Strategic Business Reporting · November 2025

In these questions the statement said goodwill was not impaired, or an impairment of ₦1.2 billion was given and charged to the group profit and shared with non-controlling interests under the full goodwill method. The detail section explains why that charge is permanent.

Both group questions start with the acquisition accounting in this topic: the cost, the fair value adjustments and goodwill with the NCI at fair value. The marking guides give separate marks for each goodwill working and each fair value adjustment. Worked examples 1 to 3 show the layouts.

The question uses full goodwill, a fair value adjustment on land and a patent, a further purchase of 10% from the NCI, a foreign subsidiary and a revaluation. The marking guide gives about 1 to 3 marks for each working (goodwill, retained earnings, NCI, fair values). Worked examples 2 to 4 show the layout for goodwill, NCI and fair value adjustments.

No past question in the two diets asks for the contents of IAS 1 on its own. The rules still decide how every statement in the compulsory Section A question is laid out: the classification of assets and liabilities, the line items, the allocation of profit between owners and non-controlling interests and the notes. The marking guides give separate marks for presentation of the statement.

The marking guides give separate marks for presenting the statement correctly. The same discipline of listing items in the right place and in the right order, applied to IFRS 18, is what the subtotals section trains.

The solution recognises the unrecorded patent at its fair value of ₦6 million, amortises it over four years (₦1.5 million a year) and includes it in the fair value adjustments. Worked example 2 uses the same figures.

The solution translates the statement of financial position at the closing rate, shows the pre- and post-acquisition split of equity, retranslates the goodwill and the land fair value adjustment, and takes the exchange gains to other comprehensive income. The marking guide gives 3 marks for the translation. Worked examples 1 to 3 show the layouts.

The marking guide gives 2 marks for the foreign property revaluation. The solution translates the cost at the rate on the purchase date, depreciates it over 20 years, translates the revalued amount at the closing rate and takes the ₦3.375 million surplus to other comprehensive income and property, plant and equipment. Worked example 4 follows the same steps.

The solution translates the cost at the spot rate on the purchase date, depreciates it, then translates the revalued amount at the closing rate and takes the surplus to other comprehensive income. Worked example 9 shows the layout.

The bonus is an other long-term employee benefit, with the service cost at the present value of the amount attributed to the year. Worked example 7 follows the solution.

The solution recalculates depreciation from the revised residual value over the remaining life and adjusts retained earnings and property, plant and equipment, because it is a change in estimate applied prospectively. Worked example 3 uses the same numbers.

The marking guide gives 1 mark for the residual value of plant. The solution recalculates depreciation from the revised residual value over the remaining life and adjusts retained earnings and property, plant and equipment, which is a change in accounting estimate applied prospectively. Scenario 1 in the worked examples follows the same method.

The marking guide gives 3 marks for carrying amount, 1 for recoverable amount, 2 for the adjustments and 6 for the effect on ROCE. The solution finds value in use of ₦9.452 million against carrying amount of ₦6 million, so there is no impairment and no effect on ROCE, and the directors’ proposal to write down to ₦5 million is wrong. Worked example 4 uses these numbers. The examiners reported that few candidates attempted the question and the performance was very poor.

These questions ask how an accounting treatment changes ratios and what a reader should investigate further. The worked example shows how to calculate the effect of a manipulation on ROCE, EPS and gearing and what to say about it.

Plant of ₦15 million bought on 1 January 2024 had a carrying amount of ₦12 million at 31 December 2024 and value in use of about ₦23.39 million, so there was no impairment to reverse and no government compensation to recognise. Note: the Pathfinder solution writes the total as ₦23.89 million in one line and ₦23.39 million in the next. The correct total of the discounted flows is ₦23.39 million, which is what we use. Practice question 13 covers the reversal rule.

Both were reports to a named user that used ratios and comment together. The same layout applies here: formula, number, reason and consequence. Worked examples 3 and 4 show the style.

Both questions ask for a report to a named user. ICAN\u2019s solutions calculate ratios such as ROCE, margins and working capital days for each period and then explain the movements. Worked examples 1 to 8 show the layouts.

The marking guide gives 3 marks for how segments are identified, 2 for reclassification, 2 for treating the overseas subsidiary as a separate segment, 2 for the effect on usefulness and 1 for the conclusion. The key point is that, with no change in internal organisation for seven years, segments cannot be reclassified. The identification and reclassification sections of this topic follow that structure.

The marking guide gives 3 marks for the three tests, 0.5 for identifying segments, 2 for the revenue test, 1.5 for the profit test, 1 for the assets test, 1 for the 75% requirement and 1 for other requirements and the conclusion. In that question the revenue test alone made Africa reportable even though it failed the profit and assets tests. Practise the worked example and question 13 to build the method. Examiners reported that few candidates attempted the question and that those who did lacked the knowledge to apply IFRS 8.

The marking guide gives marks for defining inventory as an asset, for the recognition criteria, for the measurement ideas behind the lower of cost and net realisable value rule, for which costs are included, and for consistency and comparability. The elements and characteristics sections of this topic supply the first, fourth and fifth points, and the next topic supplies recognition and measurement.

The marking guide gives 2 marks for the recognition criteria, 1 for the measurement concepts behind the lower of cost and net realisable value rule, and 1 for how costs are included. Use the recognition and measurement sections here, and link them to the asset definition in the previous topic.

The marking guide gives 3 marks for three ethical conflicts and 2 marks for two ethical principles. Name the threat, give the reason from the facts, and then name the principles and the response. Model answer 13 follows this.

The marking guide gives 1.5 marks for the interim reporting requirements and 8.5 for the held-for-sale accounting: carrying amount, classification, fair value less costs to sell, recognising changes and the gain on sale, plus a conclusion. Worked example 3 follows the solution step by step. Note: the Pathfinder solution is slightly different from ours on the final gain, which it gives as ₦30,000. Its own figures (₦8 million proceeds less ₦7.7 million carrying amount) give ₦300,000.

The marking guide gives 1.5 marks for identifying the interim reporting requirements and the remaining 8.5 marks for the held-for-sale accounting under IFRS 5, which a later topic covers. The opening points are the ones in this topic: the same policies as in the annual statements and measurement on a year-to-date basis.

The marking guide gives 1 mark each for an introduction, benefits, challenges, recommendations and a conclusion, in report format. The suggested solution names IFRS S1 and S2 and lists benefits such as transparency, access to capital, risk management and competitive advantage, and challenges such as cost, data collection, transition workload, skills gaps and scrutiny. The ISSB section and practice question 13 follow that pattern.

Part (a) asks for the implications of the exposure drafts for nine priority industries and the steps to take: 2.5 marks each. Part (c) asks you to discuss why the ISSB emerged. Examiners said that candidates lacked knowledge of ISSB activities. Learn the exposure drafts paragraph and the emergence paragraph.