Strategic Business Reporting (SBR) is the eleventh exam of your ACCA journey and the second exam of the ACCA professional level. The aim of this exam is to build upon their knowledge of corporate financial reporting and be able to exercise professional judgment in the evaluation and application of financial principles from a number of perspectives. NCFM Academy Hyderabad is One of the pioneers for the ACCA Course in India Hyderabad was provides ACCA Strategic Business Reporting paper in Ameerpet.
Exam Format
Section A will consist of two scenario-based questions that will total 50 marks. The first question will be based on the financial statements of group entities, or extracts thereof (syllabus area D), and is also likely to require consideration of some financial reporting issues (syllabus area C). Candidates should understand that in addition to the consideration of the numerical aspects of group accounting (max 25 marks), a discussion and explanation of these numbers will also be required. The second question in Section A will require candidates to consider the reporting implications and the ethical implications of specific events in a given scenario.
Students will be required to answer a further two questions in Section B, which may be scenario or case-study or essay-based and will contain both discursive and computational elements. Section B could deal with any aspect of the syllabus but will always include either a full question or part of a question, that requires the appraisal of financial and/or non-financial information from either the preparer’s or another stakeholder’s perspective.
Syllabus of ACCA Strategic Business Reporting
The syllabus is divided into six sections which are divided into further sub-sections.
A- Fundamental ethical and professional principles
This is the first section of this course and it deals with fundamental ethical and professional principles. This section will look into the importance of professionalism and ethics in financial reporting. Students need to assess the appropriateness and relevance of ethical issues in complying with accounting standards.
B- The financial reporting framework
This is the second section of this course and it revisits the financial reporting framework which you studied earlier. Students will get a greater understanding of the need and importance of the financial reporting framework and its underlying principles in standardizing financial reporting.
C- Reporting the financial performance of a range of entities
This is the third section of this course and it will build upon the knowledge gained in earlier studies. Students will learn about reporting financial performance in much greater detail.
This section will cover the financial reporting on revenue; in particular revenue from contracts will be covered in this section. Students will need to understand the criteria for recognition and measurement of revenue including performance obligations satisfied over time, sale with a right of return, warranties, variable consideration, principal versus agent considerations and non-refundable up-front fees
Students will be required to have technical proficiency regarding the recognition, measurement, and disclosure of non-current assets. The treatment for non-current assets held for sale, investment properties, and borrowing costs will be covered.
This section will also look into financial instruments with much greater detail. Students will be required to understand the criteria for recognition, measurement, precognition, reclassification of financial instruments. Hedge accounting will also be introduced in this section.
Leases will also be covered in this section. Students will be required to understand and have technical proficiency in calculating lease-related transactions, re measurement of lease, sale and leaseback transactions.
This section also covers employee benefits, students will be required to understand and calculate the accounting treatment of short term and long term employee benefits and defined contribution and defined benefit plans. The asset ceiling test and the reporting of actuarial gains and losses will also be covered in this section.
This section will also look into provisions and contingencies and events after the reporting period with much greater detail. Income taxes including the treatment of deferred tax will also be covered with much detail. Students will need to understand and apply the recognition and measurement of share-based payment transactions.
Fair value measurement will be covered with greater depth including the principles of highest and best use, most advantageous and principal market.
Other than these major areas, this section will also cover the reporting requirements for small and medium enterprises, biological and agricultural assets, government grants and other forms of government assistance and the policies and rules related to the correction of prior period errors.
D- Financial statements of groups of entities
This is the fourth section of this course and it covers the financial reporting of groups and business combinations in much greater detail. Students will be familiar with this topic as they have covered this in their earlier studies.
This section covers group accounting including the statements of cash flows of groups. Students will need to understand what a business combination is and when it is recognized as such. The difference between the accounting treatment of associates and subsidiaries will also be covered; students will also learn the accounting treatment of subsidiaries bought with the purpose of disposal.
This section will also cover the situations where the change in group structures occurs; students will learn how to account for such changes. This section will also cover situations where the different entities with a group use different currencies and the issues in the translation of foreign currency.
E- Interpret financial statements for different stakeholders
This is the fifth section of this course and it covers the interpretation of financial statements from the perspective of different stakeholders. Students will need to revisit financial ratios, this section focuses especially on the earnings per share as a key ratio from the perspective of stakeholders. Integrated reporting and segment reporting will also be covered in this section.
F- The impact of changes and potential changes in accounting regulation
This is the sixth and final section of this course and it will cover the potential impact of changes in accounting standards, first-time adoption of standards and the issues which arise during the process.