CPA FAR case studies

CPA FAR · Put your knowledge to work in context.

The CPA Financial Accounting and Reporting (FAR) section is one of the core divisions of the Uniform CPA Examination, the licensing exam that state boards of accountancy use to qualify candidates for a CPA license in the United States. FAR is designed for accounting graduates, staff accountants, and audit or reporting professionals who need to demonstrate technical command of U.S. The CPA FAR case studies are 5 cases and about 4,772 words.

Harborline Instruments: Four Unresolved Matters at Year-End

Harborline Instruments, a calendar-year public company, is finalizing its December 31, 20X5 financial statements, expected to be issued March 12, 20X6. Draft pre-tax income is 22.0 million; the audit committee treats any pre-tax item above 1.0 million as material.

926 words, about 5 min 2

Kestrel Manufacturing: Is the Kestrel Europe Sale a Discontinued Operation?

Kestrel Manufacturing has three reporting segments. On September 30, 20X5 its board approved and committed to a plan to sell Kestrel Europe, its only non-North American subsidiary, engaged an investment bank, and considers a sale within twelve months probable.

881 words, about 4 min 3

Nordale Systems: Allocating a Bundled Machine, Installation, Support, and Renewal Option

On November 1, 20X5 Nordale Systems contracted to deliver a sorting machine, install it, and provide four years of remote monitoring support for a fixed 1,200,000, payable in full on delivery. Nordale frequently sells the machine alone for 950,000 and regularly sells installation for 100,000 and four-year support for 400,000.

896 words, about 4 min 4

Caldera Group: Reporting Unit Reorganization and Goodwill Impairment

At December 31, 20X5 Caldera Group carries goodwill of 180.0 million. During the second quarter of 20X5 it reorganized from three reporting units to two, moving a product line previously in the Components unit into the Devices unit.

1,050 words, about 5 min 5

City of Riverton: Property Tax Availability and Fund Balance Classification

The City of Riverton's fiscal year ends December 31. In October 20X4 the council levied 52.0 million of property taxes for 20X5.

1,019 words, about 5 min