[jeff]

Welcome to the Q4 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

[baileyshea]

@IwannabeaCPA2017 the direct write off method (DR: BDE, CR: AR) is rarely used because it doesn't conform to GAAP (doesn't match revenue with expenses). It can be used only when the company is unable to estimate uncollectible accounts receivable reliably. The allowance method (DR: BDE, CR: AFUA/AFDA) is required by GAAP if uncollectible accounts are probable and estimable. You make that entry at YE in an adjusting entry.

[baileyshea]

@bluetoothray my basic understanding is that the distinguishing difference is that reg S-X governs the form and content of financial statements and disclosures whereas Regulation S-K governs the non-financial disclosures

[IwannabeaCPA2017]

Ahhh that makes so much more sense! ahha I feel stupid. Thanks bailey! And @Bluetooth, man I just saw that question on Ninja MCQ earlier and was like everything sound so similar, I'm shocked it was considered “difficult” I would have guessed but the choices were easy to eliminate on that MCQ.

FAR suck so bad, honestly the material isn't too bad if its broken down nicely but the fact its 10 chaps and scattered all over it makes it tough. I'm def suggestin AICPA to break FAR into 2 section LOL.

[IwannabeaCPA2017]

Hey yall, sorry I'm back with more questions. So if exchange lack commercial substance does the 25% rule applies to boot paid or received. Because in becker in 1 questin it states boot received if less than 25% we recognized a portion to that extent. While in another question it said since boot paid and considereation is less than 25% no gain recognized- mean the rule is whenever boot paid we don't recognized gain (its deferred). Prob hitting a wall at this point

[Wannafree]

@iwannaCPA ,You may memorize this way ,boot paid ,no gain.
Boot received is more than 25% then it's like commercial substance.
If cash is received in an exchange that has no commercial substance, part of the realized gain is recognized if the cash is less than 25% of the total consideration received. For example, if a machine with a fair value of $20,000 and a carrying value of $15,000 is exchanged for a similar machine and $3,000 in cash, part of the $5,000 ($20,000 – $15,000) realized gain will be recorded. In this case, since the cash is 15% ($3,000 ÷ $20,000) of the fair value of the old asset, 15% ($750 = $5,000 x 15%) of the realized gain will actually be recognized.
If cash is more than 25% of the total assets received, the exchange is treated as a cash sale and the entire difference between the fair value and carrying amount of the old asset is booked as an income statement gain.
If the carrying amount of the old asset is greater than the fair value of the assets received, the entire loss is booked and the new asset is recorded at the lower fair value.

[gguzman]

Just did the AICPA practice questions.

it was very confidence building. Anyone have a similar experience?

[Katie]

@gguzman I felt the same way when I went through them. And they're very reflective of the exam difficulty-wise in my experience.

[Ny1105]

Is the content for subsequent events via Audit the same as FAR?

[Wannafree]

@Ny1105 ,yes.Only difference is in AUD they normally ask JE required or not ,disclosure required or not type question.In FAR they may ask JE too.

[Bluetoothray]

@baileyshea Thanks!!!

[Ny1105]

Thanks @wannafree…

I'm assuming the same applies for going concern than..

On a side note, how are you guys breaking the exam time down?
4:00 MC
3:15 MC
2:00 TBS
1:00 TBS
0 TBS

[Wannafree]

@ny1105 , yes except FAR includes IFRS and they may ask the IFRS difference ,look for Material uncertainties ,liquidation basis in GAAP key word in IFRS .

[baileyshea]

@Ny1105 my time breakdown goal is very similar to yours. I took FAR last quarter and I'm convinced I would have passed if I had managed my time better. I left two SIMs virtually blank… filled in a DRS with random answers and filled in another with zeros. I think I will try to get MC done in 30-40 minutes per testlet which leaves me with 2 hours and 40 minutes for SIMSs (20 minutes per SIM). Hopefully the research question(s) will not take 20 minutes so I would have even longer for other SIMs. The SIMs I had on my exam last quarter were extremely lengthy, so that's my plan for my exam in a couple days!

[Anonymous]

Anyone else having nightmares about the test after they have taken it? I vowed not to think about it after the fact, put my books away until score release, and sure enough-my dream last night involved depreciation calculations…Ugh!

[Recked]

Do the MCQs as fast as possible. I had 2:15 left for the SIMS and ran out of time on the last testlet.

I was having dreams about the questions leading up to the exam, and probably a week after.
It has since calmed down but I'm still dreading the score release.
I've started working on AUD but I'm feeling less than motivated until I know I won't have to revisit FAR.

[Author]

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