[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]

Great idea!!!

Answer to yours is TRUE. Interim reporting is required by both.

Question: A company sells inventory for $44,000 to be paid in 11 months. The stated annual interest rate to be paid during this period of time is 2 percent although a reasonable annual interest rate is actually 9 percent. The sales revenue should be recorded at the present value of the cash flows discounted at a 9 percent annual rate for this 11 months. True/False and Why

[Anonymous]

Great idea!!!

Answer to yours is TRUE. Interim reporting is required by both.

Question: A company sells inventory for $44,000 to be paid in 11 months. The stated annual interest rate to be paid during this period of time is 2 percent although a reasonable annual interest rate is actually 9 percent. The sales revenue should be recorded at the present value of the cash flows discounted at a 9 percent annual rate for this 11 months. True/False and Why

[Study Monk]

Interim accounting is required by the SEC not GAAP or IFRS. Both GAAP and IFRS provide guidance on Interim accounting.

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]

Interim accounting is required by the SEC not GAAP or IFRS. Both GAAP and IFRS provide guidance on Interim accounting.

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"

[Anonymous]

In rereading the Becker Outline notes…I agree with GAAP not requiring it, but it does state “Under IFRS, Interim Financial Statements are required to include, at a minimum 1. Condensed balance sheets 2. condensed statements of comprehensive income 3. condensed statements of changes in equity and 4. condensed statements of cash flows.”

[Anonymous]

In rereading the Becker Outline notes…I agree with GAAP not requiring it, but it does state “Under IFRS, Interim Financial Statements are required to include, at a minimum 1. Condensed balance sheets 2. condensed statements of comprehensive income 3. condensed statements of changes in equity and 4. condensed statements of cash flows.”

[Anonymous]

So does that mean they aren't required by IFRS, but if they are done they have to have those 4 reports, so that's the “guidance” part you are referring to Study Monk?

[Anonymous]

So does that mean they aren't required by IFRS, but if they are done they have to have those 4 reports, so that's the “guidance” part you are referring to Study Monk?

[SpartanCPA]

“Interim financial reporting is required under US GAAP and IFRS.”

The question is a little bit vague and can have multiple answers. If the company is a publicly traded company, then yes interim financial reporting is required (per the SEC).

AUD - 01/18/14 - 81
BEC - 05/29/14 - 85
FAR - 07/18/14 - 81
REG - 11/18/14 - 80

Becker CPA Review
NINJA Audio
Michigan State University

[SpartanCPA]

“Interim financial reporting is required under US GAAP and IFRS.”

The question is a little bit vague and can have multiple answers. If the company is a publicly traded company, then yes interim financial reporting is required (per the SEC).

AUD - 01/18/14 - 81
BEC - 05/29/14 - 85
FAR - 07/18/14 - 81
REG - 11/18/14 - 80

Becker CPA Review
NINJA Audio
Michigan State University

[jeff]

Name the two PP&E Valuation methods allowed under IFRS.

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

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

[jeff]

Name the two PP&E Valuation methods allowed under IFRS.

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

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

[Anonymous]

Mamabear, I guess it would be the reasonable annual rate of 9%. I am not sure why. I just wanted to eliminate stated rate.

[Anonymous]

Mamabear, I guess it would be the reasonable annual rate of 9%. I am not sure why. I just wanted to eliminate stated rate.

[Amay]

I'm going to say False, Mamabear, because the lower rate, 2% should be used.

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

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 🙂

[Author]

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