[Anonymous]

I need some help with Not-for-Profit accounting and J/E.

Feb 1 – A not-for-profit receives as a donation a painting with a fair market value of $100,000 and a historical cost of $75,000. The not-for-profit org intends to sell this painting in the future.

Jun 5 – The painting is impaired for $20,000

Oct 20 – The painting is sold with a $40,000 profit

For Feb 1 – the painting is recorded at fair market value in the not-for-profit org’s books. What would be the J/E since the asset will be held for sale?

June 5 – How should I record this impairment?

Oct 20 – Then for what price was the painting sold?

[Anonymous]

Not sure if this is even on the exam. I studied for FAR like crazy and never recalled studying for impairments on NFP org. Maybe this is one of the July changes?? Hmm. Sorry I can't be of much help, but I just thought I just thought that this question is rather odd. Hopefully, someone here can clarify as I'm just as stunned as you are.

[hilaryh_88]

I just finished watching and doing MC with Yaeger CRAM for NFP and they never mentioned anything about impairments. I'm guessing you got this question from somewhere though. Where did the problem come from? I looked through the July 1, 2011 changes and didn't see anything related to NFP.

AUD - 82 Becker
BEC - 75 Becker
REG - 71, 82 Becker
FAR - 66,61,71,74,70 and #6 80!!!! FINALLY DONE!!! 9/20/12
Yaeger and Yaeger CRAM for the final battle!

[Anonymous]

I would appreciate any help/insight.

[Anonymous]

To be honest, I think you should concentrate more on impairments under GAAP and IFRS. You're more likely to get tested on those rather than NFP Impairments. I seriously doubt you'd get a question on that on your exam.

[Anonymous]

I did some research and I think it would go something like this:

Feb 1

Painting/Asset 100,000

_______Revenue or Donated Asset 100,000

June 20

Impairment Loss 20,000

_______Asset 20,000

Oct 20

Cash 120,000

________Asset 80,000

________Gain on Sale 40,000

I still need some help on this question: https://www.another71.com/cpa-exam-forum/topic/far-question-individual-foreign-transactions

[Anonymous]

@ILResults- It's because no one knows. None of us know yet many of us managed to pass the exam. Trust me, I doubt that the OP will get a question on this. But if you do get one question, it's not going to make that much of a difference in your score. But if he/she feels the need to spend so much time on this, then fine. But I doubt anyone will be able to help out. With an exam like FAR, you need to use your study time efficiently. Spending so much time on this topic is not an efficient way of studying for this kind of an exam, IMHO. Unless, of course, this is one of the July updates. If that's the case, then I'm wrong.

It's time like these when I'm thankful I got FAR out of the way. It's really a ridiculous exam with such a broad range of difficult topics, many of which will not even show up on the exam.

[Anonymous]

If you get that nasty of a question an exam, that means you did damn well in your first testlet or two and have a really hard testlet in front of you. At that point, you're going to pass.

Don't worry about it. You don't need to know every detail to pass.

[mla1169]

Be careful with the exam disclosures MB. Just sayin.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Author]

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