[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

[NYCaccountant]

LOL at Amor, I totally botched a SIM because of small stuff like that. Got home and realized I messed up completely. Just brought back memories. I kind of did the same for one of the REG sims, I think towards the end of the exam we start to lose mental focus. Take note to remember small stuff like that.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Anonymous]

@Alecia–Here are my tips:

Bonds: Know how to do an amortization table backwards and forwards for both discounts and premiums and the corresponding JEs to book the interest, the amortization of the discount/premium, and the original JE for the issues of the bond. Practice this several times so that you know that the amount paid is the stated rate * the face value of the bond and the interest expense is the effective/yield/market rate * the carrying value. The more you practice this the better you get at answering all the different questions associated with bond.

Pensions: Pensions involves quite a bit of memorization. Know the formula for calculating pension cost SIRAGE:

+ Service cost

+ Interest cost (=Beg PBO * discount rate)

– Return on plan assets (Expected or actual)

+ Amortization of Unrecognized prior service cost

-/+ (Gains) and losses

-/+ Existing net (asset) or obligation amortization

Also know that Actual Return on plan assets = Ending bal of plan assets-Beg bal of plan assets + benefits – contributions

Most of the remaining pension items are fact memorization and my suggestion is to do the flashcards until you know them all very well.

Error Correction:

Is also a great deal of memorization, but with the understanding of the concept behind it. You have to know which corrections affect which accounts and how long an error will go before it corrects itself. My suggestion for these is to go through the accounting changes section of the flashcards and to practice as many error correction calculations as you can. I wish I had a better tip for studying those but I deal with them for a living so I didn't study that section very much.

As always–listen to the NINJA Audio as much as you can and pick up on any tips that Jeff gives. I also suggest that if you are having a hard time in a certain area that you go through that entire section in the WTB at one time, even if it is 60 questions. By the end of a huge quiz session on one topic I usually understand the concepts because I saw them over and over in one sitting. Taking a multitopic quiz before you've nailed down all the topics doesn't truly test your knowledge in any one topic because you may only see one question on it, get it right, and the WTB shows you have a 100 score for that topic which isn't a true picture of your knowledge at all.

[Anonymous]

This was post 5 days ago about everything I still needed to do before the test.

I haven't touched NFP. I took one look at pensions last night and promptly closed the notes. I did horribly on Consolidations, foreigh currency translations, debt restructuring, and Monetary CA and CL so I have to start fresh on all those sections. I have 592 MCQ and 25 SIMS that I haven't seen yet and 1087 MCQ and 53 SIMS that I haven't seen twice. I have Tuesdays and Thursdays from 6-12 p.m. and from 1:00 p.m. on Saturdays to 12:00 p.m. on Sundays without the kids to study as much as I can. That's approximately 20 hours a week for 3 weeks. Is that enough time considering I have touched several sections yet?

In one week I have done pensions (scoring in the 80s now), NPF (scoring in the 60s), Monetary CA/CL (scoring in the 80s), Shareholders Equity (still don't get the more complex problems), and done a couple refresher quizzes on other topics. My not seen yet questions went from 592 down to 274 and my seen less than twice only went down 60 MCQ. I also went through 3 years of AICPA release questions. I may not be exam ready but I'm getting there!!!! Of course it's Sunday and I'm always optimistic after a Power weekend. I don't lose it until Tuesdays. Hahaha

[alecia18210]

Thank you, CPAMommyof3 ! I appreciate you always taking the time to explain and assist. I started out with your method and that's how I learn nonprofit. Kinda lose focus;-) So, I will go back do nonstop MCQ in each area until I grasp the subject matter before I do any more comprehensive test. Continue to listen to audio and start to incorporate the flash card at work. God Bless !

Roger CPA Review + Ninja Audio + Wiley Test Bank+Ninja MCQ

FAR PASSED 7/14
AUD 72(2x)- 8/2014, Rematch 04/15
REG 02/2015
BEC 06/2015

"I can do all things through Christ Jesus who gives me strength". Philippians 4:13

[Anonymous]

Governmental Accounting seriously makes me sick. No matter how many times I try I just cannot understand it. Reconciling fund balances and net position is just not sticking. Anybody else feel that way?

[Anonymous]

Yes, I got so confused with reconciling government funds too. It's one of my 3 weak areas according to my performance report from my recent FAR retake. The irony is that, government accounting (along with NFP) was my only strong area from my first FAR test.

I attribute my failure on this area for having an outdated material and having the terminologies from Wiley Textbook and Becker's lectures mixed up. I plan to have a solid review especially of this area by starting from a scratch with my new 2014 materials.

[Anonymous]

Mammabear, I am using Becker's so SIRAGE mnemonic is what I am also familiar with as far as Pension topic is concerned.

I realized that [NPPC] Net Periodic Pension Cost components don't have to be in order, so I sorted them and grouped them into two: [A.S. > Addition/Subtraction . (+)(-)]

SAIL.RAG or [+SAIL-RAG]

+ S – Svc Cost {Current Svc Cost}

+ A – Amortization {Amtzn of PSC & Amtzn of ENO >Existing Net Obligation}

+ I – Interest Cost

+ L – Losses

– R – ROPA [Return on Plan Assets]

– A – Amortization of ENA [Existing Net Asset]

– G – Gains

Look guys, I was searching for EROPA online today, and I found this short, concise, and yet helpful lecture from Investopedia about Pensions:

https://www.investopedia.com/university/financialstatements/financialstatements9.asp

[Anonymous]

Does anyone ever feel discouraged by the amount of material to study / remember? How do you overcome it?

I have been studying for 4 weeks and have another 4 weeks until exam day. I am currently working on chapter 5 and feel like remembering chapter 6 through 10 will make me forget all about what I have learned so far.

[Anonymous]

@CPA Dreamer–I think doing a quick review of the old topics before you start new ones is a good method to go by, but if you were to do that method I would say instead of going chapter by chapter you should go big topic to little topic so that you have the most repeated exposure to the big guys–government, bonds, leases, etc. The things that only require memorization could be held off until later on like Pensions, NFP, etc. Since you only have 4 weeks left and you have 5 chapters left you may want to get down the most known tested topics first and try to review everything for at least 1-2 weeks before your exam. That way you can go over everything you've covered right before your exam.

[Wanna_B_TXCPA2014]

Can someone help me figure out what I missed in getting the answer to this WTB Pension research question?

Question

Fairchild, Inc. is contemplating starting a defined benefit pension plan for its employees. To be fair to long-time employees, Fairchild would like to give its employees credit for prior service However, Fairchild is afraid that its income statement would be severely impacted due to having to expense the prior service cost credit immediately. Are Fairchild's fears justified? Find authoritative guidance as to how to account for prior service cost.

Correct Answer

35-10 Plan amendments (including initiation of a plan) often include provisions that grant increased benefits based on services rendered in prior periods. Because plan amendments are granted with the expectation that the employer will realize economic benefits in future periods, this Subtopic does not require the cost of providing such retroactive benefits (that is, prior service cost) to be included in net periodic pension cost entirely in the year of the amendment, absent the conditions addressed in paragraph 715-30-35-16, but provides for recognition during the future service periods of those employees active at the date of the amendment who are expected to receive benefits under the plan.

My answer

35-16 Prior service cost is recognized immediately in other comprehensive income, unless, based on an assessment of the facts and circumstances, the employer does not expect to realize any future economic benefits from that retroactive plan amendment (see paragraph 715-30-35-14). However, this Subtopic does not permit an accounting policy to recognize immediately as a component of net periodic pension cost the cost of all plan amendments that grant increased benefits for services rendered in prior periods. Adopting an accounting policy to recognize prior service cost immediately in net periodic pension cost would preclude making that assessment for future plan amendments as they occur.

[How many letters do you need]

Hello there FAR fam..

So this weekend wasn't very productive so far but my god I needed the break, feel brand new and ready to tackle the last three weeks before exam day.

With that..I took a glance at governmental and it's like reading martian. With the rest of the material it seems like I've had a good enough start to do the questions in the back and focus on weak areas, but with governmental (and probably NFP) I feel like I actually need to read and comprehend something foreign all from scratch. Glad I took the break yesterday because I'm going to need a solid week of focus to get those two modules even into the 60s-70s…may never get into the 80s with them and just gonna accept that.

Good luck all on the week ahead. Some of us are coming close to test day so good luck to those and don't forget to check in here after test day 🙂

MBA,CMA,CPA, CFF?, ABV?

[Wanna_B_TXCPA2014]

@howmanyletters I think the biggest key with Govt is understanding in the Govt funds the budgetary entry, actual expense entry, then the closing entry. I had to break it down into small pieces, because in my mind a transaction is a transaction. Because govt is so ineffecient and slow that's why they need 3 JE's to 2 JEs if your in the business word.

I think my break through came when I looked at the material in terms how the steps vary from what I am used to as corporate accountant instead of trying to “learn” Govt. Hope that helped.

[Amay]

So I got this one wrong because I didn't RTMFQ. Can someone tell me if they get the answer A if the residual value would have NOT been paid by a third party?

On January 1, Year 1, Day Corp. entered into a 10-year lease agreement with Ward, Inc. for industrial equipment. Annual lease payments of $10,000 are payable at the end of each year. Day knows that the lessor expects a 10% return on the lease. Day has a 12% incremental borrowing rate. The equipment is expected to have an estimated useful life of 10 years. In addition, a third party has guaranteed to pay Ward a residual value of $5,000 at the end of the lease.

The present value of an ordinary annuity of $1 at:

12% for 10 years is 5.6502

10% for 10 years is 6.1446

The present value of $1 at:

12% for 10 years is .3220

10% for 10 years is .3855

In Day's October 31, Year 1 balance sheet, the principal amount of the lease obligation was:

a. $63,374

b. $56,502

c. $58,112

d. $61,446

Explanation

Choice “d” is correct. $61,446 principal amount of lease obligation in 10/31/Year 1 balance sheet.

Rule: Lessee must use lower of lessee's incremental borrowing rate, or lessor's implicit interest rate to discount cash flows.

Annual lease payments $ 10,000

Present value of ordinary annuity x 6.1446

Lease obligation at 10/31/Year 1 $ 61,446

Note that the residual value of $5,000 is not included in the calculation of the lease obligation because it will be paid by a third party and not by Day Corp.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Anonymous]

Governmental is martian as far as I'm concerned. Three weeks till D Day for me and today I feel like nothing I learned has stuck. I always take the Becker final exams early this way I can judge what I'm seriously bad in. Maybe that wasn't the best idea this time around because I failed miserably. Maybe taking them with a sinus infection and a headache didn't help too much. The only thing I can do is keep plugging away and hope that on exam day I'm having a good brain day instead of an overloaded one. Does anyone else feel like sometimes you're just on burnout and need a break?

[Amay]

For sure brooklyn! Breaks are really important during this process. This exam can seriously burn you out. I know what it's like having sinus headaches so sorry about that. Maybe take a day off to regain some energy.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Author]

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