[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

[mckan514w]

Agree with emichelle Gain of 30K.

Thanks for checking in Ascott… sounds like it went great for you! Fingers crossed.

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

[mtaylo24]

Correct!

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)

[jonm857]

excavation cost… does this go to building or land? the definition in becker isn't as precise as I like it. under land, it says “include costs UP TO excavation”. under building, it says “excavation forward”.

thanks

B - 81
A - 87
R - 73
F - July 5th

[AScott89]

Excavation goes to new building cost. Think of it this way. The excavation is only done to prep for a building so it would go to building cost. You wouldn't need to excavate the land if you weren't going to build anything there so that's why excavation goes to building, not land. I hope that helps.

Anyway, just to give a review of my experience this morning everything went pretty well. MCQ-wise only about ten or twelve made me doubt myself and the sims were pretty straightforward. I can also confirm that document review sims are not on the exam yet so yay for everyone who hates those things. I got lucky as hell in that some of my weaker topics were not heavily tested or just didn't show up. Thank God.

Good luck on the 9th @mckan! I'll be rooting for you. Make sure you know your IFRS.

BEC-65
AUD-72(8 '14); 68(11 '14)
FAR-
REG-

[mckan514w]

I am pretty sure excavation goes to building… as you are preparing the land to build… think of it this way without digging out the foundation there would be no building… so it is part of building cost…. hopefully someone else will also chime in

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

[mckan514w]

UGH on IFRS seriously why do they test this when it looks like convergence is never going to happen! So happy you got lucky Ascott- so far I have yet to see an exam that avoids my weak areas- in fact they all seem to want to highlight them ha ha ha ha meaning I am DESTINED to get a DRS and an IFRS and GOVT SIM…. lol…

Almost at the review stage 21 questions on Ninja that I have missed completely… keep plugging away…

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

[AScott89]

You will get there @mckan! The DRS sims won't be on the exam until July 2016 apparently. So there's one worry gone at least. Word of advice? Know government journal entries for different funds, like the general fund. *whistles innocently*

BEC-65
AUD-72(8 '14); 68(11 '14)
FAR-
REG-

[mtaylo24]

I feeling a little funky today, not sure if its the consistent 50/60s that I'm pulling in Ninja, or if its the paragraph questions getting thrown at me in Gleim 🙁 Praying for a turnaround

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)

[AScott89]

Don't feel bad @mtaylo. I had a 71% average in Ninja going into the exam and was pleasantly surprised by how much I knew today. Man I really hope I didn't just jinx myself.

BEC-65
AUD-72(8 '14); 68(11 '14)
FAR-
REG-

[jonm857]

thanks for the quick replies. I am taking FAR on Wednesday. for the past week I've done nothing but read the book and make notecards. focusing on the theory instead of the application. if I fail, I lose my beloved BEC.

B - 81
A - 87
R - 73
F - July 5th

[AScott89]

Godspeed then @jon! Losing a pass credit would suck. Make sure you know journal entries. They help a lot. Running through MCQs can help drill the theory home as well.

BEC-65
AUD-72(8 '14); 68(11 '14)
FAR-
REG-

[mckan514w]

Good Luck @jonm857! I shiver thinking about losing my beloved BEC so extra fingers crossed for you.

Hang in there @mtaylo!!! We still have 10 days! We just need to grind it out…

@Ascott 😉

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

[jonm857]

Thanks for the good wishes! I don't feel prepared but I know I will bring a good fight. Will need some luck, that is for sure.

B - 81
A - 87
R - 73
F - July 5th

[emichelle2321]

Ok – I need help. Equity Method – the problems I am struggling with relate to calculating Investment income, which SHOULD be easy, but I'm running into all these little nuances.

Why do you sometimes subtract the dividends paid from Net Income before calculating your share of earnings? Does it have something to do with the type of dividends being paid? (preferred vs common)…keep getting these wrong and I feel like a dummy.

[A1lessio]

Can someone break this down for me: The only two Journal entries below I understand are the cash and bonds payable. I know that the discount is a plug, but how did they get $200,000 for APIC Warrants?

On December 31, Moss Co. issued $1,000,000 of 11% bonds at 109. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitled the bondholder to purchase one share of $5 par common stock for $25. Immediately after issuance, the market value of each warrant was $4. On December 31, what amount should Moss record as discount or premium on issuance of bonds?

a.
$200,000 discount.

b.
$40,000 premium.

c.
$110,000 discount.

d.
$90,000 premium.

Explanation

Choice “c” is correct

Cash $ 1,090,000 DR
Discount on bond 110,000 DR
Bonds payable $ 1,000,000 CR
APIC – Warrants 200,000 CR

AUD (08/02/2016)

[Author]

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