SBR Technical Articles. ACCA Strategic Business Reporting

SBR Technical Articles

SBR Technical Articles are designed to provide an overview of the key SBR topics and related examiners guidance, as well as share insights and experiences from various users and implementers. 

(SBR Technical articles are updated for the 2024-2025 syllabus)

Fundamental ethical and professional principles (A)

Accounting ethics in the digital age

The article discusses several ethical threats accountants in today's digital age may face and offers suggestions on how these risks might be mitigated or eliminated.

The financial reporting framework (B)

Profit, loss and other comprehensive income

The article looks at what differentiates profit or loss from other comprehensive income and where items should be presented.

The Conceptual Framework

Read our blog on conceptual framework and difference between conceptual framework and accounting standards.

Reporting the financial performance of a range of entities (C)

IFRS 9, Financial Instruments, part 1 | part 2

Part one of this article examines the essential accounting processes to manage financial assets and liabilities properly. Additionally, it focuses on strategies for dealing with impairment situations and derivatives and hedge transactions. In part two, we delve further into these topics to better understand their role in modern bookkeeping practices.

IFRS for SMEs

To help small and medium-sized enterprises (SMEs) meet the needs of their customers, they must have access to reliable accounting information. This can be difficult for these companies since most require a level playing field where competitors must also provide comparable data on which consumers may base decisions about purchases or investments in various markets; however, this isn't always the reality when dealing with smaller businesses all over the world who struggle under higher levels. 

Deferred tax

The deferred tax system is integral to any company's financial reporting. This article looks at the aspects covered in detail on your next exam and then moves on to more complicated topics for future tests!

IFRS 2, Share-based Payment

Implementing International Financial Reporting Standard 2, Share-based Payment has caused much controversy in recent years. This standard applies when a company acquires or receives goods and services for equity-based payments like stock options from their employees, which can be challenging to manage since there's no way they know what expense will come up next!

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IFRS 13, Fair Value Measurement

In IFRS 13, many principles and concepts need to be understood by entities. This would require a lot of work simply because it's difficult for people who don't have an accounting background or any knowledge about this topic!

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Impairment of financial assets

This article discusses the recent proposals from International Accounting Standards Board (ASB) for new regulations on financial asset impairment.

Measurement

The information gathered from different methods can have an impact on financial statements.

Revenue revisited

IFRS 15 was recently updated to include new guidance on how revenue from customer contracts should be treated. This two-part article considers the application of this accounting standard, focusing specifically on its five steps and their corresponding impacts on an organization's financial statements at aggregate and individual levels.

When does debt seem to be equity?

The confusion about whether debt or equity should be displayed in an entity's statement of financial position has led to inconsistent reporting. Financial instruments often have both features, making it difficult for preparers and users alike to determine what they are looking at when reading their company's latest books.

The term "debt" is used synonymously with obligations incurred by entities towards others ( creditors ) instead of liabilities created from loans like mortgages.

Cryptocurrencies

Cryptocurrencies are a type of digital token that can be used to buy and sell products, services or assets. These tokens provide many rights, such as the right to use something else in exchange for your cryptocurrency (a concept known as "converting"). 

Topic explainer video: Deferred tax / deferred tax and group scenarios
In this video, expert tutor Tom Clendon examines the topic of 'Deferred tax' (YouTube)

Topic explainer video: Financial instruments
In this video, expert tutor Tom Clendon examines the topic of 'Financial instruments' (YouTube)

Financial statements of groups of entities (D)

Business Combinations – IFRS 3 (Revised)

Impairment of goodwill

Interpret financial statements for different stakeholders (E)

Sustainability reporting

Interest in this area is sure to increase as businesses progress with reporting.

Additional performance measures

For centuries, people have been arguing about communicating financial performance in a way that will not mislead the user.

Giving investors what they need

The integrated report framework

In 2013, the International Integrated Reporting Council (IIRC) released a framework for integrated reporting that guides creating an effective and engaging document. 

Using the business model of a company to help analyze its performance

The essence of a business is what makes it unique, and understanding this will help you predict the implications that changing circumstances may have on your company.

The impact of changes and potential changes in accounting regulation (F)

Climate-related disclosures and investor focus

The investor and broader stakeholder demand for both financial disclosure and non-financial information have generally increased.

Bin the clutter

The annual report is often one of the company's most important documents. However, it's often been treated as an afterthought when companies think about what goes into their reports, which needs to change! Recent initiatives have started discussions on how clutter could affect investor confidence and future business success rates in light of new research that shows its impact more than ever before.

IAS 21 – does it need amending?

The definition and disclosure of capital

This article considers what should be included in accounting for a company's capital and why it matters.

The Sustainable Development Goals

The UN has created a set of 17 global goals to be achieved by 2030. These include zero hunger, decent work and economic growth with reduced inequalities worldwide!

Technical articles on multiple syllabus sections

Crowdfunding and impairment of financial instruments

Business combinations, share-based payments and accounting considerations of a pandemic or natural disaster

This article considers three control issues that candidates might face when responding to an exam question. It also reflects on how share-based payments should be accounted for in connection with the purchase consideration given by a business combination participant, specifically their subsidiaries' acquirees (the dilutive entity). Finally, it uses pandemic extraordinaire Covid 19 as the context within which IFRS standards may apply; why these particular ones are relevant during such emergencies/crises like this one where there's been so much emphasis placed upon preparedness come clear. Soon enough!

Asset ceiling test (IAS 19), initial coin offerings, non-GAAP, and non-financial performance measures

IFRS isn't the only set of standards that financial accountants need to worry about when it comes time for an initial coin offering. The article discusses how many IFRS principles and concepts could be relevant in this case, including asset ceiling tests standard within employee benefits accounting practices worldwide (and have even appeared occasionally). It also looks at some non-financial performance measures reported by one digital entity as they relate their business activities during specific periods under examination there -- these may give some insights into what other companies might do!

Onerous lease contracts and impairments, and investor issues

The technical matter of onerous lease contracts and their impairment is the topic addressed in this article. Two different types of approaches are used to answer SBR exam questions: (i) investors issues; and/or), application knowledge about specific situations that arise when analyzing these complex lease contract examples given by banks during due diligence processes before investing into real estate projects.

Conclusion paragraph: 

The SBR Technical Articles are a valuable resource for anyone looking to learn more about the key topics covered in SBR.

Supplementing these articles with additional resources, such as the BPP books and training courses, can provide even further insights into how to implement SBR successfully. Students can additionally taken an AICPA IFRS certification to add another credential to their CV. This will also strengthen their knowledge on IFRS.

We encourage you to explore all of the available resources and find what works best for you and your team.