[jeff]

Welcome to the FAR CPA Exam study group for July & August 2018 exams. 🙂

Please introduce yourself & when you’re taking your exam (approximate timeframe).

FAR Study Group Links and Resources:

1. NINJA Monthly – Full FAR Course for $67/mo
2. How to Study for FAR with NINJA Only
3. How to Pass FAR in 20 Days
4. How to Retake FAR After Failing
5. Video: Study Advice for FAR
6. CPA Reviewed Podcast
7. CPA Exam Score Release Dates
8. NINJA MCQ Trending vs Actual FAR Scores
9. I Passed the CPA Exam!
10. I Passed FAR!
11. NINJA FAR SIMS List by Topic
12. Free Downloads: NINJA FAR

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[krstnam]

@Globetrotter – thank you. I also looked up undepreciated cost and apparently that's the same as carrying value – so basically, what's left on the asset that has not yet been depreciated. The wording on that one is weird. Maybe it's a super old question or something. Whenever I get oddball questions I always think that the question was prob aged out because it was a bad question 🙂

[Apii]

Has anybody got the detail score which shows strength and weak areas in FAR for me. I had never received for last quarter's score card. M I missing something on this right now !! Can anybody tell me ?

[Ek]

Hi,
I'm getting confused the revenue recognition rules can someone please explain this-
Property taxes collected levied in fiscal year 1 to finance the general fund budget of fiscal year 2 should be reported as general fund revenues in fiscal year year 2:
1.for the amout collected in fiscal year year 2 only
2. Regardless of the fiscal year in which collected.
3.for the amount collected before the end of fiscal year year 2 only
4.for the amount collected before the end of fiscal year 3 or shortly thereafter.

For the year 1 J.E would be-
Dr. Tax receivable
Cr. Revenue
if the revenue is recognized in year 1 why are we recognizing in year 2?

[Globetrotter]

Ek,
Shouldn't Year 1 J/E be:
Dr. Tax receivable
Cr. DEFERRED Revenue (a liability)
For General Fund accounting, you would recognize Revenue when it's Available and Measurable. Since we are collecting in Year 1 for Year 2, it's Measurable but not Available yet. Even if you have funds on hand.

[Jcm86]

Took FAR, last remaining test, 8/6. Credits start to expire 9/8. Score release 9/11 = no finger nails!

[young scholar]

Can anyone help out with this question?…

On February 1, Year 1, Davis Corp. issued 12%, $1,000,000 face amount, 10-year bonds for $1,117,000. Davis reacquired all of these bonds at 102, plus accrued interest, on May 1, Year 4 and retired them. This type of transaction is considered a normal part of risk management for Davis Corp. Unamortized bond premium on that date was $78,000. What was Davis' gain on the bond retirement?

a. $39,000

b. $19,000

c. $58,000

d. $97,000

Explanation

Choice “c” is correct. $58,000 gain on bond retirement.

So I get why the answer is c. $58,000 with their explanation, but shouldn't you have to take the accrued interest into account? Becker never even mentions it in the solution. Thanks so much in advance.

[young scholar]

Can anyone help out with this question please
On February 1, Year 1, Davis Corp. issued 12%, $1,000,000 face amount, 10-year bonds for $1,117,000. Davis reacquired all of these bonds at 102, plus accrued interest, on May 1, Year 4 and retired them. This type of transaction is considered a normal part of risk management for Davis Corp. Unamortized bond premium on that date was $78,000. What was Davis' gain on the bond retirement?

a. $39,000

b. $19,000

c. $58,000

d. $97,000

Explanation

Choice “c” is correct. $58,000 gain on bond retirement.

So I get why the answer is c. $58,000 with their explanation, but shouldn't you have to take the accrued interest into account? Becker never even mentions it in the solution.

[Notgivingup!]

I’ve just started studying for FAR, I’m have not set a date yet to take the exam, but looking to take at the next available time. I am using Becker at the moment and considering adding NINJA as a supplement. I’ve been told FAR is the most difficult to pass, so I figured I would get the hard one off the way first. Looking forward to this study group as another form of resource.

[Globetrotter]

Young Scholar,
Is it possible that it’s just how the question is worded? They retired the bonds at 102 PLUS accrued interest. So, the cash out was not
$1,020,000 but ($1,020,000 plus $30,000 interest for 3 months). So, in addition to entry that gives you $58k gain, you will have debit to $30k interest expense and credit to $30k cash.
That is how I would look at it.

[YouCanDoIt]

@Globe, I see you still keeping active with FAR! How was your test experience, did you feel “prepared enough”

FAR: 76
REG: Currently studying
AUD:
BEC:

[Globetrotter]

YouCanDoIt,

When I got out of Prometric, I thought that it was not that bad. I will think I flagged three in the first testlet and maybe eight on the second. In all honesty, I did not think that SIMs were horrible.
I finished with eight minutes to go.

But now I am drifting between despair and hope several times a day. The wait is driving me crazy.
This is my first CPA exam ever.

I just wanna my 75.

How is your studying going?

[YouCanDoIt]

We all know that feeling of waiting, ugh, but don't think on it too much either!
I started doing some AICPA sample testing, to get a feel of the FAR. Other than that, just going through the MCQs still, want to focus more on government and non-profits because I don't feel that comfortable with those topics yet.

FAR: 76
REG: Currently studying
AUD:
BEC:

[Anonymous]

Make sure to nail those (Govt. & NFP) topics!
They’re almost give-away points when you’re well prepared for those special topics for FAR.

[kmgentil]

Hey guys. Is there ever a time that you would debit an investment account instead of a valuation account to mark-to-market for trading securities/equity securities? Some questions I see in Becker debit the valuation account and then others debit the investment account. Any help would be appreciated.

[Notgivingup!]

Hi Jeff, I’m interested in the putting my hat in your give away for th NINJA Monthly, to be honest, I’m starting all over after putting my goal of passing for several years. I’m determined to get this checked off my life’s ‘To-Do’. As far as what question keeps me up at night, well, just getting started, I don’t have any as of yet.
Thanks.

[Author]

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