[jeff]

Welcome to the Q2 2017 CPA Exam Study Group for FAR. 🙂

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

[Trucker90]

Ok.. here's a bit more specific question

Guide 1
1. Topics identified and placed on board's agenda
2. Research and Analysis conducted and preliminary views of pros and cons issued
3. Public Hearing on proposed standard
4. Board evaluates research and public response and issues exposure draft
5. Board evaluates responses and changes exposure draft, if necessary.
Final standard issued.

Guide 2
a. Identify Topic
b. Conduct Pre-agenda research
c. Make Agenda Decision
d. Deliberate at Public Meeting
e. Issue Document for Public Comment
f. Host Public Hearings or Round Tables (Major Projects)
g. Re-deliberate based on comments & research
h. Issue Final Standard
i. Education
j. Implementation

If I am to comebine Guide 1 and 2..

1 (a,b)
2 (c,d) where, research and analysis are conducted on the chosen topics and ‘preliminary pro/con views' are obtained through a public meeting
3 f
4 g
5 h
and i and j, which are educating the public and users and implementing the issued updates

How does it sound??

[mtaylo24]

I might pass out on the spot if I see any of that on the exam. Kudos to you for over preparing, it shows in your other scores.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[jeff]

Test Your Might:

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

[Chief71]

Hi everyone,

I just started studying FAR in the past week using just Becker for now but I'll probably pick up Ninja MCQ later on.

For those of you using Becker, how do you typically score on the MCQ the first time through? I've found that my average is much lower on Becker's FAR MCQ than on BEC and REG and want to see if anyone has noticed something similar.

[aatoural]

@mtaylo24 – I feel slump too. It might be because we are just tired of the c*** already.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[mtaylo24]

@aatoural, You might just be right. Attitude is 1/2 the battle, so I'm already 10 points in the hole. How's the studying coming along? I just started doing 20 question sessions today so I can try to cover all areas, but it's not going too well.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[sellers321]

I plan to take FAR in July 17. I am busting the books and studying…I am nervous but not moving to the next lesson until I am 90% accurate with all my Questions and Simulations!

[aatoural]

I'm doing better % based but I have not covered everything yet. For some reason all the assets session took me a long time to go thru.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[mtaylo24]

I certainly feel like I'm making better progress today than what I was doing last week (going through the entire program again).

I'm doing random 20 question sessions for each area, switching areas after each session. This way I can try to cover everything and not forget earlier things. I work one chapter of sims after 1 full rotation of MCQs. I'm trying to align Gleim like Ninja and the blueprint, so here is my breakdown.

Area 1: Conceptual Framework, Financial Stmts, Disclosures, Cash Flows
Area 2: Cash, Marketable Securities, Inventory, PPE, A/P, Deferred Taxes, Pensions, Bonds, Equity, Partnerships
Area 3: Income Stmt Items, Intangibles (R&D, Software, Franchises), Leases, Business Combos, Derivatives
Area 4: Gov't 1 & 2
Area 5: NFP (Per the Blueprint, this has now been absorbed into areas 1, 2,& 3, but I'm keeping it separate)

I'm going to keep smashing through the material in this order until May 2, then switch to Ninja until 5/23 (test day). What y'all think?

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Lexi]

Taking FAR on Friday…at this point I just feel like crying my way into Prometric (starting now) lol. Good luck to everyone taking it this quarter!

[aatoural]

@mtaylo24 – what is your approach with the SIMS? I feel like I needs to crammed as many SIMS as I can over MCQs but I don't know if Im mistaken.

Good luck Yessi!

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[mtaylo24]

Sims are a defintely a must, I hope to do 10-15 a day.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[itsj0nathan]

SIM #8

Kern, Inc., leased a copier for the office. Following is the information regarding the copier lease.

Lease period: 4 years, beginning January 1, 20X4. The lease is noncancelable.
At the end of the lease term, the lessee has the option to purchase the copier at fair market value.
The fair market value of the copier (were it to be purchased now) is $28,500.
The estimated economic life of the asset is 5 years.
The implicit interest rate of the lease is 14%.
The lease payment is $8,750 per year, payable in advance. This amount includes $270 in executory costs.
Excerpt from “Present Value of an Ordinary Annuity” Table:

Years 14%
3 2.3216
4 2.9137
5 3.4331
On January 1, 20X4, what are the journal entries that must be made? First choose the accounts that would be affected and then fill in the numbers under debit or credit as appropriate. Although all shaded cells may not necessarily be used, an entry must be made in each cell.

How is my answer wrong?

To record the first lease payment:

Debit Credit
Obligations Under Capital Lease 8,480
Lease Expense 270
Cash
8,750

Correct answer for the first payment is this, one is listed before the other!!??

The fixed asset and related liability are recorded at the present value of the minimum lease payments.**

To record the first lease payment:

Debit Credit
Lease Expense 270 –
Obligations Under Capital Lease 8,480 –
Cash – 8,750

BEC- 71, 7/02/16
AUD- 67
FAR- 08/27/16
REG- 10/15/16

[Anonymous]

@mtaylo24 and krstnam
How did you improve your far score twenty points? I scored what you both did in far the first time. I knew I wasn't understanding the bigger topics and didn't jive with my review program at all, so I bought roger this time. Any tips? That's a huge jump and one I need as well

[krstnam]

@Audarah I think my first score was just bad luck all around. Basically, I don't have much experience with FAR topics so it was like learning something new. I decided to skip over the NFP section and focus on the areas that BECKER said “THIS WILL BE ON THE TEST”. That means, I knew how to do most of the complicated calculations but went light every where else. When I took the exam, a HUGE portion of it was NFP's. I was bombarded with NFP questions, it was nuts.

Going into the 2nd exam, I knew where I needed help – basically I needed to study NFPs, I also needed to have a better understanding of the formulas. Not just now to calculate them, but what the calculation means – really understanding the individual components of each number. I added the NINA audios and NINJA notes to my study plan and listened to the NINJA audios 20-40 minutes a day. I looked over the notes anytime I was waiting somewhere or not doing anything.

Another beneficial thing I did was update how I did homework. I have notebook paper with about a 2 inch blank margin where I add notes. I write formulas in black, journal entries in red and things I need to review in a dark blue erasable ink. Then, I also write in the margin a note on why I got a question wrong. If there's a rule or something I write it down on the margin – I have about 12 different colors of pens and five different colors of highlighters that will highlight over ink. When a page gets filled, I go over everything in the margins to see if there's anything I still don't understand – if there is, I highlight it in yellow. If it's a keyword I usually have problems with, I underline in a bold purple highlighter. Basically, I use a lot of colors and my notes look like skittles barfed all over them.
http://www.jetpens.com
That's where I've been buying my stuff – they even have erasable highlighters.

Last thing…i wish I would have had was more confidence. After bombing that first exam so badly, I felt really defeated the weekend before my retake. So much in fact that I was crying around on A71 saying I wasn't even going to show for my retake because I'll probably get another score in the low 60s and why put pressure on myself. I did SOME studying the weekend before but not much, I should have been putting in 8-10 hours, but instead I think I did like 2-4. I had one item on my list of to do that I didn't put enough time into – it was the statement of cash flows and sure as shit – I should have put more time into it because I had a SIM in that area. I think had I even put an extra 2 hours into the CF's I probably would have ended up with a passing score. Live and learn…

Good luck!

[Author]

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