Mammabear – I agree with your point about using the literature to aid your SIMS all around – I didn't mention that. 🙂
@jasbeerch – I like that list.. and I haven't seen that link before, so ityll be useful to me as well! thanks! After memorizing the JEs be sure you know examples as well and you'll be set!
Convertible bond is not that simple, but it becomes easier with lots of practise. Just keep in mind that a company does not recognise gain or loss when bonds are converted into common stock.
Hi all, I have taken all the exam sections once & haven't passed any of them yet. Though to be honest, I didn't give it my all before, since I was busy planning my wedding at the same time. I underestimated how difficult the exams were & how much time was required to plan a wedding! Anyway, here I am starting again with FAR this time. I am having trouble with motivating myself to study, since I am overwhelmed with the volume of material you need to know to pass! I think this forum can help keep me motivated. Just quickly reading over some past comments today helped me realize I'm not alone in this journey… Thanks for that!
One area that I struggled with the most on all sections of the exam was the research question. I have such trouble finding what I'm looking for in the authoritative literature. Do you have any tips for me? I'm sure I just need to practice more, but I'm not sure how to do so – is there a site where you can practice searching the AL? Thanks so much! And good luck to all of you with your studies!
The WTB has quite a few research questions and a sample of the AL you can use to practice if you have the WileyTest Bank. I don't know about any other review materials. I think everyone with an active NTS has a free 6 month subscription to the entire codification that you could also use.
Thanks @cpamommy. I have a CD from last year of the Wileytest bank, though I've never used the online portion of it. I might need to renew that subscription. I do have a valid NTS… How would I access the codification with that? Thanks!
just a quick question.. I wonder if the WTB you(others) are referring to is the same as the new Wiley CPAexcel that you log on through the efficient learning site?
@amazon–I don't know where to access the codification because I haven't used it, but I'm sure you can find the answer on either the AICPA or NASBA websites.
@CPAnoidea–Yes. the WTB is the WileyTest Bank (old name) and if you had purchased the use of that prior to the switchover then you have access to both the old version and the new version until June 1st. After June 1st, everyone has to use the new version. I haven't looked at the new version yet because I like the old version, but I'll have to use the new version for REG.
Ok I got some questions wrong during my review yesterday, lets see if some of you can refresh your brains on them.
Question: 1 Keller Corporation signed a 3-year lease for an automobile on December 1. The automobile had a list price of $17,000 and an estimated useful life of 8 years. The lease called for payments of $500 per month for 36 months. The present value of the $500 payments was $15,054 at Keller’s incremental borrowing rate and $15,496 at the lessor’s implicit rate, which is known to the lessee. Based on the above information, Keller should record the lease as a(n)
I believe that would be an operating lease because it doesn't meet any of the criteria of a captial lease (No option to purchase at the end of the lease for a bargain, no talk of the auto title going to Keller after the lease, 3 years is not at least 75% of the 8 year useful life, and the PV of the minimum lease payments of $15,054 is not at least 90% of the purchase price of $17,000). It doesn't mention keller selling it then immediately leasing it back. So Sale-leaseback is out too.
A lessee must report a lease as a capital lease if the present value of the minimum lease payments (MLP) is at least 90% of the fair value of the asset. If the lessor’s implicit rate is known to the lessee, that is the appropriate rate for discounting the MLP. Dividing the present value of the MLP by the list price of the automobile yields a result > 90% ($15,496 ÷ $17,000 = 91.2%). Thus, this lease must be classified by Keller as a capital lease.
Stoleway- this one is interesting! I'm pretty sure it's a capital lease because you use the lesser of the incremental borrowing or implicit rate. Remember that a smaller discount rate will lead to a larger PV, so you need to use the 15,496 as the PV which is over 90% of the fair value of 17K. Good one!
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