FAR CPA Syllabus Guide 2025: What to Expect & Study

By IIC Lakshya

07 Oct 2025

Others

With the integration of CPA evolution, which was effective from 2024, FAR is one of the core sections that students must learn and appear for exams. Some topics have been relocated to the BAR discipline, which includes business analysis and reporting. This is only allowed for a specialized test. Below are the FAR syllabus and exam format necessary to acquire a CPA license.

FAR CPA Syllabus

The American Institute of Certified Public Accountants (AICPA) administers the FAR CPA exam. The exam tests students on the basis of a mix of application and analysis. Furthermore, the CPA Course integrates understanding and remembering skills. Explore the key topics covered in the Financial Accounting and Reporting (FAR) section.

Key Topics Covered in FAR

Learn more about the key topics that are covered in the paper of Financial Accounting and Reporting (FAR) CPA Exam section. A student should learn more about the integral parts because this information will contribute to cracking the exam. If you are planning to learn more about CPA exam requirements, this syllabus will help.

Financial Reporting

To learn how to become a CPA in India, these sections are important for students. The weightage of this area is about 30% to 40% which covers topics like the conceptual framework, financial statement presentation, disclosures, and comparison of IFRS and US GAAP, two major accounting standards. The section includes guidelines and principles of financial accounting, along with analysing the financial statements.

Select Balance Sheet Accounts

In the CPA evolution exam, students learn about assets, equity, and liabilities. The section covers aspects like detailed knowledge of inventory, receivables, cash, property, plant, and equipment (PP&E). It also educates students about deferred revenues, contingencies, and understanding debt.

Select Transactions

Students who are appearing for the CPA exam, the FAR section also covers topics like revenue recognition, bonds, derivatives, investments, leases and pensions, accounting changes, and error corrections. Other aspects are covered in this paper, like rectifying errors and adjusting are also an integral part of this section.

Elements of this section help students learn about calculating revenue and investment. Read the Certified Public Accountant (CPA) Salary page to learn more about the future growth of the career.

Exam Format

Now that you have developed an in-depth knowledge of the syllabus of the FAR CPA syllabus, you should learn about the exam format. Once you have paid the CPA course fees, your registration will be completed to appear for the exam. You have to score a minimum of 75 on the 99 scale with a weighted average of both MCQ and TBS performance to qualify for the exam.

Multiple-Choice Questions (MCQs) - there are both scored and unscored questions. The test is to check on the knowledge of the students and their ability to apply concepts.

Task-Based Simulations (TBSs) - these questions are more complex based on practical scenarios where students need to analyse financial data information, along with offering solutions.

Key Changes in the New Syllabus of CPA Evolution

To learn whether CA is better or CPA, you need to be focused on which career path to prepare for. With the CPA evolution from 2024, there have been some key changes that a CPA student must know. It will help them understand the syllabus in-depth and crack the exam easily. Read in detail about the key changes.

The focus of the CPA paper is still on core financial reporting principles, but it is more of a targeted approach.
There are some areas from the previous syllabus that have been removed from the revised version in the updated version as government accounting.
The revised version also has fewer topics, which are focused on enhancing deeper learning and better retention.

Ready to Crack the CPA FAR Exam?

In conclusion, FAR is an integral section of the CPA Exam section which must be attended by students. If you want to acquire a Certified Public Accountant certification, you should develop a schedule that covers all of the FAR syllabus. With the deep knowledge of the FAR CPA exam, you are ready to crack the CPA exam.

Frequently Asked Questions (FAQs)

How many questions are on the FAR CPA?

Across two testlets, there are approximately 50 questions in the Multiple Choice Questions (MCQs) section. There are 7 simulations in three testlets for Task-Based Simulations (TBSs).

What is the pass score in FAR?

Students should score about 75 out of 99 scale to pass in the FAR CPA exam to pass. Both MCQs and TBSs have a 50% weightage in the paper; thus, the overall score of FAR is calculated.

Is FAR considered the hardest section of the CPA exam?

For some students, FAR is considered one of the challenging sections in the CPA exam. Due to multiple topics related to profit, non-profit, and governmental aspects, it can be a little difficult and confusing for students without any prior knowledge in accounting and taxation.

How many study hours are typically recommended for FAR?

The common guideline to prepare for the FAR CPA exam section is 80 to 100 hours. Some candidates do go higher based on their grasp of knowledge and prior knowledge of the core topics.

Does FAR cover International accounting standards (IFRS) or foreign tax?

There are occasional references or comparisons with IFRS topics or foreign tax rules, but it primarily does not cover them. It focuses on the U.S. financial reporting standards and U.S. GAAP.