[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]

ahh yeah. i prefer those…

welp of course it has to get harder…they cant make fewer laws or get with this whole IFRS convergence thing quicker. once we pass it'll be final and everyone will just have to learn one set of rules and we'll tell everyone how we had it soooo bad. lol

[Anonymous]

From what I read and what my CPA father-in-law tells me, IFRS has a very slim chance of moving forward in the US. I'm sure some of the more common sense treatments may “converge”, but it seems like IFRS is the modern metric system for US accounting.

[Melans]

Went ahead and just snagged the 10 point combo to supplement Becker. Got all the audio on my phone, and will print notes at work tomorrow.

AUD 7/30/12 73; 12/2/13 85
BEC 7/19/13 81
REG 8/2/14 83
FAR - Jan 2015

[Iggy1985]

So I'm cruising along on the deferred taxes MCQs, when I get this one, and I just can't wrap my head around it at all.

North, Inc. uses the equity method of accounting for its 50% investment in Mill Corp.’s common stock. During year 3, Mill reported earnings of $600,000 and paid dividends of $200,000. Assume that: (1) all undistributed earnings of Mill will be distributed as dividends in future periods, (2) the dividends received from Mill are eligible for the 80% dividends received deduction, and (3) North’s income tax rate is 30%. The change in the amount of deferred income tax to be reported by North for year 3 is

$12,000

. Under the equity method, North included revenue of $300,000 ($600,000 x 50%) in its book income. The dividends received of $100,000 ($200,000 x 50%) were reported as a reduction of the investment in Mill Corp. account. Taxable income, however, included the dividends but excluded the undistributed earnings. The total difference between book and taxable income is, therefore, $200,000. This entire amount will eventually be included in taxable income when distributed as dividends. Then, however, there would be an 80% DRD (permanent difference) of $160,000 ($200,000 x 80%). The remaining $40,000 is a temporary difference which should be reflected as a $12,000 increase in the deferred tax liability account ($40,000 x 30%).

I thought of it as – equity in income; 300k income for books 0 income for tax. But they will be distributed as dividends later, receiving the 80% DRD, so 60k will be taxable in future periods. x30% = 18k DTL

Then dividends, 0 income for books, 100k income for tax, after the 80% DRD, 20k is taxable NOW, cause they received them this year. so, 6000 in tax for the current year.

Does anyone get this?

and here I go again spending like 30 minutes on one question because it doesn't make sense to me.. it's also happened on the 5 questions I've found mistakes or wrong answers and had to figure it out then email wiley.. on the plus side they've emailed me back for 4 of them saying they'd fix it and they appreciate my constant emails correcting them lol

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[Iggy1985]

oh my gosh I can't stop thinking about it >_> not being able to let things go is seriously my biggest downfall right now lol.. I keep wanting to email my advanced professor for help but I feel like a nuisance haha

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[moreinfo2013]

How many statements should a private NFP organization present? Which ones?

[Iggy1985]

Holy Moly! I think I figured it out! they had 300k of equity in income, with 100k of the income being distributed as dividends this year, meaning only 200k of the equity in income is ‘undistributed'. x (1-.8 DRD) = 40,000 x 30% = 12,000 DTL. and still the 6k tax on their share of the dividends after DRD. wow. I can move on with my life now lol…

and only a 66% on my 30 random question practice test 🙁

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[Iggy1985]

moreinfo2013: Statement of Financial Position, Statement of Activities, and Statement of Cash flows (with voluntary health and welfare orgs also requiring a Statement of Functional Expenses) – correct me if I'm wrong anyone cause I'm saving NFP/Gvmnt for last lol

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[D C]

iggy… u got it… we had some post on in the Q3 page a few weeks back on the same questions. “undistributed” dividends is right.. it would pay taxes on the earnings in excess of the DRD.

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.

[Iggy1985]

Does this question make sense to you, or am I just getting tired? Looks like I'm emailing Wiley again? lol

Each of the following is a component of the changes in the net assets available for benefits of a defined benefit pension plan trust, except

The income statement.

The statement of cash flows.

The statement of financial position.

The notes to the financial statements only.

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[moreinfo2013]

lggy1985: Thank you for your reply! Sorry I forgot to mention that I wanted to know how many FS were supposed to be presented for “NFP health care organizations” in my initial question.

The reason why I am confused on this one is because under “Health Care Organization Accounting—Private Sector” Wiley says: “Financial statements include a balance sheet, a statement of operations, a statement of changes in net assets, a cash flow statement, and notes to the financial statements. However, Roger says “two statements are presented for a private sector NFP hospital: the statement of operations (activities) & the statement of changes in net assets.” So who's right???

[Iggy1985]

well in the beginning of the NFP section of wiley review book it says Statement of Financial Position (B/S, Net Assets), Statement of Activities (I/S, Change in Net assets) and Statement of Cash Flows, with health care organizations also requiring Statement of Functional Expenses in addition

on p 996 of Wiley book in the healthcare section it also says “two statements are presented for a private not-for-profit hospital, both taken from the Guide. But I think they are just saying, here we are presenting two statements for you to look at. Not sure though!

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[jstay]

iggy, is it statement of cash flows?

[UHC2005]

@dmende – I got an article in my e-mail from one of the accounting publications where it said that the head of the IASB believes that convergence just isn't possible.

Crud, I can't link to the full article anymore but here's the gist of it:

“FULL convergence with the United States – leading to the creation of one single set of global accounting standards – is no longer an achievable project, said Hans Hoogervorst, chairman of the International Accounting Standards Board (IASB), at the Singapore Accountancy Convention (SAC) on Thursday.

His grim pronouncement leaves no doubt as to the fate of collaborative efforts that began over a decade ago; it also comes shortly after the IASB – the global accounting standards setter – published its completed international financial reporting standard (IFRS) on financial instruments, IFRS 9, without the US Financial Accounting Standards Board's (FASB) participation.”

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[D C]

@iggy sounds like a pension question mixed with smt of CFs?? my guess is the following.

.

Your PBO and Plan Assets – B/S

Changes in the funded status of the defined benefit plan are in OCI – I/S

Your Net Periodic Pension Cost/Exp is also a I/S.

You need to disclose description, reconciliation, expense, something else there is one more. – Notes to F/S

So I would say Stmt of CFs is not involved.

or the investment in Plan assets is a cash outflow and there fore it does “change” and then notes are not involved…

what was the answer?

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.

[Author]

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