How to Pass FAR by Stephanie Ng

Stephanie Ng CPA, is our Guest blogger for this post, She is here to help me and all my fellow CPA Students, to inspire us, enlighten us on how to pass FAR exam. I have all good words for her. I thank Stephanie for her time and dedication for CPA students. Post a comment, let her know how this post helped you and most importantly make use of it. Happy Studying Friends and Sleep on it.

You must pass 4 exam sections to finish the CPA Exam, and one will be FAR, or Financial Accounting and Reporting. FAR is the section that makes you do the most accounting. No matter how you feel about all that accounting, you need to know this information to pass FAR.

FAR Content

FAR focuses on financial accounting and reporting in 4 main content areas.

FAR Content

Content Area	Title	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%

So, to pass FAR, you must be able to:

• Make, understand, and analyze financial statements (including journal entries)
• Identify the different financial accounting and reporting methods
• Perform calculations (e.g., bonds and leases)

FAR Pass Rates and Reputation

Because FAR’s pass rates have been some of the lowest for the last decade, FAR has a reputation for being the hardest CPA Exam section.

2017-2018 FAR CPA Exam Pass Rates

Year	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Cumulative
2018	41.59%	49.17%	48.85%		46.79%
2017	41.14%	43.76%	47.58%	42.50%	44.42%

The scope of FAR makes it so hard. Therefore, you must put in plenty of study hours and use them to master your weak areas. In light of FAR’s pass rates, you’re likely to fail if you don’t take these steps.

FAR Structure, Questions, and Score

FAR consists of 66 multiple-choice questions accounting for 50% of your score and 8 task-based simulations contributing the other 50%.

You must score a 75 to pass FAR. This number is a scaled score that doesn’t mean you got 75% of the questions right.

FAR Difficulty   

The CPA Exam tests candidates at 4 different levels of skill. However, FAR only tests candidates at 3 of these skill levels.

FAR Exam Skill Levels

Skill Level	Remembering and Understanding	Application	Analysis	Evaluation
Content Percentage	10-20%	50-60%	25-35%	N/A
Content Areas	Areas I, II, III, & IV	Areas I, II, III, & IV	Areas I, II, & III	N/A

FAR tests at the Application level the most and at the Remembering and Understanding level the least. Therefore, you don’t need the deepest understanding of FAR’s content, just a solid grasp of most of it.

Time Management for FAR

You have 4 hours to finish FAR. As answering every question increases your chance of passing, you should use a time management system during the exam.

For example, if you answer each MCQ in 1 ¼ minutes, you can finish all the MCQs in about 82 minutes and have roughly 158 minutes left for the TBSs. This system also gives you 14 minutes for reviewing answers.

Tweak this system as desired, but practice it before exam day so you have it down.     

Scheduling FAR

I highly recommend putting FAR first in your CPA Exam schedule. Once you pass your first exam section, you have 18 months to pass the other 3. FAR usually requires the most study time, so if you take FAR first, you can study for it as long as necessary before your 18-month window begins. You can even fail and study some more without that extra study time eating away at your 18 months.

Study Tips for FAR  

Though FAR is challenging, you can pass it efficiently if you prepare effectively. Here are my best FAR study tips:

• Schedule your FAR study time carefully

More often than not, candidates fail FAR for lack of sufficient studying. To avoid this situation, plan ahead and stick to a schedule. Specifically, give yourself at least a month before your exam date to complete your final review and strengthen any remaining weak areas.

• Don’t skip difficult concepts

FAR features some tricky topics that you can’t ignore. When I sat for FAR, I saw a lot of questions on my weakest areas, so I was thankful I made time to study those areas specifically. You should do the same because you never know what your FAR exam questions will ask you about.

• Understand journal entries

If you weren’t an accounting major or haven’t worked with journal entries for a while, you must be intentional about mastering journal entries. This page on principlesof accounting illustrative entries and this page on fund-basedvs government-wide entries can help.

• Don’t rush yourself

If you’re afraid you won’t clear your review before your exam date, you should put off scheduling your testing appointment or reschedule it if necessary. Don’t take FAR when you’re not ready for it.

More Help for the CPA Exam Sections

FAR may be one of the most overwhelming exam sections, but you can pass this and all the other sections with a little outside help.

My site, ipassthecpaexam.com, provides that help. As a CPA and author of a Wiley-published CPA Exam guide, I’ve written all about the CPA Exam process on my site. I walk candidates through each of the steps to the CPA license and supply plenty of study tips and tricks along the way. Also, I’ve personally assessed the most popular CPA review courses on the market and listed their pros and cons so my readers can see which course will work best for them. And finally, I’ve worked with the review providers to secure exclusive discounts on these courses. So, when you visit my site, you can get all the information you need to pass the CPA Exam on your first attempt!

New Philosophy

After battling to find time to prepare for the exam, new job, kids..what not, I observed many points that are hurdles for my preparation...

1. There is no such thing as quiet time and expect it to fall into your lap every night.. Quietness is a state of mind.
2. You should let your plan to haunt you and just read a paragraph and question yourself whether you understood what you read.
3. It's not reading and reading loads of paper , its understanding what questions are expected from that chapter and how much percentage its weightage is..
4. You are not going to become an expert .. YOU ARE PASSING THIS EXAM .
5. If they say, this is the rule of Revenue recognition.. it's not enough, you read the rule, you are expected to find the answer from the problem they just created.
6. Your responsibilities are not going to come down. You sacrifice your free time and invest it in your dream.
7. If you are really irritated by the people around , hug them, kiss them , cry and then read for your exam.. As if you shop for favorite deal from office.. Your deal is your exam.
8. Don't expect everyone to understand you, They will never, so be selfish.

I was petrified , confused, cried and been through all of above.. And understood... It's not others responsibility to understand your goals, they don't care..So love thy self and love your dream. 

Going Concern

I turned the pages of my Gleim study material and the assumption of going concern made me think. I thought the assumption of my preparation should also be a Going Concern. I should be prepared to succeed in this examination, become a CPA and live like a successful CPA and it goes on.. It brought a smile on my face. We make everything so complicated but all the important things are really very simple. Our mind, body and heart should act as a Economic entity. We should be aware of the Monetary value we are going to invest in this exam and the Periodicity, The time limitations and using the time wisely. We need principles and understand constraints. Everything is Accountancy. When the soul start to immerse in the subject, you find the reflection of life in the pages you turn. My Study preparation started. I took Gleim Premium CPA Review system for FAR. It comes with a Print book and a digital book, Audio review, Video lectures, online test bank and assistance from experts. Added to this it comes with a online study planner, based on your study hours and dates, it plans your preparation and sends messages on your phone reminding your due dates.

Dreams

Hi Friends,

I am blogging after a long time. It was hard for me to put aside my CPA preparation and concentrate on family and job. There were immigration issues and family and financial problems, I can name everyone and everything as reasons why I was unable to finish that REG exam. Now all my exams expired and I am back to square 1. But still I couldn't give up. I feel like crying every time I remembered the effort and time spent on it. I loved every moment but it was not enough. I decided to do one more attempt to pursue my dream. I am not proud or complain about everything. What happened was my responsibility and I did what I could at that point of time. Hope I live a blessed life and keep me inspired and God bless me with success and every one who follow my blog.

I didn't reply all the emails sent to me and all the emails I receive even today. Forgive me for that.
Love you all
Rose

Top Accounting blogs 2012

Email received from Editor, http://www.accounting-degree.org/

We are writing to let you know that your blog has been selected for inclusion in The Accounting Degree Review's list of the Top 25 Accounting Blogs of 2012. Our editor selected their favorite accounting related blogs regularly updated throughout 2012 with knowledgeable, useful, well-written and engaging content. You can view the list at http://www.accounting-degree.org/top-accounting-blogs/
Congratulations!

The Accounting Degree Review
http://www.accounting-degree.org
editor@accounting-degree.org
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Thanks to http://www.accounting-degree.org Management and Editor
Dedicated to every reader of my blog.

Lots of Love
Rose

Career Tips For Aspiring Accounting Students by George Hillston

Let me introduce my Guest blogger today, George Hillston. He shares with us Career tips useful for Accounting students. 

For students and professionals entering into the job market, an accounting career offers a variety of rewarding opportunities. The accounting field offers stability for individuals seeking these jobs. Businesses need employees to report and analyze the finances of the company and the accountant meets this need. When someone decides to pursue a career in accounting, they should look at what companies need from accountants and how they can serve the company. These career tips will help you advance in your own accounting career.

Know the basics

While you may not be an expert in every area of accounting, especially if you are still a student, you should know the basics. Understand the primary financial statements, such as the income statement and balance sheet. Learn the basics of recording financial transactions. Companies hire students and beginning accountants for entry level positions. However, these companies also want to see that the people they hire have an initial foundation of knowledge in place. This allows the company to train the employee on their own specific accounting practices.

Understand Different Accounting Roles

The accounting field consists of several different specialties. Some accountants focus on financial reporting. Others work on analyzing costs. Some spend their days reviewing the costs of fixed assets. When looking at various jobs in accounting, understand what role each job expects the accountant to fulfill. The skills needed for each role vary considerably. Prepare for the position by researching the needs of each particular position.

Join Professional Organizations

Professional organizations, such as the Institute of Management Accountants or the American Institute of CPAs, provide resources for accounting professionals to continue developing their skills. Accountants who maintain current with industry knowledge provide greater value for their employer. In addition, these organizations provide networking opportunities where accountants meet and build relationships with colleagues. Accountants use these networks to hire new employees or to find new accounting jobs.

Pursue Certification

In an accounting career, people hold a variety of qualifications. People come into an accounting position with varying levels of education. Most have undergraduate degrees. Some have graduate degrees. Others hold certifications, such as a Certified Public Accountant or a Certified Management Accountant. Certified accountants hold an advantage over others competing for accounting jobs. Certification also opens opportunities for accountants to receive promotions in the workplace.

Volunteer

Find opportunities to volunteer and share your accounting skills with others. Volunteering allows you to demonstrate your skills while helping out your community. Volunteering opportunities for accountants include serving as treasurer for a nonprofit, counting donations collected, filing tax returns or compiling financial data for reporting purposes. Many accountants make professional connections with others by participating in activities like these. These activities also add to the qualifications listed on your resume.

Speak At Public Events

Many nonprofit organizations seek speakers for their events. These organizations may or may not have the resources to pay a speaker. However, those accountants who choose to speak at these events gain recognition as an expert. When companies are seeking an accountant, they often remember the speaker at that event. These companies may seek you out directly to discuss opportunities within their organization. You can also add public speaking events to your resume.

Publish Your Knowledge

Take the opportunity to write articles on various accounting or financial topics. Write editorials and send them in to your local newspaper. As your name gets published on a regular basis, you will develop a reputation as a skilled accountant. You can draw on this reputation as you pursue accounting jobs. Share your publications with potential employers by listing these on your resume.

While job seeking in the accounting field can represent a high level of competition, there are also many different opportunities for accounting professionals to take advantage of. These tips won’t guarantee you career success. But they will greatly improve your chances.