Here are the 2018 CPA Exam Changes & Updates

The 2018 CPA Exam will feature a number of content updates eligible for testing on January 2, 2018 and a new and improved user interface effective April 1, 2018. This PDF document from the AICPA details all of the AICPA blueprint changes, effective in January 2018. Here’s a rundown of the upcoming CPA Exam content-related changes and the lessons that have been updated in the Wiley CPAexcel Review Course.

Financial Accounting & Reporting (FAR)

The FAR section of the CPA Exam will see the greatest number of content changes on January 2, 2018. Among the most notable updates are revisions to the Revenue Recognition standards. This is in response to changing FASB guidelines that came about due to the foundation of the U.S. economy shifting from primarily goods to more services. It also brings US GAAP into closer alignment with international accounting standards.

Pronouncement Changes:

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  • Revenue Recognition (ASU 2014-09, 2015-14, 2016-08, 2016-10, 2016-12, 2017-05, 2017-10)
  • Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01)
  • Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities (ASU 2016-14)
  • Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15)
  • Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01)
  • Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other Than Inventory (ASU 2016-16)
  • Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18)
  • Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07)
  • Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting (ASU 2017-09)

All of the above is eligible for testing starting January 2, 2018.

Wiley CPAexcel Review Course Lesson Changes:

  • The following lessons were removed from the course:
    • FAR > Select Financial Statement Accounts > Investments > IFRS Equity Method
    • FAR > Select Financial Statement Accounts > Investments > No Significant Influence
    • FAR > Select Financial Statement Accounts > Investments > Comparison—Cost, Equity, and FV Methods
    • FAR > Select Transactions > Revenue Recognition > Point of Sale and Installment Method
    • FAR > Select Transactions > Revenue Recognition > Cost Recovery and Franchise Fees
    • FAR > Select Transactions > Revenue Recognition > Deferred Revenue Principles
    • FAR > Select Transactions > Revenue Recognition > Specific Deferred Revenues
  • The following new lessons were added to the course:
    • FAR > Select Financial Statement Accounts > Investments > Investments in Equity Securities > Equity Investments at Fair Value
    • FAR > Select Financial Statement Accounts > Investments > Investments in Equity Securities > Equity Investments at Cost
    • FAR > Select Financial Statement Accounts > Investments > Investments in Debt Securities > Debt Investments at Fair Value
    • FAR > Select Financial Statement Accounts > Investments > Investments in Debt Securities > Debt Investments at Amortized Costs
    •  FAR > Select Financial Statement Accounts > Investments > Comparison – Cost, Equity, and FV Methods
    • FAR > Select Transactions > Revenue Recognition > Five Steps of Revenue Recognition
    • FAR > Select Transactions > Revenue Recognition > Determining Transaction Price
    • FAR > Select Transactions > Revenue Recognition > Allocating Transaction Price
    • FAR > Select Transactions > Revenue Recognition Accounts > Special Issues in Revenue Recognition
    • FAR > Select Transactions > Revenue Recognition > Contract Modifications and Other Considerations
  • For clarification, the following lessons were re-titled in the course:
    • Old: Contract Accounting / New: Accounting for Construction Contracts
    • Old: Cost Method and Transfers Between Classifications / New: Comparison and Transfers of Investments
    • Old:  IFRS—Investments/ New: IFRS—Investments in Equity and Debt Securities
  • The following lessons, including video, were updated in the course:
    • FAR > Conceptual Framework and Financial Reporting > Financial Accounting Standards Board (FASB) > Overview of US GAAP / Financial Accounting Standards Codification
    • FAR > Conceptual Framework and Financial Reporting > General-Purpose Financial Statements > Statement of Comprehensive Income
    • FAR > Conceptual Framework and Financial Reporting > General-Purpose Financial Statements > Statements of Cash Flows > Sources and Uses of Cash
    • FAR > Conceptual Framework and Financial Reporting > General-Purpose Financial Statements > Statements of Cash Flows >Operating, Investing, and Financing Activities
    • FAR > Conceptual Framework and Financial Reporting > General-Purpose Financial Statements > Statements of Cash Flows > Operating Cash Flows—Indirect Method
    • FAR > Conceptual Framework and Financial Reporting > Consolidated Financial Statements >  Introduction to Consolidated Financial Statements
    • FAR > Conceptual Framework and Financial Reporting > Consolidated Financial Statements >  Consolidating Process > Consolidation at Acquisition
    • FAR > Conceptual Framework and Financial Reporting > Consolidated Financial Statements >  Consolidating Process > Consolidation Subsequent to Acquisitions
    • FAR > Conceptual Framework and Financial Reporting > Consolidated Financial Statements >  Intercompany (I/C) Transactions and Balances > Intercompany (I/C) Transactions and Balances – Introduction
    • FAR > Conceptual Framework and Financial Reporting > Consolidated Financial Statements >  Intercompany (I/C) Transactions and Balances > Intercompany (I/C) Inventory Transactions
    • FAR > Conceptual Framework and Financial Reporting > Consolidated Financial Statements >  Intercompany (I/C) Transactions and Balances > Intercompany (I/C) Fixed Asset Transactions
    • FAR > Conceptual Framework and Financial Reporting > Consolidated Financial Statements >  Intercompany (I/C) Transactions and Balances > Intercompany (I/C) Bond Transactions
    • FAR > Conceptual Framework and Financial Reporting > Consolidated Financial Statements >  IFRS—Consolidations
    • FAR > Conceptual Framework and Financial Reporting > Consolidated Financial Statements >  Combined Financial Statements
    • FAR > Conceptual Framework and Financial Reporting > Consolidated Financial Statements >  Variable Interest Entities (VIEs)
    • FAR > Select Financial Statement Accounts > Cash and Cash Equivalents > Cash
    • FAR > Select Financial Statement Accounts > Cash and Cash Equivalents > Accounts Receivable—Accounting and Reporting
    • FAR > Select Financial Statement Accounts > Cash and Cash Equivalents > Uncollectible—Direct Write-off and Allowance
    • FAR > Select Financial Statement Accounts > Cash and Cash Equivalents > Allowance—Income Statement and Balance Sheet Approach
    • FAR > Select Financial Statement Accounts > Cash and Cash Equivalents > Notes Receivable
    • FAR > Select Financial Statement Accounts > Cash and Cash Equivalents > Criteria for Sale of Receivables
    • FAR > Select Financial Statement Accounts > Cash and Cash Equivalents > Factoring, Assignment, and Pledging
    • FAR > Select Financial Statement Accounts > Cash and Cash Equivalents > Notes Receivable—Impairment
    • FAR > Select Financial Statement Accounts > Investments > Introduction—Equity and Debt Investments
    • FAR > Select Financial Statement Accounts > Investments > Comparison and Transfers of Investments
    • FAR > Select Financial Statement Accounts > Investments > IFRS—Investments in Equity and Debt Security
    • FAR > Select Financial Statement Accounts > Long-Term Debt (Financial Liabilities > Distinguishing Liabilities from Equity
    • FAR > Select Financial Statement Accounts > Business Combinations > Introduction to Business Combinations
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Introduction and Definitions
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Import Transaction
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Export Transaction
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Foreign Currency Hedges > Introduction to Forward and Option Contracts
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Foreign Currency Hedges > Natural (Economic) Hedge
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Foreign Currency Hedges > Hedging Forecasted Transactions and Firm Commitment
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Foreign Currency Hedges > Hedging Asset, Liability, Available-for-Sale, or Foreign Operations
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Foreign Currency Hedges > Speculation and Summary
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Conversion of Foreign Financial Statements > Introduction to Conversion of Foreign Financial Statements
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Conversion of Foreign Financial Statements > Conversion Using Translation
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Conversion of Foreign Financial Statements > Conversion Using Remeasurement
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Conversion of Foreign Financial Statements > Remeasurement, Translation, and IFRS
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Not-For-Profit Organizations > Introduction to Types of Not-For-Profit Entities and Standard Setting
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Not-For-Profit Organizations > Financial Reporting
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Not-For-Profit Organizations > Donations, Pledges, Contributions, and Net Assets
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Not-For-Profit Organizations > Special Issues—Recent Developments
    • FAR > Select Financial Statement Accounts > Foreign Currency Denominated Transactions > Special Industries: Healthcare and Colleges / Colleges and Universities

Auditing & Attestation (AUD)

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The AICPA did not add or delete content from the AUD section’s blueprint but it did update 12 task statements accordance with SAS 130, An Audit of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statements.

Pronouncement Changes:

  • SAS 132, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern; eligible for testing beginning January 2, 2018.
  • SAS 133, Auditor Involvement With Exempt Offering Documents; eligible for testing beginning July 1, 2018.
  • PCAOB AS 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion (PCAOB Release 2017-01); eligible for testing beginning July 1, 2018.

Wiley CPAexcel Review Course Lesson Changes:

  • For clarification, the following lesson was re-titled in the course:
    • Old: Reporting on Internal Control in an Integrated Audit / New: AICPA on Reporting on Internal Control in an Integrated Audit
  • The following lessons, including video, were updated in the course:
    • AUD > Ethics, Professional Responsibilities, and General Principles > AICPA Code of Professional Conduct > Members in Public Practice > MIPPs Introduction and Conceptual Framework
    • AUD > Assessing Risk and Developing a Planned Response > Financial Statement Audits > Different Types of Engagements
    • AUD > Assessing Risk and Developing a Planned Response > Planning Activities > Pre-Engagement Planning Issues
    • AUD > Assessing Risk and Developing a Planned Response > Planning Activities > Using the Work of a "Specialist"
    • AUD > Assessing Risk and Developing a Planned Response > Planning Activities > Required Communications with those Charged with Governance
    • AUD > Performing Further Procedures and Obtaining Evidence > Audit Evidence: Concepts and Standards > The Nature of Audit Evidence
    • AUD > Performing Further Procedures and Obtaining Evidence > Audit Evidence: Concepts and Standards > Assertions and Types of Audit Procedures
    • AUD > Performing Further Procedures and Obtaining Evidence > Audit Evidence: Concepts and Standards > Going Concern Issues
    • AUD > Forming Conclusions and Reporting > Audit Reports > Qualified for Scope Limitation
    • AUD > Forming Conclusions and Reporting > Audit Reports > Qualified for Misstatement

Regulation (REG)

The blueprint for the REG section saw only a minor changes with “Treasury Regulations” replacing “Regulations” in the list of references.  

Pronouncement Changes:
The upcoming content changes will be dependent on the legislature, in particular, health care or tax reform, likely eligible for testing in the second half of 2018.

Wiley CPAexcel Review Course Lesson Changes:

  • The following lesson, including video, was updated in the course:
    • REG > Business Law > Government Regulation of Business > Federal Securities Regulation > Exempt Transactions and Securities

Business Environment & Concepts (BEC)

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There were no changes to the BEC section’s blueprint for 2018.

Pronouncement Changes:
The COSO Enterprise Risk Management Framework–Integrating with Strategy and Performance; eligible April 1, 2018.

Wiley CPAexcel Review Course Lesson Changes:

  • The following lessons, including video, were updated in the course:
    • BEC > Information Technology > Emerging Technologies > Bitcoin and Blockchain
    • BEC > Information Technology > Emerging Technologies > Machine Learning and Artificial Intelligence
    • BEC > Information Technology > Information Security/Availability >  Protection of Information > Managing Cyber Risk: Part II—A Framework for Cybersecurity

Free Webinar on 2018 CPA Exam Changes

Want to know what the new 2018 CPA Exam format and content changes mean for you and your studies?

Join Denise Probert, Wiley’s Director of Learning and Curriculum Strategy, for a free hour-long webinar, 2018 CPA Exam Changes: Need to Know, now available on demand. Denise breaks down exactly what the big changes to FAR and AUD are, what they mean, and how you can best prepare for the 2018 CPA Exam. There is also plenty of time devoted to questions and answers from the audience.

Register to view the webinar on-demand.

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