[Q2] FAR Study Group 2014 - Page 404

  • Creator
    Topic
  • #183478
    jeff
    Keymaster

    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

Viewing 15 replies - 6,046 through 6,060 (of 6,668 total)
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    Replies
  • #566614
    stoleway
    Participant

    Bearer bonds

    REG -63│ 84!!
    BEC- 59│70│ 71 │78!
    AUD- 75!
    FAR- 87!

    Mass-CPA

    #566615
    Guti
    Participant

    The following is a great article I found for tips during the last week of cramming. Good luck to all=

    READING VERSUS PRACTICING

    Many candidates spend too much time reading about CPA exam topics and too little time working the questions. Be aware of this problem and limit your reading time to no more than 25% of your total study time. If you are taking a CPA review, your reading time may even be cut to 10 to 15% be¬cause you're spending time in class hearing and learning the testable con¬cepts. As a result, you should spend less time reading. Studies have shown that reading is one of the least effective techniques for learning. Working the problems is the most effective study technique. Do the work and you will remember. The closer you do the work to the exam section date, the less chance you have of forgetting the concept. Beware, though-you can't pull an all-nighter for the CPA exam. You must begin the study and practice process well before your exam test date. Merely reading topics is not nearly enough-it's a dangerous process that often leads to forgetfulness. Again, the most effective study technique is that of working the problems. Do the work and you will remember the concepts. Spend time reading and you might remember the concepts, but chances are you will forget what you read quite quickly. With so much material to study and so little time left before your exam testing date, use the most effective technique.

    HOW MUCH PRACTICE?

    The phrase “Practice makes perfect” is a tease. CPA candidates don't need to obtain a state of perfection. CPA candidates know that they can be less than perfect and still pass the exam. How much time you should prac¬tice depends on many factors, such as how much time you have, what you do for work, how long ago you graduated from college, and what you recall from college learning experiences. There is no set length of time to study to ensure that you will pass. The suggestion is simple: Practice every minute that you have to spare. Make practice a priority. Schedule practice into the study schedule. Practice by using bite-size chunks of time. Work questions to assess your ability, and then continue to work questions until you correct as many of your weaknesses as you can.

    Don't underestimate the value of learning by practicing. So what if you attempt a question during your studies that you cannot answer? By going to the answer explanation in your study materials, you can learn just what you did wrong. Over the years the exam has changed from one of memorization to a critical thinking, analytical exam. Memorizing old CPA questions will no longer help you. You must know the concepts and understand them well enough to apply them. Practicing will help to crystallize the concept in your brain. It's almost like brainwashing oneself. What you are doing can cer¬tainly be said to be washing your brain and cleaning up the concept applica¬tion by practice. When you practice, you will find out for sure if you really know how to use what you have learned. When in doubt, find out! Go work the questions and find out what you don't know. Work to correct your weaknesses.

    FAR-84
    AUD-
    REG-
    BEC-

    #566616
    Anonymous
    Inactive

    I need help…

    On Jan 1 Yr 1 a Co issued its employees 10,000 shares of Restricted stock. On Jan 1 Y2 the company issued to its employees an additional 20,000 share of restricted stock. Additional information about the co stock is as follows:

    Date …………..FV

    Jan 1 Y1 …. 20

    Dec 31 Y1 …. 22

    Jan Y2 ……. 25

    Dec 31 Y2 ….. 30

    The shares vest at the end of a 4 yrs period. There are no forfeitures. What amount should be recorded as compensation expense for the 12 mth period ended Dec 31 y2 ?

    #566617
    stoleway
    Participant

    @KENADA

    is it 300,000?

    REG -63│ 84!!
    BEC- 59│70│ 71 │78!
    AUD- 75!
    FAR- 87!

    Mass-CPA

    #566618
    Anonymous
    Inactive

    Nope… want to try again ?

    anyone else want to have a go ?

    I think it was very strange this ones answer.

    #566619
    Anonymous
    Inactive

    good thing there are no forfeitures, because I have no idea what this word means 🙂

    #566620
    Anonymous
    Inactive

    maybe 150000?

    #566621
    Anonymous
    Inactive

    Hhahha – Anna 🙂 i didn't know what it meant but I was thinking maybe employees didn't the forfit this deal so I need to consider “everything”

    #566622
    stoleway
    Participant

    lol…is it $175,000?

    My last guess will be $275,000

    REG -63│ 84!!
    BEC- 59│70│ 71 │78!
    AUD- 75!
    FAR- 87!

    Mass-CPA

    #566623
    Anonymous
    Inactive

    don't answer yet, let me try again!!

    #566624
    Anonymous
    Inactive

    no, no idea

    #566625
    Anonymous
    Inactive

    No ..

    The Answer is 175,000

    I got 225,000 Myself

    But this is how they got 175,000

    Total compensation cost = Mkt Price on date of grant X no of restricted shares awarded.

    Therefore

    20 X 10,000 = 200,000

    25 X 20,000 = 500,000

    Now Total compensation is allocated to compensation expense on a STL basis over the time period in which the employee must provide service. This company has a four year service period.

    The compensation expense for the 12 months ended Dec Y2 would be one fourth of the company cost of yr 1 – 200,000 *1/4 = 50,000 and for Y2 – 500,000 * 1/4 = 125,000 = 175,000

    Now I got the 125,000 but the Y1 – I took 1/2 instead of 1/4. I don't understand why its 1/4 given for that 2 yrs have passed for the grant that took place Jan 1 Y1…. 🙁

    #566626
    Anonymous
    Inactive

    This is when I produce an imaginary Chumpal (Flip Flop) and bonk NASBA on the head LOL

    #566627
    Anonymous
    Inactive

    what a nightmare!

    1/4 because it's for 12 month period only?

    #566628
    stoleway
    Participant

    Hmm, so they divided the 500,000 by 4yrs even though the 20,000 shares was issued a year after the announcement date.

    I will keep this mind, thanks for sharing

    REG -63│ 84!!
    BEC- 59│70│ 71 │78!
    AUD- 75!
    FAR- 87!

    Mass-CPA

Viewing 15 replies - 6,046 through 6,060 (of 6,668 total)
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