What Is Financial Accounting & Reporting?
Introduction to Financial Accounting & Reporting (FAR)
Financial Accounting & Reporting (FAR) is the branch of accounting that focuses on recording, measuring, summarizing, and communicating an organization's financial information to external users. The CPA FAR section tests your understanding of U.S. GAAP, financial statement preparation, recognition and measurement principles, and reporting requirements for business entities, not-for-profit organizations, and governmental entities.
- Records financial transactions systematically.
- Prepares standardized financial statements.
- Communicates financial performance and position to external users.
- Applies accounting standards such as U.S. GAAP.
Note
FAR is typically considered the most comprehensive CPA exam section because it covers a broad range of accounting topics.
Summary
Financial Accounting & Reporting provides reliable financial information that enables investors, creditors, regulators, and other stakeholders to make informed economic decisions.