FAR Exam Guide
Financial Accounting and Reporting
Quick Answer
FAR (Financial Accounting and Reporting) has the lowest CPA exam pass rate at 42% and requires 120–150 study hours. It covers governmental accounting, IFRS, and financial statement preparation. Becker and Gleim offer the strongest FAR content, with Surgent's adaptive technology helping candidates focus on weak areas.
Tests knowledge and skills related to financial accounting and reporting frameworks, including FASB, U.S. SEC, and AICPA standards for both for-profit and non-profit entities.
Pass Rate Insight: Lowest pass rate among all sections. Requires deep understanding of financial statement impacts.
CPA Exam: Continuous Testing Year-Round
The CPA exam is now available year-round with continuous testing. Score releases happen quarterly — plan your study timeline to align with your target testing date.
Build My Study PlanExam Format & Time Management
Exam Structure
Recommended Pacing
Testlet Progression
Content Blueprint
| Area | Content | Weighting |
|---|---|---|
| I | Financial Reporting | 30-40% |
| II | Select Balance Sheet Accounts | 30-40% |
| III | Select Transactions | 25-35% |
Key Topics Tested
- General purpose financial statements for various entity types
- Cash, receivables, inventory, property/plant/equipment
- Investments, intangibles, liabilities, and equity
- Revenue recognition and income taxes
- Fair value measurement and leases
- Business combinations and consolidated statements
- Government and nonprofit accounting
- Accounting changes and contingencies
Study Tips for FAR
- 1Focus on understanding how transactions impact financial statements — you cannot memorize your way through FAR
- 2Allocate more time to complex topics like pensions, leases, and consolidations — Pass with Jack offers targeted FAR topic courses ($15-$50 each) if your main review course isnt clicking on these
- 3Master governmental and nonprofit accounting — often overlooked in college coursework
- 4Time management: ~2.08 minutes per MCQ, ~18 minutes per TBS
- 5Use practice exams to build stamina for the 4-hour test
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Best Courses for FAR
Top-rated CPA review courses for mastering Financial Accounting and Reporting
Study Resources for FAR
FAR Frequently Asked Questions
Other Exam Sections
Free FAR Study Guide PDF
4-page guide with topic sequences, weekly timeline, and practice tracker for all 120–150 hours of FAR prep.
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