[jeff]

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

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

[mtaylo24]

@Anthony How about intra-entity eliminations? I'm more worried about chapter 15 than any other chapter

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)

[Anthony]

@mtaylo24 I'll probably work on the MCQ for intra company elimination, especially the inventory/COGS one and maybe the equipment transfer a bit. But the inventory one is a must.

[Wannafree]

@Anthony , how about Govt and NFP ?

[Wannafree]

@Anthony ,I noted Inflation Accounting in Blue Print and Roger's ,is it important or just 1-2 MCQ ?

[SallyCPA]

I think that re-reading the book and going through the examples is almost more beneficial than doing crazy amounts of sims and MCQs 4 days out from the test. I remember when I took REG this past February, 3 of the sims were VERY similar to a couple of the examples in the book..not sure if that is similar to FAR though..

[Anthony]

@WannaFree Never heard of inflation accounting because Gleim nor Wiley covered it. Is it important? Maybe..but the thing is this, you may never know what will be on the exam when you take it. Gov't and NFP is no different from last format. It is important.

As for the blueprint, you can print it out and file it under S for shred. Who cares what the blueprint says? Because at the end of the day you should know how to solve the problems and know the concepts cold from your material.

[Wannafree]

Thanks a lot Anthony ,appreciated all your help and tips.Inflation accounting just yesterday I saw in Blue print and got panicked.

[Wannafree]

@Anthony ,I have rewrote Becker's rewrote 3 times (Chapter 1-7 ) ,crossed 2500 MCQ from various sources ,Becker's ,Ninja ,Gliem,FreeCPA etc.Understood and practiced lot of things including Consolidation and other big 5 concepts of FAR plus your guidance and tips feeling confident.Thanks from core of my heart.

[waffle_house]

@SallyCPA

Re-reading the books was essential to my success. You see things you didn't see before and you understand it better.

[SallyCPA]

@waffle house..couldn't agree more

For some reason I am really confused on how the journal entry to OCI works. It seems like the account can be both decreased and increased with a debit, specifically talking about PUFE transactions..anyone else get condused by this?

[Wannafree]

SallyCpa ,Credit to OCI will be for increasing the balance ( Unrealized gain etc PUFF ) and Debit to OCI for taking money out of OCI ( decrease the balance of OCI ).
Think it is as a kind of RE ,credit for increased profit.

[SallyCPA]

@wannafree thank you!! that helps a lot..my review materials didn't really do a good job of explaining that

[Pawn Maker]

Am I wrong about this? I thought that the equity method required that income earned from an investment be calculated since acquisition. For example, if company A invests in company B in July then A would only report half of that year of income from company B on its balance sheet (ignoring percentage of ownership for simplicity). I could swear that was the case but I just got part of a SIM wrong because it is stating that we should use the whole year even though the acquisition took place in March.

100,000 shares of Stock C. Stock C was acquired on March 1, year 2, for $15 per share, which is 30% of the outstanding stock of C Corporation. On December 31, year 2, the market price of the stock was $16.25 per share. C Corp. had income of $560,000 during year 2 and paid dividends of $80,000 on December 30, year 2.

Victor's share of net income of Company C: 30% × 560,000 = $168,000

Victor's share of dividends from Company C: 30% × $80,000 = $24,000

[Anonymous]

I don’t understand why would the percentage of completion (rates) be over 100%?
Y1=25%
Y2=70%
Y3=30%

Please help. Thanks guys!

Percentage of Completion Sample Problem

[mtaylo24]

@amor d here you go for your picture (you have to open the image in a new tab and copy that link). The % we are using for yr 1 and 2 is the percentage of completion for the project not % of profit. The remaining 30% of profit in yr 3 is not % of completion, just remaining profit. We are talking about two different % so you cant add those to 💯 . Had to edit my post a few times because that threw me off too 😂

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)

[Author]

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