Financial Accounting and Reporting (FAR) is most probably the biggest and the most difficult section of US CPA for many test-takers and I was not an exception to it.
By planning perfectly, one can complete it relatively in an easier way, than what they think.
It is advised to have a good command of accounting basics, as most of the FAR will be focused on basics and Journal Entries.
Please make notes for important concepts and practice all Journal entries.
F1 to F5 are the most important chapters in FAR. It is advised not to leave a single module in all 5 chapters.
I had completed FAR using ABC analysis
A : F1 to F5 = Very important
B: F8 to F10 = Saviours in Exam especially NPO, Governmental Accounting
C : F6 & F7
The concepts in F6 & F7 are difficult to understand, that’s where Simandhar Lectures by Suraj sir will be of great help in decoding them. These are bottleneck chapters when one is aiming for a high score.
It is suggested to have a basic idea about Leases, Taxes, Pensions and Derivatives. Deep Diving is not required in these modules if one is facing many difficulties in understanding the concepts.
Make yourself charts for Governmental accounting, Cash flow statements for different concepts, and IFRS vs US GAAP. One can find these charts and other material prepared by the students on Simandhar Portal.
I had done my preparation in the following way:
- Completed lectures in each module, short lectures from Skills Practice.
- Prepared my notes for the important topics in that module, revised them.
- Then I used to solve MCQs, mark those which went wrong, then resolve them again.
- Solved SIMS. Used to watch Skills practice videos which helped me to know if there is any better way to finish the SIM within a short time.
- Took new points from MCQs & SIMs and included in my notes. You will get many new points from MCQs and SIMs from each module.
- Repeat the same for the next module
- Once when I finish all modules in one Chapter, I would do “PERSONALISED REVIEW SESSION” at the end of each chapter.
- During my FIRST REVISION, I redid all the Marked MCQs and all SIMS while referring to my Notes.
- I had 10 days left when I had started my SECOND REVISION, and then I practiced 100 MCQs and 10 SIMS using UNLIMITED PRACTICE TESTS for each chapter. It takes so much time to do these tests, but they are very helpful.
- Time Management is very much Important in the FAR exam and one has to learn that during the revisions. Be prepared to see Lengthy sims which will have 6-7 exhibits.
- Ideally one has to complete the First two testlets in 90 mins, the Third testlet in 30 mins and the Last two hours for the Fourth and Fifth testlets.
- Scan first for any Research-based sims and Small sims before starting to work on a Big sim. Try to attempt everything in SIM as there will be partial scoring.
- My three Mock scores average was 71 and I scored 86 on the real Exam. Don’t ever go with mock scores. The valuation in them will be completely different compared to the real valuation in Exam.
- Mocks here are evaluated by basing the Number of Correct answers upon a Total number of questions without having weights to each question. Mocks are there for Final Practice before the exam to make sure you covered every important concept.
- Two days before the exam, I had started doing all the FLASHCARDS which was really helpful and completed AICPA Newly released questions and AICPA sample tests.
- IMPORTANT ONE: Check for the illustrations in the AUTHORITATIVE LITERATURE while solving SIMs. There were very good examples for each concept after the Explanation.
- Wishing all of you, the very best and Good luck with Studying.
One personal note: Dedicate at least one hour in a day for yourself. That may be for exercising or hitting Gym, Learning something new, or Meditating. One must be in good health while preparing for the exam.
Thanks & Regards,
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