FAR01 Videos and Testlets (FAR)

FAR01 Videos and Testlets (FAR)

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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 Exam 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)

The following table summarizes the content areas and the allocation of content tested in the FAR section of the Exam:

OUTLINE

Financial Accounting and Reporting (FAR)

Content Area   Allocation
Area I Conceptual Framework, Standard-Setting and Financial Reporting 25-35%
Area II Select Financial Statement Accounts 30-40%
Area III Select Transactions 20-30%
Area IV State and Local Government 5-15%

DETAILS

Financial Accounting and Reporting Details (FAR)

  1. Area I - Conceptual Framework, Standard-Setting and Financial Reporting (25-35%)
    1. Conceptual framework and standard-setting for business and non-business entities
    2. General-purpose financial statements: For-profit business entities
    3. General-purpose financial statements: Nongovernmental, not-for-profit entities
    4. Public company reporting topics (U.S. SEC reporting requirements, earnings per share and segment reporting)
    5. Financial statements of employee benefit plans
    6. Special purpose frameworks
  2. Area II - Select Financial Statement Accounts (30-40%)
    1. Cash and cash equivalents
    2. Trade receivables
    3. Inventory
    4. Property, plant and equipment
    5. Investments
    6. Intangible assets - goodwill and other
    7. Payables and accrued liabilities
    8. Long-term debt (financial liabilities)
    9. Equity
    10. Revenue recognition
    11. Compensation and benefits
    12. Income taxes
  3. Area III - Select Transactions (20-30%)
    1. Accounting changes and error corrections
    2. Business combinations
    3. Contingencies and commitments
    4. Derivatives and hedge accounting (e.g. swaps, options, forwards)
    5. Foreign currency transactions and translation
    6. Leases
    7. Non-reciprocal transfers
    8. Research and development costs
    9. Software costs
    10. Subsequent events
    11. Fair value measurements
    12. Differences between IFRS and U.S. GAAP
  4. Area IV - State and Local Government (5-15%)
    1. State and local government concepts
    2. Format and content of the financial section of the comprehensive annual financial report (CAFR)
    3. Deriving government-wide financial statements and recognition requirements
    4. Typical items and specific types of transactions and events: measurement, valuation, calculation and presentation in government entity financial statements

Each content area has a list of financial accounting topics which you must cover in order to be successful in the CPA Exam. Once you have registered in the course you will see a list of the online topics available for study (Use the Access Course Lessons tab above). Otherwise you can access the topics by clicking on the details tab above.

November 12, 2017 | |