ACCA Strategic Business Reporting SBR Comprehensive Study

This set of flashcards covers key concepts from the ACCA Strategic Business Reporting SBR lecture notes.

IFRS 9

International Financial Reporting Standard that replaced IAS 39, focusing on classification, measurement of financial instruments, impairment of financial assets using the Expected Credit Loss (ECL) model, and hedge accounting.

SPPI test

Solely Payments of Principal and Interest test to classify financial assets under IFRS 9.

ECL Model

Expected Credit Loss Model requiring entities to recognize expected credit losses before a default event occurs.

Hedge Accounting

An accounting method to align recognition of gains and losses on hedging instruments with those of the hedged item.

Control (IFRS 10)

An investor controls an investee when it has power over the investee, is exposed to variable returns, and has the ability to use its power to affect its returns.

Goodwill Calculation

Goodwill is calculated as the consideration transferred plus fair value of NCI at acquisition date plus fair value of previously held equity interest, minus fair value of identifiable net assets.

Acquisition Method

The required method under IFRS 3 for all business combinations, prohibiting the pooling of interests method.

Revenue Recognition (IFRS 15)

Revenue is recognized when it reflects the transfer of promised goods or services to customers in an amount expected to be entitled.

Lease Liability (IFRS 16)

The present value of future lease payments recognized on the balance sheet as a liability by lessees.

Qualitative Characteristics of Financial Reporting

Includes relevance, faithful representation, comparability, verifiability, timeliness, and understandability.