[jeff]

Welcome to the Q3 2017 CPA Exam Study Group for FAR. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your FAR exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

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

[Wannafree]

Concept part would be same ,Time management is the mantra in new format.As you got 82 in mock test your concept part is awesome.Just plan for good time management.You should be good.
FAR is easy in new format.Yeah Yeah see who is saying this , the guy who was crushed in q2.LOL

[Wannafree]

@justa75plus , sorry my post was not intended to terrify anyone.FAR in new format is not horrible compared to REG.

[jwalk]

Help… Pensions F7 M2. Can someone please explain to me the dr. and cr. to AOCI/OCI.

Gains/losses
Amortization of gains and losses?
How do these effect AOCI/OCI?
I think I am just missing the point on Pensions.

AUD – TBD
FAR – IN PROGRESS (DYING)
BEC – TBD
REG – TBD

Accounting in general – TBD

[Christy CPA]

Quick Question. Can't understand why Budgetary Control is debited for 240k. Shouldn't Budgetary Control be debited for the amount paid to obtain the truck, $280k?

Question: The town of Oceanview budgeted $500k for the purchase of two fully equipped fire trucks during the fiscal year ended Dec 31, Yr 1. The Town issued a purchase order for the acquisition of both trucks for a total for $480k on Feb 1, Yr 1 and accepted delivery of one of the trucks, valued at $280k on March 31, Year 1. As a result of this delivery of one of the ordered vehicles, the town of oceanview general fund would record a:

ANSWER: A credit to encumbrances for 240k.

I believe to reverse the amount paid and recorded you would need to debit budgetary control account for 280k and credit encumbrances for 280k. Please correct me if i'm wrong.

[hannahmanca]

Need help with long-term liabilities; the time value of money. I do not understand the annuities part at all! I am getting so aggravated!

Help me, please!!!

[Hiracpa]

Does anyone have any suggestions of where to find tutors? I'm doing FAR in becker, while waiting for my audit results. Each freakin' module is quite hard. I have a lot of experience in the work force, and I am currently not working. Yes, I get what a luxury that is. However, I get stuck on so many sections. Nonmonetary transactions took me a freakin day, and now I'm just kinda stuck at the intercompany eliminations. I understood the lecture ok, but not getting any of the MCQs. Do i go ahead with the other lectures and come back to this? Any suggestions would be great, this is quite overwhelming.

[abig]

Anyone care to explain Variable interest entities? I'm having trouble understanding

[CoachEmUp]

@Christy Encumbrance accounting. You get a purchase order for the trucks: Dr Encumbrances 480k, Cr Budgetary Fund Balance 480k. When you receive 1 of the items it is: Dr Budgetary Fund Balance 240k, Cr Encumbrances 240k (paid 480k for two, so 240k each, forget about the FV of it DISTRACTOR INFO!).
When you finally receive an invoice the entry would be: Dr Expenditures 480k, Cr Vouchers Payable (or cash) 480k. Hope this helps!

[Christy CPA]

@CoachEmUp Thank you so much! I really appreciate it.

[setmefree]

cant seem to add the answer to 209, help please

The following information relates to a post-retirement benefit plan:

APBO beginning, $300mn

Plan assets beginning, $100mn

Net post-retirement benefit gain, beginning, $20mn

Amortization of net gain or loss is based on SL method, ten-year average remaining service period

Prior-service cost, initial amount, recognized four years ago, $50mn

Amortization of prior-service cost is based on SL method, ten-year average remaining service period

Service cost, $40mn

Discount rate, 5%

Expected rate of return, 6%

Actual return, $10mn

Change in estimated life expectancy caused a gain of $16mn, year-end

Funding contribution, $20mn

What amount will be reported in the ending balance sheet for post-retirement benefit liability?

$209mn
$213m
$9mn
$212mn

[hmaevilla]

Dollar Value LIFO — Grrr. So much to remember! Progress test kicked me in the tush yesterday. Just getting used to calculating Bonds, Note Payable, and Asset Retirement Cost (still trying to get that clear in the head) then BAM! DV LIFO problem tossed into the mix.

Working 36 MC questions at a time to mimic a testlet and need to get it whittled down to 54 minutes.

Ok, back to work. I CAN DO THIS!!!!

[hmaevilla]

I am in the same boat with studying for FAR. Also have the luxury of this being my full time focus. I had to increase the time I study for FAR. Instead of 4 to 6 it is 7 hours a day at least! I still need to go back and review Non Monetary transactions had a hard time with that in school too.

Anyway, KEEP AT IT you can do this even if it takes you longer studying than you usually do for tests. This is a marathon, a marathon, slow steady, small bites.

I WILL and YOU WILL EAT THIS ELEPHANT!

[CoachEmUp]

@hmaevilla I too am studying full time (although I'm doing 5-6 hours a day as that's about all my brain can function clearly on).
Dollar Value LIFO is one of the few things I actually wrote: Not tested heavily (according to Wiley) and too confusing, skip!

[Hiracpa]

For those of you, who are studying full time, how much time are you giving yourself to study for the FAR? I started in the very beginning of June. I was planning on taking it mid August, but now I'm thinking I need to push it back to end of August or beginning of Sept. I've gotten through F4 in Becker, but I need a lot of extra time for review and the simulations. Thoughts?

Thanks for the encouragement, @hmaevilla !

[Pacman71]

@ Hiracpa

I started 14 days ago, only have 50hrs 27mins of study time (I track with Excel) and I am 35% of the way through the material. I am scheduled to take the exam on July 25th. I WILL be completely finishing through all the material by July 11th, to give me two solid weeks of nothing but reviewing/taking additional notes (fact nuggets as Jeff says), doing MCQ, and doing TBS. I skip the “fluff” associated with my study material (Wiley), and avoid unnecessary things, like taking the same quiz/pretest more than once.

The consensus is for FAR: Get through the material first, review the material in-depth, then do MCQ and TBS like your life depends on it leading up to your exam for the last two(ish) weeks.

Starting Saturday @ 6:00 AM I will be spending at least 9 hours a day on studying, because I will start a reduced schedule for work to allow me time to study more.

In short, I would be fearful pushing it off that long, due to the fact you might start losing information you learned three months previously (June-September). Remember: No matter how long or hard you study, you will never be FULLY prepared.

WATCH THIS: Not to be a “brown noser,” but this video is actually why I started using NINJA. Very useful information, and sounds like this is your exact situation: https://www.youtube.com/watch?v=p3j0Sm269_k

[Author]

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