ACED_FAR FIELD GUIDE

$ ./aced --field-guide silent-defaults --section FAR

The 15 traps FAR sets when the stem goes quiet.

When a FAR stem is silent on a controlling fact, a default fires automatically — and the answer they're baiting is almost always the one that ignores it. Here's the unsaid word, the rule it triggers, and the distractor it sets up.

Free · no signup · the █ blocks are what the stem leaves out. Original, blueprint-derived — nothing lifted from any prep vendor.

01EQUITY

THE TELL"6% preferred stockcumulative" — no "cumulative" anywhere

SO IT'SNoncumulative. Dividends in arrears don't carry forward — unpaid is gone.

BAITS YOU INTO✕Subtracting "dividends in arrears" from the EPS numerator as if it were cumulative.

02EQUITY

THE TELLTreasury stock reissuedpar value method — no method named

SO IT'SCost method. Reissuance gains/losses hit APIC–Treasury, then retained earnings.

BAITS YOU INTO✕Running a gain or loss on the reissuance through net income.

03LEASES

THE TELLLessee is given both the implicit rate and an incremental borrowing rate.

SO IT'SDiscount at the rate implicit in the lease. The IBR is a fallback, not a choice; the lessor always uses the implicit rate.

BAITS YOU INTO✕Discounting the lease liability at the IBR because it was handed to you.

04LEASES

THE TELLA lease, but no classification cue and none of the finance criteria called out.

SO IT'SOperating — unless any one of the five finance tests is met (transfer, BPO, ≥75% life, PV ≥90% FV, specialized asset).

BAITS YOU INTO✕Skipping the 90%-of-fair-value and 75%-of-life checks and guessing.

05BONDS

THE TELL"A 10%, 10-year bond"paid annually — no payment frequency

SO IT'SSemi-annual. Halve the rate, double the periods in every present-value step.

BAITS YOU INTO✕Discounting once a year and missing the issue price.

06BONDS

THE TELLAmortize a bond discount/premiumstraight-line — no method specified

SO IT'SEffective interest. Straight-line is allowed only when it isn't materially different.

BAITS YOU INTO✕Amortizing a flat amount each period (the straight-line number).

07INVENTORY

THE TELLYear-end cutoff, goods in transit, terms are FOB shipping point.

SO IT'STitle passed at the seller's dock — the goods on the truck are the buyer's inventory at year-end.

BAITS YOU INTO✕Leaving in-transit goods out of the buyer's count.

08INVENTORY

THE TELLThe word "consignment" appears anywhere in the stem.

SO IT'SInventory stays on the consignor's books until the consignee sells it to an end customer.

BAITS YOU INTO✕Counting consigned goods in the consignee's inventory.

09INVESTMENTS

THE TELLAn equity stake with no influence language — just a percentage.

SO IT'S≤20% fair value to NI · 20–50% equity method · >50% consolidate.

BAITS YOU INTO✕Leaving a 25% holding at fair value instead of switching to the equity method.

10INVESTMENTS

THE TELLAn equity-method investee declares a cash dividend.

SO IT'SA reduction of the investment account — not income. You book income as the investee earns.

BAITS YOU INTO✕Recording dividend revenue on the income statement.

11INCOME TAX

THE TELLA temporary difference that reverses in a future year.

SO IT'SMeasure the DTA/DTL at the enacted future tax rate for the year it reverses — not today's rate.

BAITS YOU INTO✕Applying the current-period rate to the reversal.

12INCOME TAX

THE TELLA deferred tax asset with shaky future income.

SO IT'SBook a valuation allowance once it's more likely than not (>50%) the DTA won't be realized.

BAITS YOU INTO✕Carrying the full DTA with no allowance.

13REVENUE 606

THE TELLA rebate, discount, or performance bonus baked into the price.

SO IT'SEstimate the variable amount, then constrain it to what's highly probable not to reverse.

BAITS YOU INTO✕Booking the full variable amount with no constraint.

14REVENUE 606

THE TELLA sale of goods where none of the three over-time criteria are met.

SO IT'SRecognize at the point in time control transfers. Cash collection and signing a contract are not control events.

BAITS YOU INTO✕Spreading revenue over time, or deferring it until cash arrives.

15REPORTING

THE TELLA T-bill or money-market holding3-month maturity — maturity not stated as ≤3mo

SO IT'SA cash equivalent only if ≤3 months at purchase. A 6-month bill now under 3 months still isn't one.

BAITS YOU INTO✕Lumping a 6-month T-bill into cash & equivalents.

↳ AND YOU'RE UNDER THESE BEFORE QUESTION 1

Going concern assumed (disclose only if doubt) Accrual basis, not cash Calendar year, cutoffs at Dec 31 Functional currency = USD Material unless told otherwise Subsequent event: condition existed → adjust · arose after → disclose

↳ "UNDER IFRS" FLIPS THE DEFAULT

Topic	US GAAP	IFRS
LIFO	Permitted	Prohibited
Inventory write-down reversal	Not allowed	Allowed, up to original cost
Development costs	Expense	Capitalize if 6 criteria met
Impairment reversal	Prohibited	Allowed (except goodwill)
Loss-contingency range, no best estimate	Low end	Midpoint

↳ THESE ARE 15 OF 97

FAR Silent Defaults — the complete field guide.

The full reference: 97 silent defaults across all 16 FAR areas, an 18-row GAAP↔IFRS flip table, and worked trap autopsies — a 19-page PDF in this exact format, yours to keep and print.

⬇ GET THE COMPLETE GUIDE

$9 ONE-TIME · INSTANT PDF

16 areas · equity, leases, bonds, tax, revenue, consolidations, NFP, governmental & more · GAAP vs IFRS · worked examples

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The 15 traps FAR sets when the stem goes quiet.

↳ AND YOU'RE UNDER THESE BEFORE QUESTION 1

↳ "UNDER IFRS" FLIPS THE DEFAULT

FAR Silent Defaults — the complete field guide.

This is one screen of the map.ACED turns the whole thing into a game.

This is one screen of the map.
ACED turns the whole thing into a game.