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AFAR STUDY PLAN

May 2019 Exam Recap

1. The exam was composed of 70 theory and computation questions. The

questions were mostly computation questions that are linked to one another.

2. Key is to practice solving as many problems as you can.

3. Topic focus: Foreign currency, cost accounting, installment accounting,

partnership accounting, construction accounting, and joint arrangements.

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ADVANCED FINANCIAL ACCOUNTING & REPORTING

Number of Date Date

TOPIC Hours Started Ended
( New) Revenue from contracts with customers 10
Five Steps Model Framework 4
Other revenue recognition issues 4
FS presentation 2

Partnership Accounting 25
Formation 6
Operations 6
Dissolution and changes in ownership 6
Liquidation 7

Installment sales 6

Franchise accounting 4
Determination of revenue, costs and gross profit 2
FS presentation 2

Construction accounting 8
Determination of revenue, costs, and profit 3
Gross amount due from/to customers 3
FS presentation 2

Home Office & Branch Accounting 7

Transactions on the books of head office and branch 1
Reconciliation of reciprocal accounts 1
Preparation of individual and combined FS 1
Special procedures in the home office and branch operations 1
Accounting for agency transactions 2

Business Combination 16

Separate FS 16
Investment in subsidiary 8
FS presentation 8
Consolidated FS 16
Date of Acquisition
After Acquisition
Intercompany Profit Transactions - Inventories
Intercompany Profit Transactions - Plant Assets
Intercompany Profit Transactions - Bonds
Changes in Ownership Interests
Indirect and Mutual Holdings
Subsidiary Preferred Stock, Consolidated EPS, and Taxation

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Number of Date Date

TOPIC Hours Started Ended
Foreign Currency Transactions and Translations 32
Without hedging activities 8
Hedging activities 8
Translation from functional currency to presentation currency 8
Remeasurement from a foreign currency to the functional 8
currency

Not for Profit Organizations 2

Voluntary health and welfare organizations .5
Hospitals and other health organizations .5
College and universities .5
Other non-profit organizations .5

Government Accounting 8
Concepts in government accounting 2
Budget process 2
Journal entries 4

Corporate Liquidation 4
Statement of affairs 1
Statement of deficiency 1
Statement of realization and liquidation 1
Order of priority of claims 1

Joint Arrangements 6
Joint operations 2
Joint venture 2
SME 2

Insurance Contracts 2
Build, Operate and Transfer 2

TOTAL HOURS 160

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COST ACCOUNTING

Number of Date Date

TOPIC Hours Started Ended
Cost Accumulation 26
Nature and classification of costs 6
Analysis of cost behavior (variable, fixed, semi-variable, step-
cost) 8
Splitting mixed cost (high-low, scatter graph, least-squares
regressions 12

Strategic Cost Management 14

Total quality management 2
Just-in-time production system 2
Continuous improvement 2
Business process re-engineering 2
Kaizen costing 2
Product life costing 2
Target Costing 2

Job Order Costing 10

Process Costing 10
Service Cost 10
Activity Based Costing 10
Joint & By Product Costing 10
Standard Costing 10
Variable Costing
Absorption Costing
TOTAL HOURS 100

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