Sbr (int/UK) Strategic Business Reporting

(1 mark) 

 

(Part b (ii): 8 marks max) 

 

Marking scheme 

   Marks 

(a) 

(i) 

Acquisition of Lose 

11 

 

(ii) 

Addition share purchase 

5 

(b) 

(i) 

Disposal group held for sale 

6 

 (ii) 

Accounting 

treatment of disposal group 

8 

 

 

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Total  

30 

 

 

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2 LIMINAL 

 

 

Key answer tips 

Discuss each of the accounting issues in turn. Use subheadings to structure your answer. 

Remember to discuss key principles from the relevant accounting standard before applying 

these to the scenario. Definitions do not have to be word-perfect!  

Make sure that you discuss the specific ethical issues raised in the question. Generic 

discussions of ethics will not score well, and are unlikely to receive the two professional 

marks available. 

(a) Contract 

The issue is with step five of the revenue recognition process. IFRS 15 Revenue from 

Contracts with Customers  states  that  revenue  should  be  recognised  when  or  as  a 

performance obligation is satisfied. 

(1 mark) 

Liminal is incorrect to recognise the full transaction price as revenue because the 

performance obligation - to deliver a report that details strategies to increase 

employee motivation, efficiency and productivity - has not been satisfied. 

(1 mark) 

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