[jeff]

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

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

[01Auditor]

I would strongly recommend knowing CF statement preparation from specific transactions and BS acct fluctuations. Had 2 Doc Review SIMS which took the most time. Codification research SIM was on profit and cost sharing for research activities.

[Wannafree]

Thanks a lot 01Auditor ,so did you solve the DRS finally ? What should be strategy to nail DRS ? I am taking AICPA sample DRS but not getting much.
I am feeling good that you managed the SIM otherwise people had scared me .
Which material you used for SIM ? Is FAR DRS is like AUD where you select the line or text or delete but don't type anything.Is it like that or you type in FAR ?

[Wannafree]

@01Auditor ,you may edit the last line on research SIM .

[Wannafree]

Too many distraction intended interest rates on Notes payable ,leases ,bond etc questions. How you guys are managing that ?
I have some rote rules but sometimes fall into trap.any tips ?

[Wannafree]

wordings PV question : Sometimes in question they give amount at the time of signing the lease or notes payable.Now say signed lease to pay 5 equal installments $1000 annually . Also 1000 now (annuity due ).When I apply PV factor ( for 5 years ) ,should I apply PV on 5000 or 4000 ?
Need some clarity on this 1st payment ( due ) and PV calculation.I have no such confusion on arrears.

[Anthony]

Why would you take the PV on the whole sum? You would use PV of annuity due on the 1000 for 5 years and take the 1000 for the first year. It might help if you post a mcq question or whatever.

[Jj]

It depends on the question if the lease is dec 1 and first payment is dec 31 then you would do pv for 4 years. Anything that's paid within 12 months doesn't have to be brought to the pv. Easier if you post a question

[01Auditor]

Key for me on the DRS was to begin by briefly looking through the attachments to get an idea for what they are. Next, slowly read through the memo, consider all possible answers before moving to the next question, max 20-25 mins

[Wannafree]

Thanks a lot @01Auditor ,I know YMMV but still feel good based on your experience that DRS is doable.Thanks a lot , I will keep that approach in mind.
Thanks again ,appreciated.

[Wannafree]

Thanks Anthony ,your questioning line clarified but let try some more questions .
Beantown ,let me solve some questions on lease ,yes I missed that question on lease.Let me try once more .It seems I wrongly interpreted “Next 5 years” .
Will update how it goes.

[01Auditor]

DRS is purely guessing which statement out of 6-8 fits appropriately into a memo. There are usually 6 in each.

[Wannafree]

Thanks again Auditor ,appreciated .It seems you could solve all 8 .You will pass for sure.

[SallyCPA]

Does anyone else think that the Cost method and Par method for treasury stock transactions can get really confusing? Every time retained earnings enters the journal entry i get really confused…

[mtaylo24]

@SallyCPA I'm good with the purchase but i trip up on the re-issue

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)

[SallyCPA]

@mtaylo24 Yeah same here and then when you have to retire the treasury stock it gets even more confusing..

[Author]

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