FAR CPA Exam: Format, Content & Tips

FAR CPA Exam 2025: Format, Study Tips, and How to Pass It 

FAR CPA Exam remains the most challenging part of the U.S. CPA licensure process. In 2025, it was updated to align with CPA Evolution, while still testing a broad set of accounting knowledge, ranging from GAAP to governmental accounting.

This guide is built to help you pass FAR on your first attempt, especially if you're studying in India. We’ll show you how to prepare efficiently, why Surgent CPA via Eduyush offers the best pricing and support, and how to tackle each topic strategically.

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What is FAR in the CPA Exam?

The Financial Accounting and Reporting (FAR) section is one of three Core exams every CPA candidate must pass under the CPA Evolution model.

FAR evaluates your ability to:

• Understand and apply U.S. GAAP and SEC standards
• Prepare and analyze financial statements
• Handle governmental (GASB) and not-for-profit accounting
• Work with topics like leases, bonds, consolidations, and tax reporting

It serves as a base for the Business Analysis & Reporting (BAR) Discipline exam, so mastering FAR early can benefit you across other sections.

For those looking to take the CPA exam from outside the U.S., it’s essential to check the CPA eligibility for Indian professionals or international candidates to ensure that you meet the requirements.

FAR CPA Exam Format for 2025

Here’s what to expect:

• Total duration: 4 hours
• Questions: 50 Multiple Choice Questions (MCQs) and 7 Task-Based Simulations (TBSs)
• Structure: Split into five testlets (two for MCQs, three for TBSs)
• Break: One optional 15-minute break after Testlet 3
• Scoring: MCQs = 50%, TBSs = 50%

Note: Some questions are pre-test questions (not scored), but you won’t know which—so answer everything carefully.

If you are planning to work in states known for their rigorous audit requirements, it’s crucial to understand the Top CPA states for licensure, as some states may have specific licensure conditions.

Core Topics You Must Master in FAR CPA Exam

1. Financial Reporting
   • General purpose frameworks
   • SEC filings and disclosures
   • Governmental statements (fund-based, modified accrual)
2. Balance Sheet & Account-Level Transactions
   • Cash, receivables, and inventory
   • Fixed assets and depreciation
   • Bonds, leases, and equity
3. Special Transactions
   • Revenue recognition (ASC 606)
   • Income tax (ASC 740)
   • Consolidations and business combinations
   • Fair value measurement (ASC 820)

Also, expect questions tied to IFRS, subsequent events, and contingencies.

Check out our guide on which CPA discipline to choose to make an informed decision.

Skill Levels Tested on FAR CPA Exam (Per AICPA Blueprint)

• Remembering & Understanding: Recognize terminology and basic facts
• Application: Use concepts in calculations and real-life scenarios
• Analysis: Combine data from multiple areas to solve complex problems

FAR focuses most on Application and Analysis—so memorizing rules won’t be enough.

How Is FAR Scored?

• The exam is not curved. Scores are scaled based on difficulty.
• You need a scaled score of 75 or above to pass.
• TBSs offer partial credit, so never skip any part, even if you're unsure.
• Scores range from 0 to 99. A "75" doesn’t mean 75% correct—it’s a benchmark after scaling.

Learn about the 4 CPA exam sections with updated testing windows and strategic study advice.

Latest FAR CPA Pass Rates

• 2024: 39% pass rate overall
• 2025 Q1: 42% (slight improvement)
• FAR consistently shows the lowest pass rate of all CPA Exam sections.

But don’t be discouraged. Many candidates pass on their first try by using innovative prep tools—like Surgent CPA via Eduyush.

Why Surgent CPA via Eduyush is the Smarter Choice in 2025

Most Indian CPA aspirants are familiar with Becker, but Surgent CPA Review, offered via Eduyush, provides more technology, greater flexibility, and lower costs.

Why 90% of CPA Candidates Get Exam Order Wrong (Fix This Now)

Top Reasons to Choose Surgent CPA via Eduyush:

• AI-Driven Study Plans: Their A.S.A.P.™ tech adapts your schedule in real-time
• India Pricing: Through Eduyush, access complete courses at ₹50,000–₹65,000
• ReadySCORE™ Predictor: Know when you're truly ready to take the exam
• Faster Completion: Finish studying 40% faster than traditional providers
• Mobile Friendly: Study on the go via app or desktop

You also get lifetime access, video lectures, practice exams, and live support—all tailored for Indian students.

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How to Prepare for the FAR CPA Exam in 2025 (6-Week Plan)

Week-by-Week Strategy:

• Week 1: Master GAAP, FASB, and SEC frameworks
• Week 2: Dive into government and NFP accounting (often neglected)
• Week 3: Study bonds, leases, and deferred tax
• Week 4: Review consolidations, IFRS, and stockholders’ equity
• Week 5: Mixed reviews with full-length MCQs and simulations
• Week 6: Two complete mock exams and feedback review

📌 Tip: Use Surgent’s diagnostic quizzes to focus only on your weak areas—no wasted time.

Mistakes to Avoid on FAR

1. Underestimating governmental/NFP content
2. Skipping simulations during prep (they make up half your score)
3. Trying to memorize everything instead of learning how to apply it
4. Rushing the test without time management
5. Ignoring weak topics—fix them before the real exam

Quick Tips to Boost Your FAR Score

• Always practice journal entries and T-accounts—they’re everywhere
• Use mock tests to simulate exam pressure
• Watch video explanations to reinforce tough topics
• Review incorrect answers more than correct ones
• Practice creating schedules (like depreciation and amortization) quickly

 FAQs on the FAR CPA Exam

What is tested on the FAR CPA Exam 2025?

FAR tests U.S. GAAP, FASB, SEC, GASB, IFRS, financial statements, bonds, taxes, leases, and NFP accounting.

How long is the FAR exam?

Four hours total, with 50 MCQs and seven simulations split across five testlets.

Is FAR the hardest CPA exam section?

Yes, it has the broadest content and lowest pass rate, but thoughtful preparation makes a big difference.

Can I get partial credit on FAR?

Yes, especially on simulations. Even partial answers are worth points.

What’s the best CPA course in India?

Surgent CPA, via Eduyush, is AI-based, faster, and far more affordable than legacy providers.

What Students in India Say About Surgent CPA

“Surgent via Eduyush helped me finish my FAR prep in under 7 weeks—huge cost savings, too!”

— Karthik, Delhi

“I was juggling a full-time job. ReadySCORE™ gave me the confidence to schedule my exam.”

— Sneha, Bangalore

Final Thoughts: You Can Pass FAR CPA Exam on the First Try

The FAR CPA Exam is deep and wide—but it’s beatable. Don’t rely on outdated strategies or overpriced platforms. Choose an innovative, tech-powered system like Surgent CPA via Eduyush that’s designed to help you pass faster and for less.

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