The SBR Examiners Report March/June 2025 - Useful Reading!

NOTE: This examiner’s report should be used in conjunction with the published March/June 2025 sample exam which can be found on the ACCA Practice Platform.

Question 1 – Egap Co (Consolidation + Pensions)

• a) Step Acquisition (IFRS 3, IAS 28)
  Good answers dealt with both steps: 25% associate and 45% to control.
  Many missed accounting for the initial investment properly (you should use equity method).
  Errors in goodwill calculation were common, especially ignoring share consideration or NCI fair value.

• b) Defined Benefit Plan (IAS 19)
  Better answers calculated service & interest costs, and separated them before/after the plan change.
  Many wrongly put remeasurement gains in profit or loss (should be OCI).
  Don’t compare DB vs DC plans—it wastes marks!

• c) Spreadsheet Adjustments
  The best answers used separate columns and referenced corrections clearly.
  Many lost marks by replacing the entire goodwill/NCI amounts instead of adjusting from the draft figures.
  Common error: decreasing share capital instead of increasing it for the share issue

Question 2 – Byfloat Co (Financial Instruments + Ethics)

• a) IFRS 9 Application
  Equity investments: should be FVTPL if no FVOCI election.
  Writing off loan for more shares = derecognise loan, record loss.
  End of year: loan becomes credit-impaired, so use lifetime expected credit losses.
  Many missed the expected credit loss model altogether!

• b) Ethics
  Good answers linked actions to the ACCA Code and gave practical responses (e.g., don’t submit over-optimistic forecasts).
  Bad answers just repeated the scenario or called it “unethical” without explanations.
  Missed opportunity: very few discussed going concern implications properly.

Question 3 – Ments Co (Revenue, Leases, Bonds)

a) Contract Modifications (IFRS 15)
Most struggled: few explained contract modifications properly.
Candidates wasted marks by listing the 5-step model instead of applying it.
Contract 2 (modification over remaining years) was better handled.

• b) Lease Extension (IFRS 16)
  This was the best-performing part of Q3!
  Good answers showed lease remeasurement, new term, new rate.
  Errors: applying interest to payment instead of liability.

• c) Foreign Bond (IFRS 9 + IAS 21)
  Strong answers: correct initial recognition + FX translation.
  Weak answers: treated it as a liability, or sent exchange differences to OCI (wrong—they go to SOPL).

Question 4 – Reetah Co (Intangibles + Segments + Framework)

• a) Trademark Accounting (IFRS 2 + IAS 38)
  Few noticed this was a share-based payment (IFRS 2).
  Most did well on IAS 38: recognised as intangible, impairment review needed (not amortisation).
  Misstep: treating 35% cashflow drop as automatic impairment.

• b) i) Usefulness of Segment Info (IFRS 8)
  Strong answers demonstrated balanced views (e.g., transparency vs over-aggregation).
  Weak answers just listed reporting rules (10%, 75%)—no insight = no marks

• b) (ii) & (b)(iii) Segment Identification
  Good answers applied the definition of operating segments and used the financial data to decide reportable segments.
  Weak answers performed unrelated ratio analysis or skipped it altogether.

✅ Answer the actual question (not the one you wish you got!)
✅ Marks = minutes. Plan your time and don’t over-answer Q1
✅ Don’t just list IFRS rules—apply them to the scenario
✅ Brief planning before writing saves time overall
✅ Use clear structure, especially in spreadsheets (Q1)

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