Question 1

What is the difference between FAR and AFAR?

Accepted Answer

FAR covers basic financial reporting standards while AFAR deals with more complex topics like business combinations, consolidated financial statements, government accounting, and specialized industries. Both have 70 MCQs with 30% theory and 70% problem-solving.

Question 2

Is AFAR harder than FAR?

Accepted Answer

AFAR is generally considered more challenging as it requires a solid foundation in FAR concepts. Topics like consolidation, foreign currency, and government accounting require additional study and computational practice.

Question 3

How should I prepare for AFAR?

Accepted Answer

Master FAR first, then focus on consolidation procedures, elimination entries, and government accounting standards (PPSAS). Since 70% is problem-solving, practice complex problems with multiple subsidiaries and intercompany transactions.

Question 4

What PFRS standards are covered in AFAR?

Accepted Answer

AFAR covers PFRS 3 (Business Combinations), PFRS 10 (Consolidated Financial Statements), PFRS 11 (Joint Arrangements), PAS 28 (Investments in Associates), and PAS 21 (Foreign Currency). Government accounting uses Philippine Public Sector Accounting Standards (PPSAS).

Question 5

When is the AFAR exam scheduled?

Accepted Answer

AFAR is scheduled on Day 3 (the final day) of the CPA board exam during the afternoon (PM) session. It is taken after FAR which is in the morning session.

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