[jeff]

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

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

[NYaccountingstudent]

for the CAR IN BIG mnemonic what does the B stand for———also do i have the other 7 lines of this journal entry correct?

C-common stock
A APIC
R Retained earnings

I investment (price you paid)
N Noncontrolling interest

B —
I – Intangible assets (basically your adjustment to fair value)
G – Goodwill

[Anonymous]

BS Adjustment to FV

[Namstut]

B – Balance sheet adjustments to FV

I – Identifiable intangible assets to FV

G – Goodwill OR Gain

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[NYaccountingstudent]

@namstut how do i know whether i should put goodwill or gain?

[Namstut]

If you pay more than the FV of the asset it's a goodwill, if the acquisition cost is lower than the subsidiary's FV then it's a gain.

Here is a paragraph from Becker:

If there is an excess of the fair value of the subsidiary (acquisition cost plus any noncontroling interest) over the fair value of the subsidiary's net assets, then the remaining excess is debited to create Goodwill. If there is a deficiency in the acquisition cost compared to the subsidiary's fair value, then the shortage/negative amount is recorded as gain.

So if your difference is a debit – it's a goodwill, if it's a credit, it's a gain.

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[NYaccountingstudent]

thanks!

[mtaylo24]

I'm all over the place SMH…I hope I'm not the only one LOL

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)

[Namstut]

@mtaylo24, same here! I don't even know what to review at this point!! Just flipping through the Becker book and reviewing all of the journal entries.

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[Namstut]

And I can't even fathom how you are taking TWO tests back to back!!!

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[Cruzer]

I wrote out what I am going to jot down when I get to exam and holy s**t its gonna take me a solid 20 mins to do so. There are so many rules that I don't want to forget when it comes to that 3rd testlet and I am pulling hair for an answer. I studied with mostly NINJA products only and dove into Becker book deep today that I have and realized I how painful govt accounting is. I ended up spending 3 hours and writing out 2 pages of JE's and key points. Does anyone have some mnemonics they wouldn't mind throwing up on this tread? If you have any from Bob's videos those would be amazing.

[mtaylo24]

@namstut, It was nice to finally have a break from BEC this week! Can't wait to pop up in Prometric on Friday like “it's me again!”

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)

[Namstut]

Here is the mnemonic overload from Becker!

Presentation order of the Major components of Income and Retained Earnings Statements=IDEA
I-Income (or Loss) from Continuing Operations (before tax)
D-Income (or Loss) from Discontinued Operations (net of tax)
E- Extraordinary Items (reported net of tax)
A-Cumulative Effect of Change in Accounting Principle (reported net of tax) (Reported on Statement of Retained Earnings)

Other Comprehensive Income=PUFER
P-Pension adjustments
U-Unrealized gains and losses (available for sale securities
F-Foreign currency items
E-Effective portion cash flow hedges
R-Revaluation of surplus (IFRS only)

Lessee Capital Lease Criteria (U.S. GAAP)=OWNS
O – Ownership
W – Written option for bargain purchase
N – Ninety (90%) of leased property FV & PV or lease payments
S – 75% or more of asset economic life is being committed in lease term.

Lessee Capital Lease Criteria (U.S. GAAP)=OWNS
O – Ownership
W – Written option for bargain purchase
N – Ninety (90%) of leased property FV & PV or lease payments
S – 75% or more of asset economic life is being committed in lease term.

U.S. GAAP, 3 conditions for the lessor to classify a lease as a Sales-Type or Direct Financing Lease (all 3 must be met)=LUC
L-Lessee “owns” the leased property (meets any one of the 4 lessee's criteria)
U-Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor.
C-Collectability of the lease payments is reasonably predictable

Acquiring Corporation should adjust the following items during consolidation = CAR IN BIG
CAR-C/S, APIC & Retained Earnings in Sub are eliminated
I-Investment in Sub is eliminated
N-Non-controlling interest is created
B-Balance sheet of Sub is adjusted to fair value
I-Identifiable intangible assets of Sub are recorded at Fair Value
G-Goodwill (or Gain) is required

When computing depletion on land, remember it =REAL
R-Residual value (subtract)
E-Extraction/development cost
A-Anticipated restoration cost
L-Land purchase price

Calculating the ending fair value of plan assets or to solve for the actual return on plan assets=BASE
B-Beginning fair value of plan assets
A-Contributions
S-Squeeze “+ Actual return on plan assets”
-Benefit payment
E-Ending fair value of plan assets

Components of the net pension expense= SIR-AGE
S-current Service cost
I – Interest cost
R-Return on plan assets
A-Amortization of prior service cost
G-Gain and losses
E-amortization of Existing net obligation or net assets
NET PERIODIC PENSION COST=Current expense & Current liabilities

Disclosure of loss contingency that should be made = DOG
D-Debts of others guaranteed (officers/related parties)
O-Obligations of commercial banks under standby letters of credit
G-Guarantees to repurchase receivables (or related property) that have been sold or assigned

Governmental fund types=GRaSPP
G-General fund
R-Special Revenue Fund
A-and
S-Debt Service funds
P-Capital Projects Funds
P-Permanent Fund

Proprietary funds=SE
S-Internal Service funds
E-Enterprise funds

Fiduciary (trust) funds=PAPI
P-Pension Trust fund
A-Agency Trust Fund
P-Private Purpose Trust Funds
I-Investment Trust Funds

Order of presentation of line items on a proprietary fund statement of Revenues, Expenses, and Changes in Fund Net Assets = INCASET
I – Income (operating)
N-Non-operating income and expense
C-Capital contributions and
A-Additions to endowments
S-Special Items (unusual or infrequent)
E-Extraordinary items
T-Transfers

Special purpose local governments must meet all of the criteria= SELF
S E-Has a Separately Elected governing body
L – Legally separate and
F – Fiscally independent of other state and local governments

Primary Revenue Category Types = SOC
S-Charges for Services
O-Operating grants and contributions
C-Capital grants & contributions

Contributions of services are recognized “SOME” of the time
S-Specialized skills are required and possessed by the donor
O-Otherwise needed by the organization
M-Measurable
E-Easily (at fair value)

O, IF I had cash flow (Statement of Cash Flow categories)
O – Operating
I – Investing
F – Financing

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[Namstut]

@mtaylo24, that's hilarious!!!

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[mtaylo24]

@namstut, I ran through a bunch of Gleim questions, flipped through the book, did a bunch on ninja questions, read ninja notes, worked sims…the whole 9! I turned on Ninja plus and I had to say NO! I'm not at adding anything else. I just want to get this over with…

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)

[Namstut]

I forgot I saved this link – Journal Entries:

https://www.principlesofaccounting.com/illustrative%20entries/entrieslist.htm

Capital leases

Reposting mnemonics so it's all in one post one one page:

Presentation order of the Major components of Income and Retained Earnings Statements=IDEA
I-Income (or Loss) from Continuing Operations (before tax)
D-Income (or Loss) from Discontinued Operations (net of tax)
E- Extraordinary Items (reported net of tax)
A-Cumulative Effect of Change in Accounting Principle (reported net of tax) (Reported on Statement of Retained Earnings)

Other Comprehensive Income=PUFER
P-Pension adjustments
U-Unrealized gains and losses (available for sale securities
F-Foreign currency items
E-Effective portion cash flow hedges
R-Revaluation of surplus (IFRS only)

Lessee Capital Lease Criteria (U.S. GAAP)=OWNS
O – Ownership
W – Written option for bargain purchase
N – Ninety (90%) of leased property FV & PV or lease payments
S – 75% or more of asset economic life is being committed in lease term.

Lessee Capital Lease Criteria (U.S. GAAP)=OWNS
O – Ownership
W – Written option for bargain purchase
N – Ninety (90%) of leased property FV & PV or lease payments
S – 75% or more of asset economic life is being committed in lease term.

U.S. GAAP, 3 conditions for the lessor to classify a lease as a Sales-Type or Direct Financing Lease (all 3 must be met)=LUC
L-Lessee “owns” the leased property (meets any one of the 4 lessee's criteria)
U-Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor.
C-Collectability of the lease payments is reasonably predictable

Acquiring Corporation should adjust the following items during consolidation = CAR IN BIG
CAR-C/S, APIC & Retained Earnings in Sub are eliminated
I-Investment in Sub is eliminated
N-Non-controlling interest is created
B-Balance sheet of Sub is adjusted to fair value
I-Identifiable intangible assets of Sub are recorded at Fair Value
G-Goodwill (or Gain) is required

When computing depletion on land, remember it =REAL
R-Residual value (subtract)
E-Extraction/development cost
A-Anticipated restoration cost
L-Land purchase price

Calculating the ending fair value of plan assets or to solve for the actual return on plan assets=BASE
B-Beginning fair value of plan assets
A-Contributions
S-Squeeze “+ Actual return on plan assets”
-Benefit payment
E-Ending fair value of plan assets

Components of the net pension expense= SIR-AGE
S-current Service cost
I – Interest cost
R-Return on plan assets
A-Amortization of prior service cost
G-Gain and losses
E-amortization of Existing net obligation or net assets
NET PERIODIC PENSION COST=Current expense & Current liabilities

Disclosure of loss contingency that should be made = DOG
D-Debts of others guaranteed (officers/related parties)
O-Obligations of commercial banks under standby letters of credit
G-Guarantees to repurchase receivables (or related property) that have been sold or assigned

Governmental fund types=GRaSPP
G-General fund
R-Special Revenue Fund
A-and
S-Debt Service funds
P-Capital Projects Funds
P-Permanent Fund

Proprietary funds=SE
S-Internal Service funds
E-Enterprise funds

Fiduciary (trust) funds=PAPI
P-Pension Trust fund
A-Agency Trust Fund
P-Private Purpose Trust Funds
I-Investment Trust Funds

Order of presentation of line items on a proprietary fund statement of Revenues, Expenses, and Changes in Fund Net Assets = INCASET
I – Income (operating)
N-Non-operating income and expense
C-Capital contributions and
A-Additions to endowments
S-Special Items (unusual or infrequent)
E-Extraordinary items
T-Transfers

Special purpose local governments must meet all of the criteria= SELF
S E-Has a Separately Elected governing body
L – Legally separate and
F – Fiscally independent of other state and local governments

Primary Revenue Category Types = SOC
S-Charges for Services
O-Operating grants and contributions
C-Capital grants & contributions

Contributions of services are recognized “SOME” of the time
S-Specialized skills are required and possessed by the donor
O-Otherwise needed by the organization
M-Measurable
E-Easily (at fair value)

O, IF I had cash flow (Statement of Cash Flow categories)
O – Operating
I – Investing
F – Financing

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[Author]

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