Pass Your SBR ACCA Exams with Tom Clendon

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. This episode focuses on IAS 21 and what happens when a group has an overseas subsidiary preparing its financial statements in a different functional currency. I explain how those financial statements are translated into the group’s presentation currency and why exchange differences arise as part of that process. You’ll learn four key rules: assets and liabilities are translated at the closing rate, income and expenses normally at the average rate, goodwill at the closing rate, and the resulting group exchange differences are recognised in OCI and equity rather than immediately in profit or loss. I also explain how NCI can affect the allocation of exchange differences and what happens to the cumulative exchange difference when the subsidiary is eventually disposed of. 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/⁠⁠⁠⁠⁠⁠.

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. Goodwill is central to group accounting and comes up again and again in SBR. In this episode, I give you a focused tour of what you need to know, starting with the basic goodwill calculation: the parent’s investment, the non-controlling interest and the fair value of the subsidiary’s identifiable net assets at acquisition. You’ll learn how consideration is measured, how the choice of NCI measurement affects goodwill and impairment, and why fair value adjustments can also create deferred tax. I also cover identifiable intangible assets, contingent liabilities, impairment of goodwill, bargain purchases, step acquisitions, foreign subsidiaries, disposals and the 12-month measurement period. There is plenty here, but the aim is simple: helping you recognise which goodwill rule the examiner wants you to apply. 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/⁠⁠⁠⁠⁠⁠. (0:00) Old but Gold introduction (0:33) What you need to know about goodwill (1:08) Parent investment and fair value of consideration (2:07) Measuring the non-controlling interest (2:30) NCI measurement and impairment (3:10) Calculating goodwill (3:26) Fair value adjustments and deferred tax (4:23) Intangible assets and contingent liabilities on acquisition (5:27) Goodwill impairment and cash-generating units (6:10) Negative goodwill and bargain purchases (6:39) Step acquisitions and foreign subsidiaries (7:19) Disposals, control-to-control transactions and measurement period

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. In this episode, I strip climate change and sustainability reporting back to the basics. I explain greenhouse gas emissions, gross and net emissions, carbon credits and, crucially, the difference between Scope 1, Scope 2 and Scope 3 emissions. I also connect this terminology to the broader principles of sustainability reporting. You’ll learn the language you need before you can confidently tackle an exam requirement on sustainability. I explain Scope 1 as direct emissions, Scope 2 as energy-related emissions and Scope 3 as emissions connected with the wider value chain. We also look at metrics, targets, governance, strategy, risk management and why concepts such as materiality, relevance and faithful representation still matter. 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/⁠⁠⁠⁠⁠⁠. (0:00) Old but Gold introduction (0:57) Why climate change matters in SBR (1:39) What is climate change? (2:14) Greenhouse gases and carbon emissions (3:12) Why accountants are involved in sustainability reporting (4:00) Net zero, gross emissions and net emissions (5:04) What are carbon credits? (6:14) Scope 1 emissions (6:43) Scope 2 emissions (7:34) Scope 3 and the value chain (8:08) Recap of Scope 1, 2 and 3 (8:34) IFRS S2, metrics, targets and materiality

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. OCI and OCE sound very similar, but they are not the same thing. In this episode, I explain the difference between other comprehensive income, which is a performance statement for the period, and other components of equity, which is a cumulative balance within equity on the statement of financial position. I also show how the two are linked. You’ll see how this terminology connects across SBR, including IAS 16 revaluations, IAS 21 foreign exchange differences, IFRS 9 financial instruments, IAS 19 pensions and IFRS 2 share-based payments. The key is not just learning two definitions. It is understanding where gains and losses go, how they build up within equity, and being comfortable with the integrated nature of SBR questions. 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/⁠⁠⁠⁠⁠⁠. (0:00) Old but Gold introduction (1:00) OCI and OCE: same, same but different (1:30) What is other comprehensive income? (2:07) What is other components of equity? (2:43) The relationship between OCI and OCE (3:07) What goes through OCI (3:22) Revaluations, foreign exchange, IFRS 9 and pensions (4:36) Items in OCE that do not come through OCI (5:21) IFRS 2 share-based payments and OCE (6:16) Why this terminology matters across SBR

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