[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

[Incoming91]

Governmental damn you…seriously.

Anyone have any pointers when they attacked this section?

REG: 80
FAR: 78 (x2)
AUD: 6/10
BEC: 7/20

[Spartans92]

Incoming, what specifically are you having issues with?

I HATE IFRS vs GAAP. I recall IFRS have different terms when capitalizing leases…

BEC- PASS

[Operation_CPA]

@Incoming91

What really helped me at first was thinking big picture and writing it out so I could see it from a high level. Just go step by step. For example:

1). Nail down the funds: Gov, Proprietary, & Fiduciary
2). The GRaSPP (if you're using Becker) use modified accrual accounting and have a current financial resource focus
3). The SE (proprietary) PAPI (fiduciary) use FULL accrual and use an economic resource focus

Next, I would understand what goes into each fund – for example illegal drug money that is confiscated goes into the Special revenue

etc. etc. The best way to go about these are just to go through the MCQ's. You will start to notice patterns and they get a lot easier.

[Incoming91]

@Spartans92

I have a good understanding of each of the funds but I am weak at the journal entries.

@Operations

Thanks for the tips – I still haven't completed all of the homework which would explain my confusion. I'm hoping it'll click by tonight! Thanks again

REG: 80
FAR: 78 (x2)
AUD: 6/10
BEC: 7/20

[Just3Letters]

I can't decide if I'm not focusing enough on the SIMS,

what are you opinions on how much to focus on sims? I have just been doing thousands of MC and maybe 1 or 2 sims per week

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

[marqzho]

“Next, I would understand what goes into each fund – for example illegal drug money that is confiscated goes into the Special revenue”

This part and the presentation of Govt F/S are the worst part in FAR.

They just doesn't make any fxxking sense at all to me 🙂

REG 90
FAR 95
AUD 98
BEC 84

[marqzho]

Just3Letters

My advice : You don't need to focus in SIMS at all 🙂 Thousands and Thousands MCQ should do the job.

REG 90
FAR 95
AUD 98
BEC 84

[Spartans92]

Incoming, the JE definitely can be tough especially with NFP ones. I know this is related to REG but anyone has experience with Schedule M-1? LOL

BEC- PASS

[Spartans92]

On December 30, Year 1, Bart, Inc. purchased a machine from Fell Corp. in exchange for a noninterest bearing note requiring eight payments of $20,000. The first payment was made on December 30, Year 1, and the others are due annually on December 30. At date of issuance, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows:

Period 7 Present Value of Ordinary Annuity of 1 at 11% = 4.712
Period 8 = 5.146

Period 7 Present Value of Annuity in Advance of 1 at 11% = 5.231
Period 8 = 5.712
I am confused on using ordinary annuity vs annuity due. can someone explain?
I apologize for the layout.

BEC- PASS

[Incoming91]

@Just3letters

I am not a fan of sims (not that anyone is) at all but I also failed FAR the first go so not one to speak! On my second go at studying for FAR I have not touched a SIM yet. SIMS are very good at determining if you truly understand the material but they can take forever. In my opinion MC trumps sims any day because you will apply big concepts that you learn from MC to SIMS. As long as you do not neglect journal entries when working MC you'll be good.

SIMS are just long ass MC questions

Disclaimer – I failed FAR on the first go so this is just my opinion.

REG: 80
FAR: 78 (x2)
AUD: 6/10
BEC: 7/20

[marqzho]

annuity due / annuity in advance means the 1st payment is at the beginning of the whole term.

REG 90
FAR 95
AUD 98
BEC 84

[Incoming91]

@spartan

If there is a payment “due” right away at inception or at the beginning then its an annuity “due”

If the first payment is due at the end of the period then its an ordinary annuity

When it comes to PV factors, its really important because the difference comes down to the periods of interest that will be calculated.

Number of periods in an ordinary annuity = number of payments
Number of periods in an annuity due = number of payments – 1
Why??? Simply because your making a payment upfront so NO time has passed therefore no interest should be calculated. (the factors are given to us always but if you were calculating the factor then this is the approach)

REG: 80
FAR: 78 (x2)
AUD: 6/10
BEC: 7/20

[Spartans92]

Thank you incoming. I totally had them flipped when I was working the problem.

BEC- PASS

[Operation_CPA]

Is memorizing the J/E's for Pensions worth my time? SIR AGE is so long. Page F6-17 Becker, wow!

[Claudia408]

Why isn't the gain in the problem $4,000? My calc:

200,000+50,000= 250,000 -230,000= 20,000
and since 50,000/250,000= 20%, only 20% of 20,000 should be gain =4,000. But the answer says all 20,000 is gain

Hexaco Corp. exchanged a piece of land that was being held for investment purposes for an oil rig that it will use in its drilling operations. The land had a carrying value of $230,000 and a fair value of $250,000 on the date of the exchange. The oil rig received in exchange had a fair value of $200,000 and, as a result, Hexaco received an additional $50,000 in cash in the transaction. How much gain, if any, will Hexaco recognize on the exchange?

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

[Author]

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