[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

[Wannafree]

@iam2848 , I expect 1 WTH type question and 1 kinda WT* type questions but what about mCQ and 6 other SIMS ? have u gone through Blue print doc ,I mean are they “Analysis” ? In govt NFP I get 80% but in case of IFRS questions 40% ( Becker's)
Any tips in general without disclosing.

[Anonymous]

Also what study material did you use? Did you go through the Sims and how did they compare?

[lam2848]

Honestly the SIMs weren't THAT bad. I think I just drew a blank and I couldn't figure out what they were asking me. Plus I it took me a while to understand the formatting of the answer so I started to get confused and frustrated. The SIMs are the only reason why I think I didn't pass. I just got so confused and nervous. But I'm hoping for the best.

I used Becker and I feel like it prepared me as much as it possibly could!

[mattypxam14]

I'm not seeing this in my Becker book. What are some common journal entries to account for a prior period accounting error. A depreciation mistake will result in a Debit/Credit to Retained earnings and vice versa for accumulated depreciation. Anyone have other knowledge on some other Journal entries. I do know all error fixes hit the Retained earnings account.

Thanks

[mattypxam14]

To be more specific, what would be the journal entry for this problem.

On January 1, Year 5, Harbor Construction Company decided to switch to the percentage of completion method in accounting for all of its long-term construction contracts. Prior to Year 5, Harbor used the completed contract method for some of its contracts. Harbor's effective tax rate is 30 percent. The new pretax income for percentage of completion is 800,000 and the old for completed contract is 600,000. The journal entry would be a credit to RE, what is the debit to?

[Wannafree]

@matty ,RE JE will depend upon what was the error.Let us say you under depreciated $1234 (net of tax )in prior period so JE would be
RE Dr $1234
AD CR $1234

RE statment
Beginning RE 10000
Less Prior period correction of error in depreciation account $1234
RE on 1st Jan $8766

[mattypxam14]

@Wannafree what about for something other than depreciation?

[Wannafree]

@Matty ,you debit or credit whatever is getting fixed.Let us take example of an item I can think of as Rent not accrued ($500) in 2016 and books closed.
So you would debit RE and credit Prior period Rent expense or rent payable account.
You can reverse the above JE in case rent was overstated ( RE will be credited and Rent payable Debited ).
In actual job , there may be many prior period adjustments and all involves debit and credit RE and expense or revenue account ,RE is net of all prior period adjustments.
Let me try other example.Suppose you detected the error in same year what would u do ?
Reverse the JE passed previously with error amount . Here that place holder is RE instead of IS as IS is closed.
Hope it clears the doubt.

[JMG]

Just thought I'd share a helpful mnemonic I came up with, SIR AGE is great for remembering the components of the net periodic pension cost but I always had a hard time remembering which ones you add or subtract. So the one I used was “LISA is bad at REG,” LISA is the additions (Losses, Interest, Service, Amort. of prior period serv. cost) and REG is the subtractions (Return on plan assets, Existing unrecognized amort., Gains). Hope that helps! And I will say it came in handy on my exam for at least one question…

[Anonymous]

Does anyone have any advice for the Pensions/Defined Benefit Sections? I am completely lost and honestly don't feel like I have time (test on Sunday) to learn it. Any have any tips? Can I ignore this section and pray for the best? I've gone through it, but just dont seem to retain anything.

[jiji]

Can someone please try to help me solve this?
AR beginning $100k
Sales credit $200k
AR ending $150k
Write off $10k
Allowance for uncollectible $20k
Sales Return $10k
Sales discount $10k
Find the Accounts receivable turnover? Net credit sales/average net receivables
This is what I have done ($200-$20-$10-$10)/((150-10)+100/2)=160k/120k= 1.33 Is this correct?

[thelatebloomer]

@jiji

– Is the allowance a starting or ending value, or for the period?

Write-offs are a debit to the allowance account and a credit to accounts receivable – which is a net 0 effect.

[far1]

Hello All! Taking my first CPA exam (FAR) tomorrow – any last minute advice on the content I should focus on? I've been using Becker and I'm starting to realize that I've forgotten a lot of the material from the earlier videos..

[SONA]

Anyone giving FAr in January?
I am retaking FAR after 1.5 years. I failed in June-16 with 74, now regret it not take it that time. But it is never too late, at least not now when none of my score is expiring.

Anyways any tips for FAR in January-2018. I have Roger to study with and planning to supplement it with Ninja MCQ. I studied with Becker back then.

Any idea how to tackle will be greatly appreciated. 🙂

[Livliv101]

What are the blueprints people have mentioned?

Think I’ll have to retake FAR. I just took it for the first time. Should I start studying for it before score release date? Any tips? I got killed on the SIMs with not knowing journal entries. Study those?

Thanks!

[Author]

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