FAR
Financial Accounting and Reporting
FAR tests your ability to prepare and analyze financial statements under US GAAP — from the conceptual framework through specific balance-sheet accounts and transactions. It's the broadest of the three Core sections and, for most candidates, the one requiring the most study time.
Last updated 5 September 2026
Complete Study Material
Exam-oriented explanations for every topic
Quick Revision Notes
The 20% you need the night before
MCQ Practice
Explained, server-graded questions
Student Discussions
Ask doubts, read others' explanations
Topics
Conceptual Framework & Financial Statement Presentation
The FASB's conceptual framework, qualitative characteristics, and the required financial statements.
Balance Sheet & Income Statement Preparation
Classified balance sheet structure, multi-step income statement, and discontinued operations presentation.
Statement of Cash Flows
Direct vs indirect method, and classifying activities as operating, investing, or financing.
Notes, Subsequent Events & Going Concern
Recognized vs non-recognized subsequent events and management's going-concern evaluation.
Revenue Recognition (ASC 606)
The 5-step revenue model: contracts, performance obligations, transaction price, allocation, and recognition timing.
Cash, Receivables & Bad Debts
Cash equivalents, the CECL expected-credit-loss model, and factoring receivables.
Inventory
Cost flow assumptions, lower of cost and net realizable value, and the periodic vs perpetual systems.
Property, Plant & Equipment
Capitalization, depreciation methods, subsequent expenditures, and asset impairment.
Intangible Assets & Goodwill
Finite vs indefinite-lived intangibles, R&D costs, and the goodwill impairment test.
Investments (Debt & Equity Securities)
Classifying and measuring debt securities (HTM, trading, AFS) and the equity method for significant influence.
Leases (ASC 842)
Lessee finance vs operating leases, right-of-use assets, and lease liability measurement.
Current Liabilities, Contingencies & Commitments
Accrued liabilities, loss contingency recognition thresholds, and warranty accounting.
Long-Term Debt (Bonds & Notes)
Bond issuance at premium/discount, effective-interest amortization, and troubled debt restructuring.
Equity & Earnings Per Share
Stock transactions, treasury stock, and basic vs diluted EPS calculations.
Income Taxes (Deferred Tax Accounting)
Temporary differences, deferred tax assets/liabilities, and the valuation allowance.
Accounting Changes & Error Corrections
Change in principle, estimate, and entity, plus prior-period error correction.
Business Combinations & Consolidations
Acquisition method basics, goodwill calculation, and noncontrolling interest.
Not-for-Profit Accounting
Net asset classification and contribution recognition for nonprofit entities.
Governmental Accounting
Fund accounting basics and the modified accrual basis used by governmental funds.
SEC Reporting, Segments & Interim Reporting
Operating segment identification and the integral-view approach to interim financial reporting.