[Anonymous]

Hi,

I have FAR exam on the 14th…1st CPA exam so very very nervous. I’ve started having last minutes confusion in some topics….and cant decide what to revise or what to study. Can someone help me with these….they may sound silly to you…

1). Pension

a. While calculating ending PBO, do you add all Pension Cost derived (all 6 components) or only service cost and Interest cost? I see a different application in Wiley example and different in simulation solution. Help!

b). What things about Post retirement benefit obligation are important? I cant seem to understand that.

2). This is truely silly, but while doing Cash Flow, do the items need to be in order as long as they are in the right category? I mean all Operating Cash flows are in the operating, but i mean the order of depreciation expense, loss from amortization of bond….etc.

3). Do you think SFAS 141 R would be a probable simulation question? I’m ok with MCQ in consolidation but the long question makes me nervous for some reason….its been out for 6 months now….even if they give it for simulation, it shouldnt be very difficult right???

I very badly need a moral boost up! ….and answers to these questions!

Thanks everyone!

Dharana

[Anonymous]

1.) When you calculate ending PBO you do not use all six components of pension cost. You do use the following however: Service Cost (adds to PBO), Interest Cost (adds to PBO), Change in Prior Service Cost (adds, but this amount is amortized for pension cost), Loss or Gain from Plan Revision (adds or subtracts), and finally Payments to Retirees (subtracts from PBO). To lay it out a bit better, it looks like the following:

.. Beginning PBO

+ Service Cost

+ Interest Cost

+ Prior Service Cost

+ Loss or Gain on PBO Revision

– Retiree Benefits Paid

= Ending PBO

I don't remember too much about the Post Retirement Benefit Obligations other than an amortization period of 20 years instead of 15 years for the amortization of the transition obligation.

2.) For exam purposes the ordering of items within the cash flows statement (i.e., whether or not an increase in inventory is listed before an increase in A/R) doesn't matter. For the indirect method the non-cash items are usually listed before the cash adjustment items (so here depreciation would be listed before changes in A/R, A/P, etc.). I don't think you're going to get a question asking you anything like this and on a simulation if you got a cash flow problem I find it highly unlikely they would dock you points for improper ordering, unless they explicitly state what they want.

3.) To be honest almost anything is testable in a simulation. It seems like the AICPA is moving away from testing an entire sim on a single topic (i.e., four tabs on bonds payable and related topics) but instead towards testing a range of topics with different, independent scenarios. Consolidation seems like it could be a very testable sim topic especially considering it's difficult to ask extensive questions on this topic in the M/C. I think you'll find the hardest simulations aren't the ones where you simply don't know the material but rather the ones where you aren't quite sure how to answer or what they are looking for. I had a sim on a certain topic which I knew the material like the back of hand but I couldn't figure out how they wanted me to answer it for the life of me.

Don't let FAR get you down. I felt sub-par walking out of the exam and the two month wait for my score was just as bad.

[strider4216]

to be honest I don't get pensions at all…I'm pretty solid (80% or more) on the first four chapters, chapter 5 took me a while but I got it, though I haven't looked at it in a few days…chapter 6 pensions I am just completely lost, and don't want to waste time even stressing over it, income taxes I got they aren't that hard imo…right now I'm on chapter 7, I've done financial instruments and that was a breeze, now I'm doing SH equity…I need to finish this and 8 today so I can do 9 tomorrow and take the test on tuesday…

I know i'm cutting this real short, but if I had more time I'd just slack off and end up in the same position…GL to you OP, I wouldn't stress if you don't master everything 100%, there's just too much shit on this section…I'm just praying I won't see pensions because that is the one area I just said fu** it.

[strider4216]

jaywalk thanks for that link, been meaning to look for it..I too didn't do any sims for FAR…I didn't do them for AUD or REG either and passed so figured it's a waste of time…good luck to both of you guys, looks like we all got some cramming to do.

[Anonymous]

Thanks CapitalGains! I have 3 more days so cramming thru all chapters for the last time….it's a relief to know that everyone doesnt know 100%….I'd be very happy if i got the 75%…. I'm sure its the same with rest of you. May we all get this done this time, and never have to cry over FAR again!! Good luck everyone!

[shikhye]

hey guys, just wanted to encourage you guys to keep studying. Don't worry. Take a deep breath and try to keep learning until the day of the test. On the day of, I skimmed through my review book (took me two hours) and I took the test. During the test I spent too much time on the mcq's so I did not have enough time to finish the simulation. I only had 13 minutes left when I started the 2nd sim. I was freaking out and I wanted to just take the computer with me and some how hack the clock so it stops counting. My brain was running so fast… my eyes were as big as meatballs but nothing was getting to me. I was about to get a nervous breakdown. Then I closed my eyes for 5 seconds, folded my hands, said a prayer, and calmly tried to finish as much as I could. I could not finish 2 tabs but heck, that was the best I could do. I passed FAR with 87. I'm done with all my exams and I'm just waiting for my state to approve my application for license. I am proud that I persevered and finished the race. That said, I have a lot of respect for you guys for persevering…. The day does come when you do pass all of the exams…. The feeling you will get is unexplainable. No one can prepare you for it. It is a high that you never felt before. And the CPA title will follow you wherever you go. I hope this motivates you to finish the race. Good luck!

[houstoncpa]

Thanks for the motivation Shikye

[Anonymous]

I love you guys……… I have been stressing so much about this test. I have turned into a lunatic and very nearly lost a boyfriend because of my poor behavior and neglect of all things unrelated to the cpa. I am pretty sure when I pass this test it will be one of the top 10 moments of my life. Good luck to all and I hope you pass!

[Anonymous]

Hi Shikhye,

Did that actually happen to you in FAR exam?? Thats what happened to me today! and so you scored 87 in the same exam?? wow!! maybe i have a chance of 75….. i am left so blank….i studied really hard…i've never ever studied anything like this before….so m feeling very empty today….dont want to go over FAR stress again…and this is my first CPA exam….have to start preparing for AUD now, thats scheduled 3 weeks from now, but i'm so drained out today….like life sucked out of me….because all these days its just been FAR in my head and nothing else….and it had such a bad ending in the exam…dont know how the MCQs went either…. 🙁

[shikhye]

dharana,

yes it actually happened. after I took the exam I tried searching online if people could pass even when they didn't finish the simulation… I couldn't find the answer so I thought it wasn't possible. But it turned out I got a 87. Apparently many people on this site also experienced the same thing. I should have joined this site earlier… I could have lessened the days of my depression… My younger brother is going to take the exam so I encouraged him to check out another71. All of my peers at my audit firm use this site to vent out our stress! btw it was not just FAR but I passed REG the same way… This is not to discourage people to think that simulations aren't worth much or that you don't need to study much. I studied a lot. In the middle of my journey, I thought I was never going to make it. But I persevered and eventually passed all. I actually respect people like jeff who did not pass the CPA exam for the first time. Sure, there are some people who trumpet passing all the exams the first time… which is good and congrats to them. But they did not encourage me when I was going through hell studying for these exams. Just keep persevering guys each day that goes by means you are a day closer to becoming a CPA! haha. Then you could focus on studying for the CFA… darn… and stress again for another 3 years 🙂

[Anonymous]

Shikhye,

Thank you so much for the motivation! I have 2 weeks left for AUD now and not much done….so i've stopped worrying about FAR (for these 2 weeks 🙂 ) I'm sure my results will be out in another 2/3 weeks and i'll have to study for FAR or REG…depending upon the results…i agree with you….this is a great forum….i dont have many people around doing CPA so this is the only place where i can share my stress (and hopefully success some day!)

Thanks again!

[75 CPA]

edit – I know you were being helpful, but no posting of copyrighted handouts, please.

-Jeff

[Author]

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