SBR*** March 2023 ACCA SBR exam – Instant Poll and comments ***

very time challenging paper

did you guys get apm yarah co

what did everyone get for the Goodwill calculation?

Q1 Impairment review + associate Q2 Ethics about FD appointed as NED Q3 Revenue Q4 restructuring cost + pandemic incremental cost Somewhere I had investment property and IA16 PPE recognition. Thats what I could remember. This was a very challenging exam and probably one of the hardest ACCA exams yet.

Section B Q1 was on APMs and the need to re calculate ‘adjusted profit’ due to a restructuring and a pandemic. The skeleton provided was a bit weird and I didn’t know where to put the adjustments… some costs were included in the adjustments which were not related and we had to remove them and explain why they should be excluded from the adjustments. Section B Q2 was the sale of a Park and how the deferred revenue (probability of future profits receivable) should have been accounted. I used EV to calculate at start and at end, and increased the deferred revenue at year end. Then there was a question on the valuation of a building (PPE) and the land. Not sure I got the right figures but the value I got for building was $5.5m and land $15m… not quite sure because the building was at cost of 30.5m at start. The impairment/depreciation seems huge (30.5-5.5). Section A Q1 goodwill. Then impairment and reversal of impairment? Can’t remember. Then part 2 was on associate? I said that the other 60% could take decisions together and profits were shared equally. There was also a calculation question but I didn’t have time to attend this question… Section A Q2 ethics was ok-ish Let’s just hope I get enough marks to pass! I’m sitting for APM this June 2023, if anyone is willing to be my study buddy, feel free to send me a message on scarlet.ed.v@gmail.com, thxs.

2 or 3 questions about financial instruments ???? 25marks for segmental reporting, really? Kaplan only mentioned segment reporting as far as I remember. Cash flows in question 3. There were no leases, revenue, employee benefits, deferred tax, share based payments etc To me the exam was only about a few standards. Sooo challenging, don’t think I will pass, did not see such questions in the exam kit

2 or 3 questions about financial instruments ???? 25marks for segment reporting, really? Kaplan only mentioned segmental reporting as far as I remember. Cash flows in question 3. There were no leases, revenue, employee benefits, deferred tax, share based payments etc To me the exam was only about a few standards. Sooo challenging, don’t think I will pass, did not see such questions in the exam kit

I had the same paper as you. There wasn't that much to say about operating segments, in my opinion? I added some things but not sure if it would be enough. No revenue or leases at all. The first question in Section B was also quite tricky Fernanda Co. Totally messed up that one.

25 marks for segment reporting was just a bit too much considering it’s a small topic A little bit of cashflows which was tricky how ever number 1 & 2 were fairly okay

So many questions Testing IFRS 9 and IFRS 32 financial instruments. I felt that the exam was too challenging for the allotted time. So many hours studying with the revision kit and I still felt unprepared. Very tough paper.

Very time challenging exam indeed! There was so much going-on, you need a lot of time even to read and try to assimilate all the information before proceeding with any answer - especially if requirements are not that straight-forward and similar to the ones that you have practiced upon. First case was goodwill and reversal of goodwill impairment - never thought this will appear! Then associate and facts that could mislead for step-acquisition. Revenue recognition, PPE (Components?, seriously?), Investment property. Ethics was about NED being appointed in audit committee - seriously again? I thought this is more an SBL, AAA thing. APMs last question was something never seen before - with restructuring costs and incremental pandemic ones, due to cause of pandemic. This was the hardest and most challenging thing I’ve ever seen in ACCA so far :) Good luck to all, if we manage to pass this one, that’s an achievement for sure!

L

The 25 marks on segment reporting really disappointed me, the exam was pretty challenging. Not enough time :(

Struggled on every section. Pretty demoralising. First time sitting SBR, felt prepared and understood all the standards. No questions on revenue, SBP, tax, leases, pensions, barely touched on PPE. 1st question 10 describing marks about why they were business acquirer, ugly step acquisition with goodwill and a confusing change in financial instrument etc 25 marks on segment reporting and a difficult cash flow question. Not a chance of a pass - hoping June sitting is a broader exam.

Yes! Same here! I felt prepared and I will fail. I struggled with every question, even the first one for 10 marks (!) - no idea what they wanted me to write to get 10/10. Too little time to comfortably complete the exam. Really disappointed and upset.

Couldn’t agree more, feel the exact same. Segments is a few pages in a 700 page Kaplan book, was not expecting 25% of my exam to be based on this. Completely unprepared.

What was the question about segments that you are mentioninf? I don’t seem to remember the particular quesiton/case about segment reporting question in the exam.

I got for question 1- goodwill calculation, there was a matter if contingent consideration payable to a director should be considered, I said yes and GW resulted in 1 mln. There was some impairment of assets - how they are treated in the financial sts of the entity and also in the consolidated statements- I wrote that any impairment is first allocated to GW and then on a proportionate rate to any assets, and then the question of reversal of ipairment, where I wrote that impairment of Gw is not reversed, and any reversal can happen as far as the amount does not exceed the carry amount considering the initial impairment has not happened. All amounts were provided. Q2 was about the issues in appointing as NED a retired lady, which basically had little idea of the company’s sector; also the same lady having some toughts about the use of AI and big data of the new company - I think here I messed it a little bit. What did you write here? Then I noticed I only have 1 hour left and so I panicked and there is little I can remember, altought I did not treat the requirements in detail, only superficial. There was some depreciation of PPE with multiple components and different useful life. There was something to re-calculate profit from some APM on a weird proforma given. Also, what principles should the entity use when disclosing APMs, I superficially mentioned about materiality, comparability, relevace….stuff like that. Another one was about some investment property- to discuss about the fair value measurement proposed (national rate x square meters)- the scenario did not offer much , only that similar buildings in the area is being sold….. I am curious to see what you can remember and your answers!

what was the question abt segment reporting and cash flows ?

Hi Mihaela, for Q1, i said yes for the $1m as well but added an assumption stating the CEO stays in the company for the 5 years. For the impairment i said that goodwill impairment cant be reversed and any increase should go in OCI. For Q2 there was a threat to her professional competence as she does not have much knowledge on big data? in the end i wrote that she shouldnt accept the position there thank God i didnt get the paper with segments...this topic is quite rare

Pretty hard paper, couldn't able to complete, definitely sitting for June exam. Messed up few questions. Can some tell me what was the question on segmental reporting and cash flows?

Exactly the same, can someone tell me what was the question on segmental reporting and cash flows.?? and no ethics question was there??

Yes i agree it was bit unexpected to get 25 marks for segments reporting considering it is a small topic of 1 page in the book , luckily i had revised literally the night before & was able to put some points. It also included a joint venture question in the segment reporting part. The cashflow was tricky, i just said the loan should be financial asset in investing activities. Net cash is considered when a subsidiary is acquired. The company had recorded the net cash incorrectly so we had to explain that. Other questions were okay.

I think there a few different papers/questions which we can get that is why some of you did not have segmental reporting. The question asked to define the use of it, whether segments could be combined and reasons why, etc

How was the ethics question treated ??

25 marks for the segmental reporting was an overkill. i had to call on all my reporting experience to come up with logical answers. Hopefully it's enough to pass. 7/10 for difficulty of the exam

On Q1, why was the deferred contingent payable to the CEO to be included in Goodwill, it’s not an Asset or liabilities of Sub. Was it not just a bonus/wages? Would have liked segmental reporting. Did not like the Q4 APM. Time pressured didn’t finish

Challenging exam, really complicated to finish in time taking into account a lot of reading. Overall very hard as extent of exam is not for 3hours and tasks were tricky. Chances to pass very minor and it is dissapointing as felt quite comfortable with knowledge but from accounting perspective comparatively small part was asked.

Didn't you get the ethics questions in Section A.

for IFRS 13 i said it as level 2 and gave some on level 2 inputs.