[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

[BBHYX]

Hey guys — I have a few quick JE questions

1) What would a journal entry for a “permanent loss” on an AFS security look like?

2) Becker book has no journal entries for % completion. If the construction project in year 3 turns to an estimated loss instead of profit and you must immediately recognize all losses, what does the JE look like?

3) When you realize gross profit on an installment sale, you literally Cr. “realized gross profit”, which I understand goes to income statement. However, there is no realized gross profit line in the I/S. Which line does the realized gp get combined into?

[taxfreak]

@xyz107, thank you so much!

[abig]

@Hiracpa, right on the same track as you but not too happy with my efficiency. Dont feel like ive done so well on what ive went through so far. I scheduled mine for the end of the window so i can restart at somepoint and not rush my review.

[Hiracpa]

@abig Ditto, I am not happy with the efficiency so far. I'm almost half way done with the material, but since I'm not doing so well not he MCQ's, I don't feel confident at all. When are you scheduling your exam for?

[zbzc]

hey everyone, I'm looking for a study buddy for FAR. I just finished F1 but not happy with my study efficiency at all. So want to find a study buddy to hold each other's hands on this journey 🙂 my plan is to take the test around Mid-Aug. If you are on similar schedule and interested in having a study buddy – basically to check on each other every day, please let me know. Thanks.

——————–
AUD – pass
BEC – pass
FAR – NINJA in Training
REG – TBD

[panic]

@zbzc i would like that, please. I think i actually need that. I am scheduled to sit mid Aug. i think literally the 15th. went through F1, midway through F2, and just feel like it's going horribly. I need a friend. Please, be my friend. I feel like i'm going to slow.. and if i try to just hurry and get through it, i can't learn. I just feel overwhelmed. Sometimes i remind myself, it's a marathon, i cant sprint, take mt time, one exam at a time, but other times, i just want to go ahead and schedule my next ones to hurry and study and pass or fail and retake and just move on from this misery, and sprint, bc i cant handle it. Wow ^ i need a nap.

[Hiracpa]

@vaheen yunus. Don't worry, you're not alone. I feel exactly the same, after about a month, I'm halfway done, at F5 now. It's so frustrating. I'd like to join you guys too as a study buddy.

I have a random question for the becker users. Are you guys highlighting and writing all the notes in the book with the lectures? I am, but am thinking twice about that now. If i write during the lecture, i feel like I am not absorbing as much cause I'm writing / highlighting. If i stop and highlight before or after, I feel like i'm spending double time on the lecture. What are your thoughts? tips?

[Gimme_a_75]

Hi all,

I'm sitting for FAR for the first time (hopefully only time) August 12. I'm using Roger and Ninja MCQs. Roger's program has been great and I'm 45% complete with the review. However, I really like the Ninja MCQs better than Roger's MCQs.

I'm struggling to find enough dedicated time to get through the material with my work schedule (fiscal year-end, merger in the works so I'm on 11 functional teams in addition to my regular duties) but should have a couple of weeks for Roger's cram review at the end if I can keep up the pace.

Employer is strongly encouraging everyone to test for the exam and paying for the experience. They won't make any concessions on schedules to allow study time though.

My biggest issue so far with the format is the horrible on-screen calculator. Why would any organization supposedly made-up of accountants think an online calculator would suffice in a timed test-taking environment? I absolutely detest that feature.

Anyway, I've lurked long enough and just wanted to introduce myself. The forums are a good way for me to get a little study break without completely veering off topic like I would with TV or social media.

[Wannafree]

@xyz ,
1.JE for AFS would be not much different than unrealized loss ,its just you don't display unrealized word .As you may know realized loss goes to IS ( unrealized goes to OCI )

Cash Dr 150
Realized gain on sale of available-for-sale securities CR 50
Available-for-sale securities (5 shares x $20) CR 100

2.Loss has to be accounted as per conservative principle of accounting ,as if it has already happened.
Construction in progress Dr 525
Expenses DR 350
Loss on Construction-in-Progress 100
Revenue CR 975
3.Realized word is not used as such ,rather understood as transaction occurred. So it can be gain on sales of AFS ( goes to IS ).
Unrealized is used to display that it has not really happened and the amount may go to OCI.
Hope it clears the doubt.
Just keep in mind where it is going IS/BS/OCI , naming of GL is just has to be meaningful.

[Wannafree]

Some of you seems are frustrated with slow progress of FAR study ,here are my suggestion.
Please don't get discouraged by your FAR progress ,it's normal .Continue pouncing it and after 2nd and third round of study it will make sense .
Here are my suggestions for improving your performance ( FAR ).
My suggestions to any of you who are struggling with any FAR review material, please look around and see which one suits you.
I don't believe that any particular review material is the Bible of cpa exam that you have to read it even if it seems Greek to you. LOL
Read the book which boost your study progress.
Also as far as FAR is concerned ,please have a look at CSO and you may try to study topic by topic.
You may make list the topics ( around 20 going by some of the review material and CSO ) and get the concept cleared of that topic .You may read any text book you like or google the topic and read that topic .It will be faster ,believe me it works.After the initial study of that topic attempt MCQ ( any review Home work or Mock MCQ ) is good on that topic.While you try to solve the MCQ , you may be right or wrong but still read the correct answer , it would clear that micro topic.
This way you can clear 2-3 topic a day ( aim for 2 topics at least ).
In 15 days you will cover the FAR completely ( primary level ).
Now you may deep dive into any review material ,mock test etc and solve the topics and make the notes side by side.
If any of you want the list of topics I can write that too.
Try this formula and see your progress in 3-4 days ,I am hopeful that you will see the progress visible.
Please also note the in new format of FAR every highlighted lines of any review material is not relevant anymore. FAR concepts required for exam but approach to testing has changed and all the review courses are shooting in dark as Tim Gearty has not appeared in exam for a while.
Let me mention here that initially I struggled to read even one chapter in 4-5 days and by the time I would reach 4th chapter ,previous 3 chapters used to vanish like vapor.
I followed the topic by topic and MCQ approach and it worked for me.

[ab29]

I'm working on the following Becker MCQ and I am wondering if it is an exception recognized revenue when produced instead of when it is delivered, such as for this example where revenue was recognized when they produced the 300K LBS.

Amar Farms produced 300,000 pounds of cotton during the 2010 season. Amar sells all of its cotton to Brye Company, which has agreed to purchase Amar's entire production at the prevailing market price. Recent legislation assures that the market price will not fall below $.70 per pound during the next two years. Amar's costs of selling and distributing the cotton are immaterial and can be reasonably estimated. Amar reports its inventory at expected exit value. During 2010, Amar sold and delivered to Brye 200,000 pounds at the market price of $.70. Amar sold the remaining 100,000 pounds during 2011 at the market price of $.72. What amount of revenue should Amar recognize in 2010?

The correct answer is $210,000 (300k*.7)

[CoachEmUp]

Pension accounting absolutely KICKED MY BUTT today in Wiley. I have a very basic idea of what is going on (I can compute the pension liability/asset, etc), but if it comes to an in depth question it's over for me.
Is it acceptable to just throw my hands up and hope to god i don't get a pension accounting TBS?

[sara]

@WannaFree, Thanks for the advice! could you please list the topics, if possible? I'm scheduled for FAR July 23, and am still on chapter 11 (32 chapters total, using Rogers). I'm not working (recent grad, going into a masters program) and plan on putting in 7-10 hrs a day to finish up the material with a week. Do you think I should also purchase NINJA MCQ?

[JAStansel]

@Gimme_a_75 I am in the same boat! I am sitting for FAR, my first attempt on any part of the exam, around August 21st. I am using Roger's and Ninja MCQ. I have been very happy with Roger's even though I am moving a bit slower than I was planning. I definitely need to speed it up. How many times are you going through Roger's material? I am listening to the lecture once, then reading through the book, then listening to the lecture a second time and taking notes during, then taking notes from the book. After watching the video at the beginning of the board, I am thinking of rewriting these notes into nuggets while at work. What has your plan been?

[Vinti]

@COACHEMUP I am also using wiley review material. I started today for FAR. Can you let me know how much time it will take to cover wiley whole material? And Are you using only wiley or some other review course also? I am scheduled to sit later Aug. Just wanted to check if I am not on track. Thanks!

[Author]

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