CPA Exam Prep — Financial Accounting and Reporting (FAR)

About this course

What you'll learn

• Prepare and analyse general-purpose financial statements for business entities, including comprehensive income and cash flows.
• Apply not-for-profit and state and local government reporting models, fund accounting and government-wide conversion.
• Measure and report cash, receivables, investments, inventory, PP&E, intangibles, liabilities and equity.
• Apply ASC 606 revenue recognition and ASC 842 lease accounting step by step.
• Account for accounting changes, error corrections, contingencies, subsequent events and deferred income taxes.
• Recognise common FAR exam traps and work multiple-choice and simulation-style problems efficiently.

Course details

Level

advanced

What's included

• 12 lessons
• Progress tracking
• Certificate of completion

Requirements

• Introductory and intermediate financial accounting are strongly recommended.
• A basic financial calculator or the exam's on-screen calculator for present-value work.

Curriculum

1. 01

   Lesson 1: Lesson 1 — The Conceptual Framework and General-Purpose Financial Statements

   How the FASB conceptual framework shapes recognition and measurement, and how the balance sheet, income statement, statement of comprehensive income and statement of changes in equity are built and classified, plus public company reporting (SEC forms and EPS).

   75m
2. 02

   Lesson 2: Lesson 2 — The Statement of Cash Flows and Financial Statement Analysis

   Classifying cash flows, preparing operating cash flows under the indirect and direct methods, required noncash disclosures, financial statement ratios and performance metrics, and special purpose frameworks.

   80m
3. 03

   Lesson 3: Lesson 3 — Not-for-Profit (Nongovernmental) Entity Reporting

   The ASU 2016-14 reporting model, net asset classes, contributions (conditional and unconditional), contributed services, releases from restriction, functional expense reporting and liquidity disclosures.

   80m
4. 04

   Lesson 4: Lesson 4 — The State and Local Government Reporting Model and Fund Structure

   The annual comprehensive financial report, government-wide and fund financial statements, the eleven fund types, measurement focus and basis of accounting, major funds, fund balance and net position classifications, and the reporting entity.

   85m
5. 05

   Lesson 5: Lesson 5 — Governmental Fund Transactions and Government-Wide Conversion

   Budgetary and encumbrance entries, nonexchange revenue recognition, capital and debt transactions under modified accrual, interfund activity, and reconciling governmental fund statements to the government-wide statements.

   85m
6. 06

   Lesson 6: Lesson 6 — Cash, Receivables, Investments and Fair Value Measurement

   Cash and bank reconciliations, trade receivables and the CECL allowance, transfers of receivables, investments in debt and equity securities, the equity method, and the fair value hierarchy.

   90m
7. 07

   Lesson 7: Lesson 7 — Inventory: Cost Flows, Valuation and Estimation

   What belongs in inventory, FIFO, LIFO and weighted average, dollar-value LIFO, lower of cost and net realisable value versus lower of cost or market, the gross profit method, purchase commitments and inventory errors.

   80m
8. 08

   Lesson 8: Lesson 8 — Property, Plant and Equipment, Intangible Assets and Impairment

   Capitalisation, interest capitalisation, depreciation methods, nonmonetary exchanges, asset retirement obligations, intangible assets and goodwill, research and development, software costs, and impairment of long-lived assets.

   90m
9. 09

   Lesson 9: Lesson 9 — Payables, Long-Term Debt and Equity

   Current and accrued liabilities, bond pricing and effective-interest amortisation, debt issue costs and extinguishment, stock issuance, treasury stock, dividends and stock splits.

   90m
10. 10

    Lesson 10: Lesson 10 — Revenue Recognition (ASC 606)

    The five-step model, performance obligations, variable consideration and the constraint, allocation by standalone selling price, over-time recognition, principal versus agent, warranties, and contract costs.

    90m
11. 11

    Lesson 11: Lesson 11 — Leases (ASC 842)

    Identifying a lease, lessee finance and operating lease classification and measurement, short-term leases, lessor sales-type, direct financing and operating leases, and sale-leaseback transactions, with a comparison to GASB 87.

    85m
12. 12

    Lesson 12: Lesson 12 — Accounting Changes, Contingencies, Subsequent Events and Income Taxes

    Changes in principle, estimate and reporting entity; error corrections; loss and gain contingencies; recognised and nonrecognised subsequent events; and current and deferred income taxes.

    95m