[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

[abanhiqbal]

@Hannah definitely the ones in F2M6, Depreciation, Goodwill/NCI (GAAP vs IFRS). Pension calculations are also important but I wouldn't consider that a formula.

[Gimme_a_75]

@ssara4214 for me, I found the Roger MCQs not as challenging and a little repetitious to be honest. I purchased the Ninja MCQs for FAR and have found them much more useful. I especially like the detailed explanations the Ninja MCQs go into for each answer. I'm still working the Roger MCQs but the Ninja MCQs really help to clarify my weak areas.

[ab29]

I'm working on the following problem and I wanted to get an explanation onto why we don't include the 12/31 payment when calculating the weighted average amount.

Sea Manufacturing Corp. is constructing a new factory building. During the current calendar year, Sea made the following payments to the construction company:

January 2 $1,000,000
December 31 1,000,000

Sea has an 8%, three-year construction loan of $3,000,000. What is the amount of interest costs that Sea may capitalize during the current year?

Answer: $80,000

[Krakebo007]

@Alfonso Bourghol
Sea Manufacturing Corp. should capitalize interest payable during the calender year which is $80,000 related to the loan of $1000'000 which paid to the construction company on jan,2 ,however the interest of the other $1000,000 is still not payable because it was paid at last day of the calender year .

Journey started 15-08-2015
BEC 01-10-2015
FAR 29-11-2015
AUD 03-01-2016
REG 29-02-2016

[taxfreak]

Taking this beast on saturday! Can't wait to get it over with (hopefully i pass)
but still cannot wrap my head around stock dividend. Somehow my notes say to record a memo for stock dividend…but there should be actual JE's made for small and large stock dividend.

Can someone please explain?

THANK YOU!

[panic]

Question: on the exam, JE questions/problems, does it have the drop down with the account options, like in skills practices in Becker. Or do we need to know the account and type it in ourselves per prob

[Wannafree]

@TaxFreak ,
Logic : For large stock dividends, the share price is likely to be impacted. For instance, if a stock is trading at $60 and there is a 100% stock dividend, the market will react and the stock price will be cut in half since all investors now own 2 times as many shares. If you double the shares, but the price is cut in half, you have not made any money on the stock dividend. As a result, large stock dividends are accounted for at par value instead of fair value.
JE for small:
RE DR ( Fair value of shares )
Stock Cr ( Par value )
APIC Cr (difference )

For large
RE DR ( Par )
common stock Cr ( par )

Confusing part is range 20-25% threshold but don't worry most questions are less than 20% or more than 25% of outstanding shares.
Hope it will help.
All the best for Saturday.

[justa75pls]

@taxfreak
Only a memo entry is required for the receiver of the stock dividend;
JE's are recorded by the issuer of the stock dividend (small, large)

Hope this helps. I take the exam on Monday–Good luck!!

[Wannafree]

thanks @justa75pls ,I had missed the receiver part .

[samantha09]

Does anyone know if they've tested on putting together Fund financials from scratch??

[rusty67]

Hey all.
So I know there are some research questions on the FAR exam where you have to go through the codification.
But on the FASB website, not all of the features are available unless you pay. Is there a way to get all the features? like the search box doesn't work.

[jmiller13]

I have a question on the FAR SIMS. I was working one of the journal entry questions and I had all of the debits and credits correct in title and amount, but the order of my debits were different than the answer so it counted them incorrect. Is there a certain order that you are supposed use? I always put the debits first and the credits second, but do I have to put them alphabetical by title? I didn't know if that was just a practice question thing or if the actual exam graded that way also?

Thanks!

[CoachEmUp]

@jmiller I haven't taken the exam but I can't imagine you'd have to worry about something like that. Don't worry about whatever software you're using, it probably is way too sensitive and not giving you the credit you'll get on the exam. Just worry about getting the entries right.

To all those taking the test tomorrow (July 1!) best of luck! Go dominate!

[Sweetie1]

I also am looking for answers to these questions @Samantha09 & panic@now…

Does the exam use drop down menus for journal entries like the Becker Review, or do we need to know the exact wording they are looking for?

& Have they or do they test on preparing government financials from scratch?

Did either of you get any answers to this yet?

Good luck to all test takers starting this window!

[IwannabeaCPA2017]

Can someone simplify this. Im not getting the explanation quite well
Kell Corp's $95,000 US GAAP net income fro the quarter ended Sept. 30 Year 1, included the following after-tax items:

~A $60,000 extraordinary gain, realized on April 30, Year 1, was allocated equally to the second, third, and fourth quarters of year 1.

~A $16,000 cumulative-effect loss resulting from a change in inventory valuation method was recognized on Aug. 2, Year 1.

In addition, Kell paid $48,000 on February 1, year 1, for Year 1 calendar-year property taxes. Of this amount, $12,000 was allocated to the third quarter of Year 1.

For the quarter ended Set. 30, Year 1, Kell should report net income of:

a. $91,000

b. $103,000

c. $111,000

d. $115,000

Answer is A.

[Author]

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