[tmturner74]

Is it ok to start a FAR Study Group? I retook Audit yesterday and although I don’t have a gut feeling either way if I passed or not, I am going to start on FAR. I am using Becker self-study and purchased the Ninja Notes for FAR.

I am looking forward to reading a/b everyone’s progression. Good Luck!

 

Aud- 11/28/12 (72), 02/27/13 (72), 04/06/2013 77!!
FAR-tbd
BEC-tbd
REG-tbd

[SeattleAccountant]

@Hustlin, it is very straight forward. “Expensed” in this context means it is subtracted from taxable income (i.e. not taxed). Smaller taxable income = smaller tax on it.

Situation 1: DTL

Tax return using accelerated depreciation results in lower taxable income (TI) in comparison to book income (BI) which uses regular depreciation. TI < BI simply translates into practical notion that today we pay LESS in tax but eventually will have to pay more b/c difference in depreciation will reverse.

If we are “underpaying” now, we have to accrue for that liability (DTL).

Situation 2: DTA

When income is recognized for tax purposes but not yet for book purposes, taxable income is greater than book income. TI > BI, we pay MORE in taxes now but later that timing difference will reverse. We have essentially “prepaid” taxes in advance, so treatment is like an asset (DTA).

Hope that helps!

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[gobias]

@corgisrule I'd take you up on that offer for REG notes as I have about 70 pages front and back from FAR (and that doesn't even include F10), but I don't have the time to type them all up. Sorry 🙁

F - 86
R - 90
A - 97
B - 91

[gobias]

@corgisrule I'd take you up on that offer for REG notes as I have about 70 pages front and back from FAR (and that doesn't even include F10), but I don't have the time to type them all up. Sorry 🙁

F - 86
R - 90
A - 97
B - 91

[Anonymous]

gobias

I tried to find my notes for REG and AUD and I just cant find them. I usually will back up my information on a seperate hard drive incase a crash but I guess I didnt do this before my computer got stolen. Thank god for car insurance. We dont have to swap but I can give you my BEC notes if this will help you. I see you are planning on taking the exam at the end of May. I just took the exam at the end of Feb. 2013. Good luck on all your exams. I hope you pass them. Give me your email and I will email you the BEC notes word doc.

[Anonymous]

gobias

I tried to find my notes for REG and AUD and I just cant find them. I usually will back up my information on a seperate hard drive incase a crash but I guess I didnt do this before my computer got stolen. Thank god for car insurance. We dont have to swap but I can give you my BEC notes if this will help you. I see you are planning on taking the exam at the end of May. I just took the exam at the end of Feb. 2013. Good luck on all your exams. I hope you pass them. Give me your email and I will email you the BEC notes word doc.

[mon1coll]

I am starting my first retest with FAR. I'm using Becker PDF books, this site, and multiple other sites and mobile aps for MCQs and tips.

I am done with Becker F1 and half throught F2. I am on day 4 of studying. I am doing really well on the concepts as far as MCQs.

I am just worried about the application of this material to journal entries and all of the many other calcs.

My plan is to go throug the material and get as close to 100% on these concepts and then hit all the calcs and journal entries really hard.

It would be nice to have a study partner.

I am in the Metro Detroit area in MI..Let me know if any one is interested…

CPA is do or die for me…

[mon1coll]

I am starting my first retest with FAR. I'm using Becker PDF books, this site, and multiple other sites and mobile aps for MCQs and tips.

I am done with Becker F1 and half throught F2. I am on day 4 of studying. I am doing really well on the concepts as far as MCQs.

I am just worried about the application of this material to journal entries and all of the many other calcs.

My plan is to go throug the material and get as close to 100% on these concepts and then hit all the calcs and journal entries really hard.

It would be nice to have a study partner.

I am in the Metro Detroit area in MI..Let me know if any one is interested…

CPA is do or die for me…

[nashville79]

Can anyone please give me an understandable version of capitalized construction interest (weighted average)?

[nashville79]

Can anyone please give me an understandable version of capitalized construction interest (weighted average)?

[nashville79]

@Corgis rule. I'm in the same boat. If you come across anything worthwhile, let me know. I've made a bunch of notes, but they are mostly from Becker so I don't think it would be of much help.

[nashville79]

@Corgis rule. I'm in the same boat. If you come across anything worthwhile, let me know. I've made a bunch of notes, but they are mostly from Becker so I don't think it would be of much help.

[lbi18]

@nashville – This gave me a lot of trouble too, but once you get it, it's not too bad.

Step 1: Find your weighted-average accumulated expenditures on construction

For example, assume the following: $100,000 spent Jan 1, $400,000 spent April 1, $300,000 spent Dec 1. You WAAC would be calculated as follows: (100,000 x 3/12) + (500,000 x 8/12) + (800,000 x 1/12) = 425,000 (rounded)

Step 2: Figure out the actual interest on other borrowings

So, if you have a construction loan of $700,000 with stated rate of 5%, your actual interest is $35,000 (assuming it was taken out Jan. 1).

Step 3: Your capitalized interest would be: $425,000 x 5% = $21,250 (remember, this figure CANNOT exceed your actual interest…thus, actual interest on any other borrowings acts as a ceiling).

Note: This becomes a bit more complicated if your WAAC exceeds your construction loan, I could explain that too, but just let me know if this helped at all and if you want me to explain any further.

FAR - 85
AUD - 99
REG - 85
BEC - 10/4/13 (Waiting)

Using Becker Self-Study

[lbi18]

@nashville – This gave me a lot of trouble too, but once you get it, it's not too bad.

Step 1: Find your weighted-average accumulated expenditures on construction

For example, assume the following: $100,000 spent Jan 1, $400,000 spent April 1, $300,000 spent Dec 1. You WAAC would be calculated as follows: (100,000 x 3/12) + (500,000 x 8/12) + (800,000 x 1/12) = 425,000 (rounded)

Step 2: Figure out the actual interest on other borrowings

So, if you have a construction loan of $700,000 with stated rate of 5%, your actual interest is $35,000 (assuming it was taken out Jan. 1).

Step 3: Your capitalized interest would be: $425,000 x 5% = $21,250 (remember, this figure CANNOT exceed your actual interest…thus, actual interest on any other borrowings acts as a ceiling).

Note: This becomes a bit more complicated if your WAAC exceeds your construction loan, I could explain that too, but just let me know if this helped at all and if you want me to explain any further.

FAR - 85
AUD - 99
REG - 85
BEC - 10/4/13 (Waiting)

Using Becker Self-Study

[Theo]

@Nashville79 I also had issues with Becker's explanation of the Weighted Average Accumulated Expenditures. Here's what I found helpful on youtube.

Beckers method of weighting is different but everywhere I've looked the above method is used. Also I found in a previous thread from about 5 months ago someone on this forum did say that Wiley used the above as well. I believe I'm gonna stick to it as it makes sense to me.

Good luck

AUD 01/17/2013 (92)
REG 02/28/2013 (85)
FAR 04/26/2013 (85)
BEC 05/30/2013 (88)

[Theo]

@Nashville79 I also had issues with Becker's explanation of the Weighted Average Accumulated Expenditures. Here's what I found helpful on youtube.

Beckers method of weighting is different but everywhere I've looked the above method is used. Also I found in a previous thread from about 5 months ago someone on this forum did say that Wiley used the above as well. I believe I'm gonna stick to it as it makes sense to me.

Good luck

AUD 01/17/2013 (92)
REG 02/28/2013 (85)
FAR 04/26/2013 (85)
BEC 05/30/2013 (88)

[Author]

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