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CPA BAR Exam: Pass the CPA BAR Discipline Section

CPA BAR Exam: Pass the CPA BAR Discipline Section

BAR is one of the three new CPA Discipline sections added to the US CPA Exam in 2024. Since the implementation of the CPA Evolution, to pass the CPA Exam, you now must pass three Core CPA sections as well as one of three Discipline sections. Candidates can take the Business Analysis and Reporting (BAR) exam or two others to fulfill the CPA Discipline requirement.

So, in this post, we review the content and structure of the BAR section of the CPA Exam. We also have some tips for determining if you should take BAR or another CPA Discipline section. And, of course, we have some coupons for CPA Exam sections to share, too!

What is the BAR CPA Exam?

In addition to the three mandatory Core sections that all CPA candidates must pass, the CPA Exam now consists of Discipline sections, too. The CPA Discipline parts evaluate your deeper comprehension of accounting concepts while building on the foundations of the Core exam.

All candidates must pass the three Core exams. However, you only need to select one of the three available Discipline sections: BAR, ISC, and TCP.

CPA Core Exam Sections

AUD: Auditing and Attestation
FAR: Financial Accounting and Reporting
REG: Taxation and Regulation

CPA Disciplines (Pass 1 of 3 sections)

BAR: Business Analysis and Reporting
ISC: Information Systems and Controls
TCP: Tax Compliance and Planning

BAR Section for CPA Exam: What does it cover?

The CPA Exam’s Business Analysis and Reporting (BAR) section assesses candidates’ abilities in specific accounting areas, including risk management and financial analysis. The exam also has a particular emphasis on the use of data and technology in planning. The BAR questions are related to business analysis as well as technical accounting/reporting and issues related to state and local governments.

Why BAR?

The AICPA developed the BAR CPA Exam as an extension of the Core FAR section as part of the recently reorganized CPA Exam structure. It tests advanced concepts and abilities and evaluates them in their most basic form during FAR. Basically, BAR gives CPA candidates who want to specialize in technical accounting, applied research, and financial analysis the chance to showcase their knowledge and develop an accounting career that uses these skill sets.

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Questions on the BAR CPA Exam

If you choose to take the BAR Exam, you will have 4 hours to answer 50 MCQs (multiple-choice questions). In addition, you’ll have to tackle 7 TBSs (task-based simulations, which present realistic scenarios and ask you to solve accounting problems).

The BAR questions are divided among 5 “testlets,” which are short segments of the exam. Here is the breakdown of the content:

Business Analysis 40-50%
Technical Accounting and Reporting 35-45%
State and Local Governments 10-20%

Syllabus for the CPA BAR Exam

The BAR syllabus includes a range of topics, from technical accounting and reporting to financial statement analysis. The BAR exam also tests on municipal, state, and federal accounting and reporting issues. The AICPA has published the following syllabus – the CPA BAR exam could include questions on any of these topic areas.

1. Business Analysis

Analysis of current and historical data
- Analysis of financial statements
- Measures of performance (including non-financial and non-GAAP)
- Cost accounting as well as managerial accounting
Using data for prospective analyses
- Budgeting
- Projections and forecasting
- Using financial valuation models for investment alternatives
- Risk management
- Influences on business (including markets and economic influences)
- Capital structure

2. Technical Accounting & Reporting

Technical accounting and reporting issues related to indefinite-lived intangible assets
Software (including internally developed software)
Recognition of revenue
Stock compensation
Business combinations
Development costs
Research costs
Consolidated financial statements
Hedge accounting
Derivatives
Leases
Topics related to reporting requirements of public companies
Employee benefit plans

3. State & Local Governments

Annual comprehensive financial reports, including the content/format of the financial section
- Financial statements for governments, governmental funds, proprietary funds, and fiduciary funds
- Management’s discussion and analysis
- Reporting of budgetary comparison
- Issues related to RSI (Required Supplementary Information)
Reconciliation requirements and financial statements for government entities, including measurement, valuation, calculation, and presentation
- Net position
- Fund balances
- Capital and infrastructure assets
- General and proprietary long-term liabilities
- Inter-fund activity, including transfers
- Non-exchange revenue transactions
- Expenditures and expenses
- Budgetary accounting and encumbrances

What’s a Passing Score for BAR?

A score of 75 or above is required to pass the BAR CPA Exam, which has a pointing scale from 0 to 99. Of those 99 possible points, half of the weighted score comes from the 50 MCQs, and the other half comes from the task-based simulation (TBS) questions.

What’s more, the AICPA weights the questions according to difficulty. As a result, the more complex questions are worth more points than easier ones, even though the AICPA doesn’t technically use a curve for grading the CPA Exam.

Additionally, because you must respond to several questions in each scenario, you can actually receive half credit on the TBSs! Your final BAR score is totaled on a scale of 0 to 99 once your exam has been evaluated and the weights have been applied.

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Who Should Take the BAR Discipline?

Before you choose which CPA Exam Discipline section to tackle, keep in mind this one important thing: you can practice professionally in any CPA niche, regardless of the discipline section you select. In other words, try not to overburden yourself with this choice. Instead, select the discipline that interests you and you feel confident in passing – because passing the CPA Exam is what matters most.

Does My Accounting Career Path Require the CPA BAR Exam?

If you like analytics and reporting, researching and implementing rules, and analyzing financial records to gather information and make decisions, the BAR discipline might be for you.

In other words, you might excel in the BAR section if you:

Already have experience in financial accounting
Are a recent university graduate (or a current student), and you remember a lot from your advanced financial accounting courses
Feel comfortable with the FAR questions, too

CPA BAR Exam Discounts

Check out our list of CPA Exam discounts to find deals on study materials for the CPA BAR exam.

FAQs: BAR CPA Exam

What Is a Passing Score for BAR?

Candidates must receive a score of 75 or more to pass all sections, including BAR, which are scored on a scale of 0 to 99. The MCQs and TBSs account for 50% of the final score.

What Is the Pass Rate for BAR?

Data on student pass rates is only now being gathered and has not yet been released to the public because the CPA Discipline Exams (including the BAR) were only introduced in January 2024. However, only about 50% of students who take a portion for the first time pass the CPA exam. Still, though, candidates who study with a CPA Exam review course have higher chances of passing on their first try.