Change in SBR Exam Q1 from Sept 2023

The format of question 1 in the exam will be changing. Candidates will be presented with a ‘pre-populated spreadsheet response option’ (spreadsheet) containing a draft consolidated financial statement. One of the requirements will ask candidates to correct this spreadsheet. The issues can be varied.

In this new requirement style, candidates must adjust a fictitious consolidated statement of profit or loss, a statement of financial position or cash flows.

Candidates must address issues like accounting errors or changes in accounting policies. Alternatively, there may be unrecorded transactions that need adjustment.

In addition, candidates may have to discuss the impact of these adjustments on the financial statements themselves. Candidates will never be required to construct a financial statement themselves.

The accounting principles tested by the examination are not changing; the examination is simply testing the application of knowledge through spreadsheet format. These questions may be anywhere between 10-14 marks.

Candidates must use the pre-formatted spreadsheet to answer the relevant requirement, and the question will explicitly state this. It is also advisable to use this spreadsheet to show workings by using the workings below the draft financial statements. As usual, the workings should clearly show how the adjustments have arrived. This will help markers award relevant marks.

Some candidates will invariably disregard this advice and use the Word document for workings. The candidate will not be penalized if this situation occurs, but using one document will save time. Candidates should be aware that copying and pasting from the Word document into the spreadsheet is impossible.

Marks will not be awarded for using formulae or the candidate’s spreadsheet ability. Markers will review each spreadsheet cell for workings. Markers will continue to use existing principles to mark the candidates’ responses. Note that negative numbers in the spreadsheet will be displayed with a minus sign rather than brackets.

To help candidates with this transition, two examples of the new type of question will be available on the myACCA Practice Platform. These questions will replace the current question 1 in both specimen papers.