[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

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

[Anonymous]

Omg nevermind. I completely read the question wrong. I think I'm starting to lose my mind you guys…

this was the question “a change in accounting principle that would require retrospective application to all prior periods would be”

if I fail this test, im partially convinved that it will be due to my brain shutting down and that I can never manage to read the question all the way

[Anonymous]

Amanda

I think in previous page I about this for NJRU

Is a change in accounting principle – you change your Comparatives to match the Change and adjustments goes to RE opening balance for the first period presented. – Meaning your Current FS – you need to edit the comparatives – Cumulative Effect adjustments for the prior periods.

In Change due to Error – this is where you think to yourself – You F'up – so now you need to re-do the FS for the prior periods and reinstate them!

[Anonymous]

Okay so you would restate then for an error. And for a change in accounting principle, the adjustment to beginning RE would be for the earliest presented statement?

[Not a Quitter]

The question was not referring to taxes! Okay you guys confirmed what I thought. I'm not so sure about a few of the things I've seen on my review course.

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[NJPRU]

Amanda, I am running into a case of sleep deprivation.. I am so extremely tired after doing nearly 800 multiple choice questions in a 3 day period and studying 6 chapters while also rewriting my notes for each.. I'm sitting here at work, trying to consume coffee and that isn't even working.

I just keep telling myself that it will be worth it in the end and to push through.

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

Correct Amanda 🙂

[CPAfit]

@wanna_be thank you so much it means a lot to me 🙂 I will try my best to stay calm and get that 75. You guys have been really helpful and I will make sure that I don't disappoint you guys. As most of you might not know I have to travel to a different country to take the CPA exam and tonight will be mostly travel so i've stopped doing MCQs and SIMS for now and focusing on just reading NINJA notes and listen to NINJA audio. I guess I might try one or two 30 MCQ progress tests sometime tomorrow and that'll be it. Good luck to all

[Anonymous]

one more question- is depletion expense a permanent difference between tax and book?

[Anonymous]

Here's a question for everyone:

How do you determine the realized G/L for an AFS security?

How do you determine the realized G/ for a trading security?

[Anonymous]

Oh god. I just plan on guessing if I come across these questions. The computations for those topics are just a nightmare. Though if I can actually find some way to understand the trial balance for these things, it would help a lot.

[Anonymous]

I just finished doing investments and now doing Deferred taxes.

For your Questions on AFS and Trading Securities

This is actually a little hard to explain so I will try and anyone feel free to jump here and correct me as I am not 100% confident but I am able to do well in this in the Mcqs' – I dunno why.

There are so many “elements” that you need to think about IE are you electing Fair value Option or using Equity or Cost method method.

How do you determine the realized G/L for an AFS security?

Most cases AFS – Unrealised Gains / Losses – OCI as long as they have not elected Fair Value Option if they do goes to I/S

If they elect Fair Value options – Unrealised Gain / Losse – goes to IS

Realized Gain Loss due to sale or permanent impairment – always IS

How do you determine the realized G/ for a trading security?

This is the Easy one – It is always IS for both Unrealised Gain and Losses and Realised Gains and Losses.

If you are using something that is measured using the Equity method – It does not revalue at the end to FV.

[Anonymous]

I meant more like the actual calculation for determining the realized gain that goes to the I/S. but your answer is correct for where the unrealized g/l and realized g/l go!

Ps- I'm asking for other people to answer. I know the answer because it just tripped me up on the MCQS 🙂

[Anonymous]

so here's an actual question to apply that to:

In Year One, an investor buys shares of Company X for $6,000 and shares of Company Y for $11,000. By the end of that year, each of the investments has increased in value by $2,000. During Year Two, the shares of Company X are sold for $10,100. If these investments are viewed as available for sale securities, what income is recognized by the investor in its income statement as a result of this sale? The fair value option was not chosen by the investor.

[Anonymous]

Wait, I was just rereading your response…realized G/L from AFS securities goes to the IS regardless of whether it's the FV method..right?

[Anonymous]

For Deferred Tax if anyone wants a little thing to remember when problem solving the exam.

When I go sit far – its the first thing I will write on that board so I don't forget and keep things straight. I will write down the Expense Side as the Income Side is the opposite so nice to write down one side and then you know the other is the opposite

If you see your “Book Expense is Less than Tax Expense = DT Liability”

if you see your “Book Expense is More than Tax Expense = DT Asset”

For the Incomes in each case the Opposite is true

IE.

If you see your “Book Income is More than Tax Income = DT Liability”

If you see your “Book Income is Less than Tax Income = DT Asset”

[Author]

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