[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]

Does anyone know the J/E for property dividends at the date of declaration? Thank u.

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

Ethics: TBD

[typhoon44]

adjust the property to fair market value recognize any gain or lose

dr: Adjustment to FMV -asset account

cr: G–I/S

IF IT IS A LOSS:

dR: lOSS–i/s

cr: Adjustment to FMV -asset account

R/e- FMV property

dividends payable

REG: passed
FAR: passed

[typhoon44]

Sorry, double post

REG: passed
FAR: passed

[ZSRizvi]

I am really just trudging through this material. It's taken me two weeks to finish two chapters.

I might have to move my test date further at this rate.

And it's just harder to study when you're waiting for your scores on other tests. [insert labored sigh]

*goes back to trudging along*

EDIT: I just remembered I had a dream last night about an allowance for doubtful accounts and I remember saying something along the lines of, “They should also make an allowance for bad luck, because I seem to sure have a lot of that.”

Dear Lord. Dreaming about the CPA and making wise-cracks in those dreams.

I need to read/watch something happy before going to sleep.

BEC (July 2013)
FAR (OCT 2013)
REG (NOV 2013)
AUD (JAN 2014)

The CPA Exam is an opponent that not even the Fellowship of the Ring would want to come across.

I have a long...long...journey ahead of me.

[Anonymous]

Becker F4 MCQ #10 in the chapter.

Based on a physical inventory taken on December 31, an entity determined its inventory on a FIFO basis to be $70,000, with a replacement cost of $65,000. The entity estimated that after further processing costs of $8,000, the completed inventory could be sold for $75,000. The entity's normal profit margin is 30%. What amount should the entity report as inventory in its December 31 balance sheet under IFRS?

A. 67,000

B. 70,000

C. 75,000

D. 83,000

Answer is A, but why wouldn't cost be $65,000?

(Market is NRV, which is 75,000 – 8,000 = 67,000)

[Mike1987]

I believe that is because replacement cost is an entrance cost not the cost of what we bought. The cost of our inventory is measured using FIFO so it would be 70k.

[Anonymous]

Maybe I misunderstand “cost”… I thought cost was replacement cost, i.e., what you could buy the equivalent item for in the market today.

[Nevergiveup2012]

@DJN – The question is IFRS , not U.S. GAAP.

For IFRS is the lower of NRV or Cost (FIFO). Replacement cost is not used in IFRS, that's only for U.S. GAAP

NRV = 75-8 = 67

Cost (FIFO) = 70

so the lower of the two, is NRV=67

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

[Nevergiveup2012]

@DJN – Cost is what's in the books , which is typically FIFO. Replacement cost may or may not be recorded in the books , depending on if it's lower than the cost.

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

[tmac87]

Hey guys, I was wondering if anyone knew about this:

Company A enters into a contract to exchange unsold advertising time, with company B for travel and lodging services. As of June 30, $10,000 of commercials were used. No travel/lodging has been provided. How should Company A account for this in their financial statements?

I chose “Both the revenue and expense of $10,000 are recognized” which I only chose since Becker also told me “Expenses are necessarily incurred to generate revenues”, (not in this case evidently). The answer was “An asset and revenue for $10,000 is recognized.”

I understand the asset is probably some type of prepaid lodging or whatnot, but then why is there revenue, and no acknowledgement of the costs for the advertising we provided?

[Anonymous]

OK, so COST = what you've got it on the books for. REPLACEMENT COST = what you could buy it for today.

Under IFRS then you're looking at COST on the books vs. NRV (i.e., what you could sell it for less costs to complete and sell).

Under GAAP then you're really looking at FOUR things: COST on the books versus the MIDDLE of

– replacement cost

– ceiling (which is NRV; what you could sell it for less costs to complete and sell)

– floor (which is ceiling less profit)

I'm sure I'm making this much much harder than it really is, and THANK YOU everyone for helping me on this!

[Nevergiveup2012]

@DJN – YOU GOT IT!! good job.

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

[Anonymous]

@Nevergiveup2012 – THANK YOU!!!

And all of you – I can't tell you guys how much I appreciate the help you give me!!!

[Nevergiveup2012]

@NYCAccountant – OMG..I did learn the nonmonetary exchanges in F2! I guess I was surprised to see some work problems in F4. Shame on me for already forgetting the topic.

What you explained is spot on with one minor correction. Losses in lack commercial substance transaction is always recognized whether boot received or not. (ASC-360). Otherwise the new asset would be valued in excess of the realizable amount (FV).

Good memory though…better than mine.

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

[NYCaccountant]

Does anyone believe the pop quiz aspect of Wiley is pretty good or not? I had been doing practice sessions of about 30-40

questions on combined topics and usually get around a 90-95. I'm nervous because I'm not writing notes, but somehow answering these questions correctly and feel like i'm absorbing the material. I feel like the material is not hard at all, with the exception of pensions, which clicked after about 4 days lol for me. I just to want to be prepared and pass this exam. I just feel like i'm somehow setting myself up for failure, so I started doing pop quizzes, and I might get 100 on a set of 30 for almost every module included. I use cpareviewforfree as well, and those questions used to be harder for me, but i'm getting those all correct first time through as well. For those who have taking the exam, did you have a similar experience to mine, and somehow failed? I test October 5, have about 250 pages left to go through Wiley. I'm starting with business combinations today, which i've heard is very difficult, so I'm expecting to come back to reality.

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

[Author]

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