December 4, 2019 at 11:40 am #2828337jbParticipant
Any advice for how much not for profit material will be on the Far section?
Thanks in advanceDecember 4, 2019 at 11:51 am #2828352IcaritoParticipant
Enough to where you should not skip it and think you can still pass. It is an important topic that they love to test on (to make sure you didn't skip it). Government too.December 11, 2019 at 6:55 am #2839473inviteyouParticipant
On the Wiley CPAExcel video on Consolidation Less than 100% Ownership, does anyone know where the instructor got the FV adjustment to come up wit the NCI Equity? If you watch the video, at the 12 minutes and 13 second mark she has NCI Calculation.
S's Net book value $200,000
+FV adjustment $100,000
-Depreciation FV adjustment (5,000)
-Goodwill impairment 0
S's adjusted Net book value $295,000
xNCI percentage .20
NCI Equity 59,000
The problem reads: P (Passing) purchased 80% of S (Score) for $200,000 on January 1, 20×8. On that date, the net book vlue of S was $150,000, which equaled the fair value of all of S's assets and liabilities except for equipment. Equipment had a FV of $100,000 and a carrying value of $80,000. Any excess price was attributed to goodwill. The remaining life of the equipment was four years. The fair value of the noncontrolling interest was $50,000.
When I re-read the question, I thought, why wouldn't the fair value adjustment in the calculation above be $20,000 rather than $100,000, presuming that's where the instructor pulled the FV adjustment of $100,000. Can someone help explain?December 30, 2019 at 4:10 pm #2865681
Taking far again early Feb. 2020. Will I need new notes for far 2020? I have 2019.December 31, 2019 at 7:43 am #2866218
“When I re-read the question, I thought, why wouldn't the fair value adjustment in the calculation above be $20,000 rather than $100,000”
Because that $20K comes from the $!00K FV minus the $80K carrying value.
When you consolidate, you buy the FV of a company's Net Assets. “Net Assets” is just a fancy way of saying “assets minus liabilities.”
(Random sidenote: Anytime you see the word NET, that always means you're subtracting something, in this case subtracting FV of liabilities from FV of assets.)
Say you wanna buy that falafel stand down the street. You got their books and are trying to figure out their Net Assets. Their books will show carrying values/book values/other term that just means the same dang thing.
See where I'm going with this? Net assets ALREADY has that $80K carrying value in there. The FV adjustment is $20K because that's not in the books, you haven't included it in Net Assets yet. You didn't just get your assets and liabilities out of thin air, those are the numbers that were in the falafel stand's books. FV is often NOT included in the books, so you gotta add that extra amount to Net Assets.January 2, 2020 at 4:31 pm #2870091LeoParticipant
I need some motivation right now, I'm currently working at B4 as a senior auditor. I have been studying on and off for more than 2 years now. I have just used 3 months to go through all of the material and all Becker questions. I realized I forgot all of the stuff I learned from the beginning and buy season is about to start.I also couldn't find the exam date till April…
Can you guys advise me how to pass my first exam?
LeoJanuary 3, 2020 at 6:47 am #2871360
TBH, I'd recommend NOT studying right now.
Since you haven't passed your first exam yet, you're not under any time constraint. And since we've hit busy season, you're just not gonna find the time to study. Or if you do, you're gonna be too stressed and out-of-it to care and really retain the material.
Once things cool down and you have a little more time, get a study plan together to learn the material in say 2 months or less. I've found that over 2 months is when you really start to forget everything from the beginning. Plan ahead and just get through the material best you can.January 3, 2020 at 2:20 pm #2872056
I am attempting to schedule far exam. I am starting to restudy tonight. All the other times I failed I believe is because I did not give myself enough time to study and study well. This is 2020, new attitude, new approach. So is 6 weeks for far too little time? All of the early Feb dates seem to be taken (open the 14th and after). I'll have to drive two hours away to a prometric center. Tax season begins soon and I want to schedule before my book fills up with clients. I know it's my decision, but I'm asking for a little help.February 15, 2020 at 11:04 am #2932368
I'm studying for Far first time and using Gleim materials. Gleim has 20 Chapters and I am still working on Chapter 7th. So nervous and worried regarding test. All topics needs more time to understand and practice than Gleim suggested ( almost double). I am studying right now 2 hours in weekdays and 8 hours a day in Weekend. Not sure how I can complete all the chapters before April ? Also I have a 15 years gap between my college and CPA exam.
Can you guys advice me on FAR study ? It will be great help for me to stay on my goal.
Thank youFebruary 19, 2020 at 2:43 pm #2937585LoveParticipant
Finally, I am a part of the group to prepare FAR together. To commitment of the exam is my issue. Hope I will study with our group.
Thank you.February 19, 2020 at 7:47 pm #2938041
Hi PJ and Love, Welcome to the far study group. Far is a beast….it covers a lot of material and very easy to lose focus. I'm in and changed my test date from 2/28 to 4/4 because I have not been consistent in study and there were no seats March 5-10. So maybe it's good I couldn't get a seat. I will have time to get it together. I said in 2020 I was going to get this behind me. No more stalling, no more excuses, no more wasting money on test fees. This group doesn't post much, so I don't know how much feed back will come. I'm willing to prepare together as well. Let me know what we can do to get one another over the study hump. Bty: I am studying with Surgent. I guess the study time doesn't record unless you're doing mcq's. I'm not getting too much from the videos so I am going to try learning from the mcq's and do lectures when necessary. (More money down the drain 🙁 )February 19, 2020 at 8:24 pm #2938101BF98Participant
I would like to join in this FAR Study Group. I have Gleim and I figure I can just go through that but at the same time there's so much material I don't know where to start.February 21, 2020 at 7:57 am #2939973
Welcome to Far study group. I tried to follow Gleim study plan but is not working for me. I always behind the Gleim calendar and finally started my own manual study plan which taking more time to study.Trying to complete all 20 chapters till march 31st after that will review again at least 2 chapters in one day till April 15th.
Thank you.February 21, 2020 at 8:16 am #2940015February 21, 2020 at 2:13 pm #2940423
@Tina, I am using Surgent for far. I don't really know if I like it. I was drawn in with the readiness alert, the non-expiring usage until you pass, the assessment of strengths and weaknesses, and to possibly be prepared to take the exam in 3 or 4 weeks (I forget which one). At any rate, I was sold on the advertisements. I don't like the lectures. So far they do not help me answer questions confidently. So I am back to looking else where or googling certain topics to make sure I have a solid understanding. I thought my aggravation was because far has so much to cover, but now I don't know. I lose study time and energy trying to figure out how to best use this program. I am willing to keep trying to use it, but I think I'm going to go with learning from the mcq's and use the book and lectures if necessary.February 21, 2020 at 7:27 pm #2940855BF98ParticipantFebruary 21, 2020 at 11:06 pm #2941143February 22, 2020 at 10:06 am #2941368jdlParticipant
Hi everyone- taking the FAR section sometime in April. It will be my third time. I was wondering if someone can help me with the below journal entry? ( I dont understand the reduction in APIC for registering/ issuing equity securities- I thought it would lower the investment by $80,000). Thanks.
On August 31, 2005, Wood Corp. issued 100,000 shares of its $20 par value common stock for the net assets of Pine, Inc. in a business combination accounted for by the acquisition method. The fair value of Wood's common stock on August 31 was $36 per share. Wood paid a fee of $160,000 to the consultant who arranged this acquisition. Costs of registering and issuing the equity securities amounted to $80,000. No goodwill was involved in the purchase.
What should Wood capitalize as the cost of acquiring Pine's net assets?February 25, 2020 at 3:19 pm #2945724
What's up Ninja's!!! How are we coming with Far study. I am trying to get out of Cash flow statements. I seem to do well with mostly everything else but Cash flow seem to be my weakness. It's driving me nuts. I'll have to find a better video source, the book is no help either.
Have you guys been following the score release and see all those passing scores? I am excited. I am determined to pass Far. If they can do it, so can I. Keep studying gang.February 28, 2020 at 1:39 am #2948901
OK so I was struggling with Cash flow statement questions. I found a Roger video and oh my what a relief. I think I got it now and can move on. Has anyone else used other videos from other providers other than the ones the come with your course? I feel so much better.March 2, 2020 at 3:05 pm #2951897Jeff Elliott, CPAKeymaster
I decided to resurrect the study groups. If you have a study strategy question for me, post it here. 🙂
JeffMarch 5, 2020 at 6:35 pm #2955323
Why is it so easy to deviate from the course study plan? I was doing so good, then I began to feel like I am going in circles again. Is anyone else experiencing study blahs?March 5, 2020 at 7:07 pm #2955353DavidParticipant
@Tncincy yeah I'm right there with you. I had a study blah like 2 days ago and just kind of took an easier day of studying and relaxed. Now I'm 5 days out and studying like crazy think that day helped lol. FAR studying is not fun for me, hoping to be done with this process March 10th. Sometimes when I get those blahs switching from MCQ's to reading NINJA notes is good too or going to the gym.March 6, 2020 at 2:31 pm #2955887
@David, Trying to rebound today. I don't like taking off too many days, I simply lose the momentum and can't get it back. I like the idea of writing notes when I'm blah as well. At least I'm doing something.March 6, 2020 at 2:42 pm #2955902
Has anyone ever bought cpa review materials only to lose interest in a matter of days? I have am just feeling really stupid and broke. Do what ever you have to do to pass right?March 6, 2020 at 8:08 pm #2956154AkashiParticipantMarch 7, 2020 at 12:36 pm #2956523
@Akashi, Thanks for your response. Now I know I'm not crazy. I son't know why that magical feeling comes over me like there will be something different is going to help me pass. I do like Roger lectures though.March 11, 2020 at 4:32 pm #2960012
Is there a highly tested far list somewhere? Does anyone know?March 11, 2020 at 4:34 pm #2960015Jeff Elliott, CPAKeymaster
If you are getting bored with your course – take crazy notes. It keeps your mind engaged.March 12, 2020 at 8:29 am #2960591
How do you do Contingencies?
You're supposed to recognize and disclose events if they're already known (like lawsuits) as of Dec 31st, right? And what about natural disasters after year end, are those only disclosed and not recognized? What about insurance, if you're covered and expecting something?
I can't handle all these plot twists on a single topic 😮
FAR Study Group 2020 - Page 10
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