CPA FAR Study Guide

Conceptual Framework and Financial Reporting Standards

Foundation of US GAAP, FASB Codification hierarchy, qualitative characteristics, and financial statement elements essential for all FAR topics.

Financial Statement Presentation and Disclosure Requirements

Balance sheet, income statement, comprehensive income, and statement of cash flows preparation with required disclosures.

Revenue Recognition Under ASC 606

Five-step model for revenue recognition, contract modifications, performance obligations, and variable consideration critical for CPA success.

Inventory, Property, Plant and Equipment

Inventory valuation methods, PPE acquisition, depreciation, impairment testing, and asset retirement obligations frequently tested.

Intangible Assets and Business Combinations

Goodwill recognition, indefinite-lived intangibles, acquisition method accounting, and impairment testing under ASC 350 and 805.

Investments and Financial Instruments

Debt and equity securities classification, fair value measurements, derivatives, hedging activities, and expected credit losses.

Lease Accounting Under ASC 842

Lessee and lessor accounting, operating versus finance lease classification, and sale-leaseback transactions heavily tested.

Income Taxes and Deferred Tax Accounting

Deferred tax assets and liabilities, valuation allowances, uncertain tax positions under ASC 740 frequently examined.

Stockholders' Equity and Earnings Per Share

Stock transactions, treasury stock, dividends, basic and diluted EPS calculations, and comprehensive income components.

Consolidation and Equity Method Investments

Variable interest entities, intercompany eliminations, noncontrolling interests, and equity method application under ASC 810.

Governmental Accounting and GASB Standards

Fund accounting, government-wide statements, modified accrual basis, budgetary accounting, and GASB 34 requirements heavily weighted.

Not-for-Profit Accounting and Reporting

Net asset classifications, contribution revenue, functional expenses, and NFP financial statement presentation under ASC 958.