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Financial Accounting and Reporting (FAR) Exam Certification Path
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Want to pass FAR fast? Then you'll need to study for 20 hours a week so you can finish your review in 6-8 weeks.
Can't fit that much study time into your routine? Then try studying for 15 hours a week. Doing so will prepare you in 8-11 weeks.
finally, if you can only study for 10 hours a week, you'll be ready for FAR in 12-16 weeks.
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Introduction to Financial Accounting and Reporting (FAR) Exam
The Standardized CPA Evaluation is the exam portion of the Financial Accounting and Reporting (FAR) which measures the expertise and skills that a newly qualified CPA must demonstrate in the financial accounting and reporting systems used by enterprise (public and non-public), non-profit, and state and local government agencies.
In the FAR portion of the test, the examination contains the requirements and regulations provided by:
- 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)
- Financial Accounting Standards Board (FASB)
The FAR section consists of questions that emphasize the conceptual structure and financial reporting, the selection of accounts of financial statements, the selection of transactions, and the application of state and local governments to accounting work. These sections can be overviewed from the FAR practice test. References at the end of this introduction provide a list of guidelines and regulations provided by these bodies and other reference materials that are available for evaluation in the FAR portion of the review.
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AICPA FAR Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Select Financial Statement Accounts | 30–40% | - Cash, receivables, inventory, investments - Property, plant and equipment, intangibles - Payables, debt, equity, revenue recognition - Compensation, benefits and income taxes |
| Topic 2: State and Local Governments | 5–15% | - Governmental financial statements and reporting models - Fund accounting and modified accrual basis - GASB standards and disclosure requirements |
| Topic 3: Select Transactions | 20–30% | - Foreign currency, accounting changes and errors - Derivatives, hedging and fair value measurements - Contingencies, R&D and subsequent events - Leases, business combinations and consolidations |
| Topic 4: Conceptual Framework, Standard-Setting and Financial Reporting | 25–35% | - Conceptual framework and standard-setting process - General-purpose financial statements for for-profit entities - Not-for-profit and public company reporting - Employee benefit plan financial statements |
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