PocketCPA

Loss & gain contingencies on the FAR CPA Exam

Loss & gain contingencies is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.III.B, Contingencies & commitments, 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.B, Contingencies & commitments
Authoritative literature
ASC 450
Skill levels tested
Application, Analysis

Which standard covers Loss & gain contingencies on the CPA Exam?

Loss & gain contingencies is tested against ASC 450. The wider group FAR.III.B also reaches ASC 210, ASC 250, ASC 410, ASC 440, ASC 460, ASC 606, ASC 855.

At what skill level is Loss & gain contingencies tested?

Loss & gain contingencies 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 Loss & gain contingencies tested outside FAR?

Yes. The same literature is tested outside FAR: ASC 450 in FAR.II.G (Payables & accrued liabilities); ASC 450 in FAR.III.I (Subsequent events).

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 Loss & gain contingencies tested on the CPA Exam?

Loss & gain contingencies is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.III.B, Contingencies & commitments, which sits in FAR Area III, Select Transactions, at 25 to 35% of the section.