All you need to know about the CPA Exam Changes?

Every year, and sometimes twice a year, the AICPA updates and publishes the CPA Exam Blueprints, a document clarifying what is tested on the CPA Exam, as well as the skills (for example analysis) and tasks (for example build up a detailed engagement plan) for each content topic (for example Planning an Engagement). The Blueprints likewise incorporate scoring weights assigned to each content area. These Blueprints can be utilized as the base to your investigations, and you can build off it with a CPA Exam Review. 

Every CPA Exam section has its segment on the proposal detailing the minimum level of knowledge and skills you'll have to pass the CPA exam.

Recently, the AICPA released a new set of Blueprints, which will take effect on July 1, 2019, and incorporate changes to AUD, BEC, and REG. While these particular changes don't affect the CPA Study Material and scope of content accessible for testing, it does include and clarify skills expectations every exam.

CPA Exam Changes Effective July 1, 2020: 

The third quarter will see a continuous testing model added to the CPA Exam first-time.

Continuous Testing

• Under the Continuous testing model, competitors will be able to take the Exam all year, without restrictions – with the only exception being while they wait to get scores from earlier attempts of a similar area or when there is a significant change to the Exam. This additionally implies there will be no black out windows, since this model will replace the current CPA Exam testing Window model, which currently only allows candidates to test during assigned time frames each calendar quarter.

Significant change coming to Financial Accounting and Reporting (FAR):

• goodwill impairment (ASC 350)

• Organizations will just apply one step to the evaluation of goodwill impairment rather than the previously required two-step impairment exam.

• If the inferred fair value of the reporting unit is below the carrying value, the body will now recognize a misfortune for the difference, with the misfortune being perceived not to exceed the total generosity allocated to the reporting unit.

• Before that test organizations, despite everything, must carry out the qualitative test of impairment at least yearly to decide whether the quantitative analysis is even important.

Minor Changes and Newly Testable Materials in Financial Accounting and Reporting (FAR) will include:

• Credit Losses, Disclosure of Fair Value Measurements (GASB 87)

• Credit Losses (ASC 326), applying to public bodies

• Rent Modifications (ASC 842) is deferred for most nonpublic bodies, with the exception being:

• A public business entity

• A not-revenue driven entity that has issued, or is a conduit bond obligor for, securities that are traded, cited, or listed on a trade or an over-the-counter market

• A employee advantage plan that files financial statements with the U.S. Securities and Exchange Commission

The updates to the exam have primarily been updates to skill level statements. Applicants should review the updated skill level statements to assure they're ready to complete exam questions based on the skills required in these statements.

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Lombard, IL 60148

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