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Capitalization, depreciation & disposal on the FAR CPA Exam

Capitalization, depreciation & disposal is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.D, Property, plant & equipment, 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.D, Property, plant & equipment
Authoritative literature
ASC 360
Skill levels tested
Application, Analysis

Which standard covers Capitalization, depreciation & disposal on the CPA Exam?

Capitalization, depreciation & disposal is tested against ASC 360. The wider group FAR.II.D also reaches ASC 250, ASC 410, ASC 835.

At what skill level is Capitalization, depreciation & disposal tested?

Capitalization, depreciation & disposal 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 Capitalization, depreciation & disposal tested outside FAR?

Yes. The same literature is tested outside FAR: ASC 360 in FAR.II.F (Intangible assets & goodwill); ASC 360 in BAR.II.A (Indefinite-lived intangible assets, including goodwill).

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 Capitalization, depreciation & disposal tested on the CPA Exam?

Capitalization, depreciation & disposal is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.D, Property, plant & equipment, which sits in FAR Area II, Select Balance Sheet Accounts, at 30 to 40% of the section.