SBR*** December 2021 ACCA SBR exam – Instant Poll and comments ***

Hi, I sat the exam remote on 9th Dec - I got the football club question. I lost connection after 2 hours and my only option is to resit on Wednesday the 15th. Has anyone done this before? I am just wondering, would I be wise to focus on the questions other people received as stated in comments above, or will this be a completely unseen exam ? I would be grateful for any info. Tnx

Like many of the posters here, I too came out of the exam with the mindset that I need to prepare to resit. Seeing the footballer responses has me even more concerned, as I have treated it as an IA. I considered lease, but the fact that FC Grate would not stop him from leaving if he wanted to join another club inferred to me that they didn’t “control” the player. Furthermore they subtly threw in the comments about him “likely being fit” at the end of his contract (inferring no impairment) Having looked at football club balance sheets, this looks similar to the way in which they account for players (big sign on fee, up front cost to club, later paying deferred consideration, plus wages to player) Is there any particular reason why people went for lease rather than IA?

I also went for IA. There are a couple of questions I came across when studying that referred to football players as intangibles. I've also seen an article from the PQ magazine too. Whichever is correct or not, I think you'd still get some credit for explaining why we thought what we did.

I was also considering going for IA as in Kaplan exam kit there was a similar question with football players. However, I treated it as leasing as there was information that first 3 years of the contract it was a loan instead of sale. After the team decide to buy the player, then it would be treated as intangible asset. Although it may be wrong and correct treatment should be IA from the begining

In that footballer question, there was a line at the end which said something like: "Interest costs are currently 5%. This may help with your solution" The presence of interest rates, indicated to me that PV discounting was necessary which of course would be a PV liability for a lease I thought.

I thought about the discount rate but believed this to be in relation to the salary, as the salary is a contractual liability, it should be recorded on the SOFP at inception. Guess we will find out soon! Good luck all.

Reading back all of the comments - I’ve lost faith .. resit in March ?

100%! Grinds my gears so much that we get the results on a Sunday night. Ruins my Monday morning