[jeff]

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

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

[cdn]

@mckan514w thanks

[GiniC]

OK, back to dilutive EPS.

I have a Becker Final Review question with several potentially dilutive items. One is

$200,000 of bonds ($1,000 par value) convertible into common stock was issued in March of Year 3. The bonds pay 3.75% and each bond is convertible into 15 shares of stock.

I agree with the calculations they made when testing for dilution:
……Numerator change is 3.75% x 200,000 = 7,500, net of 35% tax makes it 4,875.
……Denominator change is 200 bonds x 15 shares each = 3,000 added shares.
…… $4,875/3000 = 1.625, lower than the 2.74 BEPS, so dilutive.

My problem comes when they calculated the diluted EPS – they did not include the $4,875 in the numerator of the diluted calculation, they only added the shares to the denominator. That made a $0.06 difference in the answer.

Am I wrong, shouldn't they have included that amount in the numerator for DEPS???

[Anonymous]

Hi all! I wanted to apologize in advance if this question was asked before. I am taking the exam 5/23 using Becker (also Ninja MCQ). Once you finish the MCQ of a sub section, do you go immediately back to redo the wrong questions or do you finish the chapter and then go back and redo what you got wrong? What has worked so far for you? I feel like im memorizing the questions and not sure if i am doing this right…. Thank you and good luck to all of you taking FAR this week!

[mckan514w]

@Ginic- I am having a mild panic attack over here now thinking that those changes are not going to be tested until next quarter- makes me wonder about the other changes- as you said can't relearn what I have spent a month and a half forgetting the old way and relearning the new way- but I do find it interesting that some questions have been updated some have not – for instance had one on Rogers the other day that was “correct” in being non-current… I will be BEYOND FURIOUS if I fail this thing again because study material was messed up but I have to remember that if I am answering it that way the majority of other candidates are as well but it really really upsets me that no one from any of the major provider sites can confirm the changes– too late for me now though

you are correct on the dilutive EPS question the overall dilutive eps numerator should have been NI + the 4,875,,,

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]

@mckan514w – me too! If I miss by a few points I'll be wondering about those changes. But it's pretty much too late now, I have too much else to do between now and Thursday!

[mckan514w]

LOL looking at your scores compared to mine- it will more likely ME who will be wondering… when I miss it by a few points… my total nightmare- would rather fail like I have been failing than to fail by only a point or two… sigh not much I can do about it now though…. man this test completely SUCKS

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

[aatoural]

I agree with you guys. I would be really pissed. As it is I am hanging on the line. If this is like this and I don't pass because of those errors and on top I have to retake and relearned in a different way I might go nuts.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[mtaylo24]

Stay positive people!

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[norseman88]

What are you guys saying about the DTA and DLT? The change to both being noncurrent isn't tested in Q1?

[GiniC]

@norseman88 –

several of us were told by course providers, separately, that the new changes are tested this quarter, but I sent in a “you need to fix the answer to this question” message and got told that the changes aren't tested until April. I suspect that the several people who told us they are testing now may be right and this new guy might be wrong, but we aren't sure.

I'm not wasting my last day of study time on it – I'm hoping the AICPA is smart enough to NOT heavily test the rules that are in transition, since it's highly likely that some candidates learned the old way and some the new way. Nobody who tested recently has even mentioned those topics, so maybe we're OK either way.

[GiniC]

Also, for you ladies like me with long hair – when the Prometric staffer called today with my appointment reminder I specifically asked about small barrettes to keep hair out of the face, and simple hair elastics. She said that they will be looked over, but that it's large, fancy items that are being kept out of the room. If you keep it small and simple it should be fine, according to her.

[aatoural]

Can the Fair Value Method be compared as technically the same as the cost method but we just debit securities instead of investment in sub?

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[GiniC]

List of permitted items on exam day

The link as plain text, in case you want to have it with you for exam day: https://www.prometric.com/en-us/for-test-takers/prepare-for-test-day/documents/Permissible-items.pdf.

It's a Prometric list, not NASBA, and these are PRE-APPROVED testing accommodations for things you can't plan for when requesting your NTS (broken limbs, colds…) These are not the accommodations you have to get advance authorization for (that's another list, with things like standing desks, text-to-speech software, screen magnifiers, and much more.

[jeff]

The Equity Method, DTL/DTA stuff is testable THIS quarter per the AICPA presentation to the CPA Review providers.

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

[Cruzer]

I really should have hired a tutor for FAR. There is so much material its insane and now new standards under IFRS they could slam us with this quarter. I am need to gonna be organized as I sit down at the test center so back to your question @norseman88. You had some good points to write down on your drawing board they give you but what else is everyone going to write on theirs. I use almost the entire 20-25 mins to write stuff down like I am almost studying more lol. I do have to say it helps out when it comes to testlet 3 and you have a mnemonic written down and the

[Author]

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