How long should I study for FAR?

Most candidates need 120-150 hours for FAR, making it the most time-intensive section. At about 20 hours per week, plan for roughly 6-8 weeks; full-time study can compress that to 4-5 weeks.

What is the FAR pass rate?

The FAR section has a pass rate around 42%, making it one of the most challenging sections. The large volume of material and breadth of topics contribute to the lower pass rate.

Should I take FAR first?

FAR is often recommended as the first section for candidates with a strong accounting background because the material is freshest from coursework. However, the best order depends on your individual strengths and timeline.

What topics are tested most heavily on FAR?

Financial statement preparation, revenue recognition (ASC 606), lease accounting (ASC 842), and consolidations receive the heaviest testing weight. Governmental and not-for-profit accounting also represent a significant portion of the exam.

Is FAR the hardest CPA exam section?

FAR is widely considered the most challenging section due to its breadth of content — it covers more material than any other section. However, difficulty is subjective and depends on your accounting background and study habits.

FAR

CPA Exam Section Guide

Financial Accounting & Reporting

FAR is often considered the most challenging and comprehensive section of the CPA exam. It tests your knowledge of financial accounting standards, governmental accounting, and not-for-profit accounting.

FARSection Code

HighDifficulty

120-150 hoursAvg. Study Time

36+Topics Covered

What This Section Tests

The FAR section covers the following key topics:

✓Balance sheet / Statement of financial position

✓Income statement / Statement of profit or loss

✓Statement of comprehensive income

✓Statement of changes in equity

✓Statement of cash flows

✓Consolidated financial statements (wholly-owned subsidiaries and noncontrolling interests)

✓Notes to financial statements

✓Statement of financial position

✓Statement of activities

✓Statement of cash flows (NFP)

✓Notes to financial statements (NFP)

✓Measurement focus and basis of accounting

✓Purpose of funds

✓Public Company Reporting Topics

✓Special Purpose Frameworks

✓Financial Statement Ratios and Performance Metrics

✓Cash and cash equivalents

✓Trade receivables

✓Inventory

✓Property, plant and equipment

✓Financial assets at fair value

✓Financial assets at amortized cost

✓Equity method investments

✓Intangible assets (finite-lived focus)

✓Payables and accrued liabilities (incl. ARO)

✓Notes and bonds payable

✓Debt covenant compliance

✓Equity

✓Accounting changes and error corrections

✓Contingencies and commitments

✓Revenue recognition (incl. NFP contributions)

✓Accounting for income taxes

✓Fair value measurements

✓Lessee accounting

✓Subsequent events

✓Conceptual framework & foundational concepts

Why Candidates Commonly Struggle with FAR

Underestimating the volume of material - FAR covers the most content of any section
Spending too much time on governmental accounting early in their studies
Not practicing enough simulations, especially consolidation problems
Memorizing journal entries without understanding the underlying concepts
Running out of time on exam day due to poor time management

What to Prioritize

1
Master financial statement preparation - this is the foundation for everything else
2
Focus heavily on revenue recognition and leases - these standards receive significant exam coverage
3
Practice consolidation simulations repeatedly until they become second nature
4
Don't skip governmental and NFP accounting - they're easier points than most think
5
Understand the conceptual framework - it helps you reason through unfamiliar problems

Effective Study Strategies

FAR should typically be your first section if you have a strong accounting background. The material is fresh from your coursework, and starting with FAR often helps build confidence for the remaining sections. See our best exam order guide for more.

Create a formula sheet for bond amortization, pension calculations, and lease computations. You'll use these formulas repeatedly, and having them memorized saves precious time on exam day.

Don't just read about consolidations - work through 20-30 practice simulations. The elimination entries need to become automatic muscle memory.

Governmental accounting seems overwhelming at first, but it's actually more straightforward than GAAP in many ways. Focus on understanding fund types and modified accrual basis.

Build a personalized study plan and take at least two full-length practice exams under timed conditions. FAR's length makes time management critical.

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Other CPA Sections

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Auditing & Attestation

FAR