PocketCPA

Subsequent measurement (LCM / LC-NRV) on the FAR CPA Exam

Subsequent measurement (LCM / LC-NRV) is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.C, Inventory, 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.C, Inventory
Authoritative literature
ASC 330
Skill levels tested
Application, Analysis

Which standard covers Subsequent measurement (LCM / LC-NRV) on the CPA Exam?

Subsequent measurement (LCM / LC-NRV) is tested against ASC 330. The wider group FAR.II.C also reaches IAS 2.

At what skill level is Subsequent measurement (LCM / LC-NRV) tested?

Subsequent measurement (LCM / LC-NRV) 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 Subsequent measurement (LCM / LC-NRV) tested outside FAR?

No. Within the current blueprint the literature behind Subsequent measurement (LCM / LC-NRV) is tested in FAR only.

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 Subsequent measurement (LCM / LC-NRV) tested on the CPA Exam?

Subsequent measurement (LCM / LC-NRV) is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.C, Inventory, which sits in FAR Area II, Select Balance Sheet Accounts, at 30 to 40% of the section.