[jeff]

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

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

[Anonymous]

@SallyCPA I have taken my rounds on the FAR exam and can say that I have never seen a government wide sim. From my experience the SIMs are primarily based on Adj. entries, etc. (which I hate – lol)

For anyone that was taken the “new” version of the exam..
I sit for FARE, which is my last exam later this month (knocking on wood). How is the user interface (UI) in the new exam? One of the things that really gets me frustrated is the font size or screen resolution on the SIMS. It seems like they set it at the highest level, which causes me to go back and forth reading the question, etc. Am I the only that that feels this way about this?

any-who – wanted to know if this was the case on the on the new exam? all tips are welcome!

[rwglapalma]

Alright folks, I sit in approx. 4 1/2 hours. I'm burned out on mcqs. Should I just review my notes, hit the NINJA blitz, watch lectures, keep powering through questions, or just relax until my test time? Any thoughts?

[Jj]

I like to relax so I'm fresh for the test.

[rwglapalma]

Works for me, thanks @Beantown23
I'll report back tomorrow (going straight to the bar from the testing center)

[mtaylo24]

@rwglapalma Good luck!

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)

[COVER U CPA]

What's up guys? I just took my exam yesterday with the new 2017 test. Just curious how all of you who have taken it feel like you did? I scored a 73 on FAR the first time I took it two months ago (was tough to get over I'll admit that!). But once I calmed down I got back into the grinding mode.

My exam experience: I struggled the first time on FAR due to the sims. There was stuff that my study materials BARELY covered (2 questions on Cash Flow Hedge.. dumb). So this time, I wanted to make sure I saved myself enough time on the sims so I could at least put in decent guesses.

After doing the two Becker Practice tests, my goal was to complete the 2 multiple choice testlets and the first testlet for the Sims (2 sims) with 2 hours and fifteen minutes left on the clock. I ended up being able to get this done with 2 hours and 5 minutes left on the clock (not horrible).

The first sim was tough, so I calmed myself down and did the second one first. The second was not necessarily easy but at least made me feel comfortable going back to the first. I didn't waste much time on the first one since I knew it was going to take up a lot of time; instead, I put in answers I knew for sure and filled the rest with zeros. It was time for my 15 minute break.

The next testlet was not nearly as bad. I for sure got 2 of these 100% correct, and the third was tricky, once again (so much info!). It was an indirect cash flow adjustment to the trial balance. But also had like 5 emails I had to read. Once again, i put in a few answers I felt confident on and moved on.

The last testlet was not horrible. I finished with 15 minutes left so I went back and checked these 3 sims. I caught an error I made in one of them, which after making the change I know I got 100% correct. This 15 minutes might be the difference between passing and failing!

My advice: Set a time frame for each section and stick with it. You don't want to fail because you were unable to get to all the sims. If you're uncertain, just do your best and move on; don't stare at the screen hoping something starts to make sense because it won't.

Curious to see how everyone else did! Let me know!

[COVER U CPA]

@SallyCPA I had about 3-4 Multiple choice questions on reconciling; but no sims. I do think that it is possible to get a sim on it since it looks like in the FAR Blueprints this was a bigger section they were focusing on as opposed to before the switch in exams.

[Wannafree]

JTownCPA,liked your smart move to give less time to 1st SIM .I can see you you really saved time.I Will keep that in mind.It will help.Any other tips on SIM ? I appreciate sharing your tips.Since you appeared in March may I ask compared to March how difficult (more ,less ) are the MCQ ? Last time I took 3 hours to finish MCQ ,too much calculations and now people are taing 2 hours for 66 questions so I feel its similar to March just with 24 less MCQ.

[Anonymous]

@JtownCPA

hope you did well! How was the look and feel of the exam? was it the same as the old version? Thanks!

[CPAIN2K17]

This is a topic I struggle on so just posting it in case anyone else struggles too!

ASC 845 states that when the exchange of nonmonetary assets lacks commercial substance and includes a cash payment (boot), the entity which received cash has realized a partial gain on the exchange. To compute the partial gain to be recognized, first the total gain is computed by subtracting the book value of the nonmonetary asset given up from its fair value. This total gain is then multiplied by the ratio of the cash received to the total consideration received (Cash + FMV of nonmonetary asset received)

[Anonymous]

Hi All:

I a quick questions regarding the APIC (CS OR TS) accounts. I always get confused as to which one to use when working cost method and/or PAR method problems.

Any tips on how to master this piece and to ensure I pick the correct account?

[Wannafree]

@CPAMADMAN , this is how I remember.
Cost method relates to cost of sales and so you need sales price.Profit will be determined when sold again.Debit the TS with Cost price.
Par method: Profit will be calculated at the time of repurchase.
Debit the TS with Par as name suggest.
Profit -no problem , credit to APIC.
Loss : First from APIC ,if no balance , debit RE.
Every thing is same ,just when the profit is booked ( to APIC OR RE ) is different.
Also important :account Paid-in Capital from Treasury Stock only is to be considered not APIC from non treasury stock.In no case Income statement will be debited or credited.

[mtaylo24]

Posting this because I suck at this.

Stock Issuance

Issued 20,000 shares of 1$ par for $4 a share

Dr. Cash (20,000 * 4) 80,000
Cr. Common Stock (20,000 * 1) 20,000
Cr. APIC (difference) 60,000

Treasury Stock Acquisition

Bought 1,000 shares of $1 par t-stock at $5 a share. Shares were originally purchased at $4.

Cost Method

Dr. T-Stock (1,000 * 5) 5,000
Cr. Cash (1,000 * 5) 5,000

Par-value Method

Dr. T-Stock (1,000 * 1) 1,000
Dr. APIC (1,000 * 3(4-1)) 3,000
Dr. RE (difference) 1,000
Cr. Cash ( 1,000 * 5) 5,000

Treasury Stock re-issue

Reissued 1,000 shares of $1 par t-stock at $5 a share. Market price was $6 at the time of re-issue.

Cost Method

Dr. Cash (1,000*6) 6,000
Cr. T-Stock (1,000*5) 5,000
Cr. PIC (difference) 1,000

Par-Value Method

Dr. Cash (1,000*6) 6,000
Cr. T-Stock (1,000 * 1) 1,000
Cr. PIC (difference) 5,000

Reissue when price > cost

Reissued 1,000 shares of $1 par t-stock at $6 a share. Market price was $5 at the time of re-issue.

Cost Method

Dr. Cash (1,000*5) 5,000
Dr. RE (difference) 1,000
Cr. T-Stock (1,000 * 6) 6,000

Par-Value Method

Dr. Cash (1,000*5) 5,000
Cr. T-Stock (1,000 * 1) 1,000
Cr. PIC (difference) 4,000

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]

Not complaining at all but does anyone else think its kinda fuc*ed up that you can spend so much time on an enhanced sim not knowing that it is a pre-test? One of my biggest problems comes down to time management with these things and I hate to just completely guess or plug 0's in on a sim..

[Anonymous]

@WannaFree – Thanks!! I will make sure to drill this to my head!! Funny thing is that when I work the Becker problem on this, I get everything right on both methods (Cost vs PAR), however I mess up with the APIC account..

@SallyCPA – I completely hear you!! It's a sucky feeling when your are against the clock and the last resort is to guess. I too have my share of issues with time management and get super nervous. One thing that I found to work for me is that after I finish all lectures/MCQ/SIMs, I would set time trails to complete X number of MCQs. For example for a set of 30 MCQ – I will aim to complete in 35-40 minutes. This helped me to learn to go through and scan the question – if I knew I needed to re-read the question multiple times, I would skip it and come back to it, chances are those questions could also be “pre-test”.

[Author]

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