[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

[ZSRizvi]

Question on pensions:

Parker Co. amended its pension plan on January 2 of the current year. It also granted $600,000 of unrecognized prior service costs to its employees. The employees are all active and expect to provide 2,000 service years in the future, with 350 service years this year. What is Parker's unrecognized prior service cost amortization for the year under U.S. GAAP?

The answer is $105,000.

However, I chose $0 because I thought that prior service cost isn't amortized until the FOLLOWING year and no amortization is taken in the first year. Or am I not reading this right?

BEC (July 2013)
FAR (OCT 2013)
REG (NOV 2013)
AUD (JAN 2014)

The CPA Exam is an opponent that not even the Fellowship of the Ring would want to come across.

I have a long...long...journey ahead of me.

[RandomAlt]

@oilgaslb – HAHAHAHA…omg…I so read derivatives! I needed that laugh.

@ZSRizvi – In regards to disclosures, I came up with my own mnemonic. So I know the name of the disclosures, and what “generally” goes into each one, and that is as in depth as I am going with it.

My mnemonic is: NERD SIC

Noncurrent liabilities

Errors & irregularities

Related part transactions

Developmental Stage Enterprises

Summary of Significant Accounting Policies

Illegal activities

Capital Structure Disclosures

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[RandomAlt]

@oilgaslb – HAHAHAHA…omg…I so read derivatives! I needed that laugh.

@ZSRizvi – In regards to disclosures, I came up with my own mnemonic. So I know the name of the disclosures, and what “generally” goes into each one, and that is as in depth as I am going with it.

My mnemonic is: NERD SIC

Noncurrent liabilities

Errors & irregularities

Related part transactions

Developmental Stage Enterprises

Summary of Significant Accounting Policies

Illegal activities

Capital Structure Disclosures

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[PiscesChista02]

This is from the Wiley text, Module 9A MCQs.

“Aneen's Video Mart sells one- and two-year mail order subscriptions for its video-of-the-month business. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activity revealed the following:

SALES Yr. 1= $420k; Yr. 2= $500k

LESS CANCELLATIONS Yr. 1 =$20k; Yr. 2 = $30k

NET SALES Yr. 1= $400k; Yr. 2 = $470k

Subscriptions expirations:

Yr, 1 = $120k

Yr. 2 = $155k (I assume this is beginning.); $130k (I assume this is ending.)

Yr. 3 = $125k (See above); $200 (see above)

Yr. 4 = —; $140 (I'm guessing this is ending subscriptions).

[The first numbers listed under Subscriptions expirations” is in one column and total $400k; the second numbers are in a second column and total $470k.]

In Aneen's December 31, year 2 balance sheet, the balance for unearned subscription revenue should be:

a. $495k

b. $470k

c. $465k

d. $340k

[The answer is C], but I'm so lost as to how and why the text arrived at this number. Even its explanation doesn't make sense to me. 🙁

"I do not promise you ease. I do not promise you comfort, but I promise you these WEARINESS, HARDSHIP, and SACRIFICE. And with that, I promise you VICTORY."-- Robert F. Kennedy

Maryland Candidate

FAR-- 2/21/2014 :-(44... Feeling like the class idiot; retake 5/2014)
REG-- 5/14
AUD-- 8/2014
BEC-- 8/2014

[PiscesChista02]

This is from the Wiley text, Module 9A MCQs.

“Aneen's Video Mart sells one- and two-year mail order subscriptions for its video-of-the-month business. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activity revealed the following:

SALES Yr. 1= $420k; Yr. 2= $500k

LESS CANCELLATIONS Yr. 1 =$20k; Yr. 2 = $30k

NET SALES Yr. 1= $400k; Yr. 2 = $470k

Subscriptions expirations:

Yr, 1 = $120k

Yr. 2 = $155k (I assume this is beginning.); $130k (I assume this is ending.)

Yr. 3 = $125k (See above); $200 (see above)

Yr. 4 = —; $140 (I'm guessing this is ending subscriptions).

[The first numbers listed under Subscriptions expirations” is in one column and total $400k; the second numbers are in a second column and total $470k.]

In Aneen's December 31, year 2 balance sheet, the balance for unearned subscription revenue should be:

a. $495k

b. $470k

c. $465k

d. $340k

[The answer is C], but I'm so lost as to how and why the text arrived at this number. Even its explanation doesn't make sense to me. 🙁

"I do not promise you ease. I do not promise you comfort, but I promise you these WEARINESS, HARDSHIP, and SACRIFICE. And with that, I promise you VICTORY."-- Robert F. Kennedy

Maryland Candidate

FAR-- 2/21/2014 :-(44... Feeling like the class idiot; retake 5/2014)
REG-- 5/14
AUD-- 8/2014
BEC-- 8/2014

[kels417]

Hey guys! This is my last section. I have one attempt before I lose credit for audit in January. I have taken FAR twice before, receiving a 72 and 66. I bought the Wiley test bank for extra questions and simulations, still using Becker and gleim as well.

Today is day 1. I'm planning on scheduling my exam for November 25. I want to make sure I give myself ample time to fully understand EVERYTHING! Chapter 1…here I come.

Illinois
Becker self study | Becker flashcards | Gleim | self written notes | WTB

AUD - 74, 75 Passed! (Expires 1/2/2014)
BEC - 78 Passed! (Expires 2/6/2014)
REG - 70, 70, 72, 74, 76 Passed!!
FAR - 72, 66, 69, 67

[kels417]

Hey guys! This is my last section. I have one attempt before I lose credit for audit in January. I have taken FAR twice before, receiving a 72 and 66. I bought the Wiley test bank for extra questions and simulations, still using Becker and gleim as well.

Today is day 1. I'm planning on scheduling my exam for November 25. I want to make sure I give myself ample time to fully understand EVERYTHING! Chapter 1…here I come.

Illinois
Becker self study | Becker flashcards | Gleim | self written notes | WTB

AUD - 74, 75 Passed! (Expires 1/2/2014)
BEC - 78 Passed! (Expires 2/6/2014)
REG - 70, 70, 72, 74, 76 Passed!!
FAR - 72, 66, 69, 67

[NYCaccountant]

How you type the question is screwed up, but I was able to figure it out anyway. Basically, column one is each year you earned subscription revenues related to sales in year one, and column two is each year you earn subscription revenues related to sales in year two. So you had net sales of 400,000 in year one, and of that 400,000, you earned 275,000 by the end of year two (120,000+150,000), which means you have 125,000 (400,000-275,000) worth of subscriptions sales from year one deferred (unearned) at the end of the year two.

Now in year two you had net sales of 470,000, and of that 470,000, you earned 130,000, which means you have 340,000

(470,000-130,000) worth of subscription sales from year two deferred (unearned) at the end of year two.

340,000+125,000=465,000

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

How you type the question is screwed up, but I was able to figure it out anyway. Basically, column one is each year you earned subscription revenues related to sales in year one, and column two is each year you earn subscription revenues related to sales in year two. So you had net sales of 400,000 in year one, and of that 400,000, you earned 275,000 by the end of year two (120,000+150,000), which means you have 125,000 (400,000-275,000) worth of subscriptions sales from year one deferred (unearned) at the end of the year two.

Now in year two you had net sales of 470,000, and of that 470,000, you earned 130,000, which means you have 340,000

(470,000-130,000) worth of subscription sales from year two deferred (unearned) at the end of year two.

340,000+125,000=465,000

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[PiscesChista02]

I really appreciate your help, nycaccountant. If there's a more presentable way to type the questions out, especially when columns are involved, please let me know.

"I do not promise you ease. I do not promise you comfort, but I promise you these WEARINESS, HARDSHIP, and SACRIFICE. And with that, I promise you VICTORY."-- Robert F. Kennedy

Maryland Candidate

FAR-- 2/21/2014 :-(44... Feeling like the class idiot; retake 5/2014)
REG-- 5/14
AUD-- 8/2014
BEC-- 8/2014

[PiscesChista02]

I really appreciate your help, nycaccountant. If there's a more presentable way to type the questions out, especially when columns are involved, please let me know.

"I do not promise you ease. I do not promise you comfort, but I promise you these WEARINESS, HARDSHIP, and SACRIFICE. And with that, I promise you VICTORY."-- Robert F. Kennedy

Maryland Candidate

FAR-- 2/21/2014 :-(44... Feeling like the class idiot; retake 5/2014)
REG-- 5/14
AUD-- 8/2014
BEC-- 8/2014

[Anonymous]

I don't know if anyone has gotten to nonprofit accounting and health care organizations yet but it is really confusing me, especially when it comes to bad debts. In what cases it is deducted from operating revenue and in what cases is it reported as a regular expense? From what I can understand, if it's public, then you have to account for the bad debt expense as a reduction of revenues. Is that right?

[Anonymous]

I don't know if anyone has gotten to nonprofit accounting and health care organizations yet but it is really confusing me, especially when it comes to bad debts. In what cases it is deducted from operating revenue and in what cases is it reported as a regular expense? From what I can understand, if it's public, then you have to account for the bad debt expense as a reduction of revenues. Is that right?

[NYCaccountant]

I think health care organizations always net bad debt out against revenue. I think you take an allowance for contributions received though, and don't necessarily record bad debt. Sounds like I need to review this myself.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

I think health care organizations always net bad debt out against revenue. I think you take an allowance for contributions received though, and don't necessarily record bad debt. Sounds like I need to review this myself.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Author]

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