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SBL - Sept 21 - June 22 SG Final
acca financial reporting (ACCA F7)
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© ACCA 2021-2022 All rights reserved. 1
Strategic
Business Leader
(SBL)
Syllabus and study guide
September 2021 to June 2022
Designed to help with planning study and to provide detailed information on what could be assessed in any examination session
© ACCA 2021-2022 All rights reserved. 2
Contents
Intellectual levels ..................................... 3
Learning hours and education recognition ................................................................... 3
The structure of ACCA qualification ........ 4
Guide to ACCA examination structure and delivery mode ............................................. 5
Guide to ACCA examination assessment 7
Relational diagram linking Strategic Business Leader (SBL) with other exams .... 8
Approach to examining the syllabus ........ 9
Introduction to the syllabus .................... 11
Main capabilities ................................... 13
The syllabus ........................................ 14
Detailed study guide ............................ 15
Summary of changes to Strategic Business Leader (SBL) ............................. 23
© ACCA 2021-2022 All rights reserved. 4
3. The structure of ACCA qualification
© ACCA 2021-2022 All rights reserved. 5
4. Guide to ACCA
examination structure and
delivery mode
The pass mark for all ACCA Qualification examinations is 50%.
The structure and delivery mode of examinations varies.
Applied Knowledge The Applied Knowledge examinations contain 100% compulsory questions to encourage candidates to study across the breadth of each syllabus. These are assessed by a two-hour computer based examination.
Applied Skills The Corporate and Business Law exam is a two-hour computer-based objective test examination for English and Global.
For the format and structure of the Corporate and Business Law or Taxation variant exams, refer to the ‘Approach to examining the syllabus’ section of the relevant syllabus and study guide.
The other Applied Skills examinations (PM, TX-UK, FR, AA, and FM) contain a mix of objective and longer type questions with a duration of three hours for 100 marks. These are assessed by a three hour computer- based exam. Prior to the start of each exam there will be time allocated for students to be informed of the exam instructions.
The longer (constructed response) question types used in the Applied Skills exams (excluding Corporate and Business Law) require students to effectively mimic what they do in the workplace. Students will need to use a range of digital skills and demonstrate their ability to use spread sheets and word processing tools in producing their answers, just as they would use these tools in the workplace. These assessment methods allow ACCA to focus on testing students’ technical and application skills, rather than, for example, their ability to perform simple calculations.
Strategic Professional Strategic Business Leader is ACCA’s case study examination at Strategic Professional and is examined as a closed book exam of four hours, including reading, planning and reflection time which can be used flexibly within the examination. There is no pre-seen information and all exam related material, including case information and exhibits are available within the examination. Strategic Business Leader is an exam based on one main business scenario which involves candidates completing several tasks within which additional material may be introduced. All questions are compulsory and each examination will contain a total of 80 technical marks and 20 Professional Skills marks.
The other Strategic Professional exams are all of three hours and 15 minutes duration. All contain two sections and all questions are compulsory. These exams all contain four professional marks.
From 2020, Strategic Professional exams became available by computer based examination. More detail regarding what delivery mode is available in your market will be on the ACCA global website.
With Applied Knowledge and Applied Skills exams assessed by computer based exam, ACCA is committed to continuing on its journey to assess all exams within the ACCA Qualification using this delivery mode.
The question types used at Strategic Professional require students to effectively mimic what they would do in the workplace. These exams offer ACCA the opportunity to focus on the application of knowledge to scenarios, using a range of tools including word processor, spreadsheets and presentation slides - not only enabling students to demonstrate their technical and professional skills but also their use of the technology available to today’s accountants.
5. Guide to ACCA
examination assessment
ACCA reserves the right to examine any learning outcome contained within the study guide. This includes knowledge, techniques, principles, theories, and concepts as specified. For the financial accounting, audit and assurance, law and tax exams except where indicated otherwise, ACCA will publish examinable documents once a year to indicate exactly what regulations and legislation could potentially be assessed within identified examination sessions.
For most examinations (not tax), regulations issued or legislation passed on or before 31 August annually, will be examinable from 1 September of the following year to 31 August of the year after that. Please refer to the examinable documents for the exam (where relevant) for further information.
Regulations issued or legislation passed in accordance with the above dates may be examinable even if the effective date is in the future.
The term issued or passed relates to when regulation or legislation has been formally approved.
The term effective relates to when regulation or legislation must be applied to an entity’s transactions and business practices.
The study guide offers more detailed guidance on the depth and level at which the examinable documents will be examined. The study guide should therefore be read in conjunction with the examinable documents list.
For UK tax exams, examinations falling within the period 1 June to 31 March will generally examine the Finance Act which was passed in the previous year. Therefore,
exams falling in the period 1 June 2021 to 31 March 2022 will examine the Finance Act 2020 and any examinable legislation which is passed outside of the Finance Act before 31 May 2020.
For additional guidance on the examinability of specific tax rules and the depth in which they are likely to be examined, reference should be made to the relevant Finance Act article written by the examining team and published on the ACCA website.
None of the current or impending devolved taxes for Scotland, Wales, and Northern Ireland is, or will be, examinable.
Additional clarification regarding the impact of the UK leaving the European Union (EU)
For exams in the period 1 June 2021 to 31 March 2022, it will be assumed that the EU acquisition rules continue to apply.
6. Relational diagram linking Strategic Business Leader
(SBL) with other exams
This diagram shows links between this exam and other exams preceding or following it. This diagram indicates where students are expected to have underpinning knowledge and where it would be useful to review previous learning before undertaking study.
computer-based exams available via the practice platform and the ACCA website.
Guide to exam structure The examination is based on an integrated case study containing a number of assignments which will vary at each examination. These assignments or tasks may require the candidate to take on different roles, depending on the situation. The number of marks allocated to all these assignments or the sub-parts of these will add up to 100 in total. Within the total marks available, there are 20 Professional Skills marks. Usually each task will contain some professional skills marks which may vary by examination, depending on the requirements. All tasks must be completed.
The examination is of 4 hours duration, but this includes Reading, Planning and Reflection time (RPRT). This time can be used flexibly at any time during the exam.
Guidance on learning hours The Strategic Business Leader examination has a broader syllabus than other exams at the Professional Qualifying Level. The assessment style as a fully integrated exam and the substantial use of Professional Skills marking to support technical marks, requires more teaching and learning time than in the other exams.
The additional time is required for the following:
- To cover the broader syllabus content
- To allow adequate practice time for case study assessment and revision.
- To encourage and develop the demonstration of professional skills to support the award of Professional Skills marks.
In broad terms it is recommended that Education Providers and students should spend 50% more learning time in preparation for this examination than normally required for other exams at this level. This includes direct contact time and guided learning time where a taught
programme is delivered, or self-study and revision time where the student is self-taught or uses distance-learning programmes.
8. Introduction to the syllabus
The aim of the syllabus is to demonstrate organisational leadership and senior consultancy or advisory capabilities and relevant professional skills, through the context of an integrated case study.
The syllabus for Strategic Business Leader acts as the key leadership syllabus at the Strategic Professional level and is a substantial integrated examination. The examination requires candidates to demonstrate a range of professional skills demanded by effective leaders or in advising or supporting senior management in directing organisations. The syllabus therefore combines the main functions of organisations in the context of leadership capability. The main capabilities of the Strategic Business Leader syllabus assume essential technical skills and knowledge have been acquired in theApplied Knowledge and Applied Skills examinations where some of the core capabilities of Strategic Business Leader will have been introduced in a subject-specific context, such as governance, internal audit, control, risk, finance, and management. The examination also draws upon a range of ethical and professional skills acquired in the Ethics and Professional Skills module, which should be completed before attempting any of the Strategic Professional examinations..
The Strategic Business Leader syllabus is covered in nine main sections with leadership, professionalism and ethics and corporate governance used as the initial focus for the rest of the syllabus. Excellent leadership involves having a team of capable and responsible directors, setting an appropriate ‘tone from the top’ and embedding appropriate corporate and cultural values within the organisation. This is supported by a sound governance structure and effective management structures. The syllabus begins by examining leadership and having in place responsible and ethical leaders, having an awareness of who they are responsible to This section also covers personal and
professional ethics, ethical frameworks – and professional values – as applied to a senior manager or adviser’s role and as a guide to appropriate behaviour and conduct in a variety of situations. Clearly linked to organisational leadership is the existence of an effective governance structure within organisations in the broad context of the agency relationship. This aspect of the syllabus focuses on the respective roles and responsibilities of directors, the relevant committee structures and the effective scrutiny of the performance of senior management, demonstrating their accountability by reporting more widely and holistically to stakeholders under an integrated reporting <IR> framework.
It is only after the fundamental organisational leadership and governance structures and values are in place thatstrategy can be determined and the strategic position of the organisation can be assessed and strategic options evaluated and implemented. Evaluating strategic options, making strategic choices and implementing strategy requires the organisation’s leaders, or their advisers, to fully understand the risks involved so the syllabus then examines the identification, assessment, and control of risk as a key aspect of responsible leadership and management. The syllabus also includes a section relating to and applying IT and security controls at all levels of the organisation from strategic considerations including big data, machine learning, e-business, cloud computing and smart technology through to using IT in the management of information, controlling organisations, and in financial and organisational operations section also focuses on the growing importance of ‘cyber security’
To support the management of risk the syllabus also addresses organisational control in its wider context, including internal audit, review, internal control, and appropriate reporting to implement and support effective governance, including compliance issues related to the safeguard
9. Main capabilities
On successful completion of this exam, candidates should be able to:
A Apply excellent leadership and ethical skills to set the ‘tone from the top’ and promote a positive culture within the organisation, adopting a whole organisation perspective in managing performance and value creation. B Evaluate the effectiveness of the governance and agency system of an organisation and recognise the responsibility of the board or other agents towards their stakeholders, including the organisation’s social responsibilities and the reporting implications. C Evaluate the strategic position of the organisation against the external environment and the availability of internal resources, to identify feasible strategic options. D Analyse the risk profile of the organisation and of any strategic options identified, within a culture of responsible risk management. E Select and apply appropriate information technologies and data analytics, to analyse factors affecting the organisation’s value chain to identify strategic opportunities and implement strategic options within a framework of robust IT security controls. F Evaluate management reporting and internal control and audit systems to ensure compliance and the achievement of organisation’s objectives and the safeguarding of organisational assets G Apply high level financial techniques from the Applied Skills exams in the planning, implementation and evaluation of strategic options and actions. H Enable success through innovative thinking, applying best in class strategies and disruptive technologies in the management of change; initiating, leading and organising projects,while effectively managing talent and other business resources. I Apply a range of Professional Skills in addressing requirements within the Strategic Leader examination and in preparation for, or to support, current work experience. J Demonstrate other employability and digital skills in preparing for and taking SBL examinations.
This diagram illustrates the flows and links between the main capabilities of the syllabus and should be used as an aid to planning teaching and learning in a structured way.
10. The syllabus
A Leadership
- Qualities of leadership
- Leadership and organisational culture
- Professionalism, ethical codes and the public interest
B Governance
- Agency
- Stakeholder analysis and organisational social responsibility
- Governance scope and approaches
- Reporting to stakeholders
- The board of directors
- Public sector governance
C Strategy
- Concepts of strategy
- Environmental issues
- Competitive forces
- The internal resources, capabilities and competences of an organisation
- Strategic choices
D Risk
- Identification, assessment and measurement of risk
- Managing, monitoring and mitigating risk
E Technology and data analytics
- Cloud ,mobile and smart technology
- Big data and data analytics
- Machine learning, AI and robotics
- E- business: value chain
- IT systems security and control
F Organisational control and audit
- Management and internal control systems
- Audit and compliance
- Internal control and management reporting
G Finance in planning and decision-making
- Finance transformation
- Financial analysis and decision- making techniques
- Cost and management accounting
H Enabling success and change management
- Enabling success: organising
- Enabling success: disruptive technologies
- Enabling success: talent management
- Enabling success: performance excellence
- Managing strategic change
- Leading and managing projects
I Professional skills
- Communication
- Commercial acumen
- Analysis
- Scepticism
- Evaluation
J Other employability and digital skills
- Use computer technology to efficiently access and manipulate relevant information.
- Work on relevant response options, using available functions and technology, as would be required in the workplace.
- Navigate windows and computer screens to create and amend responses to exam requirements, using appropriate tools.
- Present data and information effectively, using the appropriate tools.
c) Discuss different models of organisational ownership that influence different governance regimes (family firms versus joint stock company-based models) and how they work in practice.[2]
d) Apply general principles of the International Corporate Governance Network (ICGN)’s Global Governance Principles to organisations’ corporate governance.[2]
4. Reporting to stakeholders
a) Discuss the factors that determine organisational policies on reporting to stakeholders, including stakeholder power and interests.[3]
b) Assess the role and value of integrated reporting and evaluate the issues concerning accounting for sustainability.[2]
c) Advise on the the guiding principles, the typical content elements and the six capitals of an integrated report, and discuss the usefulness of this
information to stakeholders.[3].
d) Describe and assess the social and environmental impacts that economic activity can have (in terms of social and environmental ‘footprints’ and environmental reporting).[3]
e) Describe the main features of internal management systems for underpinning environmental and sustainability accounting including EMAS and ISO 14000.[2]
f) Examine how the audit of integrated reports can provide adequate assurance of the relevance and reliability of organisation reports to stakeholders.[2]
5. The board of directors
a) Assess the duties of directors and functions of the board (including setting a responsible ‘tone’ from the top and being accountable for the performance and impacts of the organisation:[3]
b) Evaluate the cases for and against, unitary and two-tier board structures.[3]
c) Describe and assess the purposes, roles, responsibilities and performance of Non-Executive Directors (NEDs).[3]
d) Describe and assess the importance of, induction, performance appraisal and the continuing professional development of directors on boards of directors.[3]
e) Explain the meanings of ‘diversity’ and critically evaluate issues of diversity on boards of directors.[3]
f) Assess the importance, roles purposes and accountabilities of the main board committees within effective governance:[3]
g) Describe and assess the general principles of remunerating directors and how to modify directors’ behaviour to align with stakeholder interests: [3]
h) Explain and analyse the regulatory, strategic and labour market issues associated with determining directors’ remuneration.[3]
6. Public sector governance
a) Discuss public sector, private sector, charitable status and non-governmental (NGO and quasi-NGOs) forms of organisation, including agency relationships, stakeholders’ aims and objectives and performance criteria.[2]
b) Assess and evaluate the strategic objectives, leadership and governance arrangements specific to public sector organisations as contrasted with private sector.[3]
c) Explain democratic control, political influence and policy implementation in public sector organisations.[3]
d) Discuss obligations of the public sector organisations to meet the economy, effectiveness, efficiency (3 ‘E’s) criteria
and promote public value.[3]
C Strategy
1. Concepts of strategy
a) Explain the fundamental importance of strategy and strategic decisions within different organisational contexts.[2]
b) Apply the Johnson, Scholes and Whittington model of strategic management – the strategic position, strategic choices and strategy into action.[3]
2. Environmental issues
a) Assess the macro-environment of an organisation using appropriate models such as PESTEL.[3]
b) Assess the implications of strategic drift.[3]
c) Evaluate the external key drivers of change likely to affect the structure of a sector or market.[3]
d) Apply Porter’s Diamond to explore the influence of national competitiveness on the strategic position of an organisation.[3]
e) Assess scenarios reflecting different assumptions about the future environment of an organisation.[3]
3. Competitive forces
a) Evaluate the sources of competition in an industry or sector using Porter’s five forces framework.[3]
b) Analyse customers and markets including market segmentation.[2]
c) Apply Porter’s value chain to assist orgainsations to identify value adding activities in order to create and sustain competitive advantage.[2]
d) Advise on the role and influence of value networks.[3]
e) Evaluate the opportunities and threats posed by the competitive environment of an organisation.[2]
4. The internal resources, capabilities and competences of an organisation
a) Identify and evaluate an organisations strategic capability, threshold resources, threshold competences, unique resources and core competences.[3]
b) Discuss the capabilities required to sustain competitive advantage.[2]
c) Discuss the contribution of organisational knowledge to the strategic capability of an organisation.[2]
d) Identify and evaluate the strengths and weaknesses of an organisation and formulate an appropriate SWOT analysis.[2]
5. Strategic choices
a) Assess the suitability, feasibility and acceptability of different strategic options to an organisation.[3]
b) Assess the opportunities and potential problems of pursuing different organisation strategies of product/market diversification from a national, multinational and global perspective.[3]
c) Advise on how the 7 ‘P’s, including price- based strategies, differentiation and lock-in can help an organisation sustain its competitive advantage.[3]
d) Apply the Boston Consulting Group (BCG) and public sector matrix portfolio models to assist organisation in managing their organisational portfolios.[3]
e) Recommend generic development directions using the Ansoff matrix.[2]
f) Assess how internal development, or business combinations, strategic alliances and partnering can be used to achieve business growth 3 .[3]
3. Machine learning, AI and robotics
a) Explain the potential benefits of using artificial intelligence (AI), robotics and other forms of machine learning to support strategic decisions and the pursuit of corporate objectives.[2]
b) Assess the risk, control and ethical implications of using (AI), robotics and other forms of machine learning.[3]
4. E- business: value chain
a) Discuss and evaluate the main organisation and market models for delivering e-business.[3]
b) Assess and advise on the potential application of information technology to support e- business.[3]
c) Explore the characteristics of the media of e-marketing using the 6 ’I’s of Interactivity, Intelligence, Individualisation, Integration, Industry structure and Independence of location.[2] d) Assess the importance of on-line branding in e-marketing and compare it with traditional branding.[2]
e) Explore different methods of acquiring and managing suppliers and customers through exploiting e-business technologies.[2]
5. IT systems security and control
a) Discuss from a strategic perspective the continuing need for effective information systems control within an organisation.[3] b) Assess and advise on the adequacy of information technology and systems security controls for an organisation.[3]
c) Evaluate and recommend ways to promote cyber security.[3]
d) Evaluate, and if necessary, recommend improvements or changes to controls over the safeguard of information technology assets, to ensure the organisation’s ability to meet business objectives.[3]
F Organisational control and
audit
1. Management and internal control systems
a) Evaluate the key components or features of effective internal control systems such as included under the COSO framework.[3]
b) Assess whether information flows to management are adequate for the purpose of managing internal control and risk.[3]
c) Evaluate the effectiveness and potential weaknesses of internal control systems.[3]
d) Discuss and advise on the importance of sound internal control and compliance with legal and regulatory requirements and the consequences to an organisation of poor control and non- compliance.[2]
e) Recommend new internal control systems or changes to the components of existing systems to help prevent fraud, error, waste or harmful environmental impacts using appropriate metrics.[2]
2. Audit and compliance
a) Examine the need for an internal audit function in the light of regulatory and organisational requirements.[3]
b) Justify the importance of auditor independence in all client-auditor situations (including internal audit) and the role of internal audit in compliance.[3]
c) Justify the importance of having an effective internal audit committee overseeing the internal audit function.[2]
d) Assess the appropriate responses to auditors’ recommendations.[3]
3. Internal control and management reporting
a) Justify the need for reports on internal controls to shareholders.[3]
b) Discuss the typical contents of a report on internal control and audit including environmental and sustainability audit .[2]
c) Assess how internal controls underpin and provide information for reliable financial and sustainable reporting.[3]
G Finance in planning and
decision-making
1. Finance transformation
a) Discuss how advances in technology is transforming the finance sector and the role and structure of the finance function within organisations.[2]
b) Evaluate alternative structures for the finance function using business partnering, outsourcing and shared or global business services.[3]
2. Financial analysis and decision- making techniques
a) Determine the overall investment requirements of the organisation.[2]
b) Assess the suitability, feasibility and acceptability of alternative sources of short and long term finance, including initial coin offerings (ICO), available to the organisation to support strategy and operations.[3]
c) Review and justify on decisions to select or abandon competing investments or projects applying suitable investment appraisal techniques.[3]
d) Justify strategic and operational decisions taking into account risk and uncertainty.[3]
e) Assess the broad financial reporting and tax implications of taking alternative strategic or investment decisions.[2]
f) Assess organisation performance and position using appropriate performance management techniques, key performance indicators (KPIs) and ratios.[3]
3. Cost and management accounting
a) Discuss from a strategic perspective, the continuing need for effective cost management and control systems within organisations.[3]
b) Evaluate methods of forecasting, budgeting, standard costing and variance analysis in support of strategic planning and decision making.[3]
c) Evaluate strategic options using marginal and relevant costing techniques.[3]
H Enabling success and change
management
1. Enabling success: organising
a) Advise on how an organisation structure and internal relationships can be re- organised to deliver a selected strategy.[3]
b) Advise on the implications of collaborative working and partnering, such as franchising, organisation process outsourcing, shared services and global business services.[3]
2. Enabling success: disruptive technology
a) Identify and assess the potential impact of disruptive technologies such as Fintech, including cryptocurrencies and blockchain.[3]
b) Assess the impact of new product, process,and service developments and innovation in supporting organisation strategy.[2]
SBL - Sept 21 - June 22 SG Final
Module: acca financial reporting (ACCA F7)
University: Association of Chartered Certified Accountants
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