FAR Study Group 2019

This topic contains 259 replies, has 110 voices, and was last updated by  alex260605 3 days, 6 hours ago.

Viewing 30 posts - 31 through 60 (of 260 total)
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  • #2135230

    tbizzle
    Participant

    @ll It's difficult to determine what will be on the test. Another NINJA recommend writing down all of the journal entries in notes to prepare. I have been keeping a separate notebook solely for journal entries and find it very helpful!

    #2135767

    Anonymous
    Participant

    Can someone take a look at this question and tell me what the explanation is really saying? I answered correctly and understand the concept of conservatism, but was completely unaware that it is no longer a thing.

    What is the underlying concept governing the generally accepted accounting principles pertaining to recording gain contingencies?

    Correct A.
    Conservatism

    B.
    Relevance

    C.
    Consistency

    D.
    Reliability

    Conservatism is gone now and in the future, but it was still the basis for this rule when the rule was decided upon, and the rule is still in effect. Future rules will not be based on conservatism, but the past rules were, and many are still in effect (e.g., lower of cost or market). A change in a concepts statement (Statement of Financial Accounting Concepts) does not change the rule, and does not change the basis for it.

    Do NOT quit! There's more in you and if you quit you'll never see it. Show you that you can do it.

    AUD Passed  78
    BEC Passed  79
    FAR Passed  77
    REG Passed 76

    #2140402
    LL
    LL
    Participant

    @tbizzle Thank you for your advice! I am actually doing what you suggested. I can feel I start getting those journal entries. The more I practice the more I get them. Thank you!

    AUD - 76
    BEC - 76
    FAR - 79
    REG - 80
    I am DONE!
    #2144311

    stan
    Participant

    what is the correct answer if it is not conservatism ?

    Stand
    #2144326

    stan
    Participant

    Can we use plain paper for scratch paper at the prometric center rather than laminated papers? I am allergic to markers

    Stand
    #2146627

    CPA
    Participant

    They can give you papers and a calculator, It depends on the location. it best to call or stop by your Prometric location and ask them.

    #2153110

    CPAat33
    Participant

    Hello all!

    Currently 10 years post college and am – for the first time – sincerely studying and anticipating passing the CPA exam this year.

    I have been through the cycle of studying and then get too anxious and restart for the past 10 years.

    I am using wiley study materials and am planning to take FAR as the first exam, hopefully around April of this year.

    Looking forward to successfully passing!!

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    New Year, Same Me, New Approach - Wiley CPA .. all day 🙂
    #2155063
    Puppykoala
    Puppykoala
    Participant

    Hi, never thought I would take CPA exam since accounting was one of my most hated subjects when I was at school two years ago. Then real world classroom taught me how important it is to understand business and numbers and CPA as a tool to advance career. I'm planning to take FAR around April so I can have about 3 months part time studying it. I heard FAR is the hardest and contains the most information and should be taken first. All my accounting education was from a certificate program from UCSD Extension, and mostly online self-studying, so I'm definitely a bit nervous. I'm using Becker review and just started last weekend. Glad to see so many are going through the same journey alongside.

    Good luck to you all!

    Shoot for the stars!

    FAR 88 04/19

    REG 95 07/19

    #2156917

    timmyj
    Participant

    Glen County uses governmental fund accounting and is the administrator of a multiple-jurisdiction deferred compensation plan covering both its own
    employees and those of other governments participating in the plan. This plan is an eligible deferred compensation plan under the U.S. Internal Revenue Code
    and Income Tax Regulations. Glen has legal access to the plan's $40,000,000 in assets, comprising $2,000,000 pertaining to Glen and $38,000,000 pertaining
    to the other participating governments. In Glen's balance sheet, what amount should be reported in the custodial fund for plan assets and as a corresponding
    liability?

    A. $0
    B. $2,000,000
    C. $38,000,000
    D. $40,000,000
    You answered B. The correct answer is D.
    When a governmental unit is the administrator of a multiple-jurisdiction deferred compensation plan, it should report all of the plan assets and liabilities (e.g.,
    $40,000,000) in Custodial Fund because the governmental unit is acting as an agent for both its own employees and other governments participating in the
    plan.

    -I thought for custodial accounts the liability portion was only for the government unit of the financial statements and the the net position was for the portion that belonged to another entity. The assets would be $40, liabilities would be $38 and net position would be $2. Can someone please explain this. Thank you.

    #2157898

    timmyj
    Participant

    Casey entered into a troubled debt restructuring agreement with First State Bank. First State agreed to accept land with a carrying amount of $85,000 and a
    fair value of $120,000 in exchange for a note with a carrying amount of $185,000. Casey has restructured debt twice in the last five years. Disregarding
    income taxes, what amount should Casey report as an ordinary gain in its income statement?

    A. $65,000
    B. $ 35,000
    C. $ 0
    D. $100,000
    You answered D. The correct answer is A.
    Casey would report an ordinary gain of $65,000: the difference between the obligation settled ($185,000) and the fair value of the asset
    transferred ($120,000).

    -Why is he gain not $100,000, you need to recognize the gain from carrying value to fair value and then from fair value to debt relieved. It also mentions ordinary gain and I thought there is no longer ordinary/extraordinary gains. Thanks for the help.

    #2167717

    MO
    Participant

    I got a TBS question about FASB AL code asking for disclosures required when a company contracts to do R&D for another. FAR AL seems to be more vague than AUD. Anyone know?

    AUD - 89
    BEC - NINJA in Training
    FAR - 83
    REG - NINJA in Training
    "Real business is done on paper" -- Michael Scott
    #2168872
    LL
    LL
    Participant

    @Timmyj
    I might not be 100% right, but just try to give you some thoughts.
    Your first question: the $2,000,000 belongs to Glen County's employees. so its a liability.
    Your second question: I think this question is focus on ordinary/capital gain. The $35,000 might be the capital gain.

    AUD - 76
    BEC - 76
    FAR - 79
    REG - 80
    I am DONE!
    #2168947
    LL
    LL
    Participant

    @Timmyj correct myself
    Your second question: the $35,000 might be recorded under OCI, not ordinary gain.

    AUD - 76
    BEC - 76
    FAR - 79
    REG - 80
    I am DONE!
    #2170297

    rahil82
    Participant

    Hi Guys,
    Any easy way to learn deferred taxes? It's really time consuming.

    Thank you

    #2170300

    rahil82
    Participant

    Hi Guys,
    Any easy way to learn deferred taxes? It's really time consuming.

    Thank you

    #2171893

    SeanW
    Participant

    Two questions I'm struggling with (conceptually).

    1. When a Foreign Sub is required to use the Remeasurement Method, what is the journal entry to record the Currency Gain/Loss to balance R/E? Obviously one side is the Currency Gain/Loss Account used to affect Net Income; but I can't picture what the other side is.

    2. The Deferred Tax Valuation Allowance Account – How is this account presented on the Balance Sheet and second, what happens to it over time? I realize it can be reversed if enough future income is generated; but what happens over time if no income is generated? Is it written off somehow and if so, what does that journal entry look like?

    Thank you.

    #2172292

    CPAGIRL
    Participant

    Hi Bunny,
    I am studying for FAR using WileyExcel. Do you think it is worth doing the task based sims while studying, I heard it more beneficial to focus on MCQ for practice? How was your experience?

    "Don't quit! Suffer now and live the rest of your life as a champion"
    #2173633

    SeanW
    Participant

    I figured out #2. The Allowance is netted against the Deferred Tax Asset similar to how the Allowance for AR is netted against AR. Then to close the allowance once enough time has passed, you can just remove the Asset and related Allowance.

    Still looking for assistance with #1 though.

    #2174935

    Stevie
    Participant

    Struggling with Cash to Accrual/Accrual to Cash. What were some ways that helped you understand this?

    Thanks

    AUD - 79
    BEC - NINJA in Training
    FAR - 80
    REG - NINJA in Training
    (>'-')> <('-'<) ^(' - ')^ <('-'<) (>'-')> <('-'<) ^(' - ')^
    #2176675

    Huilly
    Participant

    @Born to Win,

    I believe the correct formula should be C = 10% x (75,000 – C) and then you solve the equation for C.

    The rationale being the contribution amount must equals 10 percent of the income after the deduction. And the income after the deduction implies it is equal to 75,000 minus C.

    AUD - NINJA in Training
    BEC - 89
    FAR - NINJA in Training
    REG - 90
    3P to success: Practice. Patience. Persistence!
    #2178121

    CPA2be
    Participant

    @mo
    I am not 100% sure, but try ASC 808-50. It talks about disclosures related to collaborative arrangements.

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - 92
    REG - 91
    Consistency is the key!
    #2178880

    Kevin
    Participant

    Can anyone help this question? I have no idea about why this leasehold improvements is ‘29,000'

    During December 2014, costs of $89,000 were incurred to improve leased office space with economic life of 20 years.
    The related lease will terminate on December 31, 2030, and is not expected to be renewed.
    The office space was renovated on December, 2010 at a cost of $60,000 and was depreciated using double declining balance method.
    Prepare proper journal entries for each of the transactions.

    The Answer : Debit Credit
    Leasehold Improvements 29,000
    Accumulated Depreciation 20,634
    Loss 39,366 Accounts payable 89,000

    I don't know why there is a loss and Accumulated Depreciation. Please help me!!!

    BUYAYA
    #2179096

    Elizabeth
    Participant

    Hi all. I am studying for FAR, and am taking it March 7th for the first time. I am using Becker to study!

    I was wondering if anyone could possibly give me a ‘lesson for dummies' on two topics!

    1. Leases (Becker Ch. 6 Module 2 (and 1, but I found 2 harder)). They have changed and I do not follow the Becker lecture as compared to the MCQs
    2. Not for Profit revenue recognition (Becker Ch. 8 Module 5). What is the best way to think of these?

    AUD - 77
    BEC - 82
    FAR - NINJA in Training
    REG - 84
    It's a great day to have a great day!
    #2179114

    Elizabeth
    Participant

    Hi!@syu1087. I try and make T charts for things I am unsure of. I also try to picture what the journal entries would be in my head. For example, if we have sold goods, but not been paid….
    Dr: accounts receivable
    Cr: sales revenue

    Here, there is no cash, but you have to accrue for the revenue. Therefore, that year, revenue would be higher under the accrual method because Net Income is ultimately higher (more revenue is recorded)

    AUD - 77
    BEC - 82
    FAR - NINJA in Training
    REG - 84
    It's a great day to have a great day!
    #2185891

    jslevin914
    Participant

    Anyone have any tips on non monetary transactions. Felt they were a lot easier for reg. Any tips would be appreciated

    #2186245

    ZLH123
    Participant

    Hey Guys,

    Does anyone knows if partnership will be included in Far 2019 exam?

    Thanks everyone!

    #2187430
    TerriSilva
    TerriSilva
    Participant

    guys I'm taking FAR on Thursday for the millionth time (seems like) and I've passed the other 3…question is are the new lease standards now implemented on the exam?

    AUD - 79
    BEC - 80
    FAR - 75
    REG - 86
    California Licensed CPA as of August 19th, 2019!

     

    #2188372

    nissen
    Participant

    @mo
    I got that same sim. Think we may be disclosing too much info though.

    #2188375

    nissen
    Participant

    @mo
    Leff that sim unanswered though

    #2188531

    nissen
    Participant

    Good Morning Everybody!
    Before I get some serious comments about disclosing the exam in my previous post I just want to tell you all I was joking. Seriously. There’s a huge testbank the questions get pulled from and it’s vitually impossible to get the same questions twice. @mo, that’s way too much info disclosed. That’s not cool. I will say however that the 15-20% governmental on the exam is misleading because my exam was was composed of about 30% governmental. That’s not cool either. Very misleading…was not expecting the amount of governmental questions I got on my exam… definitely a retake for me…

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