Strategic Business Reporting (SBR) is not about showing off accounting knowledge. It is about applying it. The exam is designed to test whether you can act like a professional accountant. And that means making sound judgments, explaining your thinking, and supporting your conclusions. That is why weak answers are easy to spot. They tend to ignore the scenario, make sweeping generalisations, and miss the point of the question. As an SBR tutor, I have reviewed hundreds of exam scripts. I can tell you the same patterns keep appearing. If you want to avoid the same mistakes, this blog will help. I will show you how to recognise a poor-quality answer and what to do instead.
What Makes an Answer Weak?
Before you can write a strong SBR answer, you need to understand what a weak one looks like. These are the red flags that examiners and tutors spot straight away:
- Lack of relevance to the scenario
- Superficial explanations without analysis
- Overuse of technical jargon without showing understanding
- Failure to apply professional judgment
- Repeating the question rather than answering it
- Using generic definitions and lists instead of explanation
Each of these issues can lead to lost marks. And often, students don’t realise they are making these mistakes. Let’s go through each one in more detail.
Ignoring the Scenario
SBR is a scenario-based exam. Every question contains a situation that needs analysis. If you ignore it, your answer will fall flat. This is not a financial reporting theory exam. You are expected to read and interpret the scenario just like a professional accountant would. That means:
- Identifying the key issues
- Understanding the context
- Considering the perspectives of different stakeholders
- Making a judgment based on the facts presented
A weak answer will describe accounting standards in isolation. A strong answer will say how those standards apply in the situation. For example, instead of saying “Revenue should be recognised when control passes”, a stronger answer might say “In this case, control has not passed because the customer has not yet accepted delivery, so revenue recognition at this point would not meet the requirements of IFRS 15”.
Writing Too Much Without Saying Anything
Many students think long answers mean better answers. But quantity is not the same as quality. An answer that repeats the same point in different words or wanders off-topic will not gain marks. The examiner wants focused, relevant, and supported points.
Here is what weak answers often include:
- Long introductions with textbook definitions
- Repetition of the question
- Vague statements like “this could have an impact” without explaining what the impact is
- Lists of accounting treatments without choosing one
The SBR exam rewards analysis. That means saying what should happen and why. It also means identifying any uncertainty and supporting your judgment with evidence from the scenario.
Misusing Technical Terms
There is nothing wrong with using terms like “performance obligation” or “fair value”. But you must use them in the right way. Many weak answers throw in these terms without showing understanding. That makes the writing sound robotic or even memorised. The examiner wants to see you think like an accountant. That means applying technical knowledge, not reciting it.
Let’s say a question involves a financial instrument. Instead of just writing “it should be measured at fair value”, a stronger answer would say: “This instrument is a derivative as it meets the definition under IFRS 9, and because it is not designated as a hedging instrument, it must be measured at fair value through profit or loss”.
You can only write this kind of sentence if you understand the standard and the context. That is the difference between a memorised answer and a professional one.
Lack of Judgment
One of the keywords in Strategic Business Reporting is judgment. The exam tests your ability to weigh up different outcomes and explain your reasoning. Weak answers often avoid making a clear decision. They say things like “the company could do this or that” without choosing one or explaining why.
Good use of judgment means:
- Stating a position clearly
- Explaining why that position makes sense
- Acknowledging uncertainty or alternative views
- Linking back to the scenario or stakeholders
For example: “While the director wants to defer recognising the impairment loss, this would not provide faithful representation given the evidence of reduced cash flows. Recognising the loss now is necessary to meet the objective of financial statements under the Conceptual Framework”.
You do not need to be perfect in your reasoning. But you do need to take a view and justify it.
Answering the Question
This may sound obvious, but many answers don’t actually address the question asked. SBR questions are usually open-ended. They ask for advice, explanations, or evaluation. You must respond to that command. A weak answer often:
- Describes accounting standards without applying them
- Rewrites the question using different words
- Misses the point by focusing on irrelevant information
To avoid this, I recommend using the examiner’s verbs as a guide. If a question says “evaluate”, then your job is not just to explain, but to assess the quality or implications. If it says “advise”, you must take a position and recommend a course of action. Every word in the requirement matters.
How to Write a Strong SBR Answer
Now that we have identified the problems, let’s look at how to improve. The key is to practise writing in a way that shows understanding and judgment. Here are some practical tips:
1. Read the Scenario Twice
Your first reading is to get a general idea. The second is to underline key facts and figures. Ask yourself:
- Who are the stakeholders?
- What are the key issues?
- What accounting standards are relevant?
- What judgments need to be made?
2. Plan Before You Write
Take five minutes to outline your answer. This helps keep your writing focused. For each requirement:
- Identify the standard
- State how it applies
- Explain the impact
- Make a judgment
3. Be Clear and Concise
Use short sentences. Avoid filler words. Each paragraph should contain one point with a supporting explanation. Use plain English where possible.
4. Use the Marks as a Guide
Most SBR questions tell you how many marks are available. Use this to work out how many points you need to make. Don’t spend 20 minutes on a 5-mark question.
5. Review Your Work
If you have time at the end, read your answer back. Check:
- Have you answered all parts of the question?
- Have you made your judgment clear?
- Are your explanations linked to the scenario?
Common Pitfalls in SBR Answers
To help you avoid the traps, here are some of the most common issues I see in student scripts:
- Over-explaining simple points– You only need to say what is necessary to earn the mark
- Not stating the accounting standard– Even a short reference like “under IAS 36” shows awareness
- Not using the information provided– If the scenario says the directors are under pressure to meet targets, use that in your answer
- Confusing ethical issues with accounting treatments– Keep your points clear and relevant
- Failing to refer to stakeholders– Remember that decisions have an impact on users of financial statements
Practice Makes Perfect
The best way to improve your SBR answers is through feedback. That is where I come in. As an ACCA SBR tutor, I provide one-to-one support, video lectures, practice questions, and personalised feedback. I can help you learn how to analyse a scenario, apply the standards, and write clear, well-structured answers.
My SBR online course includes:
- Over 100 short video lectures
- Practice questions with full debriefs
- Model answers
- Mock exams
- Marking and feedback on your writing
Whether you are resitting or taking the exam for the first time, I will work with you to improve your exam technique and boost your confidence.
Final Thoughts
Weak SBR answers don’t fail because of a lack of knowledge. They fail because the knowledge is not applied. The examiner is looking for analysis, clarity, and judgment. If you can spot the signs of a weak answer before you write it, you are already ahead. Use the scenario. Make a judgment. Keep your writing clear. And most importantly, practise writing under exam conditions.
If you are serious about passing, take a look at my ACCA SBR tuition options and let’s work together to improve your performance.