SBRJune 2021 ACCA SBR exam was - Instant Poll and comments

One question I remember in section 4 that has not been mentioned, was the first one on entities that have digital assets and from an investors perspective. I expanded on the fact that from an investors perspective the intangible assets may not be shown on the balance sheet, due to the criteria for recognising. Therefore the entity has values that the investor can not see on the balance sheet. Especially if internally generated which is becoming more common etc. The standard setters are addressing this so a current issue question i guess. It then went onto intangible assets so felt like that was what they were hinting at. What did everyone else put?

Yes I got the revenue question. I told to measure the initial amount received as Deffered income and release over the period of time when the performance obligations are met since it's a service license. Also regarding the manufacturing and digital I mentioned about how manufacturers has alot of assets but digital companies don't have and specially since internally generated goodwill and brands can't be recognized as part in traditional financial reporting in the individual FS it will impact the comparability because it digital companies depend on their brand and goodwill alot hope that'll give me some marks

Also did anyone get the ethics Q regarding hedge accounting also? I just had no option but to just put in some pointers saying the effective portion goes through OCI and told to measure a loss of 2.5 in the OCI due to the exchange loss

ak2401 wrote:One question I remember in section 4 that has not been mentioned, was the first one on entities that have digital assets and from an investors perspective.

Yes yes yes. You like read my mind. I put exactly the same. Researched will be deducted in the PL which will show low total profit and investors may not like and etc...I think I this is like a current issue and mentioned it this is possible current issue.

Do you remember what was the question 4 intangible asset question?

Green & Animal one?

The shared based payment bit was tricky in question 1. The payment was due to the employees on service of another year. Therefore would of been vested over the year? Affecting profit. Think i got like 14.4 million or something. Wasnt too sure on that bit.

I'm not too sure about this exam. I ran out of time and rushed the last 2 qs. I could've done with another hour haha. The question comparing digital and manufacturing company's statements I used as a chance to talk about integrated reporting. I can't even remember the qs after that because I rushed them and briefly jotted things down. I actually didn't mind Section A. I could make a fair attempt at these. Section B was rushed and a complete mess for me

Just found this article and how it should be apportioned pre and post on acquisition so think ive done it half right. With post vested and in the p&l. Dont think i apportioned the pre bit can’t remember :( https://www.accaglobal.com/uk/en/student/exam-support-resources/professional-exams-study-resources/strategic-business-reporting/technical-articles/pandemic.html

barbadoshk wrote:How did anyone tackle this? I was so rushed time wise I feel I didn’t read the questions properly but I said the smaller ci wouldn’t have any capitalised development costs and mainly to Research expense p&ltge bigger co I said R for first 2 points, capitalise the production and expense the marketing .. random questions thru the whole sec B!

Also did something similar.

I thought it was ok, the APM exam yesterday was much more time pressured. I had Acquisiton, step acquisition and disposal for Q1, the IFRS15/Lease question which I kept re-reading as the IFRS15 only made sense if the contract was for 7 years with the first 5 domestic and the last 2 bother domestic and international , The film production one and the digital services one. The first question I found tough but had enough time to go back and finish the calculations at the end. Not sure if that was enough as the text was still pretty bad. I hope I passed them both as they are my last 2, good luck everyone

Overall it was a hard exam because of the time pressure, felt like i was not reading the exhibits properly and was rushing to answer the requirements. Had only 15/20min for the last question.

Can any one remember q2 part a or b Is it something related to investment property with an operating lease Ethics question was based on Crypto I can remember but forget about the 1st one Thank you

but they mentioned to ignore time value of money?

This was more general knowledge to pick from the scenario i think. i just talked about how digital companies have more intangible assets compared to Manufacts which have tangibles such as PPE as such accounting standards may vary. Also, revenue may be recognised differently as digital is more serviced based 'overtime revenue recognition' and manufacts create assets to transfer at a point in time in most cases. I pray we all pass in Jesus name, amen

How about the business or asset acquisition?

Purchase of property with lease that expired in the year and then held for redevelopment. So investment property. Think lease was under 12 months so just to p&l. Ethics crypto currency Aries creation. Confidentiality of use of customer details for Aries promotion. Money laundering concerns of Aries use so professional due care not to ignore? Unprofessional behaviour with audit committee and comments made?

avbosip wrote:

ak2401 wrote:One question I remember in section 4 that has not been mentioned, was the first one on entities that have digital assets and from an investors perspective.

This was more general knowledge to pick from the scenario i think. i just talked about how digital companies have more intangible assets compared to Manufacts which have tangibles such as PPE as such accounting standards may vary. Also, revenue may be recognised differently as digital is more serviced based ‘overtime revenue recognition’ and manufacts create assets to transfer at a point in time in most cases. I pray we all pass in Jesus name, amen

what did people say for question3 carbon emissions and the levy fines? I used Government grant and IAS 37

It was according to ED They use only single assets so its not a business combination will be asset acquisition I think so thank you

Thank you I thought I missed out the question 2 (a) and now can realise that it was based on investment property and I answered this question on the basis of Investmet property and changes of it's uses Gain recorded on P L and no Depreciation

if i remembers right that digital vs manufacturing question was specifically said, your answer should not use reference of any of the exhibits. I think you have mentioned about the difference of the revenue and assets etc were necessary as it explain the difference between the industries. to me, the value creation is the key word of the integrated reporting, there is a very similar question on revision kit. therefore, i have explained the IR then capitals, then difference between the sectors, assets, operation expenses, customer relationships.. these all fall into different type of the capitals mentioned under the IR. then Manufacturing sector performance measure normally use financial ratio analysis, non-financial measurement is useful to digital sectors such as customer satisfactory rate ect... lol it's finished now, so hopefully we will all pass. fingers crossed.

Yeah same thing. i think the integrated reporting gives a good framework to tackle the question but for 4mrks i was already struggling for time to say more than what i already did.

Thank you I This But I thought I did not answer this question Now I confirm that I answer all the questions little or more wish you the best for passing the SBR

barbadoshk wrote:

Jennie_fierz wrote:what did people say for question3 carbon emissions and the levy fines? I used Government grant and IAS 37

It was hard to make a call but i talked about how the scenario leaned towards both ROU asset and operating lease to pick up more marks hopefully. Then concluded by calling it an operating lease

i-acca wrote:I did this with the tech company because question was to compare the traditional manufacturing financial reporting and digital. So outlined the differences between the tech companies and normal companies as share holders will need more information and traditional financial reporting is not enough. Hopefully we all get some points ??

yeah i focused on IFRS 15 and ethics as it contained more easy marks to scrape through as i was already under time pressure

Very confusing exams! Had never seen questions like this in past papers. Pollutants emissions and intangible assets. These questions were rooted from hell!! It's a definite failure.

Question 4. I had revenue with the international and domestic elements and the operating lease over the three years. However I had no spreadsheet in the workspace for this question only wordprocesser so had to type out calculations on word and using the calculator. I invariably made an error but could not easily correct it as I would on a spreadsheet and didnt have time to do it again manually. Did others have the spreadsheet for this question?

Went ok.... it seems like the software is way better than the last CBE exam I took last September. It wasn’t as slow.

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