[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

[thehip41]

So I am finally starting on my journey for the CPA. I am sitting as early as I can in the Oct/Nov window, but I'm starting to studying next week. 10 weeks, 200 hours, score an 85.

-Derek

FAR - 83
AUD - 73 92
BEC - 83
REG - 88

Licensed CPA in the state of Michigan

[LT-P]

Can someone please help me out with a Governmental question (deferred inflows/outflows)??

The employer net pension liability for the Golf City Fire Department increased by $200,000 from Year 1 to Year 2 as a result of a change in the formula used to compute benefits for retiring firemen. The change includes $150,000 of cost attributable to prior service. As a result of this change, Golf City will display the following on their Year 2 government-wide financial statements:

a. Deferred inflows of resources of $50,000

b. Deferred outflows of resources of $50,000

c. Deferred outflows of resources of $150,000

d. Pension Expense of $200,000

Becker F8-34: Changes in a governmental pension liability that result from … SOME prior service costs are … deferred outflows …

The answer is B, but how do I know the portion attributable to PSC isn't deferred this time? Will it state in the problem that it's going to be deferred?

Thanks!

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

Ethics: TBD

[mypetmeatball]

Done with my very last Becker lecture, what a surreal feeling. No more of Tim Gearty's vocal tics and nose snort thing that he always does that you can only hear with headphones. No more Peter Olinto rambling about garbage for six minutes on one page. Very disappointed in the closing videos. “Good luck on FARE! I'm Tim Gearty and I'll see you on one of the other sections!” No you won't Tim; I'll never be seeing you again. No closure.

[Anonymous]

@StephAV

actually I have been studying FAR since last week of may and even went to fast pass classes the first 2 weeks of june… just wanna knock this out on the first try… scoring in the 90's on the homework and progress tests so I feel good about the materials… this is like my 3rd time going over all the homework problems since I started… doing everything I can so I don't have to look at this stuff after the exam

[Juranamo]

@mypetmeatball: question below

after burner...

[Juranamo]

@mypetmeatball: I am just starting FAR with Becker as my 1st paper. What strategy did you use? Watch vids first, notes later, then sims and tests? or how exactly? Just trying to device an attack plan. Thanks

after burner...

[mypetmeatball]

@Juranamo My plan was as follows. I have no idea if it's the best method or how effective it is, but I suppose it worked for me.

1) Watch lecture, but not completely. Usually about 90 mins worth or greater. Sometimes a module will be broken into tiny subchapters, in which case I would watch three or four of them to get to 90 minutes. Other times, a module will be only two subchapters, in which case I watch one of them

2) Read and create notecards. Truth be told, I rarely ever actually review with my notecards, so they aren't really that effective. But I do know that it helps me concentrate on the reading and pick out points that I don't think I'll remember.

3) Do HW questions

4) Complete module with first three steps

5) Redo incorrect answers until 100% correct.

I did the sims as I went for REG, but ditched it afterwards and only do them during the review now. It's not because I don't think they're helpful, I've just been getting lazier with time.

[StephAV]

@Tanaya – That question is tough… I think that it is saying out of the $200k liability $150k is due to prior service cost so those would be a PP adj maybe?? So then for Y2, it is just a $50k outflow as a liability is an outflow. I don't think I would have guessed the right answer there…

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.

[Juranamo]

@mypetmeatball: sounds logical. I'll take heed in that. If you do 1.5 hrs on lectures, how many hoursWe both have similar problems, i.e. I never go back to reread any note cards (since college). Don't know why. I am very nervous even before studying…don't know if its a good/bad sign.

after burner...

[Mike1987]

@mypetmeatball. How was F7-F10? I'm wrapping up F6..2-6 were brutal.

[mypetmeatball]

F7 – I like it. It's basically a bunch of stuff I still sort of remember from Intermediate Theory 3 during my undergrad. Probably my favorite/strongest section

F8 and F9 – I actually don't think gov't and NFP is that bad. It's a pain to understand the logic at first but it's pretty consistent. Once you understand it it's not too much of a hassle.

F10 – Random crap. Some of the MATERIAL is really hard, but the questions really aren't. Like for example, if the examiners wanted to, they could absolutely destroy your life with computation/JE problems for hedging derivatives. But, judging from the practice questions, they don't really do that. So really it's fine.

The IFRS section at the end is a godsend. It's like a final review for all things IFRS, and I surprised myself with how much I remembered. To summarize, if you're at F6 I think the worst is over.

[ramfan]

Someone please help!

I'm having trouble understanding the conceptual part of this MCQ (using Becker).

White Industries started operations Jan 1, Year 1, and recorded $400,000 in warranty expense during the year. Tax return income was $900,000. White will be required to pay these warranties $100,000 per year beginning in year 2. White expects to earn in excess of $100,000 in year 2 and 3, but believes it will more likely than not incur a loss in year 3. The enacted tax rate is 25%. What will income tax expense be for year 1?

I figured it was 125,000.

Taxable income = 900,000 * 25% = 225,000 – (400,000 * 25%) = 125,000.

Valuation allowance = 200,000 * 25% = 50,000

However, the correct journal entry is:

DR: Deferred Tax Asset 100,000

DR: Income Tax Expense 175,000 [125,000 + 50,000]

CR: Valuation Allowance 50,000

CR: Income Tax Payable 225,000

Why would we add the 50,000 for the valuation allowance to the year 1 tax expense? Because the allowance will reverse in year 3?

REG - 1/28/13 PASSED
AUD - 4/1/13 PASSED
BEC - 5/31/13 PASSED
FAR - 7/29/13

[zakahracw]

I'll have about 8 days to review before my exam. Is that enough if I do about 5-6 hrs a day?

~Z

"Live your Best Life"

[mypetmeatball]

^^^ I sure hope so. My review is only going to be seven days.

[Anonymous]

@ramfam

this is how i Understand it… reason why you add the 50000 to income tax expense is because of the conservatism principal.

you accrued the 400000 in year 1 and will reverse over the course of years 2-5 but after year 3 there will be no income so conservatism says since you won't be able to use the deferred tax asset, you expense it immediately.

F-6 Page 44:

A change in circumstances that causes a change in judgment about the ability to realize the related deferred tax asset in the future year should be recognized in income from continuing operations in the period of change.

[Author]

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