Equity investments will lead to equity income. This is a non-cash income item that must be removed from cash flow from operating activities when starting with net income. Dividends received also need to be added. Earlier we recognized them as a decrease in the carrying value of the investment, not as a revenue. So now we need to recognize them as an operating cash inflow.

The CPA Financial Accounting and Reporting (FAR) section covers US GAAP, IFRS, and governmental accounting, focusing on financial statement preparation, balance sheet accounts, and complex transactions.

Key concepts include revenue recognition (ASC 606), leases (ASC 842), business combinations, bonds, inventory, and governmental accounting, with a 50/50 mix of MCQs and simulations.