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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 course 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.

cpa-exam-sections
Breaks
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 course 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, course or related skill level will be assessed on the Exam. For example, the course titled “Notes to financial statements” in Area I includes two tasks that are intended to encompass the required disclosures for any course 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 course of the FASB Accounting Standards Codification. The number of tasks included in the blueprint for this

group and this course 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 courses 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 course 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.
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 Financial learning

AICPA very own economic Planning conference begins subsequent Week | FAR Latest courses and braindumps

economic and political uncertainty, the effects of the most economical Care Act, and estimating the real cost of retirement are only one of the crucial components developing a posh and difficult financial panorama for americans. This yr’s AICPA advanced own financial Planning convention, held at the Bellagio lodge in Las Vegas January 19-21, will supply planners the essential skills and tools to navigate the ever-altering container of monetary planning.

The AICPA’s PFP convention has continually been ranked by business insiders as some of the precise conferences for economic planners. Attendance has doubled for the reason that 2009, with attendees at last year’s conference representing fiscal organizations with more than $240 billion belongings below management. This yr’s conference contains greater than sixty five sessions presented by way of the trade’s most dear figures on subject matters together with retirement planning, tax recommendations, constructing have confidence online, and estate planning strategies for prime net value valued clientele.

meeting an increasing demand, this 12 months’s conference will again offer the “emerging chief getting to know direction” track.  This song is meant to help newer fiscal planners extra increase their communications and laptop science skills, and provide economic planning most beneficial practices to aid them more advantageous serve their purchasers. sessions for the rising Leaders track had been selected from the Wealth management and Tax, Retirement/Elder Planning, funding administration, practice management and expertise, and assurance and chance management session tracks.

“because the inhabitants a while, life expectancy rises, and patrons face more advanced economic instances, planners are in increased demand,” observed Jeannette Koger, vice chairman of Member Specialization & Credentialing with the AICPA. “To assist meet this demand, the AICPA is offering the emerging Leaders discovering track to make sure that the pipeline of planners is still amazing and emerging planners have the equipment they deserve to develop their practices.”

The Bureau of Labor facts anticipates the introduction of more than 60,000 jobs during this container from 2012-2020, representing 24% boom. These information underscore the wealth of opportunities attainable for rising practitioners during this container.

What:              AICPA superior personal financial Planning conference

where:           The Bellagio inn in Las Vegas. A are living broadcast of keynotes and choose convention classes might be attainable to journalists who cannot attend in adult

(Please observe: Excellerate registration is required).

When:             January 19-21, 2015

Who:               chosen speakers and issues at this yr’s conference consist of:

                       

Mitch Anthony, President, guide Insights, Inc.

theme: moving from ROI to ROL (return on life)

Cam Marston, President, Generational Insights

 subject: The Gen-Savvy monetary guide

David Kelly, Ph.D., Chief global Strategist and Head of the global Market

Insights strategy group, J.P. Morgan cash, big apple, ny

topic: From restoration to growth: A e-book to the Markets

 

Nancy Simm, CLTC, LTCP, CSA, sales VP, Highland Capital Brokerage

subject matter: long-time period Care insurance: Dramatic Market changes

Susan J. Bruno, CPA/PFS, CFP, CIC, Managing Director, Beacon Wealth

Consulting LLC

subject matter: lifestyles coverage Diagnostic

 

David Blanchett, CPA, CFA, CFP, AIFA, Head of Retirement analysis, Morningstar funding administration

theme: Estimating the real charge of Retirement

Amy Florian, MPS, toes, CEO, Corgenius, Hoffman Estates, IL

subject: Advising purchasers in the course of the hardest times of lifestyles

Arthur Laffer, Ph.D., Founder and chairman, Laffer buddies

subject: economic truth, Myths and Fallacies

Robert Keebler, CPA/PFS, CGMA, MST, AEP, partner, Keebler & pals

David H. Kirk, CPA/PFS, J.D., LL.M, government Director, deepest consumers services, Ernst and young

topic: Refresher on the NIIT and Planning round 3.8% Medicare Tax


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