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lolo.
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March 18, 2016 at 4:43 am #200895
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June 16, 2016 at 3:13 pm #765951
mtaylo24
Participant@Operation_CPA – This will be my first swing at it. I don't plan to sit until the extended window though. What materials are you using? I'm rolling with Gleim.
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)June 16, 2016 at 5:05 pm #765952jpn264
Participanttook AUD last summer and didn't pass and took a year off to finish my MS. studying for FAR, taking it in october and just really struggling. any suggestions? using becker (paid for by my employer) and just feeling really overwhelmed and 0 confidence.
June 16, 2016 at 5:45 pm #765953Operation_CPA
ParticipantCurrently using Becker and supplementing with NINJA Notes!
Honestly, FAR is a grind. Things come full circle over time though, I will say. My best advice is try not to get too caught up in the small details. One of the things I wish I did my first time studying FAR was keep a log of everything I got wrong. When you get something wrong, write it down or take notes in a word doc. Use the bullet points as fact nuggets this way you are less likely to make the same mistake again.
June 16, 2016 at 8:45 pm #765954Anonymous
Inactivei just found out about the existence of DRS and that they are debuting starting July 2016. So i took FAR this past window and i realize one of my sims was a DRS. so im guessing that was a pretest question, which is a bummer since i thought it was one of the few sims i did well on. was counting on that one to boost my points
June 16, 2016 at 11:56 pm #765955FUBARFAR
ParticipantHey guys, I have the following question. I tried doing journal entries, but I'm not getting the same answer and the explanation isn't making much sense. Can anyone make light of this problem?
Kuchman Kookware issued 40,000 shares of its $8.00 par value common stock for $9 on January 1, Year 1. Kuchman repurchased 1,000 shares at $8 per share on April 1, Year 2, resold 500 shares at $9 per share on July 1, Year 2, and, on October 1, Year 2, resold the final 500 shares at $5 per share. Assuming Kuchman uses the par value method of accounting for its treasury stock, retained earnings at December 31. Year 2 would be reduced by:
a. $1,000
b. $0
c. $500
d. $1,500
Explanation
Choice “c” is correct. Using the par value method, the company effectively retires reacquired stock at the time of repurchase and accounts for any gain through Additional Paid-in Capital–Treasury Stock and any loss through retained earnings. Resale of stock above par results in elimination of the related treasury stock amount and in the recording of Additional Paid-in Capital. Resale of stock significantly below par results in recording a loss in retained earnings to the extent the loss exceeds the previously recorded Additional Paid-in Capital–Treasury Stock.FAR - 7/19/2016 - 83
BEC - 8/30/2016
AUD - TBD
REG - TBDJune 17, 2016 at 1:24 am #765956Anonymous
InactiveFUBARFAR, I am lost as well on your question. My answer would have been (A – $1,000)
4/2/x2 repurchase T/S
D T/S (1,000 * 8) 8K
C Cash 8K7/1/x2 Resold T/S
D Cash (500 * 9) 4,500
C T/S (500 * 8) 4,000
C APIC – T/S 500So, I am not sure why RE is $500 instead of $1k
Anyone can explain? Tx
Dlu
10/1/x2 Resold T/S
D Cash (500 * 5) 2,500
D APIC – T/S 500
D R/E 1,000
C T/S (500 * 8) 4,000June 17, 2016 at 3:37 pm #765957gennatay
ParticipantDoes anyone know why this was divided by “3” instead of “12” to find the weighted average?
Pubco is a public company that uses a calendar year and has a complex capital structure.
The average market price of Pubco’s common stock for the first quarter was $25, the shares outstanding at the beginning of the period equaled 300,000, and 12,000 shares were issued on March 1.
At the beginning of the quarter, Pubco had outstanding $2 million of 5% convertible bonds, with each $1,000 bond convertible into 10 shares of common stock. No bonds were converted.
At the beginning of the quarter, Pubco also had outstanding 120,000 shares of preferred stock paying a quarterly dividend of $.10 per share and convertible to common stock on a one-to-one basis. Holders of 60,000 shares of preferred stock exercised their conversion privilege on February 1.
Throughout the first quarter, warrants to buy 50,000 shares of Pubco’s common stock for $28 per share were outstanding but unexercised.
The weighted-average number of shares outstanding used to calculate Pubco’s basic earnings per share (BEPS) amounts for the first quarter isA. 444,000
B. 372,000
C. 344,000
Answer (C) is correct.
The number of shares outstanding at January 1 was 300,000, 12,000 shares were issued on March 1, and 60,000 shares of preferred stock were converted to 60,000 shares of common stock on February 1. Thus, the weighted-average number of shares used to calculate BEPS amounts for the first quarter is 344,000 {300,000 + [12,000 × (1 ÷ 3)] + [60,000 × (2 ÷ 3)]}.
D. 300,000June 17, 2016 at 4:51 pm #765958Operation_CPA
ParticipantOn December 31, an entity tested its goodwill for impairment and determined the following for one of its cash-generating units:
Carrying value $ 1,015,000
Fair value less costs to sell 955,000The entity also determined that the present value of the future cash flows expected from the cash generating unit is $940,000. The cash generating unit reports goodwill of $130,000. What is the goodwill impairment loss that will be reported on the December 31 income statement under IFRS?
Really simple question here – I got the answer of 60,000 but why is the 130,000 goodwill ignored and not making it 70,000 (one of the other answer choices) is that just to try to throw you off?
June 17, 2016 at 5:13 pm #765959KJ
Participant@Genna..if I'm not wrong is because question is only asking for 1st quarter not year end.
FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein
June 17, 2016 at 6:45 pm #765960June 18, 2016 at 12:32 am #765961KJ
Participant@ Operation…Under IFRS, if asset CV is more than the recoverable amount the asset is impaired and is charged against the current period profit or loss (income statement). The question is asking what amount will be reported in Income statement. This will be using cost method. If it was reevaluation method was used then you will include gain/loss in OCI. The key difference is question asking for reporting loss either in Income Statement or OCI.
I am bad at explaining but hopefully this helps.
FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein
June 18, 2016 at 2:02 am #765962Zyx
ParticipantFUBARFAR & DLu; If I'm not wrong the relevance info is below; the info given before that incurred in year1 which is not included in year 2, so disregard that.
Kuchman repurchased 1,000 shares at $8 per share on April 1, Year 2, resold 500 shares at $9 per share on July 1, Year 2, and, on October 1, Year 2, resold the final 500 shares at $5 per share. Assuming Kuchman uses the par value method of accounting for its treasury stock, retained earnings at December 31. Year 2 would be reduced by:
JEs
common stock $8,000 (1000 shares * $8 par value) -repurchased 1,000 shares at $8 per share
Cash $8,000
Cash $4,500 -resold 500 shares at $9, par value $8
common stock $4,000
paid in capital $500
Cash $2,500 -resold 500 shares at $5, par value $8
paid in capital $500
retained earning $1,000
common stock $4,000From above, paid in capital reduces $500
REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27June 18, 2016 at 2:51 am #765963KJ
ParticipantThe following information pertains to Gali Co.'s defined benefit pension plan for 20X1:
Fair value of plan assets (beginning of year) $350,000
Fair value of plan assets (end of year) 525,000
Employer contributions 110,000
Benefits paid 85,000What is Gali's actual return on plan assets?
A.
$65,000B.
$150,000C.
$175,000D.
$260,000I thought this was the formula for actual return on plan assets but according to this none of the above choices are correct.
(End Year Plan assets – Beg. Year Plan assets) + (Contributions – Benefits Paid)
The Correct answer is B which will make it true if the formula was
(End Year Plan assets – Beg. Year Plan assets) – (Contributions – Benefits Paid)
I am confused, can someone please explain?
FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein
June 18, 2016 at 3:17 am #765964Anonymous
Inactivekanwal78, How about this:
Beg: 350
+ Contribution: + 110
– Paid : – 85
Subtotal: 375Return?
Ending: 525
Subtotal + R = Ending
375 + R = 525Return = 150
June 18, 2016 at 4:27 am #765965Anonymous
Inactivezyx11, but the question is asking for R/E @ 12/31/x2
So, based on the math and JE that I did using Par method, R/E is Dr. for $1k. But the answer is $500.
That is what I don't get.
Dlu
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