[jeff]

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

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

[Sticky Nicky]

question…when you have a nonmonetary exchange that lacks commercial substance,,,where does the offsetting gain reduction go to? For instance,,if it had substance you would record this:

Asset obtained xx
Cash xx
Asset given up xx
Gain xx

my question is: the ratio to cash received to total consideration you pick up as the gain so does the rest reduce the carrying value of the obtained asset when it lacks substance?

[GiniC]

@Sticky Nicky – it depends on how much boot was received.

No boot = no gain
Boot paid = no gain
Boot received <25% of total consideration, recognize a proportional gain (total boot rec'd/total consideration x gain = gain recognized)
Boot received >25% of total consideration, treat it like a monetary exchange – both parties recognize all gain/loss.

When recognizing proportional gain, the non-recognized gain comes out of the booked value of the asset:

DR Asset received (plug)
DR Cash . . . . . Amount received
. .CR Asset given. . . Fair value
. .CR Gain . . . . . . boot rec'd/total consideration x total gain

[AR]

Hello,
Took my exam last Thursday. Really not sure if I did well or otherwise, given it was my first ever CPA exam. But for sure I do not feel ecstatic about my performance.
I wanted to share a few areas that were tested more than I had expected- Lots of IFRS stuff -recognition, measurement, disclosure- patents, copyright, general areas.
Lots of Govt and NFP as expected, but also numerical based question from this area which tested the application of govt acctng concepts.
And like some others have mentioned- the application of new FIFO LCNRV rule, but without any ambiguity in the question.
Good luck to all the test takers. Keeping my fingers crossed till Feb 23.

[mtaylo24]

NFP is annoying

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)

[Sticky Nicky]

NFP is easy bro,,,govt is str8 doggy shit,,,cant get a handle on it

[mtaylo24]

Haha, Govt is annoying, but I get way too many NFP questions in Ninja and I'm starting to get irritated. Unless is says board designated, I keep getting them confused.

Like pensions and taxes, I'm too lazy to drill in on this topic and it will probably be on my “24 hours before the exam cram list”.

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)

[Anthony]

Just need to know what goes under temp, unrestricted or perm and knowing the journal entries makes it a cake walk for most time.

[demarcon]

@mtaylo24 at least they made deferred taxes easier by making them all non-current 🙂

[mtaylo24]

@demarcon, It ain't much, but I'll at least take what they give us…every little bit helps (probably still won't help me lol)

How many questions do I have to do to hit adaptive learning and how noticeable is the difference? Not sure if adaptive was always the proper way to use Ninja MCQ…I have historically done it customized by category but I have chosen to do adaptive all the way this time in order to keep every topic fresh. I'm coming up on 600 now and the assessment bar is about 3/4 of the way full. Might focus on weak areas like @hrsexton suggested a few pages ago, once I go a little over 1000.

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)

[waffle_house]

@sticky nick

You need to know Gov, we can help with that 😊

[Sticky Nicky]

@waffle…thanks,,,to be honest i really dont know how to sort it all out…im averaging and trending 59% with 115 not answered correctly,,,i feel like at least 30-40 correct answers were lucky guesses,,i know the funds and which use modified vs accrual,,i know that gov wide financials are accrual…i also know they include all the 5 govt funds and the proprietary funds,,i know the enterprise fund is in the business type section and the internal service fund is up with the gov't…also the 5 parts M&D, govt wide, fund financials, notes, and RSI. and that enterprise is the only with a cash flow (4 sections with captial and non capital financing sections). i guess where i get stuck is when they ask about interfund transfers and assigned vs committed yadda yadda,,,,encumberance accting is pretty easy. I also know the 10% 5% rule for major funds. i guess a 59% for the first time seeing all this isnt too bad,,,hoping to be able to go thru them all again 2 more times in the next week and a half to grab a few more details

[mtaylo24]

@sticky, There are two main sets of stmts: gov't wide and fund financial stmts. Gov't fund, Proprietary fund, and fiduciary funds; start w/ those 3. Then you have the funds within those…

Govt (modified/current): general, special revenue, permanent, capital projects, debt service
Proprietary (accrual/economic): internal service, enterprise,
Fiduciary (accrual/economic): Agency, Pension/Trust, Investment funds, & Private purpose

If you get a chance, check out a county's CAFR and it will make a little more sense. I work for a toll authority which kind of compares to working for a fund, so I don't see it all. That's why I still struggle with government. The main city/county (a.k.a. the mothership) sees it all…

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)

[mckan514w]

Govt just effing SUCKS! and I am still confused on how I scored “stronger” on it last go round- when I can barely get any right on the MCQ's I do….

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]

Subject: GAAP V IFRS INVENTORY

Hi,

You are correct. This rule just changed beginning 2017 and this question needs to be updated. Lower of cost or market should only be used when inventory is held at LIFO or retail inventory method.

We will get this question updated!!

Michael

Becker's response to my question about Becker's CPA-07285

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

[Mscfisher]

Gosh they should just pass just all this lady quarter before the exam changes come….I'm struggling to get through all the Becker mcq. The last 2 weeks i plan to do ninja. Exam is now 3/10.

[Author]

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