SBR examiner approach

Hi Sir

I have one quick question regarding exam approach. I read an article on ACCA website about the best way to approach your answer and it mention that

“A planning (and writing) approach that fits many SBR questions is the ‘state, apply, conclude’ approach – in other words:

State (in brief) the facts of the scenario and where relevant the requirements of a standard or other pronouncement

Apply the requirements to the facts of the scenario

Conclude with a recommendation (which may be the accounting treatment or an action to be taken) and, as required, an impact assessment (on identified stakeholders).

What does facts of the scenario mean? Does that mean the brief key considerations in question which we need to address? or does it simply mean explain requirement of applicable standard?