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AICPA FAR : CPA Financial Accounting and Reporting Exam

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Exam Number : FAR
Exam Name : CPA Financial Accounting and Reporting
Vendor Name : AICPA
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FAR exam Format | FAR Course Contents | FAR Course Outline | FAR exam Syllabus | FAR exam Objectives


Within the Blueprints- you will find the following information for each exam section:
Content organized by Area- Group and syllabu 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 trial 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 exam 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 exam structure.

Exam Item Types
You will be tested during the CPA exam 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 exam 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 exam 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 exam 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 exam 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 exam 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 exam 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 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)
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 syllabu 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- syllabu or related skill level will be assessed on the Exam. For example- the syllabu titled “Notes to financial statements” in Area I includes two tasks that are intended to encompass the required disclosures for any syllabu 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 syllabu of the FASB Accounting Standards Codification. The number of tasks included in the blueprint for this

group and this syllabu 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 subjects 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 syllabu 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 exam 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 exam 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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AICPA and NASBA liberate CPA Evolution model Curriculum | FAR Real exam Questions and exam Questions

ny & NASHVILLE, Tenn.--(company WIRE)--The American Institute of CPAs (AICPA) and national association of State Boards of Accountancy (NASBA) today released the CPA Evolution model Curriculum. the new Curriculum is the next step in the CPA Evolution initiative, a joint AICPA/NASBA initiative it really is reworking the CPA licensure mannequin to respect the abruptly altering knowledge and talents the accounting career requires.

The Curriculum turned into developed with the aid of the CPA Evolution mannequin Curriculum project Forces, a gaggle of more than forty volunteers from across the career, including faculty from small colleges to tremendous universities, CPAs in public practice in addition to company and industry, and representatives from State Boards of Accountancy. The Curriculum reflects the talents newly licensed CPAs need within the present follow environment and serves as a mannequin of how an accounting program may transition to put together CPA candidates for the Core + Disciplines CPA exam structure to be able to look at various these skills beginning in 2024.

“A ability set that includes a deep knowing of latest and rising applied sciences is standard for CPAs getting into the occupation. They heard from accounting school that they want perception into the way to begin transitioning their programs to teach these skills and more advantageous prepare students for the arrival Core + Disciplines CPA examination constitution,” spoke of Sue Coffey, CPA, CGMA, CEO of Public Accounting - American Institute of CPAs. “We’re excited to share the work of their task Forces and support school prepare a powerful pipeline of future CPAs who will continue to meet the altering wants of U.S. capital markets.”

The Curriculum release follows a fresh AICPA and NASBA analyze highlighting gaps between existing accounting curriculum and subject matters Tested below the brand new CPA exam. That file found mixed effects for educational coverage of latest and emerging technology issues throughout accounting classes nationwide. The launch of the Curriculum is timely as rising faculty sophomores enrolled in accounting classes these days should be among the many first to take the up to date version of the CPA exam when it launches in 2024.

“The CPA Evolution mannequin Curriculum is a helpful aid tool for the educational community via offering examples of a way to tackle any gaps between what is presently taught through accounting classes nowadays and the advantage and advantage anticipated of CPAs via their consumers in a expertise-driven atmosphere,” pointed out Dan Dustin, CPA, NASBA vice president of State Board family members. “The Curriculum includes an array of accounting content material including normal accounting content of fiscal/managerial accounting, audit, and tax, but it surely also comprises content material within the increasingly important expertise-linked areas of accounting facts analytics, digital acumen and IT governance and controls,” he persevered.

CPA Evolution model Curriculum Design and desires

The Curriculum is meant to deliver an accounting student with the expertise and skills required of a newly licensed CPA to meet the needs of the industry and protect the public activity. As such, it's focused on a school accounting curriculum that's principal to making ready future CPAs.

The Curriculum is made out of two leading components:

  • specific content material suggestions with modules, subject matters and getting to know ambitions. This element covers the content critical for all future CPAs (the Core), as well as the three separate Disciplines (enterprise analysis and Reporting, guidance methods and handle, Tax Compliance and Planning).
  • Examples of course structuring.
  • based on remarks from school on the task Forces, the Curriculum suggests courses where the content may be taught as well as time estimates for guideline on each subject matter.

    The Curriculum presumes that college students will complete pre-requisite coursework in principles of economic accounting, principles of managerial accounting and imperative company classes such as economics, finance, and company law. It does not specify no matter if content material should be lined at an undergraduate or graduate degree, as this may differ in response to each and every particular person accounting program.

    When reviewing thoughts appearing in the Curriculum, each and every accounting program may still trust their enjoyable instances, together with their strategic targets and the needs of employers hiring their graduates.

    substances for faculty and college Accounting classes

    to notify faculty accounting professors, lecturers and different key stakeholders, the Curriculum is being presented in element today and day after today with the aid of contributors of the CPA Evolution mannequin Curriculum assignment Forces at a launch experience co-hosted with the American Accounting affiliation with more than 2,000 accounting school and different stakeholders registered.

    The Curriculum is one in all a few materials the AICPA and NASBA offer to help educators tackle emerging concerns and technologies within the career and improved align training with practice.

    AICPA has developed resources to aid collegiate accounting classes enhance their curricula because the career transitions beneath the CPA Evolution licensure mannequin. The academic useful resource Hub offers case studies, assignments, readings and webinars to help accounting educators ensure college students are organized to fulfill the wants of the marketplace.

    The college Hour webcast series will deliver CPA Evolution fame updates and discussions on how to combine facts analytics, systems and technology-connected subject count number, and different rising issues central to the CPA occupation into accounting curricula.

    NASBA continues to deliver Boards of Accountancy, and the academic communities within their states, ongoing guide via informational videos and webinars as they replace their statutes and regulations to adopt the CPA Evolution model.

    up to date commonly asked questions (FAQs) on the CPA Evolution model Curriculum can be found on ThisWayToCPA and additional information on the Core + Disciplines examination structure is attainable during this weblog submit.

    About NASBA

    on the grounds that 1908, the country wide affiliation of State Boards of Accountancy (NASBA) has served as a forum for the nation’s Boards of Accountancy, which administer the Uniform CPA Examination, license greater than 650,000 certified public accountants and alter the observe of public accountancy in the united states. NASBA’s mission is to enhance the effectiveness and develop the normal pastimes of the Boards of Accountancy in assembly their regulatory obligations. The association promotes the trade of assistance among accountancy boards, serving the wants of the 55 U.S. jurisdictions. NASBA is headquartered in Nashville, TN, with a satellite workplace in ny, new york, an international laptop testing and phone center in Guam and operations in San Juan, PR. To gain knowledge of more about NASBA, talk over with www.nasba.org.

    concerning the American Institute of CPAs

    The American Institute of CPAs (AICPA) is the realm’s largest member affiliation representing the CPA career, with more than 428,000 individuals in the u.s. and worldwide, and a heritage of serving the general public pastime on the grounds that 1887. AICPA members symbolize many areas of practice, together with enterprise and business, public observe, executive, education and consulting. The AICPA units moral standards for its members and U.S. auditing standards for private corporations, no longer-for-income agencies, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future skill and drives carrying on with training to strengthen the vitality, relevance and pleasant of the occupation.


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