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© ACCA
To ensure that tutors feel confident that they can teach Strategic Business Reporting effectively
Objective
© ACCA
Learning outcomes
1. To build tutors’ confidence in their expertise as Strategic Business
Reporting trainers
2. To provide assistance, suggestions and recommendations around
how to teach Strategic Business Reporting
3. To equip tutors in marking and giving feedback on Strategic
Business Reporting
4. To provide assistance, suggestions and recommendations around
how to support students in revision and final preparation for
Strategic Business Reporting
© ACCA
But before we do, just a couple of things to remember…
1. Your approach to teaching
2. Your action plan
Let’s get
started
© ACCA
To build tutors’ confidence in their expertise as Strategic Business Reporting trainers
Learning
outcome 1
© ACCA
Learning outcome 1: To build tutors’ confidence in their expertise as Strategic Business Reporting trainers
1. Know the exam
2. ACCA support resources for Strategic Business Reporting
© ACCA
Interpreting financial
statements for different of
stakeholders (E)
Financial statements of
groups of entities (D)
The impact of
changes in
accounting
regulation (H)
The financial
reporting framework (B)
Fundamental ethical
and professional
principles (A)
Reporting the financial
performance of a
range of entries (C)
The Strategic Business Reporting syllabus
© ACCA
Exam Structure (Section A)
Questions
Section A
2 compulsory questions (50 marks, split between Q1 and Q2 can vary)
Question 1
will be based on the financial statements of group entities, or extracts thereof
(syllabus section D)
also likely to require consideration of some financial
reporting issues (syllabus section C)
Question 2
will require candidates to consider either
the reporting implications (syllabus area C) and/or (ii) the ethical
implications (syllabus area A) of specific transactions within a
scenario
Professional marks
two professional marks will be awarded in the ethical issues question in
Section A
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
© ACCA
Exam structure (Section B)
SBR
Section B
2 compulsory questions (50 marks)
Section B questions can 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.
Question 3
Based on a modern business scenario and will require application of
accounting standards
Question
Can contain any element of the syllabus
Main focus likely to be current issues, investor issues and/or interpretation
Professional marks
• two professional marks will be awarded in the question in Section B that
requires analysis.
© ACCA
1: Insights from examiners reports
Exam skills require deeper knowledge and understanding and application of knowledge to the scenarios
Must consider the requirement verbs – numbers are not enough to respond to analyse/discuss/ critically assess
Rote learning is not enough
Very few marks available for simply repeating the requirements of standards
Candidates should be able to explain the contents of financial statements to third party users
In depth knowledge of the Conceptual Framework expected
Questions can take the perspective of a wider group of stakeholders
© ACCA
1: Insights from Learning Providers Insights November 2018
Main weaknesses in candidates answers (September 2018 session):
Unstructured answers, indicating lack of planning
Lack of precise knowledge of IFRS standards and principles of the Conceptual
Framework
Time management
© ACCA
Group activity
How would you introduce Strategic Business Reporting to students at the start of
day1 of a course?
What would you stress to students about preparing for this exam?
© ACCA
1: Introducing Strategic Business Reporting to students
Approach
Wide syllabus • Assumed knowledge from FR
• Significant amount of new content
All questions are compulsory
Cover syllabus widely
Importance of Conceptual Framework Understand the Framework and how it
underpins standards
Questions are practical Knowledge must be applied to scenarios
Questions are mainly written, with only limited
calculations
Few marks for repeating rote learned knowledge
Importance of question practice in exam style
Stakeholder perspective Consider the needs of the users of
information
© ACCA
Learning outcome 1: To build tutors’ confidence in their expertise as Strategic Business Reporting trainers
1. Knowing the exam
2. ACCA support resources for Strategic Business Reporting
© ACCA
Education Hub https://educationhub.accaglobal.com/login/index.php
© ACCA
ACCA resources to support you and your students
Syllabus and study guide
Specimen Exam
Sample questions from past exams
Examining team guidance
5 minutes with the examining team
Examiner's reports
Examining team approach article
Examples of a change in approach
Recommended approach to section B of the SBR exam
© ACCA
ACCA resources to support you and your students cont.
Technical articles
Technical topics
Study support videos
Exam technique articles
BPP University English Language Support
Study support guides
Retake guides
Ethics and Professional Skills module
FAQs
© ACCA PUBLIC
Core resources for Strategic Business Reporting
Summary diagram - How to
approach Strategic Business
Reporting
Helping students step up from FR
Exam techniques for success
Read the mind of an SBR marker
(Parts 1 and 2)
© ACCA
Additional ACCA resources to support tutors
Education Hub
Development – includes ACCA/BPP Tutor Excellence Programme
Community – includes SBR Tutor discussion forum
Global Learning Provider Conference resources
Learning Provider Insights
Tutor exam review panel (TERP) presentations
Teach Accounting e-zine https://www.accaglobal.com/uk/en/learning-provider/resources-tuition/teach-accounting.html
© ACCA
Resources from Approved Content Providers to support your teaching Approved Content – study texts and revision question and answer
banks
Approved Teaching Resources:
Course notes
Revision notes
Teaching guidance
Course exams
Mock exams
© ACCA PUBLIC
LO2: Guidance on how to teach SBR
2.1 The step up from Financial Reporting (FR)
2.2 Course structure
2.3 Teaching the harder topics
© ACCA PUBLIC
2.1 The step up from Financial Reporting
Underpinning knowledge from FR:
Conceptual framework
Accounting for transactions in
financial statements
Analysing and interpreting financial
statements
Preparation of financial statements
© ACCA PUBLIC
Useful article
https://educationhub.accaglobal.com/course/view.php?id=114
© ACCA PUBLIC
LO2: Guidance on how to teach SBR
2.1 The step up from Financial Reporting (FR)
2.2 Course structure
2.3 Teaching the harder topics
© ACCA PUBLIC
LO2: Guidance on how to teach SBR
2.1 The step up from Financial Reporting (FR)
2.2 Course structure
2.3 Teaching the harder topics
a. Groups
b. Analysis and interpretation
c. Current issues
© ACCA PUBLIC
LO 2.3 (a) Detailed syllabus
D Financial statements of groups of
entities
1. Group accounting including
statements of cash flows
2. Associates and joint arrangements
3. Changes in group structures
4. Foreign transactions and entities
© ACCA PUBLIC
Learning outcome examples
Strategic Business Reporting
D1a Discuss and apply the principles behind determining whether a business combination has occurred.
D1b Discuss and apply the method of accounting for a business combination including identifying the acquirer and the
principles in determining the cost of a business combination.
© ACCA PUBLIC
Effective teaching of group accounting
Points to consider:
• Brought forward knowledge from Financial Reporting (FR)
• Few marks available for calculations alone
• Emphasis on explanations
• Focus on principles
© ACCA PUBLIC
Exam focus - goodwill
Goodwill
Fair value of consideration 680
Fair value of NCI 420
1,100
Net assets at acquisition:
Share capital 200
Reserves 600
Fair value adjustments 150
(950)
Goodwill 1,050
• Different elements
• Why include contingent consideration?
• How is each element measured?
• Subsequent measurement?
• Why include NCI?
• Choice of measurement
• Impact of measurement options
• Recognition principles
• Measurement principles
• Exceptions to principles
• Subsequent accounting
• What is goodwill?
• Why is it an asset?
© ACCA PUBLIC
What’s the correction journal?
DID
Dr Goodwill 12
Dr Share capital 20
Dr Ret’d earnings 42
Dr OCE 8
Cr NCI 14
Cr Investment 68
SHOULD
Dr Goodwill 14
Dr Share capital 20
Dr Ret’d earnings 42
Dr OCE 8
Dr Land 5
Cr NCI 14
Cr Investment 72
TO CORRECT
Dr Goodwill 2
Dr Land 5
Cr NCI 3
Cr Liability 4
© ACCA PUBLIC
Summary – effective teaching of group accounting for Strategic Business Reporting
• Focus on the underlying principles and concepts of group accounting
• Do teach consolidation procedures but make sure students know that the
preparation of full financial statements is very unlikely to be examined
• Equip students to explain and discuss group accounting issues
• Arm students with an approach to Question 1
© ACCA PUBLIC
LO2: Guidance on how to teach SBR
2.1 The step up from Financial Reporting (FR)
2.2 Course structure
2.3 Teaching the harder topics
a. Groups
b. Analysis and interpretation
c. Current issues
© ACCA
LO2.3 (b) Syllabus coverage
Main capability:
E Interpret financial statements
for different stakeholders
Rationale:
Examine corporate reporting from a number of perspectives
Assess and evaluate reporting decisions made by management and their implications for a range of stakeholders
Analyse and interpret corporate reports and provide advice on reporting implications of transactions
© ACCA
Analysis and interpretation: detailed learning outcomes
E1
a) Discuss and apply relevant indicators of financial and non-financial performance
including earnings per share and additional performance measures
b) Discuss the increased demand for transparency in corporate reports, and the
emergence of non-financial reporting standards.
c) Appraise the impact of environmental, social, and ethical factors on performance
measurement.
d) Discuss the current framework for integrated reporting (IR) including the objectives,
concepts, guiding principles and content of an Integrated Report
e) Determine the nature and extent of reportable segments
f) Discuss the nature of segment information to be disclosed and how segmental
information enhances the quality and sustainability of performance
© ACCA
Meaning of ‘analysis and interpretation’
What is analysis and interpretation at SBR?
Analyse/interpret the given scenario
Apply technical knowledge
Assess assumptions/bias
Explain the impact on identified stakeholders
• Accounting treatment (IFRS)
• Accounting principles
• Non-financial reporting
© ACCA
Question 4(a)(ii) – Specimen exam
The directors use ‘underlying profit’ to comment on its financial performance. Underlying profit is a measure
normally based on earning before interest, tax, depreciation and amortisation (EBITDA). However, the effects
of events which are not part of the usual business activity are also excluded when evaluating performance.
The following items were excluded from net profit to arrive at ‘underlying profit’ . In 20X6, the entity had to
write off a property due to subsidence and the insurance proceeds recovered for this property were recorded
but not approved until 20X7, when the company’s insurer concluded that the claim was valid. In 20X6, the
entity considered issuing loan notes to finance an asset purchase, however, the purchase did not go ahead.
The entity incurred costs associated with the potential issue and so these costs were expensed as part of net
profit before taxation. The entity felt that the share-based payment was not a cash expense and that the value
of the options was subjective. Therefore, the directors wish to exclude restructuring charges incurred in the
year, and impairments of acquired intangible assets.
Discuss the use and the limitations of the proposed calculation of ‘underlying profit’ by rationale.
Note: Your answer should include comparative calculation of underlying profit for the years ended 31
December 20X5 and 20X6
(9 marks)
© ACCA
Teaching analysis and interpretation
1. Technical knowledge
2. How to analyse a given scenario
3. Determining stakeholder impact
4. How to write an analysis and interpretation answer
© ACCA
Teaching IFRS
Objective
Recognition
Initial
measurement
Disclosure
Eg
• IAS 37
• IFRS 2
Eg
• IAS 38 Impact of
choice eg
IAS 40
Subsequent
measurement
Case study
examples
Principles and Conceptual Framework
© ACCA ©ACCA
Thoughts from the examining team
1. Understand the Q
and identify the
accounting issues
2. Use principles in the
standard/framework to
plan the answer
3. Apply these principles
to the scenario to
answer the Q
© ACCA
Teaching technique
Teach the theory
Work an example
with students
Ask students to
complete an
example or
question
© ACCA
Analysing a scenario
Scenario
Issues are hidden Issues are apparent
• Explicit reference
• Paragraph per issue Analyse to identify relevant
technical knowledge
IFRS principles narrative
© ACCA
Stakeholder impact
Z Company granted its directors share rights during the year. The vesting of these
rights in 2 years’ time is dependent on the company’s revenue growing by 6% in
each of the two years. An employee bonus scheme has also been set up to
allocate 8% of Z Company’s profit after tax as an employee bonus.
Issue Stakeholders Accounting treatment
© ACCA
Stakeholder impact
Stakeholders
Investors and
potential
investors
Suppliers
Customers
Directors and
senior
management
Employees
The public Government
Lenders
Auditor
© ACCA
What’s the impact on stakeholders?
Good or bad for the stakeholder?
What action might the stakeholder take?
What would be the impact on the reporting
entity?
What action would other stakeholders take as
a result?
© ACCA
The tax reconciliation Differs from taxable profit
22% x profit
Group tax is total of individual
companies’ tax at local rate
Amounts in SPL that are not
taxable/are not relieved
• Adjustments
• Deferred tax At effective rate
© ACCA
How to prepare students for a similar question
Explain a disclosure
note
1. Identify disclosure requirements
in IFRS
2. Use examples from real
companies’ annual reports
© ACCA
Techniques to identify issues
Read through and make note in margin/use highlighter to identify each issue
Look for
trigger words
e.g.
impairment
Consider a
list of
standards to
identify those
that are
relevant
Consider a
standard
layout of the
SOFP,
SPLOCI and
SCF
Consider what
the stakeholder
sees - the
layout of a
published
annual report –
narrative /
group accounts
/ parent
company
accounts
Consider the
content of the
Conceptual
Framework
© ACCA
Additional Performance Measures (APMs)
What are examples of additional performance measures?
Adjusted revenue or
profit KPIs
Additional information on
financial statement items
© ACCA
Example – annual report
*Key financial indicators
Underlying sales growth, underlying volume growth, core operating margin and free cash flow are non-
GAAP measures. For further information about these measures, and the reasons why we believe they
are important for an undertanding of the performance of the business, please refer to our commentary on
non-GAAP measures on page 26 to 28
© ACCA
APMs: aspects to teach
Advantages and disadvantages Evaluation
European Securities and Markets
Authority guidelines
© ACCA
Writing an answer to an analysis and interpretation question
Identify the requirement and
allocate marks to sub-
requirements both explicit and
implicit
Write answer
Deal with all sub-
requirements
Write sufficient
points
Headings Separate
paragraphs
Write succinctly
Professional
language
Write thought
process
Avoid repetition
© ACCA PUBLIC
LO2: Guidance on how to teach SBR
2.1 The step up from Financial Reporting (FR)
2.2 Course structure
2.3 Teaching the harder topics
a. Groups
b. Analysis and interpretation
c. Current issues
© ACCA PUBLIC
LO2.3 (c) Current Issues
Current syllabus
How can tutors prepare to teach?
How to teach current issues
© ACCA PUBLIC
Current Syllabus (September 2018 to June 2019)
Discuss and apply the accounting implications of the first time adoption of
new accounting standards
Identify issues and deficiencies which have led to proposed changes to an
accounting standard
Discuss the impact of current issues in corporate reporting
© ACCA PUBLIC
Current syllabus (September 2018 to June 2019) continued
Discuss the impact of current issues in corporate reporting
Revision of the conceptual framework
IASB’s Principles of Disclosure Initiative
Materiality in the context of financial reporting
Primary Financial Statements
Management commentary
Developments in sustainable reporting
© ACCA PUBLIC
How should you prepare to teach current issues?
What are current issues? What will the impact be?
IFRS workplan
www.ifrs.org/projects/work-plan/
IASplus
www.iasplus.com/en-gb
Annual reports
ACCA
https://www.accaglobal.com/gb/en/techni
cal-activities/technical-resources-
search.y-2018.c-topic--
Corporate_Reporting.r-
geographicLocation--Global.html
© ACCA PUBLIC
How to teach current issues
Activity
How can we teach current issues in the classroom?
© ACCA PUBLIC
Using the Conceptual Framework to appraise current standards – an example
IAS 12 Income
Taxes
Qualitative criteria
Definition and
recognition of elements
Accrual accounting
© ACCA PUBLIC
Sustainability Reporting – An approach to teaching
What is a sustainability report?
Is there any guidance?
Do companies prepare sustainability
reports?
© ACCA PUBLIC
Is there any guidance?
GRI
Guidelines
GRI
Standards July
2018
• Disclose management approach
to managing economic,
environmental, social impact.
• Identify relevant topics and
assessing their effects on
activities, products, services and
relationships
• 3 Universal standards
• 6 economic standards
• 8 environmental standards
• 19 social standards
© ACCA
Learning outcome 3: How SBR is marked
1. Overview of exam marking at ACCA
2. Interactive exercise where tutors have the opportunity to practise marking
© ACCA
Learning outcome 3: How SBR is marked
1. Overview of exam marking at ACCA
2. Interactive exercise where tutors have the opportunity to practise marking
© ACCA
Who are the marking team?
Qualifications Technical
Adviser
Marking
Session Lead
Team Leader
Markers
Team Leader
Markers
Team Leader
Markers
© ACCA
Ensuring the marking standard
Setting the initial standard • Marking session lead, qualifications technical
adviser and team leaders mark sample of
scripts
• Draft marking guide is finalised
• Practice and standardisation scripts created.
Initial standardisation of
markers • Practice to learn marking guide
• Tested on standardisation scripts
• Team leaders train as required
• Process repeats until
standard met.
Maintaining the standard
during marking • Marking session lead marks scripts
to be set as seeding
• Seeding scripts allocated
to markers
• Team Leaders check and resolve
standard drift.
© ACCA
Marking – basic principles
Suggested answers – are examples of strong answers
Credit is given for any relevant answers
No negative marking
No marks lost for poor spelling or grammar
© ACCA
Intellectual levels – Bloom’s taxonomy
Work from the lowest
level up. You need to
be capable at the
lowest level before
you can master the
next level. If you are
uncertain about
performance at a
particular level move
to that below.
Evaluating
Synthesising
Analysing
Applying
Comprehending
Remembering
© ACCA
Marking – basic principles
Generally 1 mark per relevant point (see marking schemes
for each question)
Marking will reflect the intellectual level demanded by the
task requirements
Own figure rule
© ACCA
Intellectual levels www.accaglobal.com study-skills/intellectual-levels
Level 3
Synthesis and evaluation require demonstration of the following capabilities:
Creation of new ideas from, or new insights into, existing knowledge
Generalisation, comparison, and discrimination using complex and unstructured information
Assessment and evaluation of complex information
Use of reasoned argument to infer and make judgements
Presentation and justification of valid recommendations
• Create new insights
• Compare
• Evaluate
• Infer
• Make a judgement
• Justify
• Recommend
© ACCA
Learning outcome 3: How SBR is marked
1. Overview of exam marking at ACCA
2. Interactive exercise where tutors have the opportunity to
practise marking
© ACCA
Interactive exercise: your turn to mark! The answer scripts include two answers to the following requirements:
Requirement Marks
Specimen Q1(a)
(i)
Explain goodwill calculations and error corrections 10
Specimen Q1(a)
(ii)
Explain treatment of gain/loss on sale of investment in
subsidiary
5
Specimen Q 2 Ethical and accounting implications 18
Professional marks 2
December 2018
Q3
(a) Conceptual Framework and valuation of inventory 7
(b) Treatment of reconditioning costs and impairment 8
(c) Treatment of acquisition of additional interest in a mine 10
© ACCA
Professional marks on ethics requirements
Did the candidate show that they had:
• thought a bit more deeply about the ethical issues, for example, what needs
to be done to resolve the situation?
• thought widely about the issue, considering other resources/implications
where it was sensible to do so?
• understood the ethical issue by reference to the case study? Ethical issues are
never clear cut, therefore students need to show that they understand the
ethical dilemmas that accountants face. It requires a discussion which
demonstrates an understanding of the reality of a problem
© ACCA
Learning outcome 3: How SBR is marked
1. Overview of live exam marking at ACCA
2. Interactive exercise where tutors have the opportunity to practise marking
© ACCA PUBLIC
LO4: Supporting students in revision and final preparation for SBR
4.1 Structure of a revision course
4.2 Effective exam technique
4.3 Running a mock exam day
© ACCA PUBLIC
4.1 Overall structure of a revision course
Pre-course information
Pre-course work
Timetable
Each day
Topics
Question practice
Homework
Mock exam
On course or
a separate day
© ACCA PUBLIC
Activity - using questions
Question-based teaching is the most effective way to revise but students will be
bored if they are not given a variety of activities in class.
List the different ways that you can use questions during a revision course
© ACCA PUBLIC
Activity - using questions
Ways of using Questions from Specimen 1/Sept/Dec 18
1. Set in full and debrief
2. Set part in full and debrief
3. Answer plan
4. Peer marking
5. Mark “student-style” answer
6. Homework
© ACCA PUBLIC
Debriefing a revision question
Take in and mark
Guide marking
Mark a student style answer
Rework it
Draw on examiner’s report feedback
Debrief checklist
© ACCA PUBLIC
Required:
(i) Explain the criteria in both the 2010 version of the Conceptual Framework for Financial Reporting (the Conceptual Framework) of the International Accounting Standards Board and the 2015 proposed revision to the Conceptual Framework for the recognition of an asset and whether the criteria are the same in IAS® 38 Intangible Assets. (6 marks)
(ii) Discuss the implications for Skizer’s financial statements for both the years ended 31 August 20X7 and 20X8 if the recognition criteria in IAS 38 for an intangible asset were met as regards the stakes in the development projects above. Your answer should also briefly consider the implications if the recognition criteria were not met. (5 marks)
(iii) Discuss whether the proceeds of the sale of the development project above should be treated as revenue in the financial statements for the year ended 31 August 20X8. (4 marks)
Skizer Co (September 2018 Q2a) – Debrief requirements
© ACCA PUBLIC
LO4: Supporting students in revision and final preparation for AAA
4.1 Structure of a revision course
4.2 Effective exam technique
4.3 Running a mock exam day
© ACCA PUBLIC
4.2 Inappropriate exam technique – examiner’s feedback
1. Not answering in line with the requirement verbs – analyse/discuss/critically
assess
2. Quoting accounting standards with no application or discussion
3. Numbers in isolation will not be enough
4. Poor time management – tendency to over-run on Q1
5. Poor planning - repetition of points wastes time and will not score marks
© ACCA PUBLIC
LO4: Supporting students in revision and final preparation for SBR
4.1 Structure of a revision course
4.2 Effective exam technique
4.3 Running a mock exam day
© ACCA PUBLIC
4.3 Running a mock exam “day”
“Sitting a Mock Exam in the time allocated, without reference to study materials, is
the single most important element in preparing for the ACCA exam”
Readiness
Timing
“Fear factor”
Effective exam technique
Time management
Overall approach
Reflect on experience
© ACCA PUBLIC
4.3 Running a mock exam “day” – Marking and feedback
Wherever possible
Marking scheme
Debrief and commentaries