Your Essential ACCA SBR Guide: Dec 2025 Exam Pass Strategy 🚀

The Strategic Business Reporting (SBR) exam is about application and professional judgment, not just rote learning! For your December 2025 attempt, let's focus on a pass-focused strategy built on practicing the right questions and mastering your answer technique.

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Key Questions & Topics to Practice

To secure your pass, you must be confident in the high-frequency and high-mark areas of the syllabus. For December 2025, concentrate your practice on:

Core SBR Area	Key Standards/Topics	Why they are crucial
Group Accounting (Question 1)	Complex Consolidations (Acquisitions, disposals, step acquisitions), Foreign subsidiaries ($\text{IAS 21}$), Associates/Joint Ventures ($\text{IFRS 11/IAS 28}$), and crucially, the Consolidated Statement of Cash Flows ($\text{IAS 7}$).	Forms the foundation of Question 1, often requiring both calculation and extensive discussion/explanation of principles.
Financial Instruments	Classification ($\text{IFRS 9}$), Debt vs. Equity ($\text{IAS 32}$), Impairment (ECL model), and Hedge Accounting.	Highly technical and frequently tested in Section A or B, requiring deep application of principles.
Leases	Lessee Accounting ($\text{IFRS 16}$) including variable payments, sale and leaseback.	Continues to be a popular, complex standard for testing.
The Conceptual Framework & Ethics	Ethical dilemmas in corporate reporting, Application of the Framework to resolve reporting issues (e.g., substance over form, prudence), and Current/Emerging Issues (e.g., Sustainability Reporting, IFRS 18).	Essential for the easy professional marks and demonstrating your professional judgment. Expect questions that test $\text{IFRS 18}$ Presentation and Disclosure in Financial Statements principles.
Other High-Value $\text{IFRSs}$	Revenue ($\text{IFRS 15}$), Intangibles ($\text{IAS 38}$), Impairment of Assets ($\text{IAS 36}$), and Deferred Tax ($\text{IAS 12}$).	These are often part of the more complex scenarios in Section B.

Top Practice Advice:

• Focus on the latest questions from the ACCA Practice Platform, Specimen, and recent past papers (within the last 2 years).

• Always read the Examiner's Reports to understand common pitfalls.

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How to Structure Your Answers for a Pass

The key to passing SBR is quality over quantity, precision, and application. Aim for a professional, clear, and focused structure.

1. The SBR Answer Technique (IDAP for Narrative Questions)

Use this four-step approach for narrative requirements that ask you to Explain or Discuss an accounting treatment:

Step	Action	Focus
I - Identify	State the relevant $\text{IFRS/IAS}$ or Conceptual Framework principle.	What standard is relevant?
D - Define/Detail	Briefly state the key principle or recognition criteria from the standard.	What does the standard say?
A - Apply	Apply the standard's definition/criteria directly to the scenario facts. This is where most marks are earned!	How does this apply to the company in the scenario?
P - Professional Conclusion	State the final recommended accounting treatment or conclusion.	Therefore, what should the company do?

2. Layout and Presentation

• Use Headings and Sub-headings: Signpost your answer clearly for the marker. Use the requirement's exact wording.

• Keep it Concise: Use short sentences and small paragraphs (2-3 sentences max) or extended bullet points. Each separate, well-explained point is likely worth a mark.

• Separate Calculations: Use the spreadsheet response area for all but the simplest workings. Clearly label and reference them in your narrative.

• Time Management: Allocate $1.8$ minutes per mark. If a question is worth 10 marks, spend 18 minutes maximum. Do not over-write.

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Sample Writing Style (The IDAP in Action)

Scenario Snippet: The company, Zest Co, has incurred $\text{\$1.5m}$ in development costs for a new software platform. The technical feasibility of the platform was only confirmed on November 1, 20X5. Costs were incurred evenly from August 1, 20X5. (Assume a year-end of Dec 31, 20X5).

Requirement: Explain the appropriate accounting treatment for the $\text{\$1.5m}$ development costs in the Statement of Financial Position for the year-ended December 31, 20X5. (4 Marks)

Sample Answer ($\text{IDAP}$ based):

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Accounting for Development Costs ($\text{IAS 38}$ Intangible Assets)

I/D: IAS 38 requires that development expenditure can only be capitalised as an intangible asset if all six recognition criteria are met, including the critical criterion of demonstrating technical and commercial feasibility. Until these criteria are met, the expenditure must be expensed immediately.

A: Zest Co incurred $1.5m over five months ($0.3m per month). Technical feasibility was only confirmed on November 1, 20X5. Therefore, the costs incurred before this date (August, September, October—$\text{3 months}\times \text{\$0.3m}=\text{\$0.9m}$) must be expensed to the Statement of Profit or Loss.

A: The costs incurred from November 1, 20X5, onwards ($\text{2 months}\times \text{\$0.3m}=\text{\$0.6m}$) meet the technical feasibility criterion and should be capitalised as an intangible asset, assuming the other IAS 38 criteria are also met.

P: In the Statement of Financial Position at Dec 31, 20X5, Zest Co should recognise an Intangible Asset of $\text{\$0.6m}$ ($\text{\$1.5m}-\text{\$0.9m}$ expensed) and an expense of $0.9m in the Statement of Profit or Loss.

This strategy ensures you apply the standard (Application) and hit multiple mark points concisely.

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Good luck with your Dec 2025 SBR exam! Commit to practice and technique, and you'll cross the finish line.