SBR requires you to apply relevant knowledge and skills gained from previous papers to evaluate financial reporting principles and practices in a range of business contexts and situations.
On successful completion of this paper, candidates should be able to:
- Apply fundamental ethical and professional principles to ethical dilemmas and discuss the consequences of unethical behaviour
- Evaluate the appropriateness of the financial reporting framework and critically discuss changes in accounting regulation
- Apply professional judgement in the reporting of the financial performance of a range of entities
- Prepare the financial statements of groups of entities
- Interpret financial statements for different stakeholders
- Communicate the impact of changes and potential changes in accounting regulation on financial reporting
The SBR exam is a 3 hour 15 minute written exam.
There are 2 sections.
Section A will consist of two scenario based questions that will total 50 marks.
- The first question will be based on the financial statements of group entities, or extracts there of and is also likely to require consideration of some financial reporting issues. Candidates should understand that in addition to the consideration of the numerical aspects of group accounting (max 25 marks), a discussion and explanation of these numbers will also be required.
- The second question in Section A will require candidates to consider the reporting implications and the ethical implications of specific events in a given scenario.
Section B will consist of two questions, which may be scenario or case-study or essay based and will contain both discursive and computational elements.
- Section B could deal with any aspect of the syllabus but will always include either a full question, or part of a question, that requires the appraisal of financial and/or non-financial information from either the preparer or another stakeholder perspective.
Two professional marks will be awarded to both the ethical issues question in Section A and the question in Section B that requires analysis.
The current issues element of the paper may be examined in Section A or B but will not be a full question; it is more likely to form part of another question.
SBR builds directly on the material covered in financial reporting at previous levels.
Key differences between this paper and papers at previous levels are:
- Considerably more material on consolidations
- Knowledge of accounting standards needs to be more ‘in depth’
- Questions tend to require more analysis and the exercising of judgment
- Introduction of international issues
- Introduction of current developments
Will be applicable to those students going on to sit Advanced Audit & Assurance (AAA).
Read through your FR materials, as this will be assumed knowledge.