(Abridged) We present results of XMM-Newton observations of the RS CVn binary $\sigma^2$ Coronae Borealis. The RGS and EPIC MOS2 spectra were simultaneously fitted with collisional ionization equilibrium plasma models to determine coronal abundances of various elements. Contrary to the solar first ionization potential (FIP) effect in which elements with a low FIP are overabundant in the corona compared to the solar photosphere, and contrary to the ``inverse'' FIP effect observed in several active RS CVn binaries, coronal abundance ratios in $\sigma^2$ CrB show a complex pattern as supported by similar findings in the Chandra HETGS analysis of $\sigma^2$ CrB with a different methodology (Osten et al. 2003). Low-FIP elements ($<10$ eV) have their abundance ratios relative to Fe consistent with the solar photospheric ratios, whereas high-FIP elements have their abundance ratios increase with increasing FIP. We find that the coronal Fe abundance is consistent with the stellar photospheric value, indicating that there is no metal depletion in $\sigma^2$ CrB. However, we obtain a higher Fe absolute abundance than in Osten et al. (2003). Except for Ar and S, our absolute abundances are about 1.5 times larger than those reported by Osten et al. (2003). However, a comparison of their model with our XMM-Newton data (and vice versa) shows that both models work adequately in general. We find, therefore, no preference for one methodology over the other to derive coronal abundances. Despite the systematic discrepancy in absolute abundances, our abundance ratios are very close to those obtained by Osten et al. (2003). Finally, we confirm the measurement of a low density in \ion{O}{7} ($< 4 \times 10^{10}$ cm$^{-3}$), but could not confirm the higher densities measured in spectral lines formed at higher temperatures.