Bonds, discount/premium & effective interest on the FAR CPA Exam
Bonds, discount/premium & effective interest is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.H, Long-term debt & financial 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.H, Long-term debt & financial liabilities
- Authoritative literature
- ASC 470, ASC 835
- Skill levels tested
- Application, Analysis
Which standard covers Bonds, discount/premium & effective interest on the CPA Exam?
Bonds, discount/premium & effective interest is tested against ASC 470 and ASC 835. The wider group FAR.II.H also reaches ASC 480.
At what skill level is Bonds, discount/premium & effective interest tested?
Bonds, discount/premium & effective interest is tested at 2 skill levels: Application (applying a rule to a fact pattern, which is where most simulations sit), Analysis (working across several concepts at once, which is simulation territory).
Is Bonds, discount/premium & effective interest tested outside FAR?
Yes. The same literature is tested outside FAR: ASC 835 in FAR.II.D (Property, plant & equipment); ASC 835 in FAR.II.G (Payables & accrued liabilities).
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 Bonds, discount/premium & effective interest tested on the CPA Exam?
Bonds, discount/premium & effective interest is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.H, Long-term debt & financial liabilities, which sits in FAR Area II, Select Balance Sheet Accounts, at 30 to 40% of the section.