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FAR - CPA Financial Accounting and Reporting - BrainDump Information

Vendor Name : AICPA
Exam Code : FAR
Exam Name : CPA Financial Accounting and Reporting
Questions and Answers : 163 Q & A
Updated On : Click to Check Update
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FAR Demo and Sample

CPA Financial Accounting and Reporting Real Questions with Latest FAR Practice Tests | [HOSTED-SITE]

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 Topics 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 braindumps and exam dumps

The AICPA and the country wide association of State Boards of Accountancy (NASBA) published a revised CPA Evolution model Curriculum on Friday in keeping with feedback from users of the useful resource and different interested events.

contributors of the occupation informed the AICPA and NASBA that the curriculum aid may well be superior through a deeper dive in definite areas. We additionally got suggestions on how to increase the clarity of certain issues and studying aims.

The outcome of all this advantageous comments is modern replace, which refreshes the useful resource that changed into posted earlier this 12 months.

In June, the AICPA and NASBA launched the CPA Evolution model Curriculum. The intention changed into to help school as they searching for to transition their classes to reflect the brand new Core + Disciplines CPA licensure model promoted throughout the CPA Evolution initiative. more than 40 volunteer discipline-count consultants labored to boost this aid, which changed into designed to put together college students pursuing CPA licensure. We launched the curriculum resource during a free, digital adventure with over 1,500 attendees.

since the launch, the curriculum resource has been downloaded over 3,500 instances. To determine its have an effect on, we performed a number of surveys of school and enterprises. We discovered that:

  • eighty three% of enterprises surveyed with eleven or greater CPAs observed that if college accounting classes had been aligned with CPA Evolution, their hiring of new graduates from accounting courses would doubtless increase, accounting program graduates would be considered more effective than they are nowadays, or both.
  • seventy nine% of college surveyed agreed that the CPA Evolution model Curriculum aids accounting courses in knowing and assembly the evolving needs of practice.
  • 87% of school surveyed listed the CPA Evolution mannequin Curriculum as one of the most constructive components in updating their curricula.
  • The AICPA and NASBA additionally labored together to request comments on the aid through our launch experience, greater than a dozen displays to educators, and direct outreach to the educational group.

    These are probably the most average questions we bought:

    Is the CPA Evolution model Curriculum accessible in Excel structure?

    The properly request from college became to make the curriculum useful resource attainable in an Excel format to support them map it to their personal curricula. In July, one month after the launch of the PDF version of the aid, we published an Excel supplement.

    Are the AICPA and NASBA attractive with textbook publishers?

    while school told us that they admire the curriculum resource and the a number of case reports, articles, and movies accessible through the tutorial useful resource Hub, they questioned no matter if textbooks can be up-to-date to mirror the cloth it is most significant to practice. we are satisfied to document that we've had ongoing speak with several of the major textbook providers and that they and their authors are dedicated to updating their choices to meet the needs of college and put together students for the follow atmosphere.

    by way of naming the curriculum useful resource the "CPA Evolution mannequin Curriculum," are the AICPA and NASBA suggesting that every accounting program should "model" its curriculum on its contents?

    No. as a result of tutorial associations have differing missions and targets, one example of an accounting curriculum can't might be meet the needs of all such associations.

    The CPA Evolution model Curriculum is designed to be an help for accounting courses attracted to updating their curricula to align with the CPA Evolution initiative. It isn't supposed to be a one-size-matches-all method for every software. Accounting programs may still use the resource as they deem appropriate based on their program's targets. To tackle any confusion concerning the aid's title, the AICPA and NASBA have updated our messaging, including changes to the aid itself, to make this as clear as viable.

    Why become content material in certain field-matter areas now not addressed in enhanced depth?

    We acquired a lot of questions to this impact. for example, we heard from leaders in the administration accounting neighborhood that skills relative to that physique of potential symbolize an essential part of the core ability set for all expert accountants, including these in public practice. We could not agree greater with this evaluation. We additionally heard there are opportunities to Improve the curriculum resource by building upon the learning objectives that are at present protected. We admire this feedback, have reviewed the recommendations we've got acquired, and have up-to-date the useful resource in line with these detailed suggestions, all while continuing to focal point on the knowledge and expertise required of future CPAs.

    We also heard questions about enterprise law and no matter if its exclusion from the curriculum useful resource was a demonstration that this syllabu has develop into less crucial to future CPAs. here's now not at all the case. The curriculum resource changed into targeted to content material it's frequently now not addressed through company necessities, that means we presumed that students would complete coursework in areas similar to principles of monetary and managerial accounting, economics, finance, and company law. again, we appreciate these questions and should proceed to spotlight this essential distinction.

    finally, we received questions concerning the depth of coverage in definite specialized areas reminiscent of forensic and international accounting. In selecting no matter if such areas should still be included within the curriculum resource, we relied on insights from newly licensed CPAs and their supervisors, that have been gathered through CPA examination follow analyses. We also relied on the abilities of our project force individuals, who have been asked to build an help that could assist faculties of all sizes, including these with big resource constraints. the place we now have received feedback relative to really good areas that were no longer in the past mentioned or considered, we have up to date the useful resource as applicable.

    What technological applications should college train, and the way would you define "digital acumen"?

    in the curriculum useful resource, we stated a number of circumstances the place know-how may be delivered to the coverage of opt for themes. The useful resource doesn't advocate any certain technological purposes that faculty may still be instructing, as applied sciences are swiftly altering and the particular technologies used will range by business and self-discipline. youngsters, having an affordable realizing of prevailing technological traits and applications and how they're impacting capabilities akin to audit, tax, and accounting is vital for CPAs. We seek advice from this classification of capabilities of applied sciences as "digital acumen" in the curriculum useful resource.

    Will the curriculum aid be up to date to replicate the feedback obtained?

    yes. moreover feedback involving depth of coverage, we acquired advice on a way to Improve the readability of definite subject matters and studying aims. These were very beneficial, and we made revisions to reflect what we've heard. The updates we made to the curriculum aid are summarized to make it effortless for people that have already reviewed it to determine the adjustments.

    What's subsequent for CPA Evolution?

    according to the remarks acquired, we have issued a revised curriculum useful resource. we will proceed so as to add materials to the educational useful resource Hub and proceed internet hosting our month-to-month school Hour webinars to supply deep dives into emerging issues.

    The AICPA is conducting a practice analysis to develop a new CPA examination with a Core + Disciplines constitution and content material. We are expecting a Blueprint to be issued for public remark in mid-2022 and finalized in early 2023.

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

    — Jan Taylor, CPA, CGMA, Ph.D., is the AICPA's tutorial in house. Daniel J. Dustin, CPA, is vp, state board family members for NASBA. To touch upon this article or to suggest a concept for an extra article, contact Ken Tysiac, the JofA's editorial director, at Kenneth.Tysiac@aicpa-cima.com


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