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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 test Format | FAR Course Contents | FAR Course Outline | FAR test Syllabus | FAR test Objectives

Within the Blueprints, you will find the following information for each test 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 test 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 test structure.

Exam Item Types
You will be tested during the CPA test 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 test 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 test 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.

During each test 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 test 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 test 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 test 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 test 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 syllabus 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 test 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 test 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.
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 Real test Questions

AICPA PFP conference at interact 2020 focuses on fiscal Planning throughout COVID-19 | FAR test dumps and PDF Dumps

manhattan--(company WIRE)--The CARES Act, market volatility, Social protection concepts and the have an impact on of COVID-19 on economic planning have introduced a large number of challenges and alternatives to the ever-changing fiscal planning panorama. The top-rated practices and cutting-part concepts emerging from these doubtful times will be shared at the AICPA’s superior personal economic Planning (PFP) convention at have interaction 2020. The thirty third annual convention will take region on-line from July 20-22, 2020.

top Technical Planning insight from Leaders in the occupation

gurus looking to boost the fundamental knowledge to ideal e book their clients and enterprise into the long run will benefit from in-depth technical sessions and panel discussions. in addition to the CARES Act, syllabus include the comfy Act, the present state of Social security, as neatly as the way forward for financial planning. The conference agenda has been curated to function the most latest purposeful tips and technical talents in the areas of tax, retirement, property, possibility administration, investments and extra.

“monetary planning authorities seeking to study about the newest ideas to aid them deliver the optimum skilled service may still no longer pass over this possibility to profit a large-latitude of technical knowledge at this all-in-one interactive on-line gaining knowledge of experience,” noted Ted Sarenski, CPA/PFS, co-chair of the 2020 PFP convention Planning Committee. “The sharpest minds in the profession may be sharing actionable assistance that attendees can use in follow correct away.”

gurus recognize the superior PFP conference as some of the superior conferences for technical education periods. truly, the awesome, advanced advantage shared this 12 months could be introduced by way of returning expert audio system who averaged a 4.6/5 satisfaction rating from attendees in 2019.

“This year’s convention has delivered virtual networking movements and other new facets to raise interaction and build a sense of neighborhood amongst attendees,” said Lauren Minch, CPA, CFA, CGMA, co-chair of the 2020 PFP conference Planning Committee. “skilled audio system from all areas of economic planning might be internet hosting classes where attendees can ask questions, take part in real-time polling, and live-chat with different attendees.”

apart from the PFP conference, attendees may have entry to leading technical content material within all 6 different conferences as a part of AICPA & CIMA interact together with: superior Accounting & Auditing, advanced property Planning, , part profession building, Practitioners Symposium & TECH+ and Tax options for the excessive-salary particular person.

PFP Keynote speakers include:

  • Danielle Fava, Director of Innovation, TD Ameritrade Institutional
  • Scott Orr, VP of govt members of the family & Public Affairs, fidelity Investments
  • Mark Jeffries, author of “The art of company Seduction”
  • PFP convention audio system consist of:

  • Ted Sarenski, CPA/PFS, CEO, Blue Ocean Strategic Capital
  • Ed Slott, CPA, companion, Ed Slott & company
  • Michael Kitces, writer & Head of Planning method, Nerd's Eye View | Buckingham Wealth partners
  • Jeffrey Levine, CPA/PFS, Lead monetary Planning Nerd at
  • Matthew Rosenberg, CPA/PFS, President, RoseCap financial Advisors
  • Lisa Featherngill, CPA/PFS, Head of Legacy & Wealth Planning, Abbot Downing
  • Susan Bruno, CPA/PFS, Managing Director, Beacon Wealth Consulting South
  • Stephan Horan, Managing Director, Americas region & expert researching, CFA Institute
  • Mark Klein, Esquire, Hodgson Russ LLP
  • have interaction Keynote speakers consist of:

  • Daymond John, Entrepreneur, CEO, Shark Tank celebrity
  • Barry C. Melancon, AICPA President and CEO - Erik Asgeirsson, President & CEO - Sue Coffey, AICPA EVP of Public practice - Tracey Golden, AICPA Chair
  • What: AICPA advanced personal financial Planning, at interact 2020

    When: July 20-22, 2020. online periods will run from eleven a.m. to 5 p.m. jap everyday, with digital networking opportunities throughout breaks.

    the place: online

    Press Registration: For media who are looking to achieve remote access, please contact Jon Lynch at or James Schiavone at (please observe: develop registration is required).

    about the AICPA’s PFP Division

    The AICPA’s very own monetary Planning (PFP) section is the premier issuer of guidance, equipment, advocacy, and tips for CPAs and other gurus who focus on featuring property, tax, retirement, possibility management, and investment planning counsel to individuals, families, and company house owners. The basic objective of the PFP section is to help its members by using proposing substances that permit them to perform beneficial PFP functions in the maximum expert manner.

    concerning the American Institute of CPAs

    The American Institute of CPAs (AICPA) is the world’s greatest member association representing the CPA profession, with greater than 431,000 members within the u.s. and worldwide, and a historical past of serving the public pastime considering 1887. AICPA participants represent many areas of observe, including enterprise and industry, public follow, government, education and consulting. The AICPA sets ethical necessities for its contributors and U.S. auditing necessities for personal organizations, nonprofit groups, and federal, state and native governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future ability and drives expert competency building to strengthen the vitality, relevance and best of the profession.

    about the affiliation of international licensed expert Accountants

    The affiliation of international licensed knowledgeable Accountants (the affiliation) is probably the most influential body of skilled accountants, combining the strengths of the American Institute of CPAs (AICPA) and The Chartered Institute of management Accountants (CIMA) to vigor trust, opportunity and prosperity for individuals, companies and economies international. It represents 650,000 contributors and students across 179 countries and territories in public and management accounting, and advocates for the public interest and business sustainability on latest and emerging considerations. With wide reach, rigor and supplies, the association advances the recognition, employability and satisfactory of CPAs, CGMAs and accounting and finance certified globally.

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