The number of hours to study for the FAR CPA Exam varies, but most candidates find success with 100-150 hours of focused study per section, typically spread over 8-12 weeks. Consistency and effective study techniques are key.

Key Takeaways

• Allocate 100-150 hours for FAR success.
• Plan your study over 8-12 weeks.
• Focus on understanding, not just memorization.
• Practice extensively with CPA review materials.
• Adapt your study plan as needed.
• Prioritize weak areas consistently.

How Many Hours to Study for the FAR CPA Exam: Expert Secrets

Deciding how many hours to study for the FAR (Financial Accounting and Reporting) section of the CPA Exam is a common question for aspiring CPAs. It’s a big exam, covering a vast amount of material. Many students feel overwhelmed, unsure if they’re studying enough or too much. This uncertainty can lead to anxiety and inefficient study habits. But don’t worry, you’re not alone. We’re here to break down the essential factors that determine your study time and provide a clear, actionable plan. By the end of this guide, you’ll have a solid understanding of how to approach your FAR preparation effectively.

Understanding the FAR Section of the CPA Exam

The FAR section is known for its breadth and depth. It tests your knowledge of U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). This includes topics like financial statement preparation, conceptual framework, specific account balances, and disclosures. The exam is designed to assess your ability to apply accounting principles to real-world scenarios.

Why FAR Requires Significant Study Time

FAR is often considered one of the most challenging sections of the CPA Exam due to its extensive content. It covers a broad range of accounting standards and requires a deep understanding of their application. Unlike other sections that might focus on specific skills or processes, FAR demands comprehensive knowledge of accounting principles that form the foundation of financial reporting. This extensive scope naturally translates into a need for substantial study hours.

The AICPA’s Role in Exam Structure

The American Institute of Certified Public Accountants (AICPA) develops and scores the CPA Exam. They provide detailed blueprints outlining the content areas and their respective weights on the exam. Understanding these blueprints is crucial for tailoring your study efforts. The AICPA emphasizes not just memorization but also the application and analysis of accounting concepts. You can find the official CPA Exam Blueprints on the AICPA’s website, which are invaluable resources for exam candidates. They are updated periodically, so always refer to the latest version.

Estimating Your FAR Study Hours: The 100-150 Hour Guideline

A widely accepted benchmark for studying the FAR section of the CPA Exam is between 100 and 150 hours. This range is not arbitrary; it’s derived from the collective experience of countless candidates and reflected in the recommendations of major CPA review course providers. This estimate assumes you are using a structured review course and engaging actively with the material. It’s a starting point, and your individual needs may require adjustments.

Factors Influencing Your Personal Study Time

While the 100-150 hour guideline is a good starting point, your personal study time can be influenced by several factors:

• Prior Accounting Knowledge: If you have a strong academic background in accounting, especially recent coursework in advanced accounting topics, you might need fewer hours. Conversely, if your accounting education is distant or less comprehensive, you’ll likely need more time.
• Learning Style and Pace: Some individuals absorb information quickly, while others require more repetition and practice. Your natural learning pace will impact how many hours you need to feel confident.
• CPA Review Course Quality: The effectiveness of your chosen CPA review course can significantly impact study efficiency. High-quality courses often provide more focused content and better practice tools, potentially reducing overall study time.
• Study Efficiency: How effectively you study is more important than just the raw hours logged. Active recall, practice questions, and concept mapping are more efficient than passive reading.
• Work Experience: Relevant professional experience can provide practical context for FAR concepts, potentially accelerating understanding.

What Does “Studying” Really Mean?

It’s important to define what constitutes productive study time. Simply reading textbooks or watching lectures passively might not be enough. Effective study for FAR involves:

• Active Learning: Engaging with the material through practice problems, flashcards, and self-testing.
• Concept Mastery: Ensuring you understand the “why” behind accounting rules, not just the “what.”
• Application: Working through multiple-choice questions (MCQs) and task-based simulations (TBSs) to apply concepts.
• Review and Reinforcement: Regularly revisiting material to solidify understanding and retention.

Creating Your FAR Study Schedule: A Step-by-Step Approach

A structured study schedule is crucial for managing the vast amount of FAR content and ensuring you cover everything adequately. Here’s a step-by-step approach to building your personalized schedule.

Step 1: Assess Your Starting Point

Before diving in, take stock of your current knowledge. Many CPA review courses offer diagnostic exams that can help identify your strengths and weaknesses. This initial assessment will inform how you allocate your study time across different FAR topics.

Step 2: Choose Your CPA Review Course

Selecting a reputable CPA review course is a critical decision. Popular options include Becker, Roger CPA Review, Wiley CPAexcel, and Gleim. These courses typically provide structured syllabi, video lectures, extensive question banks, and practice exams. They often offer guidance on study hours and schedules, which can be adapted to your needs.

Step 3: Determine Your Study Timeline

Most candidates find it effective to spread their FAR studies over 8 to 12 weeks. This timeframe allows for consistent learning without burnout. For example, if you aim for 120 hours of study over 10 weeks, that’s about 12 hours per week. This is manageable for many busy professionals or students.

Consider these factors when setting your timeline:

• Exam Date: Do you have a target exam date? Work backward from there.
• Weekly Availability: Realistically assess how many hours you can dedicate each week.
• Work/Life Balance: Ensure your study plan is sustainable and doesn’t lead to excessive stress.

Step 4: Break Down the FAR Content

The FAR exam is divided into several major content areas. Your review course will likely structure its modules accordingly. Typically, these include:

• Conceptual Framework, Standard-Setting, and Financial Reporting: Covers the underlying principles and standard-setting bodies.
• Financial Statement Accounts: Focuses on specific balance sheet and income statement accounts (e.g., cash, receivables, inventory, investments, PPE, liabilities, equity).
• Specific Transactions and Events: Deals with more complex transactions like leases, revenue recognition, and pensions.
• Governmental and Not-for-Profit Organizations: Addresses accounting for these unique entities.

Allocate study time to each module based on its weight on the exam and your personal understanding. Refer to the AICPA CPA Exam Blueprints for official weighting.

Step 5: Integrate Practice Questions Early and Often

Don’t wait until you’ve “learned everything” to start doing practice questions. Begin integrating MCQs and TBSs into your study routine from the beginning. This helps reinforce concepts, exposes you to exam-style questions, and identifies weak areas early on.

Step 6: Schedule Regular Review and Practice Exams

Consistency is key. Dedicate specific time slots each week for studying. Also, schedule regular review sessions to go over previously covered material. As you get closer to your exam date, incorporate full-length practice exams under timed conditions. This simulates the actual exam experience and helps you build stamina.

A Sample Study Plan Framework

Here’s a sample framework for a 10-week study plan, assuming approximately 12 hours of study per week. This is a template and should be adjusted based on your specific needs and chosen review course.

Weeks 1-2: Foundations and Conceptual Framework

• Focus: AICPA conceptual framework, standard-setting, financial statement presentation.
• Activities: Watch lectures, read textbook chapters, complete MCQs for each topic.
• Hours: ~12 hours/week.

Weeks 3-5: Financial Statement Accounts (Current Assets, Non-Current Assets)

• Focus: Cash, receivables, inventory, investments, property, plant, and equipment, intangible assets.
• Activities: Deep dive into each account, work numerous MCQs, and start early TBS practice related to these accounts.
• Hours: ~12-15 hours/week.

Weeks 6-7: Financial Statement Accounts (Liabilities & Equity) and Specific Transactions

• Focus: Current liabilities, long-term liabilities, stock-based compensation, leases, revenue recognition, pensions.
• Activities: Intensive study of these complex areas, heavy emphasis on MCQs and TBSs.
• Hours: ~12-15 hours/week.

Week 8: Governmental and Not-for-Profit Accounting

• Focus: Understanding the unique accounting principles for these entities.
• Activities: Study the specific standards, practice MCQs and TBSs.
• Hours: ~10-12 hours/week.

Week 9: Comprehensive Review and Practice Exams

• Focus: Review all topics, identify and reinforce weak areas. Take at least one full-length practice exam.
• Activities: Targeted practice question sets, review notes, simulate exam conditions.
• Hours: ~15-18 hours/week.

Week 10: Final Review and Practice

• Focus: Final review of key concepts and formulas, practice with challenging MCQs and TBSs. Take another full-length practice exam.
• Activities: Light review, focus on areas of persistent difficulty, ensure you are comfortable with exam software.
• Hours: ~10-15 hours/week.

Maximizing Your Study Efficiency

Logging hours is only part of the equation; studying effectively is what truly matters. Here are some expert secrets to maximize your FAR study efficiency:

1. Active Recall and Spaced Repetition

Don’t just passively reread notes. Actively try to recall information from memory. Use flashcards, quiz yourself, or explain concepts aloud. Spaced repetition involves reviewing material at increasing intervals, which significantly improves long-term retention. Tools like Anki can help implement this strategy.

2. Practice, Practice, Practice

The CPA Exam, especially FAR, is heavily reliant on applying concepts. Your CPA review course will provide thousands of MCQs and TBSs. Make it your goal to work through as many as possible. Aim for a high proficiency score on your review course’s practice questions. For example, many recommend aiming for 70-80% mastery on MCQs before considering yourself ready.

3. Understand, Don’t Just Memorize

FAR concepts are interconnected. While some memorization is necessary (e.g., specific journal entries), true mastery comes from understanding the underlying principles. Ask yourself “why” a particular accounting treatment is used. This deeper understanding will help you tackle unfamiliar scenarios and questions.

4. Focus on Weak Areas

Be honest about your strengths and weaknesses. Spend extra time on topics that consistently give you trouble. Your practice question analytics will be invaluable here. Don’t shy away from difficult subjects; address them head-on.

5. Simulate Exam Conditions

As you get closer to your exam date, practice exams are essential. Take them under timed conditions, without distractions, just as you would on exam day. This helps build endurance, manage your time effectively, and reduce test-day anxiety. Familiarize yourself with the AICPA’s exam software through their tutorials.

Tools and Resources for FAR Success

Beyond your primary CPA review course, several other tools and resources can enhance your FAR preparation:

• AICPA CPA Exam Blueprints: The official guide from the AICPA detailing exam content, task areas, and weights.
• AICPA Sample Tests: Free sample tests provided by the AICPA to familiarize yourself with the exam format and software.
• Accounting Standards Codification (FASB ASC): For in-depth research on specific GAAP topics, the FASB ASC is the authoritative source. While your review course will cover key points, direct reference can be useful for complex issues. Access to the ASC is available on the FASB website.
• Study Groups: Collaborating with fellow candidates can provide different perspectives and help clarify difficult concepts.
• Note-Taking Apps: Tools like Evernote or OneNote can help organize your study materials and notes.

The Importance of Consistency and Well-being

Cramming is rarely effective for an exam as comprehensive as FAR. Consistent, focused study sessions over an extended period are far more beneficial. Aim for quality over quantity in your study hours.

Avoiding Burnout

Preparing for the CPA Exam is a marathon, not a sprint. It’s crucial to avoid burnout. Ensure you schedule regular breaks, get enough sleep, eat well, and engage in activities you enjoy. A balanced approach will lead to more effective learning and better exam performance. If you’re studying 12 hours a week, that leaves plenty of time for rest and other life commitments.

Tracking Your Progress

Use your review course’s analytics to track your progress on MCQs and TBSs. Monitor your scores on practice exams. This data is invaluable for identifying areas that need more attention and for gauging your readiness. Celebrate small victories along the way to stay motivated.

When Are You “Ready” for FAR?

Determining when you are truly ready for the FAR exam involves more than just hitting a certain number of hours. It’s about confidence and competence. You’re likely ready if:

• You consistently score 75% or higher on practice MCQ sets covering all FAR topics.
• You can comfortably complete TBSs, demonstrating an understanding of how to apply accounting principles.
• You feel confident explaining the rationale behind key accounting treatments.
• You have completed at least two full-length practice exams, simulating exam conditions, and achieved scores that indicate readiness (often above 70-75% on practice exams).
• You have reviewed all major FAR topics and have a solid grasp of the most heavily weighted areas.

Listen to your gut feeling, but back it up with performance data from your practice materials.

Expert Insights: Common Pitfalls to Avoid

Many candidates make similar mistakes when preparing for FAR. Being aware of these pitfalls can help you steer clear of them:

• Underestimating the Volume: FAR covers more topics than any other section. Don’t assume you can learn it all in a few weeks.
• Passive Studying: Simply reading or watching lectures without active engagement leads to poor retention.
• Skipping Difficult Topics: These often appear on the exam and can significantly impact your score.
• Not Practicing TBSs Enough: Task-Based Simulations are a crucial part of the exam and require dedicated practice.
• Ignoring the Blueprints: Studying topics with low exam weight at the expense of high-weight areas is inefficient.

Pro Tip:

When working through practice questions, don’t just focus on getting the right answer. Understand why the correct answer is right and why the incorrect answers are wrong. This analytical approach significantly boosts learning and retention.

Frequently Asked Questions (FAQs)

Q1: Is 100 hours enough to study for FAR?

For many candidates with a strong accounting background, 100 hours can be sufficient if those hours are highly focused and productive. However, the 100-150 hour range is a more common and safer bet to ensure comprehensive coverage and mastery.

Q2: How many weeks should I study for FAR?

Most candidates benefit from a study period of 8 to 12 weeks. This allows for consistent learning without overwhelming yourself and provides ample time for practice and review.

Q3: Should I study FAR first or last?

This is a personal choice. Some prefer to tackle FAR first because it covers foundational accounting principles, which can be helpful for other sections. Others prefer to get the potentially more challenging sections out of the way and save FAR for last when they have more exam experience.

Q4: What if I can only study 5 hours per week for FAR?

If you can only dedicate 5 hours per week, you will need to extend your study timeline significantly, likely to 20-30 weeks to reach the 100-150 hour goal. Consistency is key, so even with fewer hours per week, a longer duration can be effective.

Q5: How important are the Task-Based Simulations (TBSs) in FAR?

TBSs are extremely important. They represent 50% of the FAR exam score. You must practice these extensively to become comfortable with applying accounting principles in a simulated work environment.

Q6: Do I need to memorize all accounting standards?

No, you don’t need to memorize every single word of every standard. However, you must understand the core principles and the application of the most common and heavily tested standards. Your review course will guide you on what’s most critical.

Q7: How do I know if I’ve studied enough?

You’ll know you’ve studied enough when you consistently perform well on practice questions and exams, feel confident applying concepts, and can explain the rationale behind accounting treatments. Rely on your review course’s analytics and your own self-assessment.

Conclusion

Determining the exact number of hours to study for the FAR CPA Exam is a personalized journey, but the 100-150 hour guideline, spread over 8-12 weeks, provides a solid framework. Success hinges not just on the quantity of hours logged, but on the quality of your study sessions. By employing active learning strategies, practicing consistently with MCQs and TBSs, focusing on understanding core concepts, and managing your well-being, you can effectively prepare for this challenging section. Remember to leverage the resources available, adapt your plan as needed, and trust in your preparation. With dedication and a smart strategy, you can conquer FAR and move closer to achieving your CPA designation.