- This topic has 2,502 replies, 106 voices, and was last updated 8 years, 9 months ago by
mckan514w.
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December 19, 2016 at 6:26 pm #1396517
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February 17, 2017 at 11:25 pm #1491915
norseman88Participant@Nathalia – Thanks for the response. My question is related to the fact that FV of assets were 550,000. Intangible assets should be included in this amount, or the question needs to state that they are not included. The question does not say the intangible assets have a FV of 60k over carrying value, just that the FV is 60k.
So are intangible assets not included on the balance sheet? To me, in this scenario, if we are not including the intangibles in the ‘FV of assets' then the carrying value of the intangible is zero?
February 18, 2017 at 4:55 am #1491960
NYaccountingstudentParticipantFebruary 18, 2017 at 7:39 am #1491979
GiniCParticipant@NYaccountingstudent I'm testing a day ahead of you and I still have a full Becker chapter to cover, and most of the SIMs . Some days I feel like I'll never get it all in my head in time 🙁
February 18, 2017 at 7:48 am #1491981
mckan514wParticipant@demarcon sounds like you got the FAR exam I got the first time I sat for it- especially with the SIMS… 🙁 don't get yourself down- remember you said yourself there is a good number of pre-test- and since you got two SIMs on one topic I would bet at least one was pre. Also if they were that minute and difficult then it sounds like your testlets were getting harder which is a good thing!!! Thanks for checking in fingers crossed for you!
Good luck today @Nathalia- think you are testing today….
@GiniC you are not alone- I feel like once I nail one concept down three more leave my head- I don't know how I am going to get it all to stick before test date. 🙁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- 9/2February 18, 2017 at 7:52 am #1491984
mtaylo24ParticipantI'm going to re-assess after this “power” weekend. If I'm not feeling better Monday morning, I will probably extend to March 10. I can't stop looking at the open dates!
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)February 18, 2017 at 8:01 am #1491987
ng3926aParticipant@mckan514w thanks! My exam is at 1230 and I will report back after that.
@noreseman88 that is a bit confusing. I think this might just be the type of question that just is what it is and has a formula for purposes of the exam.
Like for REG there were some things that my tax accountant mind had some problems with but just was what it was for purposes of the exam. (like AMTI)
BTW, the I is to record the intangible assets at FV, not to record the difference. So that's probably what's making it confusing since that would mean total FV = 410k and not what's in the question. Just assume in the future that what they're giving you is for purposes of plugging into CARINBIG.
February 18, 2017 at 9:35 am #1492000
mtaylo24ParticipantAhh screw it! I just rescheduled them both 😂😂
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)February 18, 2017 at 9:39 am #1492005
iskofiParticipantFebruary 18, 2017 at 10:11 am #1492023
Sticky NickyParticipantgood luck today!
February 18, 2017 at 10:48 am #1492050
aatouralParticipantWhy not C?
I thought they would get 200K if they worked for two years so it vests at end of year two that is when you incurred the liability. Or is is 100K upon work for 2 year?On January 1, year 1, a company's new CEO was awarded a $200,000 bonus that would be paid out in two $100,000 installments in years 3 and 4 of employment, contingent on employment through the year ended December 31, year 2. What amount should the company expense for this bonus for years 2 and 3?
a.$100,000 for year 2 and $0 for year 3.
b.$100,000 for year 2 and $100,000 for year 3.
c.$200,000 for year 2 and $0 for year 3.
d.$0 for year 2 and $100,000 for year 3.Explanation
Choice “a” is correct. The $200,000 bonus is a type of deferred compensation. As the bonus will not be paid unless the CEO continues his employment for two years, the cost of the benefits should be associated with the service period required (years 1 and 2). $100,000 of expense will be recorded in years 1 and 2 and accrued as a liability as the CEO earns the bonus in years 1 and 2. When payment occurs in years 3 and 4, there is no effect on the income statement.BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBSFebruary 18, 2017 at 10:56 am #1492062
GiniCParticipant@iskofi – Is this your first section? Your profile doesn't say. FAR is a huge beast, so you need to break it down into manageable pieces! Even so, you'll have to give up most semblances of a “life” until it's over. If this is your first, the others will seem easier to cover!
I'm a firm believer in setting up a study schedule, i.e. what topics to cover each week; but don't micro-schedule, you'll drive yourself nuts! Make sure to include a couple of weeks at the end to pull the things you reviewed first back into your current memory, and be ready to adjust when life slows you down. I gave myself 12 weeks for FAR, since my Becker materials have 10 chapters – the last two weeks will be for extra question, redoing SIMS, and running through a final overview-review of all topics. I'm fortunate that I work in engineering with no “busy season” and I can take vacation when I need to catch up.
Also look at the levels of emphasis in the exam's Content Specification Outline, and make sure your studying aligns with it. We all hate Governmental and Not-For-Profit, since most of us have never encountered it before – but those two topics total 18-24% of the exam, so you NEED to learn them!
Above all, have your stress management skills ready. For me it's the cat who leans on my shoulder (or sits on my book when I've been at the desk too long), brisk walks when the weather allows, and Ghirardelli Mini dark chocolate squares. (and my fantastic 22-year-old son who reminds me of all the things I told him during finals weeks!)
February 18, 2017 at 11:05 am #1492066
GiniCParticipant@aatoural – It's A because you have to spread out the expense over the vesting period, as the employee “earns” it – you expense half in Year 1 and half in Year 2, but in Year 3 none because it's all “earned” and expensed already.
February 18, 2017 at 11:32 am #1492078
aatouralParticipantOhhh got it. i thought you had to expense it all in year two because that was when employee satisfied the employment requirement. Got it. Thanks
BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBSFebruary 18, 2017 at 11:40 am #1492087
Sticky NickyParticipanti know theres a rule regarding something between 20% and 90% i just dont remember what it is lol,,,leasebacks?
February 18, 2017 at 12:07 pm #1492096
GiniCParticipant@Sticky Nicky –
It's actually 10% and 90%.
-If “substantially all” rights are retained (PV of payments >= 90% of Fair Value), account for as a capital lease (sale) and defer/amortize all gain
-If PV of lease payments is 10%-90% of Fair Value, you're “in the middle”, capital or operating, defer gain up to PV of minimum payments or capitalized asset & recognize the excess
-If PV of lease payments is <10%, operating lease, recognize all gain
I'm fuzzy on the operating vs. capitalize choice in the middle…
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