#cpa far 2024

[fintramglobal001]

Live Discussion on FAR-(US CPA) New Curriculum 2024

FinTram come up with a Live Discussion on the US CPA - FAR 2024 Curriculum. Join the Live QnA with Mr. Pankaj Dhingra on 18th Nov, 5:00 PM IST. Thank you for watching this video! If there are any video suggestions that you would like us to make, please drop them in the comments. LIKE, SHARE, and SUBSCRIBE!

[tejaswini-simandhar]

Are you aware of US CPA Exam changes from 2024?

US CPA is one of the most lucrative career options in the accounting field. The global demand for CPAs has increased exponentially over the last few years. Parallelly, the roles and responsibilities of CPAs have also varied in accordance with the ever-changing business landscape. The advent of digitization and the implementation of new technologies have revolutionized the finance and accounting industry. To ensure that CPAs are updated and competent with the technology-driven business landscape, AICPA has introduced the CPA Evolution Initiative.

The US CPA Exam Evolution Initiative will come into effect from January 1, 2024 and will have significant changes to the CPA curriculum. The passage below explores in detail the CPA 2024 changes.

CPA Evolution Initiative – What is the New Model?

The new model has been proposed to make the CPAs more tech competent. The new model will follow a Core + Discipline model with 3 Core Sections and 3 Discipline Sections.

CPA students have to study all three core sections. The three core sections are:

Financial Auditing and Reporting (FAR)

Auditing and Attestation (AUD)

Taxation and Regulation (REG)

CPA students can choose one discipline section out of the three. The three discipline sections are:

Business analysis and reporting (BAR)

Information systems and controls (ISC)

Tax compliance and planning (TCP)

Irrespective of the discipline section the CPA candidate chooses, he can opt to practice in other areas well. His choice of discipline section will not have any effect on his CPA licensure.

Transition Policy – What it Means to CPA Aspirants?

AICPA along with NASBA, have created a smooth transition policy for implementing the new changes. The transition policy is simple and straightforward. Below is the break of the transition policy and how it affects the CPA candidates.

Candidates who have passed and have credit for AUD, FAR, or REG on the current CPA Exam will not need to take the corresponding new core section of AUD, FAR, or REG on the 2024 CPA Exam.

Candidates who have passed and have credit for BEC on the current CPA Exam will not need to take any of the three discipline sections.

Candidates without credit for AUD after Dec 31, 2023, will have to take the AUD core section on the 2024 CPA Exam.

Candidates without credit for FAR after Dec 31, 2023, will have to take the FAR core section on the 2024 CPA Exam.

Candidates without credit for REG after Dec 31, 2023, will have to take the REG core section on the 2024 CPA Exam.

Candidates without credit for BEC after Dec 31,2023 will have to take one Discipline section on the 2024 CPA Exam.

The current sections and curriculum of the CPA exam will not be available for testing after Dec 2023.

CPA Exam 2024 – What are the Content Changes?

There are some significant changes in the curriculum of each section for the CPA exam 2024. The content from the section has been transferred to the other sections.

The only section that remains relatively unchanged is AUD. While no content has been removed from it, some content from BEC has been added to this section. The newly added topics in the AUD section are basic economic concepts and business processes and internal controls. Some existing content from FAR will be moved to the BAR discipline section under the new model. These topics include business combinations, R&D costs, stock compensation, and public company reporting, among many others. Some BEC topics have also been moved to the FAR section. Similarly, some existing REG content has been moved to the TCP discipline section. This content includes gross income concepts.

In the case of discipline sections, the BAR section includes complex technical accounting topics along with lease accounting and revenue recognition. It also includes certain topics from the BEC section such as managerial and cost accounting, variance analysis, non-financial measures of performance, and financial valuation decision models. ISC exam section will evaluate the candidate on knowledge of IT audit and advisory services. It also borrows some BEC topics. Lastly, the TCP discipline section evaluates the candidates on knowledge of federal tax compliance policies and focuses on complex tasks. As specified already, some REG topics have been included in the TCP section.

Below is the summary of how the content has been spread across different sections under the CPA 2024 model:

REG – REG + TCP

FAR – FAR + BAR

AUD – AUD

BEC – FAR + BAR + AUD + ISC

CPA Exam 2024 – Scoring Weight Changes

There is not much change in the scoring weight of the CPA exam. Under the new model, every section has a scoring weight of 50% MCQs and 50% TBSs, except one section. The ISC discipline section gives 60% weightage to MCQs and 40% weightage to TBSs.

CPA Exam 2024 – Section Time and Question Count Changes

There is no change in the section time. The current section time of 4 hours will remain the same for the new model as well. In the case of question count, the new model has 2 changes. The current model has a question count in the range of 62-72 MCQs and 8 Sims, except for BEC. The BEC exam has 4 TBSs and 3 Written Communication questions. Under the new model, the ISC exam section will have 82 MCQs and 6 TBSs. Similarly, FAR and BAR exam sections will have 50 MCQs and 7 TBSs

CPA Exam 2024 – Skill Level Changes

There are no changes in the skill level categories but there are a few minor changes in the skill level allocation for some sections. The changes to the question count also reflect the skill level changes. For instance, ISC with more MCQs has more skill allocation to Remembering and Understanding. AUD section lays more emphasis at Remembering and Understanding and Analysis levels, whereas FAR section lays emphasis at Remembering and Understanding and Application levels. The latter section has fewer questions at the Analysis level.

REG section retains the same skill level with no changes. FAR and BAR have more questions at the application level with MCQs having complex calculations. TCP section contains the highest percentage of questions at the Application level.

It should be noted that these changes are not finalized. There might be a few changes to the new model. But, the core concept of the model will remain the same. AICPA has announced that it is waiting for inputs on the new model till September 30, 2022. Post that, it will review the comments and make any changes if deemed fit. The blueprint will be finalized in December 2022 and will be published in January 2023.

[milescpareview]

What is Core-Plus-Discipline Model in CPA 2024?

The CPA examination is undergoing an evolutionary change in the year 2024. Under the changes, the path to CPA licensure will follow the new “Core-Plus-Discipline Model.” This new model has been proposed by the AICPA (American Institute of Certified Public Accountants) to make CPAs more tech-savvy. In this AUD, FAR and REG will come under core subjects while BEC will be divided into three disciplines-

1. Business Analysis and Reporting (BAR) 2. Information Systems and Controls ( ISC) 3. Tax Compliance and Planning (TCP) The candidate has to select any one among the three disciplines. So, if you resolve to become a CPA then here are the upcoming evolutionary changes, buckle up your preparations with Miles Education, the best institute for CPA in India.

[thegreatallie]

You know, there's a joke in the accounting community that CPAs* hate change. That you can show them the most useful, newest modern accounting software that will revolutionize how they analyze finances, and they'll go back to the office and continue using Excel 95 without formulas.

Well, I have an assignment at my work that involves going through CPAs and accounting firms and finding the contact information for them, and here are the things I've noticed

So far I've seen websites with the copyright notice covering 1995-2024 (or 2022 in one case.) They look like they could've been improved by GeoCities.

Most of them have email addresses linked to their site. You know, like dave@davetheaccountant.com. Of the ones who don't have emails linked to their domain, a scary amount are still using aol email addresses. AOL is so irrelevant that spellcheck autocorrected "aol" to "all." I had to manually put it back.

Occasionally instead of finding a CPA's website I'll find their obituary. There are a lot of CPAs aging out of the workforce and not nearly as many replacing them.

Which reminds me, if you want to go to college for a useful degree, consider accounting. It's fairly recession-proof as even in lean times people still need accountants, and there are about to be a ton of open jobs.

The catch is, accountants are very boring. Becoming an accountant will make you boring. You'll probably make good scratch but everything you say, even if you're talking about how a rollercoaster came to life and fought Mothra right in front of your eyes at the Six Flags, you'll bore people. I don't understand it, but it's true. I'm so sorry.

*For those not in the know, CPA stands for Certified Public Accountant. Essentially it means you're allowed to perform audits. Most accountants go for the CPA even if they don't intent to become auditors because the test is super hard and it proves that you know your shit. Plus you need to take continuing education classes to keep your license current. Which I think many other professions should do. There's this big conference at the beach that my dad goes to every year because it counts towards keeping his certification current, and he takes my mom and they make it a vacation. It's so cute. They're still totally into each other. I totally ship my parents.

That one got away from me. Anyway, where's the post now button? Oh, there is

[best-accounting-courses]

Is CPA & its Syllabus Tough?

For accountants in India, cracking the CPA (Certified Public Accountant) exam and securing a job in the US is a dream come true moment! However, the CPA exam is considered to be one of the most competitive exams in the world! What makes it so challenging? Is it the CPA syllabus itself?

Before 2024, the exam was divided into 4 sections namely Auditing & Attestation (AUD), Business Environment & Concepts (BEC), Financial Accounting & Reporting, and Regulation (REG). AUD as the name suggests tests abilities to accurately analyze and maintain financial reports through various auditing procedures & techniques whereas BEC tests abilities to understand how a business operates through management, economics and information technology.

FAR tests abilities to read, understand and analyze financial statements like balance sheets, income statements. Moreover, the industry experts at MIles suggest clearing this CPA syllabus first, the rest becoming a walk in the park. REG is the big brother where everything is played by the rules! Legal tax laws, business laws and domestic ethics to be followed by an organization, falls under REG.

However, in 2024, this format of exams changed to carve out a new structure where currently, there are 3 core CPA subjects namely FAR, AUD & REG. Now, a candidate can choose between Business Analysis & Reporting (BAR), Information Systems & Controls (ISC), Tax Compliance & Planning (TCP). BAR, is the continuation of FAR, highly recommended whereas ISC & TCP is the continuation of AUD & REG respectively.

While the newer CPA exam model requires candidates to choose from one of these disciplinaries, the CPA standards in regards to practice, privileges and rights remain unaffected. Additionally, the new CPA syllabus model enables the candidates to choose based on their current interests allowing them to deliver quality services expected from the firm or public. This new CPA evolution definitely is the game changer in the industry.

Furthermore, with the right guidance from the industry experts, and the world’s favorite CPA instructor himself, cracking the CPA exam shouldn’t be a subject of any nightmare. With tailor-made study plan, best subject materials, mock tests and interviews, round the clock availability of the faculty, best tie-ups with the Big 4 and MNCs, Miles Education CPA Program is your best choice!

[alex-sweetoblivion]

The Evolution of CPA Exam Review Courses: What's New in 2024?

The landscape of CPA exam review courses is undergoing a transformative shift in 2024, marked by the implementation of the CPA Evolution initiative. This initiative represents a comprehensive plan to revamp the CPA licensure model, aligning it with the evolving demands of the accounting profession. As we delve into the changes, it becomes evident that the 2024 CPA exam is transitioning to a Core-Plus-discipline model, emphasizing proficiency in a core foundation of accounting, auditing, and tax. This shift is a response to the dynamic nature of the accounting field, demanding CPAs to possess a broader skill set. CPA review course providers are actively adapting their offerings to align with the new exam structure. Notably, industry leaders like Surgent, Becker, and Gleim are at the forefront, crafting courses that mirror the updated AICPA blueprint for 2024 CPA Evolution. These changes aim to better equip aspiring CPAs with the knowledge and skills required in the contemporary professional landscape. Let's explore the specifics of these modifications and how they shape the future of CPA exam preparation.

Overview of CPA Exam Review Course

In today's competitive job market, passing the CPA exam is essential for aspiring accountants. A CPA exam review course provides a comprehensive, structured, and guided approach to help professionals prepare for and succeed in the CPA exam. Such a course includes comprehensive study materials, practice exams, and expert guidance to ensure candidates are well-prepared for the rigorous test.

Comprehensive Study Materials in CPA Exam Review Course

The CPA exam review course offers comprehensive study materials, covering all four sections of the CPA exam: Auditing and attestation (AUD), business environment and concepts (BEC), financial accounting and reporting (FAR), and regulation (REG). These materials typically include textbooks, video lectures, online resources, and interactive study aids to ensure candidates have a deep understanding of the exam content.

Practice Exams and Simulations in CPA Exam Review Course

Candidates enrolled in a CPA exam review course have access to a multitude of practice exams and simulations designed to mimic the actual CPA exam environment. These practice tests help candidates gauge their readiness, identify areas for improvement, and familiarize themselves with the format and types of questions they can expect on the actual exam.

Expert Guidance and Support in CPA Exam Review Course

One of the key features of a CPA exam review course is the expert guidance and support provided to candidates. This includes access to experienced instructors, mentors, and support staff who can answer questions, clarify concepts, and provide personalized feedback to ensure that candidates stay on track with their studies.

Interactive Learning Resources in CPA Exam Review Course

Interactive learning resources, such as online study forums, virtual study groups, and collaborative study tools, play a crucial role in enriching the learning experience for candidates. These resources facilitate peer-to-peer learning, allow candidates to discuss challenging topics, and provide a sense of community and support throughout the exam preparation process.

Flexibility and Convenience in CPA Exam Review Course

Recognizing that many CPA candidates are working professionals, CPA exam review Courses often offer flexible study options, such as on-demand video lectures, mobile-friendly study materials, and self-paced study schedules. This flexibility allows candidates to balance their exam preparation with their professional and personal commitments.

Success Rate and Testimonials of CPA Exam Review Course

Many reputable CPA Exam Review Courses boast impressive success rates among their candidates. Testimonials and success stories from previous candidates can provide valuable insights into the effectiveness of the course, the support provided, and the impact it has had on their success in passing the CPA exam.

Conclusion

In conclusion, a CPA exam review course is a comprehensive and invaluable resource for aspiring CPAs, providing the essential study materials, practice exams, expert guidance, and interactive learning resources necessary for success in the CPA exam.

[steamishot]

leveling up (or not)

i've still been listening to a lot of sara payne's rock solid relationships episodes and it's been very uplifting to me as she provides mostly great life coaching (for free!). one episode stood out most to me recently, which is about leveling up. she talked about playing mario and going on to the next level. with every advance, there is failure. you die, you try again, you keep trying until you beat the level. otherwise, you're stuck at the same level and always winning - this although nice, gets boring and unfulfilling. as a student, we go through all the grades K-12, then in college year 1-4, etc. so there's always that feeling that we're growing incrementally.

in my professional life currently, i feel that i've been playing on the same level and constantly winning. it's definitely boring and unfulfilling. there are pockets where it's busier and the work is new and more challenging - but this usually only lasts a little while and it becomes boring again. especially during the holiday season, i feel like no one wants to be working and its been really slow! at least on the outside, it appears that i have received a promotion this year, so it is an instance of leveling up. after reflection, i want to resume my studies in accounting and possibly aim for a CPA.

furthermore, i used to be more goal oriented when it came to working out/exercising. i can think back specifically to during covid where i would track my running speed and consistently run 5Ks multiple times a week. also, when i did copilot for two months (?) and leveled up in weights to the point where i surprised myself. now, i am mostly doing hot yoga and youtube workouts - but for the purpose of maintenance, not growing. i've even recently started searching for easier workouts as i feel lazier, and had no motivation to use my heavier weights. this also made the workout feel more boring and unfulfilling. the podcast episode really made me think of all the areas in my life that i am not leveling up in. so, for the past two days, i've put in more effort into my workouts and it definitely became more challenging and rewarding.

i started playing duolingo and learning japanese as a replacement to social media. at least for this, there is a clear indication of a path forward (unit 1 -> 2, etc).

i will start therapy with kaiser mid-december. i want to delve in to my need to put myself on the backburner. for example, i'd rather focus on someone else's career (aka matt's) instead of my own. i've always prided myself on being "selfless" and helping other family members, being the reliable one. why i avoid being the "main character" and feel more comfortable as a supporting cast.

this is part of the reason why i felt so down about matt's job search being unsuccessful thus far. i became totally tunnel-visioned about this that i had very little else going on for me (AND vice-versa). because i had so little going on for me, i needed to latch onto his thing to feel some sense of purpose. to be honest, it's probably the latter moreso than the former.

to make life more interesting and intentional/purposeful, i'll need to set SMART goals for myself. 2024?

edit: i attended hot yoga today, even though i almost didn't feel like going. matty always has a little story at the beginning of class. today, he talked about beyonce and her film renaissance now out in theaters, and the commentary about her daughter blue ivy receiving criticisms from online haters. despite the criticisms, she continues to show up and try her best to get better. he inspired us to say "i can" instead of "i can't". this was completely coincidental to my theme of wanting to level up recently, so i tried harder than i normally do in yoga class and felt proud of myself.

quote: ���Very rarely does pursuing our dreams feel like anything other than a lot of effort clothed in self doubt.” Self doubt is part of the deal. Doubt your doubts before you doubt your faith.

[hotspotcitynet]

Get Advice - Tax Time Is Here

Don’t let taxes catch you off guard! Tax time may seem far away, but it’ll roll back around again before you know it. While Monday, April 15, 2024 is the tax filing deadline for next year, It’s wise to get your affairs in order long before deadlines.   Call Howard Dagley, CPA 1-661-255-8627 for the professional information you need for your next tax return. Howard can help you maximize your…

[ritahutchesoncobbs]

Yesterday, as recommended by one of my class members, I had a scheduled appt with a CPA at our local library as they assist people prepare their taxes for this year. However, I had questions for next year. Am I keeping good books for 2024 tax season? Incoming, outgoing revenue? Record keeping? What deductions could I get for this start up business? I learned a couple of new things to add, but he was so impressed with my organization that he laughed and said maybe you should add organizing other peoples paperwork to your business plan. I have a gift… I was a little proud of my success in this thus far. #bossgirl #administration #recordkeeping #organization https://www.instagram.com/p/CpDcH5IrUc1/?igshid=NGJjMDIxMWI=

[tejaswini-simandhar]

CPA Exam 2024 — What are the Content Changes?

There are some significant changes in the curriculum of each section for the CPA exam 2024. The content from the section has been transferred to the other sections.

The only section that remains relatively unchanged is AUD. While no content has been removed from it, some content from BEC has been added to this section. The newly added topics in the AUD section are basic economic concepts and business processes and internal controls. Some existing content from FAR will be moved to the BAR discipline section under the new model. These topics include business combinations, R&D costs, stock compensation, and public company reporting, among many others. Some BEC topics have also been moved to the FAR section. Similarly, some existing REG content has been moved to the TCP discipline section. This content includes gross income concepts.

In the case of discipline sections, the BAR section includes complex technical accounting topics along with lease accounting and revenue recognition. It also includes certain topics from the BEC section such as managerial and cost accounting, variance analysis, non-financial measures of performance, and financial valuation decision models. ISC exam section will evaluate the candidate on knowledge of IT audit and advisory services. It also borrows some BEC topics. Lastly, the TCP discipline section evaluates the candidates on knowledge of federal tax compliance policies and focuses on complex tasks. As specified already, some REG topics have been included in the TCP section.

Below is the summary of how the content has been spread across different sections under the CPA 2024 model:

REG — REG + TCP

FAR — FAR + BAR

AUD — AUD

BEC — FAR + BAR + AUD + ISC

CPA Exam 2024 — Scoring Weight Changes

There is not much change in the scoring weight of the CPA exam. Under the new model, every section has a scoring weight of 50% MCQs and 50% TBSs, except one section. The ISC discipline section gives 60% weightage to MCQs and 40% weightage to TBSs.

CPA Exam 2024 — Section Time and Question Count Changes

There is no change in the section time. The current section time of 4 hours will remain the same for the new model as well. In the case of question count, the new model has 2 changes. The current model has a question count in the range of 62–72 MCQs and 8 Sims, except for BEC. The BEC exam has 4 TBSs and 3 Written Communication questions. Under the new model, the ISC exam section will have 82 MCQs and 6 TBSs. Similarly, FAR and BAR exam sections will have 50 MCQs and 7 TBSs

CPA Exam 2024 — Skill Level Changes

There are no changes in the skill level categories but there are a few minor changes in the skill level allocation for some sections. The changes to the question count also reflect the skill level changes. For instance, ISC with more MCQs has more skill allocation to Remembering and Understanding. AUD section lays more emphasis at Remembering and Understanding and Analysis levels, whereas FAR section lays emphasis at Remembering and Understanding and Application levels. The latter section has fewer questions at the Analysis level.

REG section retains the same skill level with no changes. FAR and BAR have more questions at the application level with MCQs having complex calculations. TCP section contains the highest percentage of questions at the Application level.

[maxwellcpareviews]

Full Guide to the 2024 CPA Exam Changes

Under the next exam format, students all take the same core exams (far, reg, audit). For the fourth exam, they choose between three discipline exams. Now what you don't notice is the bec exam. The bec exam is essentially disappearing and all of its content is getting moved to the business analysis and reporting (bar) discipline exam.

Visit Us - https://maxwellcpareview.com/blog/cpachanges2024

[milescpareview]

CPA Exam Changes 2024

Financial Analysis and Reporting have now become simpler in 2024 and we suggest that you take FAR as your first exam.

Business Environment and Concepts (BEC) has evolved into 3 optional papers:

Business Analysis and Reporting (BAR) Tax Compliance and Planning (TCP) Information Systems and Controls (ISC)

And our experts suggest you go with BAR. Change is never easy but with Miles by your side, you will crack your exams with ease.

To know more, visit: https://bit.ly/48TdyoO

[your-dietician]

Airlines enter earnings season wrestling with fuel prices, hiring challenges

New Post has been published on https://medianwire.com/airlines-enter-earnings-season-wrestling-with-fuel-prices-hiring-challenges/

Airlines enter earnings season wrestling with fuel prices, hiring challenges

The earnings season for the U.S. airline industry is about to start. So what can we expect?

Cowen analyst Helane Becker says that the airline industry is still wrestling with issues that have plagued it all year. These include volatile jet fuel prices, supply chain issues causing delays in maintenance and repair, aircraft delivery delays and difficulty hiring and retaining employees, particularly pilots. “Non-network airlines are seeing defections to American, Delta, and United as they aggressively hire both for growth and to replace retiring pilots,” she wrote, in a note released on Friday.

“We will also be looking for companies to talk about their plans to rein in costs,” Becker added. “We are well aware salaries are going up through hourly pay increases and bonuses, and once that genie is out of the bottle, it’s hard to put it back in.”

The analyst thinks we could see positive surprises from Delta Airlines Inc. DAL, -0.61%, American Airlines Group Inc. AAL, -1.77%, United Airlines Holdings Inc. UAL, +0.46%, JetBlue Airways Corp. JBLU, -2.12%, Spirit Airlines Inc. SAVE, -1.79%, Copa Holdings S.A. CPA, -1.25%, AerCap Holdings N.V. AER, +0.42% and Atlas Air Worldwide Holdings AAWW, +0.60%, but negative surprises from the likes of Alaska Air Group Inc. ALK, -0.88%, Hawaiian Holdings Inc. HA, -0.67%, Allegiant Travel Co. ALGT, -1.61%, Frontier Group Holdings Inc. ULCC, -1.64%, Skywest Inc. SKYW, +1.21% and Southwest Airlines Co. LUV, -0.33%.

Delta kicks off airline earnings when it reports third-quarter results before market open on Oct. 13. Analysts surveyed by FactSet are looking for earnings of $1.54 a share, or $1.55 a share excluding items, on net income of $998 million. Sales are expected to be $12.898 billion, according to analysts.

See Now: Here is the ‘best airport’ in the world, as voted by Condé Nast Traveler readers

“DAL (and many other airlines) have sharply underperformed broader transports since the end of 2019,” wrote Evercore ISI analyst Duane Pfennigwerth, in a note. “During a stimulus juiced lockdown, when travel was shut-down and spending options were very limited, this made perfect sense.”

But, with travel restrictions lifted, airlines should be performing better, according to the analyst. “In a reopened world, it is far less clear why moving people (who aspire to see the world) vs. moving boxes should maintain such an underperformance gap (consensus recession fears notwithstanding),” he wrote.

Pfennigwerth also believes preliminary buyside estimates of revenue per available seat mile are too high into the fourth-quarter, given the shape of capacity.

Set against this backdrop, the analyst firm revised its Delta Airlines 2023 earnings per share estimate to $4.55 from $5.50 and established a 2024 earnings per share estimate of $6.25.

United Airlines reports its third-quarter results after market close on Oct. 18, with a conference call the next day. In July United delivered its first profitable quarter since the start of the pandemic, despite fuel prices hitting record highs.

See Now: Here’s why airline stocks are taking off this week

Last month United Airlines raised its third-quarter revenue growth outlook, citing “strong” demand at the end of a “robust” summer. United “is likely the best positioned airline to take advantage of the next stage of the revenue recovery, which will come from large corporates and international travel continuing to move closer to 100% recovered,” wrote Jefferies analyst Sheila Kahyaoglu, in a note last month.

Analysts surveyed by FactSet are looking for earnings of $2.22 a share, or $2.23 a share excluding items, on net income of $745 million. Sales are expected to be $12.718 billion.

American Airlines will report its third-quarter results on Oct. 20.  Demand data for American and United “meaningfully diminishes” the risk of a downside 4Q guidance surprise heading into earnings, according to JPMorgan analyst Jamie Baker, in a note released Friday. “American & United fourth quarter booked revenue – through the end of September and disclosed Thursday – continues to exceed that of 2019 by a wide margin, continuing the trend established earlier this year,” he wrote. “While the stocks continue to signal a meaningful deceleration in demand, in our view, the data has yet to support that outcome.”

The company’s shares have fallen 33.2% this year, outpacing the S&P 500 index’s SPX, -0.83% decline of 23.5%.  Analysts surveyed by FactSet are looking for earnings of 34 cents a share, or 45 cents excluding items, on net income of $326 million. Sales are expected to be $13.306 billion.

Read the full article here

[uscpa]

US CPA Exam changes from 2024?

One of the most profitable job paths in the accounting industry is US CPA. Over the past few years, there has been an exponential rise in demand for CPAs on a global scale. In parallel, as the business environment has changed constantly, so have the tasks and responsibilities of CPAs. The financial and accounting sectors have undergone a change thanks to digitization and the adoption of new technologies. The AICPA launched the CPA Evolution Initiative to guarantee that CPAs are knowledgeable about and capable of navigating the corporate environment that is driven by technology.

With the implementation of the US CPA Exam Evolution Initiative on January 1, 2024, the CPA curriculum will undergo considerable modifications. The CPA 2024 modifications are thoroughly discussed in the passage below.

What is the New Model for the CPA Evolution Initiative?

The new approach has been developed to increase the tech proficiency of CPAs. The new model will have three Core Sections and three Discipline Sections, and it will be a Core Plus Discipline model.

All three of the main components must be studied by CPA candidates. The three main parts are:

Financial Auditing and Reporting (FAR)

Auditing and Attestation (AUD)

Taxation and Regulation (REG)

CPA students may select one of the three discipline

The three categories of discipline are:

Business analysis and reporting (BAR)

Information systems and controls (ISC)

Tax compliance and planning (TCP)

His decision about the discipline section will not affect his license to exercise as a CPA.

CPA Exam 2024 - Changes to the Scoring Scale

The CPA exam's score weight hasn't changed all that much. Except for one section, every section under the new model has a scoring weight of 50% MCQs and 50% TBSs. In the ISC discipline part, MCQs are weighted 60% and TBSs are weighted 40%.

What Content Changes Will Be on the CPA Exam in 2024?

The content of each section of the CPA exam has undergone some substantial modifications for 2024. The content from one section has moved to other section.

The AUD part is the only one that has not altered much. No content has been subtracted from this area, although some content from BEC has been added. Basic economic concepts, business processes, and internal controls are the newest topics added to the AUD department. Under the new model, some of the existing FAR content will be transferred to the BAR discipline area. Among many others, these subjects cover business combinations, R&D costs, stock compensation, and public company reporting. Additionally, several BEC topics have been transferred to the FAR section. Likewise, some of the current REG material has been transferred to the TCP discipline area.

Below is the summary of how the content has been spread across different sections under the CPA 2024 model: 

REG – REG + TCP 

FAR – FAR + BAR

AUD – AUD 

BEC – FAR + BAR + AUD + ISC 

Changes to Section Time and Question Count on the CPA Exam for 2024

The duration of each part remains unchanged. The new model will also maintain the present section time of 4 hours. There are two changes in the new model regarding question count. With the exception of BEC, the current model consists of 8 Sims and 62–72 MCQs. Three written communication questions and four TBSs are on the BEC exam. The ISC test portion will feature 82 MCQs and 6 TBSs under the revised methodology. The FAR and BAR test parts, too, will contain 50 MCQs and 7 TBSs.

Preparing for the US CPA exam, find out Best CPA Institute In India 2022

[valuentumbrian]

Boeing’s Financials Are Absolutely Frightening

By Brian Nelson, CFA

On November 18, 2020, Boeing (BA) announced that the US Federal Aviation Administration (FAA) withdrew its order that had grounded its 737-8s and 737-9s (737 MAX) that had been involved in two terrible accidents during the past few years, a Lion Air flight that killed 189 people and an Ethiopian Airlines jet crash that claimed the lives of 157 more. We’ll never forget these tragedies and the impact on the families and the aviation industry, more generally.  

In January 2017, we had added Boeing to the Dividend Growth Newsletter portfolio, but we had removed it March 16, 2018, prior to the unfortunate and high-profile accidents that occurred several months after. During the short time it was in the newsletter portfolio, the stock roughly doubled, producing a return 5 times that of the S&P 500’s performance. Here was the rationale for the removal at the time (bear in mind that this was before the terrible tragedies that occurred months later):

The primary reasons for the removal rest in a combination of Boeing’s value and technical/momentum considerations. Shares have soared to the high end of our fair value range, and now technically, they have started to roll over as investors, fair or not, worry about retaliation with respect to coming tariffs. We’re huge fans of Boeing on a fundamental basis, but a great company a great stock doesn’t always make.

Fast forward to January 23, 2020--a month or so before the COVID-19 market collapse--when Boeing’s shares were trading at ~$320 per share, I penned a piece in frustration: “Why *NOW* Do You Care About Boeing’s Stock?” I said in that January 23, 2020 note in no uncertain terms: “In no, way shape or form should you *now* be interested in Boeing’s stock.” There was some more harsh writing in the note, and I wish I could have said it nicer – but at times, I just want our members to get a feel for exactly what we think about a stock. There’s always room for improvement in my tone.

But please let me put it nicely now: I really didn’t like Boeing’s shares at $320 in January 2020, especially since we had removed them from the Dividend Growth Newsletter portfolio for a huge win just a number of months prior. Now with the benefit of hindsight, I hope you can forgive me for that emphatic and colorful note (in analyst speak, we call that type of writing “pounding the table”). Boeing’s shares had fallen from ~$320 that day in January 2020, to a 52-week low of $89 per share in mid-March.

But that was then, and this is now. Shares of Boeing have finally bounced back, converging to our fair value estimate of $200 that we established near the depths of the COVID-19 meltdown. The company’s shares had rallied back to those levels in June of this year, and now they have settled again at our fair value estimate after technically basing for a number of months. We’re viewing this share price move, in particular, positively, but Boeing still has a long way to go to meet the fundamental/financial criteria we’re looking for to be reconsidered in any newsletter portfolio.

The reality is that Boeing’s financials are still pretty scary. During the first nine months of 2020, the company burned through an incredible $15.4 billion in free cash flow, even as it cut capital spending by a few hundred million. As of the end of the third quarter of 2020, its total consolidated debt now stands at $61 billion, with total cash and marketable securities of $27.1 billion. This compares to total consolidated debt of $24.7 billion and total cash and marketable securities of $10.9 billion, as of the end of the third quarter of 2019.

The grounding of the 737 MAX and the outbreak of COVID-19 have combined to be an absolute wrecking ball to Boeing’s financials, and it may take a very, very long time before things start looking better on the books. S&P, Moody’s and Fitch still give the company investment-grade credit ratings (BBB-/Baa2/BBB-), but we’re not sure the aerospace giant deserves them. Here’s what Fitch noted October 2020: “…many of the company's quantitative rating factors will be inconsistent with the 'BBB' category for three years (2019-2021) and into 2022.” It’s probably fair to say that Boeing’s corporate debt should be rated junk, but that would cause some severe reverberations in the credit markets, in our view.

It's worth sharing Fitch's views on expectations for airline traffic in coming years:

Fitch's base case for airline passenger traffic (domestic and international) assumes revenue passenger kilometers (RPKs) will not recover to 2019 levels before FYE23 and at FYE21 will still be 30% below 2019 levels. Underlying this forecast is the assumption that an effective vaccine/treatment is available, but not at scale, through 2021, and there will be a continued collapse in travel until there is widespread vaccine/treatment availability.

Our base case assumes domestic traffic recovers to 2019 levels around the middle of 2023, while international traffic returns to 2019 levels after 2023, perhaps the summer of 2024. Available information so far supports this assumption of domestic recovering first, including the data coming out of the important Chinese domestic market. We expect capacity will recover before RPKs, and we believe load factors will remain lower than the record levels seen in 2019 (source).

Here is what the International Air Transport Association (IATA) had to say about the 5-year outlook for air passenger demand (July 2020):

…we have revised down our passenger forecast over the next five-year period. In our new forecasts, we expect RPKs to decline by a little more than 60% in 2020 compared to 2019, with a return to pre -COVID levels not occurring before 2024. Many uncertainties remain around the outlook and in this update we have investigated various possible future scenarios. The main point is that the risks around our latest forecast remain clearly tilted to the downside...The upside could see travel demand return to 2019 levels in 2023, while the downside could be much more severe (source).

The airlines are certainly not over the hump, by any stretch, and we think the credit rating agencies are probably giving Boeing the benefit of the doubt that it will start raking in material free cash flow in 2022 due to pent-up demand and accelerated deliveries (an optimistic, but still an assumption with reasonable basis). However, as we’ve learned time and time again, supply chain issues can pose problems, and lower airline traffic will almost certainly impact its services operations.

In the longer run, new aircraft are extremely expensive to build and come with substantial “unknown” risks (e.g. think 787 delays, the recent 737 MAX incidents), and key rival Airbus (EADSY) is not backing down either, with competition only intensifying as the duo vie for orders during these troubled times (Boeing hasn’t had a new aircraft order since August). It's only a matter of time before China and Russia will be key players in the aircraft-making industry, too. Boeing has no margin of error left; should it be hit with another negative exogenous event in the near term, things could get really, really ugly for shares.

When it comes to our favorite ideas, we continue to prefer net-cash-rich, free cash flow generating powerhouses with strong competitive advantages that facilitate recurring revenue business models that can take advantage of secular tailwinds (see the concentrated nature of the Best Ideas Newsletter portfolio). With Boeing’s dividend suspended, too, there’s simply no place in any of our newsletter portfolios for this troubled airframe maker, despite a hugely attractive backlog of unfulfilled deliveries ($393 billion, ~4,300 commercial airplanes). The company falls within what we'd describe as the “too hard bucket,” in our view. One day--many years from now--the aerospace giant’s financials may return to some “normalcy,” but until then, Boeing is likely dead money with a severely-bloated balance sheet walking on thin ice.

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Brian Nelson owns shares in SPY, SCHG, DIA, VOT, and QQQ. Some of the other securities written about in this article may be included in Valuentum's simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.

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