[jeff]

Resources:

Free Study Planner + FAR NINJA Notes (Governmental Accounting): https://www.another71.com/cpa-exam-study-plan/

FAR Exam Experience: https://www.another71.com/cpa-exam-forum/topic/far-exam-experience-official-thread

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

[MCLKT]

Todays study plan: go through all flash cards, 30 MCQ 3 SIM

Review current scores and read/rewrite weak areas, 30 MCQ 3 SIM

Read my “Fact Nugget Book”

Write out popular equations and Journals

50 MCQ 5 SIM

Then we'll see, I'll check back in later FAR FAM!!!!

@Peetree thanks for sticking around!

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[LSNYC]

Reading NINJA right now… I had to (I stupidly decided) to run and errand and it's going to take twice as long as I originally planned. So now I'm reading NINJA hopefully back to my computer by 2ish?

Study on!

A - 61, 91!!
B - 78!
F - 76!!!
R - 71, 73, 74, 69, 77!!!!

Finally done!

This is my 2nd attempt at the exam, I had two parts passed (failed many) and I stupidly quit, big mistake. Now I'm back and with a vengeance!

[peetree]

SIRAGE NAM! SIRAGE NAM!

SIRAGE SIRAGE SIRAGE!

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[HustlinHustlin]

Thanks for the help you guys, but I am still confused!

My question is what is a sales-type lease. I totally get the sale-leaseback, but from my understanding a sales-type lease is a whole different thing. I have looked all over the internet and it's not even mentioned in the Ninja notes. All I understand about it is that it is a lease where the lessor recieves interest on top of the lease payments. Any clarity will sure help, otherwise I better hope this isn't tested!!

AHHHH! Tomorrow! It's here and way too soon! I woke up oddly calm, though. I know it'll be a nerves rollercoaster all day.

Plan is to go through DTA/DTL, Pensions, and Govt and NFP making flashcards and doing end of chapter questions. At this point, I am a little scared to jump back into MCQ. Later tonight I might review the screenshots and notes on the ones I did on my first run-though. But first, bacon, eggs and coffee…

B 71 - 79 EXPIRED
A 69 - 75 EXPIRED
R 65 - 48 - 45
F 56 - 61 - 65 - 64

Becker, Wiley Test Bank, Wiley Text and Ninja Notes

"The fish who keeps on swimming is the first to chill upstream" -311

Experience - Done, like WAAAY done.
Still need 30 more credits, in basket weaving (gotta love new CA requirements)

[mjp44]

Quick question: “A change in depreciation method is a change in principle inseparable from a change in estimate. It is accounted for prospectively”

Does this mean a change in depreciation method is change in accounting principle unless the change occurs as a result of a change in estimate?

I thought any change in depreciation method would be a change in principle and thus treated as a retrospective change. However, apparantely, if the change is for a change in estimate, treated prospectively.

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[HustlinHustlin]

Basically if you have a change that is in principle and an estimate (i.e. inventory valuation) then you treat it how you would an estimate.

Just remember, when it comes to change in estimate vs. change in principle – estimate always wins!! Revalue it going forward!

B 71 - 79 EXPIRED
A 69 - 75 EXPIRED
R 65 - 48 - 45
F 56 - 61 - 65 - 64

Becker, Wiley Test Bank, Wiley Text and Ninja Notes

"The fish who keeps on swimming is the first to chill upstream" -311

Experience - Done, like WAAAY done.
Still need 30 more credits, in basket weaving (gotta love new CA requirements)

[joch0803]

I think depreciation is considered a change in estimate because you are “estimating” how much of the asset's value you have used up in the year.

Because the different depreciation methods are considered principals of GAAP, you have both a Principal and an estimate.

Audit 10/2012- 77
Reg- 1/7/13- 82
Financial-2/25/13- 78
BEC- 74,66,81!

License pending : )

Ethics- Passed
Experience- Done

Using Becker self study.
**For BEC retake using Ninja Blitz, Ninja Notes, Ninja Audio, and WTB (my Becker expired)

[MCLKT]

@ Hustlin – I'll try, but I don't think I'm good at explaining things…

A sales type lease is a capital lease where the Fair Value =/= to Basis.

Pretend it is a “sale” You will recognize profit IMMEDIATELY

Lessor will have two separate profits.

1. immediate gain/loss on sale of asset

2. Interest income as payments are collected

1.

J/E – the sales credit is present value of payments. (The DR is lease receivable)

DR Lease Rec. (p.v. of lease payments)

___CR Sale (p.v. of lease payments)

Lessor also needs to remove the asset because we are pretending it is a sale:

DR COGS

___CR Asset (book value)

in the income statement the difference from Sales and COGS is your profit that is recognized immediately.

That's the big deal with Sales Type leases. You have a SALE and COGS mixed in there.

2.

As the payments come in they will be like any other ammortization schedule. A portion against the principal and a portion as interest. The interest will be recognized income.

I can do an example if it will help, but this is already a looooong post, lol.

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[Anonymous]

@ peetree: 😀 😀 😀 <3<3<3 and whenever i get a wordier mcq right i do lil dance move https://25.media.tumblr.com/8dd895844de7ef5ec75f92a534404ae5/tumblr_mij0mvOtYR1s6qn2po1_500.gif

@ mjp44- yes it is change in principle (technically ) but It is ALWAYS accounted for prospectively… always 😀

@hustin – ohh i know what you mean..

there are two types oflease 1) finance lease and 2) sale lease

Finance lease ( only 1 type of profit) i.e interest revenue .

sale lease ( 2 type of profit) – interest reveneu and gain and loss on the sale of asset ( @ end of lease period)

So technically OW from OWNS mnemonic is a sale lease..

[Anonymous]

heres come my bond girl MCLKT 😀 .. xxxxxxxxxxxxxxxxx

HIYA MCLKT – yo to long power night !!

[MCLKT]

Yeah, I was up way too late. But I feel so good right now.

I'm getting consistent 80's!!!

I realize I don't know a lot of this off the top of my head, but when working the MCQ, I can get through it.

Usually I can read the choices and off the top know 2 are wrong. Then I can usually figure which methods are used for the remaining and it helps so much.

You know what helped me in a question last night..HAMMERTIZE!!!!

@NAM – Conan is hilarious!

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[MCLKT]

@Nam – Yes! the Financing lease when compared to sales type…

only 1 income = interest from payments.

This is because the Fair Value = Basis

and you don't pretend it's a sale, so no COGS, no SALES

1.

DR lease Receiveaable (pv lease payments)

___CR Asset (basis)

So, they are equal, no profit to recognize

2.

Like all amortization schedules portion of payment to principal (lease receivable) portion to Interest (this is the only income recognized in Direct Financing).

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[WICPA06]

Hello Far Fam! Just got home from taking the exam. I don't really know what to think. The first testlest wasn't too bad. I flagged about 4 questions or so. Then came the 2nd testlest. Just like peetree's experience, the 2nd testlet was the teslet from hell. The whole thing was ridiculous. Little details from my review material and things I have never heard of before. Most of the questions were extremley wordy. I felt comortable with maybe 10-15 questions tops. The 3rd testlest was much easier than the 2nd testlest, but a little harder than the first one. I think I was able to figure out the tricks though.

The simulations weren't really bad at all. I had exactly 2 hours to do simulations, and finished with 10 minutes to spare. You really need to known journal entries which isn't a surprise. If you know your journal entries and leave yourself enough time, they aren't too hard to figure out. The research came very easy.

Overall, I think I did enough to pass, but we will find out in 2 weeks! Good luck to everyone taking it in the next couple days. Don't blow anything off in your review material. No one little thing is too small.

BEC - 77 (lost credit), 4/5/13
AUD - 83
REG - 77
FAR - 73, 74, 80! One more to go!!

[mindjet]

@ Hustlin For sales type lease…think of Haverty's furniture…they make their own furniture and say take home today and no payment till 2 yrs. That is why they have 2 incomes, the product is theirs, so gain on sale and interest income on the payment that they allowed after 2 yrs.

Because the amnt will be recd in 2 yrs. PV is used and the gain is LESSER of PV and sales price.(Conservatism)

Interest income is Selling price- down pymnt * rate of interest (adjust for no. of mnths)

CAPITAL lease is the same above example but from the buyer's point of view. Buyer will own the furniture at the end of 2 yrs so he will capitalize comparing LESSER of PV and FV of the asset.

FAR 02/28/2013

[joch0803]

I need advice everyone!!!!

I just took a 100 MCQ progress exam. and only got 67%.

Im freaking out, idk what to do. There is an open spot to reschedule for Thursday morning. But I would have to work and cram at night up to then.

Do I just wing it and take it Monday or reschedule and try to cram as much as I can in the next 4 days after work..

I dont want to live thru another 2 months of this : (

Audit 10/2012- 77
Reg- 1/7/13- 82
Financial-2/25/13- 78
BEC- 74,66,81!

License pending : )

Ethics- Passed
Experience- Done

Using Becker self study.
**For BEC retake using Ninja Blitz, Ninja Notes, Ninja Audio, and WTB (my Becker expired)

[Author]

Replies