[Anonymous]

1st full week of studying for my retake. I jumped right into Ninja MCQ, and about half way done. My average score is 78-the topics I am weak on are no surpise. I started to re-write my own notes today, but that was so de-motivating, I didn’t get very far. Tomorrow I need to re-write my notes (they are disjointed from my first test, I want to re-write them by topic in a new notebook). I really need to re-read my Becker book on acquisitions, equity method, and non-monetary exchanges so far. My plan is to get through the rest of the Ninja MCQ by end of next week, and re-write the rest of my notes. I then plan on printing out Ninja notes (didn’t utilize last time) and then jump into SIMS, while re-doing the missed MCQ in Ninja and continue re-reading the book. How are others approaching their re-take?

[Tncincy]

How's it going gang? This has been a real inspiring group toward studying. I hope everyone is taking that deep breathe, getting that extra cup of coffee and sticking with the study plans. Business is a little slow today so I have a few minutes to go over my goals and notes and make sure I am on target with my test date. Good luck to those that have taken the test already.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[SchruteBeet]

Hey guys, I am really struggling with what foreign exchange rates to use given different transactions. I got tripped up with the two questions below – didn't know why one uses spot rate and other uses forward rate. How do you know when to use which?

(1) Hunt Co. purchased merchandise for 300,000 British pounds from a vendor in London on November 30, 20X1. Payment in British pounds was due on January 30, 20X2. The exchange rates to purchase one pound were as follows:

11/30/X1 12/31/X1
———- ———-
Spot-rate $1.65 $1.62
30-day rate 1.64 1.59
60-day rate 1.63 1.56
In its December 31, 20X1, income statement, what amount should Hunt report as foreign exchange gain?

A. $12,000
B. $9,000
C. $6,000
D. $0

Explanation: B. FASB ASC 830-20 (Foreign Currency Transactions) provides that a gain or loss on a forward contract is computed by multiplying the foreign currency amount of the forward contract by the difference between the spot rate at the balance sheet date and the spot rate at the date of inception of the forward contract.

(2) On September 1, 20X1, Brady Corp. entered into a foreign exchange contract for speculative purposes by purchasing 50,000 deutsche marks for delivery in 60 days. The rates to exchange $1 for 1 deutsche mark follow:

09/01/X1 09/30/X1
——– ——–
Spot rate .75 .70
30-day forward rate .73 .72
60-day forward rate .74 .73
In its September 30, 20X1, income statement, what amount should Brady report as foreign exchange loss?

A.$2,500
B.$1,500
C.$1,000
D. 500

Explanation: C. On September 1, 20X1, the 60-day forward rate is used while the rate used on September 30, 20X1, is the 30-day rate. Since the forward contract (the derivative) is for purposes of speculation, any associated exchange gain or loss must be included in net income.

[mskcle]

So I took FAR Friday, and honestly I don't know how to feel about it. The first testlet wasn't really bad at all, the second testlet got a bit wordier as well as trickier in regards to NFP and small details in Becker that would go overlooked if not read multiple times. My SIMS were another story.. my first one came almost identically to one of the practice ones in regards to material and the rest of the sims were straight forward with most of the information being straight forward and provided. I finished with an hour left, and I spent at least 20 minutes using the AL to verify my last 3 SIMS since I had so much extra time which helped me correct one, and verify the other 2 as the example in the AL was almost identical to the problem which was crazy to me. My research was also very simple as to what the situation was and they said what they wanted for it and there wasn't much else in the AL for it to be like hmm could be this or that. I walked out very confident, but I am not sure if maybe I got lucky on my exam or all the studying I did for the last 2 months paid off. The exam seemed to also sway into my strong points. I don't think I got 100% on the SIMS but would be surprised if I did not get a major portion of the credit unless I thought they were simple and missed the key points (my worst fear) lol. So hopefully my good feeling is right on March 8 and I don't look like an idiot thinking it went really well!!

[SONA]

I am not sure if you have Roger, If yes then pg. 6-4 to 6-5 has great explanation and example.

SPECULATION: Two types of rate will be used,

Spot Rate, actual exchange rate on a particular date.
Forward rate, Which is what the exchange rate is expected to be at some point in the future.

Taking your example :The party is entering into forward contract.
therefore it will use the spot rate after 60 days forward rate on 9/1 (contract inception date) and since it's asking for reporting on 9/30 I/S, the 30 days forward rate 9/30 will be used in that case 0.74-0.72= -0.02 loss x 50000 = 1000 will be recognized. Because contract made for more but the rate is lower after 30 days.

I hope this helps. Also I got to do my revision 😉

[rencpa]

Example #1) Foreign Transaction

*when you buy (AP) or sell (AR)something

*use spot rate!!

* make JE:
1) when transaction happened (record AP or AR)
On November 30, year 1 when you purchase:
DR – Purchases/Inventory (300K * $1.65 = $495K)
CR – AP (300K * $1.65 = $495K)

2) at the BS date (G/L must be recorded & make adjustment to your AP or AR)
On 12/31/year 1 when make EOY Adjustments:
DR — AP (300K * ($ 1.65 – $1.62) $0.03 = $9K
CR — Foreign Exchange Gain = $9K

3) at the time the payment is made (AP)/cash received(AR)
On January 30, year 2:
DR — AP (300 * spot rate on 12/31/X1 $1.62 = $486K
CR — Cash (300 * spot rate on 1/30/X1); rate not provided in your example
DR or CR — (Plug) Foreign Currency Transaction G or L
(300 * spot rate difference between 12/31/X1 & 1/30/X2); rate not provided for 1/30/year 2

I saw someone explained the other example.

Check my work. Have been studying a lot today, so I am for sure tired. Just hope you got the point. My strong suggestion: 1) make JE!! 2) draw T a/c. This way Foreign exchange transactions are not as bad as they can be.

Currently, I am studying for BEC, but somehow this material has been tested for both, FAR and BEC.

[Allsheneededwassome]

@mskcle: sounds like you did really well. Congratulations!

I didn't think that research was tricky at all either. But my MCQs took way too long and I ran out of time in the end and couldn't finish one SIM even halfway. Perhaps I never prepared as well as I thought and that's going to Crome back to haunt me.

A lot of people on this thread seem to have done decently on FAR which surprised me. Good luck everyone

[msquared17]

I hope its been a productive study weekend for everyone. I think I have my mojo working again. I've finally finished F6 yesterday and I'm working on F7M5. Pensions weren't that bad at all. I'm sure its because its my second time around. Reading (skimming) and writing notes has definitely helped. I've had several “ah ha” moments that made things click for me. I also decided to just stick it out with FAR. I feel like I'm over the hump and I can see the end in sight. Hang in there everyone 🙂

[Anonymous]

@mskcle-my exam experience was similar, I am still thinking there was one SIM I could have totally screwed up, the research took me a little bit, but I hope I got it… Good luck on March 8th!
@msquared17-I had a ton of A-ha moments studying the second time, it's great!

[Anonymous]

Hey friends! Made a 73 on FAR back in November and was trending a 58 on McQ. Now I test again in 8 days and I'm trending a 63 with ~800 questions left. Should I just keep hammering mcqs or does anyone have any great tips? Was hoping to be trending at least a 70 when I sat for the exam. Listening to lectures at work but I'm only taking away a few bits from each since I'm also concentrated on work. How did everyone else spend their last week cramming for FAR?

[Tncincy]

@becomingkdcpa : the only thing you can do at this point, I think is keep doing the mcq's and really nailing down those that you get wrong. Good luck.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Anonymous]

@becomingkdcpa – honestly, just keep grinding the MCQs while identifying your weak area. Since you're using Ninja, you should be able to spot out where you have been struggling. I take FAR this Friday, and I have been grinding away Becker + Ninja MCQs like there is no tomorrow. Of course, I do the analysis level SIMs when I can.

[Anonymous]

Good luck you guys -those taking it this week or next you are so close!

[msquared17]

I wish I was taking FAR in this window. Oh well, I will be taking it the during the first week in April and REG in June (fingers crossed). Anywho – I'm really glad I decided to give myselft ample time to prepare. I'm staying the course of taking notes before doing mcq. Its time consuming but its what I need. I just finished F7 and plan to finish F8 by Friday night/Saturday morning.

My plan for the weekend: Saturday – Review/progress test F1-
Sunday – Review/progress test F5-F6.
I have a work conference next week so the only thing I will be doing is reviewing my notes for F1-F8.

I'm feeling accomplished 🙂

[SONA]

Can anyone please do the Journal entry of the following:

Payment for the early retirement of long-term bonds payable (carrying value $740,000) $750,000

AUD :72, Retake April.
FAR : 74, 9/Mar/2018
BEC : 75!
REG : 81!

[SchruteBeet]

Dr. Bonds Payable 740,000
Dr. Loss on retirement 1,000
Cr. Cash 750,000

[Author]

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