[jeff]

FAR Study Group Links and Resources:

1. NINJA Monthly – $67 FAR Course
2. Free FAR Notes
3. FAR Course Comparison
4. How to Pass FAR (with NINJA)
5. How to Pass FAR (in 20 Days)
6. How to Pass FAR (after Failing)

See Also:

• FAR Study Group
• AUD Study Group
• REG Study Group
• BEC Study Group

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Huilly]

Hi guys! I'm studying for FAR. Probably will take it mid-April or early May. Hope I pass it on my first try (finger crossed)

[Stevie]

Hi all,

Would it be more efficient to practice the MC cumulatively or section by section? I am worried about forgetting information.

Thanks

[timmyj]

Question # 62 | Blueprint Area: 3 K : Fair Value Measurements

On January 1, year 1, Peabody Co. purchased an investment for $400,000 that represented 30% of Newman Corp.’s outstanding voting stock. For year 1, Newman reported net income of $60,000 and paid dividends of $20,000. At year end, the fair value of Peabody’s investment in Newman was $410,000. Peabody elected the fair value option for this investment. What amount should Peabody recognize in net income for year 1 attributable to the investment?

A. $6,000
B. $10,000
C. $16,000
D. $18,000
You are correct, the answer is C.
Entities may choose to measure eligible items at fair value (the “fair value option”) that are not cur­rently required to be measured at fair value. The decision to elect the fair value option is applied instrument by instrument, is irrevocable, and is applied only to an entire instrument. A business entity shall report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. The Investment in Newman would be increased by 30% of the net income and decreased by 30% of the dividends, resulting in a year end carrying amount of $412,000 ($400,000 + 18,000 – 6,000). Since the fair value was $410,000, Peabody had an unrealized loss of $2,000. This loss is netted against the investment income previously recognized of $18,000 for a $16,000 net income impact. Dividends do not affect net income (they reduce the Investment account).

-The above is accounting for an investment with the equity method, but then subsequently revalues it to fair value. Is this correct treatment, if it was valued at fair value why would we apply the equity method (the gain from the income) then revalue to fair value and not just value at fair value for a loss of $2,000 and not a gain for $16,000?

[Puppykoala]

Does anyone else encounter great difficulty understanding/figuring out business consolidations in FAR? I'm about to cry over the MCQs as I very often just make best guesses. Any good way to enhance understanding of this topic? I'm using Becker but I don't think it does gj explaining and connecting dots for me.

[SeanW]

Steven,

I've had the best success by doing the multiple choice questions after I study each section and then going back and doing all of the multiple choice questions together (when I've finished the entire textbook) to see what areas I am still weakest at and then I go back and study that section again. It gives me a good idea of what stuck and what did not. That's just what works for me though.

[SeanW]

Do you have a sample question that illustrates what you are struggling with for consolidations?

[Cjsr]

Puppykoala, I was using Becker for consolidations also, and didn't get the whole thing. For my second try, I added Ninja book and MCQs, and had a breakthrough. It was Becker and Ninja together that did it for me. The thing that was hanging me up was that until Ninja I didn't realize that the worksheet was not something that was going into the ledgers. It was completely separate and just helped you figure out what to put on the reports.

BEC. 83. 9 Jan 2016
REG. 83. 30 Jan 2016
AUD. 92. 27 May 2016

Becker FastPass with in-class videos

[mina9000]

Hello all,

Would it be progressively productive to rehearse the MC in total or area by segment? I am stressed over overlooking data.

Much obliged

[Luke]

Hello all,
I am taking FAR in early March, and I have just completed the Becker modules, and am now in review/study mode. I was just wondering if anyone who has taken it can chime in on what is heavily tested? I heard Government and Pensions are tested quite a bit. Also wondering if the FASB ASC 40-01-53-01 thing is going to be actually tested? Like do we have to know those numbers, or are they just a part of Becker? Any information would be awesome!
Thanks, and good luck to everyone, WE CAN DO IT!!

[Elizabeth]

@luke
Typically there isn't MCQs asking what is the ASC section for lets say… leases? At least, I have never seen any. Where I have seen them is in research questions, but you use the authoritative guidance to find a code section based on a given scenario.

@ everyone…
As I am nearing my test date, what do y'all do to prepare just before the exam (i.e. the final review, work MCQs, SIMs, etc.)?

[Michelle]

Are there any live study groups in the north NJ or NYC area? I'm studying for FAR now and planning to take it in the beginning of April.

Also, what's the minimum of time that's reasonable to study for FAR? Right now, I've scheduled myself 5 weeks but I don't work yet (I just moved) so I have more time to study than most people.

AUD: passed
REG: passed
BEC: waiting for score
FAR:

[Halyna]

Hi guys,

Please help me here if possible.

Zeta Co. reported sales revenue of $4,600,000 in its Income Statement for the year ended December 31, 20X1. Additional information is as follows:

12/31/X0 12/31/X1
Accounts receivable $1,000,000 $1,300,000
Allowance for uncollectible accounts (60,000) (110,000)
Zeta wrote off uncollectible accounts totaling $20,000 during 20X1. Under the cash basis of accounting, Zeta would have reported 20X1 sales of:

Question – why should we subtract $20,000? Bad debt increases expense, so decreases net income (accrual basis). In my opinion, to convert accrual net income to cash net income, we have to add 20,000.

Thank you for all your help.

[Luke]

@Michelle
I can't help you with study groups but as for budgeting time… I only work part time so I'm kind of in the same boat as you. I think 5 weeks is doable IF you set yourself to a strict schedule. You're gonna have to complete about 3 modules every day (Becker) because there's like 85 modules in all plus simulations and those practice tests. So I would say take 6 weeks just to be safe. 5-6 weeks, yeah. Or you can push it to like 4 modules a day #beastmode

[fsin1328]

HI ALL,

I am currently studying for FAR (using GLEIM). I work FullTime , but typically study about 2-3 hours on weekday and about 5-6 hours on weekends. Gleim is 20 chapters in total and I have been studying since mid Jan. I had my test shed. for april 13th but recently moved it to april 27 because I feel like I will not accomplish all 20 chapters in that time frame. Any one else having the same issuing w/ Gleim (or any other review system ) . I been doing a chapter a week, Gleim's chapters are very bulky and detailed. As I review each chapter I always do about 20-25 MC for each sub unit.. still feel like this is not sufficient and I will not be prepared for my april 27 test date. ( FAR IS TRULY A PAIN) Any advice is appreciated in advance. Thanks all, and good luck to all.

Best,

F

[leanna]

@michelle
Hi. I am in Jersey City and I am about 15% through the material in Wiley. I’d love to go through flash cards and oral quizzes and lessons for some of qualitative portions of the exam. I am available weekends and evenings.

[Author]

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