[jeff]

FAR Resources:

Free FAR Notes & Audio – https://www.another71.com/cpa-exam-study-plan

FAR 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

FAR Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[Study Monk]

Also that is the process for consolidation at the acquisition date. In future consolidations you will be accounting for the revenues and expenses directly on the income statement of the parent because you are considered a combined entity on the financials. So you will have to start subtracting the retained earnings at the date of the acquisition every year. By doing this you can start accounting for new income as if the parent is earning it and dividends as if the parent is declaring it.

date of acquisition retained earnings= beg retained earnings + income -dividends for period up to date of acquisition

after date of acquisition(year 2 of the consolidation for example)= beg retained earnings -income from year +dividends-/+ any other changes that happened since acquisition date=retained earnings at date of acquisition >>>>>>>>retained earnings at date of acquisition is what you will use in all future periods.

This appears to be right 🙂 I hope I didn't confuse you

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

Also that is the process for consolidation at the acquisition date. In future consolidations you will be accounting for the revenues and expenses directly on the income statement of the parent because you are considered a combined entity on the financials. So you will have to start subtracting the retained earnings at the date of the acquisition every year. By doing this you can start accounting for new income as if the parent is earning it and dividends as if the parent is declaring it.

date of acquisition retained earnings= beg retained earnings + income -dividends for period up to date of acquisition

after date of acquisition(year 2 of the consolidation for example)= beg retained earnings -income from year +dividends-/+ any other changes that happened since acquisition date=retained earnings at date of acquisition >>>>>>>>retained earnings at date of acquisition is what you will use in all future periods.

This appears to be right 🙂 I hope I didn't confuse you

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Amay]

@Jen I know, Sorry!!! I just couldn't do it. All hell broke lose at work and I just was not handling the stress properly. I am glad you are sticking to it though. Don't worry, we are still in this together! 🙂

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

@Jen I know, Sorry!!! I just couldn't do it. All hell broke lose at work and I just was not handling the stress properly. I am glad you are sticking to it though. Don't worry, we are still in this together! 🙂

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Jennifer241]

@Amay I am through all my material and trudging through MCQ's at the moment. Definitely missing my study buddy's with you and Insi, but I will keep trucking on. Sorry to hear about the issues at work, it seems like there has been a lot of employee turn-around in my area lately.

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Jennifer241]

@Amay I am through all my material and trudging through MCQ's at the moment. Definitely missing my study buddy's with you and Insi, but I will keep trucking on. Sorry to hear about the issues at work, it seems like there has been a lot of employee turn-around in my area lately.

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[lucretia123]

Goodwill for a new Partner Question

I have a 2012 Becker book and on page F10-10 they are using the Profit & Loss share to allocate the Goodwill (60:40). I was just relistening to my Ninja Audio for Partnership accounting and it says to allocate based on the old Capital balances which for the Becker example would have been $30k:$10k (not 60:40 as done in the example). Thoughts?

Just trying to understand which is right in case I see a question on the exam. Which is tomorrow – ack!

Thanks!

BEC - Passed AUD - Passed REG - Passed FAR - Passed
It feel surreal to be done with the exams! I think it is still sinking in.

[lucretia123]

Goodwill for a new Partner Question

I have a 2012 Becker book and on page F10-10 they are using the Profit & Loss share to allocate the Goodwill (60:40). I was just relistening to my Ninja Audio for Partnership accounting and it says to allocate based on the old Capital balances which for the Becker example would have been $30k:$10k (not 60:40 as done in the example). Thoughts?

Just trying to understand which is right in case I see a question on the exam. Which is tomorrow – ack!

Thanks!

BEC - Passed AUD - Passed REG - Passed FAR - Passed
It feel surreal to be done with the exams! I think it is still sinking in.

[Anonymous]

you're right lucretia123! I'm going to look at my Wiley book to see what it says and maybe it'll break the tie.

… OK WTB says Bonus: difference is allocated based on old partners' P/L ratios and GW: difference is allocated to old partners based on their P/L ratios

hahaha so ….now I'm SUPER confused!!!

[Anonymous]

you're right lucretia123! I'm going to look at my Wiley book to see what it says and maybe it'll break the tie.

… OK WTB says Bonus: difference is allocated based on old partners' P/L ratios and GW: difference is allocated to old partners based on their P/L ratios

hahaha so ….now I'm SUPER confused!!!

[Anonymous]

Just in case there is anyone else out there struggling with Investments with Wiley…

ok…I just spent the last hour rereading key points in the Wiley textbook and I think I get it now…

Trading securities:

– measured at FV

– unrealized G/L recorded on I/S

– realized G/L recorded on I/S

– affect of FV Option election: no change

Available for Sale securities:

– measured at FV

– unrealized G/L recorded in OCI

– realized G/L recorded on I/S

– affect of FV Option election: unrealized G/L are also recorded on I/S

Held to Maturity securities:

– recorded at amortized cost

– no unrealized G/L

– realized G/L recorded on I/S

– affect of FV Option election: remeasured to FV and unrealized G/L recorded on I/S

[Anonymous]

Just in case there is anyone else out there struggling with Investments with Wiley…

ok…I just spent the last hour rereading key points in the Wiley textbook and I think I get it now…

Trading securities:

– measured at FV

– unrealized G/L recorded on I/S

– realized G/L recorded on I/S

– affect of FV Option election: no change

Available for Sale securities:

– measured at FV

– unrealized G/L recorded in OCI

– realized G/L recorded on I/S

– affect of FV Option election: unrealized G/L are also recorded on I/S

Held to Maturity securities:

– recorded at amortized cost

– no unrealized G/L

– realized G/L recorded on I/S

– affect of FV Option election: remeasured to FV and unrealized G/L recorded on I/S

[pink48915]

@Study Monk

I'm confused about what you're saying at the second part.

Why subtracting the retained earnings at the date of the acquisition every year?

And what's the difference between “date of acquisition retained earnings”, and “after date of acquisition”?

I thought that after we calculate the parent Retained Earnings using the= Beginning + NI – Dividend, this will be the ending RE for the current year, and the beginning RE for the following year.

I think this is what was confusing me on what I see on the Becker book. I couldn't get the ending parent retained earnings after using the formula I believe was correct.

[pink48915]

@Study Monk

I'm confused about what you're saying at the second part.

Why subtracting the retained earnings at the date of the acquisition every year?

And what's the difference between “date of acquisition retained earnings”, and “after date of acquisition”?

I thought that after we calculate the parent Retained Earnings using the= Beginning + NI – Dividend, this will be the ending RE for the current year, and the beginning RE for the following year.

I think this is what was confusing me on what I see on the Becker book. I couldn't get the ending parent retained earnings after using the formula I believe was correct.

[Anonymous]

Well I took FAR today and it wasn't pretty. I used Becker to study and the simulations I had on the exam were nowhere similar to Becker. I honestly have no idea where they came up with those sims. Not to mention that I could have used 2 screens for all sims rather than use the stupor split screen option. Will they ever modernize those damn tests? There is no need to waste seconds between questions and split the screen so u can do the dang simulations! 🙂

If by a miracle I pass, it will feel great, otherwise I will need to figure out what else I should use in addition to Becker.

[Author]

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