 Hello and welcome to this session. This is Professor Farhad in which we would look at CPA exam changes and specifically I'm going to be discussing the changes that deals with the regulation or e.g. section that's taking place July 1st 2021 simply put six month from now today basically the end of the year or 2020 or the beginning of 2021 approximately six month from now. The reason I'm going to be breaking down those changes into section because some students they already took FAR, they already took BEC, they already took audit, they're only interested in RAG or vice versa. But before I start I would like to remind you that if you are a CPA candidate studying for the CPA exam I strongly suggest you check out my website farhadlectures.com. I don't replace your CPA review course so if you have a CPA review course please by all means keep it. I can't replace it. I wish I can. I cannot. I can be a useful addition to your CPA review course. I can add 10 to 15 points by explaining the material a little bit more in details. And if not for anything check out my website to find out how well or not well your university doing on average on the CPA exam. Also you can check out my website for additional accounting or the tax resources connect with me on LinkedIn if you haven't done so like this YouTube and connect with me on Facebook and Instagram. So what I'm going to do first I'm going to show you the changes in the skill levels that took place for the regulation and basically what's going to happen just reminder we have four skill levels that they that they test you on remembering under an understanding as the basics. Usually here we are dealing with only multiple choice application we're dealing with multiple choice and simple Sims. And if it says analysis here you're either having you know maybe harder multiple choice but definitely Sims will get harder and evaluation. It's the hardest so basically remembering and understanding is the lowest skill level. So what's going to happen is some topics will be downgraded from analysis to application. And that topic is net operating loss net operating loss will be downgraded. It means if you see a multiple choice relatively speaking compared to the prior section it will be easier as well as the simulation and some topics are down out are downgraded from application to remembering what does that mean it means those topics will only be tested in form of multiple choice questions and those are bankruptcy and insolvency securities transaction tax exempt organization unrelated business income to be more specific. So this is this is going to be easier going forward. Now some topics were totally removed and this is the good news about the rag section the federal securities regulation of 1933 1934 the I CPA believe as a new CPA you're not going to be dealing with those type of situation. Therefore why test you for that information. Therefore it is removed estate tax. That's another topic that newly minted CPAs. They don't have to worry about this or at least they don't put you on these topics early on. Alternative minimum tax usually the software does this work but anyway they don't want you to worry about it when you are studying for your CPA exam as well as tax exempt organization in terms of obtaining and maintaining your tax exam status. That's also you don't have to worry about these topics. What does that mean overall what is the conclusion about reg. Yes I would say overall reg is getting easier reg is getting easier simply put if you can defer your reg after July 1st. Not a bad idea. Why because what's happening here is certain topics are either downgraded or taken out which is that's the good news. Now you also have to look at this video you have to look at for you have to look at BEC and you have to look at audit before you make your decision because also in far we're going to be removing some topics as well. But that's that's that's that's the topics that's being discussed on reg I hopefully this session was quick painless and beneficial to you and before I end I would like to remind you to check out my website once again. I can I can be help to you for $30 a month you can try out my system to find out whether it's going to help improve your grade or not if not guess what you lost $30 that's your loss your gain is you could potentially pass the exam. If my system works for you are you willing to take that risk good luck study hard happy new year.