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Business Analysis and Reporting

  • Introduction to Business Analysis and Reporting
  • Financial Statement Analysis
  • Prospective Analysis and Forecasting
  • Capital Structure and Valuation
  • Financial Valuation Methods
  • Risk Management and Economics
  • Advanced Revenue and Intangibles
  • Stock Compensation and Business Combinations
  • Advanced Consolidations
  • Derivatives and Hedging
  • State and Local Government Reporting
  • Internal-Use Software and Cloud Computing
  • Advanced Lease Transactions
  • Employee Benefit Plans
  • Fund-to-Government-Wide Reconciliation
  • Interfund Transactions
1Blueprint→2Lesson→3Framework→4Practice

Introduction to Business Analysis and Reporting

Learning Objectives

  • Understand the purpose and scope of the BAR discipline section
  • Identify the major content areas tested in business analysis and reporting
  • Recognize how BAR differs from the core FAR section
  • Distinguish between financial analysis, technical accounting, and governmental reporting topics

What is the BAR Section?

Business Analysis and Reporting is one of three discipline sections introduced under the 2024 CPA Evolution model. Candidates choose one discipline section in addition to the three core sections (AUD, FAR, REG). BAR is the natural choice for candidates pursuing careers in financial reporting, corporate finance, or advisory.

BAR builds on FAR by going deeper into financial analysis, valuation, complex transactions, and advanced reporting. Where FAR tests your ability to account for transactions, BAR tests your ability to analyze financial data, apply advanced accounting standards, and evaluate business decisions.

Key Areas of the BAR Section

The BAR section is organized around three content areas:

  1. Business Analysis (40-50%) — Financial statement analysis using ratios and trends, prospective analysis and forecasting, capital structure decisions, valuation methods (DCF, DDM, comparable analysis), and risk management concepts.

  2. Technical Accounting and Reporting (35-45%) — Advanced revenue recognition, stock-based compensation (ASC 718), business combinations and consolidations (ASC 805), derivatives and hedging (ASC 815), and complex financial instruments.

  3. State and Local Government Concepts (10-20%) — Advanced governmental accounting including GASB reporting standards, fund structures, capital asset reporting, and differences between GASB and FASB frameworks.

How BAR Differs from FAR

While FAR covers the fundamentals of financial reporting, BAR expects you to go further:

  • FAR asks: "How do you account for a lease?" BAR asks: "How does lease classification affect financial ratios and covenant compliance?"
  • FAR covers basic consolidation mechanics. BAR covers VIEs, step acquisitions, and intercompany profit elimination in depth.
  • FAR introduces governmental accounting. BAR tests advanced GASB concepts and comparisons with FASB.

BAR is often chosen by candidates targeting public accounting, controllership, or CFO-track roles. The analytical and valuation skills tested here are directly applicable to financial advisory and corporate finance work.

Key Terms

  • WACC — Weighted Average Cost of Capital, used to discount future cash flows in valuation and capital budgeting decisions
  • DCF — Discounted Cash Flow analysis, a valuation method that estimates the present value of future cash flows
  • Derivative — A financial instrument whose value is derived from an underlying asset, rate, or index (e.g., options, futures, swaps)
  • Business combination — A transaction in which one entity obtains control of another, accounted for under ASC 805 using the acquisition method

Step 3: Drill the mental model

Download the study framework

Concept maps, decision trees, and formulas for Business Analysis and Reporting.

Financial Statement Analysis →