Financial Accounting and Reporting (FAR)

In this section

• PART I: INTRODUCTION AND EXAM FOUNDATIONS
  • Chapter 1: CPA Exam Structure and FAR Overview
    • Purpose and Format of the CPA Exam
      This comprehensive article provides a thorough overview of the CPA Exam’s purpose and structure, focusing on exam length, question formats (MCQs, TBSs), and the general content areas essential for FAR success. Understand how the exam is arranged, the types of questions asked, and the significance of these elements for efficient study planning and exam performance.
    • FAR Section in the Uniform CPA Examination
      Explore the scope, structure, and importance of the FAR section—one of the four core parts of the CPA Exam—covering financial accounting and reporting for diverse entities, essential concepts, and strategic approaches.
    • Scoring and Question Types (MCQs and Simulations)
      Discover how the FAR section of the CPA Exam is scored, including item weightings, question formats, and proven test-taking strategies for MCQs and simulations.
    • Study Methodology and Exam Strategies
      Discover effective strategies for mastering the FAR exam, combining conceptual understanding with extensive practice, authoritative literature review, and proven time-management techniques.
    • Time Management and Recommended Study Plans
      Practical insights into scheduling, pacing, and strategic study approaches for the FAR CPA Exam. Master your timetable, integrate practice sessions effectively, and enhance your exam-day performance.
  • Chapter 2: Conceptual Framework and Standard-Setting Environment
    • FASB, SEC, and Other Standard-Setters (Historical Context and Roles)
      Learn how the FASB, SEC, and other standard-setters influence and shape accounting practices, from their early roots to modern roles in establishing and maintaining GAAP.
    • FASB Conceptual Framework (Objectives, Qualitative Characteristics, Elements)
      Explore the FASB Conceptual Framework, focusing on the objectives of financial reporting, qualitative characteristics of useful financial information, and the elements of financial statements, and learn how these concepts guide standard-setting and practical GAAP application.
    • Measurement, Recognition, and Disclosure Concepts
      Explore the foundational principles of measurement, recognition, and disclosure in financial accounting under the conceptual framework, covering historical cost, fair value, and consistent application for transparent and meaningful reporting.
    • Hierarchy of U.S. GAAP and Researching the Codification
      Explore the authoritative hierarchy of U.S. GAAP and discover how to effectively research the FASB Accounting Standards Codification, complete with practical insights and best practices.
• PART II: AREA I – FINANCIAL REPORTING
  • Chapter 3: General Purpose Financial Reporting for For-Profit Entities
    • Comprehensive Review of the Balance Sheet (Statement of Financial Position)
      Dive into the classification, measurement, and presentation requirements of the statement of financial position, including best practices and typical disclosures, essential for success on the FAR exam.
    • Income Statement: Single-Step vs. Multi-Step Formats
      Discover the core distinctions between single-step and multi-step income statements, emphasizing the importance of operating vs. nonoperating items, and where various revenues and expenses are reported.
    • Statement of Comprehensive Income (OCI Components and Presentation)
      A comprehensive exploration of Other Comprehensive Income (OCI) items, reclassification adjustments, and the presentation of total comprehensive income under U.S. GAAP, including illustrative examples and best practices.
    • Statement of Changes in Equity (Share Capital, Retained Earnings, Other Equity Items)
      Explore the components of equity—share capital, retained earnings, additional paid-in capital, and AOCI—and learn how to prepare and interpret the Statement of Changes in Equity, focusing on common transactions like share issuances, repurchases, dividends, and accumulated other comprehensive income entries.
    • Statement of Cash Flows (Operating, Investing, Financing; Indirect/Direct Methods)
      Learn the ins and outs of the Statement of Cash Flows, including the direct and indirect methods, operating vs. investing vs. financing classifications, and common reconciliation practices. Perfect your FAR knowledge and prepare for the CPA Exam with illustrative case studies, diagrams, and best practices.
    • Notes to the Financial Statements (Policies, Related Party Disclosures)
      Explore key components of significant accounting policies, related party transactions, and essential footnote disclosures that enhance transparency and support the integrity of financial statements.
    • Advanced Illustrative Examples and Critical Issues for For-Profit Entities
      Explore comprehensive case studies, multi-entity structures, and advanced transactions in for-profit financial reporting, emphasizing the synergy among core financial statements and vital disclosures.
  • Chapter 4: Financial Reporting for Nongovernmental Not-for-Profit Entities
    • Overview of Not-for-Profit Accounting and Governing Principles
      Discover the unique environment of not-for-profit accounting, including stakeholder expectations, specialized standards under FASB ASC 958, and net asset classifications crucial for mission-driven financial reporting.
    • Statement of Financial Position (Net Assets: With/Without Donor Restrictions)
      Explore how not-for-profit organizations classify and present net assets with and without donor restrictions, including reclassification guidelines when donor restrictions expire. Discover best practices for SoFP disclosures and essential insights into FASB ASC 958 compliance.
    • Statement of Activities (Classification of Revenues, Expenses, Support)
      Explore the comprehensive presentation of revenues, expenses, and support under the Statement of Activities for nongovernmental not-for-profit entities, including the classification of donor restrictions, contributions, grants, and program service revenue.
    • Statement of Cash Flows (Direct vs. Indirect Methods) for Not-for-Profit Entities
      Explore how not-for-profit organizations apply direct and indirect methods when preparing the statement of cash flows, focusing on the distinct treatment of pledges, donor contributions, and restricted funds.
    • Functional Expense Reporting (By Nature and Function)
      Learn how not-for-profit entities classify expenses by nature and function, create matrix-based disclosures, and comply with GAAP requirements for functional expense reporting.
    • Disclosures and Special Topics in Not-for-Profit Accounting
      Comprehensive guide to NFP specialized disclosures, including endowment funds, underwater endowments, donor restrictions, and advanced split-interest agreements.
  • Chapter 5: State and Local Government Concepts (Expanded Coverage)
    • Measurement Focus and Basis of Accounting (Current vs. Economic Resources)
      Explore the key principles of measurement focus and basis of accounting in state and local government reporting, distinguishing how current financial resources and the economic resources measurement focus affect the recognition and reporting of transactions.
    • Governmental, Proprietary, Fiduciary Funds (Types and Major vs. Nonmajor Funds)
      Discover essential insights into the classification of state and local government funds, including Governmental, Proprietary, and Fiduciary funds. Learn how to identify Major vs. Nonmajor funds, understand their reporting significance, and explore real-world examples for effective financial statement preparation.
    • Government-Wide vs. Fund-Level Statements and Required Reconciliations
      Explore how government-wide and fund-level statements differ, and learn step-by-step reconciliation techniques for state and local governments, highlighting best practices and avoiding common pitfalls.
    • Budgetary Accounting, Encumbrances, and Appropriations
      Explore the foundational concepts of budgetary accounting, encumbrances, and appropriations for state and local governments, including how budgets are recorded and the differences between appropriations and actual expenditures.
    • MD&A Requirements, Required Supplementary Information (RSI)
      Comprehensive guidance on state and local government MD&A, RSI requirements, budgeting comparisons, and pension disclosures, fulfilling key GASB mandates.
    • Illustrative Examples (Basic Transactions and Sample Disclosures)
      Comprehensive government accounting illustrations covering property tax levies, bond issuance, intergovernmental grants, and related disclosures.
  • Chapter 6: Public Company Reporting Topics
    • SEC Regulatory Environment (Securities Exchange Act of 1934)
      Explore the comprehensive landscape of the Securities Exchange Act of 1934, the SEC's regulatory framework, and its integration with FASB standards, ensuring transparent and trustworthy public company reporting.
    • Interim Reporting and Required Disclosures
      Discover how interim financials differ from annual statements and explore special rules for income tax accruals, extraordinary items, and adjustments.
    • Annual Filings and Form 10-K/10-Q/8-K Requirements
      Explore the SEC reporting framework for public companies, including key deadlines, critical disclosures, and how material events and guidance updates are communicated through Forms 10-K, 10-Q, and 8-K.
    • Earnings per Share (Basic and Diluted Calculation)
      Learn how to calculate and present Basic and Diluted Earnings Per Share (EPS), including handling of common share equivalents, convertible debt/preferred stock, and distinctions between continuing operations and net income.
    • Segment Reporting (Identifying Reportable Segments, Disclosure Requirements)
      A comprehensive guide to identifying and disclosing reportable segments under US GAAP, detailing quantitative thresholds, reconciliation requirements, and best practices.
  • Chapter 7: Special Purpose Frameworks
    • Cash-Basis and Modified Cash-Basis Financial Statements
      Explore how transactions are recognized under pure cash-basis and modified cash-basis frameworks, including best practices, examples, and a deep dive into partial accrual aspects.
    • Tax-Basis Financial Statements (Common Adjustments vs. GAAP)
      Learn how to reconcile GAAP financial statements to tax-basis statements, exploring key adjustments involving depreciation methods, timing differences, and common pitfalls for CPAs.
    • Other Regulatory or Contractual-Basis Financial Statements
      Explore specialized accounting frameworks required by regulators or contractual agreements, unraveling the unique rules, reporting formats, and best practices for organizations operating outside traditional GAAP.
    • Reporting and Compilation Considerations
      An in-depth exploration of compilation and reporting considerations for accountants when preparing financial statements under special purpose frameworks, with emphasis on disclaimers, modifications, and professional responsibilities.
  • Chapter 8: Financial Statement Analysis, Ratios, and Performance Metrics
    • Horizontal and Vertical Analysis Techniques
      Explore the fundamentals of horizontal and vertical analysis, key comparative techniques for financial statement analysis essential to the FAR section of the CPA Exam.
    • Profitability Ratios (Gross Margin, ROE, ROA, etc.)
      Explore essential profitability ratios—from Gross Margin to Return on Equity and Return on Assets—understanding their formulas, interpretations, and real-world applications.
    • Liquidity Ratios (Current, Quick, Receivables, Inventory Turnover)
      Learn how to evaluate a company's short-term financial solvency using the major liquidity ratios, including the Current, Quick, Receivables Turnover, and Inventory Turnover, with real-world examples and best practices.
    • Solvency Ratios (Debt to Equity, Times Interest Earned)
      Learn how Debt to Equity and Times Interest Earned ratios measure a company's long-term solvency and financial stability. This in-depth analysis discusses capital structure impacts, interest coverage, and best practices for evaluating financial risk.
    • Non-GAAP Measures and Non-Financial Indicators
      Explore adjusted EBITDA, free cash flow, and intangible performance metrics, and learn how non-GAAP measures offer deeper insights into organizational performance while requiring critical analysis to avoid misinterpretation.
• PART III: AREA II – SELECT BALANCE SHEET ACCOUNTS
  • Chapter 9: Cash and Cash Equivalents
    • Definitions, Classifications, Petty Cash
      Learn the fundamentals of cash and cash equivalents classification, petty cash best practices, and borderline cases such as money market funds and short-term investments.
    • Bank Reconciliations, Proof of Cash
      A thorough examination of bank reconciliations, featuring step-by-step instructions, definitions of key terms, common pitfalls, and best practices to ensure accurate cash reporting. This guide also introduces the proof of cash method for enhanced internal controls and fraud detection.
    • Cash Controls, Cash-Related Disclosures
      Learn essential safeguards for cash management through robust internal controls, lockbox arrangements, segregation of duties, and disclosures for transparency in financial statements.
  • Chapter 10: Trade Receivables
    • Recognition, Allowances for Uncollectible Accounts
      Explore the direct write-off vs. allowance methods for accounts receivable, learn how to estimate bad debts, and understand the interplay with revenue recognition.
    • Factoring, Assigning, and Pledging Receivables
      Explore the complexities of factoring receivables with and without recourse, highlight risk retention, and understand how assignment or pledging impacts balance sheet classification and financial disclosures.
    • Presentation and Disclosure Requirements
      Learn how to present net trade receivables on the balance sheet and prepare critical disclosures involving credit risk, allowance for doubtful accounts, and the nature of receivables.
  • Chapter 11: Inventory
    • Periodic vs. Perpetual Systems (Costing and Record-Keeping)
      Discover the key differences between periodic and perpetual inventory systems, including journal entries, impacts on COGS, and best practices for effective inventory management.
    • Costing Methods (FIFO, LIFO, Weighted-Average, Specific ID)
      Master Inventory Costing Methods for accurate financial statements: explore FIFO, LIFO, Weighted-Average, and Specific Identification.
    • Lower of Cost or Net Realizable Value / Lower of Cost or Market
      Master the essentials of applying lower of cost or net realizable value (LCNRV) and lower of cost or market (LCM) for inventory under both U.S. GAAP and IFRS. Learn key concepts, real-world examples, and critical differences to excel on the FAR CPA Exam.
    • Retail Inventory Method, Gross Profit Method
      In-depth coverage of the Retail Inventory Method and the Gross Profit Method, featuring step-by-step calculations, real-world examples, and best practices for estimating inventory balances.
    • Inventory Errors and Adjustments
      Learn how to identify, correct, and prevent inventory misstatements using a 2-year approach and best-in-class accounting methodologies.
  • Chapter 12: Property, Plant, and Equipment
    • Acquisition and Capitalization (Self-Constructed Assets)
      Explore direct vs. indirect costs, interest capitalization, and the distinction between repairs and capital improvements for property, plant, and equipment assets.
    • Depreciation Methods (SL, DDB, Sum-of-the-Years’-Digits), Depletion
      A comprehensive guide exploring Straight-Line, Double-Declining Balance, and Sum-of-the-Years’-Digits depreciation methods, plus depletion for natural resources. Includes formulas, partial-year examples, practical illustrations, visual diagrams, and best practices.
    • Subsequent Expenditures (Repairs, Betterments, Replacements)
      Learn the key principles and best practices surrounding capitalizing or expensing subsequent expenditures on Property, Plant, and Equipment assets, including major repairs, betterments, and replacements.
    • Impairment Testing and Asset Retirement Obligations
      Detailed guidance on the two-step and one-step impairment test frameworks under U.S. GAAP, accompanied by an in-depth look at measuring and recording ARO liabilities.
    • Assets Held for Sale and Disposal
      Comprehensive guidance on the classification, measurement, and cessation of depreciation for long-lived assets held for sale or disposal under U.S. GAAP and IFRS.
  • Chapter 13: Investments
    • Classification (Trading, AFS, HTM, Fair Value)
      Explore how management’s intent drives the classification of investment assets into Trading, Available-for-Sale, Held-to-Maturity, and Fair Value categories, including the treatment of unrealized gains and losses under U.S. GAAP.
    • Equity Investments (Including Equity Method)
      Explore fair value through net income vs. equity method, significant influence thresholds, and best practices in accounting for equity investments.
    • Impairment Recognition for Debt and Equity Securities
      Explore the comprehensive approaches under ASC 326 for debt securities and impairment considerations for equity securities, including credit loss models, IFRS comparisons, best practices, and illustrative examples.
    • Disclosure Requirements for Investments
      Explore fair value hierarchy, realized vs. unrealized gains, concentration risks, and reclassification adjustments for investment disclosures under GAAP, including illustrative footnotes and best practices.
  • Chapter 14: Intangible Assets
    • Finite-Lived vs. Indefinite-Lived Intangibles (Amortization, Impairment)
      Explore the distinctions between finite-lived and indefinite-lived intangible assets, covering key accounting treatments including amortization and impairment testing, with practical examples and best practices.
    • Goodwill Recognition and Impairment Testing
      Explore goodwill recognition in business combinations under U.S. GAAP and IFRS, learn the qualitative vs. quantitative impairment testing methodologies, and understand key differences between the two frameworks.
    • Internal-Use Software (Capitalization, Amortization Rules)
      Explore comprehensive guidelines for internal-use software accounting, covering the three critical stages—preliminary project stage, application development, and post-implementation. Learn when to capitalize costs, when to expense them, and how to handle subsequent amortization. Includes practical illustrations, best practices, pitfalls, and a quiz.
  • Chapter 15: Payables and Accrued Liabilities
    • Accounts Payable, Accrued Liabilities, Estimated Liabilities
      A comprehensive guide to identifying, measuring, and accounting for short-term obligations such as accounts payable, accrued liabilities (including wages, utilities, and other operating expenses), and estimated liabilities under U.S. GAAP.
    • Asset Retirement Obligations (ARO), Exit or Disposal Obligations
      Comprehensive coverage of Asset Retirement Obligations (ARO) and exit or disposal obligations, focusing on initial recognition, discount rates, remeasurement triggers, and real-world applications.
    • Classification and Presentation Considerations
      Discover the key principles and best practices for classifying short-term vs. long-term obligations, including refinancing considerations, interest rate disclosures, and maturity schedules.
  • Chapter 16: Debt (Financial Liabilities)
    • Notes Payable, Bonds Payable, Debt Issuance Costs
      Explore the intricacies of notes payable, bonds payable, and debt issuance costs under U.S. GAAP—covering net vs. separate presentation, premium/discount amortization methods, and practical examples.
    • Recognition, Measurement (Discounts/Premiums), Amortization Methods
      Discover how to recognize, measure, and account for bonds issued at discounts or premiums, and master key amortization methods for effective debt management and CPA exam success.
    • Covenants, Troubled Debt Restructurings, Debt Modifications
      Explore debt covenants, TDR accounting, and debt modifications vs. extinguishments. Learn how to comply with financial covenants and disclose TDRs in line with U.S. GAAP requirements.
  • Chapter 17: Equity
    • Stock Issuance, Treasury Stock Transactions
      Comprehensive coverage of par vs. no-par stock, repurchase methods (cost and par value), and the impact of treasury stock transactions on equity balances.
    • Dividends (Cash, Property, Liquidating), Stock Dividends, Splits
      Learn the intricacies of accounting for dividends, including cash, property, and liquidating dividends, and understand the nuances of small vs. large stock dividends and stock splits.
    • Equity Presentation and Key Disclosures
      Explore comprehensive guidance on presenting shareholders’ equity, capital structure, dividends, and disclosure requirements. Learn how to effectively prepare the statement of changes in equity, address share-based considerations, and navigate both U.S. GAAP and IFRS implications for transparent and robust financial reporting.
    • Pushdown Accounting and Quasi Reorganizations (Advanced Concepts)
      Explore the advanced concepts of pushdown accounting and quasi reorganizations, focusing on the revaluation of assets and liabilities upon a pushdown event and the rarely used, yet crucial, quasi reorganization rules.
• PART IV: AREA III – SELECT TRANSACTIONS
  • Chapter 18: Accounting Changes and Error Corrections
    • Changes in Accounting Principle vs. Changes in Estimates
      Learn the essential distinctions between changes in accounting principles and changes in estimates, including real-world examples, best practices, and IFRS comparison, to excel in the FAR CPA exam.
    • Retrospective vs. Prospective Applications
      Explore the fundamentals of retrospective restatement and prospective approaches to accounting changes, including illustrative examples, diagrams, practical guidance, and case studies.
    • Error Corrections, Prior-Period Adjustments
      Learn the comprehensive steps for correcting previously issued financial statements, adjusting retained earnings, and applying retrospective approaches for comparative reporting.
  • Chapter 19: Contingencies and Commitments
    • Loss Contingencies and Gain Contingencies
      Explore the fundamentals of accounting for loss and gain contingencies under U.S. GAAP, the thresholds for accrual and disclosure, and the conservative treatment of uncertain gains.
    • Legal Claims, Potential Liabilities, Warranties, Guarantees
      Comprehensive guidance on the accounting for legal claims, potential liabilities, product warranties, and guarantees under U.S. GAAP. Includes real-world examples, decision-process diagrams, and best practices for practitioners preparing for the CPA FAR Examination.
    • Commitments (Operating Leases, Purchase Obligations)
      A comprehensive guide to recognizing and disclosing major long-term purchase commitments and operating leases under the legacy U.S. GAAP (ASC 840), complete with examples, visuals, and best practices.
    • Going Concern (ASC 205‑40: Evaluation and Disclosure)
      Comprehensive coverage of management’s evaluation period, substantial doubt criteria, mitigating factors, and required disclosures for going concern under ASC 205-40. Explore key steps, examples, diagrams, and best practices to ensure accurate financial reporting.
  • Chapter 20: Revenue Recognition
    • Five-Step Model (Identify Contract, Performance Obligations, etc.)
      Comprehensive guide to the five-step revenue recognition model under ASC 606, covering contract identification, performance obligations, transaction price determination, allocation, and revenue recognition with practical examples, diagrams, and best practices.
    • Principal vs. Agent, Variable Consideration
      Explore how to determine whether an entity acts as a principal or agent under ASC 606, including real-world scenarios (e.g., travel booking and consignment) and best practices for accounting for variable consideration.
    • Contract Costs, Licenses, Nonrefundable Fees
      Discover how to capitalize incremental contract acquisition costs, navigate licensing arrangements, and address nonrefundable fees under ASC 606, complete with practical insights and examples.
    • Presentation and Disclosure for Revenue Recognition
      A comprehensive exploration of revenue recognition presentation requirements, focusing on contract asset/liability classification, rollforwards, and major judgments in measuring revenue under ASC 606.
  • Chapter 21: Accounting for Income Taxes
    • Current Tax Expense/Benefit, Deferred Tax Assets/Liabilities
      Discover how to calculate and present current tax expense, deferred tax assets, and deferred tax liabilities, with practical insights on book vs. tax differences and intangible amortization.
    • Valuation Allowances, NOLs, Intraperiod Tax Allocation
      Explore the measurement of valuation allowances on deferred tax assets, the handling of net operating loss carryforwards, and the principles of intraperiod tax allocation for income taxes under U.S. GAAP.
    • Uncertain Tax Positions, Disclosures
      Explore the essentials of uncertain tax positions, including the two-step recognition and measurement approach, the 'more likely than not' threshold, and required footnote disclosures under U.S. GAAP.
  • Chapter 22: Fair Value Measurement
    • Definition of Fair Value, Valuation Approaches (Market, Cost, Income)
      A detailed guide to fair value measurement under U.S. GAAP (ASC 820), including Market, Cost, and Income Approaches, highest and best use concept, and practical examples for CPA exam readiness.
    • Fair Value Hierarchy (Levels 1, 2, 3)
      A deep dive into ASC 820's fair value hierarchy, exploring Level 1, Level 2, and Level 3 inputs, key disclosures, and reclassification procedures.
    • Required Disclosures
      Explore essential fair value measurement disclosure requirements under U.S. GAAP and IFRS, including sample footnotes, hierarchy transfers, and sensitivity analyses.
  • Chapter 23: Leases
    • Lessee Accounting (Finance vs. Operating)
      Learn how to classify leases as either finance or operating under ASC 842. Explore the five classification criteria, initial measurement of the right-of-use (ROU) asset, lease liability, and best practices for accurate and transparent financial reporting.
    • Lessor Accounting (Sales-Type, Direct Financing, Operating)
      Explore how lessors account for sales-type, direct financing, and operating leases under U.S. GAAP, focusing on revenue recognition, interest income, and key differences in asset treatment.
    • Sale-Leaseback Transactions
      Explore the intricacies of sale-leaseback transactions under U.S. GAAP and IFRS, including determining if a sale has occurred, timing of gain recognition, and the consequences of failed sales leading to financing arrangements.
    • Lease Disclosures
      Explore comprehensive guidance on lease disclosures, covering key quantitative and qualitative requirements under current accounting standards, including maturity analyses, discount rates, and variable lease payments.
  • Chapter 24: Subsequent Events
    • Recognized vs. Nonrecognized Subsequent Events
      Discover the differences between recognized and nonrecognized subsequent events in financial reporting, including their impact on financial statements, disclosure requirements, real-world examples, and best practices for accurate and compliant reporting.
    • Disclosure Requirements and Periods Covered
      Subsequent Events in U.S. GAAP: Key Differences Between Public and Private Entities, Reissuance Considerations, and Timely Disclosures
    • Impact on Financial Statements vs. Notes Disclosure
      Understand the pivotal difference between recognized (adjusting) and nonrecognized (disclosure-only) subsequent events. Learn how each type impacts financial statements, discover best practices, and avoid common pitfalls.
• PART V: IFRS COMPARISONS AND ADVANCED APPLICATIONS
  • Chapter 25: IFRS Overview and Key Differences from U.S. GAAP
    • Conceptual Framework Differences (IFRS vs. GAAP)
      A comprehensive examination of the conceptual frameworks under IFRS and U.S. GAAP, highlighting key definitions, fundamental principles, and qualitative characteristics for CPA exam readiness.
    • Financial Statement Presentation and Terminology Under IFRS
      Discover the key differences in financial statement presentation under IFRS, including standard naming conventions and layouts, and learn how global accounting principles shape transparency, comparability, and consistency in financial reporting.
    • Major Recognition/Measurement Differences (Inventory, PP&E, Impairment, Leases, Going Concern, etc.)
      Explore key recognition and measurement differences between U.S. GAAP and IFRS in areas such as inventory costing, property, plant and equipment, impairment testing, lease accounting, and going concern assessments.
    • IFRS vs. GAAP Disclosure Variations and Convergence Efforts
      Explore the key disclosure differences between IFRS and U.S. GAAP, ongoing convergence efforts, and practical examples highlighting main expansions in financial statement notes.
  • Chapter 26: Complex Illustrations, Case Studies, and Practice Scenarios
    • Consolidated Financial Statements (Advanced Topics, Eliminations)
      Explore advanced consolidation issues including variable interest entities, partial ownership changes, and intercompany transaction eliminations, with practical examples, diagrams, and best practices for the CPA FAR Exam.
    • Business Combinations (Purchase Accounting, Goodwill, Noncontrolling Interests)
      Explore the acquisition method’s comprehensive steps, goodwill measurement, and noncontrolling interest accounting under US GAAP and IFRS, featuring practical examples and diagrams for deeper clarity.
    • Foreign Currency Transactions, Translation, and Remeasurement (Overview)
      Master foreign currency transactions, from initial recognition to financial statement translation and remeasurement. Explore how functional and reporting currencies differ, learn best practices, and understand the impact on OCI.
    • Additional Advanced Topics: Pushdown Accounting Revisited, Quasi Reorganizations
      Explore in-depth guidance on pushdown accounting after control changes and understand quasi reorganizations, including rare steps, best practices, and illustrative examples.
    • Comprehensive Exercises Integrating Multiple FAR Topics
      Explore final capstone scenarios that seamlessly integrate revenue recognition, inventory valuation, property, plant, and equipment transactions, intangible assets, and other advanced FAR concepts into cohesive practice exercises.
• PART VI: FINAL SUMMARIES AND QUICK REFERENCE
  • Chapter 27: Key Takeaways and Reference
    • High-Level Summaries of FAR Concepts and Standards
      A comprehensive overview of essential FAR concepts and standards, offering concise bullet-point recaps, clarifying examples, mermaid diagrams, and key references for deeper study.
    • Frequently Used Formulas, Ratios, and Journal Entries
      Discover essential CPA exam formulas, key financial ratios, and standard journal entries in this concise reference guide for FAR success.
    • Last-Minute Study Notes and Exam-Day Reminders
      Essential final tips and strategies for the FAR CPA Exam: checklists, time-management insights, and stress-management pointers designed to boost your confidence on test day.