Why You Need to Pass the BEC Exam in 2023
The CPA Exams Are Facing Major Changes Starting January 1, 2024
Have you heard about the major changes coming to the CPA exam starting January 1, 2024? The exam format will change, with three core exams and for the fourth exam, a student chooses one out of three disciplines.
The three core exams are Financial Accounting and Reporting (FAR), Auditing and Attestation, and Taxation and Regulation (REG). The three discipline exams are Business Analysis and Reporting (BAR), Information Systems and Controls (ISC) and Tax Compliance and Planning (TCP). The student only chooses one discipline exam.
The 3 Discipline Exams:
Business Analysis and Reporting (BAR)
Information Systems and Controls (ISC)
Tax Compliance and Planning (TCP)
Now why should you pass the BEC exam in 2023? Because NASBA has said that any student with a BEC credit will not have to take the discipline exam. In other words, the BEC exam credit will apply as a discipline credit.
“Any student with a BEC credit will not have to take the discipline exam.”
This matters because, given that these discipline exams are brand new, they are fairly difficult to predict. The AICPA blueprints provide a detailed outline of each topic on the new exams. But it’s difficult to know exactly how the AICPA will test these topics. For example, how in-depth with the test makers go in testing data privacy for the ISC exam?
Now, you might be asking yourself, “Are the three core exams new?” For these core exams, the test makers removed certain information without adding much new information. For example, the FAR example used to test governmental accounting in-depth, both the basics and advanced governmental accounting. Under the new exam format, the FAR exam only tests the basics of governmental accounting. Then, if students choose the Business Analysis and Reporting (BAR) discipline, they will need to know the advanced governmental topics.
In another example, on the current REG exam, property distributions from entities are tested. Under the new REG core exam, only cash distributions will be tested. Property distributions (and contributions) will be tested on the TCP exam.
In summary, by passing the BEC exam in 2023, you will be setting yourself up for success with the new CPA exams starting January 1, 2024.