[jeff]

SO I know every test is different but does anyone have any insight on what has been heavily tested recently? I take the exam Monday and I need to narrow my focus….Thanks!

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

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

[rbozung]

@JulieMiddle. Wow. That is super condensed…. I keep pouring money into study materials and just want to be sure it is worth it. Thanks for your perspective! I like to have as many possible ways to absorb material as I can for when I get tired of one method (doing questions, reading notes, writing notes, watching lectures). I even found a note card in my bed once! Debating. Good luck on 10/20!

BEC - Passed
AUD - Passed
FAR - 10/28/14 (waiting results)
REG - Passed

[masa_inn]

I hope I'm posting this question to the right section of the forum.

I struggle with so called basic concepts: reconciling cash, converting cash to accrual basis; characteristics of financial information – all the things that are supposed to be simple.

I know I'm not stupid. Do well with pensions, deferred taxes, bonds. But it's like I have a mental block with basic concepts.

So far, I've been working MCQs and referring to my old notes from college classes and textbooks. Not helping much. What else can I do?

Any advice would be greatly appreciated.

FAR
AUD 02/10/14 passed
BEC
REG

Roger, WTB, Ninja materials

[Blue]

[Anonymous]

How do you calculate?

Giddens Company adopted the dollar-value LIFO inventory method on December 31, Year 1. On

December 31, Year 1, Giddens’ inventory was in a single inventory pool and was valued at $400,000

under the dollar-value LIFO method. Inventory data for Year 2 are as follows:

12/31 Year 2 inventory at year-end prices $550,000

Price index at 12/31 Year 2 (base year Year 1) 110

Giddens’ inventory at dollar-value LIFO at December 31, Year 2 is:

a. $440,000

b. $510,000

c. $500,000

d. $550,000

[moreinfo2013]

@CPA2014dream

Is the answer C?

[Anonymous]

CPA2014Dream – I got B

[Juliemiddle]

@CPA2014 – The answer should be B, right?

-> Convert to Base Yr. Dollars: $550k/1.10 = $500k

-> Find Current Yr. Layer: $500k – $400k = $100k

-> Revert Current Yr. Layer to Current Yr. Dollars: $100k x 1.1 = $110k

-> Add to Previous Yrs.' Layers to find Ending Inventory at DV LIFO: $400k + $110k = $510k

AUD: 84 - Oct. 2013
BEC: 83 - Feb. 2014
REG: 91 - May, 2014
FAR: 68, 96 - Oct. 2014...DONE

CPAExcel, Ninja Audio (all sections)

[rbozung]

Hi, all. I am not following why this question using the accounting of Available for Sale securities (hence, unrealized gain/loss in OCI)? Isn't a long term investment held to maturity or is that only for something that has a final expiration date (i.e. 5 years bonds)? Please disregard that I got the question right 😉

Question #9

On January 2, 2004, Adam Co. purchased, as a long-term investment, 10,000 shares of Mill Corp.'s common stock for $40 a share.

On December 31, 2004, the market price of Mill's stock was $35 a share, reflecting a temporary decline in market price. On December 28, 2005, Adam sold 8,000 shares of Mill stock for $30 a share.

For the year ended December 31, 2005, Adam should report a loss on disposal of long-term investment of:

A. $100,000

B. $90,000

C. $80,000

The realized loss on the sale of available-for-sale securities is the decline in market value since the acquisition of the securities sold. The $80,000 loss equals 8,000($40-$30). The loss to the beginning of 2005 is unrealized and recorded in owners' equity.

D. $40,000

BEC - Passed
AUD - Passed
FAR - 10/28/14 (waiting results)
REG - Passed

[rbozung]

@Zubairs, the decomposition tool that CPA excel presents is a life saver as it comes to these questions! However, it requires me to draw it out and I cannot figure out how to do that on this forum and do not see an option for attachments 🙁 Please let me know if you think of a way for me to get it to you.

Thanks!

BEC - Passed
AUD - Passed
FAR - 10/28/14 (waiting results)
REG - Passed

[Juliemiddle]

@rbozung…

-> HTM Securities = Debt only (there is no “maturity” on equity)

-> Trading Securities = Debt & Equity, held for the near term only

-> AFS Securities = Catch-all for anything not HTM or Trading.

The question says it's a long-term investment…which rules out Trading.

It also says the investment is common stock = Equity…which rules out HTM Securities

AFS is the only option left 🙂

If you're using CPAExcel, go to the Investments lesson (No Significant Influence). There's a chart at the very beginning of the study text. I printed it out and hung it on my wall…it's got the quick & dirty of all you need to know for HTM/AFS/Trading.

AUD: 84 - Oct. 2013
BEC: 83 - Feb. 2014
REG: 91 - May, 2014
FAR: 68, 96 - Oct. 2014...DONE

CPAExcel, Ninja Audio (all sections)

[Juliemiddle]

What is a Contingent Liability vs. Provision in IFRS?

I think a Provision means that it's more likely than not to occur (>50%) and is estimable – accrue and disclose. But, I'm not sure what the IFRS threshold for Contingent Liability is.

AUD: 84 - Oct. 2013
BEC: 83 - Feb. 2014
REG: 91 - May, 2014
FAR: 68, 96 - Oct. 2014...DONE

CPAExcel, Ninja Audio (all sections)

[rbozung]

@Julie. I just got a question on this:

A provision that has a “reasonably possible” chance of requiring the outflow of benefits is treated as a contingent liability.

A provision is a present obligation. This is one of the ways a liability can be treated as a contingent liability under international standards. If the provision involved a probable outflow, then it would be recognized, but would not be a contingent liability.

Translation: probable outflow & measurable = recognized as a provision and not a contingent liability. reasonably possible outflow = contingent liability, not recognized.

Check out the third page: https://www.bdointernational.com/Services/Audit/IFRS/IFRS%20at%20a%20Glance/Documents/IAS%2037.pdf

BEC - Passed
AUD - Passed
FAR - 10/28/14 (waiting results)
REG - Passed

[rbozung]

I mean.. Just look at this question! I am having such a hard time keeping the inventory valuation methods straight (DV Lifo, DV Lifo retail, etc.) I know that many of you have it mastered. Does anyone have a trick? I am spending so much time on this and it never clicks because each time the question words it in a different way and I obviously have not mastered the concepts/reasoning behind these methods.

Question #7

A firm uses the dollar value LIFO retail method and has $2,000 in beginning inventory at retail at the beginning of the current year. The base year equivalent of this amount is $1,600. The base year index is 1.00. The beginning inventory reported in the Balance Sheet is $800. During the current year, the firm purchased $12,000 of inventory at cost and marked that up to $40,000. Sales for the year were $28,000. The relevant ending price index is 1.60. What amount does this firm report as inventory in its Balance Sheet at the end of the current year?

A. $4,286

B. $13,440

C. $4,232

This is a two-step process. First, DV LIFO is applied to retail dollars to determine the layer added in current-year retail dollars. Then, the FIFO cost-to-retail ratio (C/R) is applied to convert that layer to cost. Finally, this layer is added to beginning inventory at cost to yield ending inventory at cost. The calculation is:

EI retail, current index = $2,000 + $40,000-$28,000 = $14,000

EI retail, base = $14,000/1.6 = $8,750

Increase in EI retail, base = $8,750-$1,600 = $7,150

Increase in EI retail, current = $7,150(1.6) = $11,440

C/R (use FIFO, not LCM) = $12,000/$40,000 = .30

Increase in EI, cost = .30($11,440) = $3,432

EI, cost = $800 + $3,432= $4,232

D. $4,200

BEC - Passed
AUD - Passed
FAR - 10/28/14 (waiting results)
REG - Passed

[CPAfit]

@rbozung hey thanks a lot for the info and I don't mind sharing my e mail with you on here. If it's ok with you, then I can edit my post and remove it once you have it down.

AUD - 82
BEC - 78
FAR - 78
REG - 83

HIYA!

NH Licensed CPA - Jun 2018

[rbozung]

Sure, but I don't think you can edit if someone posts after you. Not sure, but I think that I tried before.

BEC - Passed
AUD - Passed
FAR - 10/28/14 (waiting results)
REG - Passed

[Author]

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