December 4, 2019 at 6:54 am #2828016inviteyouParticipant
Hey Everyone, I figured out my SCF problem, whew! It was as simple as that I was reading the question wrong. It was a noncash transaction because they retired the debt BY (way of) issuing stock. I thought of it as when a company will give stock to an attorney in exchange for legal services. I absolutely hate when I get stuck on the wording of the question. At times I don't assume and I get it wrong when I should've assumed. At any rate, back at it.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 #2865681TncincyParticipant
Taking far again early Feb. 2020. Will I need new notes for far 2020? I have 2019.December 31, 2019 at 7:43 am #2866218DocJParticipant
“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 #2871360DocJParticipant
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 #2872056TncincyParticipant
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.
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