[Pawn Maker]

Mtaylo24, you are the man! Your positive attitude really helped me when I was having a hard time with FAR. Thank you for that. I am very happy for you, enjoy NOT studying!

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

A large part of me wondered if I would ever be able to post in this thread, but after the horror show that was the CBA score release I found out that I am indeed done! Congratulations to everyone, man am I happy this is over!

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

Thanks houseparty, you are right. For some reason my phone would login but my computer wouldn't.

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

Wow, I just got back in. The start page is telling me that I have completed step 2 of the CPA exam process and I can submit my educational information so I can sit for my first exam! I really hope they didn't loose my prior exam results in whatever mess is going on over there.

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

Sure, when I logged in my start page stated some sort of database error. I clicked on my status tab and looked exactly like it did when I started. All exams showed no credit and there was no history of any NTS or taken exams at the bottom.

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

I just got in and was finally able to get to my status tab…only to find all my scores have been erased…

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

I am sorry Pam. I know how you feel, I have been feeling that way for a while now. One of the things I really hate about these exams is that it is so hard to tell if you actually did well or not when you took the exam. I don't know what to tell you regarding which exams to take at this point. The only thing I would try to do at this point is to practice MCQs and SIMs across the board until you are regularly getting 100%. That was what I did for my REG retake as I was blown away by how hard that exam was the first time. That was the only exam I walked out of knowing I passed. I have heard all of this board how good the Ninja MCQs are, and if I have to retake FAR again I will definitely be picking them up. They apparently have an adaptive mode which hones in on your weaknesses so you spend more time working on what you don't know. That does sound brutal, but that should make studying more efficient.

For what it is worth I wouldn't quit yet if I was you. You still have REG behind you, and you were damn close with BEC. So you can pass these things. This is a truly awful process to go through but even though these tests seem impossible people do pass. So we can too!

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

Sherry thank you for posting that. I have been wondering when they would post something. At least they were 45 minutes faster with their delay announcement then they were last quarter…ah progress lol

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

JMG – I have seen several questions in CPAExcel which have back dated bonds. I haven't seen a forward dated one yet. If it is back dated I make sure to start the interest calculation from the date of the bond, rather the issuance date. In general I just make sure that I read bond questions really carefully as there are lots of ways they can throw in tricks.

CPACAL – I haven't, but I have seen people post that they passed and they didn't complete one or two Sims. If you didn't complete one hopefully that was the pretest one!

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

That makes sense, my Wiley FAR text is 1000 pages. By Comparison, BEC is about 350

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

@wannaBCPA2014, I really wish there was some sort of grand design which is keeping me from having my life back. That would provide perhaps some solace to me. I completely share your frustration. The thing I really hate about this exam is that there is so much luck to the draw. I did study hard for REG but I also got lucky with my Sims as the draw I received was everything that I knew really well. I feel this luck aspect is even more important now that we have fewer MCQs and more Sims.

For what it is worth, everyone who has been able to keep at this for years on end is beyond amazing to me. No one who has not struggled with this process can quite understand how miserable the process of achieving a 75 can really be.

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

Well it appears that the first question is incorrect. After looking at both Roger's book and Wiley's they both state that when consolidating under the equity method the equity method increases and decreases in the investment must be backed out on the consolidation worksheet.

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

This is confusing, does anyone know how to approach this. If you have a consolidated group of entities that is using the equity method, how do you setup the eliminating entries. In the first question the answer states that the income and dividend effects are reversed throughout the year to keep the investment at its beginning balance. In the second question though it states the exact opposite, that the income and dividend effects are reversed by the consolidating worksheet.

Parco owns 100% of its subsidiary, Subco, which it acquired at book value. It carries its investment in Subco on its books using the equity method of accounting. At the beginning of its 2009 fiscal year, the investment in Subco account was $552,000. During 2009, Subco reported the following:

Net Income $42,000
Dividends Declared/Paid 12,000

There were no other transactions between the firms in 2009.

In preparing its 2009 fiscal year consolidated statements, which one of the following is the amount of the investment eliminating entry that Parco will make as a result of its ownership of Subco?

$552,000

$582,000

$594,000

$606,000
You Answered Correctly!
The amount of an investment eliminating entry is the balance in the investment account as of the beginning of the period being consolidated. In this case, that was $552,000. If the parent uses the equity method to account for its investment in the subsidiary, the entries it makes during the year are reversed so that the investment account has its beginning of the year balance.

If a parent uses the equity method on its books to carry its investment in a subsidiary, which one of the following current year entries (made by the parent) must be reversed on the consolidating worksheet?

Income from Subsidiary Dividends from Subsidiary

Yes Yes

Yes No

No Yes

No No
You Answered Correctly!
When a parent uses the equity method to account for its investment in a subsidiary, the parent will recognize on its books during the year its share of the subsidiary's income (or loss) and its share of dividends declared by the subsidiary. Therefore, in the consolidating process, those entries (and any other equity-based entries made by the parent) must be reversed so that the elements that make up those entries (revenues, expenses, etc.) can be individually recognized on the consolidating worksheet and the consolidated financial statements.

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

Yeah I have been getting tripped on these as well. It is really hard to tell sometimes what they are asking for. I think though you may have helped by placing them side by side. In the first question it is asking for uncollectible accounts expense. That one stands out as you have to plug the T account with a credit to AL. The credit to AL of 34,000 must be attached to the credit of uncollectible accounts expense that they are asking for.

The second question got me because I wanted to use credit sales method. I think I am going to remember going forward they don't state they are using the credit sales method then I won't use the credit sales method. That means that the 9,000,000 x 2% cannot be the ending amount and thus we are solving for the ending credit balance which is 115,000.

What do you think? I completely agree that these things are too damn confusing. I would really hate to miss a sim questions regarding one of these.

CPACAL – I could be wrong here but I think that it is zero because it is asking for the effect on income. The 122,500 is the effected on RE.

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Pawn Maker]

This isn't universal, but as a general rule PV is used long-term. If you have a loan which is made for 9 months then you use the face value of the loan. If you have a loan which is made for 10 years then you use the PV. That's at least how I understand it. If I am wrong, someone please correct me.

AUD: 82
BEC: 80
FAR: 68, 81
REG: 67, 86

[Author]

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