Let’s talk about SBR today, which has become current sensation and in which LSBCA and its trainers are completely committed to help students to achieve.
SBR will be in 3 or 4 part format explaining what it is ? How it is ? Where it should be used ? etc…..
So, Let’s start to know STRATEGIC BUSINESS REPORTING…….
Clearing foundation level exams brings a lot of happiness but shortly after, stress follows. Stress in regards to the Professional level examination.
I am here to bring you at ease for one of the essential professional examination i.e. Strategic Business Reporting (formally known as P2).
There are a lot of misconceptions amongst students that to qualify this exam, you need to cram up whatever information is provided in the study material.
Well, this is not the case and you’ll soon know why.
In today’s blog, we will understand what is Strategic Business Reporting and the rationale behind reformation of this subject.
- SBR is an advanced level for Fundamental level paper Financial Reporting (FR). It takes into account the Core technical capabilities acquired in FR for preparing and analysing financial reports of different single and combined entities.
- SBR requires students to look and examine a company’s corporate report not only from the point of view of the accountant or preparer, but also from perspective of different stakeholders such as investors, finance providers.
- SBR also aims at providing an overview of the professional and ethical responsibilities of the accountant to the stakeholders.
- SBR requires the students to evaluate and assess the decision made by the management and the impact of these decisions on the stakeholders.
- SBR not only requires a deep understanding of the principles and practices of International Financial Reporting Standards (IFRS) but also the application of these in the preparation of financial statements of group and single entities.
- SBR takes into consideration the current developments in corporate reporting and the Exposure Drafts issued by International Accounting Standards Board (IASB) along with implications of any potential changes in the near future.
- Students preparing for SBR need to know the usefulness of Integrated Reporting and other narrative reporting along with assessing what kind of information would be helpful for stakeholders to assess the company’s performance.
SBR is broadly divided into 6 Parts, namely:
- Fundamental ethical and professional principles
- The financial reporting framework
- Reporting the financial performance of a range of entities
- Financial statements of groups of entities
- Interpret financial statements for different stakeholders
- The impact of changes and potential changes in accounting regulation
Lets discuss Part A today !!
Part A deals with Fundamental ethical and professional principles to be followed by accountants.
- A question regarding ethical proposition comes as a part in Section A of the exam and is usually for 10 marks (more or less).
- It deals with professional behaviour and the conformance of entity’s financial statements with relevant accounting standards
- Evaluation, discussion and suggestion on ethical and professional issues in corporate reporting.
- Assessment of the significance of professional and ethical issues in accounting standards compliance along with the importance of such ethical and professional concern.
- It also deals with requirements of corporate reporting in lieu of ethics and the consequences and implications of unethical behaviour in workplace.
- Appraisal of the potential ethical association of decisions made by the accountant as a professional along with the management in the preparation of corporate reports.
- Assessing the outcome of non-sustainment of ethical principles whilst preparing corporate reports.
- Identification of related parties and dealing with the effect of such related parties while preparing financial statements and corporate reports.
We will look at the remaining parts in upcoming blogs.
So relax and leave the stress at bay because I am here to guide you through SBR.
London School Of Business & Certified Accountants (LSBCA) is teaching all subjects of ACCA
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