FAR Study Group – Q2 2018 - Page 2

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  • March 21, 2018 at 8:05 pm #1745627
    LDC
    Participant

    FAR last exam and retake for June 8th…looking forward to passing this time around. I just started studying again this week. Good luck studying everyone!

    March 21, 2018 at 8:23 pm #1745658
    ebony
    Participant

    NVM…..I guess I had to type this before I remembered inventory reporting rules…

    Hi FAR study group members. I need confirmation and I did not see exactly what I was looking for online. I have a question about revaluation gains (OCI). Do they only apply to the revaluation of fixed assets and not inventory? Ex. IFRS Company reduced inventory from $100 to NRV of $80 in yr1. Inventory value increased to $150 in yr2. what are JNLs? I want to make sure I understand why $50 does not go to OCI

    March 22, 2018 at 11:05 am #1746252
    SONA
    Participant

    The following information pertains to Lee Corp.’s defined benefit pension plan for the current year:

    Service cost $160,000
    Actual and expected gain on plan assets 35,000
    Unexpected loss on plan assets related to
    a disposal of a subsidiary 40,000
    Amortization of prior service cost 5,000
    Annual interest on pension obligation 50,000

    What amount should Lee report as a separate line item titled “net periodic pension cost” in its current year-end income statement?

    Service cost is a component of compensation expense, not net periodic pension cost. To compute the net periodic pension cost, subtract the expected rate of return on plan assets, add the amortization of prior service cost, and add the interest cost on the pension obligation:
    •$(35,000) + $5,000 + $50,000 = $20,000

    March 22, 2018 at 2:27 pm #1746500
    TC85
    Participant

    Retake on 4/4, first score was a 62 🙁

    I'm reviewing and practicing thousands of MCQ and I feel like I don't even know where I got my answers last time…even correct ones! My brains hurts. Im down to less than 2 weeks and feel like I'll end up with a lower score than last time. Even more worrisome is I lose my REG credit in Oct, haven't passed any others, and my 3rd baby is due at the end of August. Mommy's tired and really can't do late nights/early rises so I study as much as possible at work, lunch and evenings.

    Any suggestions?

    TIA!

    REG-43, 76
    BEC-69, 67
    AUD-70

    March 22, 2018 at 2:35 pm #1746503
    SONA
    Participant

    Hey IFRS and GAAP rules for inventory valuation is same with 2 exceptions.

    Inventory is valued at LOWER OF COST OR NRV. So no revaluation OCI etc.

    March 22, 2018 at 2:46 pm #1746540
    SONA
    Participant

    Hey don't worry about your expiring score, right now you have less than 2 weeks so hit it hard. If your brain hurts do some YOGA 😉 but guess what people are at the stage when they are 2 days away from the exam and don't even have confidence. You have lot of time. Take a whole day break and do nothing and restart it. You will feel better. I am testing FAR on 4th too and AUD on 9th Apr. I have 2 toddlers and a husband. My REG expiring on 14th April.

    So hey let's do it.

    March 22, 2018 at 6:52 pm #1746768
    gguzman
    Participant

    have to finish F9 and F10 by Sunday. Sunday is when the Final review starts. Been doing MCQ's on accounting for empires, which worked well for REGF last time. do we have Another 71 team on there? I was not able to find any.

    I also put off all the SIMS for the final two weeks, as that is what worked with REG, gotta do those along with the Becker final review and get through these flash cards.

    three weeks baby lets do it!

    March 23, 2018 at 12:33 pm #1747452
    Iceman
    Participant

    Wiley question that doesn't make sense to me:
    “Johnson Co. had a current ratio greater than 1:1 and a quick ratio less than 1:1. Which of the following transactions will result in a DECREASE in the current ratio and a DECREASE in the quick ratio?

    I. Collected accounts receivable
    II. Made a sale on account
    III. Purchased inventory on account
    IV. Purchased supplies for cash”

    I picked III and IV but it said the correct answer was III only. Which makes sense if IV was purchase of inventory for cash. But in many/most real industries, “supplies” are expensed to factory overhead as a period cost when purchased. So that would decrease the current asset side of both Current and Quick ratios.

    Why would Wiley call something “supplies” if it was going to be inventoried instead of expensed immediately, especially after using the term “inventory” in the previous line? Is this confusing to anyone else?

    March 24, 2018 at 1:26 am #1747745
    seepeehay
    Participant

    Sometimes, they treat supplies as prepaid expense but even if it was a prepaid expense, I'd answer III and IV. Some call inventory as supplies, like “inventory supplies” I guess it would just depend on the choices given. If there's no III and IV choice then that means, they treat it as inventory.

    March 24, 2018 at 1:53 am #1747748
    seepeehay
    Participant

    ebony, Revaluation on OCI only applies to fixed assets and Intangibles. Inventory on IFRS is valued lower of Cost or NRV (Selling price minus costs to complete and dispose). Inventory on US GAAP depends on what kind of inventory costing they use. All methods except LIFO use Lower of COST and NRV. If it's LIFO, it's lower of COST or MARKET. Market is the current replacement cost provided it doesn't exceed NRV (ceiling) nor fall below NRV minus profit margin (floor).

    March 25, 2018 at 5:25 am #1748711
    srp
    Participant

    I failed my first attempt for FAR (got a horrible score, dont think anyone's got that bad) Now I'm very scared to even start studying for it. I dont know why but whenever I think of FAR, I really want to run the other way. Any tips on how to start or tackle FAR? I need to pass my exam this time orelse my credit expires. I have no motivation left in me.

    Somebody help please..?

    March 25, 2018 at 9:52 am #1748790
    mpr
    Participant

    I sit for FAR on April 3rd (9 days)… any suggestions on what to do in the last 5-7 days? should I really focus on SIMs or MCQs? from what I've seen sims have been brutal this year

    P.S. this is my first exam to sit for, wish me luck

    March 25, 2018 at 8:52 pm #1749144
    mpr
    Participant

    I figured I would share this… many people say they benefit from studying the blue prints so I compiled a list of items that are fair game for TBS according to the 2018 blur prints

    FAIR GAME FOR FAR SIMS

    BALANCE SHEET

    INCOME STATEMENT

    STATEMENT OF COMPREHENSIVE INCOME

    STATEMENT OF CHANGES IN EQUITY

    STATEMENT OF CASH FLOWS

    NOTES

    CONSOLIDATED F/S

    CASH RECONCILIATION

    TRADE RECEIVABLES

    INVENTORY

    PPE

    PAYABLES AND ACCRUED LIABILITIES

    REVENUE RECOGNITION

    ACCOUNTING CHANGES AND ERROR CORRECTIONS

    CONTINGENCIES AND COMMITMENTS – RECOGNITION OR DISCLOSURE?

    LEASES

    SUBSEQUENT EVENTS

    March 26, 2018 at 6:01 am #1749254
    MountainAccountant
    Participant

    For those who have Becker and are using the 3.0 FAR book, is there a way to print the 3.1 updates instead of buying the 3.1 book?

    Thanks!!!

    March 26, 2018 at 12:29 pm #1749618
    Anonymous
    Inactive

    Taking FAR 4/2 and taking Audit 6/5.

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