[jeff]

Welcome to the Q1 2017 CPA Exam Study Group for FAR. 🙂

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

[mckan514w]

@cdn – i am HORRIBLE at NME's– but I think the percentage is cash / FMV + cash…

@Namstut- I'm a big fan of the Ninja products- but agree with @cruzer on this one- the notes are good- but they really are a “highlight” of the materials- if you don't know the materials in depth then I don't think the notes will do you much good- they more highlight the things that you need to know / jog your memory on things— good luck!

Okay on securities- if you own 25% or more of a security but you elect the FMV method then you just account for it like you would any other stock where you don't have significant influence correct? i.e. adjust each period to FMV recognizing unrealized G/L in income statement and dividends as income and not a reduction of carry????

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[GiniC]

Good morning all!

[Mscfisher]

Good morning all I'm having slight insomnia. I have been up since 2.30. Decided to do as @ginic and write my notes out again. It really helps. Just need 3 more weeks 😆

[GiniC]

@cdn – on Commercial Substance – the wording in my text is “total consideration received” – so it would have to include the cash. The part that “gets” me on those problems is deciding when the future cash flows do or don't significantly change. I'm hoping that exam questions will say an exchange does or does not have commercial substance!

[Holly]

I was going to start studying BEC within a few days of FAR test, but now I think I'll take the 11 days off to actually sleep, eat……

BEC - 79
REG - 85
AUD - 5/27/16

[mckan514w]

+1 on the insomnia- and I actually woke up this morning wondering about the whole study thing @HR– if I pass (please God)- I am done- if I don't I retake- so then do I try and retake as soon as possible or do I just take a nice long break since the Q2 score release is so long do I just wait it out…. I am praying daily that I don't have to make these decisions….

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Holly]

Yours is a crazy position to be in, especially with this test change and score release wait

BEC - 79
REG - 85
AUD - 5/27/16

[mckan514w]

I am actually making myself sick thinking about it- It is beyond ridiculous and unfair because under “normal conditions” I would have two more shots at FAR before I start losing credit for my others- however with the long score release there will be no way possible to sit in both Q2 and Q3 if I had to…. grrrrrr I hate myself for being in this position.

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Holly]

The thing is, there's always going to be “something” that sucks that's happening right now when you're trying to test. Trust me! Right now, it's just something that is with them and not you. That is exactly why I have decided to push through these four tests and not take a break; I lost credit by taking breaks and if that isn't frustrating!

BEC - 79
REG - 85
AUD - 5/27/16

[Holly]

Today my goal is to keep choosing new questions in NINJA and weed out the ones I know and don't want to waste time on anymore. When I finally get through all of those, I'm going to sit down and try to figure out why I missed the ones that are left and get to the review phase in NINJA.

BEC - 79
REG - 85
AUD - 5/27/16

[cdn]

@Ginic – will try to work both with cash and without cash and hopefully will be able to get answer

[cdn]

Can you help me with this one?

Verona Co. had $500,000 in short-term liabilities at the end of the current year. Verona issued $400,000 of common stock subsequent to the end of the year, but before the financial statements were issued. The proceeds from the stock issue were intended to be used to pay the short-term debt. What amount should Verona report as a short-term liability on its balance sheet at the end of the current year?

A.$0
B.$100,000
C.$400,000
D.$500,000

[Holly]

@cdn I think the answer is A. Because the $400,000 long term proceeds were used to pay $500,000 of debt before the statements were issued, only $100,000 would be recognized as short-term.

BEC - 79
REG - 85
AUD - 5/27/16

[Holly]

I meant to put B

BEC - 79
REG - 85
AUD - 5/27/16

[GiniC]

The long-term liabilities were INTENDED to be used to pay form the short-term debt, and by selling the stock they confirmed ability to do so, but the question doesn't say they actually PAID the debt. Since the debt existed at the end of the year (and at the point of the problem statement) doesn't it still have to be shown on the BS?

[Author]

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