[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]

Hey everyone. I'll be joining the study group as well for a re-take Jan. 2nd since I didn't register soon enough and all of the weekend spots were taken :(.

What are your strategies for studying around the holidays? I think that may be one of my biggest challenges this time around.

[Tootsie]

I started governmental accounting today and must say that I like it!! Also my previous employment in higher education definitely helps with this area.

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[Tootsie]

I started governmental accounting today and must say that I like it!! Also my previous employment in higher education definitely helps with this area.

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[zieba]

I can't speak for others, but I enjoyed governmental and non-for-profit portion of the FAR materials.

AUD - 75*, 88 done 5/14! (*exp)
BEC - 74 , 77
REG - 65 , 76 (10 point combooo!!)
FAR - 69 , 75

Dr: perseverance
Dr: intelligence
Dr: luck
. Cr: . advisory score

[zieba]

I can't speak for others, but I enjoyed governmental and non-for-profit portion of the FAR materials.

AUD - 75*, 88 done 5/14! (*exp)
BEC - 74 , 77
REG - 65 , 76 (10 point combooo!!)
FAR - 69 , 75

Dr: perseverance
Dr: intelligence
Dr: luck
. Cr: . advisory score

[kels417]

My struggle areas tend to be Becker chapters 3, 5, and 7. Bonds and leases stress me out the most. I think I'm finally getting a handle on stockholder's equity and am feeling a bit more confident with leases. When I see a chart with options for present value, present value of an annuity, present value of an annuity due, and future values…i freak. Anyone have any good tips for figuring out what numbers to use for those?

Example from Gleim:

Robbin, Inc., leased a machine from Ready Leasing Co. The lease qualifies as a capital lease and requires 10 annual payments of $10,000 beginning immediately. The lease specifies an interest rate of 12% and a purchase option of $10,000 at the end of the tenth year, even though the machine’s estimated value on that date is $20,000. Robbin’s incremental borrowing rate is 14%. The present value of an annuity due of 1 at:

12% for 10 years is 6.328

14% for 10 years is 5.946

The present value of 1 at:

12% for 10 years is .322

14% for 10 years is .270

What amount should Robbin record as lease liability at the beginning of the lease term?

A. 66,500

B. 69,720

C. 62,160

D. 64,860

Answer: A 66,500. (10,000*6.328) + (10,000*.322). I had the first part, but got tripped up by the second. I feel like I've seen questions where they'll use the lesser % for one calculation and then the other % for the second part. Am I making that up?? :-

Illinois
Becker self study | Becker flashcards | Gleim | self written notes | WTB

AUD - 74, 75 Passed! (Expires 1/2/2014)
BEC - 78 Passed! (Expires 2/6/2014)
REG - 70, 70, 72, 74, 76 Passed!!
FAR - 72, 66, 69, 67

[kels417]

My struggle areas tend to be Becker chapters 3, 5, and 7. Bonds and leases stress me out the most. I think I'm finally getting a handle on stockholder's equity and am feeling a bit more confident with leases. When I see a chart with options for present value, present value of an annuity, present value of an annuity due, and future values…i freak. Anyone have any good tips for figuring out what numbers to use for those?

Example from Gleim:

Robbin, Inc., leased a machine from Ready Leasing Co. The lease qualifies as a capital lease and requires 10 annual payments of $10,000 beginning immediately. The lease specifies an interest rate of 12% and a purchase option of $10,000 at the end of the tenth year, even though the machine’s estimated value on that date is $20,000. Robbin’s incremental borrowing rate is 14%. The present value of an annuity due of 1 at:

12% for 10 years is 6.328

14% for 10 years is 5.946

The present value of 1 at:

12% for 10 years is .322

14% for 10 years is .270

What amount should Robbin record as lease liability at the beginning of the lease term?

A. 66,500

B. 69,720

C. 62,160

D. 64,860

Answer: A 66,500. (10,000*6.328) + (10,000*.322). I had the first part, but got tripped up by the second. I feel like I've seen questions where they'll use the lesser % for one calculation and then the other % for the second part. Am I making that up?? :-

Illinois
Becker self study | Becker flashcards | Gleim | self written notes | WTB

AUD - 74, 75 Passed! (Expires 1/2/2014)
BEC - 78 Passed! (Expires 2/6/2014)
REG - 70, 70, 72, 74, 76 Passed!!
FAR - 72, 66, 69, 67

[Anonymous]

I need advice! I work for a Big 4 Firm, and have to take my exam before busy season starts on 12/6. I looked today and the only open day I can take the exam is 12/4. This will be my FIFTH time taking FAR, since I failed with a 69 when I took the exam on 11/26. Anyone have any advice on what i should do?! I am at the point of freaking out.

I felt prepared for my exam before, and now I don't know how else to review. What is a good final review method? To add to the madness, my family is big on the holiday, and I will be running around. So I will try my best to get as much studying in as I can, and then 12/2 and 12/3 will be serious cramming days for me. HELP ME PLEASE!

[Anonymous]

I need advice! I work for a Big 4 Firm, and have to take my exam before busy season starts on 12/6. I looked today and the only open day I can take the exam is 12/4. This will be my FIFTH time taking FAR, since I failed with a 69 when I took the exam on 11/26. Anyone have any advice on what i should do?! I am at the point of freaking out.

I felt prepared for my exam before, and now I don't know how else to review. What is a good final review method? To add to the madness, my family is big on the holiday, and I will be running around. So I will try my best to get as much studying in as I can, and then 12/2 and 12/3 will be serious cramming days for me. HELP ME PLEASE!

[Nevergiveup2012]

@Kels417 – Here are the rules that you must know related to the Lesee accounting. I made a summary on Accounting for Leases, distinguishing the rules between lesee, lessor, and IFRS. I copied for you the note for Lessee accounting.

A LESEE RECORDS THE LEASES AS AN ASSET AND A LIAB AT THE LESSER OF FV AT INCEPTION OR COST (PV OF MIN LEASE PMTS)

WHAT'S INCLUDED IN THE CAPITALIZED COST / MININUM LEASE PAYMENTS?

BARGAIN PURCH OPTION – USE PV OF $1

GUARANTEED RESIDUAL VAUE – USE PV OF $1

MIN PAYMENTS – USE PV OF ANNUITY DUE/ORDINARY ANNUITY

INITIAL DIRECT COSTS (IFRS ONLY). INITIAL DIRECT COSTS ARE ADDED TO THE CAP LEASED ASSET BUT NOT TO “OBLIGATION UNDER CAP LEASE”. PG 15 FOR JE EX

J/E

DB. FIXED ASSET – LEASED PROPERTY XXX

CR. LIABILITY-OBLIG UNDER CAPITAL LEASE XXX

BORROWING RATE TO USE:

THE LESSER OF IMPLICIT RATE OR LESSEE'S INCREMENTAL

THE BORROWING RATE

EXCLUDES: OPTIONAL BUYOUT (THAT IS NOT A BARGAIN) &

EXECUTORY COSTS (TAXES, INSURANCE, MAINTANENCE)

the fixed asset of leased prop is depreciated like regular fixed assets. (capitalized lease assets – salvage value)/period benefit

period of benefit for depreciation:

“O” and “W” – the economic life of asset

“N” and “S” – the lease term

Per your example from GLEIM, optional bargain purchase is stated in the example. This $10K amount should be included/added to the total minimum lease payments/lease liability. Note..only the bargain purchase option is added, not the purchase option that is NOT a bargain. Although the example from GLEIM didn't specify that the purchase option is a bargain, we can however infer that the purchase option is a BARGAIN because it is less than the salvage value ($20K).

Hope this helps.

BEC - 86 (8/31/12)
AUD - 97 (11/18/12)
REG - 83 (5/12/13)
FAR - 91 (12/2/13)
Done!!!

[Nevergiveup2012]

@Kels417 – Here are the rules that you must know related to the Lesee accounting. I made a summary on Accounting for Leases, distinguishing the rules between lesee, lessor, and IFRS. I copied for you the note for Lessee accounting.

A LESEE RECORDS THE LEASES AS AN ASSET AND A LIAB AT THE LESSER OF FV AT INCEPTION OR COST (PV OF MIN LEASE PMTS)

WHAT'S INCLUDED IN THE CAPITALIZED COST / MININUM LEASE PAYMENTS?

BARGAIN PURCH OPTION – USE PV OF $1

GUARANTEED RESIDUAL VAUE – USE PV OF $1

MIN PAYMENTS – USE PV OF ANNUITY DUE/ORDINARY ANNUITY

INITIAL DIRECT COSTS (IFRS ONLY). INITIAL DIRECT COSTS ARE ADDED TO THE CAP LEASED ASSET BUT NOT TO “OBLIGATION UNDER CAP LEASE”. PG 15 FOR JE EX

J/E

DB. FIXED ASSET – LEASED PROPERTY XXX

CR. LIABILITY-OBLIG UNDER CAPITAL LEASE XXX

BORROWING RATE TO USE:

THE LESSER OF IMPLICIT RATE OR LESSEE'S INCREMENTAL

THE BORROWING RATE

EXCLUDES: OPTIONAL BUYOUT (THAT IS NOT A BARGAIN) &

EXECUTORY COSTS (TAXES, INSURANCE, MAINTANENCE)

the fixed asset of leased prop is depreciated like regular fixed assets. (capitalized lease assets – salvage value)/period benefit

period of benefit for depreciation:

“O” and “W” – the economic life of asset

“N” and “S” – the lease term

Per your example from GLEIM, optional bargain purchase is stated in the example. This $10K amount should be included/added to the total minimum lease payments/lease liability. Note..only the bargain purchase option is added, not the purchase option that is NOT a bargain. Although the example from GLEIM didn't specify that the purchase option is a bargain, we can however infer that the purchase option is a BARGAIN because it is less than the salvage value ($20K).

Hope this helps.

BEC - 86 (8/31/12)
AUD - 97 (11/18/12)
REG - 83 (5/12/13)
FAR - 91 (12/2/13)
Done!!!

[Nevergiveup2012]

@kels417

your question: When I see a chart with options for present value, present value of an annuity, present value of an annuity due, and future values…i freak. Anyone have any good tips for figuring out what numbers to use for those?

My answer: If you are confused with which table to use to determine the lease liability, bond liability, etc, try to re-read the chapter on Time Value of Money. The key is to not memorize but to understand the differences between PV, FV, and annuities. I don't know which review course you are using, but Becker has a section on Time Value of Money in the beginning of F5. Are you confused with the ‘period' to use in the PV calculation? or are you confused with the rate% to use?

BEC - 86 (8/31/12)
AUD - 97 (11/18/12)
REG - 83 (5/12/13)
FAR - 91 (12/2/13)
Done!!!

[Nevergiveup2012]

@kels417

your question: When I see a chart with options for present value, present value of an annuity, present value of an annuity due, and future values…i freak. Anyone have any good tips for figuring out what numbers to use for those?

My answer: If you are confused with which table to use to determine the lease liability, bond liability, etc, try to re-read the chapter on Time Value of Money. The key is to not memorize but to understand the differences between PV, FV, and annuities. I don't know which review course you are using, but Becker has a section on Time Value of Money in the beginning of F5. Are you confused with the ‘period' to use in the PV calculation? or are you confused with the rate% to use?

BEC - 86 (8/31/12)
AUD - 97 (11/18/12)
REG - 83 (5/12/13)
FAR - 91 (12/2/13)
Done!!!

[Guti]

Are you guys covering everything on Ch.10 from Becker?

FAR-84
AUD-
REG-
BEC-

[Guti]

Are you guys covering everything on Ch.10 from Becker?

FAR-84
AUD-
REG-
BEC-

[Author]

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