The CARES Act: Not Testable on CPA Exam Until October 2020

cares act cpa examSome good news for all of you REGulators out there. The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) won't be tested on the CPA Exam until October 1, 2020, per the AICPA's CPA Exam Policy on New Pronouncements:

“Accounting and auditing pronouncements are eligible to be tested on the Uniform CPA Examination in the later of: (1) the first testing window beginning after the pronouncement’s earliest mandatory effective date or (2) the first testing window beginning six (6) months after the pronouncement’s issuance date. In either case, there is a simultaneous introduction of content related to the new pronouncement and removal of content related to the previous pronouncement.

Changes in the federal taxation area, the Internal Revenue Code, and federal taxation regulations may be included in the testing window beginning six (6) months after the change’s effective date or enactment date, whichever is later.

For all other subjects covered in the Regulation (REG) and Business Environment and Concepts (BEC) sections, materials eligible to be tested include federal laws in the window beginning six (6) months after their effective date, and uniform acts in the window beginning one (1) year after their adoption by a simple majority of the jurisdictions.”

The CARES Act was enacted on March 27, 2020. September 27 is 6 months after the enactment date.

October 1, 2020 is the first CPA Exam testing window it will be covered, which I have confirmed with the AICPA.

Plenty of time for you to unlearn the TCJA Net Operating Loss rules that you just learned because you had to unlearn the Net Operating Loss rules you previously studied.

 
 

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