[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

[LT-P]

Can someone please help me???

On December 31, Year 1, an entity adopted the IFRS revaluation model for reporting its long-term assets and revalued a patent with a carrying value of $85,000 and a 10 year life to its fair value of $75,000. On December 31, Year 2, before recording any amortization, the entity determined that the patent had a fair value of $90,000. In its December 31, Year 2 financial statements, the entity will report a revaluation gain of:

Answer: $10,000 on the income statement and $5,000 in other comprehensive income.

MY QUESTION: why don't we calculate the “Revaluation Carrying Value” for year 2 (FV @ revaluation date – amortization)? In a similar problem the amortization was used to calculate the revaluation gain …

Thanks in advance!

- passed all 4 exams on my first try using Becker!

Ethics: TBD

[mypetmeatball]

@ramfan

I felt great about it up until “Acquisition Method”…the last two sections of F3 are just as difficult as F2.

[Nevergiveup2012]

Does anybody know if Becker 2012 book would still be ok to use for 2013 test date? I plan to take the test in August. Thank you

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

[Anonymous]

@ Tanaya — the problem is specifically asking for the presentation of the gain resulting from the revaluation before considering the amortization. The answer is as you stated for the following reasons. Under IFRS a revaluation gain normally goes in OCI unless there was previously a revaluation loss (on IS) in which case the gain can to on the IS to the extent of the previous loss. The remainder goes to OCI.

12/31/1 — (85k —> 75k) 10k revaluation loss, IS

12/31/2 — (75k —> 90k) 15k revaluation gain, 10k on IS to reverse previous loss, remaining 5k goes to OCI

[Mike1987]

Hi everyone, can AOCI have a negative balance on the B/S? I seem to remember a question from F1 of Becker where it said that it cannot. But in F3 in the marketable securities section it seems like it can have a negative balance. Also is revaluation essentially just mark-to-market of all your assets? Thanks!

[Qlad]

confused totally on Non-monetary Exchange…

Old pick-up truck exchanged for new pick up truck

original cost of truck 24000

accu. depreciation 21000

sticker price of new truck 27000

Fair value of new truck 25500

cash paid to dealer 21500

The question asks for gain/loss…answer if gain 1000….

my question, isn't this “lacks commercial substance” transaction? If yes, and cash is paid the why gain is recognized?

many more confusions on how to do J/E but for now, someone pls explain this to me…i always get jumbled up on non monetary…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

just found this clip on “have commercial substance”…really clears all doubts…the problem is i have confusion on “lacks commercial substance”

https://www.youtube.com/watch?v=HuFtGjvxNgI

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[kevlee]

@Qlad

original cost of truck 24000

accu. depreciation 21000

sticker price of new truck 27000

Fair value of new truck 25500

cash paid to dealer 21500

The question asks for gain/loss…answer if gain 1000….

Db:

Old Truck Acc dep 21k

New Truck 25.5k

Cr:

Old Truck 24k

Cash 21.5k

Gain 1K

For nonmontary exchanges that lack commercial substance, you are going to give up your own asset at BV for the new asset at FV. Gain or loss is always recognized. You just have to watch out if you receive or paid cash. If you receive cash its the 25% rule with the the proportional gain. Hope this helps.

[LT-P]

@ Gaucho – Thanks! I can't believe I missed that. So am I right to assume that if the line “before recording any amortization” wasn't there I would have to calculate the Revaluation CV?

- passed all 4 exams on my first try using Becker!

Ethics: TBD

[Anonymous]

Guys…I'm getting nervous…only 1 month left of studying/reviewing for FAR : / I haven't been doing as many MCQs on weekdays as I should…I'm still in the middle of MCQs for F-1 !!!

It's hard when your commute is 1hour on public transportation and you are married…the combination of cooking dinner and wanting to get some “Bow Chicka Wow Wow” time in makes it hard to study after work…

TMI…but it's the truth.

Power weekends are my only hope for good study time.

[StephAV]

Lol, CPA4birthdaypresent… What are you talking about?? J/k. My DH has been out of town 3 weeks at a time and has only come home for a few days in between so I really cannot relate.

I do agree that I'm getting nervous though. I really want to get through the lectures by 6/22 so I've been going through the material more quickly. I was watching the lectures then going through and reading every word and taking notes from Roger's book. Now I'm taking notes while watching and maybe pause occassionally to write some stuff down.

So for those that have the Ninja study material… Is the audio just Jeff reading the notes? I feel like it is… I like it. After listening to a few “chapters” I'm thinking I'd like to listen and take notes then maybe I'll have “Ninja notes”??

I've studied a lot this week. I've been spending like half of each day at work studying… And then studying from 9/10 until midnight. I'd say I'm getting in like 5 hours a day. Maybe 3-4 quality hours… There are interruptions at work and at night I have to keep myself awake.

FAR - 7/13 - 72, 11/13- 74, 2/14- 82!!! Best score ever (for me)!!!
BEC - 1/14 - 75!!! Perfect score! First Pass! YAY!!!
AUD - 8/14 - 80!!!
REG - 5/14 - 72, 10/14 - 66, 1/15 - 78 - DONE FOREVER!!!
I did 5 of the UNA and CPAExcel classes to earn units.

[CPA2B_NJ]

@CPA4birthdaypresent – I can relate to your plight. I don't want to neglect my husband and 9 month old boy, I work full time, I have 1hr commute each way, and I also cook dinner and clean the house. I end up studying about 1hr-1.5hr per day, which I know it's not enough if I want to get through the 1000+ MCQ's by August. Weekends are the best days to catch up to my studies.

I purchased the NINJA Audio and have been listening to it during my commute. Jeff touches good areas, and listening to him is study time I don't get to do while at home.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[Mike1987]

@mypetmeatball. Yeah I just got to the acquisition method questions,they are more like mini sims. And so far like a previous poster said even when I get some of the questions right I'm just mechanically following steps not really understanding. Reg was fun in comparison to this.

[kip_snoodles]

It sounds like a bunch of us are on the same lesson (F3). I am also supplementing with Wiley Testbank. Does anyone know which Wiley test bank modules match up with F3? The only one I see so far is called “Business Combinations and Consolidations,” but it only has 43 questions. I am guessing there is another module that includes other parts of F3, or maybe Becker just purposely dives deeper into these concepts (Equity/Acquistion Methods, etc.) in order to make us understand the concepts better. I was walking a little taller after receiving my 89 in REG last weekend, but this week these first 3 FAR sections have brought me back to reality. I'm hoping the next 7 sections get easier.

[Anonymous]

Has anyone noticed about partnerships? I don't see it in the outline of things to know with percentages the exam will likely cover (beginning of my Becker textbook). Also, the most recent released question for HW is from 1998.

I don't think its laziness. Just one less thing to know on a massive amount of material.

[Author]

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