FAR Study Group 2019

This topic contains 177 replies, has 87 voices, and was last updated by  April94 5 hours, 36 minutes ago.

Viewing 28 posts - 151 through 178 (of 178 total)
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  • #2466408

    nicholasloprinzi25
    Participant

    Definitely a chance to pass both by then ! Just keep up the studying & you’ll be good!

    AUD - 75
    BEC - 79
    FAR - NINJA in Training
    REG - 76
    Pushing through one step at a time!
    #2471028

    Kyle
    Participant

    Just about had it with Becker FAR so far. I have had multiple complaints about both the Audit Section and the REG section, as Becker tries to be as cut and dry as possible without seeming to provide much actual background help or reference. I guess I'm wondering if anyone would recommend going through the multiple choice using the book as a reference before trying to answer these questions with no help, as Becker seems to not give a s*** about helping you understand ANY of the concepts. I'm starting to wonder if I will pick up on it more if i were to work through the multiple choice questions with the book next to me the first time going through it?

    AUD - 83
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 75
    Not sure what I'll stress about if I ever pass these last two exams
    #2471298

    ssibi
    Participant

    Does anyone have recommendations on where I could buy just FAR MCQs and sims? I need a ton of practice

    Good luck to everyone taking audit this quarter!
    #2471466

    BF98
    Participant

    Becker is ok.
    NINJA is decent
    Wiley and Gleim I think are probably better than both.

    #2471598

    Han
    Participant

    @kyle are you doing the lectures with Becker? I feel doing one module at a time and doing the mc questions related to that module is a good approach. Even if you have to look through the module to get the answer. I feel it will increase your chance in helping the concepts to stick. With FAR what helped me was continuous review and doing one mod at a time. Some concepts dont stick until 2nd or 3rd time around.

    AUD - 80
    BEC - NINJA in Training
    FAR - 80
    REG - 78
    • Hanna
    #2472279

    Kyle
    Participant

    @Han My process, which has worked for BEC and AUD, has been to read a module, then complete the practice sims, then complete the multiple choice questions, then continue to the next section. Once I read through the book once, I began just working through the multiple choice questions over and over and over. I feel like I have always been extremely frustrated at the beginning when I have no idea what I'm doing, but I feel like FAR is way worse on Becker than it is with any other Exam. I feel like their answer explanations are horrible, they compute things and just expect you to KNOW where or why they are computing those amounts, and then half of the questions dont even have a valid reference to where in the book you learned this.

    I just dont know if I should continue with Becker or if there is something else out there that will help me more. I have until February to pass FAR and BEC, and I am currently doing PPE Cost Basis, which sounds simple on the outside, but Becker likes to make things a thousand times more difficult than they actually are or than they have to be, and I'm struggling to not punch a desk after every incorrect question because of it.

    Basically I'm halfway complete with the CPA Exams and I'm about to quit.

    AUD - 83
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 75
    Not sure what I'll stress about if I ever pass these last two exams
    #2472291

    nicholasloprinzi25
    Participant

    I felt the same way with FAR & Becker. My advice would be to just finish the book/lectures & don’t get too caught up in their mcq’s. Instead, write notes on things YOU know you’re struggling in or having a hard time to grasp.

    After you’re done with Becker I would use NINJA or the Gleim test bank to pound out MCQ’s for 2-3 weeks leading up to your test date. Don’t give up!

    AUD - 75
    BEC - 79
    FAR - NINJA in Training
    REG - 76
    Pushing through one step at a time!
    #2472315

    Kyle
    Participant

    Thank you Nicholas. Feel like I'm so close. Once this ones finished BEC CANNOT be more difficult, but I'm beginning to get scared I won't pass FAR. Do you know the pricing on the GLeim Test Bank? When I was looking into Gleim for REG, I read that it was almost too detailed and it was going over things that weren't even tested on more comprehensive tax related certification exams, so if thats the same case with FAR, I would be afraid, but I do agree I need way more multiple choice questions that might do better at helping teach me.

    AUD - 83
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 75
    Not sure what I'll stress about if I ever pass these last two exams
    #2472339

    nicholasloprinzi25
    Participant

    In my opinion FAR is the hardest & I struggled with AUD (which you passed). BEC should be a piece of cake after FAR. Gleim is definitely hard, it’s very hard at times in my opinion. There are questions that I know I won’t see, but I failed FAR my first time by two points & I was weak in the MCQ’s (which shocked me) so I want to be overprepared this time.

    However, I used NINJA for the other 3 parts & I’m supplementing with it now as well & it’s helped me tremendously. NINJA is definitely better in terms of price & it’s pretty close with Gleim in terms of preparation. Both are light years above Becker when it comes to the multiple choice in my opinion.

    AUD - 75
    BEC - 79
    FAR - NINJA in Training
    REG - 76
    Pushing through one step at a time!
    #2472354

    Kyle
    Participant

    Interesting. Looks like I'll be wasting 67 extra per month then until i pass!

    AUD - 83
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 75
    Not sure what I'll stress about if I ever pass these last two exams
    #2474892

    Kyle
    Participant

    Does anyone know how to explain commercial substance since Becker once again has absolutely no idea how to help explain stuff like this?

    AUD - 83
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 75
    Not sure what I'll stress about if I ever pass these last two exams
    #2475666

    BF98
    Participant

    Commercial substance- if future cash flows involves changes after the transaction if you are familiar with the boot/gain paid its similar to that.

    #2475699

    Michelle
    Participant

    Hi,
    Is there any way to private message someone on this forum? I had posted awhile ago about looking for a study group in the Northern NJ area. Someone replied but I couldn't pm them.
    So again, if anyone is looking to study FAR (hope to take it in July), please message me.
    Thanks!

    #2475798

    BF98
    Participant

    I live in the Indianapolis IN area if anyone wants to do a FAR study group that would work for me too.

    #2475912

    fsin1328
    Participant

    Hi all,

    I am taking FAR( for my second time in JUlY) I have a pretty steady study schedule about 6-7 weeks before I sit. I have been stuck on income tax accounting chapter, I am using Ninja and Gleim as my study material. Any advice on how some of y'all overcame that chapter? I am aware it is a heavily tested chapter so I am trying my hardest to nail this chapter.

    Any advice is truly appreciated:)
    thanks and good luck to all.

    #2485596

    Kyle
    Participant

    Does anyone else here have bad ADD/ADHD? It was always difficult to study, but I'm finding FAR is WAYYYYY more difficult for me than Audit or REG. I am reading the chapter, and then attempting the multiple choice, and having quite a rough time. I understand its my first time going through the topics, but it still seems much more frustrating than even REG, which is terrible because i hate tax. I've been reading around that us ADD people shouldn't really be reading the book as much, but the thought of that scares me. However, I just tried to do a section of multiple choice questions before reading the chapter, and I feel like I'm almost doing better than I was when I was reading the chapter before taking the multiple choice. Does anyone else with ADD issues have any other tips and tricks with understanding FAR, or at least slowing yourself down when doing the questions? I'm two away from passing and I will absolute refuse to let this test break me.

    AUD - 83
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 75
    Not sure what I'll stress about if I ever pass these last two exams
    #2486454
    Jokr
    Jokr
    Participant

    @kyle honestly FAR has been the worst one for me yet, with REG as my last (also hate Tax). I have ADHD and even on my meds i still struggled. But I had the same feeling as you, I spent a month going through the book in its entirety (Rewrote/ paraphrased every section) and did MCQ in the last week leading up to my test and felt like it had been better use of my time than going through the book, which i didn't really experience as much with my previous sections. I would say one thing I did while I went through questions (but can be time consuming) was write down notes on questions I tripped up on consistently (such as DVLIFO for example, or Fund Types) to drill the subject into my head. For certain questions that seemed extra hard/ tricky or that I thought encompassed the main points of a topic I rewrote the questions (such as certain revenue recognition questions, or reconciliations). It may be a bit time consuming if you do this for every question but if your goal is to slow down during questions to understand answers I would definitely say write notes in between questions.

    AUD: 84 (4/18)

    BEC: 88 (3/19)

    FAR: 6/10

    REG: 7/19

    #2486478

    Kyle
    Participant

    I dont even know what I'm asking to be honest. Probably just going to quick. Becker is an absolute joke. I will read the entire section and still do god awful on the multiple choice questions, which is then accompanied by TERRIBLE explanations of how to arrive at the answer. Thank you for the help though. Just cant do it anymore

    AUD - 83
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 75
    Not sure what I'll stress about if I ever pass these last two exams
    #2491749

    theJackedCPA
    Participant

    I just started studying for FAR. Am i the only one that thinks Becker does a horrible job for this section? The majority of the MCQs are not explained at all in the lecture.

    AUD - 90
    BEC - 93
    FAR - NINJA in Training
    REG - 96
    We are Firemen!!!
    #2496027

    Rey
    Participant

    Hello fellow future CPA. So excited I passed FAR yesterday. This was my second time taking it. One down and three left. Let me know if any one needs help or advice. I just want to pay it forward.

    FAR- 73, 83
    AUD- In progress as of June 20th
    REG- Becker
    BEC- Becker

    #2496042

    nicholasloprinzi25
    Participant

    I could definitely use some advice. I'm in the same exact position you were in with FAR. I failed the first time with a 73 & now I'm studying to retake it July 6th. I've been doing a ton of MCQ's for two weeks now & writing notes. I have two weeks to go, what helped you improved your score to get over that 75?

    AUD - 75
    BEC - 79
    FAR - NINJA in Training
    REG - 76
    Pushing through one step at a time!
    #2496363

    BF98
    Participant

    Are u in the Indy area Rey?

    #2496384

    Rey
    Participant

    No I’m in CA-Bay Area

    #2505816

    loganVaz
    Participant

    Hi, Hope this is the right place to post this. I have two questions and I feel as if the concepts are contradicting each other if anybody can help I would appreciate it.

    Pare, Inc. purchased 10% of Tot Co.'s 100,000 outstanding shares of common stock on January 2 of the current year for $50,000. On December 31, Pare purchased an additional 20,000 shares of Tot for $150,000. There was no goodwill as a result of either acquisition, and Tot had not issued any additional stock during the year. Tot reported earnings of $300,000 for the year. What amount should Pare report in its December 31 balance sheet as investment in Tot?

    A. $170,000
    B. $230,000
    C. $200,000
    D. $290,000
    The correct answer is (C).

    When Pare purchased an additional 20,000 shares of Tot at 12/31, it increased its investment in Tot's common stock from 10% to 30% [i.e., (10,000 shares + 20,000 shares) ÷ 100,000 shares = 30%].

    On 12/31, Pare gained the ability to exercise significant influence over the financial and operating policies of Tot and accordingly should report its investment in Tot using the equity method in its 12/31 balance sheet.

    The change from the cost method of reporting the investment in Tot to the equity method should be made by prospectively as of the date significant influence is acquired and going forward.

    On the December 31 Balance Sheet would be the original investment of $50,000 plus the price paid for additional 20,000 shares – i.e. $150,000 – which will be equal to $200,000.

    Pare will begin using equity method from January 1, Year 2 and proportionate earnings will be included from year 2 and not year 1.

    so this question is telling me not to add the income that we had equity in at 10%, but rather add the carrying value of the investments. Going forward the income is attributed to the parent at 30%.

    Question 2

    On January 1 of the current year, Point, Inc. purchased 10% of Iona Co.'s common stock. Point purchased additional shares bringing its ownership up to 40%
    of Iona's common stock outstanding on August 1. During October, Iona declared and paid a cash dividend on all of its outstanding common stock. How much
    income from the Iona investment should Point's year-end income statement report?

    A. 10% of Iona's income for January 1 to July 31, plus 40% of Iona's income for August 1 to December 31
    B. 40% of Iona's income for August 1 to December 31 only
    C. 40% of Iona's total year income
    D. Amount equal to dividends received from Iona
    On 1/1, Point purchased 10% of Iona's common stock. On 8/1, when Point increased its investment in Iona's common stock from 10 percent to 40 percent,
    Point gained the ability to exercise significant influence over the financial and operating policies of Iona and accordingly should report its investment using
    the equity method. The change from the cost method of reporting the investment to the equity method should be made by prospectively.

    Here the correct answer is A. There must be something I am not understanding because this problem uses the equity method for the whole year based on the %'s. Why does this question use 10% of income (by way of equity method) and not the first one?

    #2505840

    sdollen64
    Participant

    I think the issue is that the answer for MCQ 2 is B. Not A. If you change from cost to equity, you're only entitled to a share in the income prospectively – going forward from the date you increased your ownership to 20-50%. For question 2, you purchased an additional 30% interest on August 1; so you're entitled to income from Aug 1st – Dec 31st.

    In addition to that, you changed to the equity method as of Aug. 1st. The dividend was declared/paid in October – after you changed. Dividends aren't income when you use the equity method. It is a debit to Cash and a credit to Investment – it decreases your investment. The question is asking what you would report as net income – your 40% of net income from Aug 1st – Dec 31st.

    If I'm not explaining it well, I'm sure someone will come along that can explain it better than me.

    My teenage son to me "If you don't pass, it isn't like you'll die or anything."  True.  Very true.  Just do your best, it's all you can do.
    #2505882

    April94
    Participant

    In question 1, the investor increased their % ownership at the end of the year (literally on the last day – 12/31). Tot reported $300K in earnings for the WHOLE year, so Pare doesn't get any of that – because he only owned the 30% on the last day of the fiscal year! He can start reporting earnings in the next fiscal year.

    In question 2, Point owned 10% ownership From January 1 up until August 1. Then, his ownership increased to 40% on August 1 – SO he gets 40% of that income (i.e. 40% from August – December) that Iona is reporting because he will have owned 40% from August 1 – December 31 (whereas in question 1, the investor only owned 30% for 1 day).

    In order to appropriately reflect the % earnings, Point gets to report 40% of earnings from August – December but he ALSO gets to report 10% of earnings from January – July 31. Because he is switching from cost to equity method, he can record the portion of earnings from January – July, BUT he can only record the % he owned during that time (i.e. 10%). This is why answer A is correct for question 2.

    "It takes as much energy to wish as it does to plan." -Eleanor Roosevelt
    #2505909

    loganVaz
    Participant

    Thank you for that explanation both of you. For clarification I want to clear up whats confusing me. Because in the second question the equity method was used for a good portion of the year you are accounting for the original investment as the equity method (using 10% of the income until August), and then 40% (prospectively) for the rest of the year. So you are using the equity method for the entire year just at different percentages.

    In the first question you are switching to the equity method at the very last day of the year so going forward in year 2 you use it, but you don't use it for year one?

    #2505948

    April94
    Participant

    Apologies – my Roger book has the incorrect answer. Sdollen explained it correctly – 40% of Iona's income for August 1 – Dec 31 should be included since changes from cost to equity are applied prospectively. My book (2017) has the incorrect answer (answer A) – you may need an updated book/MCQ too! 🙂

    "It takes as much energy to wish as it does to plan." -Eleanor Roosevelt
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