2008 FAR

Gleim 2008 Book + Gleim 2010 Software

by gaap toothed on March 16, 2010 · 2 comments

in CPA FAQ,FAR

In January, I purchased Gleim 2010 Software (standalone) because I didn’t want to spend $50+shipping on an extra book.

Last week, I found Gleim FAR 2008 at a used book store today for $5 and decided to buy it.  After studying the first Study Unit, I am kind of disappointed that I did not purchase the 2010 book.  I love the format of the book and the way the outlines break down each topic into detailed sub-lines.  The differences between Gleim and Wiley are that Gleim is MUCH easier to skim and Wiley is more detailed.  Wiley requires me to sit down for a minimum of 20 minutes to read a chapter.  Wiley often uses heavily detailed example situations/corporations to apply theory, while Gleim keeps everything short and simple.

In fact, Gleim keeps everything so short and simple that some MPCs are impossible to answer using the Gleim book alone.  For me, reading the Gleim book is very similar to reading programming code, line-by-line, with short annotation descriptions.  The problem with a study book written like programming code is that one can easily overlook a single line of code and not realize its significance until later.  I will read an entire outline and then attempt MPCs, but run into problems because a cluster of 8 difficult/picky MPCs are testing a topic in which Gleim has written only a single line of text.

Although Gleim 2008 will not be my main study book, I plan to write notes allover it and tear out the pages that I like… because ya know, it was only $5 (and $0 resell value).  I plan on skipping Study Units 9 and 15 because they cover SFAS 141.

Tagged as: 2008 FAR, FAR, Gleim, old materials

{ 2 comments }

Big Picture Topics + scribbles to jog your brain

by gaap toothed on March 10, 2010 · 1 comment

in FAR

The journal entries and background information come from 2 of the most difficult MPCs that I have come across so far (and actually bothered to take note of)… At the time of answering the MPCs, I thought I had mastered the material, but these 2 very obscure/difficult to concepts stumped me during my review.

DTA – Accounting for Income Taxes NOL

Taxable Income
2010 : $300,000
2011 : ($700,000)
2012 : $1,200,000
Tax rate = 30% 


2011:
Dr. Tax Refund Receivable         90,000
Dr. DTA                                  120,000
     Cr. Tax loss benefit/Income tax expense    210,000
Dr. Tax loss benefit/income tax expense    120,000
     Cr.Allowance to reduce DTA to realizable value     120,000

2012:
Dr. Income Tax Expense     $360,000
          Cr. Income Tax Payable        $240, 000
          Cr. Deferred Tax Asset       $120,000
Dr. Allowance to reduce DTA    120,000
     Cr. Tax Benefit due to loss carryfoward    120,000

Income before taxes                                   1,200,000
Income tax:
Current                                                240,000
Deferred                                              120,000
Benefit Due to Loss Carryforward     (120,000)  
Total Income Tax Expense          ;           ;         240,000
Net Income                                                   960,000

DTL/Investments – Equity Method + Dividends Received

Investee Dividend Paid to Investor Company = 30,000
Investee Income portion of Investor Company = 180,000
Tax rate = 30%

Investor Pre-Tax Income                           180,000
Permanent Difference:
Dividend Received (30,000 x .8)              -24,000
Temporary Difference:
Undistributed Equity (180,000 – 30,000) -150,000
Taxable Income                                       6,000

Income Tax Expense      10,800
        Income Tax – Current          1,800
        DTL                                     9,000

Tagged as: 2008 FAR, Accounting for Income Tax, Big Picture Topic, FAR

{ 1 comment }

Significant FAR changes or additions for 2010

by gaap toothed on February 23, 2010 · 0 comments

in FAR

I’d say FAR 2009 books are fine to be used for the exam in 2010.  (In fact, if money is an issue, I would buy 2009 books for 2010.  In 2011, a new CSO will be used and IFRS will be tested.  In my opinion, this could mean that 2010 books will be obsolete for 2011 and have no resale value.)  If you’re using FAR 2008 materials for 2010, then its time to update everything and buy 2010 books.  Do not use software from 2008 because the MPCs and Simulations could be wrong and its difficult to tell which are incorrect.

FASB pronouncements are fair game on the CPA exam beginning six months after a pronouncement’s effective date.  If early application is permitted, then a new pronouncement is fair game in the window beginning 6 months after the  issuance date.  Sadly, if early application is permitted, both the previous and the new pronouncements can be tested until the previous pronouncement has been superseded.

Typically, when new information or changes are made, the concepts are tested light on the CPA exam.  So don’t stress too much on these concepts (if you’re using a 2009 book).  The new information will eventually be more heavily tested as time passes.  So DO NOT focus more on these pronouncements.  Treat them the same as the unchanged pronouncements you’ve been studying.

**For all my Yaeger FAR 2009 peeps, the 2010 update video they sent to us kinda sucks.  I’d watch it once and take notes because it gives you more topics to focus and review.  They pretty much say don’t worry too much about the changes for the January-May windows.  The more significant changes come into play for the July/August window, in which case they say they will provide another update video when the time comes.

Significant FAR changes or additions for 2009 materials: 


Eligible beginning January-February 2010 exam window

  • SFAS 165 – Subsequent Events (Issued 05/09)
  • SFAS 168 – The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162 (Issued 06/09)
  • ASU No. 2009-1, Topic 105 – GAAP amendments based on Statement of Financial Accounting Standard No. 168 (Issued 06/09)

Eligible beginning July-August 2010 exam window.

  • SFAS 164 – Not-for-Profit Entities: Mergers and Acquisitions (Issued 04/09)
  • SFAS 166 – Accounting for Transfers of Financial Assets (Issued 06/09)
  • SFAS 167 – Amendments to FASB Interpretation No. 46(R) (Issued 06/09)

For 2008 FAR materials:
I would advise against using FAR materials from 2008, especially for since its will be difficult to tell which MPCs and Simulations are incorrect and out of date.  Only use 2008 books if you really can’t afford anything else and have no choice.  Along with the stuff posted above, your 2008 book is missing the following listed below.

Significant FAR changes or additions for 2008 materials:

  • FASB Accounting Standards Codification
  • Explanation of new research task format
  • GASB 52 - Land and Other Real Estate Held as Investments by Endowments
  • SFAS 141(R) – Business Combinations
  • SFAS 160 – Noncontrolling Interests in Consolidated Financial Statements
  • SFAS 161 – Disclosures about Derivative Instruments and Hedging Activities
  • SFAS 162 – The Hierarchy of Generally Accepted Accounting Principles replaced by SFAS 168
  • SFAS 163 – Accounting for Financial Guarantee Insurance Contracts

Tagged as: 2008 FAR, 2009 FAR, 2010 FAR, FAR, FAR updates, old materials

{ 0 comments }