Hi everyone,
TGIF! The weekend is here! Hooray!
So this is my second posting about the 2011 exam changes and if you recall, in my first posting I wrote about the significant changes to the structure and the time for each section. In this posting I’m going to be concentrating on the task-based simulations; the newly adopted FASB Accounting Standard Codifications that must be used for the research tasks; and the shocking score release process for the first three testing windows in 2011.
Task-Based Simulations (TBS)
In my opinion the simulations are by far the single-most affected portion of the exam. With this new exam, there will no longer be two simulation testlets; now there will only be one testlet with several task-based simulations (TBS). What does that mean though?
In the old exam style you were typically given one long “case-study” type question where you were given a set of facts and then asked to use those facts to answer multiple “tabs” worth of questions. Now, with the 2011 changes, you will be given 6-7 independent, shorter scenarios each with their own facts and their demands.For FAR, REG, and AUD each will be short problems you will need to work through. In BEC, on the otherhand, you will have only 4-5 writing tasks only to complete.
Also, since there’s only one testlet of TBS, you can move through each simulation at your own pace and do not have to worry about finishing the first tab before it’s closed out (like in the old exam format).
I caution you, though. With the new format, the AICPA can now test more information and many more topics than ever before. And if that wasn't enough, 2-3 questions/scenarios will be on a test basis and will not be graded.
FASB Accounting Standard Codifications (ASC)
First of all, what are the ASC? The codifications are the new, superseding, authoritative, generally accepted accounting principles (GAAP) literature released by the FASB in July 2009. This is the single highest source of GAAP in existence and combines the volumes of pervious pronouncements into a single, easy-to-navigate research tool. This isn't to significant of a change for those first or second year accountants, but for those candidates with some practical experience, they may find this a bit tricky because they may have been more familiar with the old pronouncements. The functionality of the “google search” will not change, just what you are searching through is different. Recall FAS 109, accounting for income taxes? Well it is now codified as ASC 740-10, so while we don’t need to know that by memory, we’ll need to know how to search the codifications for topics in it.
As it relates to the exam, note that 1 tab in every TBS for FAR, REG, and AUD will have a research question that you will need to use the ASC for.
*NEWS FLASH* Score release process for windows 1-3 of 2011
In late October 2010, the AICPA made a startling announcement about score releases for the first three testing windows of 2011. If you test in any of these months (January/February, April/May, or June/July), you can expect one score release per window, which will be at the end of the last month of each window (March, June, or September). What does that translate to though? That means that if you take an exam on January 4, 2011, you should not expect your score until March 15-30, 2011 (a full 2.5 months later!).
Furthermore, if there’s only going to be one score release per quarter, the number of people taking exams during the last month of the window is going to skyrocket! [Logically speaking, if time permitted, why would you want to take your exam in January when you won’t get your score until March? No, you would hold off and take your exam in February after another month of preparation and still get your score with everyone else. Sounds reasonable right?]
The AICPA’s rationale for this delay is understandable - they are using us to test the integrity of the new system, the new testing process, and the new questions. Because of the changes the AICPA needs to guarantee that candidates are all being graded fairly and properly. When push comes to shove, I want to be graded fairly, so I’ll sacrifice a little in the timing to ensure I have a reasonable score.
So as you can tell, there are some big changes coming in just a few days. But I think it’s most important to remember:
- You will be expected to understand, more completely, the testable topics for each exam section now. Because of the new TBS, smaller topics have a greater chance of making it to your exam, so do not short-change any particular topic you deem unimportant, because everything is fair game now.
- Budget your time! Knowing that there will only be one score release per quarter may just give you the incentive to hold off from taking an exam in the early part of the quarter and taking it when you will be able to receive your score only after a few weeks delay. However, if you have that idea, that means many more will too, so be careful and schedule your exam sooner rather than later!
In my final posting I’m going to discuss the content-specific changes to the exam and the impact IFRS will have starting in on 1/1/11.
Until next time friends, happy studying!
Jerry
For more on the 2011 changes, check out my first posting on the 2011 exam changes here.
