" figure) and Schedule P doesn't present a UEP by AY anyways.
Comments
I'm afraid I don't understand your question. The battlecard for the question links to the CAS examiner's answer. The question gives a single, yearend UEP balance. The answer duly puts this balance in with the other liabilities. I don;t find an explanation that splits this UEP into current vs prior years.
It seems they are referencing the Web based Problem to Calculate the SAP Liabilities (BattleCard 31 in the Full BattleQuiz). This was modeled off of 2016 Spring #15. There are a few other threads also discussing this but I think it is still confusing how it is presented. It seems incorrect to exclude the CY/AY-1 Net UEP in the final calculation. I feel like a note should be added to the web problem explaining why it should be excluded or the value for CY/AY-1 should be removed from the problem.
See my answer to the same question here:
https://battleacts6us.ca/vanillaforum6us/discussion/224/spring-2016-15#latest
Let me know if it is not satisfactory to you.