[jeff]

Welcome to the Q4 2016 CPA Exam Study Group for FAR.

If this is your first post in the study group – please post your target exam date (just the time frame to preserve your anonymity), and your past history with this exam (optional, of course).

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

[letsrun4it]

FAR Test in mid October. Passed the other 3 (though Reg took me 2 tries). This is it! I'm about a day away from getting through all the Roger videos and MCQ for the 1st time. My plan is to do all of the Roger MCQ a 2nd time as quickly as I can, then the Roger TBS. Then I'm switching to Ninja questions. This will be my first time using Ninja Q's, I just think sometimes late in my study process I know too many answers halfway thru reading the questions so switching Q banks should help.

My initial thoughts: HOLY COW this is a lot of material. It's taken me 3x longer to get through the videos and MCQ than it did for any other section. I got through school without ever understanding debits/credits so the journal entries are going to be a struggle for me.

Looking forward to engaging heavily in this study thread.

BEC: 85
REG: 74, 78
AUD: 86
FAR: October?

[Kemi22]

Hi group! I have a question – FAR-related but really from the workplace. How do you account for the cost of a website domain you have purchased to own? Expense or capitalize and over how long of a period? Any ideas?

2010:
BEC: 74, 71, 74, 75
AUD: 71, 74, 83
REG: 71, 76
FAR: (I quit) 34, 45

2015:
BEC: 79
AUD: 78
REG: 67, 76
FAR: 56 (trial run), 74, 74, 74, 80!
Thank God. Your prayers are always answered! Do not give up. Thank you St. Joseph Cupertino.

[Spartans92]

Kemi22, just a guess and since I haven't passed FAR so I am not qualify to give a positive answer. But Im guessing if its business related you can fully expense it as a non-deductible business expense?

BEC- PASS

[Claudia408]

Spartans – back to FAR huh… is this the 2nd attempt? I took it for the 2nd time last week. I felt so much better than 1st but I did so poorly the 1st round that I need to make up MAJOR points to pass. I just really hate studying for this exam for the past 18 months. I want this nightmare to be OVERRRRR!!!

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

[Spartans92]

Ugh, Yes back at FAR, Claudia! this sucks cuz I was literally starting from scratch instead of reviewing. But I think the material is much easier this round but the JE.. too many. I just hope for a better testlet lol I can't wait for this nightmare to end as well.

BEC- PASS

[K]

Hi everyone,

I recently fail BEC, my first CPA exam, and I'm feel very discouraged. Due to my Becker classes already scheduled I decided to just move on to FAR and go back to BEC after I take the FAR exam, scheduled in Nov. For BEC I primarily used Becker and Ninja notes and audio during my review. I knew my weak areas going into the exam I just hoped for the best. I know bad idea. With that being said I am extremely nervous going into FAR. Intermediate accounting was not my strong area in college. Any advice or suggestions on how to tackle FAR and pass? I am using Becker but I think I may need another more detailed source. I think I learn better with a more interactive approach. Any recommendations? Please help!!! I am kind of regretting this whole exam. =(

[jem242]

FAR will be my first test in Oct. I'm extremely nervous. The shear volume of information is completely overwhelming. I'm using Becker and NINJA notes.

[Jsn3004]

On December 12, 20X1, Imp Co. entered into three forward exchange contracts, each to purchase 100,000 francs in 90 days. The relevant exchange rates are as follows:

Spot Rate Forward Rate

December 12, 20X1 $.88 $.90
December 31, 20X1 .98 .93
Imp entered into the second forward contract to hedge a commitment to purchase equipment being manufactured to Imp's specifications. At December 31, 20X1, what amount of net foreign currency transaction gain should Imp include in income from this forward contract?

A.
$0

B.
$3,000

C.
$5,000

D.
$10,000

The answer is A.
I figured there would be no gain because there would be a $3,000 loss (.90-.93 *100,000)= -3,000.
But the explanation stated
” The unrealized gain of $3,000 associated with the derivative (the hedging instrument) and the $3,000 unrealized loss associated with the hedged instrument (the purchase commitment) should result in a net unrealized gain/loss of $0. Thus, the net unrealized gain/loss included in income from continuing operations is $0.”
I don't see how there is a $3,000 gain that cancels out the $3,000 loss. I looked this problem up online and it seems that there is the same question with a different answer. Now I just have a headache -___-

[harrisruthj]

Hi All –

I take FAR on November 12th and this is my first attempt at any part of the exam.

Ruth

[mtaylo24]

I’m here for the 2nd time. After bombing with a 52 last window, hoping to knock this one out of the park. I’m going to try using Becker this time around.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Operation_CPA]

@Spartans92 @Claudia408

We are all in this together guys! Lets get this thing knocked out this time around. I did not pass on my first attempt and this will be my retake. I remember you both from the study group a while back. Oct 1st exam date here. Best of luck to all.

Can someone explain to me if this is correct for exchanges that LACK commercial substance?

Boot is paid = No gain (if under 25%) –> If over 25% recognized all of the gain
………..To get percentage –> Boot paid / FV given = % (then use rules above)

Boot is received = recognize a proportion of the gain (If under 25%) –> If over 25% recognize all of the gain
……….To get percentage –> Boot received / FV received = % (then use rules above)

[happygal]

HI everyone!!! Exam is in 4 weeks 🙂

Do the IDEA and PUFER mneumonics still apply????? because in Jeff's audio it said something about the exam not including extraordinary items anymore. i will just put the mneumonics below.
IDEA mnemonic I: Income from continuing operations
D: Income from discontinued operations
E: Extraordinary items
A: Accounting principle changes (to retained earnings)

PUFER mnemonic Represents the five commonly tested sources of other comprehensive income.
P: Pension adjustments
U: Unrealized gains and losses on AFS securities
F: Foreign currency translation item
E: Effective portion of cash flows hedges
R: Revaluation surpluses (gains) recognized when intangible assets and fixed assets are revalued under IFRS

Thanks 🙂

[Muhammad]

i am so confused about updates (Inventory , Bond issue cost ) and are there testable by Q4 or no ?

[thebigguy1992]

extraordinary items are not included anymore

[FARexam04]

Hi,

Is anyone from GA? anyone interested in group study FAR. Currently i am studying on my own and the material is sooo much. Also its been long that i did this FAR materials. So whoever interested, we can make a study plan and study through helping each other motivating… if anyone interested let me know… i am in lawrenceville, GA.

Sofi

[Author]

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