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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, NASBA put up revised CPA Evolution mannequin Curriculum | FAR Free exam PDF and PDF Braindumps

The AICPA and the country wide affiliation of State Boards of Accountancy (NASBA) posted a revised CPA Evolution model Curriculum on Friday based on remarks from users of the aid and other involved parties.

contributors of the profession instructed the AICPA and NASBA that the curriculum aid can be more advantageous via a deeper dive in certain areas. They additionally got counsel on the way to enrich the readability of certain themes and discovering aims.

The result of all this helpful comments is contemporary replace, which refreshes the aid that became published previous this yr.

In June, the AICPA and NASBA launched the CPA Evolution mannequin Curriculum. The aim changed into to assist college as they are seeking for to transition their classes to replicate the new Core + Disciplines CPA licensure model promoted through the CPA Evolution initiative. greater than forty volunteer area-matter certified labored to enhance this resource, which was designed to prepare students pursuing CPA licensure. They launched the curriculum useful resource all over a free, digital adventure with over 1,500 attendees.

considering the fact that the launch, the curriculum resource has been downloaded over 3,500 instances. To investigate its affect, they conducted a number of surveys of college and companies. They discovered that:

  • 83% of enterprises surveyed with eleven or extra CPAs observed that if school accounting programs have been aligned with CPA Evolution, their hiring of accurate graduates from accounting classes would probably boost, accounting software graduates can be considered greater valuable than they are nowadays, or both.
  • 79% of college surveyed agreed that the CPA Evolution mannequin Curriculum aids accounting courses in knowing and meeting the evolving needs of follow.
  • 87% of college surveyed listed the CPA Evolution model Curriculum as one of the vital helpful materials in updating their curricula.
  • The AICPA and NASBA additionally labored together to request remarks on the aid via their launch event, greater than a dozen presentations to educators, and direct outreach to the academic community.

    These are essentially the most typical questions they bought:

    Is the CPA Evolution mannequin Curriculum obtainable in Excel structure?

    The properly request from school changed into to make the curriculum aid accessible in an Excel structure to assist them map it to their own curricula. In July, one month after the launch of the PDF edition of the aid, they posted an Excel complement.

    Are the AICPA and NASBA enticing with textbook publishers?

    whereas college advised us that they respect the curriculum resource and the a variety of case reviews, articles, and video clips attainable through the tutorial resource Hub, they wondered whether textbooks can be up to date to reflect the fabric it truly is most primary to apply. they are happy to report that they have had ongoing communicate with a few of the main textbook providers and that they and their authors are committed to updating their choices to satisfy the needs of college and put together students for the follow atmosphere.

    by means of naming the curriculum aid the "CPA Evolution model Curriculum," are the AICPA and NASBA suggesting that every accounting software should still "model" its curriculum on its contents?

    No. as a result of tutorial associations have differing missions and targets, one instance of an accounting curriculum can not perhaps meet the needs of all such institutions.

    The CPA Evolution mannequin Curriculum is designed to be an aid for accounting courses interested in updating their curricula to align with the CPA Evolution initiative. It isn't meant to be a one-measurement-matches-all method for every program. Accounting classes may still use the resource as they deem applicable in response to their program's aims. To address any confusion concerning the useful resource's title, the AICPA and NASBA have updated their messaging, including adjustments to the resource itself, to make this as clear as feasible.

    Why turned into content material in certain subject-rely areas no longer addressed in improved depth?

    We bought numerous inquiries to this impact. for instance, they heard from leaders in the administration accounting neighborhood that skills relative to that body of competencies signify a necessary a part of the core skill set for all knowledgeable accountants, including these in public follow. They could not agree extra with this assessment. They also heard there are alternatives to enhance the curriculum useful resource by means of building upon the learning objectives that are at present covered. They recognize this feedback, have reviewed the strategies we've got bought, and have up to date the useful resource based on those distinct guidance, all whereas carrying on with to focal point on the talents and advantage required of future CPAs.

    We also heard questions about business legislation and even if its exclusion from the curriculum resource was an indication that this subject matter has turn into less important to future CPAs. here's no longer at the entire case. The curriculum useful resource was centered to content this is often now not addressed via business prerequisites, meaning they presumed that students would complete coursework in areas equivalent to concepts of financial and managerial accounting, economics, finance, and company law. again, they admire these questions and will continue to highlight this crucial distinction.

    eventually, they received questions concerning the depth of coverage in definite really good areas similar to forensic and international accounting. In selecting whether such areas should be blanketed in the curriculum aid, they relied on insights from newly licensed CPAs and their supervisors, which have been gathered through CPA exam follow analyses. They also relied on the expertise of their project force members, who were requested to construct an assist that may help colleges of all sizes, including these with vast aid constraints. the place they have bought comments relative to really good areas that have been now not prior to now mentioned or considered, they have up to date the resource as applicable.

    What technological applications should school train, and the way would you outline "digital acumen"?

    within the curriculum resource, they noted a few situations the place expertise may well be brought to the coverage of select topics. The resource doesn't recommend any specific technological purposes that faculty should be educating, as technologies are swiftly altering and the selected applied sciences used will vary by way of industry and self-discipline. despite the fact, having an inexpensive figuring out of prevailing technological trends and purposes and how they're impacting capabilities such as audit, tax, and accounting is a must-have for CPAs. They refer to this type of competencies of applied sciences as "digital acumen" within the curriculum useful resource.

    Will the curriculum useful resource be up-to-date to replicate the comments received?

    yes. apart from remarks involving depth of insurance, they obtained counsel on how to enrich the readability of definite subjects and gaining knowledge of pursuits. These were very valuable, and they made revisions to reflect what they have heard. The updates they made to the curriculum useful resource are summarized to make it handy for those that have already reviewed it to determine the changes.

    What's subsequent for CPA Evolution?

    in line with the remarks received, we've issued a revised curriculum resource. they are able to continue so as to add resources to the academic aid Hub and continue internet hosting their monthly school Hour webinars to supply deep dives into rising themes.

    The AICPA is conducting a convention analysis to boost a brand new CPA examination with a Core + Disciplines structure and content material. They expect a Blueprint to be issued for public comment in mid-2022 and finalized in early 2023.

    in case you have any questions or feedback, please reach out to us at comments@EvolutionofCPA.org.

    — Jan Taylor, CPA, CGMA, Ph.D., is the AICPA's tutorial in residence. Daniel J. Dustin, CPA, is vice chairman, state board relations for NASBA. To touch upon this article or to indicate an idea for another article, contact Ken Tysiac, the JofA's editorial director, at Kenneth.Tysiac@aicpa-cima.com


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