The CPA-FAR Exam section covers topics like financial transactions, financial statements, GAAP, and reporting for nonprofits. Most CPA aspirants consider FAR to be the challenging one among the remaining CPA exam sections because of its length.

This exam is also considered as difficult because it tests the candidate’s understanding of statement presentation, financial reports, and business transactions using IFRS, GAAP, and governmental accounting systems. There’s also common to see topics like benefits of the employee, compiling operations, transfers, research costs, correcting errors in transactions, and calculating fair value figures as well.

FAR Topic Areas & Concepts:

The FAR section is a 4-hour long exam. It includes the below topics:

Content Area Allocation
Select Financial Statement Accounts 30 to 40%
Conceptual Framework & Financial Reporting 25 to 35%
State & Local Governmental Accounting 5 to 15%
Transactions 20 to 30%

Select Financial Statement Accounts – These topics consist of the income statement, evaluation of balance sheet, statement of retained earnings, cash flow statement as well as transactions that affect accounts.

Conceptual Framework & Financial Reporting – These topics include financial statements, different aspects of standard setting, and several reporting. The candidate should be familiar with the process of financial reporting for both non-profit and non-governmental organizations.

State & Local Governmental Accounting – Typically, these topics cover non-specific and generalized overviews of governmental accounting and fund accounting.

Transactions – It covers both recognition and computation of certain operations on the statement like leases, contingencies, and so on.

FAR CPA Exam Structure and Format:

The CPA FAR exam starts with 2 testlests with 33 Multiple-Choice Questions (MCQs) each. After that, there will be a break of 15 minutes; then there will be three testlets with 8 task-based simulations.

Question Type No. of Questions
Multiple-Choice Questions (MCQs) 66 (33+33)
Task-Based Simulations (TBS) 8 (4+4)
Written Communication 0

FAR Section Format:

Testlets Question Sets
1 33 MCQs
2 33 MCQs
3 2 TBS
4 3 TBS
5 3 TBS

Here you can see FAR Demo Class by Sripal Jain (CFO of Simandhar Education)


The FAR section is considered the most difficult section because of its length, but if you prepare well for the exam, it’s easy to get a good score in the CPA exam. Hope the above article gives you complete insights on the CPA FAR exam. However, if you have any doubts, comment below. Happy Learning!


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