ACCA Tom Clendon's SBR podcast

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now.Ethics is guaranteed to matter in SBR, particularly in question two. In this episode, I take you through the five ethical principles and, more importantly, explain how ethics is actually examined. This is not about simply listing the principles. It is about spotting ethical issues in a practical accounting scenario and linking what is happening back to the ethical code.You'll learn how to identify issues such as lack of professional competence, deliberate manipulation, threats and inducements, and how to turn those observations into marks. I also explain why you should deal with the accounting treatment first, before discussing the ethics, and how giving sensible advice — including escalation, seeking independent advice and, ultimately, resignation — can strengthen your answer.Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.If you'd like to view the exam question on screen and see my working, subscribe to the YouTube Channel:⁠⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠⁠.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:⁠⁠⁠⁠ ⁠⁠https://tomclendon.co.uk/⁠⁠⁠⁠⁠⁠.Chapters (0:00) Old but Gold introduction(0:41) Why ethics matters in SBR(1:25) The five ethical principles(2:31) How ethics is actually examined(3:01) Deal with the accounting first(3:26) Errors, competence and deliberate manipulation(5:34) Bullying, bribery and professional behaviour(6:32) Giving advice in an ethics answer(7:34) Escalation, independent advice and resignation(9:03) Exam strategy and practising question two

Deferred tax is one of those SBR topics that students often find difficult. In this episode, I go back to the basics of IAS 12 and explain both the why and the how. I show how deferred tax links to the matching concept before introducing temporary differences, tax bases, deferred tax liabilities and deferred tax assets.You'll then see how the rules work through four simple numerical examples covering revalued land, impairment, capital allowances and provisions. I'll show you a logical step-by-step approach that you can apply in the exam, so you can explain the accounting treatment clearly, perform the calculations efficiently and earn the marks available.Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.If you'd like to view the exam question on screen and see my working, subscribe to the YouTube Channel:⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:⁠⁠⁠ ⁠⁠https://tomclendon.co.uk/⁠⁠⁠⁠⁠.Chapters(0:00) Why deferred tax matters(1:51) What this episode will cover(3:30) The matching concept explained(6:15) Why current tax may not match accounting profit(8:13) How deferred tax restores the match(11:57) Temporary differences, carrying values and tax bases(13:51) Deferred tax liabilities versus deferred tax assets(16:21) The six-step approach to deferred tax questions(16:36) Example 1: Revaluation of land(21:05) Example 2: Impairment of investment property(24:34) Example 3: Capital allowances on PPE(27:20) Example 4: Deferred tax on a provision

Accounting for tax with investment properties can involve plenty of other standards: IFRS 5, IAS 36, IAS 2… the trick is to know when to use each together with IAS 40.In this episode, I talk through the accounting for Investment Properties under IAS 40. We start with the basic definition: property held to earn rentals, for capital appreciation, or both. And then compare it with PPE under IAS 16. Here's the thing: the same physical building can be accounted for in different ways depending on why the business is holding it. That distinction is vital in SBR.You'll learn how investment property can be measured at cost or fair value, how fair value gains and losses are treated, and why this differs from PPE revaluations. We also look at how IAS 40 links with other standards, including IFRS 18, IAS 36, IAS 2 and IFRS 5. Most importantly, I explain how to think through the different, progressive scenarios so you can write clear answers and earn the marks.Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.If you'd like to view the exam question on screen and see my working, subscribe to the YouTube Channel:⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:⁠⁠ ⁠⁠https://tomclendon.co.uk/⁠⁠⁠⁠.Chapters(0:00) Introduction to IAS 40 investment properties(1:57) What is an investment property?(2:25) Investment property compared with PPE(3:37) Recap of IAS 16 accounting for PPE(5:19) Accounting for investment properties under IAS 40(6:35) Why identical properties can have different accounting treatments(8:29) IFRS 18 and where gains and rental income go in profit or loss(9:27) Investment property in the statement of cash flows(10:38) Cost or fair value — which measurement is more useful?(13:04) Why property classification depends on business use(15:08) Mixed-use property and splitting the asset(16:09) Transfers from PPE to investment property

You may think you already know PPE in IAS 16, but this one still causes problems in SBR when it is tested in an applied way.In this episode, I take you through IAS 16 Property, Plant and Equipment. We cover the basics of PPE, including initial recognition, depreciation, revaluation, disposal, and why depreciation is about matching costs with benefits — not saving up cash to replace an asset.You will learn how IAS 16 connects with other important exam areas, including IAS 23 borrowing costs, IAS 37 provisions, IFRS 18 presentation, IAS 7 cash flows, and sustainability reporting. I also work through practical examples on revalued assets, disposal without recycling gains to profit or loss, and decommissioning provisions, so you can see how the numbers work and understand what the examiner is really looking for.Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.If you'd like to view the exam question on screen and see my working, subscribe to the YouTube Channel:⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:⁠ ⁠⁠https://tomclendon.co.uk/⁠⁠⁠.Chapters(00:00) Why IAS 16 PPE still matters for SBR(01:54) What PPE means and when it is recognised(03:08) Depreciation explained simply(04:05) The double entry for depreciation(05:43) Changing depreciation method: policy or estimate?(06:56) Depreciation and the cash flow statement(08:30) Why we really charge depreciation(10:46) Revalued PPE and why depreciation still applies(12:24) Disposal and derecognition of PPE(14:43) IAS 23 borrowing costs and PPE(16:48) Decommissioning provisions and sustainability reporting(20:36) Worked examples: revaluations, disposals and provisions

We're going to continue our look at IAS 37 in this episode - fantastic!We recap the three key conditions for recognising a provision, then move on to contingent assets, why prudence matters, and why you cannot simply net off a possible asset against a possible liability. I also bring in the important link with IFRS 3 and fair value, showing how a contingent liability can affect group accounts and goodwill even when it is not recognised in the subsidiary's own books.By listening to this episode, you will learn how to apply IAS 37 in exam-style situations, not just repeat the rules. I explain the difference between probability as a recognition issue under IAS 37 and as a measurement issue in group accounts. You will also learn how decommissioning provisions interact with PPE, why the provision must be discounted, and how both depreciation and the unwinding of the discount affect profit or loss. This is exactly the kind of application that helps you pick up marks in SBR.Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.If you'd like to view the exam question on screen and see my working, subscribe to the YouTube Channel: ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: ⁠⁠https://tomclendon.co.uk/⁠⁠.Chapters(00:00) Introduction to IAS 37 part two(01:25) Quick recap of the three provision criteria(02:11) What is a contingent asset?(03:11) Recognition rules and prudence(04:06) Why provisions and contingent assets are not netted off(04:53) Linking IAS 37 with IFRS 3 and fair value(06:45) Example: unfair dismissal claim(08:44) Group accounts: contingent liabilities and goodwill(12:01) Decommissioning provisions and PPE(14:48) The key issue: discounting the provision(16:21) Depreciation and unwinding the discount(17:03) Final exam-focused recap

Provisions! Seemingly a simple standard to get the easy marks, but it isn't always the low-hanging fruit we expect.In this episode, I introduce IAS 37 Provisions from the ground up. Provisions are very examinable, and let's face it, they can look easy at first. But the examiner can make them tricky very quickly. I explain what a provision is, why the standard exists, and the three key recognition criteria: a present obligation from a past event, a probable outflow of economic benefits, and a reliable estimate.You will learn how to apply IAS 37 in exam-style scenarios, including legal claims, environmental clean-up obligations, contingent liabilities, and the all-or-nothing approach to recognition. I also show how provisions affect profit or loss, the statement of financial position, cash flow, EPS, and even deferred tax. The aim is simple: help you pick up the easy marks, structure your answer properly, and stay calm when the examiner adds a twist.Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.If you'd like to view the exam question on screen and see my working, subscribe to the YouTube Channel: ⁠https://www.youtube.com/@tomclendonSBR⁠.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: ⁠https://tomclendon.co.uk/⁠.Chapters:(00:00) Why provisions are examinable(01:24) What is a provision?(02:47) Why IAS 37 exists(04:08) The three recognition criteria(04:35) Legal and constructive obligations(05:42) The all-or-nothing approach(06:22) When it becomes a contingent liability(07:06) The double entry and cash flow link(08:34) When provisions are capitalised(09:35) Worked example: unfair dismissal claim(13:28) Environmental clean-up provision(17:09) Deferred tax implications

Impairment… here we go again! In this episode, I revisit IAS 36, but this time we focus on one of the areas that students often find difficult: Goodwill Impairment. I walk through the key principles, explain why goodwill must be tested through a cash-generating unit (CGU), and tackle one of the biggest exam complications: the treatment of non-controlling interests (NCI).You'll learn how goodwill impairment is tested in SBR questions, when impairment losses affect the parent and NCI, and why the measurement of NCI changes the calculation completely. Most importantly, I work through practical examples and journal entries so you can see exactly how the examiner expects you to approach this topic and pick up the marks in the exam.Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.If you'd like to view the exam question on screen and see my working, subscribe to the YouTube Channel: https://www.youtube.com/@tomclendonSBR.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: https://tomclendon.co.uk/.Chapters:(00:00) Introduction to goodwill impairment(01:02) Recap of IAS 36 impairment basics(02:30) Annual impairment review vs annual impairment loss(03:12) Goodwill impairment and the P&L treatment(04:41) Why goodwill is tested within a CGU(06:23) Goodwill, CGUs and exam application(06:54) NCI measurement and its impact on goodwill(08:54) Example 1: Full goodwill impairment (Bowie)(11:52) Accounting treatment and journal entries for full goodwill(12:52) Example 2: Partial goodwill impairment (Ziggy)(16:11) Journal entries and exam technique tips(17:31) Final exam advice and close

In this episode, I explain the basics of IAS 36 impairment. We start with the key idea: an asset is impaired when its carrying value is more than its recoverable amount. I'll talk you through the terminology, the logic, and the numbers, so it starts to feel manageable rather than messy.You'll learn how to calculate an impairment loss, how to account for it, and what happens when the asset has previously been revalued. We also look at reversals of impairment losses and one phrase I never want to see in an exam answer: “impairment gain”. Let's face it, impairment gets examined, so let's make sure you can pick up the marks.Thanks for listening to this episode of ACCA Tom Clendon's SBR Podcast.If you'd like to view the exam question on screen and see my working, subscribe to the YouTube Channel: https://www.youtube.com/@tomclendonSBR.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: https://tomclendon.co.uk/.Chapters:(00:00) IAS 36 impairment basics(01:21) When an asset is impaired(01:36) Recoverable amount: fair value vs value in use(03:32) Judgement and estimates in value in use(05:20) Calculating and recording an impairment loss(06:30) When to perform an impairment review(08:03) Links to IFRS 18, IAS 7 and IAS 12(12:03) Why IFRS 9 financial assets are different(12:33) No such thing as an impairment gain(13:44) Impairment of revalued assets(16:01) Reversal of impairment losses(17:01) Worked examples and exam technique

In this episode, I take you back into IFRS 15 Revenue from Contracts with Customers, but this time we zoom in on one of the trickiest areas: determining the transaction price.I walk you through the key complications: deferred consideration (time value of money), advance payments, and variable consideration. We start with the core principles, then build it up step by step using clear, practical examples — exactly the way you'll see it in the exam.More importantly, you'll learn how to turn this knowledge into marks. I show you how to deal with discounting, how to account for financing elements, and how to handle bonuses and penalties using expected value and most likely outcomes.Here's the thing: this is where students often drop marks. If you're struggling with how much revenue to recognise and when, this episode gives you a clear method to follow, so you can structure your answer, apply the rules properly, and pick up those easy, valuable marks.Thanks for listening to this episode of ACCA Tom Clendon's SBR Podcast.If you'd like to view the exam question on screen and see my working, subscribe to the YouTube Channel: https://www.youtube.com/@tomclendonSBR.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: https://tomclendon.co.uk/.Chapters(00:00) Introduction – Why transaction price matters for SBR(01:11) Recap of the 5-step revenue model(01:49) Determining the transaction price – key challenges(02:41) Deferred consideration – buy now, pay later(04:32) Time value of money and discounting(05:45) Unwinding the discount (finance income)(06:35) Advance payments – deferred income explained(08:17) Financing element in contract liabilities(09:20) Variable consideration – bonuses and penalties(10:46) Expected value vs most likely method(11:14) Worked example 1 – construction contract (expected value)(16:31) Year 2 adjustment and revenue true-up(17:53) Worked example 2 – service contract (most likely outcome)(21:50) Exam technique and key reminders

In this episode, I walk you through one of the most examinable areas in the exam: revenue under IFRS 15 Revenue from Contracts with Customers. We start right from the basics, so you're not left guessing, and build up to the core principles that underpin the standard.I talk through the five-step model, explain why revenue is such a high-risk area (especially from an audit perspective), and why simply memorising the steps won't earn you marks in the exam.More importantly, I show you how to apply that knowledge to a real exam-style question. You'll see exactly how to identify performance obligations, allocate the transaction price, and deal with timing issues (whether revenue is recognised at a point in time or over time).Thanks for listening to this episode of ACCA Tom Clendon's SBR Podcast.If you'd like to view the exam question on screen and see my working, subscribe to the YouTube Channel: https://www.youtube.com/@tomclendonSBR.For access to on-demand support and guidance for your ACCA Journey, visit my website to see my current course offering: https://tomclendon.co.uk/.Chapters:(00:00) Why revenue matters for exam success(00:18) Episode overview and learning approach(00:51) Introduction to Zaakirah(01:12) What is revenue and why it's high risk(01:47) Timing issues and manipulation risks(02:01) Introduction to IFRS 15 Revenue from Contracts with Customers(02:33) The five-step model explained(03:01) Step 1: Identifying the contract(03:18) Step 2: Identifying performance obligations(04:02) Step 3: Determining the transaction price(04:29) Step 4: Allocating the transaction price(05:06) Step 5: Recognising revenue (point in time vs over time)(05:53) Why memorising won't earn marks(06:26) Moving to exam application(06:40) Understanding the exam requirement (5-mark question)(08:08) Identifying performance obligations in the scenario(10:12) Allocating revenue using stand-alone selling prices(11:20) Timing of revenue recognition(12:19) Calculating correct revenue figure(12:47) Correcting overstated revenue (exam technique)(13:27) Current vs non-current liability (deferred revenue)(13:39) Final exam tips and wrap-up

From Sept 2027 SBR will be no more. The new ACCA exam will be Business and Sustainability Reporting (BSR). This short episode explains what will be the same and what will be different.

Let me make sure you understand the very basic terminology around climate change and S2. Lend me your ears for ten minutes

In this episode I talk to Adam Yannakakis - a recently qualified ACCA member - who is passionate about helping ACCA students by coaching them to be accountable for their studies!

Whilst SBR is core you will also have to choose optional exams. And maybe you should think about doing AFM. In the episode I am joined by Andrew Mower, ACCA's expert AFM tutor and I quiz him about the AFM exam.

Why and how do we make provision for unrealised profits (PUPs) when preparing group accounts! In this episode this is all explained and more!#singleentityconcept#impactonNCI

IFRS 18 is a new standard that is now examinable at SBR. This edition of the podcast gives you an introduction and sets the scene!

Lets make sure you understand the basics. Here I talk about IAS 16 Property Plant & Equipment and IAS 40 Investment Property - with an emphasis on explaining about revaluations!

In this episode Nikki talks about the challenges that students face studying professional accountancy exams and the strategies that can be used to overcome them.

A power ten minutes on this key standard - which has been called an anaolgue standard for a digitial age!

Good students can fail exams! So I explored with my friend Stuart Pedly Smith his top five examination technique tips. Stuart is a very respected academic and lecturer who has researched extensively into how students learn.

Substance over form is a key principle to understand. In this episode I explain the theory and show how it is applied in two different accounting standards as well as crowdfunding.

Not as straight forward as you might think! In this episode I discuss and explain the various ways that a group will account for a 40% investment. You see it all depends.

Cash flow - lets talk the basic principles, why investors like them and lets talk numbers. This is a topic you must be comfortable with.

"The basics" do get tested at SBR. This edition covers the principles and examples of depreciation and revaluation of PPE. So yes it is about IAS 16 PPE. Ten minutes. Please like and subscribe! More about SBR can be found at my website www.tomclendon.co.uk

From Sept 24 this topic is examinable at SBR. So make sure you are up to date and listen to this edition and you might learn something about IFRS16 as well as my family tree!

In this episode Sunil talks about the optional exam AFM

In this episode I talk with Ben Wilson about how AAA relates to SBR and why for many students it is a natural exam to do after SBR.

The other core exam at the strategic professional level is Strategic Business Leader (SBL). In this episode I chat with Marty Windle - the SBLguru - who knows far more about SBL than I do.

So what is the deferred tax implications for a lessee entering into a right of use lease? Let me explain. With an example!

At today's ACCA Global Educator Conference the SBR examining team shared feedback about student performance AND set out the changes in the syllabi that will be introduced from the September 2024 exam. Here is my hot off the press summary. It has inspired me to write and record some new material for my courses to keep them up to date and exam focussed.

Provisions and cash flow and deferred tax and fair value adjustments - lets consider how these standards interact as IFRS are tested in mini case study situations ie in an applied and holistic way!

This episode is slighty different. It is relevant if you have failed any ACCA exam and gives advice and pratical strategies on how to bounce back. I was commissioned by ACCA to write and deliver this edition.

Premiership football clubs face many accounting issues. Are their players recognised as assets? How to account for naming rights to their staduim? What about the borrowing costs on loans taken out to construct a new staduim? What is the accounting issue when a player gets a serious injury?

Let me answer the seven most frequently asked questions about the SBR exam... including how to earn professional marks (Q2) how to account for derivatives (Q6) but my favourite is the last one!

It is all about goodwill. Such a regularly examined number. I hope you enjoy this exam episode.

I was recently a guest on another podcast, and I thought I would share the interview. The first question I was asked related to how students coming up from skills should prepare for the step up to the professional stage. I was also asked about what comes up in the exam etc. This edition of the podcast is 30 minutes long. In the final section I get asked some personal questions!

Ten minutes on the IASB's Conceptual Framework. But not for beginners. It gets pretty heavy. In this episode I am explain some apparent inconsistencies between the framework and the accounting required by IAS 21 Foreign Currency and IAS 12 Deferred tax. I hope you enjoy the episode.

Revision is key to passing exams. But what has Aesop's fables got to do with it? There are no short cuts - but you can learn to revise in a smart way.

The changes explained. Whats app me for a link to free sample of material. UK 07725 350793 and Overseas +44 7725 350793

The SBR exam will have an increasing emphasis on "Investor Focus". In this edition of the podcast Tom explains what is meant by investor focus and what investors really want to know (and it is not just profitability). Of course being exam focussed, Tom concludes by discussing a practical accounting situation with an investor focus. The SBR examining team have confirmed that from September 2023 investor focus will be examined at Q4. It should be noted that the SBR Sept 23 - June 24 examinable documents have no exposure drafts to test. Thus there is an increasing emphasis on "Investor Focus"

It was great to chat with Paula who teaches Advanced Tax for the Irish exam. She certainly has a passion and is an authority on her subject.

Recycling. Lets me take ten minutes of your life to explain what this is all about. Mentioned in this episode are the standards PPE, Foreign Currency, Pensions and even hedging. But I try and keep it simple. I hope you enjoy the episode from the PQ award winning podcast!

Yes IAS 16 PPE does come up at SBR! So check out this ten minute episode! Initial recognition. Subsequent expenditure. Depreciation. Recycling. All get explained. Please like and subscribe my podcast. Tom Clendon

So lets keep it simple. Let me make sure you all understand why the finance cost on a financial liability will not be the same as the interest paid! The principle of accounting for liabilities at amortised cost goes to the heart of IFRS 9 Financial Instruments. Short and sweet!

Changes are afoot as to the way group accounts will be tested at SBR. These changes will apply from September 2023 onwards. In this episode I explain what those changes are - and how you can prepare for them.

In this episode I am joined by Lucy Moore from ACCA. We talk about the importance of doing mock exams !

In this episode I am joined by James Wright as we chew the fat over which optional exams are the best for you. Two heads are better than one. It is best to make an informed choice. And listening to this podcast will help!

If you have the choice as to whether to sit your exams in the comfort of your own home - or at an exam centre - then it should be an informed choice that works for you. It is important to make an informed choice. So I am joined by my colleague Ben Wilson to discuss this. We reveal our personal preferences and the results of a LinkedIn poll of nearly 1,000 students.

I caught up with my student Ollie and chatted with him about his study tips. In addition he talks about about the topic he found the most difficult and how useful he found whats app support.

Goodwill. It is gets examined a lot. Why does it arise? How do you calculate and account for it? All these questions are answered and more! This episode is a useful recap of the basics. Suitable for both FR and SBR - and in fact anyone wanting to understand the accounting for goodwill. I hope you enjoy listening to it. A ten minute technical blast.

If you are planning on sitting the ACCA optional exam ATAX then this edition is aimed at you. Aileen Edgar is an expert online lecturer. I asked her about the difference between TX at skills and ATAX at strategic professional stage -as well as the introduction of 20 professional marks at ATAX, and so much more. You might be surprised by her some of her answers !