Reading Time: 10 mins | Publish Date: 12 Apr 2024 | Update Date: 19 Apr 2024
How to Prepare For Financial Accounting and Reporting (FAR) Exam
Preparation Guide for Financial Accounting and Reporting (FAR) Exam
Introduction
The Financial Accounting and Reporting FAR exam test is part of the uniform CPA examination and is administered by the American Institute of Certified Public Accountants (AICPA). The American Institute of Certified Public Accountants (AICPA) is the United States national professional association of Certified Public Accountants (CPAs), with more than 418,000 members in business and industry, public practice, government, education, student affiliates, and foreign associates in 143 countries. Established in 1887, the association sets ethical guidelines for audits of private businesses, non-profit organizations, federal, state, and local governments for the profession and U.S. auditing standards. It also establishes the Standardized CPA Test and rates it. The AICPA has offices in New York City; Durham, NC; Washington DC; and Ewing, NJ.
For practitioners aspiring to become CPAs, the Standardized Certified Public Accountant test is a credentialing exam. It is graded and governed by the American Institute of Certified Public Accountants (AICPA) and by the National Association of State Accountancy Boards (NASBA).
This exam guide is intended to get you to know about the exam details and help you to prepare for the Financial Accounting and Reporting FAR exam test successfully. This guide includes information on the certification test target audience, recommended preparation FAR dumps and documentation, and a full list of exam targets, all to help you obtain a passing grade. To increase your chances of passing the test, AICPA strongly recommends a mix of on-the-job experience, course attendance, and self-study.
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:
- 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)
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.
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:
- Conceptual framework and standard-setting for business and non-business entities
- General-purpose financial statements: for-profit business entities
- Balance sheet/ statement of financial position
- Income statement/ statement of profit or loss
- Statement of comprehensive income
- Statement of changes in equity
- Statement of cash flows
- Notes to financial statements
- Consolidated financial statements (including wholly-owned subsidiaries and noncontrolling interests)
- Discontinued operations
- Going concerned
- General-purpose financial statements: nongovernmental, not-for-profit entities
- Statement of financial position
- Statement of activities
- Public company reporting topics (U.S. SEC reporting requirements, earnings per share, and segment reporting)
- Financial statements of employee benefit plans
- Special purpose frameworks
Area 2 — Select Financial Statement Accounts (30–40%)
Objectives covered by this section:
- Cash and cash equivalents
- Trade receivables
- Inventory
- Property, plant, and equipment
- Investments
- Financial assets at fair value
- Financial assets at amortized cost
- Equity method investments
- Intangible assets – goodwill and other
- Payables and accrued liabilities
- Long-term debt (financial liabilities)
- Notes and bonds payable
- Debt covenant compliance
- Equity
- Revenue recognition
- Compensated absences
- Retirement benefits
- Stock compensation (share-based payments)
- Income taxes
Area 3 — Select Transactions (20–30%)
Objectives covered by this section:
- Accounting changes and error corrections
- Business combinations
- Contingencies and commitments
- Derivatives and hedge accounting (e.g. swaps, options, forwards)
- Foreign currency transactions and translation
- Leases
- Nonreciprocal transfers
- Research and development costs
- Software costs
- Subsequent events
- Fair value measurements
- Differences between IFRS and U.S. GAAP
Area IV — State and Local Governments (5-15%)
Objectives covered by this section:
- State and local government concepts
- Format and content of the financial section of the comprehensive annual financial report (CAFR)
- Government-wide financial statements
- Governmental funds financial statements
- Proprietary funds financial statement
- Fiduciary funds financial statements
- Notes to financial statements
- Management’s discussion and analysis
- Budgetary comparison reporting
- Required supplementary information (RSI) other than management’s discussion and analysis
- Financial reporting entity, including blended and discrete component units
- Deriving government-wide financial statements and reconciliation requirements
- Typical items and specific types of transactions and events: measurement, valuation, calculation, and presentation in governmental entity financial statements
- Net position and components thereof
- Fund balances and components thereof
- Capital assets and infrastructure assets
- General and proprietary long-term liabilities
- Interfund activity, including transfers
- Nonexchange revenue transactions
- Expenditures and expenses
- Special items
- Budgetary accounting and encumbrances
- Other financing sources and uses
Who should take the Financial Accounting and Reporting (FAR) Exam
Candidates must see the FAR dumps pdf to see if they are interested in the contents. People who wish to become Financial Accounting and Reporting experts and explore the dynamic culture of this field to jump-start their certification and lifelong learning goals should take this exam. Many businesses prefer that their accountants are Financial Accounting and Reporting (FAR) certified. Applicants winning their FAR title will find themselves more hirable and will be better paid. To become eligible for the exam, a candidate must have completed a 120 program approved by NYSED. Also, they must have completed their bachelor’s degree with accounting as their major.
How to study the Financial Accounting and Reporting (FAR) Exam
There are several ways to prepare for the Financial Accounting and Reporting (FAR) Exam. AICPA’s official website provides tutorials on the exam content and also the sample FAR practice tests. These can be accessed via the “help” button against the sample tests provided on the website. Use the material on the internet to learn all the exam contents in detail and then take the practice sample tests through the AICPA website. To study for the Financial Accounting and Reporting (FAR) Exam, use the exam blueprints and study resources by accessing the links at the bottom of this document. Students are highly encouraged to join AICPA’s Certification community where they can join students from all over the world and learn together. FAR exam dumps have ensured a 100% pass rate over the years so students are highly recommended to find these dumps on the certification-questions website and then test their knowledge on FAR practice exams. These are the best study materials one can get. For further exam self-study materials, refer to the links down below.
Hover on to AICPA’s Website and take a look at study materials provided for the exam. Check for the topics mentioned in the Exam Outline section of this guide to review the online documentation, tip sheets, and user guides and study the details relevant to those topics. Refer to the links at the end of this document for more study material. As always, We recommend a combination of hands-on experience, completion of the training course, and self-study in the areas described in the Exam Outline section of this exam guide as preparation for this exam. After all sorts of study, test your understanding by taking the FAR practice test.
Financial Accounting and Reporting (FAR) Exam Certification Path
Generally, the more familiar you are with the FAR content, the less time you need to study, and the faster you can pass. So, how long will you need to study for FAR? Well, the best you can get is the FAR dumps that help you figure out what side of the study time spectrum you’re probably on via a deeper investigation into FAR’s content. You’ll find the content areas, groups, and topics of FAR in the FAR CPA Exam blueprints.
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.
So, you can use any one of these study schedules or do anything in between. That’s because of how fast you finish your FAR review depends on how much time you have to study in a week. But what’s important is that you study consistently so you can stay in study mode and stick to your exam schedule.
How much Financial Accounting and Reporting (FAR) Exam Cost
The total cost of the CPA exam is around USD 800 that includes four sections. For this particular Financial Accounting and Reporting (FAR) Exam, the cost is estimated to be USD 200. Hover on to the official website of AICPA and choose your state for more pricing information. Candidates will face other costs like buying the FAR dumps pdf and then practicing for the exam via the FAR practice exams.
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
What is the duration, language, and format of the Financial Accounting and Reporting (FAR) Exam
- Duration of Exam: 4 hours
- Passing score: 75
- Format: Multiple choice, Task-based simulations, research prompts
- Language of Exam: English
The benefit of obtaining the Financial Accounting and Reporting (FAR) Exam Certification
This qualification helps both new and seasoned accountants to test their qualifications, develop their abilities, and enhance their understanding of the overall discipline. Via their local state board, prospective applicants can learn more about the licensing process specifics and visit the NASBA website for information about the standardized CPA test. The growing demand for CPAs across the job market is motivated by many factors, so the trend is likely to continue soon. Accountants winning their FAR earn 10 percent more on average than non-FAR colleagues and have more chances to grow their careers. In job searching, being FAR certified can also be a big boon as it shows professional dedication and makes the candidate stand out from others. Among several other specialist fields, FAR certification demonstrates qualification for auditing, business strategy, bookkeeping, and forensic accounting. Becoming accredited opens the doors to hundreds of various career paths and is essential for foreign positions in particular.
Many accountants joining the profession are curious about the advantages of being Financial Accounting and Reporting (FAR) certified so that they can determine if the time and energy to undertake this achievement are worth devoting. The certification process may undoubtedly be rigorous and difficult, but for those employed in industry or finance, success offers some notable advantages. In the US, several states have their board that regulates the certification in their jurisdiction of public accountants.
Difficulty in Writing Financial Accounting and Reporting (FAR) Exam
One of the key problems faced by most candidates is to choose the right research materials for their exam preparation since they use the internet to find too much data that makes it difficult for them to trust, which would be helpful for them. FAR practice dumps are designed in such a way to make better preparatory material. Financial Accounting and Reporting (FAR) Exam is not an easier one and can turn out to be a very difficult certification if not well prepared. We always recommend studying the FAR exam dumps and then take the practice tests before actually appearing for the exam.
Refer to the links down below to access the study materials. In the accounting industry, any aspiring accountant who wants to sit for the FAR Exam must have significant post-secondary education. For most test managers, a bachelor’s degree from an accredited institution used to be enough. Applicants may, however, clear the exam with the right concentration and the right preparation material. Certification-questions have the most up-to-date FAR dumps.