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How to book the Financial Accounting and Reporting (FAR) Exam

Follow the steps mentioned below to book the Financial Accounting and Reporting FAR exam test:

• Step 1: Determine your eligibility from the NASBA website by clicking here
• Step 2: Select a jurisdiction where you want to become a licensed CPA
• Step 3: Access the application by clicking here
• Step 4: Complete the application and submit all required documents
• Step 5: Schedule your exam by following this link

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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:

• Statement of comprehensive income
• Statement of cash flows
• Notes to financial statements
• Financial statements of employee benefit plans
• Conceptual framework and standard-setting for business and non-business entities
• Balance sheet/ statement of financial position
• Going concerned
• Statement of activities
• General-purpose financial statements: nongovernmental, not-for-profit entities
• Discontinued operations
• Statement of changes in equity
• Income statement/ statement of profit or loss
• General-purpose financial statements: for-profit business entities
• Public company reporting topics (U.S. SEC reporting requirements, earnings per share, and segment reporting)
• Statement of financial position
• Special purpose frameworks
• Consolidated financial statements (including wholly-owned subsidiaries and noncontrolling interests)

Area 2 - Select Financial Statement Accounts (30-40%)

Objectives covered by this section:

• Trade receivables
• Long-term debt (financial liabilities)
• Retirement benefits
• Investments
• Payables and accrued liabilities
• Stock compensation (share-based payments)
• Financial assets at amortized cost
• Intangible assets - goodwill and other
• Equity method investments
• Revenue recognition
• Financial assets at fair value
• Equity
• Property, plant, and equipment
• Inventory
• Notes and bonds payable
• Cash and cash equivalents
• Income taxes
• Compensated absences
• Debt covenant compliance

Area 3 - Select Transactions (20-30%)

Objectives covered by this section:

• Differences between IFRS and U.S. GAAP
• Contingencies and commitments
• Nonreciprocal transfers
• Derivatives and hedge accounting (e.g. swaps, options, forwards)
• Leases
• Foreign currency transactions and translation
• Accounting changes and error corrections
• Business combinations
• Subsequent events
• Research and development costs
• Fair value measurements
• Software costs

Area IV - State and Local Governments (5-15%)

Objectives covered by this section:

• Fund balances and components thereof
• Capital assets and infrastructure assets
• Format and content of the financial section of the comprehensive annual financial report (CAFR)
• Notes to financial statements
• Governmental funds financial statements
• Required supplementary information (RSI) other than management's discussion and analysis
• State and local government concepts
• Financial reporting entity, including blended and discrete component units
• Budgetary accounting and encumbrances
• Deriving government-wide financial statements and reconciliation requirements
• Other financing sources and uses
• Expenditures and expenses
• Fiduciary funds financial statements
• Proprietary funds financial statement
• Typical items and specific types of transactions and events: measurement, valuation, calculation, and presentation in governmental entity financial statements
• Interfund activity, including transfers
• Budgetary comparison reporting
• Management's discussion and analysis
• Net position and components thereof
• Nonexchange revenue transactions
• General and proprietary long-term liabilities
• Government-wide financial statements
• Special items

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