i
Uniform CPA Examination Blueprints
Uniform CPA
Examination
®
Financial Accounting and
Reporting (FAR)
Blueprint
Approved by the Board of Examiners
American Institute of CPAs
May 31, 2018
Effective date: Jan 1, 2019
Note: This document only contains information
related to the FAR section. Download the other
Exam section Blueprints or the complete Exam
Blueprints at aicpa.org/examblueprints.
1
Uniform CPA Examination Blueprints
Table of contents
Uniform CPA Examination Blueprints
2 Introduction: Uniform CPA Examination Blueprints
AUD1 Auditing and Attestation (AUD)
AUD2 Section introduction
AUD6 Summary blueprint
AUD7 Area I — Ethics, Professional Responsibilities
and General Principles
AUD12 Area II — Assessing Risk and Developing
a Planned Response
AUD18 Area III — Performing Further Procedures
and Obtaining Evidence
AUD23 Area IV — Forming Conclusions and Reporting
BEC1 Business Environment and Concepts (BEC)
BEC2 Section introduction
BEC6 Summary blueprint
BEC7 Area I — Corporate Governance
BEC9 Area II — Economic Concepts and Analysis
BEC11 Area III — Financial Management
BEC13 Area IV — Information Technology
BEC15 Area V — Operations Management
FAR1 Financial Accounting and Reporting (FAR)
FAR2 Section introduction
FAR6 Summary blueprint
FAR7 Area I — Conceptual Framework, Standard-Setting
and Financial Reporting
FAR13 Area II — Select Financial Statement Accounts
FAR19 Area III — Select Transactions
FAR24 Area IV — State and Local Governments
REG1 Regulation (REG)
REG2 Section introduction
REG5 Summary blueprint
REG6 Area I — Ethics, Professional Responsibilities
and Federal Tax Procedures
REG8 Area II — Business Law
REG12 Area III — Federal Taxation of Property Transactions
REG15 Area IV — Federal Taxation of Individuals
REG18 Area V — Federal Taxation of Entities
2
Uniform CPA Examination Blueprints
The Uniform CPA Examination (the Exam) is comprised of four sections, each
four hours long: Auditing and Attestation (AUD), Business Environment and
Concepts (BEC), Financial Accounting and Reporting (FAR) and Regulation (REG).
The table below presents the design of the Exam by section, section time and
question type.
The table below presents the scoring weight of multiple-choice questions
(MCQs), task-based simulations (TBSs) and written communication for each
Exam section.
The AICPA has adopted a skill framework for the Exam based on the revised
Bloom’s Taxonomy of Educational Objectives. Bloom’s Taxonomy classies a
continuum of skills that students can be expected to learn and demonstrate.
Approximately 600 representative tasks that are critical to a newly licensed
CPA’s role in protecting the public interest have been identied. The
representative tasks combine both the applicable content knowledge and skills
required in the context of the work of a newly licensed CPA. Based on the nature
of a task, one of four skill levels, derived from the revised Bloom’s Taxonomy,
was assigned to each of the tasks, as follows:
Introduction
Uniform CPA Examination Blueprints
Section
Section
time
Multiple-choice
questions (MCQs)
Task-based
simulations (TBSs)
Written
communication
AUD 4 hours 72 8 —
BEC 4 hours 62 4 3
FAR 4 hours 66 8 —
REG 4 hours 76 8 —
Score weighting
Section
Multiple-choice
questions (MCQs)
Task-based
simulations (TBSs)
Written
communication
AUD 50% 50% —
BEC 50% 35% 15%
FAR 50% 50% —
REG 50% 50% —
Skill levels
Evaluation
The examination or assessment of problems, and
use of judgment to draw conclusions.
Analysis
The examination and study of the interrelationships
of separate areas in order to identify causes and nd
evidence to support inferences.
Application
The use or demonstration of knowledge, concepts
or techniques.
Remembering and
Understanding
The perception and comprehension of the
signicance of an area utilizing knowledge gained.
Introduction
3
Uniform CPA Examination Blueprints
The skill levels to be assessed on each section of the Exam are included in the
table below.
*Includes written communication
The purpose of the blueprint is to:
• Document the minimum level of knowledge and skills necessary for initial
licensure.
• Assist candidates in preparing for the Exam by outlining the knowledge and
skills that may be tested.
• Apprise educators about the knowledge and skills candidates will need to
function as newly licensed CPAs.
• Guide the development of Exam questions.
The tasks in the blueprints are representative and are not intended to be (nor
should they be viewed as) an all-inclusive list of tasks that may be tested on
the Exam. It also should be noted that the number of tasks associated with a
particular content group or topic is not indicative of the extent such content
group, topic or related skill level will be assessed on the Exam.
Section
Remembering and
Understanding Application Analysis Evaluation
AUD 30–40% 30–40% 15–25% 5–15%
BEC 15–25% 50–60%* 20–30% —
FAR 10–20% 50–60% 25–35% —
REG 25–35% 35–45% 25–35% —
Each section of the Exam has a section introduction and a corresponding
section blueprint.
• The section introduction outlines the scope of the section, the content
organization and tasks, the content allocation, the overview of content areas,
the skill allocation and a listing of the section’s applicable reference literature.
• The section blueprint outlines the content to be tested, the associated skill
level to be tested and the representative tasks a newly licensed CPA would
need to perform to be considered competent. The blueprints are organized by
content AREA, content GROUP, and content TOPIC. Each topic includes one
or more representative TASKS that a newly licensed CPA may be expected to
complete.
Revised taxonomy see Anderson, L.W. (Ed.), Krathwohl, D.R. (Ed.), Airasian, P.W., Cruikshank, K.A., Mayer, R.E., Pintrich, P.R., Raths, J., & Wittrock, M.C. (2001). A taxonomy for learning, teaching, and assessing: A revision of Bloom’s Taxonomy of
Educational Objectives (Complete Edition). New York: Longman. For original taxonomy see Bloom, B.S. (Ed.), Engelhart, M.D., Furst, E.J., Hill, W.H., & Krathwohl, D.R. (1956). Taxonomy of educational objectives: The classication of educational
goals. Handbook 1: Cognitive domain. New York: David McKay.
Introduction
Uniform CPA Examination Blueprints (continued)
FAR1
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Uniform CPA Examination
Financial Accounting and
Reporting (FAR)
Blueprint
FAR2
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
The Financial Accounting and Reporting (FAR) section of the Uniform CPA
Examination (the Exam) assesses the knowledge and skills that a newly licensed
CPA must demonstrate in the nancial accounting and reporting frameworks
used by business entities (public and nonpublic), not-for-prot entities and state
and local government entities.
The nancial accounting and reporting frameworks that are eligible for
assessment within the FAR section of the Exam include the standards and
regulations issued by the:
• Financial Accounting Standards Board (FASB)
• U.S. Securities and Exchange Commission (U.S. SEC)
• American Institute of Certied Public Accountants (AICPA)
• Governmental Accounting Standards Board (GASB)
• International Accounting Standards Board (IASB)
A listing of standards and regulations promulgated by these bodies, and other
reference materials that are eligible for assessment in the FAR section of the
Exam are included under References at the conclusion of this introduction.
Content organization and tasks
The FAR section blueprint is organized by content AREA, content GROUP and
content TOPIC. Each group or topic includes one or more representative TASKS
that a newly licensed CPA may be expected to complete in practice.
Tasks in the FAR section blueprint are representative. The tasks are not
intended to be (nor should they be viewed as) an all-inclusive list of tasks that
may be tested in the FAR section of the Exam. Additionally, it should be noted
that the number of tasks associated with a particular content group or topic
is not indicative of the extent such content group, topic or related skill level
will be assessed on the Exam. For example, the topic titled “Notes to nancial
statements” in Area I includes two tasks that are intended to encompass the
required disclosures for any topic in the FASB Accounting Standards Codication,
while the group titled “Leases” in Area III includes eight tasks that are limited to
the accounting requirements in Leases Topic of the FASB Accounting Standards
Codication. The number of tasks included in the blueprint for this group and
this topic is not intended to suggest that “Leases” are more signicant to newly
licensed CPAs or will be tested more than the “Notes to nancial statements.”
Similarly, examples provided within the task statements should not be viewed as
all-inclusive.
Content allocation
The following table summarizes the content areas and the allocation of content
tested in the FAR section of the Exam:
Overview of content areas
Area I of the FAR section blueprint covers FASB’s Conceptual Framework, FASB’s
standard-setting process and several different nancial reporting topics. The
nancial reporting topics include the following:
• General-purpose nancial statements applicable to for-prot entities,
not-for-prot entities and employee benet plans under the FASB Accounting
Standards Codication
• Disclosures specic to public companies including earnings per share
and segment reporting under the FASB Accounting Standards Codication
and the interim, annual and periodic ling requirements for U.S. registrants in
accordance with the rules of the U.S. SEC
• Financial statements prepared under special purpose frameworks as described
in AU-C Section 800 of the Codication of Statements on Auditing Standards
Section introduction
Content area Allocation
Area I
Conceptual Framework, Standard-Setting
and Financial Reporting
25–35%
Area II
Select Financial Statement Accounts
30–40%
Area III
Select Transactions
20–30%
Area IV
State and Local Governments
5–15%
Financial Accounting and Reporting
FAR3
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Area II of the FAR section blueprint covers the nancial accounting and
reporting requirements in the FASB Accounting Standards Codication that are
applicable to select nancial statement accounts.
• To the extent applicable, each group and topic in the area is eligible for testing
within the context of both for-prot and not-for-prot entities.
– If signicant accounting or reporting differences exist between for-prot
and not-for-prot entities for a given group or topic, such differences are in
representative not-for-prot tasks in the blueprint.
Area III of the FAR section blueprint covers the nancial accounting and
reporting requirements for select transactions that are applicable to entities
under the FASB Accounting Standards Codication and the IASB standards
• The testing of content under the IASB standards is limited to a separate group
titled, “Differences between IFRS and U.S. GAAP.”
• To the extent applicable, the remaining groups in the area are eligible for
testing within the context of both for-prot and not-for-prot entities.
– If signicant accounting or reporting differences exist between for-prot and
not-for-prot entities, such differences are in representative not-for-prot
tasks in the blueprint.
Area IV of the FAR section blueprint covers GASB’s conceptual framework as
well the nancial accounting and reporting requirements for state and local
governments under the GASB standards and interpretations.
Section assumptions
The FAR section of the Exam includes multiple-choice questions, task-based
simulations and research prompts. When completing questions in the FAR
section of the Exam, candidates should assume that all of the information
provided in each question is material. In addition, candidates should assume
that each question applies to a for-prot business entity reporting under U.S.
GAAP unless otherwise stated in the fact pattern for a question. For example,
questions that apply to not-for-prot entities specify the nature of these entities
Section introduction
as “not-for-prot” or “non-governmental, not-for-prot.” Questions that apply to
IFRS include phrases such as “under IFRS” or “according to IFRS.” Questions
that apply to the state and local governments include phrases such as “local
government,” “state,” “municipality” or “city.”
Skill allocation
The Exam focuses on testing higher order skills. Based on the nature of
the task, each representative task in the FAR section blueprint is assigned
a skill level. FAR section considerations related to the skill levels are
discussed below.
Skill levels
Evaluation
The examination or assessment of problems, and
use of judgment to draw conclusions.
Analysis
The examination and study of the interrelationships
of separate areas in order to identify causes and nd
evidence to support inferences.
Application
The use or demonstration of knowledge, concepts
or techniques.
Remembering and
Understanding
The perception and comprehension of the
signicance of an area utilizing knowledge gained.
Financial Accounting and Reporting (continued)
FAR4
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Section introduction
Financial Accounting and Reporting (continued)
• Remembering and Understanding tasks are in all four areas of the FAR blueprint.
These tasks, such as identifying transactions and nancial reporting requirements,
frequently require newly licensed CPAs to demonstrate their comprehension of
accounting concepts and standards. Area IV has the highest concentration of
remembering and understanding tasks.
• Application tasks are in all four areas of the FAR blueprint. These tasks, such as
preparing journal entries and nancial statements, frequently require newly licensed
CPAs to use accounting concepts and standards to measure and recognize nancial
statement amounts.
• Analysis tasks are in Area I, Area II and Area III of the FAR blueprint. These tasks,
such as reconciling account balances, interpreting agreements and detecting
nancial reporting discrepancies, frequently require newly licensed CPAs to
demonstrate a higher level of interpretation. Area I and Area II have the highest
concentration of analysis tasks.
The representative tasks combine both the applicable content knowledge and the
skills required in the context of the work that a newly licensed CPA would reasonably
be expected to perform. The FAR section does not test any content at the Evaluation
skill level as newly licensed CPAs are not expected to demonstrate that level of skill in
regards to the FAR content.
FAR5
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Section introduction
Financial Accounting and Reporting (continued)
References — Financial Accounting and Reporting
• Financial Accounting Standards Board (FASB) Accounting Standards Codication
• FASB Concepts Statements
• U.S. Securities and Exchange Commission References:
- Securities Exchange Act of 1934
- Regulation S-X of the Code of Federal Regulations (17 CFR Part 210)
- Regulation S-K of the Code of Federal Regulations (17 CFR Part 229)
• Codication of Statements on Auditing Standards: AU-C Section 800, Special
Considerations – Audits of Financial Statements Prepared in Accordance with Special
Purpose Frameworks
• AICPA Accounting and Auditing Guides
• International Financial Reporting Standards (IFRS) References:
- International Financial Reporting Standards
- International Accounting Standards
- Interpretations issued by the IFRS Interpretations Committee
- Interpretations issued by the Standing Interpretations Committee
• State and Local Government References:
- Governmental Accounting Standards Board (GASB) Codication of
Governmental Accounting and Financial Reporting Standards
- GASB Statements, Interpretations, Technical Bulletins and Concepts Statements
- National Council on Governmental Accounting (NCGA) Statements and
Interpretations
• Current textbooks on accounting for business entities, not-for-prot entities, and state
and local government entities
FAR6
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Content area allocation Weight
I. Conceptual Framework, Standard-Setting and Financial Reporting
25–35%
II. Select Financial Statement Accounts
30–40%
III. Select Transactions
20–30%
IV. State and Local Governments
5–15%
Skill allocation Weight
Evaluation —
Analysis 25–35%
Application 50–60%
Remembering and Understanding 10–20%
Financial Accounting and Reporting (FAR)
Summary blueprint
FAR7
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area I — Conceptual Framework, Standard-Setting
and Financial Reporting (25–35%)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
A. Conceptual framework and standard-setting for business and nonbusiness entities
1. Conceptual
framework
Recall the purpose and characteristics in the conceptual framework for business and
nonbusiness entities.
2. Standard-setting
process
Recall the due process steps followed by the FASB to establish nancial accounting and
reporting standards.
B. General-purpose nancial statements: for-prot business entities
1. Balance sheet/
statement of
nancial position
Prepare a classied balance sheet from a trial balance and supporting documentation.
Adjust the balance sheet to correct identied errors.
Detect, investigate and correct discrepancies while agreeing the balance sheet amounts
to supporting documentation.
Calculate uctuations and ratios and interpret the results while reviewing comparative
balance sheets.
2. Income statement/
statement of prot
or loss
Prepare a multiple-step income statement from a trial balance and supporting
documentation.
Prepare a single-step income statement from a trial balance and supporting
documentation.
Adjust the income statement to correct identied errors.
Detect, investigate and correct discrepancies while agreeing the income statement
amounts to supporting documentation.
Calculate uctuations and ratios and interpret the results while reviewing comparative
income statements.
FAR8
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area I — Conceptual Framework, Standard-Setting
and Financial Reporting (25–35%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
B. General-purpose nancial statements: for-prot business entities (continued)
3. Statement of
comprehensive
income
Prepare a statement of comprehensive income from a trial balance and supporting
documentation.
Calculate reclassication adjustments for items of other comprehensive income.
Adjust the statement of comprehensive income to correct identied errors.
Detect, investigate and correct discrepancies while agreeing the statement of
comprehensive income amounts to supporting documentation.
4. Statement of
changes in equity
Prepare a statement of changes in equity from a trial balance and supporting
documentation.
Adjust the statement of changes in equity to correct identied errors.
Detect, investigate and correct discrepancies while agreeing the statement of changes in
equity amounts to supporting documentation.
5. Statement of
cash ows
Prepare a statement of cash ows using the direct method and required disclosures from
supporting documentation.
Prepare a statement of cash ows using the indirect method and required disclosures
from supporting documentation.
Adjust a statement of cash ows to correct identied errors.
Detect, investigate and correct discrepancies while agreeing the statement of cash ows
amounts to supporting documentation.
Derive the impact of transactions on the statement of cash ows.
FAR9
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area I — Conceptual Framework, Standard-Setting
and Financial Reporting (25–35%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
B. General-purpose nancial statements: for-prot business entities (continued)
6. Notes to nancial
statements
Adjust the notes to the nancial statements to correct identied errors and omissions.
Compare the notes to the nancial statements to the nancial statements and supporting
documentation to identify inconsistencies and investigate those inconsistencies.
7. Consolidated
nancial
statements
(including wholly
owned subsidiaries
and noncontrolling
interests)
Recall basic consolidation concepts and terms (e.g. controlling interest, noncontrolling
interest, primary beneciary, variable interest entity).
Prepare consolidated nancial statements (includes adjustments, eliminations and/or
noncontrolling interests) from supporting documentation.
Adjust consolidated nancial statements to correct identied errors.
Detect, investigate and correct discrepancies identied while agreeing the consolidated
nancial statement amounts to supporting documentation.
8. Discontinued
operations
Prepare the discontinued operations portion of the nancial statements from a trial
balance and supporting documentation.
9. Going concern
Recall the requirements for disclosing uncertainties about an entity’s ability to continue
as a going concern.
FAR10
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area I — Conceptual Framework, Standard-Setting
and Financial Reporting (25–35%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
C. General-purpose nancial statements: nongovernmental, not-for-prot entities
1. Statement of
nancial position
Recall the purpose and objectives of the statement of nancial position for a
nongovernmental, not-for-prot entity.
Prepare a statement of nancial position for a nongovernmental, not-for-prot entity from
a trial balance and supporting documentation.
Adjust the statement of nancial position for a nongovernmental, not-for-prot entity to
correct identied errors.
2. Statement of
activities
Recall the purpose and objectives of the statement of activities for a nongovernmental,
not-for-prot entity.
Prepare a statement of activities for a nongovernmental, not-for-prot entity from a trial
balance and supporting documentation.
Adjust the statement of activities for a nongovernmental, not-for-prot entity to correct
identied errors.
3. Statement of
cash ows
Recall the purpose and objectives of the statement of cash ows for a nongovernmental,
not-for-prot entity.
Prepare a statement of cash ows and required disclosures using the direct method for
a nongovernmental, not-for-prot entity.
Prepare a statement of cash ows and required disclosures using the indirect method
for a nongovernmental, not-for-prot entity.
Adjust the statement of cash ows for a nongovernmental, not-for-prot entity to correct
identied errors.
4. Notes to nancial
statements
Adjust the notes to the nancial statements to correct identied errors and omissions.
FAR11
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area I — Conceptual Framework, Standard-Setting
and Financial Reporting (25–35%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
D. Public company reporting topics (U.S. SEC reporting requirements, earnings per share and segment reporting)
Recall the purpose of forms 10-Q, 10-K and 8-K that a U.S. registrant is required to le with
the U.S. Securities and Exchange Commission under the Securities Exchange Act
of 1934.
Identify the signicant components of Form 10-Q and Form 10-K led with the U.S.
Securities and Exchange Commission.
Prepare nancial statement note disclosures for reportable segments.
Calculate basic earnings per share.
Calculate diluted earnings per share.
E. Financial statements of employee benet plans
Identify the required nancial statements for a dened benet pension plan and a dened
contribution pension plan.
Prepare a statement of changes in net assets available for benets for a dened benet
pension plan and a dened contribution pension plan.
Prepare a statement of net assets available for benets for a dened benet pension plan
and a dened contribution pension plan.
FAR12
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area I — Conceptual Framework, Standard-Setting
and Financial Reporting (25–35%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
F. Special purpose frameworks
Recall appropriate nancial statement titles to be used for the nancial statements
prepared under a special purpose framework.
Perform calculations to convert cash basis or modied cash basis nancial statements
to accrual basis nancial statements.
Prepare nancial statements using the cash basis of accounting.
Prepare nancial statements using a modied cash basis of accounting.
Prepare nancial statements using the income tax basis of accounting.
FAR13
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area II — Select Financial Statement Accounts
(30–40%)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
A. Cash and cash equivalents
Calculate cash and cash equivalents balances to be reported in the nancial statements.
Reconcile the cash balance per the bank statement to the general ledger.
Investigate unreconciled cash balances to determine whether an adjustment to the
general ledger is necessary.
B. Trade receivables
Calculate trade receivables and allowances and prepare journal entries.
Prepare any required journal entries to record the transfer of trade receivables (secured
borrowings, factoring, assignment, pledging).
Prepare a rollforward of the trade receivables account balance using various sources of
information.
Reconcile and investigate differences between the subledger and general ledger for trade
receivables to determine whether an adjustment is necessary.
C. Inventory
Calculate the carrying amount of inventory and prepare journal entries using various costing
methods.
Measure impairment losses on inventory.
Prepare a rollforward of the inventory account balance using various sources of information.
Reconcile and investigate differences between the subledger and general ledger for
inventory to determine whether an adjustment is necessary.
FAR14
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area II — Select Financial Statement Accounts
(30–40%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
D. Property, plant and equipment
Calculate the gross and net property, plant and equipment balances and prepare
journal entries.
Calculate gains or losses on the disposal of long-lived assets to be recognized in the
nancial statements.
Measure impairment losses on long-lived assets to be recognized in the nancial
statements.
Calculate the amounts necessary to prepare journal entries to record a nonmonetary exchange.
Determine whether an asset qualies to be reported as held for sale in the nancial
statements.
Adjust the carrying amount of assets held for sale and calculate the loss to be recognized
in the nancial statements.
Prepare a rollforward of the property, plant and equipment account balance using various
sources of information.
Reconcile and investigate differences between the subledger and general ledger for
property, plant and equipment to determine whether an adjustment is necessary.
E. Investments
1. Financial assets
at fair value
Identify investments that are eligible or required to be reported at fair value in the
nancial statements.
Calculate the carrying amount of investments measured at fair value and prepare
journal entries (excluding impairment).
FAR15
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area II — Select Financial Statement Accounts
(30–40%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
E. Investments (continued)
1. Financial assets
at fair value,
(continued)
Calculate gains and losses to be recognized in net income or other comprehensive income
for investments measured at fair value and prepare journal entries.
Calculate investment income to be recognized in net income for investments measured
at fair value and prepare journal entries.
Measure impairment losses to be recognized on applicable investments reported at
fair value in the nancial statements.
2. Financial assets
at amortized cost
Identify investments that are eligible to be reported at amortized cost in the nancial
statements.
Calculate the carrying amount of investments measured at amortized cost and prepare
journal entries (excluding impairment).
Measure impairment losses to be recognized on investments reported at amortized cost
in the nancial statements.
3. Equity method
investments
Identify when the equity method of accounting can be applied to an investment.
Calculate the carrying amount of equity method investments and prepare journal entries
(excluding impairment).
Measure impairment losses to be recognized in the nancial statements on equity
method investments.
FAR16
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area II — Select Financial Statement Accounts
(30–40%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
F. Intangible assets – goodwill and other
Identify the criteria for recognizing intangible assets in the statement of nancial position and
classify intangible assets as either nite-lived or indenite-lived.
Identify impairment indicators for goodwill and other indenite-lived intangible assets.
Calculate the carrying amount of nite-lived intangible assets reported in the nancial
statements (initial measurement, amortization and impairment) and prepare journal entries.
Calculate the carrying amount of goodwill and other indenite-lived intangible assets reported
in the nancial statements (includes initial measurement and impairment) and prepare journal
entries.
G. Payables and accrued liabilities
Calculate the carrying amount of payables and accrued liabilities and prepare journal entries.
Identify and calculate liabilities arising from exit or disposal activities and determine the
timing of recognition in the nancial statements.
Calculate the liabilities and assets resulting from asset retirement obligations and prepare
journal entries.
Reconcile and investigate differences between the subledger and general ledger for accounts
payable and accrued liabilities to determine whether an adjustment is necessary.
H. Long-term debt (nancial liabilities)
1. Notes and bonds
payable
Classify a change to a debt instrument as either a modication of terms or an extinguishment of debt.
Understand when a change to the terms of a debt instrument qualies as a troubled debt
restructuring.
Classify a nancial instrument as either debt or equity, based on its characteristics.
FAR17
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area II — Select Financial Statement Accounts
(30–40%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
H. Long-term debt (nancial liabilities) (continued)
1. Notes and
bonds payable,
(continued)
Calculate the interest expense attributable to notes and bonds payable reported in the nancial
statements (including discounts, premiums or debt issuance costs).
Calculate the carrying amount of notes and bonds payable and prepare journal entries.
2. Debt covenant
compliance
Perform debt covenant calculations as stipulated in a debt agreement to ascertain compliance.
I. Equity
Prepare journal entries to recognize equity transactions in the nancial statements.
Calculate net asset balances for a nongovernmental, not-for-prot entity and prepare
journal entries.
J. Revenue recognition
Recall concepts of accounting for revenue.
Determine the amount and timing of revenue to be recognized under a contract and prepare
journal entries.
Determine revenue to be recognized by a nongovernmental, not-for-prot entity for contributed
services received and prepare journal entries.
Interpret agreements, contracts and/or other supporting documentation to determine the amount
and timing of revenue to be recognized in the nancial statements.
Reconcile and investigate differences between the sales subledger and the general ledger to
determine whether an adjustment is necessary.
FAR18
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
K. Compensation and benets
1. Compensated
absences
Calculate the carrying amount of the liability for compensated absences and prepare journal
entries.
2. Retirement
benets
Use actuarial outputs to calculate the costs and the funded status for a dened benet
pension plan or a dened benet postretirement plan and prepare journal entries.
3. Stock
compensation
(share-based
payments)
Recall concepts associated with share-based payment arrangements (grant date, vesting
conditions, inputs to valuation techniques, valuation models).
Calculate compensation costs to be recognized for a share-based payment arrangement
classied as equity and prepare journal entries.
Calculate compensation costs to be recognized for a share-based payment arrangement
classied as a liability and prepare journal entries.
L. Income taxes
Recall the accounting treatment for uncertainty in income taxes.
Recall the criteria for recognizing or adjusting a valuation allowance for a deferred tax
asset in the nancial statements.
Calculate the income tax expense, current taxes payable/receivable and deferred tax
liabilities/assets to be reported in the nancial statements.
Prepare journal entries to record the tax provision in the nancial statements.
Area II — Select Financial Statement Accounts
(30–40%) (continued)
FAR19
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area III — Select Transactions
(20–30%)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
A. Accounting changes and error corrections
Calculate a required adjustment to the nancial statements due to an accounting change
or error correction and determine whether it requires prospective or retrospective
application.
Derive the impact to the nancial statements and related note disclosures of an
accounting change or an error correction.
B. Business combinations
Prepare journal entries to record the identiable net assets acquired in a business
combination that results in the recognition of goodwill.
Prepare journal entries to record the identiable net assets acquired in a business
combination that includes a noncontrolling interest.
Prepare journal entries to record the identiable net assets acquired in a business
combination that results in the recognition of a bargain purchase gain.
Adjust the nancial statements to properly reect changes in contingent consideration
related to a business combination.
Calculate the consideration transferred in a business combination.
Adjust the nancial statements to properly reect measurement period adjustments
related to a business combination.
FAR20
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area III — Select Transactions
(20–30%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
C. Contingencies and commitments
Recall the recognition and disclosure criteria used to identify commitments and
contingencies.
Calculate amounts of contingencies and prepare journal entries.
Review supporting documentation to determine whether a commitment or contingency
requires recognition or disclosure in the nancial statements.
D. Derivatives and hedge accounting (e.g., swaps. options, forwards)
Identify the characteristics of a freestanding and/or embedded derivative nancial
instrument to be recognized in the nancial statements.
Identify the criteria necessary to qualify for hedge accounting.
Prepare journal entries for hedging transactions.
Prepare journal entries for derivative nancial instruments (swaps, options and forwards).
E. Foreign currency transactions and translation
Recall the basic functional currency concepts including the indicators to be considered
when determining an entity's functional currency.
Calculate transaction gains or losses recognized from monetary transactions
denominated in a foreign currency.
Adjust an entity's nancial statements (local currency to functional currency or functional
currency to reporting currency) and recognize the effect on equity through net income or
other comprehensive income.
FAR21
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area III — Select Transactions
(20–30%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
F. Leases
Recall the appropriate accounting treatment for residual value guarantees, purchase options
and variable lease payments included in leasing arrangements.
Identify the criteria for classifying a lease arrangement.
Calculate the carrying amount of lease-related assets and liabilities and prepare journal entries
that a lessee should record.
Calculate the carrying amount of lease-related assets and prepare journal entries that a lessor
should record.
Calculate the lease costs that a lessee should recognize in the income statement.
Prepare journal entries that the seller/lessee should record for a sale-leaseback transaction.
Calculate the amount of lease income that a lessor should recognize in the income statement.
Interpret agreements, contracts and/or other supporting documentation to determine the
appropriate accounting treatment of a leasing arrangement and prepare the journal entries that
the lessee should record.
G. Nonreciprocal transfers
Recall the recognition requirements associated with conditional and unconditional
promises to give (pledges) for a nongovernmental, not-for-prot entity.
Identify transfers to a nongovernmental, not-for-prot entity acting as an agent or
intermediary that are not recognized as contributions in the statement of activities.
FAR22
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area III — Select Transactions
(20–30%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
G. Nonreciprocal transfers (continued)
Calculate the carrying amount of donated assets (nancial assets or long-lived assets)
to be reported in the statement of nancial position.
Calculate increases in net assets attributable to contributions for a nongovernmental,
not-for-prot entity.
H. Research and development costs
Identify research and development costs and classify the costs as an expense in the nancial
statements.
Calculate the research and development costs to be reported as an expense in the nancial
statements.
I. Software costs
Identify the criteria necessary to capitalize software costs (software for internal use or
sale) in the nancial statements.
Calculate capitalized software costs (software for internal use or sale) to be reported in
the nancial statements and the related amortization expense.
J. Subsequent events
Identify a subsequent event and recall its appropriate accounting treatment.
Calculate required adjustments to nancial statements and/or note disclosures based on
identied subsequent events.
Derive the impact to the nancial statements and required note disclosures due to identied
subsequent events.
FAR23
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area III — Select Transactions
(20–30%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
K. Fair value measurements
Identify the valuation techniques used to measure fair value.
Use the fair value hierarchy to determine the classication of a fair value measurement.
Use the fair value concepts (e.g. highest and best use, market participant assumptions,
unit of account) to measure the fair value of assets and liabilities.
L. Differences between IFRS and U.S. GAAP
Identify accounting and reporting differences between IFRS and U.S. GAAP.
Determine the impact of the differences between IFRS and U.S. GAAP on the
nancial statements.
FAR24
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area IV — State and Local Governments
(5-15%)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
A. State and local government concepts
1. Conceptual
framework
Recall the purpose and characteristics of the conceptual framework for state and local
governments.
2. Measurement focus
and basis of
accounting
Recall the measurement focus and basis of accounting used by state and local
governments for fund and government-wide nancial reporting.
3. Purpose of funds
Determine the appropriate fund(s) that a state or local government should use to record
its activities.
B. Format and content of the nancial section of the comprehensive annual nancial report (CAFR)
1. Government-wide
nancial statements
Identify and recall basic concepts and principles associated with government-wide
nancial statements (e.g., required activities, nancial statements and nancial statement
components).
Prepare the government-wide statement of net position for a state or local government
from trial balances and supporting documentation.
Prepare the government-wide statement of activities for a state or local government from
trial balances and supporting documentation.
2. Governmental funds
nancial statements
Identify and recall basic concepts and principles associated with governmental fund
nancial statements (e.g., required funds, nancial statements and nancial statement
components).
Prepare the statement of revenues, expenditures and changes in fund balances for the
governmental funds of a state or local government from trial balances and supporting
documentation.
Prepare the balance sheet for the governmental funds of a state or local government
from trial balances and supporting documentation.
FAR25
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area IV — State and Local Governments
(5-15%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
B. Format and content of the nancial section of the comprehensive annual nancial report (CAFR) (continued)
3. Proprietary funds
nancial statements
Identify and recall basic concepts and principles associated with proprietary fund
nancial statements (e.g., required funds, nancial statements and nancial statement
components).
Prepare the statement of revenues, expenses and changes in fund net position for the
proprietary funds of a state or local government from trial balances and supporting
documentation.
Prepare the statement of net position for the proprietary funds of a state or local
government from trial balances and supporting documentation.
Prepare the statement of cash ows for the proprietary funds of a state or local
government.
4. Fiduciary funds
nancial statements
Identify and recall basic concepts and principles associated with duciary fund
nancial statements (e.g., required funds, nancial statements and nancial statement
components).
Prepare the statement of changes in duciary net position for the duciary funds of a
state or local government from trial balances and supporting documentation.
Prepare the statement of net position for the duciary funds of a state or local
government from trial balances and supporting documentation.
5. Notes to nancial
statements
Recall the disclosure requirements for the notes to the basic nancial statements of state and
local governments.
6. Management’s
discussion and
analysis
Recall the objectives and components of management's discussion and analysis in the
comprehensive annual nancial report for state and local governments.
FAR26
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area IV — State and Local Governments
(5-15%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
B. Format and content of the nancial section of the comprehensive annual nancial report (CAFR) (continued)
7. Budgetary
comparison
reporting
Recall the objectives and components of budgetary comparison reporting in the comprehensive
annual nancial report for state and local governments.
8. Required
supplementary
information
(RSI) other than
management’s
discussion and
analysis
Recall the objectives and components of required supplementary information other than
management’s discussion and analysis in the comprehensive annual nancial report for
state and local governments.
9. Financial reporting
entity, including
blended and
discrete component
units
Recall the criteria for classifying an entity as a component unit of a state or local
government and the nancial statement presentation requirements (discrete or blended).
C. Deriving government-wide nancial statements and reconciliation requirements
Prepare worksheets to convert the governmental fund nancial statements to the
governmental activities reported in the government-wide nancial statements.
Prepare the schedule to reconcile the total fund balances and the net change in fund
balances reported in the governmental fund nancial statements to the net position and
change in net position reported in the government-wide nancial statements.
FAR27
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area IV — State and Local Governments
(5-15%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
D. Typical items and specic types of transactions and events: measurement, valuation, calculation and presentation in governmental entity nancial statements
1. Net position and
components thereof
Calculate the net position balances (unrestricted, restricted and net investment in capital
assets) for state and local governments and prepare journal entries.
2. Fund balances and
components thereof
Calculate the fund balances (assigned, unassigned, nonspendable, committed and
restricted) for state and local governments and prepare journal entries.
3. Capital assets and
infrastructure
assets
Identify capital assets reported in the government-wide nancial statements of state and
local governments.
Calculate the net general capital assets balance for state and local governments and prepare
journal entries (initial measurement and subsequent depreciation and amortization).
4. General and
proprietary
long-term
liabilities
Identify general and proprietary long-term liabilities reported in the government-wide
nancial statements of state and local governments.
Calculate the total indebtedness to be reported in the government-wide nancial
statements of a state or local government.
Calculate the net general long-term debt balance for state and local governments
and prepare journal entries (debt issuance, interest payments, issue premiums or
issue discounts).
5. Interfund activity,
including transfers
Prepare eliminations of interfund activity in the government-wide nancial statements
of state and local governments.
Prepare journal entries to recognize interfund activity within state and local governments.
FAR28
Uniform CPA Examination Blueprints: Financial Accounting and Reporting (FAR)
Financial Accounting and Reporting (FAR)
Area IV — State and Local Governments
(5-15%) (continued)
Skill
Content group/topic
Remembering and
Understanding
Application Analysis Evaluation Representative task
D. Typical items and specic types of transactions and events: measurement, valuation, calculation and presentation in governmental entity nancial statements (continued)
6. Nonexchange
revenue
transactions
Calculate the amount of nonexchange revenue to be recognized by state and local
governments using the modied accrual basis of accounting and prepare journal entries.
Calculate the amount of nonexchange revenue to be recognized by state and local
governments using the accrual basis of accounting and prepare journal entries.
7. Expenditures and
expenses
Calculate expenditures to be recognized under the modied accrual basis of accounting
(paid from available fund nancial resources) for state and local governments and prepare
journal entries.
Calculate expenses to be recognized under the accrual basis of accounting for state and
local governments and prepare journal entries.
8. Special items
Identify transactions that require presentation as special items in government-wide
nancial statements for state and local governments.
9. Budgetary
accounting and
encumbrances
Recall and explain the types of budgets used by state and local governments.
Prepare journal entries to record budgets (original and nal) of state and local
governments.
Prepare journal entries to record encumbrances of state and local governments.
10. Other nancing
sources and uses
Calculate the amount to be reported as other nancing sources and other nancing uses in
the governmental funds nancial statements.
29
Uniform CPA Examination Blueprints
Examinations Team
American Institute of CPAs
100 Princeton South, Suite 200
Ewing, NJ 08628
888.777.7077 | aicpa.org
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