[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

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

[jpowell31]

haha i'm right there with you. i'm panicking reviewing my notes like wtf i barely remember this but am doing pretty well on MCQ. i over-“marked” questions to review thinking i'd forget easy bits now so it need to pick and choose now what to go back to review i think.

anxiety will probably not let me sleep well tonight!

[Anonymous]

I keep getting this feeling similar to ‘did I turn the oven off before I left?' one, but exam related. I get agitated, flipping pages trying to find the topic that I supposedly forgot. It sucks. Is this what the anxiety is?

[D C]

@anna… yes, i feel your pain… we all go thru it.. no matter how much time we put into this we never will/can know everything.

i still make stupid mistakes and second guess myself sometimes on the MCQs. I think with the amount of information that we are cramming into our brains right now that when we see a problem we like think of the 20 different possible ways to look at the question just hoping to pick the right concept, computations, and eventually answer…. yes I def think its anxiety plus pressure of this exam.

But you should always go with your “gut” and start with the question stem it helps reduce stress levels especially when you see like a whole financial statement(s) or two paragraph questions.

Ok now for my question… regarding Discontinued Operations.

I only studied becker so didn't come a cross a question like this but just did a ninja MCQ and it was presented and answered slightly different.

Discontinued operations with two years presented. 20×2 and 20×1.

They board decided to designate the specific segment as “available/held for sale” i.e. discontinued in Jan of 20×2. They provided the loss on operations for 20×2 and gain on sale which was completed in december of 20×2. They also gave the tax rate which would need to be applied.

For my answer i selected the answer which included the losses from the current year that I offset by the gain on sale and reported it net of tax. Nothing for previous year because the decision to sell it was made in 20×2. However the correct answer included the loss in operations from 20×1, net of tax as well.

Why is this so? I thought you only include the loss from operations, any impairments, and gain/loss on sale only from the point it is designated as discontinued and forward. Never experienced one with a prior year presented.

whats up with that?

B - 80
A - 71, 67, 77
R - 71, 77
F - 72, 77
DONE!!
Becker Self-study all the way! Did use Ninja Notes & Audio for FAR.

[jstay]

@anjanja exact same feeling! did that with long term debt restructuring..but now i feel like i got it, so i guess it kinda helps?

[pia ach]

Doing the chapter 10 financial instruments, and getting confused with the hedges..how do you know if a question is a fair value hedge or cash flow hedge?

Finally done!!! Experience-pending. Ethics- Pending.
Reg 78 / 73/82.
Aud 74/89.
BEC 72 /78.
FAR 74/ 73/ 82.

[jstay]

@D C, is that wrong then? i feel like you are right, the loss from 20×1 should be included in the x1 financials.

also, i think Becker had some like that. where they decided to sell in, say x1, and then completed it in x2 and i think i remember you needed to include any impairment and loss from operations in x1 F/S and then the continued loss from x2 up until sale, and any more impairments if needed.

[Anonymous]

D C,

Yes, operating losses for 2001 are shown as losses from discontinued operations (for comparative purpose). Impairment loss could also be recognized in 2001, because the asset is reclassified as held for sale

[HopefulCPA0601]

@pia – they usually tell you, but look up ahead we gave a definition of both just a few posts before

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[amannan]

hello everyone. is it possible to get the online test bank preferably wiley test bank for the FAR exam from someone over here. i just need it for 2 3 months. the wiley website offers it for an year.

[jpowell31]

@DC hmm if it's only available for sale as of January i would think the same as you… it crosses over two years when made available for sale one year, then actually sells the next year. i don't know if i'd seen questions actually ASK about other periods presented but it definitely wasn't covered in Becker as i shut that door yesterday and sealed it.

@pia ach – scroll up. the questions will either specifically state FV vs Cashflow hedge bu FV is essentially difference in FV of an asset/liability or of an unrecognized firm committment – Ninjas example is an interest rate swap

Cash flow hedge would be hegding of cashflows of an asset/liability or a future transaction. example would be a futures contract. this is definitely a fuzzy area for me as well.

[jpowell31]

@DC – maybe it's just including the losses in year 1 in the continuing operations sections? losses still need to be recognized, but they wouldn't be classified as discontinued until made held for sale…but then maybe now that i think about it – if comparative years are shown maybe you do (which is also why you would show the full 12 months of losses even if held for sale decision was in October..

[D C]

@jstay…. well i'm not sure… the problem i described, decided to sell it in year 2, not year 1. yes it did have losses from the prior year but it wasn't designated as discontinued in year 2….so I didn't know if we need to include them, according on the ninja mcq yes.

the becker ones you are describing are straight forward.. .decide to dispose of it in year 1 complete the sale in year 2, you include year 1 losses and impairments, as well as year 2 losses to the point of sale and any g/l on the sale.

B - 80
A - 71, 67, 77
R - 71, 77
F - 72, 77
DONE!!
Becker Self-study all the way! Did use Ninja Notes & Audio for FAR.

[HopefulCPA0601]

Hey DC – once you decide to put up a componetn for sale, you record discop on any impairment loss, operating loss, and loss on disposal. So even if you are not selling until year 2, in year 1 you would record impairment loss and any operating loss incurred.

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[jstay]

so then wouldn't it just be included as a loss from continuing operations then?

that question is weird and i hope the questions on the exam are more straightforward

how many mcq does everyone average per day?

[Anonymous]

In 20X1, Chain, Inc., purchased a $1,000,000 life insurance policy on its president, of which Chain is the beneficiary. Information regarding the policy for the year ending December 31, 20X6, follows:

Cash surrender value (01/01/X6) $ 87,000

Cash surrender value (12/31/X6) 108,000

Annual advance premium paid (01/01/X6) 40,000

During 20X6, dividends of $6,000 were applied to increase the cash surrender value of the policy. What amount should Chain report as life insurance expense for 20X6?

A. $40,000

B. $25,000

Correct C. $19,000

D. $13,000

The increase in cash surrender value is deducted because cash surrender value of the insurance policy is an asset. Also, the increase in this asset already includes the effect of the $6,000 in dividends applied to it in 20X6.

Does this make sense? I don't get it. What would the entry be here?

DR Insurance Expense $25000

DR Cash Surrender Value $15000

CR Cash $40000

DR Cash Surrender Value $6000

CR Dividends $6000

[Author]

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