[jeff]

NINJA Study Notes, Flashcards, and Audio: https://www.another71.com/products-page/

Wiley Software: https://www.another71.com/wiley-cpa-software/

AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[jbeans2009]

I took the final exam for reg the night before my reg exam, and I failed it. I passed my exam the next day, though. But it did make me more panicky then necessary. I never took a final exam after that. I used the progress exams to see how I was doing but I think the final exams are kind of weird and do not at all reflect the actual exams.

[Anonymous]

You really want to try to nail down the govt and nfp stuff before you take the exam. Just those two sections are 25% of the test. Its the best “bang for your buck”.

[IwannaBaCPA]

I am taking FAR on 5-26 at 8am…horrible time, but at least I will be able to get on with my day after it is over…

I am really worried about the TBS because this is my first section with TBS. I took BEC on 4-16 and it went horribly 🙁 I just couldn't get anything straight in my head and I fear the same thing will happen for FAR. I did change my strategy this time around and took Jeff's advice of watching all videos first and then taking notes and working MCQ. I have completed the videos and am about half way through the taking notes/MCQ now. I feel a ton better about my method this time around, but there is just so many little exceptions and details to keep straight and that is where I am still a little shaky. I will be going over Gov and NFP last, but I am thinking that is the best thing so that I can keep that part fresh in my mind. Any tips for nailing the TBS on the exam? I am not confident at all with those 🙁

Thanks and good luck to everyone taking it this window! Praying for a 76 myself!

BEC: 79 - April 2011
FAR: 78 - May 2011
AUD: 81 - May 2012
REG: 79 - October 2012
Ethics: Passed - March 2013
I am finally DONE!

[Anonymous]

I felt like the tabs weren't too bad, and were pretty similiar to what i had seen in my wiley materials. Nothing was completely unfamiliar, I still had to guess a little bit, but it wasn't like REG where I felt that I had never even heard of it before. Make sure you practice lots of MCQ's that require calculations and feel comfortable with those, also make sure you are comfortable with the journal entries to record different types of transactions and allocations.

[Anonymous]

I have a question that I just cant figure it out and it is bugging me. It involves a sim for Becker in the Final Review. Here are the facts: Half Corp bonds were reclassified to Held to Maturity on Jan. 1 Year 2. Were purchased Jan 1 Year 1 at part with a coupon rate of the debt at 10%. Bonds will mature Dec. 31, Year 5. The company uses the Straight Line method of amortization.

The bonds have an original cost of 100k, FV of 90 k at Year 1 Fiscal year end, and FV of 95k at year 2 fiscal year end 2 of 12/31/2.

It then asks for the amount of investment income and amount of OCI recognized as a result of the marketable securities.

My question is, they state the answer involves 2,500 recognized in both. I know you calculate it by 100k -90k then divide by 4, but why both? It seems as though it double counting earnings and inflating stock holders equity to me…

I know the FV at the end of the year is 95k, but it was changed at the beg of the year to held to maturity, so therefore for year 2 would only increase the value of amortized costs to 92,500 on the balance sheet, where as a 5,000 increase would be reflected in stockholders and then you are unbalanced. Is this an error or am I missing something?

Help is much appreciated as not being able to get my head around this is driving me nuts!!!

[jbeans2009]

The 1/2 of bonds that remained as AFS was sitting as $45,000 and Jan 1 and had to be written up to $47,500 at Dec 31, and therefore, $2,500 was recognized in OCI. I'm having trouble with the second part. The 1/2 that became held to maturity was valued at $45,000. I don't remember the rule exactly but I believe that the $5,000 in OCI needs to be amortized over the 4 remaining years to write the value back up to $50,000. That would be $1,250 a year. Not sure what I missed there. Could be I missed some of the details in your question.

[kb24]

I'm not completely clear from your post what the answer is, but I think that you may be taking the wrong tack. My understanding is that the amortization is only a factor for HTM securities if they are purchased at a premium or discount. When 1/2 of the trading securities are reclassified as trading securities, there is an unrealized loss of $5K recorded as OCI. The increase in FV at the end of year 2 is included in earnings. I'm thinking that this entry will also include some adjustment to the OCI. I'd verify exactly what the JE would be, but I'm out of town and away from my books.

FAR 4/1/11 - 89
AUD 4/15/11 - 85
REG 4/29/11 - 80
BEC 5/13/11 - 85

[jbeans2009]

I don't remember exactly, how do you reclassify from AFS to Held to Maturity?

[kb24]

OK I went back and realized I'd misread your question the first time. I thought it was going from HTM to trading. Is the original classification trading or AFS? If it's AFS, has the firm elected to use the FV option? I don't see how earnings would be affected unless one of these is true. As far as I know, jbeans2009's answer is correct regarding both the HTM bonds no matter what and the AFS bonds if the FV option isn't elected. I also don't see how the change is HTM bonds is anything but 1250. Have you checked the Becker updates to see if there was an error in the answer? It's been known to happen.

jbeans2009, in answer to your question about going from AFS to HTM, if the FV option isn't elected any unrealized loss or gain at the time of the reclassification is recognized in OCI. That is then amortized over the remaining life of the bond. As I said, I misread the original question completely.

FAR 4/1/11 - 89
AUD 4/15/11 - 85
REG 4/29/11 - 80
BEC 5/13/11 - 85

[Whenindoubt]

I took FAR on 5/17 and really hope I passed as my brain is in purge mode now!

Over the past three months I have been reviewing all the Becker materials. I'm a major procrastinate and cram kind of person and work best under pressure so I really didn't commit anything to memory until a week before the exam – hope that wasn't a downfall! Fortunately enough for me I took a week off of work and relinquished all my parental duties to my husband and mother. With out a doubt, you must be comfortable with all the material presented in the Becker review. I feel like the Becker review course did a good job covering all the relevant topics and i wasn't blindsided by anything. It took me a little over 2 hours to complete the MC and then the remaining time period I spent on Sims. I had a hard time figuring out what the Sims were asking for at times, but I had enough time to really think about the questions. I was really worried about time since I've seen so many postings on lack of time for Sims being an issue. No breaks for me!

I was really lucky to be able to pretty much ignore the Govt/NFP review sections since I work in that field, but I had to spend a lot more time on DTA/DTL, EPS and memorizing how to value certain transactions whether it be PVFCF, FV, etc.

Good luck to everyone taking their exam in the next couple of weeks. I'll be resting easy for a week and then it's on to REG for me. No pain no gain, right?

BEC: 75 11/8/10
AUD: 89 2/22/11
FAR: 78 5/17/11
REG: 72, 83 10/17/11
DONE!!!!

[yankeeaccountant]

@whenindoubt,

Congrats on being done with FAR. I am sitting on 5/30. This will be my third swipe with FAR. I used Becker on the first try and got a 70 and then Yaeger in Feb and got a 73. I am using the Yaeger cram and hoping this works. It definitely feels like things are making more sense this time around. I am studying for this in 3 weeks time, so I am kinda like you cramming for this exam. I am most concerned with time. I am really going to have to work at it to get the three testlets done in 2 hours. How conscious of the time on the mcq's were you? Was it a stretch to hit this, did you review any questions or just move on?

Best of luck to you–you are halfway there!! yahoooo! I am hoping FAR is more successful for us this window.

[Whenindoubt]

@yankeeaccountant –

My strategy going into the exam was to make sure I had at a minimum of one hour to complete the sims (knowing very well that would need more than an hour to complete them). However, i kept in mind the 60/40 ratio of exam weight and didn't want to rush the MC just to get to the sims. I usually had about 5 questions per testlet that i wasn't 100% on so i answered and flagged them. I went back for one final review and unless i had a really good reason i didn't change my answer.

I didn't try to finish quickly, but I swear I have ADD so if i take too long my mind wanders! Good luck with your studying – I hate the final cram week the most, but it's the only way i can focus. I need pressure otherwise i get lackadaisical. I'm very fortunate that i can isolate myself from the rest of the world for the final week and just focus on studying.

BEC: 75 11/8/10
AUD: 89 2/22/11
FAR: 78 5/17/11
REG: 72, 83 10/17/11
DONE!!!!

[yankeeaccountant]

@whenindoubt

thanks for the info. I remember the first time I took FAR, I didn't finish the sims (2010 format) and in February I was fine on time. I actually scored well on the sims, it was the mcq's that got me. I have trouble stopping to read the question !! That is great that you can focus on the exam. I am not working right now so it seems like I should be able to focus on just this. But, my son came home from his first year in college and it is throwing me off. I am trying to keep him on task in getting a job, my other son is in the midst of finals, so I am trying to keep him on task-while it seems like everything is breaking in my house and I have had service people in and out the last 3 days . UGH. I also think since this is my 3rd exam this window that I am burnt. Definitely feeling the pressure since I am not working to get everything passed. Like as if I can put a pretty bow on the package and be done. Well, I certainly hope so!

Well enough blabbing, I have to get back to EPS. Best of luck to you.

[MercyGrace]

Hey All,

Can anyone shed light on why this question in Becker uses July?

Dunne Co. sells equipment service contracts that cover a two-year period. The sales price of each contract is $600. Dunne's past experience is that, of the total dollars spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. Dunne sold 1,000 contracts evenly throughout the current year. In its December 31 balance sheet, what amounts should Dunne report as deferred service contract revenue?

a) 540,000

b) 480,000

c) 360,000

d) 300,000

The answer is b according to Becker and here are the details:

When service contracts are sold, the entire proceeds are reported as deferred revenue. Revenue is recognized, and deferral reduced as the service is performed. Since repairs are made evenly(July 1 is average date) only 1/2 of the 40% of repairs will be in the current year.

Current year deferral($600 x 1000) $600,000

Earned in the current year ($600,000 x 40%x1/2 (120,000)

Deferral 12-31 480,000

My question of my friend who is studying asks why is July the average date?

Thanks yall

BEC - 75 (Prayed Hard)
AUD - 85 (Thanking God!)
REG - 77 (Yes, Lord!!)
FAR - 4/20/12

[magster]

since the sales were evenly throughout the year, the average date would be the midpoint of the year (12 month/2 or the middle of the year = 1 July). I always have problems with the concept as well since it does not seem to REALLY be correct but I guess it has to be computed and it is the logical date. Hope it helped.

REG - Passed
FAR - Passed
BEC - Passed
AUD - 2-25-12 PASSED - DONE !!!!!!!! WOOHOO

*** One day I will get my life back.... maybe today is the day ***

[Author]

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