Troubled debt & modifications on the FAR CPA Exam
Troubled debt & modifications is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.H, Long-term debt & financial liabilities, 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.H, Long-term debt & financial liabilities
- Authoritative literature
- ASC 470
- Skill levels tested
- Application, Analysis
Which standard covers Troubled debt & modifications on the CPA Exam?
Troubled debt & modifications is tested against ASC 470. The wider group FAR.II.H also reaches ASC 480, ASC 835.
At what skill level is Troubled debt & modifications tested?
Troubled debt & modifications 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 Troubled debt & modifications tested outside FAR?
No. Within the current blueprint the literature behind Troubled debt & modifications 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 Troubled debt & modifications tested on the CPA Exam?
Troubled debt & modifications is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.H, Long-term debt & financial liabilities, which sits in FAR Area II, Select Balance Sheet Accounts, at 30 to 40% of the section.