[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

[Credit Revenue]

I just read on the scoring on the SIM's they are weighted the same way the MCQ's are based in difficulty. So that gives me some hope for sure. Hopefully, we passed!! I don't want to look at FAR that in-depth ever again either. Just hope the built in curve was in your favor. I will be just as happy with 75 as I would be with a 90. Just want it to be over.

A - 79 expires 4/30/16 need a pass on REG
B - 78
F - 80
R - 83!!! Can live again!

[Just3Letters]

Spartans,

Congrats on surviving the exam! That's the hard part I think haha

Sounds like four hours of death to me…

Spartans,

I am very confused about your testing dates. How do you have Reg in June?

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

[Spartans92]

Haha it was Def like death to me too! They extended test date to 10 days in for the blackout window due to the changes. So June September and December are open for first 10 days.

BEC- PASS

[Spartans92]

Right now I'm not sure if I want to flip reg with bec so I can have more time for reg moving to end of July instead.

BEC- PASS

[Just3Letters]

Oh I didn't even realize that I normally wouldn't have been able to register for BEC on September 7, that was lucky! haha

You should move your test date back to July for REG so we can study together. I'll be in the REG room starting May 14!

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

[Just3Letters]

Hi smart people,

I am confused about how these two IFRS questions are treated differently:

On December 31, Year 1, an entity adopted the IFRS revaluation model for reporting it's long-term assets and revalued a patent with a carrying value of $85,000 and a 10 year life to it's fair value of $75,000. On December 31, Year 2, before any amortization, the entity determined that the patent had a fair value of $90,000. In it's December 31, Year 2 financial statements, the entity will report a revaluation gain of:

Answer is: $10,000 on I/S and $5,000 in OCI

How is that treatment different than this:

A company reporting under IFRS holds a position in BE Corporation bonds that is classified as AFS. In the previous year, the company recorded an impairment loss on these bonds. In the current year, the company reversed a portion of these impariment losses. How should the reversal be recorded?

The correct answer is that the entire reversal is recorded in current year income.

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

[Spartans92]

Hey Just3, for your first question in year 1 your paten went from CV 85k to 75K FV so 10k Loss. Then Year 2 your FMV went to 90K. So that is a gain of 15k. But you had losses in year 1 which are booked into I/S so they first reduce that to zero. So you have 5k left in gain and under IFRS your revaluation gains go into OCI (PUFER). Cant answer the second one lol. Don't think I fully understand it 🙁

I think I will switch REG haha.

BEC- PASS

[Spartans92]

NVM found it in Book.. go to F10-59 it says your reversal impairment losses are permitted under IFRS. Hence, should be booked to the current year I/S.

BEC- PASS

[KJ]

If I am not wrong. In the first question LT assets under revaluation, increase in value from adjustment are reported in the current period as OCI. The second question is an investment and when revalued any profit/loss is recorded in the current period on the income statement.

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

because the second one is a impairment loss on AFS.

REG 90
FAR 95
AUD 98
BEC 84

[Just3Letters]

Thanks guys! That makes sense. Changes in values of AFS securities are on I/S.

Sorry for the big problem haha

I just did 100 MCQ test and got 69 🙁 I was consistently getting mid-high 70's which isn't much better but still…

There were a bunch of conceptual questions that I had never even heard of before and had to guess

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

[lolo]

Guys I feel F2 is hard! am I alone? it takes way too long to go through its MCQs!

My Nick name is sunshine, but the fact is I have not been in touch with it since I started this CPA exam! IT HURTS

AUD - ✔ Passed Becker self study!
BEC - ✔ Passed Becker self study!
FAR - ✔ Passed Becker self study!
REG - TBD

[Just3Letters]

Revenue recognition stuff can be tough because Becker tries to teach the “squeeze” method which in my opinion is a way to circumvent actually learning how the deferrals/accruals and such affect the transactions.

I would recommend not worrying about how long it takes and just focus on making your study time count. Nobody said this was a fast process haha

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

[Zyx]

Any one explains this this please?
A company reported the following information for Year 1:

Net income $34,000
Owner contribution 9,000
Deferred gain on an effective cash-
flow hedge 8,000
Foreign currency translation gain 2,000
Prior service cost not recognized in
net periodic pension cost 5,000

What is the amount of other comprehensive income for Year 1?

ANS: Deferred gain on an effective cash-flow hedge ($8,000) + Foreign currency translation gain ($2,000) − Prior service cost not recognized in net periodic pension cost ($5,000) = $5,000.

Why is prior service cost deducted? Is it because it is credited on OCI and debited on accumulated OCI then amortize it which increases OCI?

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[lolo]

lol yeah its been 7 hours since I started the first section in F2 ant yet its not finished couple ones are still out there 😀

My Nick name is sunshine, but the fact is I have not been in touch with it since I started this CPA exam! IT HURTS

AUD - ✔ Passed Becker self study!
BEC - ✔ Passed Becker self study!
FAR - ✔ Passed Becker self study!
REG - TBD

[Author]

Replies