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AICPA FAR : CPA Financial Accounting and Reporting Exam

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Test Number : FAR
Test Name : CPA Financial Accounting and Reporting
Vendor Name : AICPA
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FAR test Format | FAR Course Contents | FAR Course Outline | FAR test Syllabus | FAR test Objectives

Within the Blueprints, you will find the following information for each test section:
Content organized by Area, Group and course along with score weighting
Sample task statements that represent what you may be asked to do when testing
Skill levels at which tasks are tested
Reference materials that support the trial task statements
Number of item types you must complete (multiple-choice questions, task-based simulations and written communication tasks)
Score weighting of each item type

Content area allocation Weight
I. Conceptual Framework, Standard-Setting and Financial Reporting 2535%
II. Select Financial Statement Accounts 3040%
III. Select Transactions 2030%
IV. State and Local Governments 515%

Each test section is delivered in five smaller sections called testlets. Each testlet features different item types (see below) used to test your knowledge and skills. To learn more about how each section is organized, including when you can take a break, review the CPA test structure.

Exam Item Types
You will be tested during the CPA test using three types of test items that appear within specific testlets in each section.

Multiple-Choice Questions (MCQ)
The multiple-choice portions are presented in the first two testlets of each test section.

Task-Based Simulations (TBS)
Task-based simulations are condensed case studies that test accounting knowledge and skills using real life, work-related situations. All task-based simulations are intended to assess knowledge and skills that are appropriate for an entry-level accountant. There are three TBS testlets in the AUD, FAR and REG sections, and two TBS testlets in the BEC section.

Written Communication Tasks
Written communication tasks appear only in the BEC section of the CPA Exam. For each of three written communication tasks, you must read a scenario and then write an appropriate document relating to the scenario. The instructions state what form the document should take (such as a memo or letter) and its focus. Your response should provide the correct information in writing that is clear, complete and professional.

Each of the four test sections is broken down into five smaller sections called testlets. These testlets feature multiple-choice questions (MCQs) and task-based simulations (TBSs). In the case of BEC, you also have to complete three written communication tasks. The number of MCQs and TBSs tested varies depending upon the specific section taken. You will receive at least one research question (research-oriented TBS) in the AUD, FAR and REG sections. To complete them, you will have to search the related authoritative literature and find an appropriate reference.

During each test section, you will be offered a 15-minute break after the first TBS testlet. This is about midway through the section (two hours). You may accept this break and pause the test timer or you may continue testing. To accept the break, click the Take a Break button. During this break, you must leave the testing room and follow all Prometric security rules. The test timer will restart when the 15-minute break ends.

In addition to the 15-minute break, you may also take optional breaks after all other testlets but you cannot pause the test timer. The timer will continue to run.

The Financial Accounting and Reporting (FAR) section of the Uniform CPA Examination (the Exam) assesses the knowledge and skills that a newly licensed CPA must demonstrate in the financial accounting and reporting frameworks used by business entities (public and nonpublic), not-for-profit entities and state and local government entities.
The financial accounting and reporting frameworks that are eligible for assessment within the FAR section of the test include the standards and regulations issued by the:
Financial Accounting Standards Board (FASB)
U.S. Securities and Exchange Commission (U.S. SEC)
American Institute of Certified Public Accountants (AICPA)
Governmental Accounting Standards Board (GASB)
International Accounting Standards Board (IASB)
A listing of standards and regulations promulgated by these bodies, and other reference materials that are eligible for assessment in the FAR section of the Exam are included under References at the conclusion of this introduction.
Content organization and tasks
The FAR section blueprint is organized by content AREA, content GROUP and content TOPIC. Each group or course includes one or more representative TASKS that a newly licensed CPA may be expected to complete in practice.
Tasks in the FAR section blueprint are representative. The tasks are not intended to be (nor should they be viewed as) an all-inclusive list of tasks that may be tested in the FAR section of the Exam. Additionally, it should be noted that the number of tasks associated with a particular content group or topic is not indicative of the extent such content group, course or related skill level will be assessed on the Exam. For example, the course titled Notes to financial statements in Area I includes two tasks that are intended to encompass the required disclosures for any course in the FASB Accounting Standards Codification, while the group titled Leases in Area III includes eight tasks that are limited to the accounting requirements in the Leases course of the FASB Accounting Standards Codification. The number of tasks included in the blueprint for this

group and this course is not intended to suggest that Leases are more significant to newly licensed CPAs or will be tested more than the Notes to financial statements. Similarly, examples provided within the task statements should not be viewed as all-inclusive.
Content allocation
The following table summarizes the content areas and the allocation of content tested in the FAR section of the Exam:
Overview of content areas
Area I of the FAR section blueprint covers FASBs Conceptual Framework, FASBs standard-setting process and several different financial reporting topics. The financial reporting Topics include the following:
General-purpose financial statements applicable to for-profit entities, not-for-profit entities and employee benefit plans under the FASB Accounting Standards Codification
Disclosures specific to public companies including earnings per share and segment reporting under the FASB Accounting Standards Codification and the interim, annual and periodic filing requirements for U.S. registrants in accordance with the rules of the U.S. SEC
Financial statements prepared under special purpose frameworks as described in AU-C Section 800 of the Codification of Statements on Auditing Standards Area II of the FAR section blueprint covers the financial accounting and reporting requirements in the FASB Accounting Standards Codification that are applicable to select financial statement accounts.
To the extent applicable, each group and course in the area is eligible for testing within the context of both for-profit and not-for-profit entities. If significant accounting or reporting differences exist between for-profit and not-for-profit entities for a given group or topic, such differences are in representative not-for-profit tasks in the blueprint.
Area III of the FAR section blueprint covers the financial accounting and reporting requirements for select transactions that are applicable to entities under the FASB Accounting Standards Codification and the IASB standards. The testing of content under the IASB standards is limited to a separate group titled, Differences between IFRS and U.S. GAAP.
To the extent applicable, the remaining groups in the area are eligible for testing within the context of both for-profit and not-for-profit entities. If significant accounting or reporting differences exist between for-profit and not-for-profit entities, such differences are in representative not-for-profit tasks in the blueprint.
Area IV of the FAR section blueprint covers GASBs conceptual framework as well as the financial accounting and reporting requirements for state and local governments under the GASB standards and interpretations.
Section assumptions
The FAR section of the test includes multiple-choice questions, task-based simulations and research prompts. When completing questions in the FAR section of the Exam, candidates should assume that all of the information provided in each question is material. In addition, candidates should assume that each question applies to a for-profit business entity reporting under U.S. GAAP unless otherwise stated in the fact pattern for a question. For example, questions that apply to not-for-profit entities specify the nature of these entities
as not-for-profit or non-governmental, not-for-profit. Questions that apply to IFRS include phrases such as under IFRS or according to IFRS. Questions that apply to the state and local governments include phrases such as local government, state, municipality or city.
Skill allocation
The test focuses on testing higher order skills. Based on the nature of the task, each representative task in the FAR section blueprint is assigned a skill level. FAR section considerations related to the skill levels are discussed below.
Skill levels
Evaluation The examination or assessment of problems, and use of judgment to draw conclusions.
The examination and study of the interrelationships of separate areas in order to identify causes and find evidence to support inferences.
Application The use or demonstration of knowledge, concepts or techniques.
Remembering and Understanding The perception and comprehension of the significance of an area utilizing knowledge gained Remembering and Understanding tasks are in all four areas of the FAR blueprint. These tasks, such as identifying transactions and financial reporting requirements, frequently require newly licensed CPAs to demonstrate their comprehension of accounting concepts and standards. Area IV has the highest concentration of remembering and understanding tasks.
Application tasks are in all four areas of the FAR blueprint. These tasks, such as preparing journal entries and financial statements, frequently require newly licensed CPAs to use accounting concepts and standards to measure and recognize financial statement amounts.
Analysis tasks are in Area I, Area II and Area III of the FAR blueprint. These tasks, such as reconciling account balances, interpreting agreements and detecting financial reporting discrepancies, frequently require newly licensed CPAs to demonstrate a higher level of interpretation. Area I and Area II have the highest concentration of analysis tasks.
The representative tasks combine both the applicable content knowledge and the skills required in the context of the work that a newly licensed CPA would reasonably be expected to perform. The FAR section does not test any content at the Evaluation skill level as newly licensed CPAs are not expected to demonstrate that level of skill in regards to the FAR content.

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AICPA information search

options for CPAs to encourage effective adjustments in variety | FAR Latest Topics and PDF Download

The racial injustice taking area all the way through the U.S. has hit home difficult for participants of the AICPA country wide fee on diversity and Inclusion, who spend lots of their time constructing techniques and supplies for bettering the range of the accounting profession.

commission member Elena Richards, minority initiatives and ability management chief within the office of diversity at PwC, has a 12-year-ancient daughter who’s fiercely optimistic that she may be able to accomplish anything else she desires if she puts her intellect to it.

“That’s what maintains me going,” Richards mentioned, “making an attempt to make this an improved area or world for her so she will be able to live on any block that she wishes, run down the highway in her sweatshirt, and her mom wouldn't have to inform her now not to position her hood on. It’s lousy, but I do have to tell her that.”

With the support of the countrywide fee on range and Inclusion, the AICPA has developed tools reminiscent of a comprehensive evaluation that currently helps an accounting enterprise or corporation evaluate its range and inclusion practices, and the PCPS diversity and Inclusion Toolkit, which gives perception on a way to appeal to a greater distinct candidate pool and hold and advance a diverse group of workers. These equipment and others are available on the AICPA site at

The participants of the fee have strengthened their dedication to working for tremendous exchange. Ken Bouyer, who served because the commission’s inaugural chairman in 2012 and is director of inclusiveness recruiting for EY Americas, spoke of the present ambiance offers an important impetus for alternate.

“It’s given me determination to fight tougher and longer and simply double down efforts that frankly I’ve been putting lots into over the years,” Bouyer observed. “It has given me additional gas and bolstered in my mind that they jointly as a career and people need to center of attention on what’s appropriate and what’s simply in this society.”

commission participants said they're decided to make use of their position to assist CPAs make the profession greater distinctive and inclusive. They shared some of their options for CPAs to bring about alternate:

Get proficient. The AICPA substances page has archived webcasts and other tips on range-connected concerns. An inquiring mind and an internet search engine can put you involved with many more resources.

“i'm a brown Latina immigrant, and that i could be stretching the truth if I talked about I wholly keep in mind how my Black colleagues feel,” said Jenny Herrera, CPA, CGMA, a accomplice in Citrin Cooperman’s D.C. Metro workplace and local co-lead of the enterprise’s Empowering range and Gender Equality (CC edge) Committee whose three-year time period on the AICPA fee ended in June. “We should take significant motion and have intricate conversations round their ameliorations. they can all take steps to undertaking better compassion.”

opportunities abound to find out about this topic. Sharon Bryson, CEO of the North Carolina affiliation of CPAs whose term on the fee also recently ended, mentioned her firm is paying for training materials on racism, range, and inclusion to be shared with NCACPA participants.

“We’re simply attempting to position it greater in the forefront as a result of these conversations must ensue,” she noted.

in the meantime, Black and African American participants of the career can take skills of this probability to speak with colleagues who're members of what Bouyer calls the “Frozen core.” These are people who aren’t Black or African American and want to assist but don’t know the way.

“there are lots of individuals that are panic because they are saying they don’t need to do the incorrect element or say the wrong thing,” Bouyer talked about. “That leads them to be that Frozen middle. I do consider this is a chance for us to assist educate people.”

verify on co-worker's. Black and African American employees dwelling via this moment in heritage are experiencing various emotions. showing empathy by means of quite simply asking how they are feeling is a superb first step, Richards observed.

It’s important to be organized for anything their response might be, even though it’s: “I don’t want to discuss it.”

“someone may additionally or might also not be capable for those conversations,” Richards said. “So while you may well be going out on a limb to ask the query, believe in fact at ease that the adult you’re going to may additionally not be equipped for that conversation. but don’t let that be the handiest conversation. If I were to say to you that I’m no longer able to have that dialogue at the moment, that doesn’t mean to close you down and never necessarily ever come again.”

Bouyer spoke of it’s essential to bear in mind the raw emotion that Black colleagues have skilled for the previous month.

“I go through my periods of being numb, and i come lower back to it,” he talked about. “however I still need to do an outstanding job at work. I nonetheless have to placed on knowledgeable demeanor and a face to it. That’s not convenient since you can’t determine your feelings at the door the entire time, and with a video like that it turned into complicated.”

Lead with care and difficulty. a pretty good leader at this time will make efforts to raise a firm’s diversity and inclusion efforts, Herrera pointed out.

“This may be in the sort of verbal exchange, training, building, knowledgeable development, and talent acquisition programs,” she noted. “These efforts may still be concentrated on building an organization’s existing programs to foster a diverse and inclusive way of life. in case your organization does not have a diversity and inclusion program, the time to set up one is now.”

Conversations about racism may be uncomfortable, Richards pointed out, however an outstanding chief will discuss these issues in spite of the challenges.

“exhibit the behaviors they want everybody to model,” she observed. “which you can’t ask others to do behaviors that you just’re no longer willing to do your self.”

Be authentic. The NCACPA become dedicated sufficient to these concerns that it had hired a expert to help with diversity and inclusion in February, earlier than the latest events.

nonetheless, Bryson pointed out, the activities of the past month made her recognise how a whole lot greater work has to be done in this enviornment.

“i was unprepared as I started to learn greater about where they are as adverse to where i thought they had been,” she observed. “And instead of picking out to be ashamed of that, I’ve decided to show that reaction I’ve had on a really personal degree right into a getting to know probability and be the surest leader I can be for their crew and their company.”

Leaders during the profession are coming to the same cognizance, Richards stated. She encouraged them no longer to shy away from concerns and conversations that make them uncomfortable.

“Authentically are trying to interact with all and sundry,” she stated. “provide all and sundry opportunities to be a part of that dialog. If definite people are talking and others are not, ask them for his or her point of view or standpoint. interact everybody within the dialogue.”

Bryson changed into speakme with one CPA firm accomplice who changed into disillusioned with their personal failure to handle these concerns with personnel during the past.

“This equal particular person talked about, ‘so that it will by no means, ever happen to me once more,’” she noted. “There changed into an expression of regret about no longer doing it sooner. It’s that getting to know circumstance, that gaining knowledge of probability, and saying, ‘adequate, I’m going to deal with this, and i’m going to take care of it always and ever.’”

advocate in your sphere of have an effect on. those who aren't company managing companions or individuals of the C-suite still have an opportunity to create exchange.

companions and crew leaders can seem on their teams and see no matter if alternatives and properly assignments are being provided to distinct employees.

“Ask some questions,” Bouyer mentioned. “How distinctive is my account team? and the way inclusive is my account group? And that can come now not simply from the accomplice ranks but all the way down in the course of the managers, seniors, workforce.”

Richards advocates that personnel are trying to find out leaders at their establishments and businesses and inspire them to admire and tackle these considerations.

“For any CPA, I’d suggest you go to your supervisor, your leader, manager, HR, or diversity person,” she spoke of. “anyplace you're in that chain of command and with whom you feel relaxed, I motivate you to attain out to individuals that can support you get this subject matter on the agenda. It’s vital to discuss in their workspaces, principally now when work and lifestyles are even more entangled than ever before.”

Be open to transformation. Hiring in line with “fit” can result in the exclusion of distinct candidates who may also not be like other personnel at an organization.

“If they are looking to foster a racially simply, distinctive, and inclusive subculture, they have to trade their approach of creating a few of their personnel ‘fit into’ their organizations,” Herrera talked about. “quite they must focus on transforming their establishments to healthy all employees.”

In hiring, Bouyer talks about being watchful for a “alternative subculture and requirement” that may additionally cause the exclusion of distinctive candidates or hires.

“if you’re hiring a person in a job, is your selection why you’re hiring that grownup? Is it a practice? What in fact are the requirements?” he requested. “I consider it’s crucial to simply pause to reflect on your own company, your personal actions. I consider the small stuff you do can have a ripple impact.”

Be in charge and liable. placing out public and companywide statements supporting range and inclusion is crucial.

being attentive to personnel can assist them feel understood and protected. however this is also a time for motion and following via on concepts.

“management’s accountability in this career is to move all and sundry from the conversations we’re having at this time to accountability and action, and to be in a position to measure that,” Bryson stated. “we will confer with CPAs about what they’re doing of their establishments, but with out the action steps, and once again, the accountability, it’s not going to happen.”

Bouyer encourages CPAs to suppose about their legacies when they invent a plan of action. He believes participants of the profession won’t want to bear in mind that they stood on the sideline whereas these vital changes passed off.

“Down the street in case you’re talking about this moment within the old context, what function would you have played in the evolution and alter that have took place?” he pointed out. “what is going to you inform your children and your grandkids about your position during this moment? Did you just sit on the sidelines? Or had been you engaged? And did you actually make a difference?”

— Ken Tysiac ( is the JofA’s editorial director.

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Genesys [4 Certification Exam(s) ]
GIAC [17 Certification Exam(s) ]
Google [14 Certification Exam(s) ]
GuidanceSoftware [2 Certification Exam(s) ]
H3C [1 Certification Exam(s) ]
HDI [9 Certification Exam(s) ]
Healthcare [3 Certification Exam(s) ]
HIPAA [2 Certification Exam(s) ]
Hitachi [30 Certification Exam(s) ]
Hortonworks [5 Certification Exam(s) ]
Hospitality [2 Certification Exam(s) ]
HP [771 Certification Exam(s) ]
HR [4 Certification Exam(s) ]
HRCI [1 Certification Exam(s) ]
Huawei [34 Certification Exam(s) ]
Hyperion [10 Certification Exam(s) ]
IAAP [1 Certification Exam(s) ]
IAHCSMM [1 Certification Exam(s) ]
IBM [1547 Certification Exam(s) ]
IBQH [1 Certification Exam(s) ]
ICAI [1 Certification Exam(s) ]
ICDL [6 Certification Exam(s) ]
IELTS [1 Certification Exam(s) ]
IFPUG [1 Certification Exam(s) ]
IIA [3 Certification Exam(s) ]
IIBA [2 Certification Exam(s) ]
IISFA [1 Certification Exam(s) ]
Intel [2 Certification Exam(s) ]
IQN [1 Certification Exam(s) ]
IRS [1 Certification Exam(s) ]
ISA [1 Certification Exam(s) ]
ISACA [5 Certification Exam(s) ]
ISC2 [7 Certification Exam(s) ]
ISEB [25 Certification Exam(s) ]
Isilon [4 Certification Exam(s) ]
ISM [6 Certification Exam(s) ]
iSQI [9 Certification Exam(s) ]
ITEC [1 Certification Exam(s) ]
ITIL [1 Certification Exam(s) ]
Juniper [68 Certification Exam(s) ]
LEED [1 Certification Exam(s) ]
Legato [5 Certification Exam(s) ]
Liferay [1 Certification Exam(s) ]
Linux-Foundation [1 Certification Exam(s) ]
Logical-Operations [1 Certification Exam(s) ]
Lotus [66 Certification Exam(s) ]
LPI [25 Certification Exam(s) ]
LSI [3 Certification Exam(s) ]
Magento [3 Certification Exam(s) ]
Maintenance [1 Certification Exam(s) ]
McAfee [9 Certification Exam(s) ]
McData [3 Certification Exam(s) ]
Medical [70 Certification Exam(s) ]
Microsoft [413 Certification Exam(s) ]
Mile2 [3 Certification Exam(s) ]
Military [1 Certification Exam(s) ]
Misc [2 Certification Exam(s) ]
Motorola [7 Certification Exam(s) ]
MuleSoft [1 Certification Exam(s) ]
mySQL [4 Certification Exam(s) ]
NBSTSA [1 Certification Exam(s) ]
NCEES [2 Certification Exam(s) ]
NCIDQ [1 Certification Exam(s) ]
NCLEX [3 Certification Exam(s) ]
Network-General [12 Certification Exam(s) ]
NetworkAppliance [42 Certification Exam(s) ]
NetworkAppliances [1 Certification Exam(s) ]
NI [1 Certification Exam(s) ]
NIELIT [1 Certification Exam(s) ]
Nokia [8 Certification Exam(s) ]
Nortel [130 Certification Exam(s) ]
Novell [38 Certification Exam(s) ]
OMG [10 Certification Exam(s) ]
Oracle [317 Certification Exam(s) ]
P&C [2 Certification Exam(s) ]
Palo-Alto [6 Certification Exam(s) ]
PARCC [1 Certification Exam(s) ]
PayPal [1 Certification Exam(s) ]
PCI-Security [1 Certification Exam(s) ]
Pegasystems [19 Certification Exam(s) ]
PEOPLECERT [4 Certification Exam(s) ]
PMI [16 Certification Exam(s) ]
Polycom [2 Certification Exam(s) ]
PostgreSQL-CE [1 Certification Exam(s) ]
Prince2 [7 Certification Exam(s) ]
PRMIA [2 Certification Exam(s) ]
PsychCorp [1 Certification Exam(s) ]
PTCB [2 Certification Exam(s) ]
QAI [1 Certification Exam(s) ]
Qlik [2 Certification Exam(s) ]
QlikView [2 Certification Exam(s) ]
Quality-Assurance [6 Certification Exam(s) ]
RACC [1 Certification Exam(s) ]
Real-Estate [2 Certification Exam(s) ]
RedHat [8 Certification Exam(s) ]
RES [5 Certification Exam(s) ]
Riverbed [9 Certification Exam(s) ]
RSA [16 Certification Exam(s) ]
Sair [8 Certification Exam(s) ]
Salesforce [13 Certification Exam(s) ]
SANS [2 Certification Exam(s) ]
SAP [98 Certification Exam(s) ]
SASInstitute [15 Certification Exam(s) ]
SAT [2 Certification Exam(s) ]
SCO [10 Certification Exam(s) ]
SCP [6 Certification Exam(s) ]
SDI [3 Certification Exam(s) ]
See-Beyond [1 Certification Exam(s) ]
ServiceNow [1 Certification Exam(s) ]
Siemens [1 Certification Exam(s) ]
Snia [7 Certification Exam(s) ]
SOA [15 Certification Exam(s) ]
Social-Work-Board [4 Certification Exam(s) ]
Splunk [3 Certification Exam(s) ]
SpringSource [1 Certification Exam(s) ]
SUN [63 Certification Exam(s) ]
SUSE [1 Certification Exam(s) ]
Sybase [17 Certification Exam(s) ]
Symantec [137 Certification Exam(s) ]
Teacher-Certification [4 Certification Exam(s) ]
The-Open-Group [8 Certification Exam(s) ]
TIA [3 Certification Exam(s) ]
Tibco [18 Certification Exam(s) ]
Trainers [3 Certification Exam(s) ]
Trend [1 Certification Exam(s) ]
TruSecure [1 Certification Exam(s) ]
USMLE [1 Certification Exam(s) ]
VCE [7 Certification Exam(s) ]
Veeam [2 Certification Exam(s) ]
Veritas [34 Certification Exam(s) ]
Vmware [76 Certification Exam(s) ]
Watchguard [1 Certification Exam(s) ]
Wonderlic [2 Certification Exam(s) ]
Worldatwork [3 Certification Exam(s) ]
XML-Master [3 Certification Exam(s) ]
Zend [6 Certification Exam(s) ]

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