What to Expect From CPA Exam Review Courses for Section III: Financial Accounting and Reporting (FAR)
While your undergraduate accounting courses should have covered the information you need to know for the third section of the CPA exam, Financial Accounting and Reporting (FAR), it is important to review these topics carefully before sitting for the test. CPA exam review courses offer a complete breakdown of the concepts that are covered in Section III, making it easier to refresh your skills. The subjects you need to know for the FAR section include the following topics.
Conceptual Framework, Standard Setting and Financial Reporting
As you prepare for the FAR section of the CPA exam, don’t neglect the basics. In the first area of this section, you will demonstrate your understanding of general purpose financial statements that various business entities are required to complete. You will show your knowledge of the public disclosures public companies must make as well as the financial statements prepared under special purpose frameworks.
Select Financial Statement Accounts
The second area of the FAR section gets into the details of financial accounting and reporting, and you should expect questions related to all sorts of businesses — both for-profit and nonprofit. As you work through this section, you will complete a set of tasks that show you understand how to apply this knowledge.
Many students express concern over the select transactions area of the FAR section, because it requires specific knowledge and understanding of transactions that are applicable to entities under the FASB Accounting Standards Codification and the IASB standards. Fortunately, CPA exam review courses offer a wealth of practice questions to ensure you are well-prepared.
State and Local Governments
The final area of the FAR section is entirely devoted to the financial accounting and reporting requirements for state and local governments. In this area, you will show your knowledge of the GASB standards and interpretations.
Using high-quality CPA exam review courses can dramatically improve your final score, increasing the chances of a pass on your first try. Visit Surgent for more information on the popular Surgent CPA Review method.