[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

[patelhj1]

marqzho – Went through all of Becker CPA questions (once) and the wrongs once again. Was probably trending in the 65-75% in most sections

Started NINJA MCQ last 2 days, completed 100MCQ and trending 75%

BEC 78 08/2015
REG 71 11/2015, RETAKE 83 01/2016
FAR 75! 5/2016
AUD ? 8/2016

Becker with Nonstop NINJA MCQ
Google most difficult professional exam

[Just3Letters]

Patel,

It's not about time spent on review, it's about progress.

My final review is about 4 weeks but I started out averaging in the low 70s before review started and now I'm averaging in high 80s so I feel that this was the perfect time for me.

My total FAR study is 2 entire months. Some people do the entire thing in 3 weeks. It's about realistic expectations and progress. I would say that if you can get high 70s with all new questions consistently you are probably ready. But that's just my opinion

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

[Oneday]

I'm completely lost on what this question is asking for and what the answer means… Can someone help me understand this? Especially the answer B and C. I can't visualize what they mean.

A financial instrument that embodies an unconditional obligation that the issuer must or may settle by issuing a variable number of its equity shares must be classified as a liability if, at inception, the monetary value of the obligation is based solely or predominantly on which of the following:?

Incorrect A.
A fixed monetary amount known at inception

B.
Variations in something other than the fair value of the issuer's equity shares

C.
Variations inversely related to changes in the fair value of the issuer's equity shares

D.
Any one of the conditions listed

Explanation:

FASB ASC 480-10-25-14 requires that this type of obligation must be considered a liability if any one of the conditions listed is true.

A financial instrument that embodies an unconditional obligation, or one other than an outstanding share that embodies a conditional obligation, that the issuer must or may settle by issuing a variable number of its equity shares must be classified as a liability if, at inception, the monetary value of the obligation is based solely or predominantly on any one of the following:

A fixed monetary amount known at inception (for example, a payable settleable with a variable number of the issuer's equity shares)
Variations in something other than the fair value of the issuer's equity shares (for example, a financial instrument indexed to the Standard and Poor's 500 and settleable with a variable number of the issuer's equity shares)
Variations inversely related to changes in the fair value of the issuer's equity shares (for example, a written put option that could be net share settled)

[marqzho]

patelhj1

In the next 10 days, keep doing Ninja MCQ, a set of 30 in 1 hour. So 5hours *10days = 50 hrs = 50 set = 1500 MCQ.

Then go back to your textbook. Read it page by page, line by line. You already know 90% of the content through your lecture and MCQ, So it takes only one or two days.

Then Start doing SIMS. Get familiar with the format. Get familiar with the research type question.

Then you probably have 4-5 days left. Do 2-3 set of MCQ a day to keep your brain burning. Do the AICPA release questions.

Take some day off. you need them 🙂

Have fun and enjoy the FAR hell

REG 90
FAR 95
AUD 98
BEC 84

[marqzho]

ThisIsTheYear

My advice….Skip it.

REG 90
FAR 95
AUD 98
BEC 84

[Just3Letters]

ThisIsTheYear,

hedging/derivative questions = yuck!

anyways,

I just had this question!

Whenever there is a question about if you should recognize a liability, 90% of the time you are going to recognize it. Conservatism. So I was already thinking D when I first read this question.

Then think about each answer:

A: If you know exactly how much obligation you will have to give in equity in the future. That is a definite liability.

B: If the monetary asset is based on variation in something else. That must be the underlying. The derivative. We definitely have assets/liabilities for derivative. So this is a liability. Now that there are two definite answers as liabilities, D is obviously the answer.

C: Variations inversely related to change in the shares. If share value goes up, the liability (obligation) goes down. That sounds like some kind of betting on price variation to me. Must be a kind of fair value hedge. You would record as liability to the extent that you are losing the “bet” a.k.a. the derivative is losing value

D. Yes.

But if all this doesn't make sense (I only marginally understand this stuff), refer to my conservatism comment above 🙂

Good luck studying!

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

[ImCPA]

Hello Everyone-

Wanted to check if 2016 AICPA Newly Released Questions are released yet? If yes, where can I download them? In my Becker software, I just see 2015 AICPA Released questions.

Thank You!

FAR - 85 (5/10/2016)
AUD - 89 (7/12/2016)
BEC - 9/07/2016
REG - TBD

[pracap]

Hey Guys,

I just lost FAR credit thanks to REG.
I passed FAR in 2014, i think lot of changes/additions etc.. would have been done to FAR.
Please please please help me how to go about….

[lolo]

Hi everyone! I use Becker review and I wonder how I can delete a chosen option on the sims (especially those written options where you cant just edit)? I mean sometimes some cells should be left unfilled and it happens that you fill them while you should not have to, so do you know a way how we can we delete it? does anyone have an idea?

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

[patelhj1]

@ Sunshine

Same problem happens to me in the Becker SIMS. I usually end up having to right click and reload. However, this resets just that SIM so everything on the SIM will be gone.

Unless anyone knows another way, thats the only way I figured out.

BEC 78 08/2015
REG 71 11/2015, RETAKE 83 01/2016
FAR 75! 5/2016
AUD ? 8/2016

Becker with Nonstop NINJA MCQ
Google most difficult professional exam

[lolo]

@patelhj1, Thank you I figured that out but do you know whether we would face the same thing on the real exam?

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]

If you want to try a tricky question:

Pine City's year-end is June 30. Pine levies property taxes in January of each year for the calendar year. One-half of the levy is due in May and one-half is due in October. Property tax revenue is budgeted for the period in which payment is due. The following information pertains to Pine's property taxes for the period from July 1, 20X0, to June 30, 20X1:

Calendar Year
——————————
20X0 20X1
———- ———-
Levy $2,000,000 $2,400,000
Collected in: May 950,000 1,100,000
July 50,000 60,000
October 920,000
December 80,000
The $40,000 balance due for the May 20X1 installments was expected to be collected in August 20X1. What amount should Pine recognize for property tax revenue for the year ended June 30, 20X1?

A.
$2,160,000

B.
$2,200,000

C.
$2,360,000

Incorrect D.
$2,400,000

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

[Just3Letters]

Does anybody know what's going on here? The answer is apparently “A” 41,000

11. A company reported the following financial information:
Taxable income for current year
$120,000
Deferred income tax liability, beginning of year
50,000
Deferred income tax liability, end of year
55,000
Deferred income tax asset, beginning of year
10,000
Deferred income tax asset, end of year
16,000
Current and future years’ tax rate
35%
The current-year’s income tax expense is what amount?
$41,000
$42,000
$43,000
$53,000

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

[Zyx]

Just3Letters;

Deferred tax liability is $5,000 and deferred tax asset is $6,000 which offset each other resulted in deferred tax asset of $1,000
Taxable income $ 120000 * tax rate 35% = $42000 – deferred tax asset $1000 = $41000

Income tax expense $41,000
Deferred tax asset $1,000
Income tax payable $42,000

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

[Zyx]

As of December 31 of the current year, the accumulated postretirement benefit obligation and plan assets of a defined benefit postretirement plan sponsored by Crouse, Inc., were:

Accumulated postretirement benefit obligation $500,000
Plan assets at fair value 425,000
Transition obligation $ 75,000
========

Crouse elected to apply GAAP provisions for employers’ accounting for postretirement benefits other than pensions, in its financial statements for the current year ended December 31 and recognize the transition amount on a delayed basis as a component of net periodic postretirement benefit cost. The average remaining service period of active plan participants expected to receive benefits was estimated to be 10 years at the date of transition. Some participants’ estimated service periods are 25 years. To minimize an accrual for postretirement benefit cost, what amount of transition obligation should Crouse amortize?
A 3000
B 3750
C 5000
D 7500

Answer is B;under the circumstances given, the transition obligation can be amortized over a 20-year period. Since the average remaining service life of active participants is under 20 years, the longer 20-year period is available, and thus the annual amortization is $3,750 ($75,000 ÷ 20 years).

How did they get 20 years from?

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

[Author]

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