[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

[Josh]

Hi, Q4 FAR? I wonder when Q1 forums start? After the 10th? I'm scheduled now for the 9th of January while I wait for my Auditing results on the 16th I imagine like everyone taking their exams after the 1st.

[Josh]

@mckan I can relate to that. My auditing sims were tough especially the DRS. DRS are my new bane. It's still possible I believe. You don't know until they post?

[livealittle]

good luck everybody, score release tonight!

BEC - 8/8/16
REG - 66, 77
AUD - 81
FAR - 9/8/16

[AScott89]

I'm just going to wait until I wake up tomorrow because I really don't want to stay up that late. If I failed I'd be too upset to sleep and if I passed I'd be too excited to sleep. Damned if I do, damned if I don't. Hopefully I'll be able to sleep tonight.

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

[mtaylo24]

Score release tonight? Noice!! I always get inspired by those (other than the ones I partake in). Good luck to those waiting!!!

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)

[Anonymous]

Mtaylo24

Unrecognized prior service cost from CURRENT period amendments goes straight to OCI on the balance sheet(notice how it said the following data pertains to the PBO so this means that the unrecognized prior service cost was in the current period) so that is Unrecognized Prior service cost 12000 liability + 8000 pension expense + 5000 amortization of unrecognized prior service service cost not in pension expense yet (12000-8000)= 25000

Iono if that is actually how they found the answer but that my best take at it

[emichelle2321]

For the sake of everyone lets all try to be positive in these last couple days before the exam! I bet you know more than you realize, just take a deep breath. Nothing we can do now but just continue to review and hope for the best. Everyone has worked hard and getting into a panicked/negative mood will only scree you over at this point. Not trying to act holier than thou haha, but I dont like people in here already talking about a retake! Cross that bridge when/if you have to but for now there is still a shot.

[jeff]

Test Your Might

4 MCQ sections will be given away …

2 on Facebook and 2 in this forum post (https://www.another71.com/cpa-exam-forum/topic/test-your-might-far-mcq-ninja-mcq-giveaway-x-4/)
Feel free to post in both places for max chances to win.

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

[cdn]

Hi all,
I have my FAR on Dec 8; feeling unprepared but seems like most of you. I am giving a try because you just never know what you can get and I have some weak and strong points with material.
I am going through 2016 FAR released questions and came across one that drives me crazy. Q#31- interest capitalization for construction in progress. It does calculation based on weighted average of accumulated expenditures. Can some help to solve it?

A company with a June 30 fiscal year end entered into a $3,000,000 construction project on April 1 to be completed on September 30. The cumulative construction-in-progress balances at April 30, May 31, and June 30 were $500,000, $800,000, and $1,500,000, respectively. The interest rate on company debt used to finance the construction project was 5% from April 1 through June 30 and 6% from July 1 through September 30. Assuming that the asset is placed into service on October 1, what amount of interest
should be capitalized to the project on June 30?

A. $11,666
B. $18,750
C. $75,000
D. $90,000

[ECU CPA to be]

D. 21,800

AUD - 76 (2/11/16)
REG - 79 (4/5/16)
FAR - 67 (6/7/16)
BEC - ? (7/21/16)

[mckan514w]

A. 11,666

You need to take your Weighted Avg. of accumulated expense so :
500X(3/12)= 125
*300x(2/12)=50
*700X(1/12)=58.333
For a total Weighted Ave of 233.333 X5% since it is only asking you for the amount through June.

* it gives you the cumulative so you need to subtract out the prior months expenses

GOOD LUCK

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

[Anonymous]

Capitalized interest is on the construction borrowings using rate on borrowings and the excess of WAAE over the construction borrowings using the interest rate on the other borrowing ( if one other) (use weighted average if 2 other borrowings)

use the lower of actual interest cost incurred or capitalized interest,

Total interest cost incurred -capitalized interest = interest expense

[cdn]

Mckan but why we don't deduct from $1,500,000 – 800 and 500? You mentioned previous month but deduct just one prior month. Is there a reason for it?
Thank you guys – feel so good that there is someone with the same struggle

[cdn]

Mckan – sorry got it; you just take the difference of last two.
Gosh – so afraid of tomorrow; brain wash …..

[mckan514w]

Good Luck Capri! And everyone else sitting tomorrow (emichell??- no you moved didn't you :-), Charile54??? you both pop to mind) anyway brain is shot GOOD LUCK TO EVERYONE TOMORROW!

And Good Luck to everyone waiting on score release tonight!!!!!

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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