[Tootsie]

So I thought it could be fun to have a game where we post FAR questions to help us study and if you know the answer, post it and ask another question. I did this for AUD and BEC as well. 🙂 I’ll go first.

True/False

Interim financial reporting is required under US GAAP and IFRS.

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[Anonymous]

I am sad because I have no idea what you guys are talking about with the REQ#1, etc. Must have missed that in my studies. 🙁

[Tootsie]

@CPAMommyof3, I think that's in the Standard Setting, Income Statement, and Reporting Requirements chapter (F1 in Becker).

When talking about the income statement, what is IDE and how are they reported for tax purposes?

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[Tootsie]

@CPAMommyof3, I think that's in the Standard Setting, Income Statement, and Reporting Requirements chapter (F1 in Becker).

When talking about the income statement, what is IDE and how are they reported for tax purposes?

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[Amay]

I = Income from Continuing Operations, D = Discontinued Operations, E = Extraordinary items. I = gross and DE = net of tax.

Describe the 3 different scenarios of recording gain under a sales leaseback under GAAP and how you record the gain under each scenario (hint: defer/recognize immediately?)

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

I = Income from Continuing Operations, D = Discontinued Operations, E = Extraordinary items. I = gross and DE = net of tax.

Describe the 3 different scenarios of recording gain under a sales leaseback under GAAP and how you record the gain under each scenario (hint: defer/recognize immediately?)

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Anonymous]

@Amay: Q: What are the formulas for calculating goodwill and NCI under both GAAP and IFRS?

IFRS uses Full GW Method and Partial GW Method.

US GAAP uses only Full GW Method.

Don't IFRS and US GAAP use the same formula for Full GW Method? I think so. Please confirm.

Formulas:

Full >

NCI = FV of Subsidiary x NCI%

GW = FV of Subsidiary – FV of Subsidiary's NA [Net Assets]

Partial

NCI = FV OF Subsidiary's NIA [Net Identifiable Assets] x NCI%

GW = Acquisition Cost – FV of Subsidiary's NAA [Net Assets Acquired]

If IFRS uses 2 methods, partial and full GW method while US GAAP uses only full GW method, what is the method MORE preferred by IFRS.

(Yes, I know. This question is chicken:)

P.S. I typed the formulas above without copying from my cheat notes. Yeheyy!

[Anonymous]

@Amay: Q: What are the formulas for calculating goodwill and NCI under both GAAP and IFRS?

IFRS uses Full GW Method and Partial GW Method.

US GAAP uses only Full GW Method.

Don't IFRS and US GAAP use the same formula for Full GW Method? I think so. Please confirm.

Formulas:

Full >

NCI = FV of Subsidiary x NCI%

GW = FV of Subsidiary – FV of Subsidiary's NA [Net Assets]

Partial

NCI = FV OF Subsidiary's NIA [Net Identifiable Assets] x NCI%

GW = Acquisition Cost – FV of Subsidiary's NAA [Net Assets Acquired]

If IFRS uses 2 methods, partial and full GW method while US GAAP uses only full GW method, what is the method MORE preferred by IFRS.

(Yes, I know. This question is chicken:)

P.S. I typed the formulas above without copying from my cheat notes. Yeheyy!

[Study Monk]

Thanks toosie!

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

Thanks toosie!

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Amay]

@Amor Good job! That's what I have in my notes. As far as full goodwill method formula being the same as GAAP as for IFRS, I believe yes.

Answer to your Q: The partial goodwill method is the preferred method under IFRS, but entities can elect to use the full goodwill method on a transaction-by-transaction basis. OK, I cheated on this one because did not know :/

I still have a couple of questions up here unanswered, take your pick:

Q1: What are the two methods used for convertible bonds and which one is not considered GAAP?

Q2: Describe the 3 different scenarios of recording gain under a sales leaseback under GAAP and how you record the gain under each scenario (hint: defer/recognize immediately?)

This game definitely breaks up my boring study routine 😉

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

@Amor Good job! That's what I have in my notes. As far as full goodwill method formula being the same as GAAP as for IFRS, I believe yes.

Answer to your Q: The partial goodwill method is the preferred method under IFRS, but entities can elect to use the full goodwill method on a transaction-by-transaction basis. OK, I cheated on this one because did not know :/

I still have a couple of questions up here unanswered, take your pick:

Q1: What are the two methods used for convertible bonds and which one is not considered GAAP?

Q2: Describe the 3 different scenarios of recording gain under a sales leaseback under GAAP and how you record the gain under each scenario (hint: defer/recognize immediately?)

This game definitely breaks up my boring study routine 😉

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Anonymous]

@Amay, your questions are hard and long that I have to cheat to be able to answer them. They are like questions from SIMs. LOL.

When you get your license, you can land a job at AICPA and become an evil CPA examiner.

[Anonymous]

@Amay, your questions are hard and long that I have to cheat to be able to answer them. They are like questions from SIMs. LOL.

When you get your license, you can land a job at AICPA and become an evil CPA examiner.

[Anonymous]

Question:

A company intends to sell half of its investment in B common stock NEXT YEAR. The investment is classified as trading securities. True or False?

[Anonymous]

Question:

A company intends to sell half of its investment in B common stock NEXT YEAR. The investment is classified as trading securities. True or False?

[Author]

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