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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
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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 demo 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 25�35%
II. Select Financial Statement Accounts 30�40%
III. Select Transactions 20�30%
IV. State and Local Governments 5�15%

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.

cpa-exam-sections
Breaks
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 courses 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.
Analysis
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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redesign your closing assessments to definitely promote gaining knowledge of | FAR Test Prep and Questions and Answers

If there’s one factor on which academics and college students can agree, it is that remaining checks are the final step earlier than a well-merited spoil. however a few years ago, Joe Hoyle, an associate professor of accounting on the school of Richmond, all started to ask yourself if the arduous checks have been becoming a bad conclusion to a fine semester.

He knew that college students were frantically attempting to memorize — often on the ultimate minute — each reality, system, and definition they realized during the semester comfortably to ace the exam, as an alternative of viewing the method as a way to show off their gaining knowledge of. “The college students often left discouraged,” he recalled. “The ultimate test felt like a ‘downer,’ and i didn’t like that category of conclusion for my route.”

So he tried anything distinct: as a substitute of letting his students bet what would be on the examine, Hoyle gave them questions that came from fabric lined past in the semester, to permit them to put together.

The change in approach worked, he pointed out: After he adopted it, “clearly, the remaining examination grew to be a researching process.”

Christine Cheng, Ph.D., an assistant professor of accountancy on the institution of Mississippi, calls the procedure of frenzied researching some students undergo “cram and dump.” It doesn’t serve college students well as a result of they don’t in reality study cloth designed to benefit them for years to come, she observed. They “are on no account going to have greater time than while in college to learn the foundational potential as a way to serve them right through the profession,” she pointed out.

To make sure, last exams have a purpose. They aid faculty consider how neatly they have taught and supply incentive for college students to live engaged all through the semester. They make certain that “college students have developed an information and knowing of every thing taught in a route,” stated Matthew Hutchens, J.D., a lecturer of accountancy on the university of Illinois at Urbana-Champaign.

For these factors, remaining tests aren’t going anywhere, however they’re increasingly “relocating from an emphasis on remembering and understanding to focusing greater on definitely examining and making use of rules to precise-world fact patterns,” Hutchens spoke of. as an instance, instead of simply asking no matter if a payment made by means of a taxpayer is deductible, faculty may supply college students a case look at or a simulation-based question about movements a taxpayer took over the course of the yr, then ask students to identify expertise concerns, investigate the resulting tax consequences, and/or get a hold of observe-up questions or tips that could aid the customer increase their result, he noted.

“This classification of essential thinking is helpful for both the precise world when students get out into apply and additionally for the CPA examination, which tests many vital courses at these higher cognitive levels,” Hutchens observed.

listed below are steps which you can take to make sure your ultimate tests spark studying:

supply advice on what to analyze. As outlined previous, Hoyle offers college students around 25 questions to examine from about every week before the examination. He warns students that, whereas the ideas the questions cowl could be the equal as they learned all the way through the semester, at least one variable should be distinctive: A personal loan of $a hundred,000 might develop into a loan of $200,000 or a purchaser may become a vendor, as an instance. This makes it possible for their studying to flow beyond “making an attempt to wager at themes or bear in mind hundreds of pages of fabric, plenty of which might now not even appear on the exam,” he stated.

offer practice tests. while textbook publishers now make test questions and solutions available to faculty who use their books, designing your own check puts you in control of the questions and format, and allows you to center of attention on belongings you deem important. Hutchens writes a brand new ultimate every semester and makes the ancient assessments attainable to college students for follow. This method offers students “more substances to put together for the current 12 months’s examination, and that i have discovered that college students emerge as gaining knowledge of greater and performing greater on the real last as soon as they have had a chance to take a practice exam,” he defined.

permit notes. Some professors eschew the inspiration of closed-publication checks in prefer of allowing outside cloth. “My tests are open-ebook because the precise world is open-publication,” Hutchens referred to. “For tax, principally, i would not ever advise my college students to deliver solutions they have been doubtful about to a shopper without searching them up, so it seems just like the same may still follow to checks.”

What’s greater, he talked about, because college students know the tests are timed, they work to master the majority of the material in order that they don’t waste effective check time looking up movements issues. “college students recognize that time is a helpful resource,” he stated. “So, even though they might bring in each PowerPoint slide I’ve used or be aware that they’ve taken, they understand that quantity of fabric isn’t going to be advantageous.” What works in its place, he talked about, is for them to create “a concise outline or abstract of what they’ve discovered that they can directly consult with.”

Add a assignment. To permit college students to showcase what they’ve discovered, some professors make the last test a challenge or, like Hutchens, add a last undertaking, reminiscent of a tax return for a hypothetical customer or a nexus analyze for a fictional company, as a complement. “ultimate initiatives are effective as a result of however they can also now not assess as huge more than a few cloth, they could add layers of challenges and nuance that are not possible in an exam,” he referred to.

believe additional credit score. finally, accept as true with offering added aspects that may relieve one of the vital force of scoring well on the last examination whereas providing students the possibility to be taught in a special manner. Cheng offers restricted added credit opportunities to encourage college students to attend pursuits held by using her department that feature exceptional audio system, while Hutchens these days begun giving credit if college students utilize his workplace hours after the midterm is graded to talk about the complications or ideas they missed.

Hoyle, in the meantime, sends his college students outdoor the lecture room. He presents up to five features on the ultimate examination for traveling an inventory of preapproved local landmarks and websites, together with the James River Park, the Richmond Ballet, the Edgar Allan Poe Museum, or the Virginia Holocaust Museum. About 70% of his college students participate, and his workplace wall is full of photos of his college students on the sites.

“Most americans would tell you that’s now not the aim of an accounting class. i'd argue it really is the intention,” he said. “you can be trained accounting rules and you may be a good accountant, but you need to have a lifestyles. I desire them to have a happy existence.”

— break of day Wotapka is a contract writer based in Georgia. To comment on this text or to indicate an idea for an additional article, contact senior editor Courtney Vien at Courtney.Vien@aicpa-cima.com.

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SASInstitute [15 Certification Exam(s) ]
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