The Financial Accounting and Reporting (FAR) section remains one of the most demanding parts of the CPA Exam in 2026. The challenge is not just the difficulty of individual topics, but the sheer breadth of content and the way those topics are tested together.
Many candidates prepare seriously for FAR but still feel unsure heading into exam day. In most cases, the issue is not effort or intelligence. It is poor prioritization, inefficient time allocation, or delayed execution practice.
This guide explains everything you need to understand about the 2026 FAR CPA Exam, including how it is structured, what it tests, how to prioritize topics, and how to build a study plan that actually works.
What the FAR CPA Exam Tests in 2026
The FAR CPA Exam evaluates your understanding of financial accounting and reporting concepts used across different types of entities.
Specifically, FAR tests your ability to:
- Prepare and analyze financial statements
- Apply accounting standards to practical scenarios
- Record and adjust transactions correctly
- Interpret financial data and disclosures
- Determine proper accounting treatment based on facts
The exam covers accounting for:
- For-profit entities
- Governmental entities
- Not-for-profit organizations
FAR places a strong emphasis on application and analysis. Topics are often connected, especially in task-based simulations, which is why surface-level memorization is rarely enough.
FAR CPA Exam Format and Structure
In 2026, the FAR exam is a four-hour exam that includes:
- Multiple-choice questions (MCQs)
- Task-based simulations (TBSs)
The exam is divided into testlets that mix MCQs and simulations throughout the session. Both question types are important.
MCQs test:
- Breadth of knowledge
- Accuracy
- Speed under time pressure
Simulations test:
- Depth of understanding
- Judgment
- Execution across multiple related concepts
Any FAR study plan that focuses only on MCQs or delays simulations until the end is incomplete.
How FAR Is Evaluated
FAR questions assess multiple skill levels, including:
- Understanding of accounting concepts
- Application of rules and calculations
- Analysis of scenarios and financial data
Higher-level questions often require you to:
- Interpret multiple pieces of information
- Apply standards across topics
- Avoid common traps and distractors
This is why practicing how to read questions, manage time, and approach unfamiliar scenarios is just as important as content review.
Why FAR Study Plans Often Fail
Many FAR study plans fail not because they are poorly designed, but because they are unrealistic.
Common issues include:
- Spending equal time on all topics
- Rushing high-weight areas to stay on schedule
- Skipping cumulative review
- Leaving simulations for the final weeks
- Following rigid daily schedules that break under real-life pressure
FAR rewards prioritization and repetition. Study plans focused only on finishing content often fail to reflect how the exam actually works.
How to Think About FAR Topic Prioritization
A strong FAR study plan does not allocate time evenly. It allocates time intentionally.
When deciding how much time a topic deserves, candidates should consider:
- How heavily the topic is tested
- How complex the concepts are
- How likely the topic is to appear in simulations
- Their personal strengths and weaknesses
Instead of asking “How many total hours do I need for FAR?” a better question is “Where should most of my FAR study time go?”
FAR Topics That Typically Require the Most Time
Some FAR topics consistently require more attention due to complexity and exam weight.
These usually include:
- Financial reporting and financial statements
- Revenue recognition
- Leases
- Bonds and long-term liabilities
- Governmental and not-for-profit accounting
Financial reporting topics often integrate multiple concepts and frequently appear in simulations. Revenue recognition and leases require careful application rather than memorization. Bonds and long-term liabilities demand comfort with multi-period calculations. Governmental and nonprofit accounting often feels unfamiliar and needs focused practice.
FAR Topics That Usually Require Moderate Time
Several topics are important but often become manageable once the logic is clear, such as:
- Inventory
- Cash and receivables
- Property, plant, and equipment
- Equity investments
- Intangible assets
These areas still require review and practice, but usually less repetition than core reporting topics.
FAR Topics That Usually Require Less Time
Some areas typically require familiarity rather than deep calculation practice, including:
- Conceptual framework
- Standard-setting bodies
- Selected disclosure requirements
These topics should not be ignored, but they rarely justify a large portion of total study time.
The Role of Task-Based Simulations in FAR Preparation
Simulations are a central part of FAR and should be practiced early.
Effective FAR preparation includes:
- Breaking down long simulation prompts
- Identifying what each requirement is asking
- Managing time within each simulation
- Understanding where partial credit may apply
Leaving simulations until the end of preparation often leads to execution issues on exam day.
Building a Realistic FAR CPA Exam Study Plan
A realistic FAR study plan includes:
- Heavier time allocation for high-impact topics
- Regular review cycles
- Ongoing simulation practice
- Periodic cumulative review
Flexible weekly targets tend to work better than rigid daily schedules. As preparation progresses, the plan should be adjusted based on performance rather than followed blindly.
When FAR Study Plans Need Adjustment
Signs that a FAR study plan needs revision include:
- Consistently weak practice scores
- Feeling rushed through major topics
- Avoiding simulations
- Running out of time during mock exams
Adjusting the plan early is far more effective than trying to compensate late.
When FAR CPA Exam Tutoring Can Be Helpful
FAR tutoring can be helpful when:
- Time allocation feels unclear
- Weak areas keep shifting
- Simulations remain difficult
- Available study time is limited
Tutoring helps candidates prioritize more effectively and refine execution strategy.
How Andrew Katz Tutoring Supports FAR Candidates
Andrew Katz works with FAR candidates to build realistic, exam-focused study plans tailored to individual performance and schedules.
The approach focuses on:
- Identifying high-impact FAR topics
- Adjusting time allocation based on results
- Improving simulation execution and pacing
- Building consistent review habits
The goal is not to rush through FAR content, but to focus on what matters most and execute confidently.
Frequently asked questions
What is covered on the FAR CPA Exam in 2026?
The FAR CPA Exam in 2026 covers financial accounting and reporting for for-profit, governmental, and not-for-profit entities. Topics include financial statements, revenue recognition, leases, bonds, inventory, government accounting, and related reporting standards. The exam focuses on application and analysis rather than memorization.
Is the FAR CPA Exam the hardest section?
FAR is often considered challenging because of the volume of material and the way topics are tested together. Candidates typically find FAR demanding due to financial statement integration, simulations, and time management rather than the difficulty of individual topics.
How much time should I study for the FAR CPA Exam?
The amount of time needed for FAR varies by background and experience. Candidates generally need more time for high-impact topics such as financial reporting, revenue recognition, leases, and simulations. A study plan should prioritize topic weight and performance rather than follow a fixed number of hours.
Which FAR topics require the most study time?
FAR topics that usually require the most time include financial statements and reporting, revenue recognition, leases, bonds and long-term liabilities, and governmental or not-for-profit accounting. These areas are frequently tested and often appear in simulations.
How important are task-based simulations on the FAR exam?
Task-based simulations are a major part of the FAR exam and test how candidates apply concepts under time pressure. Simulations often combine multiple topics, making early and consistent simulation practice important during FAR preparation.
Why do candidates struggle with FAR even after studying?
Candidates often struggle with FAR due to poor time allocation, delayed simulation practice, unrealistic study schedules, or focusing equally on all topics instead of prioritizing high-impact areas. These issues are related to strategy rather than effort.
Should I practice simulations early when studying for FAR?
Yes. Practicing simulations early helps candidates understand how FAR questions are structured, manage time effectively, and apply concepts across multiple topics. Waiting until the end to practice simulations can lead to execution problems on exam day.
How should I prioritize FAR topics when studying?
FAR topics should be prioritized based on exam weight, complexity, likelihood of appearing in simulations, and personal weaknesses. High-impact reporting topics typically deserve more study time than conceptual or memorization-based areas.
When should I adjust my FAR study plan?
A FAR study plan should be adjusted if practice scores remain low, major topics feel rushed, simulations are avoided, or time runs out during mock exams. Making changes early is more effective than trying to compensate close to exam day.
How can Andrew Katz Tutoring help with FAR preparation?
Andrew Katz helps FAR candidates build realistic, exam-focused study plans by prioritizing high-impact topics, improving simulation strategy, adjusting time allocation, and refining exam execution based on performance.
Final Thoughts
The 2026 FAR CPA Exam is challenging because of its scope, not because it is impossible.
Most FAR struggles stem from inefficient time allocation and delayed execution practice rather than lack of effort.
With smarter prioritization, consistent review, early simulation practice, and thoughtful adjustments, FAR preparation becomes far more manageable and controlled.