The FAR (Financial Accounting and Reporting) section of the CPA Exam encompasses a variety of topics and candidates are expected to show competence in several key areas. Starting in April of 2017, there will be significant changes to the FAR section. The FAR exam now has 66 multiple choice questions instead of the previous 90 with decrease from 60% weighting to 50%.
The remaining 40% comes from 8-9 Task-Based Simulations—otherwise known as SIMS—instead of 7 from previous year, which require you to generate answers on your own rather than choose from a list of possible choices. You are given 4 hours to complete the exam and need to get an overall score of 75% or higher to pass.
1. Calculation and Identification of Miscellaneous Items Listed in Financial Statements
2. Calculation and Transaction Identification
3. Standards and Concepts regarding Financial Statements
4. Accounting and Reporting for Non-Profit and Non-Governmental Organizations
5. Accounting and Reporting for Governmental Bodies
Check out the AICPA webpage to learn more about the material covered in all 4 parts of the CPA exam.