PocketCPA

Accruals, compensated absences & exit costs on the FAR CPA Exam

Accruals, compensated absences & exit costs is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.G, Payables & accrued liabilities, which sits in FAR Area II, Select Balance Sheet Accounts, at 30 to 40% of the section.

Section
FAR, Financial Accounting and Reporting
Area
FAR.II, Select Balance Sheet Accounts, 30 to 40% of the section
Group
FAR.II.G, Payables & accrued liabilities
Authoritative literature
ASC 405, ASC 420, ASC 710
Skill levels tested
Remembering, Application

Which standard covers Accruals, compensated absences & exit costs on the CPA Exam?

Accruals, compensated absences & exit costs is tested against ASC 405 and ASC 420 and ASC 710. The wider group FAR.II.G also reaches ASC 450, ASC 460, ASC 712, ASC 835.

At what skill level is Accruals, compensated absences & exit costs tested?

Accruals, compensated absences & exit costs is tested at 2 skill levels: Remembering (recall and understanding, which is multiple choice territory), Application (applying a rule to a fact pattern, which is where most simulations sit).

Is Accruals, compensated absences & exit costs tested outside FAR?

No. Within the current blueprint the literature behind Accruals, compensated absences & exit costs is tested in FAR only.

Area, group, topic, standard and skill levels are the AICPA published blueprint. Pass rates are the AICPA published candidate pass rates for 2026 through Q2, read from AICPA & CIMA on 2026-08-17. The AICPA publishes them quarterly. Where the same standard is tested outside FAR is PocketCPA's own mapping.

Every FAR blueprint area, group and topic · Which standards the CPA Exam tests · FAR pass rate and format

Common questions

Is Accruals, compensated absences & exit costs tested on the CPA Exam?

Accruals, compensated absences & exit costs is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.G, Payables & accrued liabilities, which sits in FAR Area II, Select Balance Sheet Accounts, at 30 to 40% of the section.