FAR CPA Exam 2026: What's Tested, Study Tips & How Kesler Helps You Pass
WHAT IS THE FAR CPA EXAM?
FAR (Financial Accounting and Reporting) is one of three mandatory core sections under the 2026 CPA Evolution model. Every CPA candidate must pass FAR. It focuses on financial reporting for for-profit and nongovernmental not-for-profit entities under the FASB Accounting Standards Codification, includes public-company reporting topics, and tests foundational GASB concepts for state and local governments.
FAR is often considered one of the more challenging core sections because it covers a broad range of content. It has the lowest pass rate of the three core sections (42.12% cumulative in 2025, compared to 48.21% for AUD and 63.12% for REG). Many CPA mentors recommend taking FAR first because the foundational concepts carry into AUD, REG, and especially BAR, which builds directly on FAR.
| FAR Quick Facts | Details |
|---|---|
| Section Type | Core (mandatory for all CPA candidates) |
| Exam Duration | 4 hours (plus 15-minute break) |
| Question Format | 50 MCQs (2 testlets of 25) + 7 TBSs (3 testlets) |
| Score Weighting | MCQs = 50% of score, TBSs = 50% of score |
| Passing Score | 75 (scaled, not a raw percentage) |
| 2025 Cumulative Pass Rate | 42.12% (lowest of the three core sections) |
| Typical Study Time | ~120-150 hours (8-12 weeks at 10-15 hrs/week) |
| Skill Levels Tested | Remembering & Understanding, Application, Analysis |
| Related Discipline | BAR (Business Analysis & Reporting) builds on FAR |
FAR CONTENT AREAS &
WHAT'S TESTED
The FAR exam content is defined by the AICPA Blueprint and organized into three content areas with specific score weighting. Here's what you need to know about each area and how heavily it's tested.
| Content Area | Weight | Key Topics |
|---|---|---|
| Area I: Financial Reporting | 30-40% | Financial statement preparation, GAAP conceptual framework, SEC reporting requirements, presentation and disclosure, nongovernmental not-for-profit reporting, foundational state and local government concepts |
| Area II: Select Balance Sheet Accounts | 30-40% | Cash and cash equivalents, receivables, inventory, PP&E, investments, intangibles, payables, debt, equity |
| Area III: Select Transactions | 25-35% | Revenue recognition (ASC 606), lessee accounting (ASC 842), accounting changes and error corrections, contingencies, subsequent events, income taxes, statement of cash flows, fair value |
Note: Under the 2026 Blueprint, FAR still covers core financial reporting topics such as cash flows, nongovernmental not-for-profit reporting, revenue recognition, lessee accounting, and consolidated financial statements. BAR covers additional advanced technical topics including indefinite-lived intangibles (including goodwill), stock compensation, derivatives and hedge accounting, and broader state and local government accounting. The AICPA Blueprint is the definitive source for exactly what's tested. Download the official AICPA Blueprint →
WHY FAR IS CONSIDERED ONE OF THE
TOUGHEST CPA EXAM SECTIONS
FAR has the lowest core-section pass rate for a reason. Understanding why helps you study smarter.
Broad Content Volume
FAR covers financial reporting for for-profit entities, nongovernmental not-for-profit entities, and foundational state and local government concepts, all in one exam. The sheer breadth is what overwhelms most candidates.
Calculation-Heavy TBSs
FAR's task-based simulations require actual calculations: journal entries, financial statement preparation, cash flow computations. You can't just recognize the right answer; you have to produce it under time pressure.
Foundational Government & NFP Accounting
GASB concepts and not-for-profit reporting are part of Area I. These topics use a different framework than commercial GAAP, and many candidates underestimate them because the content feels unfamiliar.
Complex Standards
Revenue recognition (ASC 606), lessee accounting (ASC 842), contingencies, and fair value each have their own rules, exceptions, and calculation methods that traditional text explanations often struggle to make clear.
FAR's challenge isn't just the content. It's the format of the explanations.
Walls of text don't make complex accounting click. Whiteboard videos do.
FAR STUDY STRATEGY
WITH KESLER
FAR generally requires more study time than the other core sections because of its content volume. Here's how to approach it efficiently using Kesler's tools.
RECOMMENDED FAR TIMELINE
8-12 WEEKS
First-time FAR (10-15 hrs/week)
6-8 WEEKS
FAR retake (focused on weak areas)
~120-150 HRS
Typical total study hours
Daily plan with Sprint Clock: 2 focused sessions (50 min total) on weekdays, 3-4 sessions on weekends. That's roughly 10-15 hours per week, which is enough to cover FAR thoroughly in 8-12 weeks for most candidates. The CPA mentorship program helps you build a personalized FAR timeline based on your background and schedule.
FAR STUDY TIPS
Don't Skip Government & NFP Topics
Foundational state and local government concepts and nongovernmental not-for-profit reporting are part of Area I. These topics use a different framework than commercial GAAP, and skipping them is a common mistake. Kesler's Learn N GO videos make these concepts visual and digestible.
Learn Journal Entries Visually
FAR is journal-entry heavy. Reading about debits and credits in a textbook is far less effective than watching them drawn out on a whiteboard. Learn N GO videos show you every entry step by step.
Use GEMs as Your Cram Sheet
Every Learn N GO video ends with a GEM™ exam-day takeaway. In your final week, reviewing your GEMs across all FAR topics is one of the most efficient cram strategies. One reusable nugget per concept.
Practice TBS Early and Often
FAR TBSs are worth 50% of your score and they're calculation-heavy. Don't save them for the last week. Start practicing simulations by week 3 of your study plan.
Use Study Funnel for Final Review
Kesler's study funnel technology identifies your weakest FAR areas so you can target exactly what you need in your final 1-2 weeks. No wasting time on concepts you already know.
Take a Mock Exam 2 Weeks Out
Simulate full exam conditions: 4 hours, no breaks, no notes. This identifies your remaining gaps and gets you comfortable with the time pressure before exam day.
FAR SUCCESS STORIES
⭐⭐⭐⭐⭐
"After 8 attempts, I passed FAR with a 79! More shocked than anything because it's hard to envision it happening until it actually does. I used both Becker and Kesler CPA Review, and I went heavy on the Kesler side this time around - constantly reviewing my custom flashcards (I had accumulated around 270 of them), reviewing each questions' "gem," and circling back to Becker for more diversification with practice MCQs and sims. To anyone struggling through FAR or any other section, please keep at it. I didn't think this was possible either… stick to your system and Bryan's studying method. It WORKS!"
— Bryce W., FAR Passed
⭐⭐⭐⭐⭐
"I PASSED FAR WITH AN 84!!! You have no idea what an accomplishment this is for me! I have been taking this exam for 5 years and have tested specifically for FAR At least 13 times.....i really lost count after that. It wasn't until I used your study methods that I got the score I am more than thankful. I'm honestly and shock!! Thank you thank you thank you!!!"
— Emma Jean, FAR Passed After Multiple Retakes
FAR CPA EXAM FAQ
Most candidates study around 120-150 hours for FAR. At 10-15 hours per week, that typically works out to 8-12 weeks. FAR generally requires more study time than the other core sections because of its content volume. Kesler's CPA mentorship program helps you build a personalized FAR study schedule based on your background and available hours.
Many CPA candidates and mentors recommend taking FAR first. FAR covers foundational financial accounting concepts that carry into AUD, REG, and especially BAR (which builds directly on FAR). Passing FAR first can also build confidence since it tends to be one of the more challenging sections.
FAR historically has the lowest pass rate among the three core CPA exam sections. The 2025 cumulative pass rate was 42.12%, compared to 48.21% for AUD and 63.12% for REG. This is largely because FAR covers a broad range of content and requires both memorization of standards and application in task-based simulations.
Under the 2026 Blueprint, candidates commonly report the most challenging FAR topics as: financial statement preparation and cash flows, nongovernmental not-for-profit reporting, foundational state and local government concepts, revenue recognition (ASC 606), contingencies, fair value, accounting changes and error corrections, and lessee accounting (ASC 842). Kesler's Learn N GO whiteboard explainer videos break each of these down visually in 2-4 minutes.
Yes. Kesler's FAR materials are mapped to the 2026 AICPA Blueprint. This includes MCQs with Learn N GO whiteboard explainer videos, task-based simulations, a complete Blueprint-mapped textbook, flashcards, and mentorship covering FAR-specific study strategy. All six CPA exam sections are included in every Kesler subscription.
Yes. Many candidates use Kesler alongside their primary course specifically for FAR because it tends to be the most content-heavy section and the one where text explanations are most likely to fall short. The Learn N GO whiteboard explainer videos provide a different visual angle on every FAR concept, and the mentorship helps you study FAR efficiently.
FAR IS TOUGH.
STUDY IT VISUALLY.
Kesler CPA Review is a CPA exam prep course founded by Bryan Kesler, CPA, featuring Learn N GO whiteboard explainer videos, gamification, mentorship, and mobile apps. 68,000+ CPA candidates served since 2015.
MONTHLY PLAN
No contracts. Cancel anytime. Start with one section and expand. All features included.
SEE CURRENT PRICING →UNLIMITED ACCESS
One payment. All sections until you pass. Ideal for career changers tackling the full exam. Financing options available.
SEE CURRENT PRICING →30-Day Money Back Guarantee • Instant Access • CPA Exam Sections Covered: AUD, FAR, REG, BAR, TCP, ISC
EXPLORE ALL CPA EXAM SECTIONS
Visual Learners • ADHD • Failed the Exam? • CPA Supplement • Career Changers • Working Professionals