[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

[A1lessio]

@farhantariq_89 – I want to say retrospectively. A change in reporting entity is a change in accounting principles which means you adjust beginning retained earnings.

AUD (08/02/2016)

[A1lessio]

Is anyone here struggling with F2 in Becker. Do you just move on even if you don't fully grasp everything? I don't want to spend more than a week on each chapter.

AUD (08/02/2016)

[GiniC]

@A1lessio – Yes, and chapter 3 is just as bad. I feel I learn from it, but it's a slog!

[Demolition Man]

A

Assets or Revenue @ 10%. Trick is when there are losses and you need to use ABS…maybe…

[Demolition Man]

For Becker, the way the course is organized, the beginning chapters are critical.

Take the time and get through them, and by the time you reach the end and circle back for review, they will be a joke…but you will have concerns elsewhere.

I strongly recommend taking a day or two to go through the book and separately write down the mnemonics. Just the mnemonics. Only the mnemonics.

[walid6500]

I am so worried

far Result today

[A1lessio]

Demolition Man – I agree, I have been re-listening to the chapter 2 lecture on Timing Issues, Matching of revenue and expenses on my commute to work and something is definitely starting to click. I guess need to just constantly obsess over the material.

Walid- Best of luck!

AUD (08/02/2016)

[accountingisfun]

I keep getting confused about the periods and number of statements required for interim F/S — anyone want to help clear this up for me?

My understanding based on Becker is below, is this correct?

(Preparing 2nd Quarter 2016 interim F/S)

Balance Sheet:
6/30/16 (Current Quarter)
12/31/15 (End of last fiscal year)

Income Statement:
4/1/16 – 6/30/16 (Current Quarter)
1/1/16 – 6/30/16 (Current YTD)
4/1/15 – 6/30/15 (Corresponding period from prior year)
1/1/15 – 6/30/15 (Corresponding period from prior year)

Cash Flows:
4/1/16 – 6/30/16 (Current Quarter)
4/1/16 – 6/30/15 (Corresponding period from prior year)

Thanks!

[EfrainV24]

Officially did it. Moved my exam back from 11/26 to 12/7. I was too caught up with filing out 10Q and other life events that I fell behind. Giving myself an extra week and a half basically.

PS This governmental stuff is not easy!

Hopefully it pays off! Walid – good luck!!

[Ariah]

Ok just got Far results, scored 88. I am officially done with the CPA exams
I wasn't able to sleep well since I gave the test because I thought everything was so easy,and I didn't discuss with anyone since I thought easy meant fail. So I am now going to rephrase I was probably over-prepared. Thank you Lord!!
I wish everyone the very best; please know the basics inside n out.

[EfrainV24]

@accountingisfun – all looks correct except for the CF. This should be YTD activity rather than just quarterly. For instance, the add-back of depreciation and amortization should be the full YTD amount and now the QTD amount since you're using the indirect method and beginning with YTD income. Hope that helps!

[accountingisfun]

@Efrainv24 – Thanks for correcting me! I had it right in my notes but typed it incorrectly on here.

One other question I have is in regards to leases and executory costs –

I understand that insurance, maintenance and taxes are executory costs and as such are excluded from the calculation of minimum lease payments – but what about legal costs? Do these qualify as executory costs as well?

I remember running across a question or two in Becker related to executory costs which were tripping me up, I have to scan through the homework questions again to find the exact questions…

[MMAFEM]

hi,
can some one explain it to me, thanks in advance

2016 AICPA Released Questions – Financial Accounting & Reporting (Difficult) – http://www.ninjacpareview.com4.A company's cash-basis net income for the year ended December 31 was $75,000. The following information is from the company's accounting records:

Jan1 Dec31

account receivable 15000 20000
prepaid expense 7000 4000
accrued liabilities 2500 2000

What is the accrual-basis net income?
$72,500
$75,000
$77,500
$83,500

[accountingisfun]

I'm getting $77,500.

Can you confirm the answer? (Then I can explain)

[mckan514w]

I'm getting 83.5???? I SUCK at cash to accrual though….

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Author]

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