US CPA

Syllabus Areas

Area I — Conceptual Framework, Standard-Setting and Financial Reporting (25–35%)

Area II — Select Financial Statement Accounts (30–40%)
Area III — Select Transactions (20–30%)
Area IV — State and Local Governments (5-15%)

Skill allocation	Weight
Evaluation	—
Analysis	25–35%
Application	50–60%
Remembering and Understanding	10–20%

    

Detailed Syllabus Content 

Area I — Conceptual Framework, Standard-Setting and Financial Reporting (25–35%)

A. Conceptual framework and standard-setting for business and nonbusiness entities

Content group / topic	Remembering and Understanding	Application	Analysis	Evaluation	Representative task
1. Conceptual framework	√				Recall the purpose and characteristics in the conceptual framework for business and nonbusiness entities.
2. Standard setting process	√				Recall the due process steps followed by the FASB to establish financial accounting and reporting standards.

B. General-purpose financial statements: for-profit business entities

Content group / topic	Remembering and Understanding	Application	Analysis	Evaluation	Representative task
1. Balance sheet / statement of financial position		√			Prepare a classified balance sheet from a trial balance and supporting documentation
		√			Adjust the balance sheet to correct identified errors
			√		Detect, investigate and correct discrepancies while agreeing the balance sheet amounts to supporting documentation.
			√		Calculate fluctuations and ratios and interpret the results while reviewing comparative balance sheets.
2. Income statement/ statement of profit or loss		√			Prepare a multiple-step income statement from a trial balance and supporting documentation
		√			Prepare a single-step income statement from a trial balance and supporting documentation.
		√			Adjust the income statement to correct identified errors
			√		Detect, investigate and correct discrepancies while agreeing the income statement amounts to supporting documentation.
			√		Calculate fluctuations and ratios and interpret the results while reviewing comparative income statements.
3. Statement of comprehensive income		√			Prepare a statement of comprehensive income from a trial balance and supporting documentation
		√			Calculate reclassification adjustments for items of other comprehensive income.
		√			Adjust the statement of comprehensive income to correct identified errors.
			√		Detect, investigate and correct discrepancies while agreeing the statement of comprehensive income amounts to supporting documentation.
4. Statement of changes in equity		√			Prepare a statement of changes in equity from a trial balance and supporting documentation
		√			Adjust the statement of changes in equity to correct identified errors.
			√		Detect, investigate and correct discrepancies while agreeing the statement of changes in equity amounts to supporting documentation.
5. Statement of cash flows		√			Prepare a statement of cash flows using the direct method and required disclosures from supporting documentation.
		√			Prepare a statement of cash flows using the indirect method and required disclosures from supporting documentation
		√			Adjust a statement of cash flows to correct identified errors.
			√		Detect, investigate and correct discrepancies while agreeing the statement of cash flows amounts to supporting documentation.
			√		Derive the impact of transactions on the statement of cash flows.
6. Notes to financial statements		√			Adjust the notes to the financial statements to correct identified errors and omissions.
			√		Compare the notes to the financial statements and supporting documentation to identify inconsistencies and investigate those inconsistencies
7. Consolidated financial statements (including wholly owned subsidiaries and noncontrolling interests)	√				Recall basic consolidation concepts and terms (e.g. controlling interest, noncontrolling interest, primary beneficiary, variable interest entity).
		√			Prepare consolidated financial statements (includes adjustments, eliminations and/or noncontrolling interests) from supporting documentation.
		√			Adjust consolidated financial statements to correct identified errors.
			√		Detect, investigate and correct discrepancies identified while agreeing the consolidated financial statement amounts to supporting documentation.
8. Discontinued operations		√			Prepare the discontinued operations portion of the financial statements from a trial balance and supporting documentation.
9. Going concern	√				Recall the requirements for disclosing uncertainties about an entity’s ability to continue as a going concern

C. General-purpose financial statements: nongovernmental, not-for-profit entities

Content group / topic	Remembering and Understanding	Application	Analysis	Evaluation	Representative Task
1. Statement of financial position	√				Recall the purpose and objectives of the statement of financial position for a nongovernmental, not-for-profit entity.
		√			Prepare a statement of financial position for a nongovernmental, not-for-profit entity from a trial balance and supporting documentation.
		√			Adjust the statement of financial position for a nongovernmental, not-for-profit entity to correct identified errors
2. Statement of activities	√				Recall the purpose and objectives of the statement of activities for a nongovernmental, not-for-profit entity.
		√			Prepare a statement of activities for a nongovernmental, not-for-profit entity from a trial balance and supporting documentation.
		√			Adjust the statement of activities for a nongovernmental, not-for-profit entity to correct identified errors.
3. Statement of cash flows	√				Recall the purpose and objectives of the statement of cash flows for a nongovernmental, not-for-profit entity
		√			Prepare a statement of cash flows and required disclosures using the direct method for a nongovernmental, not-for-profit entity
		√			Prepare a statement of cash flows and required disclosures using the indirect method for a nongovernmental, not-for-profit entity.
		√			Adjust the statement of cash flows for a nongovernmental, not-for-profit entity to correct identified errors.
4. Notes to financial statements		√			Adjust the notes to the financial statements to correct identified errors and omissions.

D. Public company reporting topics (U.S. SEC reporting requirements, earnings per share and segment reporting)

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Recall the purpose of forms 10-Q, 10-K and 8-K that a U.S. registrant is required to file with the U.S. Securities and Exchange Commission under the Securities Exchange Act of 1934.
	√				Identify the significant components of Form 10-Q and Form 10-K filed with the U.S. Securities and Exchange Commission
		√			Prepare financial statement note disclosures for reportable segments.
		√			Calculate basic earnings per share.
		√			Calculate diluted earnings per share

E. Financial statements of employee benefit plans

Content group / topic	Remembering and Understanding	Application	Analysis	Evaluation	Representative task
	√				Identify the required financial statements for a defined benefit pension plan and a defined contribution pension plan.
		√			Prepare a statement of changes in net assets available for benefits for a defined benefit pension plan and a defined contribution pension plan.
		√			Prepare a statement of net assets available for benefits for a defined benefit pension plan and a defined contribution pension plan.

F. Special purpose frameworks

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Recall appropriate financial statement titles to be used for the financial statements prepared under a special purpose framework.
		√			Perform calculations to convert cash basis or modified cash basis financial statements to accrual basis financial statements.
		√			Prepare financial statements using the cash basis of accounting
		√			Prepare financial statements using a modified cash basis of accounting.
		√			Prepare financial statements using the income tax basis of accounting

Area II — Select Financial Statement Accounts (30-40%)

A. Cash and cash equivalents

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
		√			Calculate cash and cash equivalents balances to be reported in the financial statements
			√		Reconcile the cash balance per the bank statement to the general ledger
			√		Investigate unreconciled cash balances to determine whether an adjustment to the general ledger is necessary

B. Trade receivables

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
		√			Calculate trade receivables and allowances and prepare journal entries
		√			Prepare any required journal entries to record the transfer of trade receivables (secured borrowings, factoring, assignment, pledging).
			√		Prepare a rollforward of the trade receivables account balance using various sources of information.
			√		Reconcile and investigate differences between the subledger and general ledger for trade receivables to determine whether an adjustment is necessary.

C. Inventory

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
		√			Calculate the carrying amount of inventory and prepare journal entries using various costing methods
		√			Measure impairment losses on inventory
			√		Prepare a rollforward of the inventory account balance using various sources of information.
			√		Reconcile and investigate differences between the subledger and general ledger for inventory to determine whether an adjustment is necessary.

D. Property, plant and equipment

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
		√			Calculate the gross and net property, plant and equipment balances and prepare journal entries.
		√			Calculate gains or losses on the disposal of long-lived assets to be recognized in the financial statements
		√			Measure impairment losses on long-lived assets to be recognized in the financial statements
		√			Calculate the amounts necessary to prepare journal entries to record a nonmonetary exchange
		√			Determine whether an asset qualifies to be reported as held for sale in the financial statements.
		√			Adjust the carrying amount of assets held for sale and calculate the loss to be recognized in the financial statements.
			√		Prepare a rollforward of the property, plant and equipment account balance using various sources of information.
			√		Reconcile and investigate differences between the subledger and general ledger for property, plant and equipment to determine whether an adjustment is necessary.

E. Investments

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
1. Financial Assets at fair value	√				Identify investments that are eligible or required to be reported at fair value in the financial statements.
		√			Calculate the carrying amount of investments measured at fair value and prepare journal entries (excluding impairment).
		√			Calculate gains and losses to be recognized in net income or other comprehensive income for investments measured at fair value and prepare journal entries.
		√			Calculate investment income to be recognized in net income for investments measured at fair value and prepare journal entries.
		√			Measure impairment losses to be recognized on applicable investments reported at fair value in the financial statements.
2. Financial assets at amortized cost	√				Identify investments that are eligible to be reported at amortized cost in the financial statements
		√			Calculate the carrying amount of investments measured at amortized cost and prepare journal entries (excluding impairment).
		√			Measure impairment losses to be recognized on investments reported at amortized cost in the financial statements.
3. Equity method investments	√				Identify when the equity method of accounting can be applied to an investment
		√			Calculate the carrying amount of equity method investments and prepare journal entries (excluding impairment).
		√			Measure impairment losses to be recognized in the financial statements on equity method investments.

F. Intangible assets - Goodwill and other

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Identify the criteria for recognizing intangible assets in the statement of financial position and classify intangible assets as either finite-lived or indefinite-lived.
	√				Identify impairment indicators for goodwill and other indefinite-lived intangible assets
		√			Calculate the carrying amount of finite-lived intangible assets reported in the financial statements (initial measurement, amortization and impairment) and prepare journal entries
		√			Calculate the carrying amount of goodwill and other indefinite-lived intangible assets reported in the financial statements (includes initial measurement and impairment) and prepare journal entries.

G. Payables and accrued liabilities

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
		√			Calculate the carrying amount of payables and accrued liabilities and prepare journal entries.
		√			Identify and calculate liabilities arising from exit or disposal activities and determine the timing of recognition in the financial statements
		√			Calculate the liabilities and assets resulting from asset retirement obligations and prepare journal entries.
			√		Reconcile and investigate differences between the subledger and general ledger for accounts payable and accrued liabilities to determine whether an adjustment is necessary. (includes initial measurement and impairment) and prepare journal entries.

H. Long term debt (financial liabilities)

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
1. Notes and bonds payable	√				Classify a change to a debt instrument as either a modification of terms or an extinguishment of debt.
	√				Understand when a change to the terms of a debt instrument qualifies as a troubled debt restructuring
	√				Classify a financial instrument as either debt or equity, based on its characteristics.
		√			Calculate the interest expense attributable to notes and bonds payable reported in the financial statements (including discounts, premiums or debt issuance costs).
		√			Calculate the carrying amount of notes and bonds payable and prepare journal entries.

I. Equity

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
		√			Prepare journal entries to recognize equity transactions in the financial statements
		√			Calculate net asset balances for a nongovernmental, not-for-profit entity and prepare journal entries.

J. Revenue recognition

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Recall concepts of accounting for revenue
		√			Determine the amount and timing of revenue to be recognized under a contract and prepare journal entries.
		√			Determine revenue to be recognized by a nongovernmental, not-for-profit entity for contributed services received and prepare journal entries.
			√		Interpret agreements, contracts and/or other supporting documentation to determine the amount and timing of revenue to be recognized in the financial statements
			√		Reconcile and investigate differences between the sales subledger and the general ledger to determine whether an adjustment is necessary

K. Compensation and benefits

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
1. Compensated absences		√			Calculate the carrying amount of the liability for compensated absences and prepare journal entries.
2. Retirement benefits		√			Use actuarial outputs to calculate the costs and the funded status for a defined benefit pension plan or a defined benefit postretirement plan and prepare journal entries.
3. Stock compensation (share-based payments)	√				Recall concepts associated with share-based payment arrangements (grant date, vesting conditions, inputs to valuation techniques, valuation models).
		√			Calculate compensation costs to be recognized for a share-based payment arrangement classified as equity and prepare journal entries.
		√			Calculate compensation costs to be recognized for a share-based payment arrangement classified as a liability and prepare journal entries.

L. Income Taxes

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Recall the accounting treatment for uncertainty in income taxes
	√				Recall the criteria for recognizing or adjusting a valuation allowance for a deferred tax asset in the financial statements..
		√			Calculate the income tax expense, current taxes payable/receivable and deferred tax liabilities/assets to be reported in the financial statements
		√			Prepare journal entries to record the tax provision in the financial statements

Area III — Select Transactions (20–30%)

A. Accounting changes and error corrections

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
		√			Calculate a required adjustment to the financial statements due to an accounting change or error correction and determine whether it requires prospective or retrospective application.
			√		Derive the impact to the financial statements and related note disclosures of an accounting change or an error correction.

 

B. Business Combinations

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
		√			Prepare journal entries to record the identifiable net assets acquired in a business combination that results in the recognition of goodwil
		√			Prepare journal entries to record the identifiable net assets acquired in a business combination that includes a noncontrolling interest.
		√			Prepare journal entries to record the identifiable net assets acquired in a business combination that results in the recognition of a bargain purchase gain.
		√			Adjust the financial statements to properly reflect changes in contingent consideration related to a business combination.
		√			Calculate the consideration transferred in a business combination
		√			Adjust the financial statements to properly reflect measurement period adjustments related to a business combination.

C. Contingencies and commitments

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Recall the recognition and disclosure criteria used to identify commitments and contingencies.
		√			Calculate amounts of contingencies and prepare journal entries.
			√		Review supporting documentation to determine whether a commitment or contingency requires recognition or disclosure in the financial statements.

D. Derivatives and hedge accounting (eg: swaps, options and forwards)

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Identify the characteristics of a freestanding and/or embedded derivative financial instrument to be recognized in the financial statements.
	√				Identify the criteria necessary to qualify for hedge accounting
		√			Prepare journal entries for hedging transactions.
		√			Prepare journal entries for derivative financial instruments (swaps, options and forwards)

E. Foreign currency transactions and translation

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Recall the basic functional currency concepts including the indicators to be considered when determining an entity's functional currency
		√			Calculate transaction gains or losses recognized from monetary transactions denominated in a foreign currency.
		√			Adjust an entity's financial statements (local currency to functional currency or functional currency to reporting currency) and recognize the effect on equity through net income or other comprehensive income.

F. Leases

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Recall the appropriate accounting treatment for residual value guarantees, purchase options and variable lease payments included in leasing arrangements.
	√				Identify the criteria for classifying a lease arrangement.
		√			Calculate the carrying amount of lease-related assets and liabilities and prepare journal entries that a lessee should record.
		√			Calculate the carrying amount of lease-related assets and prepare journal entries that a lessor should record
		√			Calculate the lease costs that a lessee should recognize in the income statement
		√			Prepare journal entries that the seller/lessee should record for a sale-leaseback transaction.
		√			Calculate the amount of lease income that a lessor should recognize in the income statement.
			√		Interpret agreements, contracts and/or other supporting documentation to determine the appropriate accounting treatment of a leasing arrangement and prepare the journal entries that the lessee should record.

G. Nonreciprocal transfers

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Recall the recognition requirements associated with conditional and unconditional promises to give (pledges) for a nongovernmental, not-for-profit entity
	√				Identify transfers to a nongovernmental, not-for-profit entity acting as an agent or intermediary that are not recognized as contributions in the statement of activities
		√			Calculate the carrying amount of donated assets (financial assets or long-lived assets) to be reported in the statement of financial position.
		√			Calculate increases in net assets attributable to contributions for a nongovernmental, not-for-profit entity

H. Research and Development Costs

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Identify research and development costs and classify the costs as an expense in the financial statements.
		√			Calculate the research and development costs to be reported as an expense in the financial statements.

I. Software costs

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Identify the criteria necessary to capitalize software costs (software for internal use or sale) in the financial statements.
		√			Calculate capitalized software costs (software for internal use or sale) to be reported in the financial statements and the related amortization expense.

J. Subsequent events

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Identify a subsequent event and recall its appropriate accounting treatment
		√			Calculate required adjustments to financial statements and/or note disclosures based on identified subsequent events.
			√		Derive the impact to the financial statements and required note disclosures due to identified subsequent events.

K. Fair value measurements

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Identify the valuation techniques used to measure fair value.
		√			Use the fair value hierarchy to determine the classification of a fair value measurement.
		√			Use the fair value concepts (e.g. highest and best use, market participant assumptions, unit of account) to measure the fair value of assets and liabilities.

L. Differences between IFRS and U.S. GAAP

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
	√				Identify accounting and reporting differences between IFRS and U.S. GAAP.
		√			Determine the impact of the differences between IFRS and U.S. GAAP on the financial statements.

Area IV — State and Local Governments (5–15%)

A. State and local government concepts

Content group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
1.Conceptual framework	√				Recall the purpose and characteristics of the conceptual framework for state and local governments.
2. Measurement focus and basis of accounting	√				Recall the measurement focus and basis of accounting used by state and local governments for fund and government-wide financial reporting.
3. Purpose of funds		√			Determine the appropriate fund(s) that a state or local government should use to record its activities

B. Format and content of the financial section of the comprehensive annual financial report (CAFR)

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
1. Government-wide financial statements	√				Identify and recall basic concepts and principles associated with government-wide financial statements (e.g., required activities, financial statements and financial statement components).
		√			Prepare the government-wide statement of net position for a state or local government from trial balances and supporting documentation.
		√			Prepare the government-wide statement of activities for a state or local government from trial balances and supporting documentation.
2. Governmental funds financial statements	√				Identify and recall basic concepts and principles associated with governmental fund financial statements (e.g., required funds, financial statements and financial statement components).
		√			Prepare the statement of revenues, expenditures and changes in fund balances for the governmental funds of a state or local government from trial balances and supporting documentation.
		√			Prepare the balance sheet for the governmental funds of a state or local government from trial balances and supporting documentation.
3. Proprietary funds financial statements	√				Identify and recall basic concepts and principles associated with proprietary fund financial statements (e.g., required funds, financial statements and financial statement components).
		√			Prepare the statement of revenues, expenses and changes in fund net position for the proprietary funds of a state or local government from trial balances and supporting documentation.
		√			Prepare the statement of net position for the proprietary funds of a state or local government from trial balances and supporting documentation.
		√			Prepare the statement of cash flows for the proprietary funds of a state or local government
4. Fiduciary funds financial statements	√				Identify and recall basic concepts and principles associated with fiduciary fund financial statements (e.g., required funds, financial statements and financial statement components).
		√			Prepare the statement of changes in fiduciary net position for the fiduciary funds of a state or local government from trial balances and supporting documentation.
		√			Prepare the statement of net position for the fiduciary funds of a state or local government from trial balances and supporting documentation.
5. Notes to financial statements	√				Recall the disclosure requirements for the notes to the basic financial statements of state and local governments.
6. Management’s discussion and analysis	√				Recall the objectives and components of management's discussion and analysis in the comprehensive annual financial report for state and local governments.
7. Budgetary comparison reporting	√				Recall the objectives and components of budgetary comparison reporting in the comprehensive annual financial report for state and local governments.
8. Required supplementary information (RSI) other than management’s discussion and analysis	√				Recall the objectives and components of required supplementary information other than management’s discussion and analysis in the comprehensive annual financial report for state and local governments.
9. Financial reporting entity, including blended and discrete component units	√				Recall the criteria for classifying an entity as a component unit of a state or local government and the financial statement presentation requirements (discrete or blended).

C. Deriving government-wide financial statements and reconciliation requirements

Content  group /topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
		√			Prepare worksheets to convert the governmental fund financial statements to the governmental activities reported in the government-wide financial statements.
		√			Prepare the schedule to reconcile the total fund balances and the net change in fund balances reported in the governmental fund financial statements to the net position and change in net position reported in the government-wide financial statements.

D. Typical items and specific types of transactions and events: measurement, valuation, calculation and presentation in governmental entity financial statements

Content group / topic	Remembering and understanding	Application	Analysis	Evaluation	Representative task
1. Net position and components thereof		√			Calculate the net position balances (unrestricted, restricted and net investment in capital assets) for state and local governments and prepare journal entries.
2. Fund balances and components thereof		√			Calculate the fund balances (assigned, unassigned, nonspendable, committed and restricted) for state and local governments and prepare journal entries.
3. Capital assets and infrastructure assets	√				Identify capital assets reported in the government-wide financial statements of state and local governments.
		√			Calculate the net general capital assets balance for state and local governments and prepare journal entries (initial measurement and subsequent depreciation and amortization).
4. General and proprietary long-term liabilities	√				Identify general and proprietary long-term liabilities reported in the government-wide financial statements of state and local governments.
		√			Calculate the total indebtedness to be reported in the government-wide financial statements of a state or local government.
		√			Calculate the net general long-term debt balance for state and local governments and prepare journal entries (debt issuance, interest payments, issue premiums or issue discounts).
5. Interfund activity, including transfers		√			Prepare eliminations of interfund activity in the government-wide financial statements of state and local governments.
		√			Prepare journal entries to recognize interfund activity within state and local governments.
6. Nonexchange revenue transactions		√			Calculate the amount of nonexchange revenue to be recognized by state and local governments using the modified accrual basis of accounting and prepare journal entries.
		√			Calculate the amount of nonexchange revenue to be recognized by state and local governments using the accrual basis of accounting and prepare journal entries.
7. Expenditures and expenses		√			Calculate expenditures to be recognized under the modified accrual basis of accounting (paid from available fund financial resources) for state and local governments and prepare journal entries.
		√			Calculate expenses to be recognized under the accrual basis of accounting for state and local governments and prepare journal entries.
8. Special items	√				Identify transactions that require presentation as special items in government-wide financial statements for state and local governments.
9. Budgetary accounting and encumbrances	√				Recall and explain the types of budgets used by state and local governments.
		√			Prepare journal entries to record budgets (original and final) of state and local governments.
		√			Prepare journal entries to record encumbrances of state and local governments.
10. Other financing sources and uses		√			Calculate the amount to be reported as other financing sources and other financing uses in the governmental funds financial statements.