FAR Consolidations: 2026 CPA Exam Lecture Series with Peter Olinto
Watch the recording of Peter Olinto’s live CPA Exam review session on FAR Consolidations. Peter addresses common challenges and provides key insights to help you ace related multiple-choice questions (MCQs) and task-based simulations (TBS).
You’ll learn how to:
Combine financial statements from parent and subsidiary companies
Handle intercompany transactions
Account for different ownership interests
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00:00:00 FAR Consolidations: Intro & Why We Consolidate (CPA Exam Focus)
00:02:30 Investment Types: Trading, Equity Method, and Control Overview
00:03:15 Trading vs. Equity Method (Significant Influence vs. Cost)
00:04:47 Parent's Books: Investment Accounting (Equity Method)
00:05:53 Consolidated Balance Sheet: Elimination Basics
00:06:41 Consolidated Income Statement: Elimination Basics
00:07:31 Consolidation Criteria: Control (50%+), VIEs, and GAAP
00:08:00 🔥 The EAGLIN Eliminating Entry (Mnemonic for Consolidations)
00:09:55 Intercompany Elimination (R/P and Profit on Inventory)
00:11:07 Acquisition Method Rationale and Full Goodwill Rule
01:13:00 Standalone vs. Consolidated: The Need for Transparency
00:14:15 100% of Sub's FV + Non-Controlling Interest (NCI)
00:16:38 Acquisition Date vs. Subsequent Date Consolidation
00:17:17 Calculating Investment Cost (Purchase Price)
00:18:26 🔥 How to Calculate Goodwill (The Formula)
00:19:24 Equity Method: Carrying Value Rollforward (Mechanics)
00:20:51 🔥 Accounting for NCI (Non-Controlling Interest)
00:24:25 Consolidated Equity Check (Parent's RE + NCI)
00:26:40 Consolidated Net Income Check (Detailed Review)
00:30:57 Consolidation Timing (B/S vs. I/S at Acquisition)
00:32:08 Equity Method vs. Cost Method (Brief Comparison)
00:36:01 Equity Method Journal Entries (Income, Dividends, Amortization)
00:38:49 Example 1: 100% Acquisition - Subsequent Date (Goodwill & Amortization)
00:44:45 Purchase Price Allocation (PPA) Analysis
00:45:51 Goodwill: Where it Appears (Consolidated Statement Only)
00:47:09 Year-End Elimination Entry (100% Owned Sub)
01:00:04 🔥 Goodwill Impairment and Consolidation Impact
01:03:08 Retained Earnings Rollforward (Parent & Subsidiary)
01:05:27 Final Year-End Elimination with Goodwill Impairment
01:10:48 🔥 Calculating NCI Fair Value (The Formula)
01:15:15 NCI Placement on B/S (Equity) and I/S (Net Income Deduction)
01:17:35 Example 3: 90% Acquisition - Initial Consolidation & NCI
01:27:06 Intercompany Transactions: The Four Types to Eliminate (Inventory, PP&E, etc.)
01:28:40 Eliminating Intercompany R/P & Service Revenue/Expense
01:30:15 Eliminating Intercompany Dividends (Must-Know JE)
01:32:46 NCI Dividends (The Exception: NOT Eliminated)
01:33:12 🔥 Intercompany Inventory Profit Elimination (Upstream & Downstream)
01:40:07 Intercompany PP&E Gain/Loss Elimination (Fixed Assets)
01:47:38 Intercompany Bond Holdings (Treated as Bond Retirement)
01:56:40 UWorld CPA Review Overview (Study Structure)
01:59:09 🔥 TBS Example: Identifying Consolidation Errors (85% NCI)
02:03:07 TBS Solution: Calculating Goodwill and NCI
02:11:00 TBS Solution: Intercompany Inventory Adjustment
02:17:38 Q&A: Inactive CPA Status
02:20:26 UWorld Features: Study Schedule & AICPA Blueprint
02:23:17 UWorld Instructors & Active Learning
02:26:08 UWorld TBS Mastery & Live Bootcamps
02:28:03 UWorld SmartPath Technology & Pass Rate
02:30:58 UWorld Course Discount Code
02:32:00 UWorld Ambassador Program
02:32:39 Next FAR Topics: Bonds, Leases, SCF & Closing
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