[Anonymous]

Hey everyone,

I’m new here. I’m thinking of taking the FAR at the end of November (it’s my first CPA exam). But I am really unsure about myself. Maybe someone here with some experience can help me out.

I’m using Becker’s self-study. I went through all the sections, read the book, watched the videos, and did the MCQs. I got most of the stuff but some of the details I just didn’t get. Now I’m redoing all the lectures, one lecture per day. I did F1-5, will do F6-7 through the weekend, and the rest next week.

I know a lot of the stuff, but I still don’t feel comfortable. All the little details. I just can’t remember them all.

I’m studying 4-6 hours a day on Becker’s, then I watch YouTube videos on accounting. Seriously. That’s what I’m listening to on the way to and from work. (If anyone wants, I can post a link to Rutgers on YouTube, they have great lectures on topics like leases, NFP, etc., though a bit long.) Whenever I have an extra minute I’m studying. I stooped following news and sports. I have no idea how many people have Ebola, how many people ISIS recently killed, or who’s poised to win the midterms. All I’m doing is studying and studying and studying.

When I’m not studying I get nervous. I feel like I’m wasting my time. When my wife and kids talk to me, I’m getting annoyed.

At night, I dream about leases, bonds, PV, FMV, consolidations, etc.

Anyway, is getting all the little details really important? I’m taking notes when I’m doing the MCQs, see a sample after my post. Are details like the ones I have in the sample really important to remember?

I have a 4.0 GPA, yet still find FAR to be tough. I think the reason is that I have to understand things. If I don’t understand something, it just doesn’t register in my head. FAR, at least the way Becker’s is presenting it, is all about memorization. I don’t understand the logic behind most of the rules (that’s why I like the Rutgers lectures, they “explain” the rules).

Also, I’m getting between 80-95 on my MCQs. I’m comfortable in most areas including NFP. But there are areas I can improve, like pensions. When do I know I’m ready to take my exam?

Thanks for hearing me out. Just having a place to vent and rant makes me feel better….

Good luck all with your studying.

---

Here’s a sample of my notes:

Review Instalment sales F2, like-kind exchanges

Officers’ salaries ARE related parties discourse under IFRS (not GAAP)

10% of liabilities is NOT a measurement used for segment reporting

Form 6-K semiannually foreign private issuers. Unaudited

Accelerated filer 75. LARGE accelerated filer 60

Form 11-K, employee benefit plan. DO include FS of plan

Maintaining goodwill = expense

R&D done by third party on your behalf = expense

Un-mailed checks = do not record

Prototype

Goodwill impairment = reporting unit GAPP, cash generating unit IFSR

Under IFRS, goodwill impairment CV – grater of FV (minus cost to sell) and future cash flows (value in use)

Held to maturity long AND SHORT term bonds = carrying amount (unless permanently impaired)

Foreign exchange gains and losses from AFS “debt” securities = IS under IFRS

******BE CAREFUL WITH THE DATES!!!!!!!!!!!!!!!!!!!!!****

Goodwill created under equity investment is NOT subject to impairment test. The entire investment, however, is

From equity to cost = do NOT restate. Use equity for beginning and cost for end. From cost to equity, restate.

100% of sub dividends are eliminated in consolidation (NCI dividends are debited to NCI)

Actual refinancing of a short term note to long term after BS date before FS release = long term liability

Factoring = AR. Discounting = Notes receivable

Deferred tax liability arising from depreciation = Long term liability

Postdated checks is NOT cash/cash equivalent, neither is cash in sinking bond

Prepaid asset is NOT part of quick ratio

Overdrafts are recorded in liability section. It is NOT cash. (Unless it’s the same bank of a positive balance account and bank can offset the overdraft)

Interest during construction should be capitalized even for own building

Under IFRS an individual assets can NOT be revalued alone. The ENTIRE CLASS must be revalued

Interest on land should NOT be capitalized, unless during construction???????. Architect fees = building. Sewage = land improvement

Group = similar assets. Composite = dissimilar

Impairment loss is recorded in Accumulated Depreciation account

BE CAREFUL WITH THE DATES!!!!!!!!!!!!!!!!!!!!!

EXPENSE IMMEDIATELY capital assets used in r&d (if no alternative use) even if r&d takes more than a year. DO NOT DEPRECIATE

Personal FS = Sttmnt of FINANCIAL CONDITION and sttmnt of CHANGES IN NET WORTH

[Anonymous]

Zubairs, be my guest. Fell free to post your questions. It'll be a good way for me to see if I really know my stuff.

[CPAfit]

ok can you explain Basic EPS vs. Diluted EPS

AUD - 82
BEC - 78
FAR - 78
REG - 83

HIYA!

NH Licensed CPA - Jun 2018

[Rocky123]

I like your notes! You should write some more on here! LOL.

I just wrote a post about whether I should make notes. I think I will after reading yours! Looks like a great study tool.

I think you will be ready at the end of November. Schedule your exam. Good luck!

And I like playonwards advice. Reread it.

The tallest oak in the forest was once just a little nut that held its ground.

AUD-PASS
BEC-PASS
REG-PASS
FAR-PASS

Rocky123, CPA

[Anonymous]

Maybe we can make a Google Doc? Maybe the notes should be something more like “tips” rather than detailed notes that are basically a rewrite of Becker/Ninja material.

[Kimboroni]

I think you'll be burnt out by the end of November and should try to get in sooner. Do you have your NTS? I'm also concerned that if you wait too long to schedule you won't be able to get a spot in November at all.

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[sumersrose]

I also like your notes 🙂

This was consistently in mine too — “BE CAREFUL WITH THE DATES”

Another popular one for me is more a reminder to myself “slow down and really read the question”

On FAR, I used a list of notes like you. They actually were part of my last to look over sheets before I walked into the test center. I also have those sticky page markers and used to flag my weak areas when I reviewed my mcq's OR areas that I thought were very important. Actually, looking at my Becker books right now and FAR has the most flagged pages! 🙂 AUD has the least flags.

REG: 2/26/2014 Pass
BEC: 5/29/2014 Pass
FAR: 8/31/2014 Pass
AUD: 4th Attempt, 8/25/15 ... Omg, PASS w/a 93 and I'm done!!!

[Anonymous]

You have a good point Kimberoni.

November is filling up quick. There aren't too many decent time slots left in my area and I have seven testing centers within an hour of me.

You could end up having to take this thing on Black Friday with a turkey hangover.

[Rocky123]

@sumersrose

Yes. SLOW DOWN AND READ THE QUESTION.

I've gotten so many wrong in practice questions because of that.

The tallest oak in the forest was once just a little nut that held its ground.

AUD-PASS
BEC-PASS
REG-PASS
FAR-PASS

Rocky123, CPA

[Anonymous]

@zubairs

Basic EPS is simple: it’s how much income every share made. If the company made $1,000 profit and has 1000 shares, every share made 1 dollar. In other words, every share went up by a dollar. That’s simple. Right?

EPS is also a measurement on a company’s performance. The better EPS, the more every share earned, the better a company performed. Investors want to invest in companies that have higher EPS.

This creates a problem. To have higher EPS, a company can lower their shares by shifting some shares into other instruments, like convertible bonds. If a company needs money, it can raise money 2 ways, selling stock and borrowing. But selling stock will make EPS go down (the more shares outstanding, the lower EPS gets) so instead of selling mew shares the company can say to a potential investor: we’ll really sell you shares, but let’s call it bonds. You’ll get a bond, but you can convert it to shares whenever you want.

The company simply shifted the shares into a bond, and made their EPS higher. It’s unfair to other companies whose performance are measured against this company.

The solution? A company must present a “what if” scenario. What if all the things that can be shares where realized, what if the bond was converted in stock, how would their EPS look like then? That’s Diluted EPS. Every instrument that can be a share, must be added to the share. That will usually cause EPS to go down, and will present a fairer presentation.

That’s EPS in short. Of course, there are many, many details. If you’d like me to expand on a detail feel free to ask.

Good luck with your exam!!!!!!!

[Anonymous]

@Kimboroni, I have my NTS, I'm just not sure when to take the exam. I want to be ready, but I don't want to have extra days to forget my stuff…I'll have a better idea next week.

[CPAfit]

@aaa111 thanks a lot.

Deferred tax asset vs deferred tax liability. What does it actually mean (dta/dtl) and how do you report it on the F/S?

AUD - 82
BEC - 78
FAR - 78
REG - 83

HIYA!

NH Licensed CPA - Jun 2018

[Mamabear]

Be careful with burnout. I studied so intensely for my first one that I burned myself out before the exam. You sound ready to me. I wouldn't put another 4 weeks on top of what you've already done or you could start having diminishing returns on your studying. Good luck!!

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Anonymous]

@zubairs

When you have more GAAP income (GI) than tax income (TI), your income tax expense will be your tax IT*the tax rate. For the portion of the GI that isn’t TI, you will not pay taxes on; it’s not TI. That’s fine if the GI will never become GI, like municipal bonds.

However, there are income that are both GI and TI, the difference is only timing. E.g. deferred rent revenue, it’s TI when collected, but GI when earned (amortize during the duration of the lease). So let’s say you have $100 deferred rent revenue with a tax rate of 30%, you will pay $30 of tax on that revenue. Problem is you haven’t earned the revue yet, so you can’t expense the expense. MATCHING principle. GAAP says defer the expense, do not recognize it this year, recognize it when the revenue is earned. It is just like any other prepaid expense, an asset. The JE is DE: DTA CR: Cash

We have the same problem if GI this year is higher than TI this year, you’ll only pay taxes on your current TI, but since the GI will eventually become TI in the future, you will have to pay taxes on it. So you have to match the tax expense to the revenue. GAAP says recognize the expense this year, accrue the expense, it becomes a liability just like other accrued expense. The JE: DE: Tax Expense CR: DTL

Ok.I gtg now.Will be back later.

[CPAfit]

@aaa111 it's making sense to me now. ok when you get back

can you give me a brief explanation on bonds?

AUD - 82
BEC - 78
FAR - 78
REG - 83

HIYA!

NH Licensed CPA - Jun 2018

[Skynet]

@ aaa111 – There is no shame in what you are doing and overpreparing. This is the CPA exams. It's better to be overprepared then underprepared as you don't really know what to expect during test time. With FAR containing a ton of information, the more studying the better which means a higher chance of passing.

AUD - 90
BEC - 78
FAR - 84
REG - 87

World Domination Plan

Phase I : Pass CPA Exams - Complete
Phase II : Megan Fox - In Progress
Phase III : Megan Fox & Scarlett Johansson Lingerie Pillow Fight
Phase IV : Form the new Charlie's Angels with Megan Fox, Scarlett Johansson, & Gal Gadot
Phase V : TBD

BEC : 78
REG : 87
FAR : 84
AUD : 90

World Domination Plan

Phase I : Pass CPA Exams - Complete
Phase II : Megan Fox - Initiated
Phase III : Bring back 8-Tracks
Phase IV : Megan Fox & Scarlett Johansson Lingerie Pillow Fight
Phase V : TBA

[Author]

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