2011 CPA Exam Content for FAR


As you know I’m currently working on finishing up my CPA.  Right now I’m studying for FAR (Financial Accounting and Reporting) and will take it in January under the new 2011 format.  Here is a summary of the content I’m studying, corresponding to the AICPA Content Specification Outline.  There is a lot of stuff.

1) 20% – Conceptual Framework, Standards, Standard Setting, and Presentation of Financial Statements

  • Process by which Accounting Standards are set and roles of accounting standard-setting bodies (SEC, FASB, IASB, GASB)
  • Conceptual Framework
  • Financial Reporting, Presentation, and Disclosures in General-Purpose Financial Statements
  • SEC Reporting (10-K, 10-Q)
  • Other, including Other Comprehensive Bases of Accounting (OCBOA)

2) 30% – Financial Statement Accounts: Recognition, Measurement, Valuation, Calculation, Presentation, and Disclosure

  • Cash and Cash Equivalents
  • Receivables
  • Inventory
  • Property, Plant, and Equipment
  • Investments
  • Intangible Assets – Goodwill and Other
  • Payables and Accrued Liabilities
  • Deferred Revenue
  • Long-term Debt
  • Equity
  • Revenue Recognition
  • Costs and Expenses
  • Compensation and Benefits
  • Income Taxes

3)  30% – Specific Transactions, Events and Disclosures: Recognition, Measurement, Valuation, Calculation, Presentation, and Disclosures

  • Accounting Changes for Error Corrections
  • Asset Retirement and Environmental Obligations
  • Business Combinations
  • Consolidation – including Off-Balance Sheet Transactions
  • Contingencies, Commitments, and Guarantees
  • Earnings Per Share
  • Exit or Disposal Activities and Discontinued Operations
  • Extraordinary and Unusual Items
  • Fair Value Measurements, Disclosures, and Reporting
  • Derivatives and Hedge Accounting
  • Foreign Currency Transactions and Translation
  • Impairment
  • Interim Financial Reporting
  • Leases
  • Distinguishing Liabilities from Equity
  • Nonmonetary Transactions (Barter)
  • Related Parties and Related Party Transactions
  • Research and Development Costs
  • Risks and Uncertainties
  • Segment Reporting
  • Software Costs
  • Subsequent Events
  • Transfers and Servicing of Financial Assets and Derecognition

4)  10% – Governmental Accounting and Reporting

  • Governmental Accounting Concepts
  • Format and Content of Comprehensive Annual Financial Report (CAFR)
  • Financial Reporting Entity, Including Blended and Discrete Component Units
  • Typical Items and Specific Types of Transactions and Events
  • Accounting and Reporting for Governmental Not-for-Profit Organizations

5)  10% – Not-for-Profit (Nongovernmental) Accounting and Reporting

  • Financial Statements (Financial Position, Activities, Cash Flows, Functional Expenses)
  • Typical Items and Specific Types of Transactions and Events