[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

[sharp315]

@bcjasper09

I remember this from Wiley too and it is wrong. Revaluation losses go directly to the IS and gains to OCI, unless one is reversing the other from a previous revaluation. Not sure how such a glaring error made it through the final edit at Wiley. Write them a letter and maybe you'll get some free swag =)

BEC: PASS
AUD: PASS
FAR: PASS
REG: PASS

[Anonymous]

Hi Everyone,

I have been looking at this website since starting my CPA journey in November 2011 and I have found it to be very helpful. I have taken and passed all other parts of the exam except for FAR, which I am taking tomorrow!

My Becker software expired so I am using the 2011 Becker book and I purchased the Ninja ten point combo. I have been studying since beginning of March and I am ready to get this exam over with!

There is one part of the exam that I am having trouble with: Research!! I have no idea how to find what I am looking for! I pick the code but I don't know how to search within that or what keywords to use in my search. If anyone has any tips on how to approach research questions, it would be appreciated!

[Tina82]

Only revaluation GAINS go to OCI. All realized losses (impairment is considered a realized loss) are immediately recognized on the income statement. I think sometimes it's helpful to compare/contrast with IFRS – see some notes below:

GAAP:

Trading = realized gains/losses = IS

AFS = unrealized gains/losses = OCI; realized to IS

Impairment of Securities (AFS and HTM only):

AFS = impairment loss goes to IS; subsequent changes in value (increase/decrease) go to OCI

HTM = impairment loss goes to IS; subsequent changes in value are NOT recognized

IFRS:

AFS = unrealized gains/losses go to OCI [exception: FX gains/losses on DEBT securities go to IS]

Impairment of Securities (AFS and HTM only):

AFS/HTM = subsequent increase in value = revers original loss, excess gain goes to OCI [note: new CV (after reversal) for HTM debt cannot be higher than amortized cost of the debt if the impairment was never recorded]

If I'm missing anything or something is wrong, please let me know.

R - 74;88
A - 84
B - 74;89
F - no study = 67; May 15 = 87 & done

[Anonymous]

For research questions I find that the codification is way easier to use than the IRC or the AICPA Authoritative literature. I usually do a broad search for the topic than narrow it down based upon the call of the question (ie is it asking for a recognition criteria or a disclosure requirement.) After doing that I do a search within function for a more specific term. So if it was asking for how to recognize asset retirement obligation when there is an undetermined fair value I would search ARO than do a search within under recognition for Fair Value. That might help, it might not… but it seems to work well for me.

As far as revaluation goes, that's what I thought. As far as some swagger from Wiley… one my classmates wrote to them because so many of their questions in our intermediate book were incorrect that they said they would use his name in a question… I have no such desire to rise to that level of nerdity.. I already feel like my social life has passed me by after studying for this test!

[Anonymous]

Sharp- I didn't even realize you took your test yesterday.. How'd it go?

[RSBro]

For me the IRC is always the easiest to Research, but that's because I've mainly focused on REG so

far and in my industry I've dealt with pretty much strictly the IRC so it's second nature to me. I can

usually do that part of the simulation in about 2-5 minutes thankfully, so it leaves time for the other

stuff I don't know!

I don't know if the IRC will be as useful for other sections.

REG - ('11) 71, ('12) 71 - Becker
AUD - TBD
BEC - TBD
FAR - ('16) 54 - Becker

[Utopia]

Please help with this question:

Roro. Inc paid $7200 to review its only insurance policy for three years on March1, year 5, the effective date of the policy. At March 31, year5, Roro's unadjusted trail balance showed a balance of $300 for prepaid insurance and $7200 for insurance expense. What amounts should be reported for prepaid insurance and insurance expense in Roro's financial statements for the three months ended March 31, year 5?

Answer: prepaid insurance 7000 Insurance expense: 500.

Thanks in advance.

[Anonymous]

The insurance expense from the beginning of the period is presumed to have expired… creating an expense of 300 and than the prepaid policy for 3 years would be expensed for 1 month (7200/3 x 1/12)= 200 for a total expense of 500 and a total prepaid insurance of 7000

[Utopia]

How to justify” presumed to have expired”?

[Anonymous]

Well if your buying a new policy on July 1st for a 3 year period… your prepaid insurance from the prior policy would have to have lapsed. What does the explanation say?

Question: I understand the acquisition method quite well.. but am still having a mental block on why the sub's net income doesn't go into the consolidated retained earnings if its 100% owned. You would eliminate their equity accounts, yes, but wouldn't their net income have been reported on the consolidated income statement and have become part of the consolidated retained earnings?

[Tina82]

jasper – NI is closed out to Retained Earnings and since RE is eliminated, NI would be to (indirectly). That's a good question. Let me know if you find anything.

R - 74;88
A - 84
B - 74;89
F - no study = 67; May 15 = 87 & done

[Anonymous]

I don't know. All I know is if I get a question on Friday about consolidated R/E or N.I. I am going with whatever the parent reports. I can't tell you how many consolidated worksheets I have done but do you think I can do a whole consolidation in a MCQ… nope! I hate the questions when it askes “What will the total stockholder's equity section be” when there is an NCI because the answer never seems to include the NCI but that is defiantly part of SH Equity?

All you IFRS experts- Pensions… Becker Final Exam 1… It has a question related to what would be included in OCI for IFRS pension reporting… I know that the only thing included is an Unamortized Gain (that is not subsequently amortized) but the question says the answer is 0. The only thing I can think of is that it says an “Unrecognized Net Gain” but I still think that would be included in OCI.. Explanation says it is just disclosed in the footnotes. Per the book it says “gains and losses are referred to as re measurements” and are reported in OCI. I must be missing something.

[MrsBing]

In the Wiley Test Bank, I'm doing 30 question practice sessions on 1/3 of the topics. My goal is to do 2-3 30 question a day. Would it be best to include all topics for the 30 questions or just choose a group of topics and change the topics each time?

Becker, Wiley Test Bank, and Ninja 10 Point Combo!

FAR: 89
REG: 87
AUD: 92
BEC: 75
Ethics: 90

Licensed Arizona CPA

[MrsBing]

When something says, “This company does not elect the fair value option to record this financial asset”. What does this mean?

Becker, Wiley Test Bank, and Ninja 10 Point Combo!

FAR: 89
REG: 87
AUD: 92
BEC: 75
Ethics: 90

Licensed Arizona CPA

[Anonymous]

Depending on the context it basically means they carry it at amortized cost. So if it was a financial instrument, they would record it at the PV (if over multiple years) and amortize the interest using the effective method.

[Author]

Replies