PQ magazine, May 2016

PQ magazine www.pqmagazine.co.uk / www.pqjobs.co.uk

May 2016

Money laundering: do you understand your responsibilities under the MLR?

Expert

advice on passing the CIMA

CASE

ACCA TO PHASE IN NEW CBE EXAMS

ACCA students should now have discovered the ‘approved’ learning partners for the first phase of the introduction of CBE exams for papers F5 to F9, due to begin this September.

Only certain learning providers will be offering tuition for the CBE exams. So while students at some colleges in London (BPP and Kaplan) can opt to study for CBEs, this option will not be available elsewhere, in Birmingham for example.

It appears the ACCA has decided to use both September and December for a phased approach to the introduction of CBEs, before opening them up more universally in March 2017. Students will, of course, still be able to sit the paper exams as normal during this time.

During their initial introduction the ACCA has said that the CBE questions will be exactly the same as the paper ones to ensure ‘equivalency’, but they will use the CBE technology.

Interestingly, the ACCA has revealed that as the CBE format introduces many time-saving efficiencies, compared with the paper-based exams, so students will have three hours to complete session CBEs. For paper-based exams this is three hours 15 minutes.

Hatfield: CBE roll out has to be right The ACCA’s move to CBEs may have been tempered by the problems of taking a ‘big bang’ approach after the experiences of both the AAT and CIMA. Alan Hatfield, ACCA’s Executive Director – Strategy & Development, stressed that the rollout of the CBEs has to be right for students, tuition providers and employers.

ACCA is still planning to release its CBE ‘practice tools’ for students in early May. PQs will be encouraged to use the blank spreadsheet and word processing sheets to get them familiar with the new set-up.

In the first phase, CBE exams in September 2016 will be offered in only certain cities in China, the Czech Republic, Hungary, India, Ireland, Slovakia, Sri Lanka and the UK. These will be extended in December to include 10 cities in China, four in Ireland and 10 locations in the UK. ACCA also stressed that it will have to introduce additional features to aid exam security. This will mean students sitting the same subject may receive different questions.

ACCA said it will apply industry standard psychometric techniques to guarantee all its exams are equivalent and fair. That means introducing seeded content in 2017. These are questions that do not contribute towards a student’s mark, but are used to ensure that results are fair and reliable. When the ACCA introduces seeded content students will be given more time to complete the exams, which will be extended to three hours 20 minutes.

UK accountancy leads way on access

The UK accountancy now stands out globally because of its open access, according to Stuart Pedley-Smith, co-author of the newly published ‘Global Trends in Professional Accountancy Education’.

Pedley-Smith, Kaplan’s head of learning, said that the rise of apprenticeships and drive by many companies (particularly the Big 4) to improve their diversity has seen more and more PQs starting their

accountancy journey at school leaver level. This is in stark contrast to the US, Canada, China, India and Australasia, where generally a degree is needed to start studying accountancy.

The report also looks at the changing methods of assessment and how this is impacting on the way accountancy is taught. Pedley-Smith ventures that new flexibile ondemand OT assesement could also

have a big impact on how quickly students get through the exams.

Having a choice can lead to procrastination, because students can keep delaying the exam until they are ready – and often they never feel ready. The rise of the OT also means that every item has an equal chance of coming up so tutors have to teach more broadly. With a lack of real exam papers learning will move away from the exam-driven

process. The key to success is mastering the learning outcomes.

His research found the number of papers sat by students varies widely.

In India, ICAI students have 19 papers to pass. ICAEW PQs have 15 exams, ACCA 14 and CIMA 12.

Meanwhile, AICPA and CA Australia studiers have just four to pass.

You can read the full report at http://www.kaplan.co.uk/insights/ global-accountancy-report

“I chose Kaplan because they have good pass rates and the best tutors.”

Srijana Gautam ACCA Prizewinner P1, June 2015

Start planning the next steps in your ACCA studies.

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comment PQ

CONTENTS

News 08CIMA case Our experts tell you how to pass the case study 10NHS accountants Health service finance professionals don’t feel loved, says survey 12ACCA P5 exam Students’ fury over paper at the March sitting 13Ramadan dates Religious fast coincides with busy exam period Features, etc 06Mind your Ps&Qs The ‘old boys’ network’ is alive and kicking; real-life drama; and a big thank-you to the ACCA! 14Generation game Mum and daughter are in the same AAT class – so how do they get on?

16Learning tips Identifying how you learn can help you develop your learning skills

18Let’s get technical Basis

periods is not the most exciting topic, but this you must know

May 2016 28Exam planning Check out our

checklist on how to best prepare for that upcoming exam 30Careers #1 Take control of your career in six simple steps 31Careers #2 Life at the Training Place; our Book Club review; plus the best of social media 34Fun time Meet Billy the circus accountant; lose weight and earn more; a born survivor; and our great giveaways The columnists Robert Bruce Why others should follow in Canada’s footsteps 8 Prem Sikka Scrap the FRC – it is not fit for purpose 10 Carl Lygo Cambodian education is slowly turning the corner 12 Subscribe to PQ magazine It’s FREE – see page 29 or go to www.pqmagazine.co.uk ABC July 2014 – June 2015

20CIMA roundtable Our panel

32,233

of experts offer words of wisdom on passing the case study exam

24A star is born Meet Manuy

Figueroa, recently crowned our PQ of the Year 2016; plus, trouble ahead for the ‘sugar tax’

25Money laundering regs All

Publisher’s statement: We send a digital issue of the magazine to an additional 8,419 requested readers

26Internal audit How to ensure

Free to all accountancy students Annual subscription: £35 (£50 overseas)

accountants have a duty under these regs. Do you know yours? good governance is maintained

Tess Wheatley Kaplan CIMA Distance Learning student

Perils of social media Social media is evil, according to John Lydon (aka Mr Johnny Rotten). To quote him: “It is like your depriving yourself of your own existence.” Personally, I can’t remember what we all did before mobile phones, the internet and social media. We probably talked to each other more and actually met people face-to-face! So I wasn’t surprised to hear that perhaps seven million people have been left depressed after using social media – that’s 20% of everyone who uses networks such as Twitter and Facebook. It’s all about peer envy and the pressure of keeping up appearances, apparently. The problem is people are now living their lives the whole time in the public domain, their own Truman Show. It means you have to create and look after ‘you the brand’. As young professionals you really do need to manage what gets out there. Employers and future employers will be looking. Many people I know just can’t relax if someone in their company takes their phone out. I have seen people demand someone else’s phone so they can delete any pictures taken ‘for a laugh’. And I don’t blame them.

But it can be a force for good, too. Look at the AAT Students Independent Facebook Group. Over 4,500 people have signed up to this great group (it won a PQ award). It is an independent, self-help group that allows AAT PQs to ask even the most stupid question in a safe and helpful environment. The help will come from someone you will probably never meet. Like all things the key here is moderation. You also have to be picky and not allow yourself to get sucked into the online neverworld.

Finally, I was truly saddened to hear about the sudden death of the lovely Colin Davis. He had worked for the ACCA since 2000 and was the head of international comms. I know how much the Colin team there will miss him, and so will we at PQ Davis magazine. A true gentleman, who was also a true professional. He was a rare one.

Graham Hambly, PQ magazine editor – graham@pqaccountant.com

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PQ have your say

email graham@pqaccountant.com Old boys, old news...

accountancy is still too much of a male-dominated profession. Too many (nearly all male) accountants still seem too quick to hide behind the numbers and accountancyspeak and lack real emotional intelligence. But this is where the future lies if and when the robots take over!

If women want to make it to the top they still have to be too much like them (the old boys). But I don’t feel I should have to work eight to eight to prove I am good at my work. Increasingly, more of my younger male colleagues think the same.

I am really concerned that the

It was no surprise to me to read that the ‘old boys club’ still exists – I am working for them (PQ magazine, April 2016). My bosses seem to feel because there are women around they have done their job when it comes to equality.

Oh, and we need to be grateful they have opened up the door, too.

The only surprise I have about AAT’s study is that only two-thirds of women at the top had experienced discrimination at work because of their gender. Despite all the progress we have made I feel

survey discovered that the gender pay gap could actually be widening.

How can this be in 2016? Surely if firms advertise for the role the salary is the same for a man or a woman – how can a 23% gap exists at the senior levels?

I think women are just as ambitious as men, but are not prepared to compromise as much to get to the top. Perhaps there should be more women bosses!

Name and address supplied The editor says: We’d like to hear from other readers about any discrimination they may have suffered in the workplace. Emails to the usual address please.

The writer of the star letter each month wins a fantastic PQ memory stick!

Thank you, ACCA

Can I firstly thank ACCA executive director Alan Hatfield for trying to explain why we can’t have an exam date (PQ magazine, April ’16).

I also have to congratulate the marking team for reducing the time it takes to do their job, too. It is no mean feat to reduce the time we get results and six weeks is great.

However, the cynic in me would

NEW LSBF

English is taught. But what will it use in Bristol or Bradford for that matter? Am I right in assuming that it will simply license universities to undertake the inviglation of exams?

Will the private sector colleges also be allowed to offer themselves as centres? It would be quite nice to sit my exams in a place I am familiar with, that might take some of the stress away.

Name and address supplied

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Real-life information

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• Filter courses by date, subject & study mode • Select papers that suit your schedule • Buy your papers online straight away say that they had to do this or students would be in danger of missing the opportunity to re-sit the exams at the next sitting.

I am, however, still confused about when exactly we will get our exam results date back. With the introduction of CBEs in September it may be some time before we move away from ‘week commencing’, maybe years even.

Perhaps the ACCA should set itself a target date and then we can hold them properly to account.

Name and address supplied The editor says: Interesting points raised here – over to you, ACCA.

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How will it work?

I read in PQ magazine recently (March 2016) that the ACCA plans to use the British Council as exam centres. How will this all work in the UK? I have been on the British Council’s website and just can’t understand how it can suddenly offer secure venues with the IT support needed. I can see how it all works overseas; in Egypt, for example, the Council has five teaching centres where learning

ACCA’s Helen Brand signing the British Council deal

Finally, we have the answer – well done PQ! I too like you have been reading the CIMA noticeboard discussions about using real-life business examples in case study answers (PQ magazine, April ’16).

But it is really easy to get sidetracked, spending too much time online looking at companies that are almost like the case study being put forward. Once you have read the pre-seen you naturally want to find out more and it is hard not to do it! Your time is much better spent doing practice papers and getting your exam technique right – take the word of someone who took too many attempts at one case study level.

Name and address supplied

DUE TO LACK OF SPACE OUR SOCIAL MEDIA UPDATES HAVE BEEN MOVED TO PAGE 31

PQ Magazine Fourth floor, Central House, 142 Central Street, London EC1V 8AR | Phone: 020 7216 6444 | Email: graham@pqaccountant.com Website: www.pqmagazine.co.uk | Editor/publisher: Graham Hambly graham@pqaccountant.com | Advertising manager: Polly Thrasivoulou polly@pqaccountant.com Associate editor: Adam Riches | Art editor: Tim Parker | Subscriptions: dom@pqaccountant.com | Contributors: Robert Bruce, Prem Sikka, Carl Lygo, Tony Kelly, Phil Gammon, Jo Daley | Origination and print services by Classified Central Media If you have any problems with delivery, or if you want to change your delivery address, please email dom@pqaccountant.com

Published by PQ Publishing © PQ Publishing 2016

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PQ news

ROBERT BRUCE Why others should follow in Canada’s footsteps I do like Canadians and Canada, although the country has a reputation for being pleasant but unexciting.

Personally, I think pleasant is good.

And thoughtful, and enterprising. The Canadian removal company is now emblazoning its trucks with the message: “F*** Trump. Move to Canada”, is a good example.

I was pleased to see similar sense, though expressed in quieter language, from Linda Mezon, the Chair of the Accounting Standards Board in Canada. She had been looking at the speeches from the IASB about how many jurisdictions now required IFRS. Her point was that this looked good, but the other side of the story was that 50% of the world’s capital markets either ‘have not adopted IFRS, or do not require an unreserved statement of compliance with IFRS and may not imminently fully adopt’.

Her answer was to suggest that the IASB stops measuring success by number of jurisdictions but instead by encouraging the comparability of standards globally. This would narrow differences, reduce barriers and allow adoption of IFRS long-term.

It is what they did in Canada en route to IFRS becoming the norm.

They worked towards comparability via Canadian GAAP, US GAAP and IFRS. A no nonsense, common sense, and methodical pursuit of an answer.

And having adopted IFRS investors can easily compare Canadian companies to those in other countries, and as a result the cost of capital is lower. How sensible. n Robert Bruce is an award-winning writer on accountancy for The Times

CIMA case study exam is not a three-hour test If you want to ensure success at the CIMA case study you must stop thinking of the exam as a three-hour test, says Kaplan’s Becky Becky Evans.

Evans As you can’t jump forward and backwards between tasks you need to plan for each individual task you are tackling (they are between 30 and 60 minutes). It is also essential you answer all the sub-requirements, as missing just one competency could

mean a fail.

It may seem obvious, but you also have to know the pre-seen inside out, she explains. You won’t, however, have time to reread it in the exam room, so you must know who the people are and what their roles are. Evans said that PQs are meant to be working for this organisation, so refer to people by name, not as ‘the HR manager’, for example.

CIMA PQs have to be proactive in ensuring they have no

knowledge gaps from their exemptions, if they had them.

Evans felt some students would benefit from sitting an underpinning course. She said you should ask your tutor for advice here, that is what they are there for!

PQ brought Evans together with four other experts to see what they thought were the challenges of the CIMA’s case study test. Along with CIMA’s Peter Stewart, our experts take an in-depth look at how you can ensure your success.

• See pages 20-22 for the best way to approach the case study.

Get on a course!

Body beautiful CIPFA’s student network team recently became cover stars of their body’s e-magazine, Spreadsheet.

The reason? They were the winners of the PQ magazine Student Body of the Year award. Kathryn Long, Vice President (second from left), said: “The PQ awards was a fantastic evening so a big thank you to all the team at PQ magazine. We will see you again next year!”

ACCA is on the move again. This time it is moving its Scottish-based staff into new office space in central Glasgow.

The ACCA moved its London HQ at the beginning of this year. It is now consolidating its staff north of the border.

Currently, some 600 staff work at its Glasgow offices at 2 Central Quay and 138 Hyde Park Street. In late autumn they will all be moving

into three floors at 110 Queen Street.

CEO Helen Brand said that ACCA’s operations have a proud history in Scotland, going back to the 1970s. Since then it has grown its workforce to create an operational centre that covers exam delivery, HR, IT, finance and ACCA’s 24/7 and 365 global customer service centre (ACCA Connect).

ACCA says optional pass rates will improve only when students sign up to a proper course The ACCA reminded students recently that signing up to a bona fide course is still the best way to pass those ‘difficult’ optional papers.

Apparently, too many students are tackling the final level exams on their own, without any real guidance.

A senior ACCA figure told PQ magazine that these were ‘master level’ exams, so it is vital students go to a good learning provider to get proper support and guidance.

These providers have the expertise to get you though the exams.

The ACCA also reminded students that those who sign up with a provider have a much better chance of passing.

0LH. The AfID won’t be able to collect any donations.

through a CIPFA project in the United Arab Emirates.

programme to be able to sit exams for the ACCA qualification.

Goodbye Adrian, hello Giles CIPFA has a new Director of Learning Delivery and Partnerships – Giles Orr (pictured). After nearly 10 years at CIPFA as education director Adrian Pulham has left ‘to pursue new interests’. He will, however, continue to sit on the IFAC international accounting education standards board and see

ACCA first in Colombia ACCA has accredited Universidad EAN in Bogota, Colombia, with its Future Approved Learning partner status. The ACCA signed an MOU with the university (pictured) in August 2015, enabling students who enroll on EAN’s new virtual public accountancy undergraduate

MA standard launched BSI, the British Standards Institution, has published PAS 1919 – the world’s first management accounting standard.

Sponsored by CIMA, it is designed as a best-practice guide to management accounting, defining what ‘good’ looks like. The new standard provides a framework to support decision-making and supports improved performance.

ACCA on move again

In brief Donate your old textbooks The charity Accounting for International Development (AfID) is looking for your old accountancy textbooks. In particular, it wants business accounting books to send to accountancy PQs in Sierra Leone. Think ‘Business Accounting’ by Wood and Sangster, or similar. Contact Leah McLaren on info@afid.org.uk or send your donations to AfID, Britannia House, 11 Glenthorne Road, Hammersmith, London, W6 8

PQ Magazine May 2016

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PQ news

PREM SIKKA Slow and ineffective FRC must be replaced Are accounting regulators antiquated historians, or dedicated professionals who speedily investigate failures and take remedial action? The practices of the Financial Reporting Council (FRC) suggest it is the former.

In February, the FRC concluded its investigation of audit failures at Presbyterian Mutual Society, which began in August 2009. The probe related to 2000–2008. In October 2006, an investigation was launched into corporate governance and accounting issues at iSoft. The matters related to 2003-2005, and the final report was published in 2015.

The 2007-2008 banking crash laid bare the pretence of effective internal controls and sceptical audits as banks admitted fraud. Despite critical reports from parliamentary committees the FRC did not intervene. HBOS was a major casualty of the crash and received £37 billion of government cash. In November 2015, a report published by the Bank of England was highly critical of HBOS’s business model and accounts. It called on the FRC to investigate, but still no action.

In January, under pressure from the Treasury Committee, the FRC announced that it would make ‘preliminary enquiries’ into HBOS’s 2007 financial statements.

The FRC’s inertia and poor enforcement sends a negative message. The eventual reports are not timely and hardly enable effective remedial action. The FRC is too close to the very interests that it should be regulating and needs to be replaced. n Prem Sikka is professor of accountancy at the University of Essex

DO YOU FEEL VALUED?

Just 5% of all NHS finance professionals feel valued by patients and the public at large, says a new briefing survey from the HFMA. Luckily, faint praise is not what motivates accountants working in the NHS. The latest ‘NHS Finance Function in 2015: England’ survey found for well over two-thirds (71%) of respondents it is public sector values that keep them going.

Improving patient care is a motivation for 60% of those surveyed.

Finance professionals working in the NHS also feel their departments provide real value for money – well 89% think so. Despite the challenges of grappling with tight financial statements and trying to

Worryingly, the survey revealed that there is still a large imbalance between the number of women working in finance roles and those in the top jobs. Some 62% of finance staff are female, but only 26% of FDs are women.

Follow the money PER CHANGES The latest Scandi-TV hit, Follow the Money (BBC4), proves that accountancy can feature in a show and still be entertaining!

The story is all about Evergreen, a wind Shady: Ulrik, left, part of power company trying the Evergreen float team to make the world a better and cleaner place, or is it! facilitate money laundering and There are the usual problems. blackmail.

We have a sexy lawyer, but more As Evergreen try to get the markedly there doesn’t appear to investment to float we even meet a be an honest accountant to be UK company with a lot of posh found in the whole of Denmark. boys called Waterson and Price.

Evergreen’s CFO (Ulrik Skov) has Are you thinking PwC here? a shady past and there is even a • Don’t forget there are more fun vaping accountant (Eric) who helps stories on page 34.

Five ACCA five-year scholarships up for grabs

Five lucky ACCA students have the chance to win a five-year scholarship.

To be eligible for the Simpson Scholarship applicants need to meet a qualification criteria and submit a 1,000 words essay. You will need to be a registered student with no outstanding fees and achieved 80% or more on your F1-F3 exams. The closing date for entry is Friday 29 April.

EY wants 200 apprenticeships EY has announced that it will take on 200 apprentices across the UK from September 2016. Successful applicants will work towards a globally recognised accountancy qualification on a structured course that will offer on-the-job coaching and the opportunity to work with clients from day one.

The full-time roles will have a starting salary of up to £21,500 and the career path and experience will be the same as for graduates.

10

add value to patient care, some two-thirds of accountants say they would like to spend the rest of their careers working for it. Some 16,211 finance professionals are currently working in the NHS, that’s a 3% rise on 2013 figures.

Deloitte’s snapshot of its staff In an effort to dismiss some of the myths about social mobile Deloitte's has become one of the largest UK employers to publish data on the socio-economic and educational background of its partners and staff. A sample of 1,000 staff shows 43% of Deloitte employees attended a non-selective state school, 16% an academically selective grammar school and 20% an independent school. The data also revealed 51% were the first in their family to go to university, while 9% received free school meals.

KPMG is mobility champion KPMG has been named by BIS as a Social Mobility Business Compact champion,

FROM ACCA

ACCA is pushing its new-look PER policy with the headline ‘We’ve listened to your feedback!’ What hasn’t changed is the need to gain 36 months’ experience in a relevant accounting or finance role. All your experience has now been transferred to the new set-up, as long as it is allocated to an employer.

The new PER policy requires you to achieve five elements, supported by one statement of 200-300 words for each performance objective. The essentials performance objectives have been reduced from nine to five.

Four technical objectives also have to be achieved, from a list of 15.

There is a more user-friendly online recording tool ‘available’ as part of the update, says ACCA, and your achievements must still be confirmed by a qualified accountant acting as a practical experience supervisor (workplace mentor).

recognising the firm’s work to improve social mobility in the business community. It is one of just 11 organisations in the UK to have been awarded this new status. KPMG was specifically recognised as one of the first businesses to pay the voluntary Living Wage in 2005 and was also heavily involved in the development of Access Accountancy, a scheme that encourages non-traditional applicants into the profession. It remains a key supporter of the City Academy, Hackney.

KPMG’s vice chairman, Melaine Richards, said: “Improving social mobility is fundamentally good for business and is one of the key tenets of KPMG’s commercial strategy.”

• The other champions include Deloitte, EY and Grant Thornton.

PQ Magazine May 2016

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PQ news

CARL LYGO Cambodia continues to rise to the challenge This month I have been in Phnom Penh, Cambodia, working on a project to help with the developing educational infrastructure in the country. Cambodia lost some 21% of its population during the genocide of 1975-1979 and now has a total population of just over 15 million people. Less than 4% of the population is over 65 years of age and there is a large appetite for developing private investment in the country. I was a guest of the International Monetary Fund, which is encouraging the government in Cambodia to attract more private investment in to the country. Key to this is improving the financial literacy of business and raising accountancy education in the country. Cambodia has 21 public universities and 34 private ones, with some specialising in accountancy education. Cambodia has seen major growth in garment export sales (increasing almost 20% per year) and sits from a GDP perspective at 117th on the IMF scale. In the region only China, Korea and Vietnam can boast stronger growth in recent years since the worldwide recession. The Genocide of the 1970s claimed the lives of all but 50 university lecturers in the country, 90% of all secondary school teachers were killed and 85% of all primary school teachers. These are startling facts and I was moved by the hard work of this new generation of educators still continuing to work in political circumstances that are challenging. n Professor Carl Lygo is chief executive of BPP

Angry PQs want to petition ACCA over ‘crystal meth’ P5 ACCA P5 exam sitters were ‘steaming’ after the March sitting.

Students found the spring test extremely time pressured and many struggled to read and deliver what was being asked for in the allotted time.

One PQ ventured it would take six hours to provide the examiner with the quality of answer he wanted. Another sitter claimed his answer booklet “looks like it was written by someone on crystal meth”.

Some students are saying Indy Hothi

enough is enough, and one sitter felt the time was right to petition the ACCA with their concerns about this paper.

Many PQs seem to have got permanently stuck on the paper.

The approach of tuition providers is also being questioned, as they too don’t seem to comprehend just how difficult this final level paper has become.

Meanwhile, the feedback from P1 sitters was that the exams were ‘OK’. Although time pressured, some students felt the paper was

just ‘a bit boring’. There was lots of optimism out there for the pass rates this time come results time – the week commencing 18 April.

F5 sitters found the exam pretty hard, with no written questions on ABC, throughput accounting or transfer pricing. With tricky MCQs, many students said they would be happy to scrape a pass. Another toughie was F9, where even the MCQs were difficult. Why was the exam so much harder than the practice tests was a question many sitters asked.

Quest for future leaders ICAS is looking for the young people who will be the leaders of tomorrow. The ICAS One Young CA competition is seeking nominations for the Top 35 Under 35 from across its membership. ICAS believes these young people can inspire others in their professional lives. The overall winner of the award will be crowned this year’s ‘One Young CA’ and will represent

ICAS at the One Young World Summit in Canada.

Last year’s winner was Indy Hothi, a consultant at EY in London. Aged just 27, Indy helped establish a number of key diversity initiatives, including a successful Graduate Insight Day at EY for black and ethnic minority PQs. • Nominations for One Young CA close on 27 May.

CIMA members to vote on merger CIMA and AICPA members are to be asked to vote on the plans to join forces to create a new accounting association (‘the Association’). The ballot opens on 18 April and runs until 16 June.

CIMA has told members the institute must evolve to continue advancing the profession, expanding opportunities and keeping its designations at the forefront of market demand.

It has stressed that it has no

plans to move into public accounting and CIMA members will continue to be ACMAs/FCMAs, and be able to use the CGMA designation.

CIMA has confirmed that there are no plans to increase student or members subscription fees to support the proposals. The 2015 CIMA syllabus will also be unaffected.

PQ magazine broke the news that CIMA and the AICPA planned to take their relationship to the next level in our December 2015 issue. CIMA MD Andrew Harding (pictured) said a new association of 600,000 current and nextgeneration professionals would improve PQs’ employability and career prospects. He said: “Students will be one of the main beneficiaries of the move.”

In brief AAT AQ2016 AAT PQs will have until 31 December 2017 to complete their qualification if they remain on AQ2013. But be aware that in some cases units in AQ2013 qualifications cannot be transferred to AQ2016, so additional assessments may be required. If you transfer to a qualification with a synoptic assessment this will also need to be taken.

Hoogervorst reappointed The International Accounting Standards Board has announced the reappointment of Hans 12

Hoogervorst (pictured) as IASB chairman for a second five-year term. Under his leadership the Board has finalised IFRS 9 Financial Instruments, IFRS 15 Revenue from Contracts with Customers and, most recently, IFRS 16 Leases. The IASB is undertaking a review of its structure and effectiveness. Changes to the composition and size of the Board and its work are all possibilities.

AIA guidance on Revenue IFRS 15 The AIA has told its students studying papers 11, 13 and 15 that they must familiarise themselves with the AIA Guidance on revenue IFRS 15, which has been produced specifically

to help students pass the exams. You can find the guidance via the AIA’s online secure document library.

Beta testers wanted KnowYourSubject, an ACCA and CIMA study app provider, is looking for free beta testers to try out its new portfolio of apps before launch. The users will get to keep the app when finished and all updates in the future. Email info@knowyoursubject.com if you are interested.

PQ Magazine May 2016

news PQ

EY wants you to answer this: what will you be famous for?

Ramadan clash with exams for both ACA and ACCA students Ramadan starts on 6 June this year, right at the begining of ICAEW and ACCA exams. The ACCA summer sittings take place over the week beginning 6 June, at the start of the Islamic holy month.

The ICAEW professional exams also begin on 6 June and run over three days.

The government-funded Equality Challenge Unit, which advises higher education, supports a change in exam timetables at universities. The website says: “Institutions should be prepared to consider significant adjustments to their exam schedules and think creatively about assessment

PQ Magazine May 2016

methods in order to eliminate disadvantage to particular groups.”

It also acknowledges that for many institutions altering dates of major exam periods may not be a proportionate response, especially as there are lots of other exam dates available. Both the ACCA and ICAEW offer three other sittings a year for the exams affected.

One university, however, indicated that it would allow Muslim students to submit ‘extenuating circumstances’ if they felt fasting had affected their performance.

The problem won’t be going away – Ramadan will coincide with the main exam period until 2018.

EY has managed to get itself on a new list, of the 10 toughest interview questions of 2016, with: “What will you be famous for?”

Meanwhile, BT’s tough interview question is apparently: “How many people born in 2013 were named Gary?” PQ magazine much preferred Topshop’s question: “Which magic power would you like

to have?” The answer here would be simple – to balance the books, of course.

So why are employers asking these questions?

Glassdoor’s Susan Underwood, who compiled the list, said they want to test job hunters’ critical thinking skills to see how they problem-solve on the spot, and gauge how they approach difficult situations.

Demand for CABA’s services on the rise The number of ICAEW students contacting the Chartered Accountants Benevolent Association (CABA) with emotional concerns doubled in 2015, according to its newly released annual impact report.

This meant the number of students accessing the charity’s counselling services increased by 35% during the year.

As well as providing personal support, CABA also delivered a range of workshops, seminars

and webinars directly to students and within firms as part of their induction programmes. It also continued to work with the ICAEW on a joint student wellbeing week.

The number of ACA students accessing CABA’s financial assistance also grew.

In all, more than 13,000 ICAEW accountants, both students and members, were helped by the charity in 2015, a record.

13

PQ AAT spotlight

GENERATIONGAME Kathy Moore (mum) and Jemma (daughter) are both studying AAT at HTFT. How does this play out at home?

You are both studying AAT level 2, why did you choose to study accountancy together?

Jemma: I was given the opportunity to study through work. When I mentioned to mum about who I was studying with, and the fact that HTFT had the facility to study from home and do classes online, she was keen to join as well. I thought if we both did it we would be able to help each other if one of us didn’t understand something and the other one did.

Kathy: Jemma was asked to study AAT as part of her training for her job with Listers. I have worked for my father in accounts for the past 24 years but have no formal qualification. So I thought I would see if I could get one with HTFT! Are you competitive when it comes to the assessments/exams?

Jemma: I wouldn’t say I was competitive – I just want us both to do our best, and cross my fingers that we both pass each topic! Mum gets very nervous when it comes to the exams, so as long as she passes I am happy and can relax a bit.

Kathy: I don’t think either of us is competitive when it comes to exams. I’d like to think we are supportive and encourage each other just like when we play in a netball match together!

Who is the more natural accountant?

Jemma: Definitely my mum. She has been doing accounts since 1992, where as I have been doing it just under a year, so she has the upper hand on that one!

Hopefully, it will come naturally to me one day.

Kathy: Jemma is most definitely the more natural accountant. She is so much

be to work hard, try your best and not to be embarrassed or afraid to ask for help when you need it.

Do you plan to go on after AAT to study with one of the other accountancy bodies?

Jemma: I haven’t got any plans in place yet for when I finish AAT. My reasons for studying AAT were so that I would understand my job more thoroughly and to be able to progress at work. So I think I am going to just see how the next levels of AAT go, and if I feel like I could manage the step up to CIMA it might be the next stage for me.

Kathy: At this moment in time, I am not sure what my plans after AAT are. PQ

better at maths than me and more meticulous. I am sure it’s harder to remember all the information you need to as you get older!

What is your favourite subject?

Jemma: Probably Errors and Control Accounts.

Kathy: Not sure that I have a favourite!

Who studies the hardest, and what advice would you give to fellow students?

Jemma: Although we both work hard together and try our best, I’d probably say mum studies the hardest. She works really hard to try to understand everything, and won’t give up until she gets it. My advice would be not to panic if you don’t understand a topic straight away; it will come with time and practice.

I don’t usually fully understand a topic until I have completed several practice questions.

Kathy: I think we both have the determination to work hard – we like to do the best we can in all things that we do. My advice to fellow students would

And away from all the studying…

What was the last music you bought/downloaded?

Jemma: Eyes Shut by Years & Years Kathy: Adele’s 25 What is the last book you read?

Jemma: One Day by David Nicholls Kathy: Blue Moon by Pam Weaver Pub or club?

Jemma: Pub Kathy: I’m more of a pub person!

Favourite tipple?

Jemma: Prosecco Kathy: Vodka and coke Favourite TV programme?

Jemma: Hollyoaks or Police Interceptors Kathy: I have loads! Silent Witness is my favourite, followed by Happy Valley and Downton Abbey Who is your hero?

Jemma: My mum, she’s the best Kathy: I think this would have to be Sasha Corbin or Serena Guthrie. These ladies play netball for England and are just awesome!

PQ apprenticeships

The Professional Accountancy/Tax Technician apprenticeship is here A new employer-led higher apprenticeship is now available. So what is it and how does it work?

L

eading employers, professional bodies and training providers have come together to develop a new apprenticeship standard for the audit, accountancy and tax professions.

The standard has been developed to provide school leavers with a further route into the accountancy sector and develop the skills, knowledge and behaviours that they need to build a successful career.

Key to the move is the fact that the new 14

standard has been designed to enable apprentices to study towards a professional qualification.

The Professional Accountancy/Tax Technician standard qualifies as a Higher Apprenticeship with the Government’s Trailblazer initiative.

Bodies such as the AAT and ATT have welcomed the opportunity to work alongside employers and other professional bodies to develop this new employer-led standard.

KPMG is one of the employers that will be adopting the Accountancy/Tax Technician standard for its innovative apprenticeship programme KPMG360, which was launched in autumn 2015.

KPMG’s Michael Walby said: “As chair of the

employer group that developed the standard I feel privileged to have worked alongside a diverse group of employers, professional bodies and training providers.”

He added: “Individual competitive advantage has been put aside in the interests of collaboration to improve access to opportunities for young people.”

This news came just before a new ACCA study found nearly a third of 16-18 year olds have received no careers advice relating to apprentices, putting the success of the Government’s flagship programme under threat.

The ACCA is now calling on the government to dramatically improve the consistency of careers advice that young people are receiving. PQ PQ Magazine May 2016

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PQ learning tips

Style + effort =

SUBSTANCE How do you exploit your learning style to your best advantage? James Taylor explains all

I

n last month’s PQ magazine I wrote about how identifying and embracing your ‘learning style’ can make you more effective and help you get more out of your study time.

In this issue I want to build on that by providing you with a selection of study and revision tips (for each learning style) that you might like to adopt to help you be more productive.

Visual learning style: Individuals with a visual learning style prefer the use of pictures, charts and graphs to understand and absorb new information.

Mind maps and flowcharts tend to be very effective tools for visual learners. A mind map is a graphical representation of concepts and ideas, which are often used to break down big topics into handy chunks. Mind maps tend to work for visual learners as they encourage the use of colour and images.

Flowcharts often work best for process-driven subjects such as audit (sales systems, accounting systems), where one action leads to another with specific outputs and outcomes.

Mindmaps and flowcharts, when completed, should be photographed (and kept in your smartphone’s photo library), then stuck on the wall in your study area.

The use of different colour pens as you create your study notes or topic summaries aides visual learners.

Auditory learning style: Students with a strong auditory learning style best learn through listening and speaking.

One technique that we advise our students to adopt, if they recognise

16

“

Students with a strong auditory learning style need to shout more!

themselves as an auditory learner, is ‘talk to the wall’. When you have been through a topic or chapter (ideally reading out loud) stand in front of a wall and try and recall what you have just covered by talking out loud. Granted, if somebody sees you doing it they may give you a funny look, but the advantage for auditory learners is that you will be hearing the content over and over again.

Read and write learning style: Students with this learning style learn best through words, and tend to be avid note-takers and readers of textbooks.

Students with a read and write preference tend to benefit from topic summaries and memory notes.

• Ideally using only one page of A4 (or A3) students should create a summary for each topic/learning outcome and

place this in their folders. These should be handwritten.

• Memory notes focuses on getting students to read and then summarise a specific subject, before asking them to turn over the summary and re-write it.

The more often this method is applied (with checking to ensure completeness) the better for individuals with a read and write preference.

Kinesthetic learning style: Individuals who are kinesthetic learners best develop their understanding through doing – that is, they best learn through trying and figuring things out.

We recommend that kinaesthetic learners dive into question practice as soon as possible, and we have a method that we find is very effective for MCQs. • Start by selecting two sets of between five and 10 questions on a specific topic.

• Do the first set of questions to time under exam conditions and then check your answers to the first set of questions.

Make sure you take time to understand any mistakes you have made (going back to content if required). Move on to do the second set of questions to time, under exam conditions; again, checking your answers to the second set of questions (and taking time to understand any mistakes you made).

• Make a cup of tea or coffee and watch TV for 20 minutes.

• Come back and do the first set of questions again, to time and under exam conditions and check your answers. Once checked, do the second set of questions again, to time and under exam conditions, remembering the check your answers.

• During long-form question practice only work for 45 minutes at a time – after 45 minutes give yourself a 15-minute break.

It is important to remember that practice makes permanent. The more you do (checking your answers as you go along) the more likely it is to stick.

Adopting the right technique for you (and it may be a combination of the above) is all about working smart, getting the most out of the time you invest in your studying. It may take a little time, but understanding what makes you tick and what works for you will, in the long run, means you should get the results you want. PQ • James Taylor is a director at HTFT Partnership

PQ Magazine May 2016

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PQ AAT exams

LET’S GET TECHNICAL

NIck Craggs explains all about basis periods – you’re gooner love his analysis (sorry!)

I

usually like to begin these articles with a witty, related anecdote. But there is nothing funny about basis periods; students find them difficult, do not like them and they frequently trip AAT business tax students up.

However, there is no reason why students should find them difficult. If they understand the rules then they cannot get them wrong.

Basis periods are a way of calculating how much profit should be taxed when someone sets up as self-employed (or joins a partnership).

So what are the rules?

In the first year, profits from the commencement of trade until the following 5 April are taxed. So, for example, Tony Adams prepared his first year’s accounts up to the year ended 31 December 2016, where he made a profit of £120,000. As this is a 12-month period he must have commenced trade on 1 January 2016. In the first tax year, we tax from the commencement of trade to the following 5 April, which will be 5 April 2016. We will therefore tax three months (we ignore the five days in April) of the 12 months’ accounting period, resulting in the amount of profits which will be taxable being 3/12 x £120,000 = £30,000.

So that’s year one. In year two, the rule is that we tax 12 months of profits, no matter what.

In year two, we ask ourselves: do we have a 12-month period ending in the second tax year, which is 6 April to the following 5 April? In Tony’s case, the second tax year is 6 April 2016 until 5 April 2017, and his 12-month period ended 31 December 2016 does fall into this period. Therefore, in the second year, the profits which will be taxed will be the full £120,000.

The sharp ones among you will note that Tony has made profits of £120,000 but has paid tax on profits of £150,000.

The £30,000 of profits which have been taxed twice are known as ‘overlap profits’.

These will be deducted from his profits when he ceases trading. At the end of his working life, his profits will have only been taxed once, but this might not be for a number of years. This highlights the fact that a bit of planning always helps when choosing your year end.

However, we will not always have a 12-month period ending in the second year; but we do have to tax a 12-month period in the second year. So what do we 18

do? Well, we make one!

If we have a six-month period ending 30 June 2016, where the profits were £60,000, we need to ‘borrow’ six months of profit from the following period. For example, if the following period was the year ended 30 June 2017, where taxable profits were £180,000, we will take 6/12th of the profit of £180,000 and add this to the £60,000, to equate to taxable profits for the tax year of 16/17 of £150,000. This consists of £60,000 from the period ended 30 June 16, and £90,000 from six months that we have borrowed from the year ended June 2017.

You may be faced with a long accounting period in the second year. We still need to tax a 12-month period in the second year, so we just take the last 12 months of the long accounting period.

For example, Steve Bould had a 15-month accounting period ending 31 December 2016 where his taxable profits were £300,000. He would only be taxed on the past 12 months, so his taxable profits would be 12/15 x £300,000 = £240,000.

If the examiner is feeling really nasty they might not give you an accounting period that ends in the second tax year; you may have an accounting period which spans the entire tax year. Either way, we will make a 12-month period as we tax from 6 April at the beginning of the tax year to the following 5 April.

For example, John Jensen has an

18-month accounting period that ends 30 June 2017. His taxable profits are £90,000. For the year 2016/17, we do not have an accounting period that ends in the tax year, so we will just take 12 months of profit, from 6 April 2016 to 5 April 2017. This will be 12/18 x £90,000 = £60,000.

So that is the second year; what happens in the third year?

In the third tax year, the odds are that you will have a 12-month period that ends in the third tax year, so you will just tax that. However, if you do not, you just follow the rules from year two.

So that’s it – learn the rules and you cannot go wrong!

Why don’t you have a go at the following scenario. You can watch me calculate the answers at http://www.first intuition.co.uk/category/aat/ PQ Ray Parlour has the following accounting periods and profits: • six-month period ended 30 June 2016 with profits of £30,000 • 12-month period ended 30 June 2017 with profits of £120,000 What are the taxable profits in the following tax years?

• 2015/16 • 2016/17 • 2017/18 • Nick Craggs, AAT Distance Learning Manager, First Intuition PQ Magazine May 2016

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PQ CIMA roundtable

Five heads are bett We spoke to Kaplan’s CIMA experts about how PQs should best approach the case studies

Q: The challenge for many CIMA case study sitters is that there is no real syllabus. What is the best way to approach ‘studying’ for the case study?

Becky: Think about the topics you found difficult, didn’t like or didn’t really understand from the OT subjects. Look for clues in the preseen; for example, if a company uses absorption costing, ABC could come up. Be very careful though! Five variants makes topic picking dangerous. The examiners are brilliant at moving the organisations forward rapidly. In OCS November ’15, Flores Rosa had no technology but the examiner managed to bring in big data to variant 2. Practising questions and getting feedback is a great way to find out where you need to put in the extra work.

Sue: The level of technical detail that you need to demonstrate differs depending on the level you are attempting (more required at operational level), so it’s a good idea to review past variants to get a feel for how topics are tested. Then review the OT paper syllabuses to identify areas you need to work on. While the pre-seen can suggest some issues, across five variants CIMA can examine a wide range of content and so you need to be prepared for as much as possible – not all of it is predictable as CIMA can introduce new issues in the exam.

Stuart: One of the reasons for the case study is to try to get students to think more broadly across all of the subjects, hence there being no syllabus. This gives you a clue as to how you should approach the case, especially at the strategic level. Yes, you need know the technical content but it’s more about application – just think about the industry and what you would do

if this was a work problem. Be practical.

Helen: It is essential that when you are reviewing the technical papers you are constantly thinking about how a particular topic would apply to the particular pre-seen you are studying. There is no point trying to learn something in great detail if you aren’t thinking about how you would discuss it in the exam. So for each topic think about how it relates to the pre-seen. For particular techniques and strategies that are not currently utilised by the company in question, it is worth thinking about the potential benefits and problems if they were to be implemented.

Peter: When reviewing the topics from the E, F and P subjects it would be useful to review how the syllabus topics were tested in the old syllabus when there were longer questions, many of which assessed application as well as the calculations. The case study exams will not re-test any areas of calculation but you will be expected to explain the consequences of calculations and syllabus knowledge being applied. It’s also useful to review the past case study exams to see how the E, F and P topics can interact.

Q: Do students need to approach the case studies at the various levels differently?

Becky: Operational level is the most technical with 64% of the marks for technical knowledge.

It is much more important at this level to make sure you know the accounting standards and pros and cons of various techniques than you do as you progress to the higher levels. At all levels knowledge of the pre-seen, so you can apply your answers to the organisation, is essential.

Sue: I would say so. Operational requires the most technical knowledge, whereas at the managerial and strategic levels it’s not so much about the detail but about how you would apply your knowledge to practical situations. Certainly at managerial level (which I teach) a common sense approach can go a long way, particularly

MEET OUR PANEL Stuart Pedley-Smith is Kaplan’s Head of Learning and a former PQ magazine Tutor of the Year. He writes a regular blog on examinations and learning. Stuart is the author of books on exam skills and writing business reports, and he specialises in financial strategy and the strategic case.

Becky Evans is Kaplan’s Head of ACCA and CIMA. She joined Kaplan as a tutor in 2006, having trained and worked as a management accountant in the car industry. In 20

the past 10 years she has taught a range of subjects across the ACCA, CIMA and ICAEW qualifications and now specialises in business strategy and case study papers.

She was appointed Head of ACCA and CIMA in 2014.

Sue Thistlethwaite is CIMA Course Manager in the Kaplan Live Online team and is based in Leeds. She joined Kaplan as a tutor in 2005, specialising in financial and corporate reporting and teaches across the CIMA, ACCA and ICAEW

STUART PEDLEY-SMITH

with E related tasks. I would say this is more important than being able to quote theoretical models, which alone would be unlikely to answer the requirement adequately.

Helen: Absolutely. You are taking on a different role in the organisation. The response expected by a finance assistant will be very different to that of a senior manager and your answers should reflect this. This is something to be particularly careful of when topics cross over into different levels. So a student studying strategic management at the strategic level will be expected to approach a question in a different way to how they dealt with it at management level.

qualifications. Within the CIMA syllabus, she teaches F2 advanced financial reporting and managerial level case study.

Helen Crofts is Kaplan’s Social Learning Manager. Helen has spent the past 15 years working in accountancy education, and for the last 10 has specialised in business strategy, with a particular focus on case study style papers. She recently completed a two-year secondment to Kaplan Publishing where, working alongside the CIMA examining team, she had responsibility for designing and writing the official CIMA textbook for the management case study and

designing the official CIMA textbook for strategic case study.

Peter Stewart has been the Director of Learning at CIMA since 2013.

He is responsible for the successful progression of CIMA students through the exams, including working closely with learning partners such as Kaplan.

He is also responsible for ensuring CIMA members have access to professional development learning.

Peter has spent over 25 years working in roles to support students through their professional qualifications, and was PQ magazine’s Accountancy Personality of the Year in 2012.

PQ Magazine May 2016

BECKY

ter than one

Y EVANS

HELEN CROFTS

SUE THISTLETHWAITE

PETER STEWART

“

Although you don’t need to remember every fact and figure you should know where to find the important facts in the pre-seen

Peter: Absolutely. Although there are many common features (appreciating the pre-seen; communicating clearly, etc.) the case studies simulate different job roles at the three different levels. At Strategic you’re communicating with your senior leadership team; at the operational levels you’re dealing with peers and business managers. It’s important that you ‘get in character’ for the persona described in the syllabus document.

Stuart: Yes, you are communicating with people at different levels within the organisation. At strategic you are a senior manager so what you are asked is slightly different, and the way you need to answer far more commercial and less technical. As I said, this is not a test of what you know but what you can do, often to solve the problem or offer advice.

Q: How should students use the pre-seen (which is published seven weeks prior to the exam) so they are ready for what happens on exam day?

Becky: Know it inside out and back to front.

Although you don’t need to remember every fact and figure you should know where to find the important facts in the pre-seen. In the exam there is no time for students to spend re-reading chunks of the pre-seen. Make sure you know who the people are and what their roles are. You are meant to be working for this organisation, so referring to people by name demonstrates more application to the pre-seen than ‘the HR manager’. After all, you wouldn’t do that at work.

Sue: You can use the pre-seen to identify potential issues (threats facing the company, PQ Magazine May 2016

potential opportunities that they may want to pursue, relevant accounting standards/treatments) and think about the type of tasks you may get as a result of these.

However, as previously mentioned, it is important not to focus too much on what you identify here as previous sittings have included issues that weren’t particularly predictable. Make sure you have a good understanding of the company and industry so you can reflect this in your answers.

Stuart: Reading on its own is not a particularly good way of absorbing the information in the case, so that you can manipulate it when required to do so on the day of the exam. I would recommend students produce a summary document, taking each paragraph and highlighting what is important. Then at the end summarise it using a SWOT. Not only will you learn from this, but you will end up with a great set of notes from which to revise.

Helen: The important thing is to get into character as this will make your responses more natural and focused. It is often helpful to try to narrow down the pre-seen into a list of key things the company needs to consider (opportunities and problems). Imagine you are doing a brief presentation on the company – what key points would you be making?

Becoming familiar with this list will help to ensure all your answers are applied to the scenario.

Peter: I sometimes think of the case study as similar to a job interview. The pre-seen is the research pack I would create ahead of the interview. The case study is not testing my

CIMA roundtable PQ knowledge of the pre-seen, but the exam should not introduce information about the organisation that comes as a surprise to me. I might have to flick the pre-seen open during the exam just to make sure I remember one or two specific facts correctly but I’ll do a lot better if I have all the key issues (products, competitors, opportunities, threats, strengths, weaknesses, etc) at my fingertips.

Q: Is there a problem for students who have been exempt earlier papers? How do students ensure they have no knowledge gaps?

Becky: I have seen this in some of the groups I have taught. Students need to be proactive in ensuring they have no knowledge gaps from exemptions. This could be as simple as reviewing the syllabus for the subjects where they have been awarded an exemption, although some students may benefit from sitting the underpinning course. Ask your tutor for help and guidance. That’s what we are here for!

Sue: In a word yes! I’ve experienced this at managerial level with students entering the qualification via the Gateway route and they find it incredibly challenging. We run specific Gateway courses, providing students with resources for the three underpinning papers so that they can identify their knowledge gaps and prepare accordingly. The one advantage that these candidates often do have is plenty of practical business experience, which can really help in answering some tasks.

Stuart: At strategic it’s normally not so much a problem. That is probably for two reasons: there are not many exceptions that get you directly to the strategic level, and the more application based nature of the questions means it’s more about how you say something rather than what you know.

Helen: The main problem is not so much gaps in knowledge but the point at which students begin to address these gaps. If a student mentions to me two weeks before the exam that they had two exemptions at the level there is a lot less time to cover these gaps. It sounds so obvious but it is a common occurrence!

Knowledge gaps are never insurmountable as there are plenty of resources available, but give yourself plenty of time to fill the gaps.

Peter: Both for exemptions and for students transferring from the previous syllabus. The case study tasks often refer to very specific syllabus content. I advise all students to review the syllabus documents for all three subjects and make sure that you could come up with some explanation of the topic, its application, its benefits and any drawbacks.

Q: There has been lots of chatter about integration marks and real-life business examples. What is your advice on these areas?

Becky: Don’t worry about them. All the communications we have had with CIMA suggest that there are no specific marks for reallife examples. The integration marks are built into the questions, so if you answer the question that has been set the integration marks will look after themselves.

Sue: It’s not possible to identify specifically what the integration marks are for in a particular task, Continued on page 22 21

PQ CIMA roundtable

Five heads are better than one

Continued from page 21

so the best thing to do is not worry about them.

CIMA’s guidance is that if you are answering the specific requirement that has been set in an appropriate manner then you should be automatically picking these marks up.

Helen: There are no direct marks for real-life business examples and so it is a waste of time trying to rote learn any. Having said that, having an awareness of how real companies react to certain industry problems can help you get into character so would not be a waste of time – just don’t get obsessed with industry research. As with all sections of the marking guide integration is important, but a sensible student who addresses all parts of the requirement using appropriate knowledge from across all the syllabus should achieve good marks here. Just answer the question!

Stuart: I agree with my colleagues – if you think in a practical way about what you have been asked, know the pre seen and can explain what you mean, you will get these automatically Peter: Candidates should not be looking for specific marks for any of the five areas being assessed (four competencies plus integration) when they’re doing the exam. We’ve highlighted ‘integration’ as an important feature to encourage students to think broadly and deeply when providing a response. So instead of thinking “this is X topic from F2” you want to provide a clear response that helps the reader

The three case study preseens are now out there.

Here we look at two of them Dreempark .

Strategic case study students are being asked to transform themselves into the senior financial manger for Dreempark, a global theme park operator.

The vision of founder Burl Stanton is key here. He opened the first park in the UK in 1962 and Dreempark prides itself on offering family entertainment. Its major parks also don’t sell alcohol or tobacco!

Dreempark concentrates on the complex itself, leaving it to third parties to build and operate hotels that surround the parks. There is a new park being built in the Far East and the website is already receiving thousands of hits a day, even though tickets are not yet on sale.

The accounts show revenues and profits are up, as are visitor numbers.

Dreempark also has an excellent health and safety record. It has never had a fatal accident. However, we are told there is always the risk that accidents can occur, which could be serious. The last page of 22

make a decision or plan some action. It may bring in ideas from other subjects; it may bring in topics from elsewhere in that subject.

Q: Time management is a key on the day, as the exam tries to simulate a working day. What advice can you give students that would give them an edge?

Becky: Don’t think about the exam as being three hours long but as individual questions 3060 minutes in length (depending on the level).

As you can’t jump forward and backwards between tasks it is how you plan your time per question that is key. Make sure you split your time across the whole question so you don’t leave yourself short of time to finish – if the final part of a task all comes from one competency you could find yourself in position where you ‘fail’ a competency and therefore fail the exam.

Sue: Time management should be straightforward. In each task, look at how many requirements there are and allocate your time evenly between each requirement. The marking guides to date demonstrate that requirements within a task will be reasonably evenly weighted.

It is very important that you dedicate sufficient time to each sub-requirement as it will be linked to a particular skill. Failing to demonstrate minimum competence in one skill means failure in the exam, regardless of how well you do in the others.

Stuart: Comparing this with the previous T4

case, it is so much better from a time management perspective. At strategic, you will usually be faced by three 60-minute sessions and that helps. Within the 60 minutes there are often two tasks so divide your time equally; this may not be how it’s marked, but unless there is a clue in the question it’s the simplest thing to do.

Helen: My advice about time management is not to get so panicked about writing enough that you don’t do sufficient preparation. A well-thoughtthrough, concise answer is likely to score better than a long, rambling stream of consciousness.

Good planning is essential and will take most students between 20-30% of the time available.

I suggest for a 45-minute task 10 minutes is about right. You can then allocate about 1.4 minutes per mark to writing up your answer, which should be plenty if you know what you are going to say.

Peter: I would advise that around 25% of the allowed time for each task is used for thorough planning. You should jot down your ideas in the answering space (not the scratch pad), making sure that you have something to address each of the issues raised in the task. By using the answer space you can then cut and paste your plan into your main answer. Start typing the answer above your plan, perhaps leaving a bold heading saying ‘ANSWER PLAN’ so that markers don’t think that your jottings are an attempt at an integrated answer. PQ

The May pre-seens the case is a TV news flash about trapped visitors on a ride in the Far East, but we knew that was coming.

Animal welfare is also important as it has dolphins, sea lions and other sea creatures. There is also a petting zoo.

One of the press clippings is all about the problems of dolphins in captivity.

Weather can have a big effect on attendance and covering its parks is being explored.

Having parks in many different countries means the company is exposed to foreign exchange risk. We discover it utilises financial instruments to hedge against adverse currency movements.

Then we meet Happyworld, the park’s closest competitor. Could we looking at a takeover/merger? There is also an MOU with a engineering consultancy MIMC, which designs theme parks.

IC Optical .

Here management case studiers are a financial manager employed by IC Optical, a company that sells glasses and contact lenses though a chain

of high street opticians. You have to prepare the annual budget and help with costing and pricing.

The company is now listed, but it started life as a wife-and-husband team.

Its rivals are Newspecs (IC has double its profits) and Zimchem.

Interestingly, every citizen in Ceeland is entitled to a free eye test once every two years. The government then pays the optician C$100. If there was a change in government policy this might effect the market, as in a SWOT analysis we discover there is little brand loyalty from customers. It also appears competitors are spending a lot more on marketing.

Franchising models, which Newpecs used to grow quickly, and internet suppliers are other threats.

The company is doing some exciting R&D. One project is developing variable lenses. The second project involves integrating glasses with other devices (such as your car).

Store budgeting and control looks set to be a key part of the case. At the tail end of the case you get a typical store’s annual budget. PQ PQ Magazine May 2016

Becker’s Interactive eBook Becker’s Interactive eBook is one of the most technically advanced ACCA preparation tools available. The interactive eBook is an online resource that merges on page content, video presentation, tutor notes and audio instruction.

Becker’s Interactive eBook brings topics to life by combining syllabus learning points with interactive technology to take advantage of approximately 15 hours of audio and video lectures per paper from our expert authors and tutors, including interactive question practise, video introductions and tutor annotations.

Becker’s interactive eBook provides students the flexibility and freedom to study whenever and wherever it’s convenient for them.

eptermber 2016 editions now avalble for a 25% discount on all ACCA products Visit: Becker-atc.com

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PQ awards 2016

Meet our PQ of the Year Say hello and a very well done to Manuy Figueroa – musician, AAT and our PQ of the Year 2016

M

anuy Figueroa isn’t your typical PQ. Well, he’s the PQ magazine’s PQ of the Year 2016 for a start. What a lot of people don’t know, however, is how much he loves his numbers. And he also loves salsa just as much!

During the week Manuy works for St Mary’s Services Chartered Certified Accountants, but at the weekend he plays bass and percussion for Latin American music makers Manzana Tropical.

Our PQ of the Year couldn’t make the awards night. Unfortunately, he was at home getting over a bout of chickenpox.

When he was back at work we travelled to south London to see what the future holds for him.

Manuy said accountancy was an obvious choice for him. It provides job security and chance to travel the world and still do his music. With so many SMEs in the UK the need for accountants just keeps on growing, he says.

Manuy started his accountancy life on an AAT apprenticeship programme. He is now AAT qualified and is working as an accounts co-ordinator. But his life will change drastically come September, when he starts his accounting and finance degree at Leeds Beckett University. That means he is taking the summer off from

Perfect pitch: Manuy Figueroa hit all the right notes with the PQ Awards judges

studying. He has been at it since January 2013, when he started AAT, and did it all quickly, qualifying at the end of 2015.

At St Mary’s Services he helps with selfassessment tax and VAT returns and the financial accounts for limited and sole traders. He also manages a number of apprentices. Then there are the monthly management accounts. It’s full on – he’s the only accountant working there at the moment.

Manuy did look at starting his ACCA studies, but discovered he got nine exemptions on the Leeds Beckett course and he could go straight into the second year. When asked what his favourite AAT subject was, he says he loved the whole of Level 4. “It 100% related to my work, every single assessment made sense,” he said.

Surprisingly, he disliked Level 3 professional ethics the most, mainly because it involved a lot of writing and he is a numbers man.

When it came to study and revision, Manuy tried to do something on a weekly basis. He stressed that it doesn’t matter what you do as long as it is something!

Even if you are reading a page a day you are doing something, he said.

Manuy found the Osborne books “fantastic” and the Training Place material “was also really good”.

Winning the PQ of the Year has been a fantastic boost to his confidence, he said.

The staff at St Mary’s are very proud of their man, there was a lot of screaming and jumping around when he came into the office, he said. Manuy still had a big smile on his face when PQ visited. PQ

PQ tax and health

Sugar tax may leave a bitter taste S oft drink manufacturers could take the UK Government to the European court over what has been described as the ‘discriminatory’ sugar tax. The new sugar tax, put forward in George Osborne’s eighth Budget, may never see the light of day, as Coca-Cola and other drink makers put together a legal challenge to the proposals.

The soft-drink manufactures look set to argue in court that the tax, due to levied from 2018, is discriminatory because it will not hit other beverages with high sugar content. This is not an idle threat.

There have been successful challenges to similar tax moves in Denmark and Finland. Late last year the European Court of Justice also blocked Scotland’s plan to enforce minimum alcohol pricing.

Chancellor Osborne was hoping the 24p a litre tax on high sugar products 24

Will the Chancellor’s sugar tax ever get off the ground?

would help raise £520m a year.

Peter Dylewski, chair of the CIOT’s indirect taxes sub-committee said: “There had been wide speculation about the sugar tax, but these measures just target the soft drink industry.” He said the long lead-time has to be welcomed, along with consultation on how the levy will operate.

He explained that this tax is the latest in a long list of taxes designed to influence behaviour. The Landfill Tax and Aggregates Levy are two other examples.

The challenge with all such levies, he stressed, is that if they are successful in achieving their aim the tax take falls.

Dylewski said: “While the tax starts with the soft drinks industry, clearly if it is judged a success it could be extended.

Other sectors will now know the Government’s warnings over obesity have

teeth and, if they felt not to be pulling their weight, the tax could be extended to swallow them too.”

Many fruit juice and smoothies can contain more sugar than the traditional cans of fizz, and should be included in the new sugar tax, according to some experts. “It’s a no-brainer to include fruit juices and smoothies in the levy,” says University of Liverpool’s Simon Capewell.

Among the drinks that would be exempt, for example, is a Krispy Kreme Strawberry Kreme milkshake, which contains 21.8g of sugar per 100g. That is double the amount of sugar found in Coke (10.6g per 100ml). A McDonald’s large strawberry milkshake contains 74g of sugar, 50g of which is added. That’s 12 teaspoonfuls of sugar and is 160% of the recommended daily dose for people aged 11 and over. PQ PQ Magazine May 2016

money laundering PQ

I

’m sure many of you will have been avid viewers of Breaking Bad, the hit US TV series. If you haven’t seen it, it is the story of Walter White, a chemistry teacher who is diagnosed with terminal cancer. He decides to use his scientific knowledge for nefarious means, manufacturing the illegal drug crystal meth to pay for his medical care.

One of the many problems faced by Walter throughout the six series of ‘Breaking Bad’ is how to account for the millions of dollars his drug manufacturing ‘business’ earns. The main issue is that money earned from drugs is illegal, and the quantities of cash earned could not easily be explained to the tax or criminal authorities. In one scene, an entire garage is filled with money, stacked almost from floor to ceiling!

The series demonstrated a number of ways in which these illegal earnings could be ‘laundered’ – that is, processed through financial transactions to make it appear ‘clean’. Let’s look briefly at how Walter and his wife Skyler, aided by their corrupt lawyer Saul, attempt to launder the money made from his drugs operation: • A website was set up by Walter’s son, with the aim of raising money for his father’s care. Saul made regular contributions to the appeal using the drug money, with the aid of a computer hacker accomplice.

• Skylar bought a car washing business as a way to launder money. The business was purchased using drugs money, but Walt and Skylar tell their family he won the money playing blackjack. As a cashdriven business it provided a believable reason why Skylar would be able to bank large deposits of cash on a regular basis.

• Walter blackmails a former business colleague (who is a multi-millionaire) to take drug money and then to make a donation in trust for his family.

You should see that the common denominator in all of these schemes was trying to hide the true origins of the money – creating a ‘trail’ of transactions (which also often involve off-shore bank accounts) to make the illegal money appear to be legitimate.

Accountants need to be watchful – they deal with a wide range of clients, and may encounter situations in which they become aware, or suspect, a client to be involved in criminal activities. There is a legal obligation to report any

How to spot a client who is

BREAKING BAD

Neil Arnott explains the responsibilities accountants all have under the Money Laundering Regulations – wide-ranging legislation that you ignore at your peril

instances that they know, or believe, to be money laundering without notifying their client. In an accounting practice this is most commonly done by completing an Internal Report and submitting this to the firm’s Money Laundering Reporting Officer (MLRO), who will then make a judgement on whether to report this to the National Crime Agency (NCA). Sole practitioners must complete a Suspicious Activity Report (SAR) and submit this to the NCA. Failure to do so – simply ‘turning a blind eye’ – could see the accountant charged with money laundering themselves, which carries a maximum sentence of up to 14 years imprisonment and an unlimited fine.

So how can accountants minimise the risk of becoming embroiled in a money laundering investigation? The most important safeguard is to ‘know your client’, by carrying out robust Customer Due Diligence (CDD) with any new clients, and closely monitoring current clients’ business to identify any indicative events. These could include ‘unusual’ transactions (particularly involving high

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levels of cash or overseas accounts), new business ventures that are not typical of the core business, or involvement of family members in the business where this would not normally be expected.

Of course, this ‘risk-based’ approach is not bullet-proof, and accountants must be aware that any client who is involved in illegal activities – typically including drugs, smuggling, trafficking, fraud and tax evasion – will be taking steps to ensure their criminal deeds remain undiscovered. Accountants must be particularly aware of the threats of familiarity and intimidation here; it can be difficult to remain objective when dealing with a long-standing client with a previously unblemished record, and the clients may even try to persuade the accountant to become intrinsically involved in the money laundering – either by using threats or offering financial inducements.

And one final tip – avoid having any clients like Walter White! PQ • Neil Arnott is a course tutor at Premier Training

PQ internal audit

AWATCHFULEYE T

he latest AAT Professional Diploma in Accounting at Level 4 includes a Unit External Auditing. Section 3 is headed ‘Evaluate the audited entity’s system of internal control’ and there is reference in 3.1 of the monitoring of controls by management and/or an internal audit function.

This article therefore will be of interest to those studying this unit and to both ICB members and students who need an awareness of the internal audit function, together with ACCA students preparing for F8.

The global Institute of Internal Auditors (IIA) defines internal auditing as an independent, objective assurance and consulting activity designed to add value and improve on operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

This definition is simply a statement of the fundamental purpose, nature and scope of internal auditing. It is an authoritative guidance for the internal auditing profession and is part of their International Professional Practices Framework (IPPF).

With corporate scandals in the latter decade of the 20th century both in the US and Europe, there has been greater focus and a more disciplined approach to corporate governance.

Developments such as the Cadbury Combined Code UK (1992) and Sabanes-Oxley US Legislation (2002), together with the recent Financial Reporting Council’s Corporate Governance Code express the need for strict internal controls and directors’ responsibility for such controls, as well as the establishment of audit committees. Directors should review annually the internal audit function, and the board should review its scope of work, its authority and resources.

What, then, are the principal activities of an internal audit department?

• Examination and evaluation of both financial and operating information.

• Review of compliance with legislation and regulations.

• Review of internal policies with emphasis on the authorisation of transactions.

• Assessment of internal risk.

• Review of the cost effectiveness, efficiency and value for money audits (public sector).

There are, therefore, both differences and similarities between the internal audit and external audit function.

This can be summarised as: INTERNAL AUDIT The scope of the work is determined by senior management

EXTERNAL AUDIT This is determined by the requirements of statutory audit

Approach

Ensure that the accounting systems are efficient and provide relevant and accurate information on which management decisions can be taken

To form an opinion whether the financial statements present a true and fair view

Responsibility

To senior management to advise on internal control and governance

To the shareholders

Scope

26

Philip Dunn outlines the role of the internal audit function in ensuring good governance is maintained

There needs to be a professional relationship between the external auditors and the internal audit department. The external auditors need a clear understanding of the internal audit function, so that an effective audit approach can be planned and whether it is possible or desirable to rely on the work of the internal audit team. They would need to be assured of the technical competence and professional due care of those assigned with the internal audit responsibility.

It is essential that internal audit should operate in an environment where it can: • Plan and carry out its work as required.

• Have full access to the senior management team through the board and where appropriate the audit committee.

• To be able to communicate openly with the external auditors.

• Be free from operating responsibility.

It is desirable that internal and external auditors meet periodically to share experiences, benefit from their individual skills expertise and perspectives and thus increase the economy and efficiency of the entire audit process.

It is often the case within the public sector – for example the NHS, police authorities and district, borough and county councils – that internal auditors conduct value for money (VFM) audits. With the increased pressure on public sector funding and the need for the provision of quality services such exercises have become an integral part of the internal audit function.

As we move globally towards the integration of corporate governance ethics and principles in the conduct of business activity it is clear that the role of the internal auditor will gain further prominence.

In conclusion one could ask the question: would the recent Tesco scandal have been avoided with more strict internal controls? PQ • Dr Philip E Dunn, Assessor and Freelance Writer, Kaplan Financial

PQ Magazine May 2016

Two choices for tax!

“Tax is a really good career choice because it gives you the opportunity to be involved at the highest levels of business in a way that isn’t offered by all careers” – Glynis Moore, Head of Group Tax at Fujitsu A well-paid and secure career in taxation stands on being tax qualified and gaining the experience.

Find out more about tax compliance at: www.att.org.uk/workingintax Find out more about tax advisers at: www.tax.org.uk/workingintax

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PQ ICAEW spotlight

Check our exam checklist You’ve done the revision, but are you prepared for the day of the exam? Tutor Harvey Kennett offers some tips on getting it right

¥ For discursive exams make each point clear and separate. Put every point in a separate paragraph.

Timing is everything .

The simplest way to manage your time is to look at how many marks each requirement has and allocate your time accordingly. You can even note down when you should move on to the next question if it helps.

The day before .

Check your admission details on icaew.com/exams. This will have your candidate number and the exam centre address. Make sure you arrive 30 minutes before the start of your exam.

What you can bring .

Check what permitted texts you should have Ð visit icaew.com/permittedtexts Make sure you have… . ¥ Two forms of ID. ¥ Your own black ballpoint pen. Other pens donÕt scan as well and the markers can only give marks for what they can see.

Don’t panic! .

Good preparation with lots of exam practise will improve your confidence Ð thereby decreasing your stress on the day. A positive mental attitude goes a long way to making sure you pass.

Read the question .

It sounds simple, but you must read the question fully and then answer that question.

Stay on topic and remember not to deviate away from what the question is asking.

Question practice .

Whether you are sitting one of the knowledge or

skills-based exams, you will need to know the technical content so learn the syllabus. The question bank, sample papers and past papers show you how you will be tested, and show you what to expect in your exam. They are essential to your exam prep; find them at icaew.com/examresources Consider your layout . ¥ Consider the format that you expect to see in the exam paper and use in your answers and learn it. ¥ Always show your workings. The marker can only give you credit for your method if they can see it.

A QUICK LOOK AT...

Time’s up .

When time is up you must stop writing immediately. Any further writing will be classed as misconduct and your details passed on to the ICAEW Assessment Committee.

This includes: filling in your candidate details, numbering pages, crossing out or signing your name.

For a comprehensive list of dos and donÕts for your exam read through the Instructions to Candidates guidelines at icaew.com/exams PQ • Harvey Kennett is a tutor at First Intuition

Documentation techniques for accountants: Data flow diagrams

Documentation is an important tool to existing and the proposed systems operate. understand how systems work. A system Data Flow Diagrams (DFDs) are the most interacts with various business processes in an common documentation tool for accountants to organisation and its inputs, processes and show the data flow. DFDs are graphical outputs. Documentation covers who, what, descriptions of sources and destinations of data when, where, why and how of data entry, and shows where data comes from and how it processing, output and controls. flows, the processes performed on it and, Accountants need Accounts FIGURE 1: Data flow diagram of documentation to understand how Receivable the customer payment process processes work in a systemic context, it helps accountants in evaluating the strengths and weaknesses of an entityÕs internal Customer Remittance Receivables payment data information controls. Accountants pursue 2.0 1.0 Process Customer Update documentation to determine if a Payment A/R proposed system meets the needs of its users in the organisation.

Deposit Documentation includes various types of tools, mainly narratives, Bank flowcharts, and data flow diagrams.

The greatest amount of skill is needed to prepare documentation.

If you are a member of a team that is ultimately, where the data goes. Data flow developing a new system then you must diagram consists of four basic elements, prepare documentation to show how both the namely, data courses and destinations depicted 28

During the exam . ¥ Follow the instructions on the front sheet of the exam paper. You may sign, date and print your name on the answer booklet before the start of the exam but that is all. ¥ Stay within the lines. Anything written outside of the answer booklet grid will not be scanned, so will not be marked. ¥ Make sure you start answering each question on a new page. ¥ Use both sides of the answer booklet. ¥ DonÕt use corrector fluid or tape as it can affect what the marker sees (and marks). If you make an error cross it out neatly and carry on.

in squares represents organisations and individuals sends and receive data used or produced by the system.

Data flows are represented by arrows showing the flow of data between sources and destinations, transformation processes are depicted as circles showing transformation of data. Lastly, data stores are represented by two horizontal lines showing temporary or permanent depositary of data as presented in the diagram (left).

The highest level of DFD is called a context diagram and it shows a Credit summary level view of the system, it Manager depicts a data processing system and the external entities that are sources of inputs and destinations of its output.

• Chitharanjandas Chinnapaka is an AIA Achieve e-tutor. The AIA Achieve team is producing a series of ‘A Quick Look at….’ articles and more can be found on the AIA website: www.aiaworldwide.com/a-quick-look-at PQ Magazine May 2016

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PQ careers

Six steps to heaven Speak up for yourself and you can take control of your career, says Karen Young, who offers six suggestions to help you do just that

S

houting about your successes and career ambitions can feel uncomfortable for many people, but this skill is important if you want to get ahead in your career. Our latest research, the Hays Global Gender Diversity Report 2016, found that both men (32%) and women (44%) do not feel they have the opportunity to communicate their ambition and self-promote in the workplace.

Making sure other people know what your goals are will help make sure you’re considered for future opportunities, and give you greater control of your career path. Here are six ways to raise your profile in the workplace to help you with your career progression: 1. Meet your targets First things first – perform well and meet your targets. This shows your employer your future potential. If you want to be recognised professionally it needs to be for the right reasons.

2. Shout about your successes and show your enthusiasm Don’t be afraid to shout about your successes to others. If you are working hard and performing well don’t be embarrassed to share

30

your success with your boss and colleagues. Be sure to shout about the success of peers and colleagues too, as it helps show you thrive in a high performance culture.

Be open about your enthusiasm to learn and take on new responsibilities, whether this is through shadowing a colleague, becoming a designated IT expert or volunteering to learn new skills and take on projects that go above and beyond your job description.

3. Invest in your own development Nothing shows you are keen to progress like investing in continued development of your own skills. You will be learning technical accounting skills as you study for your exams, but think about any additional training you might need to develop your IT or communication skills. Put yourself forward for training opportunities or request opportunities to shadow your colleague in another department for example.

4. Find yourself a mentor To get noticed you need to be pushing yourself outside your comfort zone. Find yourself a mentor, someone whose career path you admire and who can give you regular guidance on what skills you need to

develop to progress. The benefits of a mentor are two-fold. Not only can they offer you guidance and support, they can also be a positive advocate for you to other people in the organisation, or potential employers in their network in the future.

5. It’s about your attitude as much as your aptitude Nothing will affect your reputation like a good attitude on top of your aptitude! Get yourself into a positive frame of mind. When you see a problem or challenge take a solution to your boss, not just a problem. When your boss gives you feedback take it on board and act on it in a tangible way. This will demonstrate that you are serious about your development and respect their views.

6. Stand out and speak up in meetings This means preparing well for meetings by getting sight of the agenda and delegates in advance.

Start to formulate your views, ideas and relevant action points beforehand so that you are fully armed to stand out in that all important meeting.

Above all, it’s about taking ownership of your career, being proactive and taking the initiative without being afraid or embarrassed to communicate your successes and raise your profile in the workplace. If you don’t take control and take steps to self-promote and push ahead in your career, no one will do this for you.

Find out more about ambition in the workplace at http://gender-diversity.haysplc.com PQ • Karen Young, Director, Hays Accountancy and Finance

PQ Magazine May 2016

careers PQ

social media ROUND-UP Our tweets on #PanamaPapers have been busily retweeted this month. We explained that RSM’s George Bull thought that PanamaLeaks was bigger than WikiLeaks. We still have to be convinced about that even though HMRC apparently wrote to the International Consortium of Investigative Journalists (who they?) asking for a copy of the 11million-plus documents which cover 40 years of ‘stuff’. @PQmagazine wondered if anyone could think of three legitimate reasons why individuals need to have their money offshore in Panama?

Russell Hague wondered if anybody could give one reason, and Cain Squires agreed: “No! Sorry!”. William Paterson, however, gave it a try: “Nice excuse for a holiday there. Convenient for a stop-off on a cruise on the Panama Canal. Finally, you could keep your spending money there to pay for a salsa course.”

Another popular tweet was our homage to Ronnie Corbett. One of his best ‘newsreader’ gags was: “There was a fire at the main Inland Revenue office in London today, but it was put

out before any serious good was done.”

As we said last month, someone you should ‘friend’ on Facebook if you are an ACCA P2 student is Tom Clendon, our former PQ Lecturer of the Year. He is now offering a P2 exam marking service where you get his mock exam, which he then marks and gives valuable feedback. You also get a full answer and some extra revision material – all for £25 (you have to private message him).

We have to thank LinkedIn for giving us a head’s up for the CIMA and AICPA joint venture ballot. We knew that various dignitaries were touring the country to explain the proposals, but we didn’t know the voting was starting on 18 April! The two bodies started their joint venture in 2012 – this is a ‘weshould- live-together-but-it-isn’t-a-fullblown- marriage-proposal-just-yetwhere-I-take-your-name-and-everything’ arrangement.

PQ Magazine May 2016

Life at The Training Place Daphne Sanya (“let’s just pretend I’m 21”) is a resourcing and marketing executive based in London. She he has a degree in Applied Social Science from Goldsmiths university. She was named Training Manager of the Year at the PQ Awards 2016 What time does your alarm go off on a working day?

5.30am, but I tend to wake up a few minutes before that.

What’s the first thing you do when you get to your desk?

Switch on my computer. I have a screensaver of a beautiful ship – written on it is “Ships are safe in harbour… but that’s not what ships are made for”.

What’s on your desk? My PQ Award, and all my pink office supplies.

What’s the best thing about where your work? The people I come across – they all have something worth sharing and I love listening/talking.

Where’s your favourite place to go for lunch? I tend to eat a homemade lunch, then go to the

car dealership next door to stare at the luxury cars and talk to the team. It keeps me motivated.

What (or who) can you see when you sit at your desk?

Pretty much everything going on in our open plan office.

What are your favourite websites and why? Google – it has everything I want.

Which websites do you use for work? Google again.

How many hours a week do you spend in meetings? It varies – five hours roughly.

What time do you leave the office? 5.30pm, unless I need to buy something online – then I stay to indulge in some retail therapy.

How do you relax? Watching a Marilyn Monroe movie with a glass of Argentinean Malbec.

What’s your favorite tipple?

Rose champagne.

How often do you take work home? I don’t. I would rather come to work early to get it done.

What is your favourite TV show? I love Frasier, and Doctor Foster, Luther and some cartoons.

Summer or winter? Both.

Pub or club? I prefer bars – I can dance, socialise and stay till late if needed.

Who is your hero? My sister Tiffany Sanya – she is the definition of a go-getter.

If you hadn’t chosen accountancy, where might you be right now? Working with people in any field as a mentor or careers adviser, as I enjoy encouraging, supporting and providing advice and guidance.

news, if there is any, is the fact that the gender pay gap is shrinking.

the new permanent secretary at HMRC. Previously, Thompson (pictured) was doing the same job at the Ministry of Defence, where he worked for seven years.

Thompson started his accountancy career as an AAT and is now a qualified member of CIPFA. He is also a former head of the Government Finance Profession.

In brief Women earn £17k less New research has shown that women in accountancy earn £17,000 less than men. Total remuneration for women stands at an average of £67,680, while men earn £84,970. Men also did better when it comes to their bonus. The average bonus for men was equal to 18.2% of their basic salary; it is 13.9% for women. The only good

New boss at HMRC HMRC has turned to senior Whitehall civil servant and accountant Jon Thompson to replace former boss Lin Homer. He has become

The PQ Book Club: books you should read Brainhack – tips and tricks to unleash your brain’s full potential, by Neil Pavitt (Capstone, £10.99) Stories about computer hacking perpetually make the news headlines and this book shows you how to hack into the world’s most sophisticated computer – your brain. And, as the author explains, unlocking the potential of your brain really can change how you think and act.

This book has plenty of strong points, one of which is its division into 45 ‘bite-sized’ chunks. These are split into five sections: Thinking Smarter; Getting Started; Problem Solving; Idea Generation; and Breaking Through and Innovating. Another is that it is simply full of surprises. Take

the concept of ‘power posing’ (or preening yourself in front of a mirror). It seems ridiculous to think that power posing before an important meeting and acting out like Superman or Wonder Woman could help. But research shows that it does – it increases confidence and banishes nerves. Just don’t let anyone see you doing it!

This book is full of good news, too. Like it’s good to watch cat videos online and eat chocolate. Dark chocolate is a proven stress-buster, while laughing (at anything) really is the best medicine, accoding to the author, who cites plentiful research to back his thesis.

A lot of the advice is plain common sense – point 14 is entitled simply ‘Stop moaning’.

Pavitt explains that while a

small moan can help us deal with more minor stressful situations (like being stuck on the bus), too much moaning can be really bad for us. Apparently, moaning creates the stress hormone cortisol, too much of which can damage the brain’s ability to function properly and even lead to memory loss.

The author kicks off this book by explaining that 95% of all our brain activity is unconsious, meaning that we are only in control of 5% of our brain.

Reading this book can help you take back control and make more use of the old grey matter.

PQ rating 5/5 Easy to read and highly informative, there’s plenty of food for thought here.

31

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PQ jobs pqjobs.co.uk

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TIME TO RUN AWAY TO THE CIRCUS Stuck in a dead-end job as a trainee ledger clerk? Are you, like Billy Bailey, dreaming of running away to become a circus accountant? This is only a storyline you would find in Viz (no. 253)! ‘Big Top Billy’ finally gets the chance to run away to the circus and even meets the Great Wallendo, the most famous circus accountant there has ever been! He is the man who once did a triple entry audit. After a series of disastrous events trainee accountant Billy gets the chance to prepare the books for the VAT man who is due to visit the following day. Viz dedicates a double-paged spread to the story about sundry purchases and we find circus accounting is harder than it looks!

GREAT OUTDOORS THE RIGHT EQUATION In a bold move the Romania football squad changed its squad numbers to mathematical equations ahead of a recent game against Spain. The unusual alteration was part of a national initiative to awaken Romanian children’s interest in maths! At 18%, the Romanian school drop-out rate is one of the highest in the EU.

Chartered accountant Shaney is one of 16 ‘volunteers’ for the US police have third series of ‘The charged accountant Dennis Nicholl with jamming fellow Island with Bear rail travellers’ mobile phones. Using a hand-held device, Grylls’. She says she Nicholl effectively created his own quiet carriage – he was applied for the dubbed by the judge a member of the “cellphone police”. survival show because But creating some peace and quiet could come at a high she feels she hasn’t Inbetweeners’ price as he could face prison for unlawfully interfering with CIPFA Student challenged herself Network’s Chris Will McKenzie a public utility. This isn’t Nicholl first offence – he was physically or Roberts (Simon Bird) charged with a similar one in 2009. emotionally so far.

Her life up to this point has been all People who are genetically fat and short can now blame about studying and their parents for the fact that they aren’t earning as the job. Shaney wants A Pakistani accountancy student employed by much as their taller, slimmer colleagues. Scientists are to prove she is more an Australian 7-Eleven is taking the chain to claiming that men who are short and women who are than just the court, claiming he was paid just 47 overweight lose out financially, irrespective of any social qualification she has cents an hour to work there. His disadvantage. The University of Exeter study found a worked for. The last lawyers said the student was paid man three inches shorter than a colleague will earn time she did anything $325 for 695 hours of work at a £1,500 a year less. Women who are a stone heavier outdoors was a Sydney store. The student, than a colleague earn £1,500 a year less, too. caravan holiday when identified only as Sohail, was in Researcher Professor Tim Frayling felt that the results she was 10! In Australia on a student visa while show a world still obsessed with body image. episode one she completing a diploma in backed up Doctor accounting. 7-Eleven have said they • 23,846 the number • 2098 the year when Alice on the fact that have now implemented a range of measures to of non-existent ‘ghost more people will be it is fine to drink prevent any similar happenings. These include a workers’ the Nigeria dead than alive on dank, stagnant water centralised payroll for all stores and franchises, government removed Facebook, a statistician – cue the throwing more frequent audits and the rolling out of an from its February has calculated. Needs up… electric time-sheet system. payroll, saving $11.5m to get out more…

SEPARATED AT BIRTH

I’M JAMMING

LOSE WEIGHT AND EARN MORE

WHAT IS THE HOURLY RATE AGAIN, COBBER?

PQ BY NUMBERS

’ WEV E

GOT THE L OT

Colour yourself calm

The exams are on the way, so we thought you might need our help to keep calm. Up for grabs are three ‘Colour Yourself Mindfulness’ books, with 100 mandalas and motifs to colour in to help you reduce those stress levels. It really is a chance to find inner calm by colouring in the beautiful artworks by Melissa Launay.

Email graham@pqaccountant.com with your name and address to be in with a chance of winning this giveaway. Head up your email ‘Colour Yourself’.

Backing up with PQ

PQ magazine has put together a handy little pack to help you on your way. We have a PQ memory stick to give away (2GB of memory) along with an HTFT ‘£’ stress reliever and an AIA water bottle and shoulder bag. We will also throw in pack of Accountancy Plus’s ‘Double Entry dominoes to aid revision.

To be in with a chance of being sent this great giveaway send your name and address to graham@pqaccountant.com. Head up your email ‘PQ stress relief’.

Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway entries must be received by Friday 13 May. The main draw will take place on Monday 16 May 2016.

TO ENTER THESE GIVEAWAYS EMAIL GRAHAM@PQACCOUNTANT.COM 34

PQ Magazine May 2016

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