PocketCPA

Contract costs, principal vs agent & presentation on the FAR CPA Exam

Contract costs, principal vs agent & presentation is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.III.C, Revenue recognition, which sits in FAR Area III, Select Transactions, at 25 to 35% of the section.

Section
FAR, Financial Accounting and Reporting
Area
FAR.III, Select Transactions, 25 to 35% of the section
Group
FAR.III.C, Revenue recognition
Authoritative literature
ASC 606, ASC 340
Skill levels tested
Application, Analysis

Which standard covers Contract costs, principal vs agent & presentation on the CPA Exam?

Contract costs, principal vs agent & presentation is tested against ASC 606 and ASC 340. The wider group FAR.III.C also reaches ASC 610.

At what skill level is Contract costs, principal vs agent & presentation tested?

Contract costs, principal vs agent & presentation 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 Contract costs, principal vs agent & presentation tested outside FAR?

Yes. The same literature is tested outside FAR: ASC 606 in FAR.III.B (Contingencies & commitments); ASC 606 in BAR.II.C (Revenue recognition); ASC 340 in BAR.II.C (Revenue recognition).

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 Contract costs, principal vs agent & presentation tested on the CPA Exam?

Contract costs, principal vs agent & presentation is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.III.C, Revenue recognition, which sits in FAR Area III, Select Transactions, at 25 to 35% of the section.