Step 5: recognition (point in time vs over time) on the FAR CPA Exam
Step 5: recognition (point in time vs over time) 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
- Skill levels tested
- Application, Analysis
Which standard covers Step 5: recognition (point in time vs over time) on the CPA Exam?
Step 5: recognition (point in time vs over time) is tested against ASC 606. The wider group FAR.III.C also reaches ASC 340, ASC 610.
At what skill level is Step 5: recognition (point in time vs over time) tested?
Step 5: recognition (point in time vs over time) 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 Step 5: recognition (point in time vs over time) 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).
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 Step 5: recognition (point in time vs over time) tested on the CPA Exam?
Step 5: recognition (point in time vs over time) 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.