[jeff]

Welcome to the Q2 2016 CPA Exam Study Group for FAR.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[KJ]

Yes, that's what I was confused about. If in the exam, the question will specify IFRS or not.

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[SONA]

Well they might not specify. Like in this question they just said cost method. Because we know or because IFRS has two methods of valutionn of Fixed Assets and one of them is cost that why we have answered C.

[SONA]

That's why i keep telling myself “READ THE QUESTION, CAREFULLY”. Last line first- for the calculation questions(Saves from bunch of useless calculations) and all lines for the no calculation questions.

[SONA]

Parking come under Land improvement or not?

[MaLoTu]

SONA- I think so, I don't see it fitting the description of a building… Unless it is a parking structure! Lol.

[Sherif Essk]

SONA-Parking and Walkways come under Land improvement

[JT]

Going back to the IFRS question regarding fixed assets….

GAAP requires the fair value method and IFRS requires cost method or revaluation method, correct?

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[SONA]

@Dab

Fair value model method is also IFRS used for Investment property.

IFRS : Valuation of Fixed Asset : Two Model
Cost Model
Revaluation model
Loss goes to I/S
Gains goes to OCI

IFRS: Investment Property : Two Model
Cost Model
Fair value Model (Reported at FV only not depreciated)
G/L goes to I/S

US GAAP: Fixed Asset : One Model : Cost Model
US GAAP : No investment property.

[patelhj1]

@SONA I'm about to hit the library and start F7 can you tell me how the AICPA test took to take? Did you see the DRS SIM?

BEC 78 08/2015
REG 71 11/2015, RETAKE 83 01/2016
FAR 75! 5/2016
AUD ? 8/2016

Becker with Nonstop NINJA MCQ
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[JT]

@sona

Thank you.

By the way, what does that mean “US GAAP: no investment property”?

Also, just to make sure I understand that question and answer previously mentioned…

The intangible asset was valued under IFRS cost model (as the question states) but we still will write the gain up of 4k *just because* it's an intangible asset, correct?

So if it wasn't an intangible asset, and they used IFRS cost model, there wouldn't be a write up (because only the revaluation model writes up assets), correct?

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[JT]

Not to confuse anyone…. My understanding is that the cost model (whether under IFRS or GAAP) does not write up any assets, so this is news to me that if it's any intangible asset under IFRS then it's written up.

I thought only the revaluation model that's only in IFRS is that ONLY time we would write up assets, whether intangible or not.

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[MaLoTu]

^gotcha dab… And not to further confuse but how could cost model be the language that tips of that it is IFRS if gaap also uses cost model? Unless that was a error in SONAs last post about it. I need to revisit the book to verify.

I hate that question because the cost model issue and the fact that 84 is recoverable does not mean that it is recognizable or realizable on the fs. That means if they sold it they would credit a gain on sale and recognize it in the IS.

I am almost 100% certain that they will deibertely specify IFRS on the exam and it may even be bolder to make sure you see it.

[JT]

@MaLoTu

That's what I'm saying! Lol I had no idea this was an IFRS question!

I googled the question and other sites have the exact same wording for the question so I don't think there was a typo.

On my first attempt at FAR, all of the IFRS questions were obvious and clearly stated.

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[SONA]

@Dab Oh Yesss……….. you are right. Let me do some more research to answer your question ;).

Now i am just reading between the lines of the question. First line says cost model (IFRS /US GAAP). Wow this question have different answers Dad, depending on what we assume.

Hmmm……………. really JEFF should now jump in and answer that question with all details and assumptions.

Under US GAAP there is no “investment property” classification. So if question ask you to measure/report “investment property” under US GAAP the answer will be either NO measurement or “0”

[SONA]

@Patelhj1……… AICPA sample test i tried and there was DRS for FAR. But you know what it must be pretest. Because we are not encountering the DRS for real untill July-2016.

I will be hitting F-5 and may be F-6 today.

You guys may find AICPA released question in NINJA MCQ website also at roger review.

[Author]

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