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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 exam 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.
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| Section | Weight | Objectives |
|---|---|---|
| State and Local Governments | 5–15% | - Fund accounting and modified accrual basis - Governmental financial statements and reporting models - GASB standards and disclosure requirements |
| Select Transactions | 20–30% | - Leases, business combinations and consolidations - Foreign currency, accounting changes and errors - Derivatives, hedging and fair value measurements - Contingencies, R&D and subsequent events |
| Conceptual Framework, Standard-Setting and Financial Reporting | 25–35% | - Employee benefit plan financial statements - Not-for-profit and public company reporting - General-purpose financial statements for for-profit entities - Conceptual framework and standard-setting process |
| Select Financial Statement Accounts | 30–40% | - Payables, debt, equity, revenue recognition - Property, plant and equipment, intangibles - Cash, receivables, inventory, investments - Compensation, benefits and income taxes |
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