[jeff]

FAR Resources:

Free FAR Notes & Audio – https://www.another71.com/cpa-exam-study-plan

FAR 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

FAR Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[Anonymous]

I would suggest doing the ones in Becker as well. Some have said that the WTB is not as hard as the actual test, but Becker is a good representation of the actual exam. I only have the WTB so I will be going through all the MCQs at least once and repeating any that I got wrong until I understand the concepts.

[Zackrampage]

Just want some clarification. I think I heard Jeff say legal fees are expensed in the audio, but a 2nd time I heard him say legal fees are expensed. 2 diff situations?

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[Zackrampage]

Just want some clarification. I think I heard Jeff say legal fees are expensed in the audio, but a 2nd time I heard him say legal fees are expensed. 2 diff situations?

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[Anonymous]

If I remember the two examples correctly–Legal feese that are incurred when acquiring a company are expensed in the period incurred. Legal fees that are incurred as a part of bond issuance are amortized in a lump amount called Bond Issuance Cost. I don't think this was mentioned in the audio, but another example of when legal costs are not expensed is when they are part of an ongoing lawsuit. The expenses are usually recognized in the period that the settlement from the lawsuit is recognized.

[Anonymous]

If I remember the two examples correctly–Legal feese that are incurred when acquiring a company are expensed in the period incurred. Legal fees that are incurred as a part of bond issuance are amortized in a lump amount called Bond Issuance Cost. I don't think this was mentioned in the audio, but another example of when legal costs are not expensed is when they are part of an ongoing lawsuit. The expenses are usually recognized in the period that the settlement from the lawsuit is recognized.

[WANNABE_CPA]

I agree Bond issue costs are deffered and amortized. I am having trouble clearing concepts of Present Value and Bonds… Becker questions are fine but i am finding WTB for this toipc difficult and making me realize i am too good at this topic… anything that helped anyone with this…specially i am too confused about where to use PV and FV ..Any recommendations for videos or notes that can help?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[WANNABE_CPA]

I agree Bond issue costs are deffered and amortized. I am having trouble clearing concepts of Present Value and Bonds… Becker questions are fine but i am finding WTB for this toipc difficult and making me realize i am too good at this topic… anything that helped anyone with this…specially i am too confused about where to use PV and FV ..Any recommendations for videos or notes that can help?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Anonymous]

I suck at bonds, but I'll let you know if I can think of a way to help remember when to use each one.

[Anonymous]

I suck at bonds, but I'll let you know if I can think of a way to help remember when to use each one.

[Zackrampage]

Thanks @ cpamommyof3. Yeah bonds r my weakest area

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[Zackrampage]

Thanks @ cpamommyof3. Yeah bonds r my weakest area

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[NYCaccountant]

Future value – I want to know what 10,000 is worth 1 year from now @ 8% interest – Just use compounding for this.

(10,000 *.08)+10,000(principle)=10,800

Present Value – I want to know what 10,000 in 1 year is worth today @ 8% Interest. – You need to discount the 10,000 by 8%. Should be around $9,259.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

Future value – I want to know what 10,000 is worth 1 year from now @ 8% interest – Just use compounding for this.

(10,000 *.08)+10,000(principle)=10,800

Present Value – I want to know what 10,000 in 1 year is worth today @ 8% Interest. – You need to discount the 10,000 by 8%. Should be around $9,259.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

Bonds usually involve you discounting back to present value because you know you are getting a fixed amount of money in the future, but you want to know how much that sum of money is worth today. Also, for bonds you need to include the interest payments as part of the discount equation. So basically, for a 100,000 bond (face amount), it might be discounted back to 92,000. So you end up paying 92,000 today for 100,000 in say 5 years. The extra 8,000 would be expensed by the company as extra interest expense.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

Bonds usually involve you discounting back to present value because you know you are getting a fixed amount of money in the future, but you want to know how much that sum of money is worth today. Also, for bonds you need to include the interest payments as part of the discount equation. So basically, for a 100,000 bond (face amount), it might be discounted back to 92,000. So you end up paying 92,000 today for 100,000 in say 5 years. The extra 8,000 would be expensed by the company as extra interest expense.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Author]

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