[Anonymous]

Derivatives and hedging (especially those problems with foreign currency) are difficult topics for most people. I understand the concepts but I often get the numerical problems wrong, no matter how many of them I do. I don’t know if there are some shortcuts to getting the problems right – I’ve tried to devise some of my own but I usually end up with the wrong answers. I’m using Roger at the moment. There are no TBS questions for Derivatives/hedging. I’m just wondering if I should skip this topic and move on because if it is not heavily tested, I don’t want to waste any more time on it.

[monikernc]

i don't know what section you are studying for but those topics are fair game for aud, bec and far.
if it is holding up your study schedule move on and come back to them. post a question to the exam section study group that applies to you and see if others can help you make them click.

AUD - 93
BEC - 82
FAR - 76
REG - 88

How have you been?
Ninja book and MCQs and the forum, all first try! 2016
Licensed State of Montana April Fool’s Day 2020
State of Colorado June 2020 - AICPA Ethics 93
Experience was the worst part of the journey for me. You?
If you want things to change you have to do something different.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[hasy]

I have no idea who told that there aren't questions on them, bc like monikernc said, they're fair game. At least try to understand them. Those who tend to skip sections have those questions end up on their exam.

AUD - 83
BEC - 80
FAR - 83
REG - 78

BEC - 80 (Roger + NINJA MCQ + WTB)

FAR - 72; 83 (Roger + NINJA MCQ)

AUD - 83 (Roger + NINJA MCQ + WTB)

REG - 52; 78 (Roger + NINJA MCQ)

Ethics - 68, 96 (how I dislike you)
-
This forum is more addictive than drugs. Still returning after licensure.

Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved - Helen Keller

-

BEC 80 (10/23/15)
FAR 72 (4/2/15); 83 (7/11/16)
REG 52 (4/28/15)
AUD (9/9/16)

Roger + NINJA MCQ + WTB

[Anonymous]

I'm working on FAR right now. I didn't realize they also apply to AUD and BEC – well I guess AUD I can sort of see, if you're doing an audit of some company which uses hedge/deriv.

Here is my issue – and this applies to a number of difficult topics. I learned them one way in school. I'm having to learn/re-learn them “AICPA style” while I am studying for the exam.

That's a good idea about posting in the FAR forum. I'm thinking that they are not tested as much as something like stockholders equity/govt. acct./business combinations, on FAR. But, I definitely need some strategy for how to get through them without wasting 5 minutes on one MCQ.

[Anonymous]

@hasy, not that there aren't questions on this topic – just that it might not be heavily tested on.

[Hurricane]

I didn't get any questions on derivatives on my FAR exam. There were a crap ton of questions on Gov, NFP, and IFRS though.

AUD - 97
BEC - 88
FAR - 88
REG - 82

AUD - 96
BEC - 88
FAR - 88
REG - TBS

[monikernc]

whenever i hit a wall on a topic it was youtube to the rescue – search for a video that explains them and see if that helps. worked wonders for me.
exam content varies so who knows what you will see.
but everytime someone asks a question like this i am reminded of the sign in the dentist's office that tells us to only brush the teeth we want to keep.
skipping topics presented in your review materials is a risk. these exams are really good at exposing and exploiting our weaknesses.
do what you can to make it click but keep moving forward and revisit it and see if it gets easier to understand as you master other material.

AUD - 93
BEC - 82
FAR - 76
REG - 88

How have you been?
Ninja book and MCQs and the forum, all first try! 2016
Licensed State of Montana April Fool’s Day 2020
State of Colorado June 2020 - AICPA Ethics 93
Experience was the worst part of the journey for me. You?
If you want things to change you have to do something different.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[hasy]

I'm just saying….. (at the risk of exposing too much). They do come up, especially in sections when points matter.

AUD - 83
BEC - 80
FAR - 83
REG - 78

BEC - 80 (Roger + NINJA MCQ + WTB)

FAR - 72; 83 (Roger + NINJA MCQ)

AUD - 83 (Roger + NINJA MCQ + WTB)

REG - 52; 78 (Roger + NINJA MCQ)

Ethics - 68, 96 (how I dislike you)
-
This forum is more addictive than drugs. Still returning after licensure.

Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved - Helen Keller

-

BEC 80 (10/23/15)
FAR 72 (4/2/15); 83 (7/11/16)
REG 52 (4/28/15)
AUD (9/9/16)

Roger + NINJA MCQ + WTB

[Anonymous]

@Hurricane, that is interesting about IFRS being heavily tested. I've heard from people that it gets no more than about 10%…but maybe that has changed. I tend to skim over the IFRS stuff. I read it once and then I don't come back to it.
Maybe I should re-read it.

@monikernc, I wouldn't skip a topic. But, coming back to it is probably the best. Roger does not explain some topics well and tends to skim over some things very quickly, and this is one of them. Youtube can be good though…I'll have to see if they have any for derivatives/hedging.

[Hurricane]

I had several questions on IFRS, but I wouldn't spend too much time studying it. IFRS is generally very similar to US GAAP. I just took the approach that I would answer IFRS questions as if it were GAAP, and I passed with a score in the high 80's.

AUD - 97
BEC - 88
FAR - 88
REG - 82

AUD - 96
BEC - 88
FAR - 88
REG - TBS

[Anonymous]

@hurricane good strategy on IFRS. You are lucky you had no questions on hedging/derivatives but since the questions are pulled from a huge pool of questions where literally anything is possible, I could be flooded with derivatives questions whereas someone else could be flooded with govt. accounting.

[monikernc]

the exam disclosure is just not cool.

AUD - 93
BEC - 82
FAR - 76
REG - 88

How have you been?
Ninja book and MCQs and the forum, all first try! 2016
Licensed State of Montana April Fool’s Day 2020
State of Colorado June 2020 - AICPA Ethics 93
Experience was the worst part of the journey for me. You?
If you want things to change you have to do something different.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Anonymous]

Dollar value LIFO is a walk in the park compared to (belch) Derivatives. Cash flow and FV hedges can often go both ways – i.e., what could conceivably be a cash flow hedge could also be a fair value hedge or vice versa (and you have to be able to identify the most likely ones for CF hedge or FV hedge.) Pray that there are only easy questions, or no questions, on derivatives.

[Trele6]

You can see these on SIMs also in FAR, better know the journal entries on how to do them.

B - 80 Jun16
A - 74 Aug16, 77 Oct16
R - 87 Nov15
F - 79 Apr16
Ethics - 98 Nov16
Licensed in New Mexico Dec16

First go at the CPA! Only using Becker
Reg / Nov 2015 - 87
Far / Apr 2016 - 79
Bec / May 2016 - 80
Aud / Aug 2016

[Anonymous]

@trele6 I don't think they appear on SIMs hardly at all. I've never talked to anyone who had a SIM on it. The journal entries are not hard. What is hard is distinguishing one from the other. As many sources have said about this topic, it is often very confusing for most people and if you don't pick the right one (CV or FV) the accounting can really go haywire. The AICPA may have given some SIMs on this topic but if a lot of people were missing them, they probably took them out of the pool of questions. Wouldn't you love to be a test question writer for the CPA exam? I know I would! The questions I'd write would all be do-able by the average test-taker. I'll be happy if I get 1 MCQ on this topic, or none. If there ends up being a SIM about it, I'm probably screwed unless it's really easy.

[Trele6]

@crazyleon, you just talked to someone who had a SIM on it.

B - 80 Jun16
A - 74 Aug16, 77 Oct16
R - 87 Nov15
F - 79 Apr16
Ethics - 98 Nov16
Licensed in New Mexico Dec16

First go at the CPA! Only using Becker
Reg / Nov 2015 - 87
Far / Apr 2016 - 79
Bec / May 2016 - 80
Aud / Aug 2016

[Author]

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