©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
ACCA Strategic Business Reporting (UK)
Exam Study Guide
The code of ethics and conduct - ANSWER✔✔• Integrity
• Objectivity
• Professional Competence and Due Care
• Confidentiality
• Professional behaviour
Consequences of unethical behaviour - ANSWER✔✔The consequences for individuals include:
• Fines
• The loss of professional reputation
• Being prevented from acting as a director or officer of a public company in the future
• The possibility of being expelled by a professional accountancy body
• A prison sentence
Page 1/97
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Purpose of Conceptual Framework - ANSWER✔✔To assist:
• the Board when developing new IFRS Standards, helping to ensure that these are based on consistent
concepts
• preparers of financial statements when no IFRS Standard applies to a particular transaction, or when
an IFRS Standard offers a choice of accounting policy
• all parties when understanding and interpreting IFRS Standards
Fundamental characteristics - ANSWER✔✔Relevance and faithful representation are the fundamental
characteristics of useful financial information
Enhancing characteristics - ANSWER✔✔• Comparability
• Timeliness
• Verifiability
• Understandability
Asset - ANSWER✔✔A present economic resource controlled by an entity as a result of a past event
Liability - ANSWER✔✔A present obligation of the entity to transfer an economic resource as a result of a
past event
Equity - ANSWER✔✔The residual interest in the net assets of an entity
Page 2/97
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Income - ANSWER✔✔Increases in assets or decreases in liabilities that result in an increase to equity
Expenses - ANSWER✔✔Decreases in assets or increases in liabilities that result in decreases to equity
Fair value - ANSWER✔✔The price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date
IAS 1 Presentation of Financial Statements - ANSWER✔✔A complete set of financial statements has the
following components:
• a statement of financial position
• a statement of profit or loss and other comprehensive income (or statement of profit or loss with a
separate statement of other comprehensive income)
• a statement of changes in equity
• a statement of cash flows
• accounting policies note and other explanatory notes
Going concern - ANSWER✔✔Financial statements are prepared with the expectation that a business will
remain in operation for at least the next 12 months from the reporting period
Page 3/97
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Changes in accounting policy -
ANSWER✔✔An entity should only change its accounting policies if required by a standard, or if it results
in more reliable and relevant information
New accounting standards normally include transitional arrangements on how to deal with any resulting
changes in accounting policy
If there are no transitional arrangements, changes in accounting policy should be applied retrospectively.
The entity adjusts the opening balance of each affected component of equity, and the comparative
figures are presented as if the new policy had always been applied
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Changes in accounting estimates -
ANSWER✔✔A change in an accounting estimate is not a change in accounting policy
According to IAS 8, a change in accounting estimate must be recognised prospectively by including it in
the statement of profit or loss and other comprehensive income for the current period and any future
periods that are also affected
Page 4/97
FIRST PUBLISH OCTOBER 2024
ACCA Strategic Business Reporting (UK)
Exam Study Guide
The code of ethics and conduct - ANSWER✔✔• Integrity
• Objectivity
• Professional Competence and Due Care
• Confidentiality
• Professional behaviour
Consequences of unethical behaviour - ANSWER✔✔The consequences for individuals include:
• Fines
• The loss of professional reputation
• Being prevented from acting as a director or officer of a public company in the future
• The possibility of being expelled by a professional accountancy body
• A prison sentence
Page 1/97
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Purpose of Conceptual Framework - ANSWER✔✔To assist:
• the Board when developing new IFRS Standards, helping to ensure that these are based on consistent
concepts
• preparers of financial statements when no IFRS Standard applies to a particular transaction, or when
an IFRS Standard offers a choice of accounting policy
• all parties when understanding and interpreting IFRS Standards
Fundamental characteristics - ANSWER✔✔Relevance and faithful representation are the fundamental
characteristics of useful financial information
Enhancing characteristics - ANSWER✔✔• Comparability
• Timeliness
• Verifiability
• Understandability
Asset - ANSWER✔✔A present economic resource controlled by an entity as a result of a past event
Liability - ANSWER✔✔A present obligation of the entity to transfer an economic resource as a result of a
past event
Equity - ANSWER✔✔The residual interest in the net assets of an entity
Page 2/97
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Income - ANSWER✔✔Increases in assets or decreases in liabilities that result in an increase to equity
Expenses - ANSWER✔✔Decreases in assets or increases in liabilities that result in decreases to equity
Fair value - ANSWER✔✔The price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date
IAS 1 Presentation of Financial Statements - ANSWER✔✔A complete set of financial statements has the
following components:
• a statement of financial position
• a statement of profit or loss and other comprehensive income (or statement of profit or loss with a
separate statement of other comprehensive income)
• a statement of changes in equity
• a statement of cash flows
• accounting policies note and other explanatory notes
Going concern - ANSWER✔✔Financial statements are prepared with the expectation that a business will
remain in operation for at least the next 12 months from the reporting period
Page 3/97
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Changes in accounting policy -
ANSWER✔✔An entity should only change its accounting policies if required by a standard, or if it results
in more reliable and relevant information
New accounting standards normally include transitional arrangements on how to deal with any resulting
changes in accounting policy
If there are no transitional arrangements, changes in accounting policy should be applied retrospectively.
The entity adjusts the opening balance of each affected component of equity, and the comparative
figures are presented as if the new policy had always been applied
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Changes in accounting estimates -
ANSWER✔✔A change in an accounting estimate is not a change in accounting policy
According to IAS 8, a change in accounting estimate must be recognised prospectively by including it in
the statement of profit or loss and other comprehensive income for the current period and any future
periods that are also affected
Page 4/97
