CPA Financial Accounting and Reporting
CPA Financial Accounting and Reporting
The Financial Accounting and Reporting (FAR) section of the CPA Exam is arguably the most difficult, longest and by far the most comprehensive section of the exam. As laid out in the AICPA Blueprints, FAR requires that CPA candidates have a strong knowledge of US GAAP, including concepts and standards for financial statements, typical items in financial statements (income statement, balance sheet, statement of retained earnings, and the statement of cash flows), specific types of transactions and events, accounting and reporting for governmental entities, and accounting and reporting for nongovernmental and not-for-profit organizations. CPA candidates should also be able to demonstrate the skills needed to apply the financial reporting knowledge required of CPAs.
FAR EXAM CONTENT
25-35% Conceptual Framework, Standard-Setting and Financial Reporting
- Conceptual framework and standard-setting
- General-purpose financial statements: for-profit business entities
- General-purpose financial statements: nongovernmental, not-for-profit entities
- Public company reporting topics
- Financial statements of employee benefit plans
- Special purpose frameworks
30-40% Select Financial Statement Accounts
- Cash and cash equivalents
- Trade receivables
- Inventory
- Property, plant and equipment
- Investments
- Intangible assets
- Payables and accrued liabilities
- Long-term debt
- Equity
- Revenue recognition
- Compensation and benefits
- Income taxes
20-30% Select Transactions
- Accounting changes and error corrections
- Business combinations
- Contingencies and commitments
- Derivatives and hedge accounting
- Foreign currency transactions and translation
- Leases
- Nonreciprocal transfers
- Research and development costs
- Software costs
- Subsequent events
- Fair value measurements
- Differences between IFRS and U.S. GAAP
5-15% State and Local Governments
- State and local government concepts
- Format and content of the Comprehensive Annual Financial Report (CAFR)
- Deriving government-wide financial statements and reconciliation requirements
- Typical items and specific types of transactions and events in governmental entity financial statements
Certification Exam: CPA Financial Accounting and Reporting
| Exam Type | Certification |
|---|---|
| Exam Code | FAR |
| Duration | 4 hours |
| Number Of Question | 66 |
| Success Score | 75% |
| Price | 200$ |
Evaluation Exam: CPA Financial Accounting and Reporting
| Exam Type | Evaluation |
|---|---|
| Exam Code | FAR-eval |
| Duration | 1 hour |
| Number Of Question | 20 |
| Success Score | 75% |
| Price | 40$ |