[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

[Chrissy]

Hey Christina here;
Just received my score for FAR taken back in August. FAILED!! But I kind of knew that. This was my second time with FAR, the first being in 2013.

Back in 2013 my boss encouraged me to just take the test before testing ended for the year. I only gave myself a month to study. But at least I got a feel for it.
Was registered to take it again in April 2014 and had to cancel due to a family issue. It was on hold for two years.

Feb of 2017 I was ready to do this again. I set my date and then a tragedy in my family happened. I lost my Aunt in a very tragic manner. The CPA exam was the last night on my mind. I just didn't check back for my NTS. Fast forward to Mid July 2017, I logged in, there was my NTS issued the day after I applied. It was set to expire August 3rd. So I took the test August 2nd knowing I was not prepared.

Somehow seeing the score just released hit me in the gut. I did worse the 2nd time than I did the first. Anyway, my boss (it took him 4 times with FAR) suggested I jump on Another 71 for emotional support. In the past, I would come read comments, see I'm not alone, but NOW I need motivation. I need to see people struggling like me. LOL
I can do this.

[S6]

alright fellow ninjas, i just reseted my stats in Ninja MCQ for FAR which i failed on 9/8 with a 64…i plan to start from scratch and pass this beast at the end of October…lezzzz get it!!!

[Newk]

I had an MCQ that stated I was wrong because I didn't make a FV adjustment to an equity method investment. Are you allowed to use both FV and equity method? The answer is $16,000:

On January 1, Year 1, Peabody Co. purchased an investment for $400,000 that represented 30% of Newman Corp.'s outstanding voting stock. For Year 1, Newman reported net income of $60,000 and paid dividends of $20,000. At year-end, the fair value of Peabody's investment in Newman was $410,000. Peabody elected the fair value option for this investment. What amount should Peabody recognize in net income for Year 1 attributable to the investment?

[Lentilcounter]

@Chrissy

The CPA exam is a test of discipline more than it is a test of aptitude. FAR is a beast. I am on my 4th attempt. My best advice is that you need to have a study schedule and stick with it. I started the journey back in 2012 and now again more seriously since 2016 (I had a lot of life events also). Some people use Ninja MCQ alone or augment the MCQ with Ninja notes and audio. I personally use Becker CPA + Ninja MCQ and I think using a study system (Roger, Wiley, Becker, etc.) + Ninja is the way to go. With FAR, the key to doing well on the SIMS is giving yourself enough time to do them on the test and not being scared of journal entries. This new test is also incorporating DRS simulations so know how to do those too.

We are all here with you. You can do it. God bless.

@S6, I am with you! Got the same score on FAR on the same testing day (we are twins). Let's crush this.

BEC = 72 (6/08/16)
FAR = ?
REG = ?
AUD = ?

[Lentilcounter]

@Newk

There is something called a fair value option or election that an investor using the equity method can utilize.

On January 1, Year 1, Peabody Co. purchased an investment for $400,000 that represented 30% of Newman Corp.'s outstanding voting stock. For Year 1, Newman reported net income of $60,000 and paid dividends of $20,000. At year-end, the fair value of Peabody's investment in Newman was $410,000. Peabody elected the fair value option for this investment. What amount should Peabody recognize in net income for Year 1 attributable to the investment?

Beginning value of investment = $400K
Share of investee income = $18K ($60K*.30)
Share of dividends = $6K ($20K*.30)
Ending value of investment under equity method = $400K+$18K-$6K=$412K

The ending value of the investment is $410K and since they elected the fair value option,

$412K-$410K=$2K

$18K-$2K = $16K recognized in net income for year 1

BEC = 72 (6/08/16)
FAR = ?
REG = ?
AUD = ?

[S6]

@Lentilcounter i knew it, so that was you banging on the keyboard in the prometric center?! lol jk! yeah i agree with you completely, i had a little less than 1.5 hours for the last 2 sim testlets which i deem a little too short of time. My plan is to have 2 solid hours for the last 2 testlets. i just purchased a fresh graphing notebook and 2 small notebooks strictly for IFRS and Journal Entries (may seem a little too much) as i go thru the modules in Ninja…clean slate.

[Lentilcounter]

@S6, haha there was a guy banging on the keyboard behind me! I had the noise-canceling headphones on and I still heard him.

BEC = 72 (6/08/16)
FAR = ?
REG = ?
AUD = ?

[Newk]

@Lentilcounter ok thanks! I was trying to look through my books/internet to find any mention of FV options using the equity method and I couldn't find anything. Thanks!

[msquared17]

I'm hoping to take FAR mid November. I will be half way through the Becker material this weekend. I was thinking of supplementing with Ninja. For those of you that use Ninja, when did you purchase it? Did you use it along with Becker or just during final review?

Thanks

[EStone]

I just got my results back for far. I failed with a 66. I am planning to take the test again in mid October. I am not sure if I should just study my notebook that is filled front to back or if I should completely start over. I am using Becker and am also thinking about purchasing the ninja mcq. If anyone has any advice on how to attack studying a second time please feel free to let me know.

[Anonymous]

Hey everyone! I seem to continuously have issues with the cash basis to accrual basis (and vice versa) questions. Does anyone have a formula for these?

Ideally I am hoping to apply a Cash Basis -> Accrual then:
– Assets increase – Add
– Assets decrease subtract

If anyone has something that would help, I would greatly appreciate it!

[for_3_letters]

Hello Ninjas,

I'm looking to study and possibly take FAR 12/9. I was curious how many weeks should I use to prepare? I'm using Wiley CPAexcel. Also I'm a really slow note taker and probably this is my weakest area. Should I even start with FAR? Any study advice would be appreciated!

[Lentilcounter]

@ C.P.A. the third

These are from some old Ninja 2017 FAR notes.

Cash to Accrual Basis

Sales (customer payments) + ending A/R – beginning A/R = Sales revenue on an accrual basis

COGS Cash Basis to Accrual Basis

cash paid + increase in A/P – increase in inventory = COGs on accrual basis

If you post a problem that is tripping you up, we can walk through it and derive the formula.

BEC = 72 (6/08/16)
FAR = ?
REG = ?
AUD = ?

[Brandon]

@Observant08, I'm in the same boat. If it's your first time I'd take it 12/9. If it's a retake possibly earlier.

[for_3_letters]

@Brandon

It is my first time taking FAR.

[Author]

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