Pass Your SBR ACCA Exams with Tom Clendon

Provisions! Seemingly a simple standard to get the easy marks, but it isn't always the low-hanging fruit we expect.
In this episode, I introduce IAS 37 Provisions from the ground up. Provisions are very examinable, and let’s face it, they can look easy at first. But the examiner can make them tricky very quickly. I explain what a provision is, why the standard exists, and the three key recognition criteria: a present obligation from a past event, a probable outflow of economic benefits, and a reliable estimate.
You will learn how to apply IAS 37 in exam-style scenarios, including legal claims, environmental clean-up obligations, contingent liabilities, and the all-or-nothing approach to recognition. I also show how provisions affect profit or loss, the statement of financial position, cash flow, EPS, and even deferred tax. The aim is simple: help you pick up the easy marks, structure your answer properly, and stay calm when the examiner adds a twist.
Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.
If you’d like to view the exam question on screen and see my working, subscribe to the YouTube Channel: ⁠https://www.youtube.com/@tomclendonSBR⁠.
For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: ⁠https://tomclendon.co.uk/⁠.
Chapters:
(00:00) Why provisions are examinable
(01:24) What is a provision?
(02:47) Why IAS 37 exists
(04:08) The three recognition criteria
(04:35) Legal and constructive obligations
(05:42) The all-or-nothing approach
(06:22) When it becomes a contingent liability
(07:06) The double entry and cash flow link
(08:34) When provisions are capitalised
(09:35) Worked example: unfair dismissal claim
(13:28) Environmental clean-up provision
(17:09) Deferred tax implications

Impairment… here we go again! In this episode, I revisit IAS 36, but this time we focus on one of the areas that students often find difficult: Goodwill Impairment. I walk through the key principles, explain why goodwill must be tested through a cash-generating unit (CGU), and tackle one of the biggest exam complications: the treatment of non-controlling interests (NCI).
You’ll learn how goodwill impairment is tested in SBR questions, when impairment losses affect the parent and NCI, and why the measurement of NCI changes the calculation completely. Most importantly, I work through practical examples and journal entries so you can see exactly how the examiner expects you to approach this topic and pick up the marks in the exam.
Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.
If you’d like to view the exam question on screen and see my working, subscribe to the YouTube Channel: https://www.youtube.com/@tomclendonSBR.

For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: https://tomclendon.co.uk/.

Chapters:
(00:00) Introduction to goodwill impairment
(01:02) Recap of IAS 36 impairment basics
(02:30) Annual impairment review vs annual impairment loss
(03:12) Goodwill impairment and the P&L treatment
(04:41) Why goodwill is tested within a CGU
(06:23) Goodwill, CGUs and exam application
(06:54) NCI measurement and its impact on goodwill
(08:54) Example 1: Full goodwill impairment (Bowie)
(11:52) Accounting treatment and journal entries for full goodwill
(12:52) Example 2: Partial goodwill impairment (Ziggy)
(16:11) Journal entries and exam technique tips
(17:31) Final exam advice and close

In this episode, I explain the basics of IAS 36 impairment. We start with the key idea: an asset is impaired when its carrying value is more than its recoverable amount. I’ll talk you through the terminology, the logic, and the numbers, so it starts to feel manageable rather than messy.
You’ll learn how to calculate an impairment loss, how to account for it, and what happens when the asset has previously been revalued. We also look at reversals of impairment losses and one phrase I never want to see in an exam answer: “impairment gain”. Let’s face it, impairment gets examined, so let’s make sure you can pick up the marks.
Thanks for listening to this episode of ACCA Tom Clendon’s SBR Podcast.
If you’d like to view the exam question on screen and see my working, subscribe to the YouTube Channel: https://www.youtube.com/@tomclendonSBR.
For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: https://tomclendon.co.uk/.

Chapters:
(00:00) IAS 36 impairment basics
(01:21) When an asset is impaired
(01:36) Recoverable amount: fair value vs value in use
(03:32) Judgement and estimates in value in use
(05:20) Calculating and recording an impairment loss
(06:30) When to perform an impairment review
(08:03) Links to IFRS 18, IAS 7 and IAS 12
(12:03) Why IFRS 9 financial assets are different
(12:33) No such thing as an impairment gain
(13:44) Impairment of revalued assets
(16:01) Reversal of impairment losses
(17:01) Worked examples and exam technique

In this episode, I take you back into IFRS 15 Revenue from Contracts with Customers, but this time we zoom in on one of the trickiest areas: determining the transaction price.
I walk you through the key complications: deferred consideration (time value of money), advance payments, and variable consideration. We start with the core principles, then build it up step by step using clear, practical examples — exactly the way you’ll see it in the exam.
More importantly, you’ll learn how to turn this knowledge into marks. I show you how to deal with discounting, how to account for financing elements, and how to handle bonuses and penalties using expected value and most likely outcomes.
Here’s the thing: this is where students often drop marks. If you’re struggling with how much revenue to recognise and when, this episode gives you a clear method to follow, so you can structure your answer, apply the rules properly, and pick up those easy, valuable marks.
Thanks for listening to this episode of ACCA Tom Clendon’s SBR Podcast.
If you’d like to view the exam question on screen and see my working, subscribe to the YouTube Channel: https://www.youtube.com/@tomclendonSBR.

For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: https://tomclendon.co.uk/.Chapters
(00:00) Introduction – Why transaction price matters for SBR
(01:11) Recap of the 5-step revenue model
(01:49) Determining the transaction price – key challenges
(02:41) Deferred consideration – buy now, pay later
(04:32) Time value of money and discounting
(05:45) Unwinding the discount (finance income)
(06:35) Advance payments – deferred income explained
(08:17) Financing element in contract liabilities
(09:20) Variable consideration – bonuses and penalties
(10:46) Expected value vs most likely method
(11:14) Worked example 1 – construction contract (expected value)
(16:31) Year 2 adjustment and revenue true-up
(17:53) Worked example 2 – service contract (most likely outcome)
(21:50) Exam technique and key reminders

In this episode, I walk you through one of the most examinable areas in the exam: revenue under IFRS 15 Revenue from Contracts with Customers. We start right from the basics, so you’re not left guessing, and build up to the core principles that underpin the standard.
I talk through the five-step model, explain why revenue is such a high-risk area (especially from an audit perspective), and why simply memorising the steps won’t earn you marks in the exam.
More importantly, I show you how to apply that knowledge to a real exam-style question. You’ll see exactly how to identify performance obligations, allocate the transaction price, and deal with timing issues (whether revenue is recognised at a point in time or over time).
Thanks for listening to this episode of ACCA Tom Clendon’s SBR Podcast.
If you’d like to view the exam question on screen and see my working, subscribe to the YouTube Channel: https://www.youtube.com/@tomclendonSBR.
For access to on-demand support and guidance for your ACCA Journey, visit my website to see my current course offering: https://tomclendon.co.uk/.
Chapters:
(00:00) Why revenue matters for exam success
(00:18) Episode overview and learning approach
(00:51) Introduction to Zaakirah
(01:12) What is revenue and why it’s high risk
(01:47) Timing issues and manipulation risks
(02:01) Introduction to IFRS 15 Revenue from Contracts with Customers
(02:33) The five-step model explained
(03:01) Step 1: Identifying the contract
(03:18) Step 2: Identifying performance obligations
(04:02) Step 3: Determining the transaction price
(04:29) Step 4: Allocating the transaction price
(05:06) Step 5: Recognising revenue (point in time vs over time)
(05:53) Why memorising won’t earn marks
(06:26) Moving to exam application
(06:40) Understanding the exam requirement (5-mark question)
(08:08) Identifying performance obligations in the scenario
(10:12) Allocating revenue using stand-alone selling prices
(11:20) Timing of revenue recognition
(12:19) Calculating correct revenue figure
(12:47) Correcting overstated revenue (exam technique)
(13:27) Current vs non-current liability (deferred revenue)
(13:39) Final exam tips and wrap-up