The 2026 CPA FAR Exam changes involve targeted adjustments to fair value measurement, rather than a significant content overhaul. The i75 video and pushdown accounting lesson below explain how an acquired company reflects the acquirer’s basis in its separate financial statements.
i75 FAR has you prepared. Watch this video from i75 FAR and you will see what the exam expects you to know.
Fair Value Measurement Changes for 2026
The AICPA removed two representative fair-value tasks and replaced them with one representative task to clarify how ASC 820, Fair Value Measurement, is divided between FAR and BAR. The Blueprint also removed a reference to an outdated AICPA practice aid and made several scope clarifications.
These are minor Blueprint adjustments, not a significant content overhaul. See AICPA & CIMA’s 2026 CPA Exam Blueprint resources.
What Is Pushdown Accounting?
Pushdown accounting occurs when a company that has been acquired adjusts its own separate financial statements to reflect the acquirer’s purchase price allocation (PPA).
Pushdown accounting is optional. If selected, the acquiree pushes down the parent’s basis (fair values) onto its own books.
The acquiree replaces old carrying amounts with the parent’s new fair values for acquired assets and liabilities. The subsidiary also records goodwill directly on its own books even though it did not pay anything.
When Can Pushdown Accounting Be Used?
Pushdown accounting is allowed when a change in control occurs (the acquirer obtains more than 50 percent ownership).
The acquired company prepares its own separate financial statements.
The subsidiary revalues identifiable assets and liabilities using fair value, not carrying amount, consistent with the fair values used in the parent’s purchase price allocation.
Pushdown accounting is optional, not required. However, once elected, the choice is irrevocable.
Retained Earnings and APIC-Pushdown
If pushdown is elected by the subsidiary, retained earnings is usually eliminated and replaced with an account called Additional Paid-In Capital (APIC) - Pushdown.
On consolidated financial statements, all subsidiary equity accounts are eliminated. But in the subsidiary’s separate books, if pushdown is used, retained earnings is eliminated and replaced with APIC-Pushdown.
What Has Not Changed in 2026?
The CPA Evolution structure remains intact: candidates take all three Core sections—AUD, FAR, and REG—and choose one Discipline: BAR, ISC, or TCP.
Each section remains four hours, with two multiple-choice question (MCQ) testlets followed by three task-based simulation (TBS) testlets. Scoring remains 50% MCQ and 50% TBS, except ISC, which remains 60% MCQ and 40% TBS.
Source: AICPA & CIMA’s testing-date guidance.