[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

[DeterminedCPAer]

Good luck @coachemup

[DeterminedCPAer]

@abig

I feel you. Audit was hard for me because I never had experience in it. It was so hard for me to retain what I was learning besides some basics on controls and risk. I got a 76 and am thankful I passed. I know I must have gotten zero or only a few points on the DRS. I know I got the research SIM wrong too.

[DeterminedCPAer]

@emsmith06

I'm sure you did fine. Any tips or focus areas you can share?

[mattypxam14]

Test tomorrow! Somebody?

Can someone explain to me how to find the effective interest rate with bond issuance costs when it is not given? The effective interest rate is typically higher than the market an yield rate with bond issuance costs, but I am clueless on how to find it.

[Joey]

Thanks for the information! If you wouldn't mind letting me know if you passed and any other helpful/insightful information, I'd appreciate it because I'm scheduled to take the exam 8/31. Thank you!

[Wannafree]

The issuance of bonds involves engraving and printing costs, legal and accounting fees,commissions, promotion costs, and other similar charges. These costs should be recorded as a reduction to the issue amount of the bond payable and then amortized into expense over
the life of the bond, through an adjustment to the effective-interest rate. For example, if
the face value of the bond is $100,000 and issue costs are $1,000, then the bond payable (net
of the bond issue costs) is recorded at $99,000. Thus, the effective-interest rate will be higher,
based on the reduced carrying value.
In simple words reduce Bond issuance cost from payable and you get the net carrying value.As carrying value will be lower , effective interest rate would be higher.

[cpApex Predator]

Yeah, wannaFree, that is correct. To calculate the adjusted interest rate you would have the 99,000= present value of annuity due of the interest with unknown m, plus present value of one dollar solving for m of the principle of 100,000. You can solve it with the IRR (internal rate of return function) in a spreadsheet where you put the face value at the top, all of the payments going down, and then put a function =IRR(range). Chance of having to solve this is low, but I did notice that in the Wiley study material it listed this as a possible simulation in regards to troubled debt restructuring when you have to calculate the new interest rate of the terms. If you only had one variable then you could solve using a table where you derive the present value factor, and then look that up in the table to see what interest rate corresponds to the particular present value factor.

[job895]

Hey what's up guys I'm about a month out from my exam (August 29th). I just finished FAR 6 using Becker. My biggest concern is the SIM's. How do you guys review for them? I've been told they're NOTHING like the SIM's Becker gives you. Does anyone know of an effective way to review for them? I bought the NINJA MCQ's so I think I'll be fine in that area.

[frankrsa]

@job895,

I literally just took FAR today…. SIMS were pretty similar to Becker. There was one that seemed ridiculous, but I sincerely think that it will be the throwaway test question.

Regardless, keep doing MCQ questions and reviewing the SIMS and you will be fine! (PS, not really going to talk anymore about the exam).

Good Luck!!

[Vinti]

@jobs895
Looks like we are in same boat. I am scheduled for 8/31. Currently on F-6. what is your study strategy?? Its taking a quite long time if I do each and every MCQ and SIMs together with lecture. So I am thinking to skip some MCQs for later. How much time are you taking for each Chapter or individual lesson? Whats your study plan.

[job895]

@Vinti I've been studying since the Fourth of July. My full time position doesn't start for awhile so I have all day to study. I study generally from 11-5 then 9-12 at night. I just go through everything (though skills practice don't help as much).

I'm just concerned when it comes to reviewing. I'll have about 2 1/2 weeks to review and want to make it the as efficient as possible.

[DeterminedCPAer]

@job895

I would say spend the 2 and half weeks to skim through the pages. I forgot a lot of the stuff I learned as I went through all 10 chapters of Becker. That helps rejog your memory. Then I would say do as many MCQs as you can in the time frame. I'm not studying for SIMs but I will review them for one of my days.

[abig]

@emsmith06

I passed Reg and Bec by a nice margin but thought I failed walking out.

I walked out of Audit feeling even worse…I was more conscious of mistakes on Audit for sure because its so boring.

Now studying for FAR and definitely think I forgot F1-F4 when I just started F6

[DJK]

Why does the test bank still contain topics that aren't tested such as personal financial statements and partnerships?

[RutgersCPA72]

@DJK it appears they are working on removing some of the untested material.

Here's the link to the 2017 “Do Not Study” MCQ List.

[Author]

Replies