FAR Study Group Q2 2016 - Page 117

Viewing 15 replies - 1,741 through 1,755 (of 2,358 total)
1 2 3 … 116 117 118 … 156 157 158
  • Author
    Replies
  • May 22, 2016 at 7:22 pm #765411
    Crunchtime
    Participant

    Hey guys,

    I have my FAR exam tomorrow. I just took the AICPA released questions from the ninja mcq's. I scored way better on the difficult questions than the medium questions. Am I overthinking the questions?

    AUD-77
    BEC-70,73,68,74 SH##!!!!!, 80
    REG-73,76
    FAR -74,82

    Ethics here I come!!

    May 22, 2016 at 7:28 pm #765412
    Crunchtime
    Participant

    Can someone explain LCM to me? for some reason I get 2/3 right. I think IFRS(lc or NRV) is way easier for some reason.

    Garcel held unfinished inventory at cost of $85,000 with sales value of $125,000. Inventory cost $10,500 to complete. Normal profit margin is 30% of sales. Replacement cost of inventory was $75,000. What amount should Garcel report as inventory on balance sheet?

    A. 114,500
    B 85m000
    c 77,000
    d. 75,000

    AUD-77
    BEC-70,73,68,74 SH##!!!!!, 80
    REG-73,76
    FAR -74,82

    Ethics here I come!!

    May 22, 2016 at 7:43 pm #765413
    MaLoTu
    Participant

    Crunchtime, is the answer c?

    Here is what I did
    85k or 75k < we will use the lower of cost or market … market here
    125k-10.5k (sales less cost to complete)= 114.5 ceiling (this is also NRV)
    114.5k – 37.5k (125k*30%) = 77k < this is the value you should use since it is above replacement – I read in Becker that if market falls below the market floor you use the market floor value.

    May 22, 2016 at 7:53 pm #765414
    Crunchtime
    Participant

    Yes it is C,

    AUD-77
    BEC-70,73,68,74 SH##!!!!!, 80
    REG-73,76
    FAR -74,82

    Ethics here I come!!

    May 22, 2016 at 7:53 pm #765415
    Crunchtime
    Participant

    Yes it is C,

    AUD-77
    BEC-70,73,68,74 SH##!!!!!, 80
    REG-73,76
    FAR -74,82

    Ethics here I come!!

    May 22, 2016 at 7:58 pm #765416
    MaLoTu
    Participant

    @crunchtime – Did my explanation help?

    May 22, 2016 at 9:06 pm #765417
    Just3Letters
    Participant

    Hi FAR friends,

    Just checking in to say that Tuesday needs to come sooner!

    Hope studying is going well 🙂

    FAR- 81
    REG- 81
    BEC- Aug 22, 2016
    AUD- TBD

    May 22, 2016 at 9:11 pm #765418
    MaLoTu
    Participant

    Good luck, just3 …. score release is the worst!

    I am scheduled to sit on 6/1 and I just miss the cuttoff for June 9 score release. Since I will have to wait until the 21st no matter what I am considering pushing my exam back to the 8th …I am so confused if I should do the reschedule or not.

    May 22, 2016 at 9:22 pm #765419
    Just3Letters
    Participant

    If you have the money to push the test back and think it would help, why not?

    FAR- 81
    REG- 81
    BEC- Aug 22, 2016
    AUD- TBD

    May 22, 2016 at 9:23 pm #765420
    MaLoTu
    Participant

    I am not positive it will help … it seems like the more time I have the more I waste it. Not that I have not been seriously studying, but I haven't had my head in the game. I am just so burnt out on the whole exam deal. This is my third attempt so most everything is really review.

    May 22, 2016 at 9:37 pm #765421
    JT
    Participant

    @MaLoTu

    I'm just curious if your a ninja, what's your average/trending and how many questions have you done?

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

    May 22, 2016 at 11:11 pm #765422
    Crunchtime
    Participant

    @malotu,

    Yes it did but when do we use replacement cost then?

    AUD-77
    BEC-70,73,68,74 SH##!!!!!, 80
    REG-73,76
    FAR -74,82

    Ethics here I come!!

    May 22, 2016 at 11:31 pm #765423
    KJ
    Participant

    @ crunchtime…I used to struggle with that before as well. Look at this way, it's from your question above

    Cost = 85K = market

    RC (replacement cost) = 75
    NRV = 114.5
    NRV-NPM = 77K

    Look at the middle number between RC, NRV and NRV-NPM…..it is 77K. Now compare this with Cost price of 85K

    2 things you have to remember for which you have to compare with RC as follows:

    1. If RC is greater than NRV, then NRV will be market (In this case RC is not greater than NRV)
    2. If RC is less than NRV-NPM, then NRV-NPM will be market (In this case RC is less NRV-NPM)

    So market will be NRV-NPM = 77K which is the answer. Market price cannot be lower than the RC. Hope this helps!!

    You will use RC lets say if you take this same example if RC was 76 then market will be RC.

    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

    May 22, 2016 at 11:39 pm #765424
    KJ
    Participant

    I like IFRS LCM as well, only have to choose between NRV or Lower of cost.

    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

    May 22, 2016 at 11:44 pm #765425
    KJ
    Participant

    @ MaLoTu, I would take the exam on the 1st if I feel I am prepared (IMO you are never fully prepared anyways). I realized by scheduling FAR to May 28 was too FAR stretched out. I have been studying for FAR since middle of March and feels like I keep forgetting half of the stuff. 6 more days of studying and if you still fail after studying so much then don't know man it will be too damn annoying!!!

    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

  • Author
    Replies
Viewing 15 replies - 1,741 through 1,755 (of 2,358 total)
1 2 3 … 116 117 118 … 156 157 158
  • The topic ‘FAR Study Group Q2 2016 - Page 117’ is closed to new replies.