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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
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 subject 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 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 subject 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, subject or related skill level will be assessed on the Exam. For example, the subject titled “Notes to financial statements” in Area I includes two tasks that are intended to encompass the required disclosures for any subject 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 subject of the FASB Accounting Standards Codification. The number of tasks included in the blueprint for this

group and this subject 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 subject 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 CPA education

AICPA Accepting applications for Minority Accounting Scholarships | FAR exam braindumps and PDF Dumps

The American Institute of CPAs (AICPA) is now accepting functions for the inner most companies practice area (PCPS) George Willie Ethnically distinctive pupil Scholarship and Internship software.

The George Willie program gives a scholarship and internship to 10 ethnic minority accounting college students who intend to pursue their CPA licensure. The AICPA doubled the number of scholarships and internships available in 2021. The program gives ten college students up to $10,000 every with their remaining tutorial 12 months training, while ten PCPS member firms each sponsor a scholar for an internship all the way through the 2022 busy season (January to April).

The taking part member companies are: 

  • Abdo, Eick & Meyers, Edina/Minneapolis and Mankato, MN
  • Anders CPA, St. Louis, MO
  • Bowman & enterprise, Voorhees Township, NJ
  • Dean Dorton, Lexington and Louisville, KY
  • Gumbiner Savett Inc., Santa Monica, CA
  • King & Oliason, Seattle, WA
  • Krost CPAs, Pasadena and Woodland Hills, CA
  • Moss Adams, All office areas.
  • O'Connor & Drew P.C., Braintree, MA
  • SobelCo, Livingston and Woodcliff Lake, NJ
  • “The George Willie software is a superb probability for college kids to gain an realizing of the potential and potential they’ll want in a career as a CPA,” pointed out Carl Peterson, CPA, CGMA, affiliation international of certified expert Accountants’ vice chairman of small enterprise interests. “These internships additionally enable the corporations an opportunity to diversify their recruiting efforts and appeal to gifted accounting students.”

    This program become created in honor of George Willie, CPA, CGMA, a former chair of AICPA’s PCPS executive Committee and the AICPA Minority Initiatives Committee. all through his greater than 35-12 months profession, Willie has promoted the merits of a career in accounting to students and young professionals in pursuit of the CPA license.

    The Willie application is open to racial and ethnic minority college students pursuing an undergraduate or graduate degree in accounting or an accounting-linked important. applicants also ought to plan to take a seat for the CPA exam. Full eligibility necessities and selection standards are accessible on-line.

    “The AICPA is committed to bolstering range and inclusivity in the occupation, and here's a good car for doing that,” talked about Shelly Frazier, CPA, senior supervisor of diversity and Inclusion. “no longer simplest does the program aid minority students finished their accounting schooling, however connects students and companies, providing the capabilities to build lifestyles-long careers.”

    This software is one of how the AICPA is working to increase the pipeline of skill entering the occupation. The U.S. census tasks that minorities will comprise the vast majority of the population within the U.S. by means of 2045. A greater different and inclusive occupation may be better outfitted to tackle the shifts in entrepreneurial capital which will effect from these altering demographics. And studies have proven that organizations that are extra distinctive function more advantageous than their peers.

    students attracted to the software can talk over with aicpa.org/pcpsscholarship for greater suggestions. functions are at the moment open, with a cut-off date of April 16, 2021.

    The AICPA is committed to promotion diversity and inclusion within the profession, and this is one of several classes committed towards that effort. The Accounting Inclusion Maturity model is a device to aid corporations verify and measure their diversity and inclusion efforts. The Accounting scholars leadership Workshop is an annual, all-expenses-paid experience for racial and ethnic minority college students to support their professional and networking competencies, whereas helping them to put together for a career in accounting. The AICPA Scholarship Award for Minority Accounting college students, a part of the AICPA Legacy students software, offers funding to miraculous minority college students researching accounting.

    The AICPA is also offering workshops to support firms and agencies to tackle variety and inclusion considerations via complicated conversations inside the office.


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