From September 2023, the format of question 1 in the Strategic Business Reporting (SBR) exam has changed.
From September 23, question 1 will use a prepopulated spreadsheet response option containing a draft consolidated financial statement.
One of the requirements will ask students to correct this spreadsheet for a range of issues. This new style of requirement will require students to record, analyse and present information using a spreadsheet. Aligning with how spreadsheets are used by finance professionals in a working environment.
For example, students may have to adjust a draft consolidated statement of profit or loss, a draft consolidated statement of financial position or a draft consolidated statement of cash flows. Students will have to deal with issues such as accounting errors, changes in accounting policies, or the acquisition or disposal of a subsidiary.
Alternatively, there may be unrecorded transactions that require recognition or adjustment, such as a defined benefit plan or foreign exchange issues. In addition, students may have to discuss the impact on the financial statements of these adjustments. For example, has the parent company’s investment in a company now changed from a subsidiary relationship to that of an associate?
However, students will never be required to construct a consolidated financial statement (including a consolidated statement of cash flow) from the parent and subsidiaries’ separate financial statements.
The question will ask students to use the pre-formatted spreadsheet to answer the relevant requirement. Here are some exam technique tips to support you with this change:
The accounting principles being assessed are not changing. The exam is simply testing the same application of knowledge by using a spreadsheet format. There will be 10-14 marks available for the spreadsheet requirement.