ACCA SP Study Guide 2026
Everything you need to pass the ACCA SP exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 ACCA SP Exam Format at a Glance
📚 ACCA SP Topics to Study (27)
✍️ Sample ACCA SP Questions & Answers
1. A multinational company uses residual income (RI) to evaluate overseas divisions. Division X operates in a high-risk emerging market. To fairly evaluate Division X, the company should:
When using RI across divisions with different risk profiles, the cost of capital charge should reflect each division's specific risk level. A division in a high-risk emerging market faces greater political risk, currency risk, and economic volatility, justifying a higher required return. Using a uniform rate would unfairly disadvantage low-risk divisions and subsidise high-risk ones, leading to misallocation of capital.
2. When applying the TARA framework to risk management, which response involves accepting the risk but implementing controls to reduce its impact or likelihood?
The TARA framework offers four risk responses: Transfer (shift risk to a third party, e.g., insurance), Avoid (eliminate the activity causing risk), Reduce (implement controls to mitigate likelihood or impact while continuing the activity), and Accept (tolerate the risk without action). Reducing risk means keeping the activity but putting controls in place.
3. According to the UK Corporate Governance Code, what approach must listed companies take if they do not comply with a specific provision?
The UK Corporate Governance Code operates on a 'comply or explain' basis, requiring companies to either comply with provisions or publicly explain why they have not.
4. Under IFRS 9 Financial Instruments, which of the following financial assets must ALWAYS be measured at fair value through profit or loss (FVTPL)?
Under IFRS 9, equity investments are measured at FVTPL by default. An entity may make an irrevocable election at initial recognition to present fair value changes in OCI (with no recycling), but if this election is not made, FVTPL is mandatory. Debt instruments may qualify for amortised cost or FVOCI depending on the business model and SPPI test.
5. Organisational 'culture' (Johnson & Scholes) is best represented by:
Johnson & Scholes' cultural web depicts organisational culture through six interrelated elements (stories, rituals, symbols, power structures, control systems, organisational structures) surrounding the paradigm.
6. Which of the following describes 'emergent strategy' (Mintzberg)?
Mintzberg distinguished intended strategy (planned) from emergent strategy, which arises from ad-hoc responses to events. Realised strategy is a combination of deliberate and emergent elements.