SBR*** ACCA Paper SBR December 2018 Exam was.. Instant Poll and comments ***

it was a total disaster, didn’t expect that it would be so much difficult :-/

There was ifrs9 in question 2 right? The debt covenant was at stage 2 then stage 3 of the general approach?

Thought the exam was a bit naughty tbh, bit of a disaster ... no consol questions and seemed to be mainly focussed on written answers / reporting standards, not even the type of questions you could have a reasonable stab at with a moderate understanding. Was expecting it to be tricky and hard, but genuinely scanned the exam before I started and just knew instantly that I was in trouble

In my opinion this was nothing like the specimen exams or the September 18 paper. The BPP study materials didn't prepare me for this exam and I thought I'd learnt the sylabus and all of the ACCA technical articles.

The majority what I studied from Kaplan was not needed. So very hard exam and I'm sure I did not pass. The 4th question about taxes was disaster and so the 1st one about the cash flow. Seems that there were put in all specific situations and detailes which I did not studied.

When i saw the 1st question,i knew i was in trouble! No consolidation! The paper was mostly about conceptual framework and some standards. Question 2 and 3 were moreover ok. But cherry on the cake was Q4! 14 mrks on Tax,seriously didn't see it coming!

For sure the hardest exam I’ve sat to date and came out of the exam so upset. Question 1 was Cash Flows and all a bit of a disaster. Question 4 on Taxes and the application of taxes was very cheeky. Style of exam was very different to Kaplan’s materials and ACCAs specimen and mocks they’ve published and also the September exam. Pretty much know now I’m going to have to resit in March :(

I think the examiner needs to look at the approved study material before the exam is written. Students will leave ACCA if they're unable to prepare properly for the exams that are set.

It was not what I expected. Hard!!!!!!!

Could not agree more. Overall felt prepared but was in for a quite a shock this morning. Seems like the last exam was in line with what was suggested by the articles/Mocs. This paper was in a league of its own.

The cashflows question completely caught me off guard and i really wasn't expecting the deferred tax question at the end. I also got confused with the investment property question - the fact that they leased it out made me think i was wrong to treat it as a investment property and didn't know whether it was a lease? Just so confusing... This exam was a complete car crash for me i think its the first exam i have sat where i just felt so hopeless. I spent £700 on a course studying for this exam through BPP but feel like i wasn't well-equipped to deal with these questions at all. I literally felt like walking out of the exam halfway through because i just knew i couldn't pass it. Everyone says the professional level is tough but this was just tough at another level :(

Hi guys I found the paper difficult and placed focus on the conceptual framework/exposure draft which was just touched on in the Kaplan materials. The exam did not entirely reflect the study materials I used. Is there way to put a complaint forward? Has anyone done this before? Super gutted as this would have been my last exam :(

This was the hardest paper I’ve sat so far. I am not sure the examiner intended for any of us to pass. Covered All syllabus, IFRS, IAS, study materials, specimen papers- non prepared me for this.

Agree ..its very Demotivating

This was nothing like the September 2018 paper or any of the questions provided in the Kaplan exam kit. Majority of the questions were based on the conceptual framework and exposure drafts. The deferred tax question at the end was totally unexpected!

This will probably be my first resit. I went through all the Bpp kit and some questions in Kaplan that weren't covered in the Bpp kit. Also, did all the specimens and read about the current issues. For the last question, I don't understand how we were supposed to explain the figures in the tax reconciliation, we weren't given enough information as to what they were about. I haven't seen another question like that anywhere for deferred tax. Seems like the pass rate will fall dramatically from 49% in September unless they are really lenient in the marking. That's why I made sure to put some answer for every question, just in case I could scrape a pass.

This paper was so unfair! Question 4 regarding tax was so hard. There is now way BPP or Kaplan material could prepare you for this sort of question. I think ACCA must have freaked out that the pass rate for September was 49% so they made this one ridiculously hard :( All of the revision books are full of consolidated statements and the exam doesn't mention it once.

The question with investment property, I think it should of been held as an investment property but the fv which was used by the md was incorrect, I commented on things like how the incorrect fv would of lead to profits being higher and assets being overstated, also talked about fv measuresment ifrs 13, but some people think it was an lease but there wasn’t any information on discount factors or lease payments ?

Looking at the qeustion paper i thought we were invited for ACCA's funeral. Also in the exam hall everyone was mourning:)

Why ow why didn’t I sit P2 when I had the chance final exam and it will be touch and go wether I pass or not, wasn’t expecting so much conceptual framework, and q4bwas a disaster, 1 made a decent attempt at but doubt I got more than half the marks was not expecting 18 marks on cash flows. Q2 was pretty straight forward and first half of q3 for UK paper was aswell.

Well p2 was in the 50s normally but can’t see this one getting above 35% in line with the optional ones which would be a huge kick in the teeth

So how I will continue ACCA with this low moral ..it was my first time to see such kind if hard paper in my life ...I give up...

After lease commencement, a lessee shall measure the right-of-use asset using a cost model, unless: [IFRS 16:29, 34, 35] i) the right-of-use asset is an investment property and the lessee fair values its investment property under IAS 40; or ii) the right-of-use asset relates to a class of PPE to which the lessee applies IAS 16’s revaluation model, in which case all right-of-use assets relating to that class of PPE can be revalued. So should the investment property in Q2 be valued at fair value and not cost?

@lynchpeter1 said: After lease commencement, a lessee shall measure the right-of-use asset using a cost model, unless: [IFRS 16:29, 34, 35] i) the right-of-use asset is an investment property and the lessee fair values its investment property under IAS 40; or ii) the right-of-use asset relates to a class of PPE to which the lessee applies IAS 16’s revaluation model, in which case all right-of-use assets relating to that class of PPE can be revalued. So should the investment property in Q2 be valued at fair value and not cost?

I think it stated in the question they valued using fair values. but I think the issue was they over valued to avoid the breach of covenants and should have used the professional valuers valuation of 22 million. Think the lease was thrown in there to test your understanding of the IAS as per your point 1

The SBR exam paper was not for students. It was bit of research works on Conceptual Framework, IASB’s EDs and Financial Reporting Standard. I felt it was for experienced financial reporting experts not for me :-(. Anyhow, it was an opening of new question pattern for professional exam. I never met any of this kind of question set before in BPP, past exam papers etc. No way to pass this time, what I wrote therein. 1. Cash flow: Did adjustment in operating expenses, calculated WC movement and drawn final balance. 2. Explained few silly points on each of the workings. 3. Ethics: Mentioned IAS40 can be used as lease to ensure rental earnings. But measurement of FV was not currect as non financial asset can be measured as their ‘highest and best use. Mentioned ethical issues but not at my satisfaction level-what I could write. 4. On DT only mentioned several definitions like tax computation, TAX base, DTaxLib, Temp Tax lib. Tried to say something on scenario. In exam condition to attend such horrific set of questions was put myself down and frustrated. Now become confused about my ongoing preparation for this and other professional exams!

@kbourne said: I think it stated in the question they valued using fair values. but I think the issue was they over valued to avoid the breach of covenants and should have used the professional valuers valuation of 22 million. Think the lease was thrown in there to test your understanding of the IAS as per your point 1

Phew. I talked about IFRS 13 level 1 level 2 valuations and IAS 1 how the breach of covenant could lead to current liabilities. I didn't talk about the lease Itself though

Also, it was technically a sale and leaseback transaction. I wrote something about them but not too much. Really struggled with time to write. Overall, I've felt the exam was pretty unfair, to be honest. Whilst you could possibly defend question 1, question 4 is absolutely indefensible. Was this really trial sat? And by whom? I recall I read a few times that current issues were going to be tested less in SBR than P2. Not only is that not true in the slightest and they were featured just much, but the questions were basically knowledge based rather than principles based like in P2! And they were all compulsory for good measure. I suspect the next few sessions will be just as hard if not harder, I'm afraid. ACCA clearly does not intend to make the qualification any easier than it was, and this is basically to offset the fact there are just 13 exams, not 14. The first paper could just have been a gift for the brave... Also, P2 was a very challenging exam but you could feel it tested your accounting skills to the highest limit possible, and it was usually very fair (even though I marginally failed it). There was something prestigious about it. This one doesn't feel like a real test of accounting skills but a weird exam which aspires to be practical and forward-looking but is it, really? Now, it is basically testing how many obscure areas of the syllabus you have covered, how lucky you are and how fast you can write.

This paper was not fair. I learnt all the accounting standards - IAS, IFRS: you name it. But a 7 mark question on IAS 2? Are you serious? So you’re saying someone can know IFRS 16 but not know IAS 2 and fail? And conceptual framework embedded in all questions pretty much - really not fair. So someone who knows conceptual framework but can’t do a consol BS/PL or know harder IFRS can pass and be an ACCA accountant? compared to someone who doesn’t read the news? 14 marks on the most vague deferred tax question? Honestly ACCA, I’m quitting altogether - stop stealing my money. I don’t want to be an ACCA accountant where people pass cos they know “concept”ual framework. P2 was better in that respect, it actually made sure you knew your accounting and standards and how to make a proper consolidated account. If you haven’t gathered - hardest and weirdest ACCA paper

Yes it was a daft exam in my opinion, way too much on IFRS etc, and realistically, who can remember all of them and the details in them? Moreover it’s not applicable to real life work, ive worked with some very small professionals who still need to look up a standard in order to treat a transaction in such a way, no one is expected to memorise them all ? I read the comments from the September exam and they had a goodwill consol and cash flow question, this is what I’d expect. Today’s exam was all kings if wrong imo

Sorry to hear guys that this paper was absolutely dreadful. I took the final P2 sitting and the contents off my memory were: - consolidation SOFP - 35 marks - UK question on associate accounting - ethics question - IFRS 9 - Deferred tax on FRS102 vs IFRS SME’s - revenue/lease question - IAS 39 provisions So comparing my exam which had much more of what P2/SBR is about, they ask you a bunch of knowledge areas on the framework and ED’s?? That’s unfair and not a representation of what the syllabus is about. So you could’ve entered this exam not knowing any consolidation? I hope this is looked into for the sake of everyone who took it. I’m wishing you all the best guys regardless :)