Analysis and professional communication - Drafting clear exp...

Learning Outcomes

After reading this article, you will be able to structure written explanations and advice suitable for a range of stakeholders, aligning your communication with ACCA SBR exam expectations. You will know how to address technical issues in plain language, determine appropriate tone and style, and organise discursive responses to maximise clarity and professional impact.

ACCA Strategic Business Reporting (SBR) Syllabus

For ACCA Strategic Business Reporting (SBR), you are expected to demonstrate professional communication skills as required by the SBR exam, using analysis, clear explanations, and stakeholder-focused advice. This article covers:

• Drafting clear and structured explanations for technical and non-technical audiences
• Communicating written advice tailored to stakeholder needs
• Using appropriate tone, language, and formatting in exam scenarios
• Avoiding common written communication pitfalls
• Presenting analysis and recommendations with logical structure and professional credibility

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. Which approach best improves clarity when explaining a complex accounting matter to a non-expert stakeholder?
   1. Use only technical terms throughout
   2. Start with a plain-English summary, avoiding unnecessary jargon
   3. Include every technical detail even if not relevant
   4. Begin with a full list of applicable standards
2. In an ACCA SBR exam, what is the optimal order for a discursive answer requiring an explanation and advice?
   1. Conclusion first, then analysis
   2. Introduction, analysis, application, conclusion
   3. Multiple separate introductions
   4. Standalone bullet points only

3. True or False: Professional exam communication should always be highly detailed and use the most advanced accounting terminology, regardless of audience.

4. What is the main risk of failing to adjust your writing to the specified scenario audience in a SBR exam?
   1. Your answer will be too concise
   2. Loss of professional marks for failing to match stakeholder needs
   3. It will result in automatic full marks
   4. You should never mention stakeholder needs in your answer

Introduction

Effective professional communication is assessed throughout the ACCA Strategic Business Reporting (SBR) exam. You must present your technical knowledge in a clear, concise, and audience-appropriate manner when explaining accounting issues or providing advice. Whether addressing board members, investors, or regulators, your skill in structuring and tailoring explanations is as important as technical accuracy.

Understanding the expectations of different stakeholders, selecting suitable language, and organising your response logically will improve your performance. This article explains the principles of clear written explanation, methods for structuring advice, and common pitfalls in SBR written responses.

Key Term: Professional Communication
The practice of delivering information, analysis, or recommendations in a manner that is purposefully structured, clear, and appropriate for the recipient’s background and needs.

Key Term: Stakeholder
Any party with an interest in, or affected by, a company’s reporting, such as shareholders, directors, employees, regulators, investors, or customers.

Principles of Effective Written Communication

Successful SBR answers depend on purposeful communication. Your written responses should:

• Address the precise scenario and requirements directly
• Tailor both content and language to the intended recipient
• Prioritise relevance and clarity
• Use neutral, measured, and objective tone
• Present analysis logically, concluding with direct advice or recommendation

Different stakeholders have varying levels of accounting knowledge and information needs. It is essential to evaluate what is relevant to the audience and to avoid excessive jargon or detail.

Key Term: Clarity
The quality of being straightforward, unambiguous, and easy for the intended recipient to understand.

Key Term: Conciseness
The principle of communicating complete information using only as many words as are needed, removing unnecessary elaboration.

Structuring Written Explanations and Advice

A well-structured written response is easy to follow and professional. Standard components are:

1. Introduction: Briefly explain the issue or scenario requirement.
2. Analysis: Outline relevant principles, standards, or concepts—start in plain language, referring to technical detail only as appropriate.
3. Application: Relate the analysis to the given scenario, focusing on implications for the particular stakeholder.
4. Conclusion/Advice: Summarise with direct, actionable advice or a decision that answers the specific scenario requirement.

Organising your answer in this way ensures all marks are addressed and the explanation is logically developed.

Worked Example 1.1

Scenario: You are asked to explain to the board why the move to IFRS 16 has changed lease accounting on the statement of financial position.

Answer:
Start with a summary: “Under IFRS 16, nearly all leases must now be recognised as assets and liabilities, improving transparency.”
Continue in simple terms: “Previously, only finance leases appeared on the balance sheet; now, most leases do. This gives a clearer view of a company’s obligations.”
Application: “For the board, this means reported debt increases, possibly affecting key ratios and loan covenants.”
Conclusion: “You should monitor how the updated figures impact financing arrangements.”

Worked Example 1.2

Scenario: An investor requests your advice on the effect of a goodwill impairment for the year.

Answer:
Begin with the significance: “Impairing goodwill indicates that expected future benefits from an acquisition are now lower, so a loss is recorded.”
Simplify the accounting: “This means the carrying value of goodwill is written down, immediately reducing profit in this period.”
Apply to the stakeholder: “As an investor, note that recurring impairments could suggest deeper issues, possibly affecting future returns.”
Conclude: “It is important to investigate reasons behind the impairment.”

Matching Language and Tone to the Audience

Professional communication is measured and objective. Your responses should:

• Use plain English for non-specialists
• Avoid emotive or over-assertive statements
• Clearly state assumptions and limitations, where necessary
• Reference standards briefly, focusing on practical relevance
• Retain a respectful and professional style throughout

If asked to address directors or non-specialists, avoid technical jargon unless you define it.

Revision Tip

Before finalising an answer, consider: “Would the recipient, given their background and role, understand and act on this explanation?”

Exam Warning

Failure to adjust your explanation style, structure, or depth to match the specified audience (e.g., directors, investors) will reduce your professional communication marks. Pay careful attention to scenario instructions.

Common SBR Communication Pitfalls

Be aware of the following errors, which reduce marks:

• Simply repeating scenario facts without meaningful analysis
• Listing accounting rules without practical explanation
• Ignoring the question requirement, especially by omitting advice or actionable conclusion
• Using bullet points throughout, unless explicitly allowed by the exam requirement
• Copying standard wording rather than demonstrating understanding
• Failing to summarise or address the reader’s decision-making needs

Summary

Professional communication in ACCA SBR is not just about technical knowledge. Clear, relevant, and well-structured written responses, tailored to the stakeholder, are required. Organise answers logically, focus on the needs of the recipient, express analysis clearly, and always conclude with a succinct recommendation or advice.

Key Point Checklist

This article has covered the following key knowledge points:

• Identify effective written communication elements for SBR answers
• Structure explanations and advice with introduction, analysis, application, and conclusion
• Adjust content and language to stakeholder needs and scenario requirements
• Maintain objective tone and professional style throughout
• Recognise and correct common communication errors in exam responses

Key Terms and Concepts

• Professional Communication
• Stakeholder
• Clarity
• Conciseness