How Many Hours to Study for FAR CPA Exam? Crucial Insights for Success: Aim for 150-200 hours of dedicated study for the FAR section of the CPA Exam. This comprehensive guide breaks down effective study strategies to help you master the material efficiently.

Key Takeaways:
Estimate 150-200 hours for FAR CPA exam study.
Break down FAR into manageable study blocks.
Prioritize weak areas with targeted practice.
Utilize diverse study resources effectively.
Simulate exam conditions regularly.
Adjust your plan based on progress.

How Many Hours to Study for FAR CPA Exam: Crucial Insights

Preparing for the Certified Public Accountant (CPA) exam is a significant undertaking. Many candidates feel overwhelmed by the sheer volume of material, especially for the Financial Accounting and Reporting (FAR) section. You might be wondering, “Just how many hours do I really need to study for FAR?” This is a common and important question. The FAR exam covers a vast amount of accounting principles and standards. Getting a clear picture of the time commitment is the first step toward building a successful study plan. We’ll guide you through the essential insights to help you prepare effectively and confidently. Let’s dive into the specifics of tackling FAR.

Understanding the FAR CPA Exam Scope

The FAR section is widely considered one of the most challenging parts of the CPA exam. It tests your knowledge of accounting and financial reporting frameworks, including Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). The exam requires a deep understanding of financial statement preparation, analysis, and the underlying concepts. This includes areas like business combinations, leases, revenue recognition, inventory, and governmental and not-for-profit accounting. Because of its breadth and depth, it demands a substantial time investment.

Why FAR Requires Significant Study Time

FAR covers a broad spectrum of accounting topics. Unlike other sections that might focus on a specific discipline, FAR is the bedrock of financial accounting knowledge. It requires not just memorization but also the ability to apply complex standards to various scenarios. Many candidates find that the concepts tested are intricate and require repeated exposure and practice to truly grasp. The AICPA (American Institute of Certified Public Accountants) provides an Exam Blueprint that details the content covered, emphasizing the wide range of topics. Understanding this scope is crucial for estimating the necessary study hours.

Estimating the Ideal Study Hours for FAR

So, how many hours are truly needed? Based on data from CPA review course providers and anecdotal evidence from successful candidates, the general consensus for the FAR section is between 150 and 200 hours of dedicated study. This is a significant time commitment, often spread over several weeks or months.

Factors Influencing Your Study Time

The 150-200 hour range is an estimate, and your personal study time may vary. Several factors can influence this:

Prior Accounting Knowledge: If you have a strong academic background in accounting and extensive practical experience, you might need fewer hours. Conversely, if your accounting foundation is weaker, you’ll likely need more time.
Learning Style: Some individuals absorb information quickly through reading, while others benefit more from lectures, practice questions, or flashcards. Identifying your most effective learning style can help optimize your study hours.
CPA Review Course: The quality and structure of your chosen CPA review course can significantly impact efficiency. Comprehensive courses often provide structured lesson plans and practice materials that can streamline your study process.
Time Management Skills: Your ability to consistently dedicate time to studying and avoid procrastination will directly affect the total hours needed and the timeframe.
Exam Readiness: How well you perform on practice exams and individual question sets is a key indicator of readiness. If you’re consistently scoring low, you’ll need to put in more hours.

A Breakdown of Study Time Allocation

To make the 150-200 hours more manageable, it’s helpful to break them down. Consider a study schedule that allocates time across different study activities:

Learning New Material: Reading textbooks, watching lectures, and understanding concepts.
Practice Questions: Working through multiple-choice questions (MCQs) and task-based simulations (TBSs).
Review and Reinforcement: Revisiting challenging topics, using flashcards, and reviewing notes.
Practice Exams: Simulating the actual exam environment to build stamina and identify weak areas.

A common approach is to dedicate roughly 60-70% of your time to learning and understanding, 20-30% to practice questions, and 10-15% to review and practice exams.

Structuring Your FAR Study Plan

A structured study plan is essential for tackling the FAR section effectively. Without one, it’s easy to get lost in the material or neglect crucial topics.

Step-by-Step Study Approach

Here’s a step-by-step approach to building your FAR study plan:

1. Gather Your Resources: Select a reputable CPA review course. Most reputable providers, such as Becker, Wiley, Surgent, or Gleim, offer comprehensive materials. Also, consider supplementary resources like AICPA practice exams.
2. Assess Your Baseline: Take a diagnostic test if your review course offers one, or try a set of introductory questions to gauge your current knowledge level.
3. Create a Realistic Schedule: Determine how many weeks you have until your exam date and how many hours per week you can realistically commit. Aim for a consistent study schedule, even if it’s just a few hours each day.
4. Module-Based Learning: Work through your review course module by module. Focus on understanding the core concepts before moving on to practice questions.
5. Practice, Practice, Practice: After learning a topic, immediately tackle the corresponding MCQs and TBSs. This reinforces learning and helps you understand how concepts are tested.
6. Targeted Review: Identify topics where you consistently struggle. Dedicate extra time to these areas through additional readings, practice problems, or targeted video reviews.
7. Simulate Exam Conditions: As you get closer to your exam date, take full-length practice exams under timed conditions. This helps build stamina and simulates the pressure of the actual test.
8. Final Review: In the last week or two, focus on reviewing weak areas and high-yield topics. Don’t try to learn entirely new material.

Sample Weekly Study Schedule (Example)

To illustrate, here’s a sample weekly schedule for a candidate studying 20 hours per week:

| Day | Time Allocation | Focus |
| :——- | :————– | :—————————————- |
| Monday | 3 hours | Learn new FAR module (e.g., Leases) |
| Tuesday | 3 hours | Practice MCQs and TBSs for the module |
| Wednesday| 2 hours | Review previous module concepts/weak areas |
| Thursday | 3 hours | Learn next FAR module (e.g., Revenue Rec.)|
| Friday | 3 hours | Practice MCQs and TBSs for new module |
| Saturday | 4 hours | Full-length Practice Exam or TBS practice |
| Sunday | 2 hours | Review practice exam/quiz results |

This is just an example; adjust it to fit your personal commitments and learning pace.

Leveraging Study Tools and Resources

Choosing the right study tools can significantly enhance your learning experience and efficiency.

Essential CPA Exam Study Materials

CPA Review Courses: These are comprehensive packages that typically include textbooks, video lectures, practice questions, and simulated exams. Popular options include:
Becker CPA Review
Wiley CPAexcel
Surgent CPA Review
Gleim CPA Review
AICPA Resources: The AICPA offers official practice exams and sample tests. These are invaluable for understanding the exam format and difficulty. You can access them through the AICPA website.
Flashcards and Study Notes: Many candidates create their own flashcards or use digital tools like Anki to memorize key terms, formulas, and concepts.
Study Groups: While not for everyone, study groups can provide accountability and different perspectives on challenging topics.

Utilizing Practice Questions and Simulations

Practice questions are the cornerstone of FAR preparation. They help you:

Assess Comprehension: Determine if you truly understand a concept.
Identify Weaknesses: Highlight areas where you need more study.
Learn Test-Taking Strategies: Develop speed and accuracy.
Become Familiar with Exam Format: Understand how questions are structured and how TBSs work.

Aim to complete thousands of MCQs and numerous TBSs throughout your study process. The AICPA provides a database of sample questions that mimic the real exam.

Optimizing Your Study Time for FAR Success

Simply logging hours isn’t enough; it’s about how you use that time. Effective study strategies can make your hours more productive.

Active Recall and Spaced Repetition

Active Recall: Instead of passively rereading notes, actively try to retrieve information from memory. This could involve quizzing yourself, explaining concepts aloud, or using flashcards.
Spaced Repetition: Review material at increasing intervals. This technique helps move information from short-term to long-term memory. For example, review a topic one day after learning it, then three days later, then a week later, and so on.

Focusing on High-Yield Topics

Some topics appear more frequently on the FAR exam or carry more weight. While you must study all areas, pay special attention to:

Revenue Recognition (ASC 606)
Leases (ASC 842)
Business Combinations
Financial Instruments
Inventory
Governmental and Not-for-Profit Accounting

Your review course will typically highlight these high-yield areas.

Simulating Exam Day Conditions

As your exam date approaches, it’s crucial to simulate the actual testing environment. This means:

Timed Practice Exams: Complete full-length exams within the allotted time.
Minimizing Distractions: Study in a quiet environment without interruptions.
Using the Testing Software: Familiarize yourself with the interface of the CPA exam software if possible through your review course’s simulations.

This preparation helps manage exam anxiety and improves your ability to perform under pressure.

Pro Tips for Mastering FAR

Don’t Skip the TBSs: Task-based simulations are a significant part of the FAR exam. They require you to apply concepts to realistic scenarios. Dedicate ample time to practicing these.
Understand the “Why”: Don’t just memorize rules. Understand the underlying reasoning behind accounting standards. This makes application much easier.
Review AICPA Guidance: For specific complex topics like IFRS or governmental accounting, refer to the AICPA’s guidance and authoritative literature when needed. The official standards can offer clarity.
Take Breaks: Burnout is real. Schedule regular breaks and days off to maintain focus and prevent fatigue.

Common Questions About FAR Study Hours

Here are some frequently asked questions about the time commitment for the FAR CPA Exam:

Q1: Is 150 hours enough for the FAR exam?

A1: For many candidates, 150 hours is the minimum required. If you have a very strong accounting background and learn quickly, it might be sufficient. However, aiming for closer to 180-200 hours provides a safer buffer and allows for more thorough review and practice.

Q2: How many hours should I study per day for FAR?

A2: This depends on your weekly goal and available time. If you aim for 20 hours per week over 10 weeks, that’s 2 hours per day on weekdays. If you have less time during the week, you might need to dedicate more hours on weekends. Consistency is key.

Q3: Should I study FAR first or last?

A3: Many candidates choose to study FAR first because it covers foundational accounting principles that are often referenced or built upon in other sections. However, some prefer to tackle it last after building momentum with other sections. There’s no single right answer; it depends on your personal strengths and preferences.

Q4: What if I’m falling behind my study schedule?

A4: Don’t panic. Re-evaluate your schedule and identify where you can add more time, perhaps by sacrificing some leisure activities temporarily. Focus on understanding key concepts rather than just checking off modules. If necessary, consider rescheduling your exam to give yourself adequate preparation time.

Q5: How do I know when I’m ready for the FAR exam?

A5: You’re likely ready when you consistently score 75-80% or higher on practice exams and feel confident applying concepts to TBSs. You should also be able to explain complex topics without constantly referring to your notes.

Q6: Does studying more than 200 hours for FAR help?

A6: While more study is generally better than less, there’s a point of diminishing returns. Studying excessively can lead to burnout and decreased efficiency. The focus should be on quality of study, not just quantity. Ensure your study methods are effective.

Q7: How important are the AICPA authoritative literature resources?

A7: For specific, nuanced questions or understanding the intent behind standards, the AICPA’s authoritative literature (like FASB Accounting Standards Codification) can be invaluable. Your review course will guide you on when and how to use these resources, but direct access can provide ultimate clarity.

Conclusion

The question of “how many hours to study for FAR CPA exam” doesn’t have a single, definitive answer, but a well-researched estimate is between 150 and 200 hours. This time investment is crucial for mastering the extensive material covered in this section. By understanding the scope of FAR, creating a structured study plan, leveraging effective study tools, and employing smart learning strategies, you can optimize your preparation. Remember that consistency, active learning, and targeted practice are more important than simply clocking hours. Stay disciplined, adapt your plan as needed, and trust in your preparation. You have the ability to conquer FAR and take a significant step toward earning your CPA license.