Why International Financial Reporting Standards (IFRS) Will Not Be in Regulations (REG) in Early 2011
The American Institute of Certified Public Accountants (AICPA) continues to reveal hints on what changes will be made to the CPA Exam starting in January 2011 but they are doing so by using indefinite terms. AICPA uses terminology such as “another possible topic will be” and “students may be asked” to indicate topics which have the greatest chance of being introduced. You may wish to study those topics just in case they show up on your 2011 exam.
There is an interesting change to what we thought you were going to be tested on: there will be no questions on IFRS in REG for at least the early part of 2011. Why? No one has been able to estimate how taxes will be affected by the way in which US corporations use IFRS. Heads up!
Once this issue is settled, to the satisfaction of AICPA, questions on IFRS will be merged into REG in 2011.
As of May 2010, it is likely that these topics will appear magically on the 2011 CPA Exam.
Auditing & Attestation (AUD)
Do you understand how the AICPA Codification of Statements on Auditing Standards, AU Appendix B, Analysis of International Standards on Auditing applies to business? Do you know what role the International Auditing and Assurance Board (IAASB) will play in establishing International Standards on Auditing (ISA)? Do you know what differentiates ISA and U.S. Auditing Standards? Do you know what role the International Ethics Standards Board for Accountants (IESBA) will play in establishing requirements for the Code of Ethics for Professional Accountants of the International Federation of Accountants (IFAC)? Replace the one long simulation in the current format with several short Task-Based Simulations (TBS) in 2011. Double the weight of Simulations from 20% in 2010 to 40% in 2011. Add one new research task format. Delete Written Communications.
Business Environment & Concepts (BEC) Do you understand the possible effects of globalization on the business environment? Can you explain the underlying economic substance of transactions? Add Written Communications, which will be 15% of your score. Delete 18 Multiple Choice Questions (MCQ) or 15%. Delete some of the content on IT. Add questions on project management.
Financial Accounting & Reporting (FAR)
What are the differences between financial statements which are prepared using generally accepted accounting principals (GAAP) standards vs. those that are prepared using IFRS? Can you explain how the first-time integration of IFRS standards will affect financial reporting, disclosures and presentation? Replace the one long simulation in the current format with several short Task-Based Simulations (TBS). Double the weight of Simulations from 20% in 2010 to 40% in 2011. Add one new research task format. Delete Written Communications. Regulation (REG) Replace the one long simulation in the current format with several short Task-Based Simulations (TBS). Double the weight of Simulations from 20% in 2010 to 40% in 2011. Add one new research task format. Delete Written Communications. Delete 18 Multiple Choice Questions (MCQ) from BEC and REG;
At CPAexcel, the countdown to 2011 has begun. CPAexcel is the only CPA Exam which never expires, you can order it now and study for the current 2010 CPA Exam Review Prep. If you have not passed all four sections by the end of 2010, you will have access to the new 2011 CBT-e content and functionality for free!