Equity- vs liability-classified awards; expense on the FAR CPA Exam
Equity- vs liability-classified awards; expense is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.III.H, Stock compensation, 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.H, Stock compensation
- Authoritative literature
- ASC 718
- Skill levels tested
- Application, Analysis
Which standard covers Equity- vs liability-classified awards; expense on the CPA Exam?
Equity- vs liability-classified awards; expense is tested against ASC 718. The wider group FAR.III.H also reaches ASC 805.
At what skill level is Equity- vs liability-classified awards; expense tested?
Equity- vs liability-classified awards; expense 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 Equity- vs liability-classified awards; expense tested outside FAR?
Yes. The same literature is tested outside FAR: ASC 718 in FAR.II.I (Equity); ASC 718 in BAR.II.D (Stock compensation (share-based payments)).
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 Equity- vs liability-classified awards; expense tested on the CPA Exam?
Equity- vs liability-classified awards; expense is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.III.H, Stock compensation, which sits in FAR Area III, Select Transactions, at 25 to 35% of the section.