ACCA strategic business reporting practice and revision kit

lOMoARcPSD|3369405 ฀ ฀ ฀ ฀ ฀ ฀ ฀ Strategic฀Business Reporting Practice฀&฀Revision฀Kit BPP฀ Learning฀ Media฀ is฀ an฀ ACCA฀ Approved฀ Content฀ Provider฀ for฀ the฀ ACCA฀ qualification.฀ This฀ means฀ we฀ work฀ closely฀ with฀ ACCA฀ to฀ ensure฀ our฀ products฀fully฀prepare฀you฀for฀your฀ACCA฀exams.฀ In฀ this฀ Practice฀ &฀ Revision฀ Kit,฀ which฀ has฀ been฀ reviewed฀ by฀ the฀ ACCA฀ examining฀team,฀we:฀ ฀ Discuss฀the฀best฀strategies฀for฀revising฀and฀taking฀your฀ACCA฀exams฀ ฀ Ensure฀you฀are฀well฀prepared฀for฀your฀exam฀ ฀ Provide฀you฀with฀lots฀of฀great฀guidance฀on฀tackling฀questions฀฀฀฀ ฀ Provide฀you฀with฀five฀mock฀exams฀ For฀exams฀in฀September฀2018,฀December฀2018, March฀2019฀and฀June฀2019 ฀ ฀ Downloaded by Andriy Lyash (andriylyash@gmail.com) lOMoARcPSD|3369405 First฀edition฀2018฀ ฀ A฀note฀about฀copyright฀ ISBN฀9781฀5097฀1547฀3฀ Dear฀Customer฀ e-ISBN:฀9781฀5097฀1557฀2฀ ฀ What฀does฀the฀little฀©฀mean฀and฀why฀does฀it฀matter?฀ British฀Library฀Cataloguing-in-Publication฀Data 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limited.฀No฀part฀of฀this฀publication฀may฀be฀translated,฀ reprinted฀or฀reproduced฀or฀utilised฀in฀any฀form฀either฀in฀ whole฀or฀in฀part฀or฀by฀any฀electronic,฀mechanical฀or฀other฀ means,฀now฀known฀or฀hereafter฀invented,฀including฀ photocopying฀and฀recording,฀or฀in฀any฀information฀ storage฀and฀retrieval฀system,฀without฀prior฀permission฀in฀ writing฀from฀the฀IFRS฀Foundation.฀Contact฀the฀IFRS฀ Foundation฀for฀further฀details.฀ The฀IFRS฀Foundation฀logo,฀the฀IASB฀logo,฀the฀IFRS฀for฀ SMEs฀logo,฀the฀“Hexagon฀Device”,฀“IFRS฀Foundation”,฀ “eIFRS”,฀“IAS”,฀“IASB”,฀“IFRS฀for฀SMEs”,฀“IASs”,฀“IFRS”,฀ “IFRSs”,฀“International฀Accounting฀Standards”฀and฀ “International฀Financial฀Reporting฀Standards”,฀“IFRIC”฀ “SIC”฀and฀“IFRS฀Taxonomy”฀are฀Trade฀Marks฀of฀the฀ IFRS฀Foundation.฀ Further฀details฀of฀the฀Trade฀Marks฀including฀details฀of฀ countries฀where฀the฀Trade฀Marks฀are฀registered฀or฀ applied฀for฀are฀available฀from฀the฀Licensor฀on฀request.฀ ฀ ii฀ Downloaded by Andriy Lyash (andriylyash@gmail.com) lOMoARcPSD|3369405 Contents฀ Contents฀ Page฀ ฀ Finding฀questions฀ Question฀index฀ Topic฀index฀ iv฀ viii฀ Helping฀you฀with฀your฀revision฀ x฀ Essential฀skills฀areas฀to฀be฀successful฀in฀Strategic฀Business฀Reporting฀ xii฀ Further฀advice฀for฀revising฀for฀Strategic฀Business฀Reporting฀ xix฀ Section฀1:฀Preparation฀questions฀ Questions฀ Answers฀ 3฀ 103฀ Section฀2:฀Groups฀preparation฀questions฀ Questions฀ Answers฀ 18฀ 128฀ Section฀3:฀Exam-standard฀questions฀ Questions฀ Answers฀ 31฀ 149฀ Mock฀exams฀฀ Mock฀exam฀1฀ ฀ Questions฀ ฀ Answers฀ 365฀ 373฀ Mock฀exam฀2฀ ฀ Questions฀ ฀ Answers฀ 391฀ 399฀ Mock฀exam฀3฀฀ ฀ Questions฀ ฀ Answers฀ 415฀ 423฀ Mock฀exam฀4฀฀ ฀ Questions฀ ฀ Answers฀ 439฀ 447฀ Mock฀exam฀5฀(ACCA฀Specimen฀exam)฀฀ ฀ Questions฀ ฀ Answers฀ 461฀ 471฀ Mathematical฀tables฀ 485฀ Review฀form฀ iii Downloaded by Andriy Lyash (andriylyash@gmail.com) lOMoARcPSD|3369405 ฀ ฀ Essential฀skills฀areas฀to฀be฀successful฀in฀Strategic฀ Business฀Reporting฀ There฀ are฀ three฀ areas฀ you฀ should฀ develop฀ in฀ order฀ to฀ achieve฀ exam฀ success฀ in฀ Strategic฀ Business฀ Reporting.฀As฀a฀reminder,฀these฀are:฀฀ (1)฀ (2)฀ (3)฀ Knowledge฀application฀ Specific฀Strategic฀Business฀Reporting฀skills฀ Exam฀success฀skills฀ At฀the฀revision฀and฀final฀exam฀preparation฀phases฀these฀should฀be฀developed฀together฀as฀part฀ of฀a฀comprehensive฀study฀plan฀of฀focused฀question฀practice.฀ Take฀ some฀ time฀ to฀ revisit฀ the฀ Specific฀ Strategic฀ Business฀ Reporting฀ skills฀ and฀ Exam฀ success฀ skills.฀These฀are฀shown฀in฀the฀diagram฀below฀and฀followed฀by฀tutorial฀guidance฀of฀how฀to฀apply฀them.฀฀ aging information Man Creating effective discussion Exam success skills Specific SBR skills Applying good consolidation techniques Performing financial analysis Co ti e c re Eff d p an ve s e w r it nt in g at i on Resolving financial reporting issues r re c o f t i n te re q r p re t a t i o n u ire m e nts Approaching ethical issues pl g nin an Good ti manag me em en t An sw er Efficient numerica analysis l ฀ Specific฀Strategic฀Business฀Reporting฀skills฀–฀reminder฀ These฀are฀the฀skills฀specific฀to฀SBR฀that฀we฀think฀you฀need฀to฀develop฀in฀order฀to฀pass฀the฀exam.฀ In฀ the฀ BPP฀ Strategic฀ Business฀ Reporting฀ Workbook,฀ there฀ are฀ five฀ Skills฀ Checkpoints฀ which฀ define฀ each฀ skill฀ and฀ show฀ how฀ it฀ is฀ applied฀ in฀ answering฀ a฀ question.฀ A฀ brief฀ summary฀ of฀ each฀ skill฀ is฀ given฀ below.฀฀ Skill฀1:฀Approaching฀ethical฀issues฀ Question฀2฀in฀Section฀A฀of฀the฀exam฀will฀require฀you฀to฀consider฀the฀reporting฀implications฀and฀the฀ ethical฀ implications฀ of฀ specific฀ events฀ in฀ a฀ given฀ scenario.฀ The฀ two฀ Section฀ B฀ questions฀ could฀ deal฀ with฀any฀aspect฀of฀the฀syllabus.฀Therefore,฀ethics฀could฀feature฀in฀this฀part฀of฀the฀exam฀too.฀฀ Given฀that฀ethics฀will฀feature฀in฀every฀exam,฀it฀is฀essential฀that฀you฀master฀the฀appropriate฀technique฀for฀ approaching฀ethical฀issues฀in฀order฀to฀maximise฀your฀mark.฀ BPP฀recommends฀a฀step-by-step฀technique฀for฀approaching฀questions฀on฀ethical฀issues:฀ STEP 1฀ Work฀out฀how฀many฀minutes฀you฀have฀to฀answer฀the฀question.฀ ฀ STEP 2฀ ฀ Read฀the฀requirement฀and฀analyse฀it.฀ xii฀ Downloaded by Andriy Lyash (andriylyash@gmail.com) lOMoARcPSD|3369405 Essential฀skills฀ ฀ STEP 3฀ STEP 4฀ STEP 5฀ Read฀the฀scenario,฀identify฀which฀IAS฀or฀IFRS฀may฀be฀relevant, whether฀the฀proposed฀ ฀ accounting฀treatment฀complies฀with฀that฀IAS฀or฀IFRS฀and฀whether฀there฀are฀any฀threats฀to฀ the฀fundamental฀ethical฀principles.฀ ฀ ฀ Prepare฀an฀answer฀plan฀using฀key฀words฀from฀the฀requirements฀as฀headings ฀ Write฀up฀your฀answer฀using฀key฀words฀from฀the฀requirements฀as฀headings.฀ Skills฀Checkpoint฀1฀in฀the฀BPP฀Workbook฀for฀Strategic฀Business฀Reporting฀covers฀this฀technique฀in฀detail฀ through฀application฀to฀an฀exam-standard฀question.฀Consider฀revisiting฀Skills฀Checkpoint฀1฀and฀ completing฀the฀scenario-based฀question฀to฀specifically฀improve฀this฀skill.฀ Skill฀2:฀Resolving฀financial฀reporting฀issues฀฀฀ Financial฀ reporting฀ issues฀ are฀ highly฀ likely฀ to฀ be฀ tested฀ in฀ both฀ sections฀ of฀ your฀ Strategic฀ Business฀ Reporting฀exam,฀so฀it฀is฀essential฀that฀you฀master฀the฀skill฀for฀resolving฀financial฀reporting฀issues฀in฀order฀ to฀maximise฀your฀chance฀of฀passing฀the฀exam.฀ The฀basic฀approach฀BPP฀recommends฀for฀resolving฀financial฀reporting฀issues฀is฀very฀similar฀to฀the฀one฀for฀ ethical฀ issues.฀ This฀ consistency฀ is฀ important฀ because฀ in฀ Question฀ 2฀ of฀ the฀ exam,฀ both฀ will฀ be฀ tested฀ together.฀฀ STEP 1฀ Work฀out฀how฀many฀minutes฀you฀have฀to฀answer฀the฀question.฀ ฀ STEP 2฀ STEP 3฀ STEP 4฀ STEP 5฀ ฀ ฀ ฀ ฀ Read฀the฀requirement฀and฀analyse฀it,฀identifying฀sub-requirements.฀ Read฀the฀scenario,฀identifying฀relevant฀IASs฀or฀IFRSs฀and฀their฀application฀to฀the฀scenario Prepare฀an฀answer฀plan฀ensuring฀that฀you฀cover฀each฀of฀the฀issues฀raised฀in฀the฀scenario.฀ Write฀up฀your฀answer,฀using฀separate฀headings฀for฀each฀item฀in฀the฀scenario.฀ Skills฀Checkpoint฀2฀in฀the฀BPP฀Workbook฀for฀Strategic฀Business฀Reporting฀covers฀this฀technique฀in฀detail฀ through฀application฀to฀an฀exam-standard฀question.฀Consider฀revisiting฀Skills฀Checkpoint฀2฀and฀ completing฀the฀scenario฀based฀question฀to฀specifically฀improve฀this฀skill.฀ Skill฀3:฀Applying฀good฀consolidation฀techniques฀ Question฀ 1฀ of฀ Section฀ A฀ of฀ the฀ exam฀ will฀ be฀ based฀ on฀ the฀ financial฀ statements฀ of฀ group฀ entities,฀ or฀ extracts฀thereof.฀Section฀B฀of฀the฀exam฀could฀deal฀with฀any฀aspect฀of฀the฀syllabus฀so฀it฀is฀also฀possible฀ that฀groups฀feature฀in฀Question฀3฀or฀4.฀ Good฀ consolidation฀ techniques฀ are฀ therefore฀ essential฀ when฀ answering฀ both฀ written฀ and฀ numerical฀ aspects฀of฀group฀questions.฀ Skills฀ Checkpoint฀ 3฀ focuses฀ on฀ the฀ more฀ challenging฀ technique฀ for฀ correcting฀ errors฀ in฀ group฀ financial฀ statements฀that฀have฀already฀been฀prepared.฀ A฀step-by-step฀technique฀for฀applying฀good฀consolidation฀techniques฀is฀outlined฀below.฀฀ STEP 1฀ Work฀out฀how฀many฀minutes฀you฀have฀to฀answer฀the฀question.฀ ฀ STEP 2฀ Read฀the฀requirement฀for฀each฀part฀of฀the฀question฀and฀analyse฀it,฀identifying฀฀ ฀ sub-requirements.฀ ฀ xiii฀ Downloaded by Andriy Lyash (andriylyash@gmail.com) lOMoARcPSD|3369405 ฀ ฀ STEP 3฀ Read฀the฀scenario,฀identify฀exactly฀what฀information฀has฀been฀provided฀and฀what฀you฀ ฀ need฀to฀do฀with฀this฀information.฀Identify฀which฀consolidation฀workings/adjustments฀may฀ be฀required.฀ STEP 4฀ Draw฀up฀a฀group฀structure.฀Make฀notes฀in฀the฀margins฀of฀the฀question฀as฀to฀which฀ ฀ consolidation฀working,฀adjustment฀or฀correction฀to฀error฀is฀required.฀Do฀not฀perform฀any฀ detailed฀calculations฀at฀this฀stage.฀ STEP 5฀ Write฀up฀your฀answer฀using฀key฀words฀from฀the฀requirements฀as฀headings฀(if฀preparing฀ ฀ narrative).฀Perform฀calculations฀first,฀then฀explain.฀Remember฀that฀marks฀will฀be฀available฀ for฀a฀discussion฀of฀the฀principles฀underpinning฀any฀calculations.฀ Skills฀Checkpoint฀3฀in฀the฀BPP฀Workbook฀for฀Strategic฀Business฀Reporting฀covers฀this฀technique฀in฀detail฀ through฀application฀to฀an฀exam-standard฀question.฀Consider฀revisiting฀Skills฀Checkpoint฀3฀and฀ completing฀the฀scenario฀based฀question฀to฀specifically฀improve฀this฀skill.฀฀ Skill฀4:฀Performing฀financial฀analysis฀ Section฀ B฀ of฀ the฀ SBR฀ exam฀ will฀ contain฀ 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฀ appraisal฀ of฀ financial฀ or฀ non-financial฀ information฀ from฀ either฀ the฀ preparer's฀ and/or฀ another฀ stakeholder's฀ perspective.฀ Two฀ professional฀ marks฀ will฀ be฀ awarded฀ to฀ the฀ question฀ in฀ Section฀ B฀ that฀ requires฀analysis.฀ Given฀ that฀ appraisal฀ of฀ financial฀ and/or฀ non-financial฀ information฀ will฀ feature฀ in฀ Section฀ B฀ of฀ every฀ exam,฀it฀is฀essential฀that฀you฀have฀mastered฀the฀appropriate฀technique฀in฀order฀to฀maximise฀your฀chance฀ of฀passing฀the฀SBR฀exam.฀ A฀step-by-step฀technique฀for฀performing฀financial฀analysis฀is฀outlined฀below.฀฀ STEP 1฀ Work฀out฀how฀many฀minutes฀you฀have฀to฀answer฀the฀question฀ ฀ STEP 2฀ STEP 3฀ STEP 4฀ STEP 5฀ ฀ ฀ ฀ ฀ Read฀and฀analyse฀the฀requirement฀ Read฀and฀analyse฀the฀scenario฀ Prepare฀an฀answer฀plan฀ Write฀up฀your฀answer฀ Skills฀Checkpoint฀4฀in฀the฀BPP฀Workbook฀for฀Strategic฀Business฀Reporting฀covers฀this฀technique฀in฀detail฀ through฀application฀to฀an฀exam-standard฀question.฀Consider฀revisiting฀Skills฀Checkpoint฀4฀and฀ completing฀the฀scenario฀based฀question฀to฀specifically฀improve฀this฀skill.฀ Skill฀5:฀Creating฀effective฀discussion฀฀ Significantly฀ more฀ marks฀ in฀ the฀ Strategic฀ Business฀ Reporting฀ exam฀ will฀ relate฀ to฀ written฀ answers฀ than฀ numerical฀ answers.฀ It฀ is฀ very฀ tempting฀ to฀ only฀ practise฀ numerical฀ questions฀ as฀ they฀ are฀ easy฀ to฀ mark฀ because฀ the฀ answer฀ is฀ right฀ or฀ wrong,฀ whereas฀ written฀ questions฀ are฀ more฀ subjective฀ and฀ a฀ range฀ of฀ different฀answers฀will฀be฀given฀credit.฀Even฀when฀attempting฀written฀questions,฀it฀is฀tempting฀to฀write฀a฀ brief฀ answer฀ plan฀ and฀ then฀ look฀ at฀ the฀ answer฀ rather฀ than฀ writing฀ a฀ full฀ answer฀ to฀ plan.฀ Unless฀ you฀ practise฀ written฀ questions฀ in฀ full฀ to฀ time,฀ you฀ will฀ never฀ acquire฀ the฀ necessary฀ skills฀ to฀ tackle฀ discussion฀ questions.฀ The฀basic฀five฀steps฀adopted฀in฀Skills฀Checkpoint฀4฀should฀also฀be฀used฀in฀discussion฀questions.฀฀ xiv฀ Downloaded by Andriy Lyash (andriylyash@gmail.com) lOMoARcPSD|3369405 Essential฀skills฀ ฀ Steps฀ 2฀ and฀ 4฀ are฀ particularly฀ important฀ for฀ discussion฀ questions.฀ You฀ will฀ definitely฀ need฀ to฀ spend฀ a฀ third฀ of฀ your฀ time฀ reading฀ and฀ planning.฀ Generating฀ ideas฀ at฀ the฀ planning฀ stage฀ to฀ create฀ a฀ comprehensive฀ answer฀ plan฀ will฀ be฀ the฀ key฀ to฀ success฀ in฀ this฀ style฀ of฀ question.฀ Consideration฀ of฀ the฀ Conceptual฀ Framework,฀ ethical฀ principles฀ and฀ the฀ perspective฀ of฀ stakeholders฀ will฀ often฀ help฀ with฀ discursive฀questions฀in฀SBR.฀ Skills฀Checkpoint฀5฀in฀the฀BPP฀Workbook฀for฀Strategic฀Business฀Reporting฀covers฀this฀technique฀in฀detail฀ through฀application฀to฀an฀exam-standard฀question.฀Consider฀revisiting฀Skills฀Checkpoint฀5฀and฀ completing฀the฀scenario฀based฀question฀to฀specifically฀improve฀this฀skill.฀ Exam฀success฀skills฀฀ Passing฀the฀SBR฀exam฀requires฀more฀than฀applying฀syllabus฀knowledge฀and฀demonstrating฀the฀Specific฀ SBR฀skills;฀it฀also฀requires฀the฀development฀of฀excellent฀exam฀technique฀through฀question฀practice.฀฀ We฀consider฀the฀following฀six฀skills,฀or฀exam฀techniques,฀to฀be฀vital฀for฀exam฀success.฀These฀skills฀were฀ introduced฀in฀the฀BPP฀Workbook฀and฀you฀can฀revisit฀the฀five฀Skills฀Checkpoints฀in฀the฀BPP฀Workbook฀for฀ tutorial฀guidance฀of฀how฀to฀apply฀each฀of฀the฀six฀Exam฀success฀skills฀in฀your฀question฀practice฀and฀in฀the฀ exam.฀ Aim฀ to฀ consider฀ your฀ performance฀ in฀ all฀ six฀ Exam฀ success฀ skills฀ during฀ your฀ revision฀ stage฀ question฀ practice฀and฀reflect฀on฀your฀particular฀strengths฀and฀weaker฀areas฀which฀you฀can฀then฀work฀on.฀ Exam฀success฀skill฀1฀ Managing฀information฀ Questions฀ in฀ the฀ exam฀ will฀ present฀ you฀ with฀ a฀ lot฀ of฀ information.฀ The฀ skill฀ is฀ how฀ you฀ handle฀ this฀ information฀to฀make฀the฀best฀use฀of฀your฀time.฀The฀key฀is฀determining฀how฀you฀will฀approach฀the฀exam฀ and฀then฀actively฀reading฀the฀questions.฀ Advice฀on฀Managing฀information฀฀ Approach฀ The฀ exam฀ is฀ 3฀ hours฀ 15฀ minutes฀ long.฀ There฀ is฀ no฀ designated฀ 'reading'฀ time฀ at฀ the฀ start฀ of฀ the฀ exam,฀ however,฀ one฀ approach฀ that฀ can฀ work฀ well฀ is฀ to฀ start฀ the฀ exam฀ by฀ spending฀ 10–15฀ minutes฀ carefully฀ reading฀through฀all฀of฀the฀questions฀to฀familiarise฀yourself฀with฀the฀exam.฀฀ Once฀you฀feel฀familiar฀with฀the฀exam,฀consider฀the฀order฀in฀which฀you฀will฀attempt฀the฀questions;฀always฀ attempt฀them฀in฀your฀order฀of฀preference฀–฀for฀example,฀you฀may฀want฀to฀leave฀to฀last฀the฀question฀you฀ consider฀to฀be฀the฀most฀difficult.฀ If฀ you฀ do฀ take฀ this฀ approach,฀ remember฀ to฀ adjust฀ the฀ time฀ available฀ for฀ each฀ question฀ appropriately฀ –฀ see฀Exam฀success฀skill฀6:฀Good฀time฀management.฀ If฀you฀find฀that฀this฀approach฀doesn't฀work฀for฀you,฀don't฀worry฀–฀you฀can฀develop฀your฀own฀technique.฀฀ Active฀reading฀ You฀must฀take฀an฀active฀approach฀to฀reading฀each฀question.฀Focus฀on฀the฀requirement฀first,฀underlining฀ key฀ verbs,฀ for฀ example,฀ prepare,฀ comment,฀ explain฀ or฀ discuss,฀ to฀ ensure฀ you฀ answer฀ the฀ question฀ properly.฀ Then฀ read฀ the฀ rest฀ of฀ the฀ question,฀ underlining฀ and฀ annotating฀ important฀ and฀ relevant฀ information,฀and฀making฀notes฀of฀any฀relevant฀technical฀information฀you฀think฀you฀will฀need.฀ Exam฀success฀skill฀2฀ Correct฀interpretation฀of฀the฀requirements฀฀฀฀ The฀active฀verb฀used฀often฀dictates฀the฀approach฀that฀written฀answers฀should฀take฀(eg฀'explain',฀'discuss',฀ 'evaluate').฀ It฀ is฀ important฀ you฀ identify฀ and฀ use฀ the฀ verb฀ to฀ define฀ your฀ approach.฀ The฀ Correct฀ interpretation฀ of฀ the฀ requirements฀skill฀is฀correctly฀producing฀only฀what฀is฀being฀asked฀for฀by฀a฀ requirement.฀Anything฀not฀required฀will฀not฀earn฀marks.฀฀ ฀ xv฀ Downloaded by Andriy Lyash (andriylyash@gmail.com) lOMoARcPSD|3369405 ฀ ฀ Advice฀on฀Correct฀interpretation฀of฀the฀requirements฀฀฀฀ This฀skill฀can฀be฀developed฀by฀analysing฀question฀requirements฀and฀applying฀this฀process:฀ Step฀1฀ Read฀the฀requirement฀ Firstly,฀ read฀ the฀ requirement฀ a฀ couple฀ of฀ times฀ slowly฀ and฀ carefully฀ and฀ highlight฀ the฀ active฀verbs.฀Use฀the฀active฀verbs฀to฀define฀what฀you฀plan฀to฀do.฀Make฀sure฀you฀identify฀ any฀sub-requirements.฀฀ Step฀2฀ Read฀the฀rest฀of฀the฀question฀ By฀reading฀the฀requirement฀first,฀you฀will฀have฀an฀idea฀of฀what฀you฀are฀looking฀out฀for฀ as฀ you฀ read฀ through฀ the฀ case฀ overview฀ and฀ exhibits.฀ This฀ is฀ a฀ great฀ time฀ saver฀ and฀ means฀you฀don't฀end฀up฀having฀to฀read฀the฀whole฀question฀in฀full฀twice.฀You฀should฀do฀ this฀in฀an฀active฀way฀–฀see฀Exam฀success฀skill฀1:฀Managing฀information.฀ Step฀3฀ Read฀the฀requirement฀again฀ Read฀the฀requirement฀again฀to฀remind฀yourself฀of฀the฀exact฀wording฀before฀starting฀your฀ written฀ answer.฀ This฀ will฀ capture฀ any฀ misinterpretation฀ of฀ the฀ requirements฀ or฀ any฀฀ requirements฀ missed฀ entirely.฀ This฀ should฀ become฀ a฀ habit฀ in฀ your฀ approach฀ and,฀ with฀ repeated฀practice,฀you฀will฀find฀the฀focus,฀relevance฀and฀depth฀of฀your฀answer฀plan฀will฀ improve.฀ Exam฀success฀skill฀3฀ Answer฀planning:฀Priorities,฀structure฀and฀logic฀฀฀฀ This฀ skill฀ requires฀ the฀ planning฀ of฀ the฀ key฀ aspects฀ of฀ an฀ answer฀ which฀ accurately฀ and฀ completely฀ responds฀to฀the฀requirement.฀฀ Advice฀on฀Answer฀planning:฀Priorities,฀structure฀and฀logic฀฀฀฀ Everyone฀ will฀ have฀ a฀ preferred฀ style฀ for฀ an฀ answer฀ plan.฀ For฀ example,฀ it฀ may฀ be฀ a฀ mind฀ map,฀ bulletpointed฀lists฀or฀simply฀annotating฀the฀question.฀Choose฀the฀approach฀that฀you฀feel฀most฀comfortable฀with฀ or฀ if฀ you฀ are฀ not฀ sure,฀ try฀ out฀ different฀ approaches฀ for฀ different฀ questions฀ until฀ you฀ have฀ found฀ your฀ preferred฀style.฀฀ For฀a฀discussion฀question,฀annotating฀the฀question฀is฀likely฀to฀be฀insufficient.฀It฀would฀be฀better฀to฀draw฀ up฀a฀separate฀answer฀plan฀in฀the฀format฀of฀your฀choosing฀(eg฀a฀mind฀map฀or฀bullet-pointed฀lists).฀For฀a฀ groups฀ question,฀ you฀ will฀ typically฀ spend฀ less฀ time฀ planning฀ than฀ for฀ a฀ discussion฀ type฀ question.฀ You฀ should฀aim฀to฀draw฀up฀the฀group฀structure.฀Then,฀rather฀than฀drawing฀up฀a฀formal฀plan,฀the฀best฀use฀of฀ your฀ time฀ is฀ to฀ annotate฀ the฀ question฀ margins฀ noting฀ which฀ group฀ working,฀ adjustment฀ or฀ correction฀ of฀ error฀will฀be฀required.฀ Exam฀success฀skill฀4฀ ฀ Efficient฀numerical฀analysis฀฀฀฀ This฀ skill฀aims฀to฀maximise฀the฀marks฀awarded฀by฀making฀clear฀to฀the฀marker฀the฀process฀of฀arriving฀at฀ your฀answer.฀This฀is฀achieved฀by฀laying฀out฀an฀answer฀such฀that,฀even฀if฀you฀make฀a฀few฀errors,฀you฀can฀ still฀ score฀ subsequent฀ marks฀ for฀ follow-on฀ calculations.฀ It฀ is฀ vital฀ that฀ you฀ do฀ not฀ lose฀ marks฀ purely฀ because฀the฀marker฀cannot฀follow฀what฀you฀have฀done.฀฀ xvi฀ Downloaded by Andriy Lyash (andriylyash@gmail.com) lOMoARcPSD|3369405 Essential฀skills฀ ฀ Advice฀on฀Efficient฀numerical฀analysis฀ This฀skill฀can฀be฀developed฀by฀applying฀the฀following฀process:฀ Step฀1฀ Use฀a฀standard฀proforma฀working฀where฀relevant฀ If฀answers฀can฀be฀laid฀out฀in฀a฀standard฀proforma฀then฀always฀plan฀to฀do฀so.฀This฀will฀ help฀ the฀ marker฀ to฀ understand฀ your฀ working฀ and฀ allocate฀ the฀ marks฀ easily.฀ It฀ will฀ also฀ help฀you฀to฀work฀through฀the฀figures฀in฀a฀methodical฀and฀time-efficient฀way.฀ Step฀2฀ ฀ Show฀your฀workings฀ Keep฀ your฀ workings฀ as฀ clear฀ and฀ simple฀ as฀ possible฀ and฀ ensure฀ they฀ are฀ crossreferenced฀ to฀ the฀ main฀ part฀ of฀ your฀ answer.฀ Where฀ it฀ helps,฀ provide฀ brief฀ narrative฀ explanations฀to฀help฀the฀marker฀understand฀the฀steps฀in฀the฀calculation.฀This฀means฀that฀ if฀ a฀ mistake฀ is฀ made฀ then฀ you฀ do฀ not฀ lose฀ any฀ subsequent฀ marks฀ for฀ follow-on฀ calculations.฀ Step฀3฀฀ Keep฀moving!฀ It฀is฀important฀to฀remember฀that,฀in฀an฀exam฀situation,฀it฀is฀difficult฀to฀get฀every฀number฀ 100%฀ correct.฀ The฀ key฀ is฀ therefore฀ ensuring฀ you฀ do฀ not฀ spend฀ too฀ long฀ on฀ any฀ single฀ calculation.฀If฀you฀are฀struggling฀with฀a฀solution฀then฀make฀a฀sensible฀assumption,฀state฀ it฀and฀move฀on.฀฀ ฀ Exam฀success฀skill฀5฀ Effective฀writing฀and฀presentation฀฀฀฀ Written฀ answers฀ should฀ be฀ presented฀ so฀ that฀ the฀ marker฀ can฀ clearly฀ see฀ the฀ points฀ you฀ are฀ making,฀ presented฀ in฀ the฀ format฀ specified฀ in฀ the฀ question.฀ The฀ skill฀ is฀ to฀ provide฀ efficient฀ written฀ answers฀ with฀ sufficient฀breadth฀of฀points฀that฀answer฀the฀question,฀in฀the฀right฀depth,฀in฀the฀time฀available.฀ Advice฀on฀Effective฀writing฀and฀presentation฀฀฀฀ Step฀1฀ Use฀headings฀ Using฀the฀headings฀and฀sub-headings฀from฀your฀answer฀plan฀will฀give฀your฀answer฀ structure,฀order฀and฀logic.฀This฀will฀ensure฀your฀answer฀links฀back฀to฀the฀requirement฀ and฀is฀clearly฀signposted,฀making฀it฀easier฀for฀the฀marker฀to฀understand฀the฀different฀ points฀you฀are฀making.฀Underlining฀your฀headings฀will฀also฀help฀the฀marker.฀฀ Step฀2฀ ฀ Write฀your฀answer฀in฀short,฀but฀full,฀sentences฀ Use฀short,฀punchy฀sentences฀with฀the฀aim฀that฀every฀sentence฀should฀say฀something฀ different฀ and฀ generate฀ marks.฀ Write฀ in฀ full฀ sentences,฀ ensuring฀ your฀ style฀ is฀ professional.฀ Step฀3฀ ฀฀ Do฀your฀calculations฀first,฀explanation฀second฀฀ Questions฀often฀ask฀for฀an฀explanation฀with฀suitable฀calculations,฀the฀best฀approach฀ is฀ to฀ prepare฀ the฀ calculation฀ first฀ but฀ present฀ it฀ on฀ the฀ bottom฀ half฀ of฀ the฀ page฀ of฀ /next฀ page฀ to฀ your฀ answer.฀ Then฀ add฀ the฀ explanation฀ before฀ the฀ calculation.฀ Performing฀the฀calculation฀first฀should฀enable฀you฀to฀explain฀what฀you฀have฀done.฀ ฀ xvii฀ Downloaded by Andriy Lyash (andriylyash@gmail.com) lOMoARcPSD|3369405 ฀ ฀ Exam฀success฀skill฀6฀ Good฀time฀management฀฀฀฀ This฀ skill฀means฀planning฀your฀time฀across฀all฀the฀requirements฀so฀that฀all฀tasks฀have฀been฀attempted฀at฀ the฀end฀of฀the฀3฀hours฀15฀minutes฀available฀and฀actively฀checking฀on฀time฀during฀your฀exam.฀This฀is฀so฀ that฀you฀can฀flex฀your฀approach฀and฀prioritise฀requirements฀which,฀in฀your฀judgement,฀will฀generate฀the฀ maximum฀marks฀in฀the฀available฀time฀remaining.฀ Advice฀on฀Good฀time฀management฀ The฀exam฀is฀3฀hours฀15฀minutes฀long,฀which฀translates฀to฀1.95฀minutes฀per฀mark.฀Therefore฀a฀10-mark฀ requirement฀should฀be฀allocated฀a฀maximum฀of฀20฀minutes฀to฀complete฀your฀answer฀before฀you฀move฀on฀ to฀the฀next฀task.฀At฀the฀beginning฀of฀a฀question,฀work฀out฀the฀amount฀of฀time฀you฀should฀be฀spending฀on฀ each฀ requirement฀ and฀ write฀ the฀ finishing฀ time฀ next฀ to฀ each฀ requirement฀ on฀ your฀ exam.฀ If฀ you฀ take฀ the฀ approach฀ of฀ spending฀ 10-15฀ minutes฀ reading฀ and฀ planning฀ at฀ the฀ start฀ of฀ the฀ exam,฀ adjust฀ the฀ time฀ allocated฀ to฀ each฀ question฀ accordingly,฀ eg฀ if฀ you฀ allocate฀ 15฀ minutes฀ to฀ reading,฀ then฀ you฀ will฀ have฀ 3฀hours฀remaining฀which฀is฀1.8฀minutes฀per฀mark.฀ Keep฀an฀eye฀on฀the฀clock฀ Aim฀to฀attempt฀all฀requirements,฀but฀be฀ready฀to฀be฀ruthless฀and฀move฀on฀if฀your฀answer฀is฀not฀going฀as฀ planned.฀The฀challenge฀for฀many฀is฀sticking฀to฀planned฀timings.฀Be฀aware฀this฀is฀difficult฀to฀achieve฀in฀the฀ early฀stages฀of฀your฀studies฀and฀be฀ready฀to฀let฀this฀skill฀develop฀over฀time.฀ If฀you฀find฀yourself฀running฀short฀on฀time฀and฀know฀that฀a฀full฀answer฀is฀not฀possible฀in฀the฀time฀you฀have,฀ consider฀ recreating฀ your฀ plan฀ in฀ overview฀ form฀ and฀ then฀ add฀ key฀ terms฀ and฀ details฀ as฀ time฀ allows.฀ Remember,฀ some฀ marks฀ may฀ be฀ available,฀ for฀ example,฀ simply฀ stating฀ a฀ conclusion฀ which฀ you฀ don't฀ have฀time฀to฀justify฀in฀full.฀ ฀ xviii฀ Downloaded by Andriy Lyash (andriylyash@gmail.com) ... Downloaded by Andriy Lyash (andriylyash@gmail.com) lOMoARcPSD|3369405 Further? ?revision? ??advice฀ ฀ Further฀advice฀for฀revising฀for? ?Strategic? ? ?Business? ? ?Reporting? ??฀ Question? ?practice? ?? Question? ?practice? ??under฀timed฀conditions฀is฀absolutely฀vital.฀We฀strongly฀advise฀you฀to฀create฀a? ?revision? ??... thresholds? ?and? ??eligibility฀criteria."฀฀ (ACCA? ??SBR฀UK฀Syllabus? ?and? ??Study฀Guide฀September฀2018฀to฀June฀2019)฀ This? ?Practice? ??&? ?Revision? ? ?Kit? ??is฀based฀on฀International฀Financial? ?Reporting? ??Standards฀only.฀An฀online฀... Conceptual฀Framework฀for฀Financial? ?Reporting? ?? Important฀note฀for฀UK฀students฀who฀are฀sitting฀the฀UK฀ variant฀of? ?Strategic? ? ?Business? ? ?Reporting? ?? If฀you฀are฀sitting฀the฀UK฀variant฀of฀the? ?Strategic? ? ?Business? ? ?Reporting? ??exam฀you฀will฀be฀studying฀under฀