US CPA FAR (Financial Accounting and Reporting) — Complete Guide 2026
US CPA FAR exam complete guide: syllabus breakdown, exam format, weighting, hardest topics, study strategy, pass rates, and how Indian students can pass CPA FAR on their first attempt.
Financial Accounting and Reporting (FAR) is a Core section of the US CPA exam. According to the AICPA blueprint effective January 2026, it lasts four hours and contains 50 multiple-choice questions and 7 task-based simulations. Its cumulative pass rate for the first half of 2026 was 42.95 percent on the AICPA page, which is among the lowest of the six sections. This guide sets out the structure, the three content areas and their weightings, how the section is scored and where it sits with the rest of the exam. For the other Core section guides see our AUD guide and REG guide, and for the full picture read our how to become a US CPA guide.
At a glance
| Item | What the official sources say |
|---|---|
| Section type | Core: every candidate must pass it |
| Time | Four hours |
| Multiple-choice questions | 50, in two testlets of 25 |
| Task-based simulations | 7, in three testlets of 2, 3 and 2 |
| Score weighting | 50 percent multiple-choice, 50 percent simulations |
| Area I | Financial Reporting: 30 to 40 percent |
| Area II | Select Balance Sheet Accounts: 30 to 40 percent |
| Area III | Select Transactions: 25 to 35 percent |
| Pass rate (AICPA) | 42.12 percent for 2025; 42.95 percent for the first two quarters of 2026 |
What FAR covers
FAR tests the preparation and analysis of financial statements. The AICPA blueprint divides the section into three areas. Financial Reporting, at 30 to 40 percent, is the broadest and covers the framework and the statements themselves. Select Balance Sheet Accounts, at 30 to 40 percent, covers the treatment of specific accounts. Select Transactions, at 25 to 35 percent, covers the accounting for particular types of transaction. The three ranges overlap, so the exact split on any one exam can differ, and you should treat the ranges as guidance on where the weight lies rather than a fixed split.
Exam structure
The section has five testlets. The first two are multiple choice, with 25 questions in each, and the last three are task-based simulations with 2, 3 and 2 tasks. The AICPA weights the multiple-choice and simulation scores equally, so the simulations are worth as much as the 50 questions. NASBA says candidates are offered a 15-minute break after the first simulation testlet, and that the appointment includes 30 extra minutes for login that do not count towards testing time.
Sources the section draws on
The blueprint lists the references the section may test, including the FASB Accounting Standards Codification, the FASB Concepts Statements, SEC reporting references and the GASB codification. Material outside those references is not eligible for testing, so a study plan built on the blueprint is safer than one built on a general textbook.
How hard is FAR?
AICPA data puts the 2025 FAR pass rate at 42.12 percent and the 2026 figure for the first two quarters at 42.95 percent. By quarter, the 2025 figures ran from 40.20 percent in Q4 to 43.52 percent in Q2. REG, ISC and TCP all post higher rates. Pass rates describe all candidates who sat the section, not those who prepared well, so use them to understand the section rather than to predict your own result. Our CPA pass rates guide compares all six sections.
How FAR is scored
Scores run from 0 to 99 and the pass mark is 75. The AICPA says scores are scaled, not curved and not a percentage of questions correct. Our CPA exam scoring guide explains how long results take and what the score report shows.
Choosing when to sit FAR
FAR is a Core section, so it can be scheduled throughout the year. Many candidates pair it with another Core section, but no official source says which order is best, so plan around your own study time and your state board's credit window. Our retake and credit window guide covers how long passed sections stay valid.
Blueprint changes
The January 2026 blueprint is the current one. The AICPA has also published blueprints that take effect on 1 January 2027, and we have not summarised them here. If you plan to sit FAR in 2027, read the AICPA's list of changes first.
Frequently asked questions
How many questions are on the CPA FAR exam?
50 multiple-choice questions and 7 task-based simulations, in five testlets, over four hours.
Is FAR a Core or Discipline section?
Core. Every CPA candidate must pass it.
What is the FAR pass rate?
The AICPA page reports 42.12 percent for 2025 and 42.95 percent for the first two quarters of 2026.
What is the passing score for FAR?
75 on the 0 to 99 scale, the same as every other section.
What are the FAR content areas?
Financial Reporting, Select Balance Sheet Accounts and Select Transactions, weighted 30 to 40, 30 to 40 and 25 to 35 percent.
Next steps
Read the CPA syllabus guide for the whole exam and the registration and Notice to Schedule guide when you are ready to book. If you are comparing study options, see our Learnsignal pricing page and the CPA study materials comparison.
Source: AICPA and CIMA Uniform CPA Examination Blueprints effective January 2026, the AICPA exam structure pages and the NASBA CPA Exam Candidate Guide (September 2026). AICPA published pass rates are quarterly and cumulative, and the AICPA page we used is dated 15 July 2026 and includes the first two quarters of 2026 only. Checked October 2026.
This page was last updated:
Learnsignal Education Team
Expert Tutor at Learnsignal
Qualified professional with years of experience helping students advance their professional careers.
View all posts by Learnsignal Education Team
