[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

[Claudia408]

I studied for Reg for about 6 weeks (I work full time) and for me it wasn't enough. For others, this is more than enough.

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Just3Letters]

I'm taking Reg on July 13th, I'm taking FAR on May 13th. So I gave myself exactly two months. That's all the time that my life will allow so it better be enough

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

[Spartans92]

LOL Just3letters. I think I am going to reschedule. 2 months sounds like plenty of time! When are you taking AUD and BEC?

BEC- PASS

[KJ]

I just went through 5 SIMS for the material I covered previously, kicked my arse!!!!

my score:

55% (adjusting entry) – always struggle in this don't know why.
0% (Authoritative – I had the answer right but I added ASC in the front of the numbers but ASC was already given),
83% (Statement of Cash Flows on a partnership question),
100% (Govt. question identifying Major/nonmajor – I have not started studying Govt. or NFP yet but remembered from class I took 2 years ago)
77% (Admission of New Partnership).

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

[marqzho]

Just3Letters

Don't panic on the 90 sec per question.

I had questions I need to spend more than 3 mins to ans. I had questions I know the answer in 10 sec. It's just average 🙂

REG 90
FAR 95
AUD 98
BEC 84

[Just3Letters]

Spartans, Good call! I think two months is a great time frame for all the exams. I hope anyways! I'm taking an exam each two months so FAR May 13, REG July 13, BEC is I think September 7 actually because of schedulding, and I haven't scheduled AUD yet but same time frame hopefully! I need to get my cool exam dates tagged on my posts like you guys have haha

Marqzho, thanks! I was hoping I wasn't the only person going above 90 seconds. Shooting for under 50 minutes per testlet correct?

Ok I just finished 7 F5 Sims and got 92% (OK, really I got 85ish but I looked at one of the answer and corrected because I felt like an idiot)

Anyways,

Any answer to this question would be greatly appreciated: If I had a SIM on the exam to create an amortization table for some kind of note, what is the rounding like? On the few I did for Becker I got some answers “wrong” because I was off a tiny bit. I actually kept the decimals the entire way to make it as exact as possible and my answer was wrong because it specifically told me to “round each calculation”

How specific is rounding? Do I have to get the EXACT number/decimal they get? And if they tell me to round each calculation and I actually keep more decimals, am I going to be marked wrong??

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

[KJ]

@Just3letters..I just did a SIM with ratio. It asked round to two decimal. I got it wrong. The answer was 1.79 but I entered 1.78 (1.785714286). I guess you have to round to next decimal point.

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

[Just3Letters]

@kanwal78,

That is super annoying. There is NO WAY I'm failing FAR because of decimals.

What happened to the concept of materiality 🙁

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

[KJ]

Lol.. I guess materiality is immaterial in the exam 🙂

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

[marqzho]

Just3Letters

In the real exam, first testlet should be at moderate level. Try to control the time to 30 mins. The second and third should be at difficult level. Manage both testlets to about 45 mins. Then you will have 2 hours for SIMS.

In my study time, I don't look at the clock. Just try to get the right answer for as long as it takes.

Just my suggestion 🙂 it works for me

REG 90
FAR 95
AUD 98
BEC 84

[Spartans92]

OMG Kanwal, I remember that SIM and I did exactly the same thing and when i saw the answer I literally went NUTS. There is no way the AICPA will fail me for that BS.

BEC- PASS

[KJ]

I know Spartans…I was like I can just get 74 because of that stupid BS!!

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

[Just3Letters]

Hey Marqzho,

Is that a pretty consistent experience that the first testlet is easier and then they become more difficult?

That's great advice. Thanks!

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

[Just3Letters]

I can't believe I was given this question on MC but anybody want to give it a go? I don't understand the explanation they give for the answer…

On December 31, year 2, Marsh Company entered into a debt restructuring agreement with Saxe Company, which was experiencing financial difficulties. Marsh restructured a $100,000 note receivable as follows:

• Reduced the principal obligation to $70,000.
• Forgave $12,000 of accrued interest.
• Extended the maturity date from December 31, year 2 to December 31, year 4.
• Reduced the interest rate from 12% to 8%. Interest was payable annually on December 31, year 3 and year 4.

Present value factors

Single sum, 2 years @ 8% .85734
Single sum, 2 years @ 12% .79719
Ordinary annuity 2 years @ 8% 1.78326
Ordinary annuity 2 years @ 12% 1.69005

Marsh does not elect the fair value option for recording this note receivable. In accordance with the agreement, Saxe made payments to Marsh on December 31, year 3 and year 4. How much interest income should Marsh report for the year ended December 31, year 4?

$0
$5,600
$8,100
$11,200

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

[KJ]

C is correct answer.

Present value of future cash flows:

70,000 x .79719 = 55,803 + Interest receivable[(70,000 x 8% = 5600) x 1.69005 = $9,464] = 65,267 (PV Y2)

Interest income (65,267 x 12%), Y2 = $7,832; Interest receivable Y3, 70,000 x 8% = $5,600; 7832-5600 ($2232 increase in carrying value of loan)

PV, Y3 $67,499

Interest revenue/income, Y4 = $8100 (67,499 x 12%)

When present value of future cash flows is less than the carrying amount, we use effective interest method.

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]

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