AICPA FAR Exam : CPA Financial Accounting and Reporting

AICPA FAR exam
  • Exam Code: FAR
  • Exam Name: CPA Financial Accounting and Reporting
  • Updated: Jun 02, 2026
  • Q & A: 165 Questions and Answers
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About AICPA FAR Exam Questions

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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:

  • Special purpose frameworks
  • Conceptual framework and standard-setting for business and non-business entities
  • Statement of changes in equity
  • Income statement/ statement of profit or loss
  • Statement of comprehensive income
  • Statement of financial position
  • Going concerned
  • Statement of activities
  • General-purpose financial statements: for-profit business entities
  • Balance sheet/ statement of financial position
  • Statement of cash flows
  • General-purpose financial statements: nongovernmental, not-for-profit entities
  • Financial statements of employee benefit plans
  • Consolidated financial statements (including wholly-owned subsidiaries and noncontrolling interests)
  • Discontinued operations
  • Public company reporting topics (U.S. SEC reporting requirements, earnings per share, and segment reporting)
  • Notes to financial statements

Area 2 - Select Financial Statement Accounts (30-40%)

Objectives covered by this section:

  • Intangible assets - goodwill and other
  • Cash and cash equivalents
  • Revenue recognition
  • Compensated absences
  • Trade receivables
  • Investments
  • Property, plant, and equipment
  • Long-term debt (financial liabilities)
  • Retirement benefits
  • Income taxes
  • Financial assets at fair value
  • Equity
  • Notes and bonds payable
  • Payables and accrued liabilities
  • Equity method investments
  • Debt covenant compliance
  • Inventory
  • Financial assets at amortized cost
  • Stock compensation (share-based payments)

Area 3 - Select Transactions (20-30%)

Objectives covered by this section:

  • Contingencies and commitments
  • Differences between IFRS and U.S. GAAP
  • Subsequent events
  • Derivatives and hedge accounting (e.g. swaps, options, forwards)
  • Research and development costs
  • Foreign currency transactions and translation
  • Fair value measurements
  • Nonreciprocal transfers
  • Leases
  • Business combinations
  • Software costs
  • Accounting changes and error corrections

Area IV - State and Local Governments (5-15%)

Objectives covered by this section:

  • Other financing sources and uses
  • Fund balances and components thereof
  • Fiduciary funds financial statements
  • Financial reporting entity, including blended and discrete component units
  • Budgetary comparison reporting
  • State and local government concepts
  • Typical items and specific types of transactions and events: measurement, valuation, calculation, and presentation in governmental entity financial statements
  • Format and content of the financial section of the comprehensive annual financial report (CAFR)
  • Deriving government-wide financial statements and reconciliation requirements
  • Net position and components thereof
  • Expenditures and expenses
  • Special items
  • Required supplementary information (RSI) other than management's discussion and analysis
  • Interfund activity, including transfers
  • Capital assets and infrastructure assets
  • Governmental funds financial statements
  • General and proprietary long-term liabilities
  • Government-wide financial statements
  • Nonexchange revenue transactions
  • Notes to financial statements
  • Proprietary funds financial statement
  • Management's discussion and analysis
  • Budgetary accounting and encumbrances

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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

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