Why this matters now

Companies House is rolling out identity verification for directors and people with significant control. The aim is to improve trust in filings and make abuse harder. For SBR ACCA, this is a live governance and ethics topic. It shapes how you explain controls, board responsibilities, and disclosure quality. It also gives you a realistic setting for professional marks. If you want a calm primer on exam craft before you dive in, start with the ACCA exam success guide for a simple plan you can keep each week.

This guide shows how identity verification connects to financial reporting. You will see practical frames for answers, short examples you can reuse, and drills to help you write faster. The tone is plain and direct. The goal is to help you pass SBR with clear, applied writing.

The core idea – tighter identity checks support trusted reporting

Identity verification links a real person to a filing role. When a director or PSC is verified, the company’s filings carry more weight. That supports market integrity. It reduces the risk of fake appointments and false statements. It also pushes boards to tighten documentation and oversight.

For SBR, the exam focus is not the legal detail. It is the reporting consequence. You may need to advise an audit committee on steps that protect the quality of information used by investors. You may also need to show how governance reforms affect narrative disclosures and the control environment.

What examiners want to see

Examiners reward answers that are short, structured, and applied. On this topic, markers will look for four things

  • A clear link from identity verification to governance and control.
  • Practical steps the board should take this year.
  • A short, investor focused disclosure that is fair, clear, and not misleading.
  • Evidence of connectivity between narrative claims and the numbers in the financial statements.

Write to time. Use simple sentences. Avoid empty phrases. That style supports a high reading score and keeps you calm.

A simple frame you can reuse in most questions

Use the issue – rule – apply – conclude structure. Keep each part tight.

  • Issue – the board must ensure trusted reporting as identity verification is rolled out.
  • Rule – identity checks strengthen accountability and aim to reduce false filings. Good governance means clear roles, sound controls, and transparent reporting.
  • Apply – map who files what, tighten authorisation, keep evidence of checks, and align narrative disclosures to the financial statements.
  • Conclude – commit to decision useful reporting with clear oversight, and set dates for review.

This frame earns professional marks because it is logical and practical.

Where identity verification meets the SBR syllabus

Identity checks touch several SBR themes. Do not list every standard. Pick the link that helps the reader.

  • Presentation and disclosure
    Stronger verification supports claims that the report is reliable. If the board says data is robust, you should show the control that makes it so.
  • Ethics
    Directors sign off on content. Identity checks sharpen accountability. This should reduce boilerplate language and push more precise statements.
  • Events after the reporting period
    If a director changes near year end, ensure the report shows the correct roles and approvals.
  • Provisions and contingencies
    Tighter identity controls may reveal legacy issues in records. If investigations start, disclose where material.
  • Financial instruments and hedge accounting
    If a company reports complex positions, expect stronger challenge on who authorised them and how the board monitors risk. Your narrative should note oversight and reporting lines.

You do not need a long tour of the syllabus. Use one or two links that serve the case.

Example 1 – short board paper paragraph

Scenario
A listed group is preparing its annual report. Identity verification for directors is underway. The audit committee asks how to reflect this in the governance section.

Answer – eight lines

The identity verification process strengthens accountability for filings and improves trust in board approvals. We will map each filing to a responsible owner, update authorisation matrices, and store evidence of checks in a secure register. We will tighten delegated authority for narrative sections and confirm that the CFO signs the fair, clear, and not misleading assertion after control review. Internal audit will sample filings against the register in Q2. The governance section will explain these steps in plain English and link them to the board’s oversight of reporting quality. We will review the register quarterly and report progress to the audit committee.

This is short, applied, and complete.

Example 2 – bridging governance to financial statements

Scenario
The company plans to state that sustainability metrics are reliable and consistent with the financial statements. The board has new identity checks for data owners.

Answer – six lines

Identity verification ensures named data owners are real and accountable. We have assigned each metric to a verified owner and documented controls over collection and review. The finance team reconciles metrics that appear in both the sustainability report and the financial statements. The governance section will describe this linkage and the oversight by the audit committee. This supports our claim that the narrative is consistent with the numbers. We will avoid vague statements and include specific controls.

This earns professional marks without long theory.

Practical steps the board should take this year

You can list actions in order of impact. This works in exam and in practice.

  1. Map roles
    List directors, PSCs, and senior filers. Confirm verification status and next steps.
  2. Assign ownership
    For each filing and narrative section, name a responsible owner and a reviewer. Record them in a register.
  3. Tighten authorisation
    Update delegated authority. Require a second check for sensitive areas like alternative performance measures, going concern statements, and risk disclosures.
  4. Evidence controls
    Keep copies of identity checks, approval emails, and review notes. Store them in a single place with restricted access.
  5. Align narrative and numbers
    Reconcile key claims in the front half to the financial statements. If a claim cannot be reconciled, rewrite it or remove it.
  6. Plan assurance
    Agree a light internal audit review of the register and a sample of filings. Set a date and scope.
  7. Communicate
    Tell staff why the change matters. Clear tone from the top helps compliance.

This list is exam friendly. It reads as advice to a board, not as theory.

A model disclosure you can adapt

Governance and controls – sample paragraph

During the year we strengthened controls over corporate filings and narrative reporting. Directors and people with significant control completed identity verification. We mapped ownership for each filing, set clear authorisation steps, and created a secure register of approvals. We aligned front half disclosures to the financial statements and asked internal audit to sample filings for evidence of review. The audit committee oversaw this work and will review the register quarterly.

You can fit this into a current issues answer and move on.

Common pitfalls in candidate answers

  • Listing laws without relevance
    You do not earn marks by quoting legislation. Explain the reporting impact instead.
  • Boilerplate
    Avoid empty statements like “we have strong governance.” Show one control that proves it.
  • No link to investors
    Always tie actions to decision usefulness for primary users.
  • Over explaining process
    Keep steps short and specific. Finish the paper.
  • Forgetting time
    Identity checks roll out over time. If the case is mid year, say what has been done and what remains.

Avoid these traps and your answer will feel confident and focused.

How to practise this topic in 30 minutes

Use three short drills. Keep each to the timer.

Drill 1 – 10 minutes
Write a six line paragraph for the governance section that explains identity verification and the single change it triggered in your controls.

Drill 2 – 10 minutes
Draft an audit committee action list with three tasks – ownership mapping, delegated authority update, and internal audit sampling. Use one sentence per task.

Drill 3 – 10 minutes
Write a bridge sentence that links a front half claim to a number in the financial statements. Example – claims about leverage, liquidity, or hedge designations.

These drills build speed and clarity.

Phrase bank you can reuse

  • “Identity verification links responsible individuals to key filings and approvals.”
  • “We mapped ownership and created a register of authorisations with evidence.”
  • “Narrative statements are aligned to the financial statements and reconciled where relevant.”
  • “The audit committee oversees the register and receives quarterly updates.”
  • “Disclosures are fair, clear, and not misleading – we avoid vague claims.”

Keep phrases short. Use them to open paragraphs and save time.

Bringing ethics into the answer without overdoing it

Ethics in SBR rewards judgement, not slogans. Two short moves are enough.

  • Tone from the top – the board sets expectations that disclosures should help investors, not sell a story.
  • Accountability – identity checks support personal responsibility for sections of the report. This reduces incentives to overstate.

If the case mentions pressure or targets, add a line on resisting bias and documenting review. Then move on.

A mini case to test your approach

Case
The group is preparing to issue year end results. Two new directors joined late in the year. Identity checks are in progress. The CEO wants to state that the group has “best in class governance.”

Required
Advise the board on wording and controls for the report.

Good answer outline

  • Confirm the status of identity checks for directors and PSCs.
  • Map ownership for key filings and narrative sections.
  • Replace the “best in class” claim with precise language – describe the register, the delegated authority, and the internal audit sample.
  • Add a line on alignment of narrative and numbers.
  • Set a review date and a named owner for follow up.

This approach earns marks for clarity and control.

Linking to SBR exam craft beyond governance

Use identity verification to show integrated thinking in short lines.

  • Going concern – state who signs and what evidence they saw.
  • Alternative performance measures – explain who approves and how you reconcile to IFRS subtotals.
  • Risk management – show the link between the risk register and the reporting cycle, with named owners.

Markers will notice tidy links like these.

Two week micro plan to master this topic

Week 1

  • Day 1 – Write a one page note on identity verification and governance.
  • Day 2 – Practise Drill 1 and Drill 2.
  • Day 3 – Draft the model disclosure and read it out loud – cut filler.
  • Day 4 – Do a 20 minute mock sub question on governance and controls.
  • Day 5 – Rewrite your weakest paragraph to eight lines.
  • Day 6 – Rest or light review.
  • Day 7 – Sit a 30 minute mixed set that includes a governance element.

Week 2

  • Day 1 – Build a phrase bank of five lines and use each once.
  • Day 2 – Practise a scenario that links governance to a hedge accounting disclosure – two tight paragraphs.
  • Day 3 – Mark your work like a marker – is it fair, clear, and not misleading.
  • Day 4 – Rewrite one answer using the issue – rule – apply – conclude frame.
  • Day 5 – Do Drill 3 and add a sentence on investor relevance.
  • Day 6 – Short mock to time – finish every part.
  • Day 7 – Set three goals for next week.

This plan keeps sessions short and builds habits that stick.

Where tuition fits if you want structure

Some candidates prefer a timetable with set submissions and marking. If you want steady accountability, browse the ACCA SBR course options and add one marked script each week. Structured practice helps you finish the paper and reduces stress.

Final pointers for clear, confident answers

  • Keep it practical – show controls, owners, and evidence.
  • Link narrative claims to the financial statements.
  • Write short, direct sentences.
  • Use the issue – rule – apply – conclude frame.
  • Finish the paper.

Identity verification raises the bar for governance disclosures. It supports trust in what companies publish. In SBR, it gives you a timely setting to show judgement and clarity. If you keep your writing simple and applied, you will collect marks and build towards exam success with control and calm.