CPA FAR: Not-for-profit and government reporting
Blueprint I.B, I.C · Area I, Financial Reporting · 30–40% of FAR
Ten FAR questions on not-for-profit and government reporting, untimed, with a reason for every answer option.
Or take the full FAR mock examHow does a not-for-profit entity report its investments in equity securities with readily determinable fair values?
Not-for-profit and government reporting on CPA FAR
FAR tests financial reporting for nongovernmental not-for-profit entities in detail and state and local government concepts at a foundational level (detailed government reporting is in BAR). Expect net asset classification, contributions, restrictions and the two bases of government reporting.
- Blueprint groups
- I.B, I.C
- Share of the section
- Area I, Financial Reporting: 30–40%
- Our drill
- 10 questions from 12 on this topic, untimed, with a reason for every option; one free attempt, unlimited with a pass
What to know
- NFPs report two classes of net assets: with donor restrictions and without donor restrictions (ASC 958-210-45-1).
- A promise to give is conditional when it has both a barrier and a right of return or release; it is recognized only when the barrier is overcome (ASC 958-605-25-11 and 25-13).
- Contributed services are recognized only if they create or enhance nonfinancial assets, or require specialized skills that the entity would otherwise purchase (ASC 958-605-25-16).
- Every NFP presents an analysis of expenses by function and by nature in one location (ASC 958-720-45-15).
- Government-wide statements use the economic resources focus and accrual basis; governmental funds use the current financial resources focus and modified accrual basis (GASB Statement 34).
- Under modified accrual, property taxes are revenue for the year they are levied for, to the extent collected during the year or within about 60 days after year-end (GASB Statement 33; NCGA Interpretation 3).
Test yourself on not-for-profit and government reporting
Ten FAR questions on not-for-profit and government reporting, untimed, with a reason for every answer option.
Or take the full FAR mock examCommon questions
How much of the FAR section is not-for-profit and government reporting?
It sits in Blueprint Area I (I.B, I.C). The AICPA weights whole areas, not single topics; see the area’s range on the FAR page. Our 50-question mock draws each area at the middle of its range.
Are these real FAR questions?
No. The AICPA does not release live exam questions. These are original practice questions written to the published 2027 CPA Exam Blueprints, with a reason for every answer option and the standard or code section behind the key.
More FAR topics
- Financial statements, disclosures and ratiosdrill
- Cash, receivables, inventory, PP&E, intangibles and investmentsdrill
- Payables, debt and equitydrill
- Revenue recognition, lessee accounting and income taxesdrill
- Accounting changes, contingencies, fair value and subsequent eventsdrill
FAR full mock exam: 4 hours, 5 testletsFAR task-based simulations
Blueprint and exam facts checked November 2026: AICPA: Learn what is tested on the CPA Exam (Blueprints effective January 1, 2027) · AICPA: CPA Exam score release and testing windows · NASBA: CPA Exam FAQ · Virginia Board of Accountancy: CPA Exam fees.
Original independent practice questions written to the AICPA CPA Exam Blueprints. Not affiliated with or endorsed by the AICPA or NASBA.