This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now.This episode focuses on IAS 21 and what happens when a group has an overseas subsidiary preparing its financial statements in a different functional currency. I explain how those financial statements are translated into the group’s presentation currency and why exchange differences arise as part of that process.You’ll learn four key rules: assets and liabilities are translated at the closing rate, income and expenses normally at the average rate, goodwill at the closing rate, and the resulting group exchange differences are recognised in OCI and equity rather than immediately in profit or loss. I also explain how NCI can affect the allocation of exchange differences and what happens to the cumulative exchange difference when the subsidiary is eventually disposed of.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:<a href="https://www.youtube.com/@tomclendonSBR">⁠⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠⁠</a>.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:<a href="https://tomclendon.co.uk/">⁠⁠⁠⁠ ⁠⁠</a><a href="https://tomclendon.co.uk/%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0">https://tomclendon.co.uk/⁠⁠⁠⁠⁠⁠</a>.

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now. This episode focuses on IAS 21 and what happens when a group has an overseas subsidiary preparing its financial statements in a different functional currency. I explain how those financial statements are translated into the group’s presentation currency and why exchange differences arise as part of that process. You’ll learn four key rules: assets and liabilities are translated at the closing rate, income and expenses normally at the average rate, goodwill at the closing rate, and the resulting group exchange differences are recognised in OCI and equity rather than immediately in profit or loss. I also explain how NCI can affect the allocation of exchange differences and what happens to the cumulative exchange difference when the subsidiary is eventually disposed of. 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/⁠⁠⁠⁠⁠⁠.

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now.This episode focuses on IAS 21 and what happens when a group has an overseas subsidiary preparing its financial statements in a different functional currency. I explain how those financial statements are translated into the group’s presentation currency and why exchange differences arise as part of that process.You’ll learn four key rules: assets and liabilities are translated at the closing rate, income and expenses normally at the average rate, goodwill at the closing rate, and the resulting group exchange differences are recognised in OCI and equity rather than immediately in profit or loss. I also explain how NCI can affect the allocation of exchange differences and what happens to the cumulative exchange difference when the subsidiary is eventually disposed of.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:<a href="https://www.youtube.com/@tomclendonSBR" rel="noopener noreferrer">⁠⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠⁠</a>.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:<a href="https://tomclendon.co.uk/" rel="noopener noreferrer">⁠⁠⁠⁠ ⁠⁠</a><a href="https://tomclendon.co.uk/%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0" rel="noopener noreferrer">https://tomclendon.co.uk/⁠⁠⁠⁠⁠⁠</a>.

IAS 21: Overseas Subsidiaries and Exchange Differences | Old But Gold Series

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now.Goodwill is central to group accounting and comes up again and again in SBR. In this episode, I give you a focused tour of what you need to know, starting with the basic goodwill calculation: the parent’s investment, the non-controlling interest and the fair value of the subsidiary’s identifiable net assets at acquisition.You’ll learn how consideration is measured, how the choice of NCI measurement affects goodwill and impairment, and why fair value adjustments can also create deferred tax. I also cover identifiable intangible assets, contingent liabilities, impairment of goodwill, bargain purchases, step acquisitions, foreign subsidiaries, disposals and the 12-month measurement period. There is plenty here, but the aim is simple: helping you recognise which goodwill rule the examiner wants you to apply.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:<a href="https://www.youtube.com/@tomclendonSBR">⁠⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠⁠</a>.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:<a href="https://tomclendon.co.uk/">⁠⁠⁠⁠ ⁠⁠</a><a href="https://tomclendon.co.uk/%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0">https://tomclendon.co.uk/⁠⁠⁠⁠⁠⁠</a>. (0:00) Old but Gold introduction(0:33) What you need to know about goodwill(1:08) Parent investment and fair value of consideration(2:07) Measuring the non-controlling interest(2:30) NCI measurement and impairment(3:10) Calculating goodwill(3:26) Fair value adjustments and deferred tax(4:23) Intangible assets and contingent liabilities on acquisition(5:27) Goodwill impairment and cash-generating units(6:10) Negative goodwill and bargain purchases(6:39) Step acquisitions and foreign subsidiaries(7:19) Disposals, control-to-control transactions and measurement period

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now. Goodwill is central to group accounting and comes up again and again in SBR. In this episode, I give you a focused tour of what you need to know, starting with the basic goodwill calculation: the parent’s investment, the non-controlling interest and the fair value of the subsidiary’s identifiable net assets at acquisition. You’ll learn how consideration is measured, how the choice of NCI measurement affects goodwill and impairment, and why fair value adjustments can also create deferred tax. I also cover identifiable intangible assets, contingent liabilities, impairment of goodwill, bargain purchases, step acquisitions, foreign subsidiaries, disposals and the 12-month measurement period. There is plenty here, but the aim is simple: helping you recognise which goodwill rule the examiner wants you to apply. 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/⁠⁠⁠⁠⁠⁠. (0:00) Old but Gold introduction (0:33) What you need to know about goodwill (1:08) Parent investment and fair value of consideration (2:07) Measuring the non-controlling interest (2:30) NCI measurement and impairment (3:10) Calculating goodwill (3:26) Fair value adjustments and deferred tax (4:23) Intangible assets and contingent liabilities on acquisition (5:27) Goodwill impairment and cash-generating units (6:10) Negative goodwill and bargain purchases (6:39) Step acquisitions and foreign subsidiaries (7:19) Disposals, control-to-control transactions and measurement period

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now.Goodwill is central to group accounting and comes up again and again in SBR. In this episode, I give you a focused tour of what you need to know, starting with the basic goodwill calculation: the parent’s investment, the non-controlling interest and the fair value of the subsidiary’s identifiable net assets at acquisition.You’ll learn how consideration is measured, how the choice of NCI measurement affects goodwill and impairment, and why fair value adjustments can also create deferred tax. I also cover identifiable intangible assets, contingent liabilities, impairment of goodwill, bargain purchases, step acquisitions, foreign subsidiaries, disposals and the 12-month measurement period. There is plenty here, but the aim is simple: helping you recognise which goodwill rule the examiner wants you to apply.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:<a href="https://www.youtube.com/@tomclendonSBR" rel="noopener noreferrer">⁠⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠⁠</a>.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:<a href="https://tomclendon.co.uk/" rel="noopener noreferrer">⁠⁠⁠⁠ ⁠⁠</a><a href="https://tomclendon.co.uk/%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0" rel="noopener noreferrer">https://tomclendon.co.uk/⁠⁠⁠⁠⁠⁠</a>. (0:00) Old but Gold introduction(0:33) What you need to know about goodwill(1:08) Parent investment and fair value of consideration(2:07) Measuring the non-controlling interest(2:30) NCI measurement and impairment(3:10) Calculating goodwill(3:26) Fair value adjustments and deferred tax(4:23) Intangible assets and contingent liabilities on acquisition(5:27) Goodwill impairment and cash-generating units(6:10) Negative goodwill and bargain purchases(6:39) Step acquisitions and foreign subsidiaries(7:19) Disposals, control-to-control transactions and measurement period

Goodwill: What You Need to Know to Pass SBR | Old But Gold Series

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now.In this episode, I strip climate change and sustainability reporting back to the basics. I explain greenhouse gas emissions, gross and net emissions, carbon credits and, crucially, the difference between Scope 1, Scope 2 and Scope 3 emissions. I also connect this terminology to the broader principles of sustainability reporting.You’ll learn the language you need before you can confidently tackle an exam requirement on sustainability. I explain Scope 1 as direct emissions, Scope 2 as energy-related emissions and Scope 3 as emissions connected with the wider value chain. We also look at metrics, targets, governance, strategy, risk management and why concepts such as materiality, relevance and faithful representation still matter.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:<a href="https://www.youtube.com/@tomclendonSBR">⁠⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠⁠</a>.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:<a href="https://tomclendon.co.uk/">⁠⁠⁠⁠ ⁠⁠</a><a href="https://tomclendon.co.uk/%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0">https://tomclendon.co.uk/⁠⁠⁠⁠⁠⁠</a>. (0:00) Old but Gold introduction(0:57) Why climate change matters in SBR(1:39) What is climate change?(2:14) Greenhouse gases and carbon emissions(3:12) Why accountants are involved in sustainability reporting(4:00) Net zero, gross emissions and net emissions(5:04) What are carbon credits?(6:14) Scope 1 emissions(6:43) Scope 2 emissions(7:34) Scope 3 and the value chain(8:08) Recap of Scope 1, 2 and 3(8:34) IFRS S2, metrics, targets and materiality

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now. In this episode, I strip climate change and sustainability reporting back to the basics. I explain greenhouse gas emissions, gross and net emissions, carbon credits and, crucially, the difference between Scope 1, Scope 2 and Scope 3 emissions. I also connect this terminology to the broader principles of sustainability reporting. You’ll learn the language you need before you can confidently tackle an exam requirement on sustainability. I explain Scope 1 as direct emissions, Scope 2 as energy-related emissions and Scope 3 as emissions connected with the wider value chain. We also look at metrics, targets, governance, strategy, risk management and why concepts such as materiality, relevance and faithful representation still matter. 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/⁠⁠⁠⁠⁠⁠. (0:00) Old but Gold introduction (0:57) Why climate change matters in SBR (1:39) What is climate change? (2:14) Greenhouse gases and carbon emissions (3:12) Why accountants are involved in sustainability reporting (4:00) Net zero, gross emissions and net emissions (5:04) What are carbon credits? (6:14) Scope 1 emissions (6:43) Scope 2 emissions (7:34) Scope 3 and the value chain (8:08) Recap of Scope 1, 2 and 3 (8:34) IFRS S2, metrics, targets and materiality

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now.In this episode, I strip climate change and sustainability reporting back to the basics. I explain greenhouse gas emissions, gross and net emissions, carbon credits and, crucially, the difference between Scope 1, Scope 2 and Scope 3 emissions. I also connect this terminology to the broader principles of sustainability reporting.You’ll learn the language you need before you can confidently tackle an exam requirement on sustainability. I explain Scope 1 as direct emissions, Scope 2 as energy-related emissions and Scope 3 as emissions connected with the wider value chain. We also look at metrics, targets, governance, strategy, risk management and why concepts such as materiality, relevance and faithful representation still matter.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:<a href="https://www.youtube.com/@tomclendonSBR" rel="noopener noreferrer">⁠⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠⁠</a>.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:<a href="https://tomclendon.co.uk/" rel="noopener noreferrer">⁠⁠⁠⁠ ⁠⁠</a><a href="https://tomclendon.co.uk/%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0" rel="noopener noreferrer">https://tomclendon.co.uk/⁠⁠⁠⁠⁠⁠</a>. (0:00) Old but Gold introduction(0:57) Why climate change matters in SBR(1:39) What is climate change?(2:14) Greenhouse gases and carbon emissions(3:12) Why accountants are involved in sustainability reporting(4:00) Net zero, gross emissions and net emissions(5:04) What are carbon credits?(6:14) Scope 1 emissions(6:43) Scope 2 emissions(7:34) Scope 3 and the value chain(8:08) Recap of Scope 1, 2 and 3(8:34) IFRS S2, metrics, targets and materiality

Climate Change 101 and Sustainability Reporting | Old But Gold Series

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now.OCI and OCE sound very similar, but they are not the same thing. In this episode, I explain the difference between other comprehensive income, which is a performance statement for the period, and other components of equity, which is a cumulative balance within equity on the statement of financial position. I also show how the two are linked.You’ll see how this terminology connects across SBR, including IAS 16 revaluations, IAS 21 foreign exchange differences, IFRS 9 financial instruments, IAS 19 pensions and IFRS 2 share-based payments. The key is not just learning two definitions. It is understanding where gains and losses go, how they build up within equity, and being comfortable with the integrated nature of SBR questions.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:<a href="https://www.youtube.com/@tomclendonSBR">⁠⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠⁠</a>.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:<a href="https://tomclendon.co.uk/">⁠⁠⁠⁠ ⁠⁠</a><a href="https://tomclendon.co.uk/%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0">https://tomclendon.co.uk/⁠⁠⁠⁠⁠⁠</a>. (0:00) Old but Gold introduction(1:00) OCI and OCE: same, same but different(1:30) What is other comprehensive income?(2:07) What is other components of equity?(2:43) The relationship between OCI and OCE(3:07) What goes through OCI(3:22) Revaluations, foreign exchange, IFRS 9 and pensions(4:36) Items in OCE that do not come through OCI(5:21) IFRS 2 share-based payments and OCE(6:16) Why this terminology matters across SBR

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now. OCI and OCE sound very similar, but they are not the same thing. In this episode, I explain the difference between other comprehensive income, which is a performance statement for the period, and other components of equity, which is a cumulative balance within equity on the statement of financial position. I also show how the two are linked. You’ll see how this terminology connects across SBR, including IAS 16 revaluations, IAS 21 foreign exchange differences, IFRS 9 financial instruments, IAS 19 pensions and IFRS 2 share-based payments. The key is not just learning two definitions. It is understanding where gains and losses go, how they build up within equity, and being comfortable with the integrated nature of SBR questions. 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/⁠⁠⁠⁠⁠⁠. (0:00) Old but Gold introduction (1:00) OCI and OCE: same, same but different (1:30) What is other comprehensive income? (2:07) What is other components of equity? (2:43) The relationship between OCI and OCE (3:07) What goes through OCI (3:22) Revaluations, foreign exchange, IFRS 9 and pensions (4:36) Items in OCE that do not come through OCI (5:21) IFRS 2 share-based payments and OCE (6:16) Why this terminology matters across SBR

This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now.OCI and OCE sound very similar, but they are not the same thing. In this episode, I explain the difference between other comprehensive income, which is a performance statement for the period, and other components of equity, which is a cumulative balance within equity on the statement of financial position. I also show how the two are linked.You’ll see how this terminology connects across SBR, including IAS 16 revaluations, IAS 21 foreign exchange differences, IFRS 9 financial instruments, IAS 19 pensions and IFRS 2 share-based payments. The key is not just learning two definitions. It is understanding where gains and losses go, how they build up within equity, and being comfortable with the integrated nature of SBR questions.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:<a href="https://www.youtube.com/@tomclendonSBR" rel="noopener noreferrer">⁠⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠⁠</a>.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:<a href="https://tomclendon.co.uk/" rel="noopener noreferrer">⁠⁠⁠⁠ ⁠⁠</a><a href="https://tomclendon.co.uk/%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0%E2%81%A0" rel="noopener noreferrer">https://tomclendon.co.uk/⁠⁠⁠⁠⁠⁠</a>. (0:00) Old but Gold introduction(1:00) OCI and OCE: same, same but different(1:30) What is other comprehensive income?(2:07) What is other components of equity?(2:43) The relationship between OCI and OCE(3:07) What goes through OCI(3:22) Revaluations, foreign exchange, IFRS 9 and pensions(4:36) Items in OCE that do not come through OCI(5:21) IFRS 2 share-based payments and OCE(6:16) Why this terminology matters across SBR

OCI and OCE: What’s the Difference? | Old But Gold Series

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: <a href="https://www.youtube.com/@tomclendonSBR" target="_blank" rel="ugc noopener noreferrer">⁠https://www.youtube.com/@tomclendonSBR⁠</a>.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: <a href="https://tomclendon.co.uk/" target="_blank" rel="ugc noopener noreferrer">⁠https://tomclendon.co.uk/⁠</a>.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

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

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: <a href="https://www.youtube.com/@tomclendonSBR" rel="noopener noreferrer">⁠https://www.youtube.com/@tomclendonSBR⁠</a>.For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering: <a href="https://tomclendon.co.uk/" rel="noopener noreferrer">⁠https://tomclendon.co.uk/⁠</a>.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

Provisions, Contingent Assets & Liabilities: Getting Started with IAS 37

Tom Clendon, SBR online lecturer explains why and how deferred tax is accounted for. Look out the another episode (Part 2) where we deep dive into how deferred tax is applied to with other standards e.g. IFRS 16 Leases

Tom Clendon, SBR online lecturer explains why and how deferred tax is accounted for. Look out the another episode (Part 2) where we deep dive into how deferred tax is applied to with other standards e.g. IFRS 16 Leases

IAS12 Income Taxes - the way, the how and the basic principles of accounting for deferred tax (Part 1)

In October 2020 Tom was interviewed and asked about his experiences as an ACCA tutor

In October 2020 Tom was interviewed and asked about his experiences as an ACCA tutor

Tom Clendon interviewed by James Perry

Tom Clendon is an online ACCA SBR Lecturer and Expert Tutor for students of ACCA across the globe. If you're a student currently studying for the ACCA Exams, then you're in the right place!
This is an award winning podcast. In 2023 it was recognised with a PQ award from PQ magazine.

To find out more about how Tom can help you with your ACCA studies, head to TomClendon.co.uk.

Education

Tom Clendon is an online ACCA SBR Lecturer and Expert Tutor for students of ACCA across the globe. If you're a student currently studying for the ACCA Exams, then you're in the right place! This is an award winning podcast. In 2023 it was recognised with a PQ award from PQ magazine. To find out more about how Tom can help you with your ACCA studies, head to TomClendon.co.uk.

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