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How to study the Financial Accounting and Reporting (FAR) Exam
There are several ways to prepare for the Financial Accounting and Reporting (FAR) Exam. AICPA's official website provides tutorials on the exam content and also the sample FAR practice exams. These can be accessed via the “help” button against the sample tests provided on the website. Use the material on the internet to learn all the exam contents in detail and then take the practice sample tests through the AICPA website. To study for the Financial Accounting and Reporting (FAR) Exam, use the exam blueprints and study resources by accessing the links at the bottom of this document. Students are highly encouraged to join AICPA's Certification community where they can join students from all over the world and learn together. FAR exam dumps have ensured a 100% pass rate over the years so students are highly recommended to find these exam dumps on the SurePassExams website and then test their knowledge on FAR practice exams. These are the best study materials one can get. For further exam self-study materials, refer to the links down below.
Hover on to AICPA's Website and take a look at study materials provided for the exam. Check for the topics mentioned in the Exam Outline section of this guide to review the online documentation, tip sheets, and user guides and study the details relevant to those topics. Refer to the links at the end of this document for more study material. As always, We recommend a combination of hands-on experience, completion of the training course, and self-study in the areas described in the Exam Outline section of this exam guide as preparation for this exam. After all sorts of study, test your understanding by taking the FAR practice test.
Topics of Financial Accounting and Reporting (FAR) Exam
The syllabus for the Financial Accounting and Reporting (FAR) part of the Certified Public Accountant (CPA) Exam can be found in the FAR exam dumps and is also listed below with detail of each area of concern and their topics:
Area 1 - Conceptual Framework, Standard-Setting and Financial Reporting (25-35%)
Objectives covered by this section:
- Financial statements of employee benefit plans
- General-purpose financial statements: for-profit business entities
- Balance sheet/ statement of financial position
- Statement of comprehensive income
- Statement of changes in equity
- Income statement/ statement of profit or loss
- Consolidated financial statements (including wholly-owned subsidiaries and noncontrolling interests)
- Notes to financial statements
- Statement of financial position
- Going concerned
- General-purpose financial statements: nongovernmental, not-for-profit entities
- Conceptual framework and standard-setting for business and non-business entities
- Special purpose frameworks
- Discontinued operations
- Public company reporting topics (U.S. SEC reporting requirements, earnings per share, and segment reporting)
- Statement of activities
- Statement of cash flows
Area 2 - Select Financial Statement Accounts (30-40%)
Objectives covered by this section:
- Equity method investments
- Financial assets at fair value
- Stock compensation (share-based payments)
- Retirement benefits
- Inventory
- Property, plant, and equipment
- Financial assets at amortized cost
- Income taxes
- Revenue recognition
- Equity
- Long-term debt (financial liabilities)
- Intangible assets - goodwill and other
- Payables and accrued liabilities
- Notes and bonds payable
- Debt covenant compliance
- Compensated absences
- Investments
- Cash and cash equivalents
- Trade receivables
Area 3 - Select Transactions (20-30%)
Objectives covered by this section:
- Nonreciprocal transfers
- Leases
- Research and development costs
- Derivatives and hedge accounting (e.g. swaps, options, forwards)
- Differences between IFRS and U.S. GAAP
- Subsequent events
- Contingencies and commitments
- Software costs
- Fair value measurements
- Accounting changes and error corrections
- Business combinations
- Foreign currency transactions and translation
Area IV - State and Local Governments (5-15%)
Objectives covered by this section:
- Other financing sources and uses
- Financial reporting entity, including blended and discrete component units
- Required supplementary information (RSI) other than management's discussion and analysis
- Deriving government-wide financial statements and reconciliation requirements
- Capital assets and infrastructure assets
- Budgetary comparison reporting
- Notes to financial statements
- Fund balances and components thereof
- Governmental funds financial statements
- Fiduciary funds financial statements
- Government-wide financial statements
- Interfund activity, including transfers
- State and local government concepts
- Format and content of the financial section of the comprehensive annual financial report (CAFR)
- Proprietary funds financial statement
- Nonexchange revenue transactions
- General and proprietary long-term liabilities
- Budgetary accounting and encumbrances
- Expenditures and expenses
- Typical items and specific types of transactions and events: measurement, valuation, calculation, and presentation in governmental entity financial statements
- Management's discussion and analysis
- Special items
- Net position and components thereof
AICPA FAR Exam Overview:
| Certification Vendor: | AICPA / NASBA |
|---|---|
| Exam Name: | CPA Exam – Financial Accounting and Reporting (FAR) |
| Exam Number: | CPA-FAR |
| Available Languages: | English |
| Exam Price: | USD 250–300 per section (varies by jurisdiction) |
| Related Certifications: | CPA Business Analysis and Reporting (BAR) CPA Audit (AUD) CPA Regulation (REG) |
| Passing Score: | 75 (on a 0–99 scaled score) |
| Exam Duration: | 240 minutes |
| Real Exam Qty: | Approximately 50–60 MCQs + Task-Based Simulations (TBS) |
| Exam Format: | Task-Based Simulations (TBS), Multiple Choice Questions (MCQ) |
| Certificate Validity Period: | 18 months (credit window after passing) |
| Recommended Training: | AICPA Official CPA Exam Resources Becker CPA Review (FAR Course) |
| Exam Registration: | NASBA CPA Exam Services AICPA CPA Exam Blueprints |
| Sample Questions: | AICPA FAR Sample Questions |
| Exam Way: | Computer-based testing at Prometric test centers |
| Pre Condition: | No formal prerequisite to sit for FAR, but CPA licensure generally requires 150 semester hours of education and state-specific eligibility requirements. |
| Official Syllabus URL: | https://www.aicpa-cima.com/resources/article/cpa-exam-blueprints |
What is the duration, language, and format of the Financial Accounting and Reporting (FAR) Exam
- Language of Exam: English
- Duration of Exam: 4 hours
- Passing score: 75
- Format: Multiple choice, Task-based simulations, research prompts
Difficulty in Writing Financial Accounting and Reporting (FAR) Exam
One of the key problems faced by most candidates is to choose the right research materials for their exam preparation since they use the internet to find too much data that makes it difficult for them to trust, which would be helpful for them. FAR practice exam dumps are designed in such a way to make better preparatory material. Financial Accounting and Reporting (FAR) Exam is not an easier one and can turn out to be a very difficult certification if not well prepared. We always recommend studying the FAR exam dumps and then take the practice exams before actually appearing for the exam.
Refer to the links down below to access the study materials. In the accounting industry, any aspiring accountant who wants to sit for the FAR Exam must have significant post-secondary education. For most test managers, a bachelor's degree from an accredited institution used to be enough. Applicants may, however, clear the exam with the right concentration and the right preparation material. SurePassExams have the most up-to-date FAR exam dumps.
AICPA FAR Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Select Financial Statement Accounts | 30–40% | - Consolidations and business combinations - Equity, EPS, and share-based payments - Pensions and post-employment benefits - Revenue recognition (ASC 606) - Leases (ASC 842) |
| Conceptual Framework, Standard-Setting, and Financial Reporting | 25–35% | - Disclosure requirements - Conceptual framework and GAAP hierarchy - Financial statement presentation |
| State and Local Government Accounting | 20–25% | - Fund accounting and governmental financial statements - Modified accrual vs full accrual accounting - Budgetary accounting |
| Not-for-Profit (NFP) Accounting | 10–15% | - Revenue and contribution recognition - NFP financial statements |
By Edwina
