The topics we will discuss to help you revise for your ACCA Strategic Business Reporting (SBR) exam include:
- The core areas and objectives of the exam
- How the exam is structured
- The benefits of studying ACCA SBR
- Challenges
- An example exam question
- Additional resources
The ACCA Strategic Business Reporting (SBR) exam tests candidates' ability to apply International Financial Reporting Standards (IFRS) in real-world business scenarios. SBR emphasises professional judgement, ethical considerations, and strategic decision-making.
What are the exam topics?
The topics covered in the ACCA SBR syllabus are:
- Financial statements of group entities - including joint operations, associates, and foreign subsidiaries.
- Ethical and professional principles - understanding the role of professional ethics in finance reporting (producing good quality financial reports requires adherence to a code of ethics).
- Reporting financial performance of entities - applying IFRS standards to prepare financial statements.
- Financial reporting framework - the vital role it plays in shaping the accounting treatments covered in the reporting standards and the importance of applying the conceptual framework to unusual transactions.
- Interpretation and analysis - using financial and non-financial data to make strategic business decisions.
- Changes in developments in financial reporting - emerging trends such as sustainability reporting, integrated reporting, and digital financial reporting.
How is the exam structured?
The SBR exam is a three-hour-and-fifteen-minute paper with four compulsory questions, totalling 100 marks. It consists of two sections:
Section A - 50 marks
- one question covering financial statements of group entities as well as consideration of other financial reporting issues (30 marks)
- The numerical aspects of group accounting will generally make up around 10-14 marks and will refer to pre-populated data, with the remaining marks focusing on discussion and explanation of where those numbers come from and what they mean.
- one question focusing on financial reporting as well as ethical implications of specific events in a given scenario (20 marks)
Section B - 50 marks
- two scenario-based, case study, or essay questions (25 marks)
- This section could deal with any area of the syllabus but will always include a full or partial requirement of the appraisal of financial and/or non-financial information.
Professional marks - 4 marks
- Two professional marks will be awarded in Section A's ethical issues question.
- The other two professional marks will be awarded in the analysis question of Section B.
Changes in developments in financial reporting
This can be examined in either of the two sections. However, it is more commonly associated with section B. It is usually part of a larger question rather than the main focus.
How does the ACCA SBR exam subject help my career and/or studies?
Passing the ACCA SBR exam enhances your financial reporting and decision-making skills, making you a valuable asset in roles such as:
- Financial director/controller - involves strategic financial decision-making.
- Auditor - aids in evaluating financial statements in compliance with IFRS.
- SBR provides a solid foundation for Strategic Business Leader (SBL) and other advanced financial management roles.
Common challenges and tips for the ACCA SBR exam
As this is an exam within the Strategic Professional level of the ACCA qualification, many learners will experience common challenges.
Common challenges include:
- The volume of the SBR syllabus is extensive, and it can be overwhelming to cover all topics thoroughly.
- Even if you understand the material, it can be challenging to communicate your answers clearly under exam conditions.
- Many learners struggle to complete all questions within the time limit while maintaining quality.
How to address these challenges
Create a study plan
Break down the syllabus into manageable sections and set weekly study goals. Study aids such as summaries, mind maps, and flashcards can help simplify complex IFRS standards.
If you’re enrolled on a course with us at Kaplan, you can also contact the Academic Support team via your MyKaplan platform which can help with those trickier topics. They may also refer you to a Progressional Advisor (if you haven’t already been contacted by one), as they will help you devise a study plan.
Knowledge is key
Enhance your knowledge by joining ACCA study groups or forums where you can reach out to others studying for the ACCA qualification. Participating in groups can help you clarify doubts with peers and solidify your understanding as you help others.
In addition, stay up to date with any trends by reading examiner reports, industry updates, and ACCA technical articles as they are written by examiners and provide insights into key topics. It’s also essential to ensure that you understand the concepts and don’t just memorise them. The ACCA SBR exam is about applying IFRS and not just recalling the definitions.
Practice under exam conditions
When preparing for your exam, make sure that you practice questions under exam conditions to improve your time management. This can also help you retain information, as you’ll be more familiar with the circumstances.
Time management
Each section is worth 50%. Try to divide your time equally between both sections, start with your strongest question first, and move on when the time is up to avoid spending too long on one question. You could also break it down further by allocating time per mark.
For example, Section A awards around 10 marks for numerical aspects of group accounting. Therefore, aim to spend no longer than 19.5 minutes (1.95 minutes per mark) on these calculations.
Ensure a structured response
To ensure a more structured response, use the SAC method (State, Apply, Conclude):
- State the relevant IFRS standard of principle
- Apply it to the given scenario with an explanation
- Conclude with a reasoned opinion or recommendation.
To further ensure that your answers are clear and structured:
- Label each part by using headings and bullet points.
- Use plain English to keep sentences concise.
- Avoid lengthy, unfocused responses and stick to shorter paragraphs.
Example question and answer
The question below is from question one of a previous SBR exam.
Scenario: Ashanti, a parent company, sells goods to a non-group company.
Scenario: Ashanti, a parent company, sells goods to a non-group company.
At the year end, Ashanti sold goods on credit to Spice, an unrelated company, and recognised revenue of $5 million. Before the date of the sale, Spice had made an announcement that it would be restructing its debts. At the date of the sale, it was deemed improbable that Ashanti would recover the amounts outstanding.
The financial accountant didn't get round to recording any adjustments for any of the additional transationcs before going on sick leave.
(iii) Briefly explain the correct treatment of Ashanti's sale to Spice. (2 marks)
Sale of goods to Spice
(State)
As per IFRS 15 - Revenue, Ashanti should only account for revenue from a contract if it is probable that the consideration will be received.
(Application)
At the date of the sale, it was deemed improbable that Ashanti would recover the amount owed from Spice, and therefore, Ashanti should not have recognised the sale.
(Conclude)
Therefore, a revenue of $5m should be removed from revenue and receivables.
Final thoughts
The ACCA SBR exam is challenging but can be conquered with the right approach, commitment, and study techniques. At Kaplan, we provide resources such as the study text, exam kit, the MyKaplan platform, and examiner reports, which offer insights into common mistakes.
By understanding the exam structure, improving professional judgement, and practising scenario-based questions, you can enhance your strategic business reporting skills and move closer to becoming ACCA qualified.
Additional support and resources
If you’re not already studying ACCA Strategic Business Reporting (SBR) with us at Kaplan, give yourself the best chance to pass the exam with our ACCA SBR course. With four study methods, you’ll find a course that’s perfect for you.
When studying with Kaplan, you will have access to the Academic Support team via the ‘contact a tutor’ option on your MyKaplan. They are available seven days a week and can support you with any tricky topics via live chat, email, or by requesting a call back.
And, if you have any additional learning needs, get in touch with our inclusion team who can support you.
Kaplan Publishing, an ACCA Content Partner, also offers ACCA Study Texts, Exam Kits and Pocket Notes - which cover the full syllabus and help you feel exam confident.
Read our blog for additional tutor tips for other exam subjects.