pq magazine january 2015

44
PQ magazine There was more good news on the job front for PQs this month, courtesy of the latest Hays salary and trends survey. The comprehensive survey found that there has been a return to the counter-offer and even double-digit pay rises, for some finance professionals at least. Karen Young, Director of Hays Accountancy & Finance, said that although salary increases aren’t yet widespread, there are definite pockets of very significant rises within accountancy and finance, including part and newly qualified accountants. She revealed that where there simply aren’t enough people to fill the gaps jobseekers often have the pick of two or three jobs. They get snapped up quickly by employers and often then receive a counter offer from their current employer. This can push their salary up even further, whether they decide to stay or go. In some cases, NQs have been offered several thousand pounds to stay. Young emphasised that businesses have said they are now more confident about the year ahead and have plans to take on more staff. This will add to salary pressures. “We expect to see salary growth to take greater hold by the middle of next year,” commented Young. The move to a candidate-driven market has been picked up by accountants who have spotted they can earn more elsewhere and have decided the time is right to make that career move. This could lead to a real fight for talent, stressed Young. She pointed out, however, that accountants rarely move for salary alone – although it is always an important consideration. Alongside the overall improving business confidence, Young felt that changes in legislation and regulation are adding to demand. Payroll specialists are needed to manage pension auto- enrolment and tax experts are sought-after to help navigate new compliance demands. Add to this the demand as companies who have reported in UK GAAP prepare for IFRS conversion from January 2015. This all means that three-quarters of finance employers have awarded pay rises in the past 12 months to staff, and a quarter of these increases were above inflation. These rises have not been limited to London; some of the greatest salary increases for accountancy professionals were in the West Midlands, Northern Ireland and the North East. • See our salary checker – turn to page 34 WIN A GREAT PAIR OF HEADPHONES IN OUR BUMPER ANNUAL QUIZ! January 2015 www.pqmagazine.co.uk / www.pqjobs.co.uk DOUBLE-DIGIT SALARY RISE SPONSORED BY More Success. More BPP. See pages 22 & 23 for more details. Young: ‘businesses are growing in confidence’

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PQ is a free monthly magazine for student accountants, focusing on the ACCA, CIMA, CIPFA, ICAEW and AAT qualifications. It's packed full of study tips, advice and guidance on how to pass accountancy exams, plus careers advice from the experts. PQ is the UK's leading independent accountancy magazine.

TRANSCRIPT

Page 1: PQ magazine January 2015

PQmagazine

There was more good news on the jobfront for PQs this month courtesy ofthe latest Hays salary and trendssurvey

The comprehensive survey found that therehas been a return to the counter-offer and evendouble-digit pay rises for some financeprofessionals at least

Karen Young Director of Hays Accountancy amp Finance said that although salary increasesarenrsquot yet widespread there are definite pocketsof very significant rises within accountancy andfinance including part and newly qualifiedaccountants She revealed that where theresimply arenrsquot enough people to fill the gapsjobseekers often have the pick of two or threejobs They get snapped up quickly by employersand often then receive a counter offer from theircurrent employer This can push their salary upeven further whether they decide to stay or goIn some cases NQs have been offered severalthousand pounds to stay

Young emphasised that businesses have saidthey are now more confident about the yearahead and have plans to take on more staffThis will add to salary pressures ldquoWe expect tosee salary growth to take greater hold by the

middle of next yearrdquo commented YoungThe move to a candidate-driven market has

been picked up by accountants who havespotted they can earn more elsewhere and havedecided the time is right to make that careermove This could lead to a real fight for talentstressed Young She pointed out however thataccountants rarely move for salary alone ndashalthough it is always an important consideration

Alongside the overall improving businessconfidence Young felt that changes in legislationand regulation are adding to demand Payrollspecialists are needed to manage pension auto-enrolment and tax experts are sought-after tohelp navigate new compliance demands Add tothis the demand as companies who havereported in UK GAAP prepare for IFRSconversion from January 2015

This all means that three-quarters of financeemployers have awarded pay rises in the past12 months to staff and a quarter of theseincreases were above inflation These rises havenot been limited to London some of the greatestsalary increases for accountancy professionalswere in the West Midlands Northern Ireland andthe North Eastbull See our salary checker ndash turn to page 34

WIN A GREAT PAIR OFHEADPHONES IN OUR BUMPER ANNUAL QUIZ

January 2015 wwwpqmagazinecouk wwwpqjobscouk

DOUBLE-DIGITSALARY RISE

SPONSORED BY

More Success More BPPSee pages 22 amp 23

for more details

Young lsquobusinesses aregrowing in confidencersquo

pq jan 15 p1_pq july 10 cover-v2 04122014 1340 Page 1

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To register for any of our free events visit

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comment PQ

News06CIMA pass rates datesInstitute names the big day(s)08ACCA exams Centres for theSeptember exams are named102015 syllabus PQs urged toembrace new CIMA qualification

Features etc06Mind your PsampQs Your lettersare held over until next month12PQ visit We took time out tovisit a Pearson Vue exam centrein central London14Bumper Annual Quiz Yes itrsquosthat time of year folks ndash you canwin a pair of top headphones16CIMA exam feedback Ourexperts assess the fairness ndash orotherwise ndash of the recent exams18ACCA F4 exam Take our testand find your knowledge gaps20PQ Awards 2015 Time isrunning out ndash so enter now24Letrsquos get technical Gettingback to basics with a look at taxand personal allowances26AAT pass rates The results arein plus an update on CIPFArsquosapprenticeship scheme27CIMA 2015 syllabus Changesthrow up fresh challenges28ACCA P1 assessed What tolook out for in the GovernanceRisk and Ethics paper30ICAEW focus A report fromthe One Young World convention

31International standards Allyou need to know about IAS 1732Risk management The FRChas made changes to the UKrsquosCorporate Governance Code33Career advice Make your CVstand out and some wise wordsfrom our Agony Aunt34Salary checker So are yougetting paid what you are worth37Careers Deloitte encouragesenterprise life at PwC Nicosiaand our Book Club review42Fun time Drugs donrsquot work thered shoes Boris in hot water inthe US and our great giveaways

The columnistsRobert Bruce Original thinking isneeded now more than ever 6Prem Sikka Learn the lessons ofhistory ndash or pay the price 8Carl Lygo Accountancy is themodel for education funding 10

Subscribe to PQ magazineItrsquos FREE ndash go to page 41 or see

wwwpqmagazinecouk

ABC July 2013ndashJune 2014

32361

Publisherrsquos statement We have adigital issue of the magazine whichis sent to 10133 requested readers

First with the newsCan you believe it ndash our first magazine dated 2015 We have lotsof info about the new CIMA exams set-up inside this one Did

you know for example that the first OT exam pass rates will be released inJuly Or that it will now cost you just over pound1000 to sit all the professionallevel exams Well you do now This month we visited a Pearson Vue examcentre in London pretending to be a PQ to see just what will happen whenthe first exams are taken ndash see page 12 For the record the exams will beavailable from 2 January That doesnrsquot mean we have forgotten about theNovember exams With the results just days away (18 December) we havea jammed-packed two pages on the last-ever November sitting (pages 16)

We were sad to hear Clare Minchington is leaving the ACCA She is allthose things they put in the ad for her replacement (see page 6) TheACCA exams were taking place as we went to press and it seems to haveall kicked off on the first Tuesday of exam week F6 was lsquoawfulrsquo but P4seemed to bring a whole new meaning to student pain Students aredemanding someone to represent their concerns This is a very good ideaThere should be an ACCA student council and we would be the first tosupport that idea There should also be paper reps a student that fellowPQs can complain to who would have direct access to the people whomatter at the ACCA

It was great to see that PQ salaries are on the rise again The latestsurvey from Hays says some NQs are getting double-digit salary rises in theform of counter-offers If you want to see what you should be getting paidthen turn to page 34

Donrsquot forget to get your entries in to us for the PQ awards We haveextended the deadline to Friday 9 January But that really is it ndash judgingtakes place the following week

Finally a big thanks to the professional bodies who sponsored ourannual quiz We have four pairs of fantastic Sennheiser headphones togiveaway (page 14) Good luck

Graham Hambly PQ magazine editor (grahampqaccountantcom)

CONTENTS January 2015

SYLLABUS ADVICE

WEBINAR

EXAM FORUM

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Post any questions

you have about your

exam results or what to

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Wersquore running

a series of open days

both in centres and

via Live Online

so there will be a date

and time to suit you

Join one of our live

sessions to find out

what you should

do once you receive

your exam results

Join our FREE events to help you choose the best course options for you

dagger Customer support team will be closed on 25th Dec 26th Dec and 1st Jan

To qualify for the Lifetime Pass Guarantee certain criteria must be met TampCs apply See website for details

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PQ magazine Fourth floor Central House 142 Central Street London EC1V 8AR | Phone 020 7216 6444 | Email grahampqaccountantcomWebsite wwwpqmagazinecouk | Editorpublisher Graham Hambly grahampqaccountantcom | Advertising manager Polly Thrasivoulou pollypqaccountantcom

Associate editor Adam Riches | Art editor Tim Parker | Subscriptions dompqaccountantcom | Contributors Robert Bruce Prem Sikka Tony Kelly Phil Gammon Jo Daley Richard Heaton | Origination and print services by Classified Central Media

Published by PQ Publishing copy PQ Publishing 2014

If you have any problems with delivery or if you want to change your delivery address please email dompqaccountantcom

lsquoDM failrsquo forTwitter CFOItrsquos what we all dread ndash pressing thesend button on a tweet that shouldhave been a directmessage The lsquoDMfailrsquo can lead to realembarrassment andridicule but imaginewhat sort of pressyou would get if you were the CFOof the social network Twitter and youdid it Anthony Noto who joinedTwitter this year as its finance chieftweeted a message about a takeoverdeal which was obviously intendedfor private eyes only Notorsquos tweetread ldquoI still think we should buythem He is on your schedule forDec 15helliprdquo and was quicklydeleted But the post had alreadybeen captured by an eagle-eyedjournalist

CIMA has told PQ magazine that itwill publish the pass rates of itsnew online OT exams (there arenine of them) sometime in July2015 It feels that the pass rateswill be more meaningful after acritical mass of students have satthe tests

Thereafter however it ispromising to publish pass ratesevery three months to coincidewith the case study results

The OT exams themselves will beavailable from 2 January and CIMAwill be keenly looking to see theuptake

CIMArsquos director of learning PeterStewart reiterated that the casestudy exams will remain at fourtimes a year ndash in February May

August and November The plan isto offer the operational exams inweek two of the monthmanagement in week three and

CIMA PASS RATE DATES

One of the more bizarre aspects ofbusiness is that whenever the Britishpublic is asked which businessperson they most admire they giveRichard Branson as their answerThere is a deeper problem here thanthe collective view that a beardedself-publicist is seen as epitomisingbusiness The public knows andunderstands too little of businessAnd what they think they know tendsto be clicheacute

Take the recruitment of companyboards The clicheacute is that it is allcronyism nepotism and old-schoolconnections And it can be But timeshave changed and people havenrsquotnoticed I was talking recently to thehead of a thriving young businessand was surprised at their choice ofchairman a man who journalistswould describe as a serialentrepreneur How did they find himThe truth was far stranger than theperceived clicheacute

One evening the bright young guywho runs the business was outvolunteering delivering food to thehomeless Late in the evening a fightbroke out among some roughsleepers And the door of the houseopposite opened and someone cameout to help break it up They all gottalking It transpired that thepeacemaker was involved in manybusiness start-ups Our youngvolunteer described his business Itstruck a chord As a result theyrealised they had found the chairmanthey needed

The business is now expandinghappily with confidence andcommon-sense all around It isexactly how these things ought tohappen And to be fair it is verysimilar to how it all happened in thepast Like-minded people meetrealise they share each otherrsquosvalues are enthusiastic about how totake a business forward and thenpool their ideas and resources to doso But it couldnrsquot be further from theidea of the old-school tie

ROBERTBRUCEUK publicshould lookbeyond theclicheacutes

Robert Bruce is an award-winning writer onaccountancy for The Times

strategic in week four Theexception will be FebruaryMarchwhen CIMA will offer everything twoweeks later

There will be five different casestudies (in terms of lsquounseenrsquotriggers and tasks but they all havea single common pre-seen)Students will then be assigned theircase randomly in the test centre

CIMA has also released anapproved calculator list for the firsttime (see page 18 for the full list)

So how much will all this costWell the OTs come in at pound70 apop The first two case studies costpound115 each with the final casestudy priced at pound175 That meansit will cost just over pound1000 to sit allthe professional level exams

Minchington to leave the ACCAThe ACCA is looking for a new executivedirector strategy and development afterClare Minchington announced she isleaving the association after 15 yearsservice Minchington (pictured) willdepart in March 2015 and told PQ thatshe plans to build a portfolio of non-executive audit committee work Her aimis to lsquobe therersquo for her son who has just

started school Minchingtonrsquos role wasadvertised in early November in TheSunday Times

We are told that the successfulcandidate needs to be ldquoof outstandingintellectual calibre with an exceptionaltrack record of leadership managementand innovation in a relevant fieldrdquo

She will be missed by PQ magazine

Stewart four case study sittings

PQ jan 15 p6 ccm_pq aprl08 p04 04122014 1343 Page 1

We have combined Taught Revision and Exam Practicehelliphellipand we are so confident that all our 2015 CIMA

programmes are Lifetime Pass Assured guaranteed

To book your CIMA 2015 programme

visit bppcomcima or call 03331 221 296^

Full terms and conditions apply wwwbppcomtermsllifetime-pass-assurance The new Lifetime Pass Assurance Scheme does not apply to course purchases made before 24th November 2014 and

cannot be used in conjunction with any other ofer or promotion run by any BPP group company No cash alternative available Full terms and conditions apply wwwbppcomtermslprofessional-

development-courses To qualify for ten Professional Development courses with BPP Professional Education Limited (ldquoBPP PErdquo) free of charge two CIMA papers must be booked at the same time Only

certain online Professional Development Courses apply Full terms and conditions apply wwwbppcomtermslbpp-payment-plan The BPP Payment Plan is only available when purchasing applicable

ACCA and CIMA courses The BPP Payment Plan is ofered subject to availability and acceptance of your application for the BPP Payment Plan is at the sole discretion of BPP deg 81 is the average pass rate

for students that booked through BPPrsquos Pass Ready Solution sitting Operational Management and Strategic papers in the May 2014 exams ^ Calls charged at local rates

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Support and guidance from our expert tutors and Programme Advisors

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Flexibility to control your own progression

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Approved CIMA Learning Quality Partner

007_PQ 0115_PQ 1209 000 02122014 1428 Page 7

8 PQ Magazine January 2015

PQ news

The ACCA has unveiled the 30centres it will be using for theSeptember 2015 exams ndash the first-ever lsquoadditional exam sessionrsquo

The countries due to offer theexams are the UK IrelandVietnam Kenya Ghana ZambiaMauritius Uganda ZimbabweNigeria China and Malaysia

The ACCA has said that nextSeptemberrsquos exams should givesome of its larger markets theopportunity to use this new sessionIt also means around 25 of ACCAstudents will be able to chose to sitin September

But where asked one top tutorwere the centres in PakistanSingapore the Middle East orEastern Europe He said ldquoIf theACCA wants it to be a trueopportunity for all its markets to testthe water then instead of offeringfour chances to sit the exams inScotland and five in Malaysia it

would seem logical to offer at leastone centre in Pakistanrdquo

The exam timetables will alsochange from September 2015 Theexams will run over a week ratherthan the current eight days So forexample the September 2015exams run from Monday 7 to Friday

11 PQs will be able to sit theDecember 2015 exams from 7 to 11 December

The full list of cities where theACCA is offering the September2015 sessionbull Ireland Cork Dublinbull UK Aberdeen BelfastBirmingham Cardiff DundeeEdinburgh Glasgow LeedsLondon Manchester Newcastlebull Vietnam Ho Chi Minh Citybull Kenya Nairobibull Ghana Accrabull Zambia Lusakabull Mauritius Mauritiusbull Uganda Kampalabull Zimbabwe Hararebull Nigeria Lagosbull China Beijing GuangzhoNanjing Shanghaibull Malaysia Federal Territory JohorBahru Kuching Pulau PinangSelangor

CIPFA choses partner

ACCA unveils Septembercentres for 2015 exams

New interim requirementsThe Financial Reporting

Council (FRC) has issued exposuredraft FRED 56 Draft FRS 104Interim Financial reporting whichwill revise the FRCrsquos existingguidance on interim financialreports for consistency with newUK and Irish GAAP (FRS 102) Thecouncil is also proposing towithdraw the Reporting StatementlsquoPreliminary announcementsrsquo

MIA and ACCA sign MoUThe Malaysian Institute of

Accountants (MIA) and the ACCAhave signed a memorandum ofunderstanding (MoU) which willresult in them working together todevelop the profession inMalaysia and the widerregion The ACCA has alsoagreed to offer exemptionsfor nine papers from theACCA qualification (F1 ndashF9) to eligible MIAmembers with initial registrationand exemption fees waived Thisspecial pathway is in force for threeyears from the date of signing

BDO redundanciesBDO is reportedly cutting

20 of its restructuring workforcebecause of the slowdown in

companyfailures Thefirm whichmerged withPKF last year isnow consultingon some 50

redundancies across its 20 or soUK offices A BDO spokesmansaid ldquoThe volume of insolvencyassignments has reduced and we

see no likelihood of this increasingin the foreseeable futurerdquo

Giveaway winnersWell done ACCA PQ Graeme

Gorthy He was the winner of ourholiday competition in conjunctionwith Home Learning College And thewinners of the ever-so-popularspecial edition Canon calculatorswere Jonathan Adams ChandniBansal Doreen Clarke Jeremy Davisand James Swoden Remember tocheck wwwpqmagazinecouk forthe list of all the giveaway winners

In brief

CIPFA has unveiled Calibrand as its officiale-assessment partner for the institutersquosnew-look professional qualification (PQ)

Through the partnership online methodsof assessment will be made available tostudents worldwide who are training fortheir CIPFA PQ providing a flexible routeinto the profession

Fully operational from 2016 Calibrandwill be responsible for implementing thesoftware globally as part of a five-year contract

CIPFArsquos Adrian Pulham said that CIPFA chose Calibrand becauseit provided the best overall solution to the challenges the institutefaces as it expands globally He explained ldquoWe are confident thatthey will deliver an excellent service to CIPFA and those studyingwith us We are particularly confident in their delivery as theirmarking essay and case-study exam solutions fitted very closelywith our existing methodologyrdquo

In every decade since the 1970s theUK has had a financial crisis The1970s had a secondary banking crashthat spread to the insurance and theproperty sector The state bailed themall out This was followed by a crisiscaused by the collapse of JonsonMatthey Barlow Clowes and frauds atLloydrsquos of London The 1990s exposedfraud at BCCI and Barings

The same story continued into thenew millennium Banks boasting auditcommittees ethics committees andeminent accounting firms as auditorswere bailed out within days ofreceiving unqualified audit opinionsLehman Brothers and Bear Stearnswent to the wall The troubles at theCo-op Bank are yet to be resolved

Yet business executives collectedlarge remuneration packets auditorscollected fees and taxpayers pickedup the bailout bills The accountancyprofession has been adept at tweakingaccounting and auditing standardscodes of ethics and disciplinaryarrangements that have delivered solittle Corporate governance codeshave hardly improved governanceRepeated fines on audit firms andbanks only show how ineffectiveprevious reforms have been This stateof affairs continues because thecorporate interests responsible for thecrisis have colonised publicpolicymaking bodies Reducing theirinfluence on public policymaking is anecessary condition for effectivereforms but remains a distantpossibility Those who fail to learnfrom history are doomed to repeat it

PREMSIKKA

Learn fromhistory ndash orpay theprice

Prem Sikka is professor of accountancy at theUniversity of Essex

lsquoBomb plotrsquo foiledAAT students attending NewcastleCollege were recently told to lsquoattend thecollege as usualrsquo as news filter out of afoiled bomb plot In early Novemberpolice revealed that a plot to causelsquoserious harmrsquo had been prevented Ateenager Liam Lyburd was arrestedafter homemade explosives werediscovered at a house in Hamilton PlaceNewcastle

Northumbria Police stated that it wasconfident intent to cause serious harm atNewcastle College has been prevented

Principal Carole Kitching stressed ldquoIwould like to reassure staff studentsand their families that their safety hasbeen paramount to us and the collegeremains a safe place to studyrdquo

Adrian Pulham

pq jan 15 p8 ccm_pq sept 12 p08 04122014 1342 Page 8

ONLINE ACCA COURSES DESIGNED BY INDUSTRY EXPERTS

ACCESSIBLE 247

GLOBAL LIVE ONLINE TUITION AND REVISION SESSIONS

Congratulationson completing your ACCA exam

wwwstudyinteractiveorgPQ 020 3535 1274

TampCs apply 52$)342$-2+)234ř2$amp)34$2$)4($ŘŘ4($2542)$3Řor full terms and conditions6)3)4 wwwstudyinteractiveorgterms-and-conditions

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009_PQ 0115_PQ 1209 000 01122014 1359 Page 7

10 PQ Magazine January 2015

PQ news

I am a first-generation graduate froma working-class backgroundeducated at a comprehensive schoolin my home town of Doncaster Ibenefited from free school meals anda full university grant that covered mytuition and maintenance fees The factthat I am now the Vice-Chancellor ofBPP University is testament to theUKrsquos commitment to upward mobility

But much has changed in the pastthree decades loans replaced grantsas the number of people accessinghigher education grew Now theHigher Education Commission hasmade 16 recommendations to helpsafeguard the financial sustainabilityof UK higher education At the heart ofits analysis is the conclusion that thestudent loan system is financiallyunsustainable current projections arethat for every pound1 lent 45p will not bepaid back the student loan book isset to grow from pound46bn to pound330bnbetween 2013 and 2044 TheDepartment of BIS Select Committeeand the Public Accounts Committeehave all questioned the viability of theloans scheme Universities arelobbying for the current fees cap ofpound9000 a year to be lifted so they cancharge students even more FormerEducation Secretary Charles Clarkehas called for the repayment thresholdto be reduced to pound15000 ndash from thecurrent pound21000 ndash to ensure moreloans are repaid and to incentiviseearly repayment

It strikes me that the accountingprofession with its-earn-while-you-learn routes from AATCAT upwards isa model of how higher education canbe both relevant and affordable It issomething that policy makers are nowrevisiting as a way forward for thenext generation

CARLLYGO

Accountancyoffers modelfor fundingof education

Professor Carl Lygo ischief executive of BPP

Shocked and angry P4 ACCAexam sitters leaving theDecember sitting wondered ifthey have been studying thewrong syllabus material Theirupset was clear as oneclaimed the examiner waslooking for lsquosuper humansrsquo topass this paper The upsetwas so tangible that manypleaded for the return of the oldexaminer

The real problem appears to beQ1 which many PQs are claiming isgetting harder and harder at eachsitting ldquoIt was the hardest exam ofmy liferdquo said one sitter

Students were concerned that theexam bore no reflection to any of thepractice questions they had sat Thesacrifices they had made all seemedworthless said several sitters Theyare now wondering who protectsthem from unfair exams and

examiners As one put it ldquoThereshould be someone representingstudentsrsquo concernsrdquo

F6 was another paper that stoodout early in week one of theDecember sitting Q2 on corporatetax liability was the nightmare herefor many

Meanwhile F5 sitters found theexam lsquofairrsquo and the P7 exam timepressured One student felt P7 wasthe least lsquoauditrsquo paper they had seenfor some timebull Go to wwwpqmagazinecouk seewhat students thought of the otherpapers We will also have feedbackfrom tutors in our next issue

Embrace CIMArsquos brave new world

lsquoSuper humansrsquo needed

Itrsquos time for CIMA PQs to forget aboutlsquocore areasrsquo and lsquoexam tipsrsquo and embracethe brave new world of the 2015 syllabussays HTFTrsquos Vicky Taylor A packed jointCIMAHTFT seminar in Birminghamrecently heard about what really liesahead ndash warts and all

Taylor stressed the first thing to put tobed was the fact that these new multiplechoice tests will be easier She pointedout that the 2015 CIMA student will betested on every component of the learningoutcomes ndash they can forget about getting qualified byonly getting half right The pass rate for the new OTs is

70 and it is 60 for the case studiesTaylor felt the key to success in the new

set up is a combination of mastering andself-motivation stressing ldquoDonrsquot gettrapped on lsquosomeday islandrsquo because thatwill mean you will be a lsquosomedayrsquo qualifiedaccountantrdquo

Taylor talked through the importance ofgetting into a routine mastering onelearning outcome (reward yourself fordoing so) and then moving onto the next

CIMA PQs have to learn to fightcomplacency and understand the importance ofmastering their own destiny she said

CIPFArsquos Ireland launchCIPFA strengthened its base

in Ireland with the launch of CIPFAIreland in early December It willwork to improve the performanceof public sector organisations andto support the Irish government

Contributing to UK plcTraining graduates and

apprentices to gain accounting

qualifications at PwC generatesfuture benefits for the UK of pound188ma year says the Big 4 firm Thisvaluation is part of PwCrsquos secondannual review of its total economicsocial tax and environmentalcontribution estimated at pound412bnin 2013-14 or pound157m per dayOver 1130 people joined PwC thisyear to complete professionalqualifications

CIMA connecting with PQsCIMA has launched an online

community platform for its PQs ndashCIMAconnect This it hopes willserve as a one-stop shop for allstudent needs It will containrelevant study and exam materialwhile also giving students a socialmedia functionality The site willaward badges to students as theyprogress through their qualification

In brief

E3 was an improvement onthe diabolical one set inMay but why does the paperexamine peripheral ratherthan mainstream areas asksone expert in our CIMANovember exam feedback

The questions wereclearer this time aroundsaid the tutor but the examinertends to pick dated models ratherthan the current syllabus-relatedversions Students will have neededto muddle through with theunderstanding that everyone else

was in the same boat a scantconsolation

Pass rates at P2 might alsobe low as many sittersstruggled with questions 2 56 and 7 Students admittedthey were frustrated with Q6and Q7 PQs are hoping thatthe institute take these

frustrations into account whenmarking the paperbull Not all tutors agreed with theabove comments For acomprehensive paper-by-paperrundown turn to page 16

November exam feedback

As part of its ongoing examtransformation plans the ACCA hasnow made its F4 (ENG) and F4(GLO) exams available as on-demand computer-based exams

F4 joins the ACCArsquos suite of CBEexams ndash F1 F2 and F3 The F4paper has changed in both its CBEand paper versions The exam willnow be two hours long and containnew types of questions that testPQsrsquo knowledge on scenarios froma number of different angles

The association wants to ensurethe new-look exam reflects todayrsquosbusiness environment meaningstudents will be better equippedwith the right skills to help them inthe workplace

The ACCA has also revealed thatit will be offering a September 2015sitting in some of its larger marketsThis includes key cities in the UKFrom 2016 it will be offering fourexam sessions a year in all of itsmarkets

Taylor donrsquot get trapped

F4 availableon demand

PQ jan 15 p-10_pq sept 12 p08 04122014 0941 Page 8

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for BA(Hons)

011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

LCA Business School London 19 Charterhouse Street London EC1N 6RA

Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

Speak to a personal

course advisor on

020 7400 6772

or enrol with us on-line

wwwlcaangliaacuk

Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

TUESDAY 10th FEBRUARY 2015

TUESDAY 17th FEBRUARY 2015

TUESDAY 24th FEBRUARY 2015t COME ALONG AND MEET OUR LECTURERS

t ENROL ON OUR OPEN DAYS AND

GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

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DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Surname

Company name

Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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WITH LSBF MANCHESTER

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Start dates JanFeb 2015

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Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

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STUDY ACCACIMAIN BIRMINGHAM WITH FBT

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
  • LowRes042_PQ 0115
  • LowRes043_PQ 0115
  • LowRes044_PQ 0115
Page 2: PQ magazine January 2015

KaplanCIMA 2015

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NEW

NOW AVAILABLE

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NT

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TRAINING CENTR

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ICIA

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EXAM PRACTIC

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CR

EA

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To register for any of our free events visit

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002_PQ 0115_PQ 1209 000 27112014 1514 Page 7

comment PQ

News06CIMA pass rates datesInstitute names the big day(s)08ACCA exams Centres for theSeptember exams are named102015 syllabus PQs urged toembrace new CIMA qualification

Features etc06Mind your PsampQs Your lettersare held over until next month12PQ visit We took time out tovisit a Pearson Vue exam centrein central London14Bumper Annual Quiz Yes itrsquosthat time of year folks ndash you canwin a pair of top headphones16CIMA exam feedback Ourexperts assess the fairness ndash orotherwise ndash of the recent exams18ACCA F4 exam Take our testand find your knowledge gaps20PQ Awards 2015 Time isrunning out ndash so enter now24Letrsquos get technical Gettingback to basics with a look at taxand personal allowances26AAT pass rates The results arein plus an update on CIPFArsquosapprenticeship scheme27CIMA 2015 syllabus Changesthrow up fresh challenges28ACCA P1 assessed What tolook out for in the GovernanceRisk and Ethics paper30ICAEW focus A report fromthe One Young World convention

31International standards Allyou need to know about IAS 1732Risk management The FRChas made changes to the UKrsquosCorporate Governance Code33Career advice Make your CVstand out and some wise wordsfrom our Agony Aunt34Salary checker So are yougetting paid what you are worth37Careers Deloitte encouragesenterprise life at PwC Nicosiaand our Book Club review42Fun time Drugs donrsquot work thered shoes Boris in hot water inthe US and our great giveaways

The columnistsRobert Bruce Original thinking isneeded now more than ever 6Prem Sikka Learn the lessons ofhistory ndash or pay the price 8Carl Lygo Accountancy is themodel for education funding 10

Subscribe to PQ magazineItrsquos FREE ndash go to page 41 or see

wwwpqmagazinecouk

ABC July 2013ndashJune 2014

32361

Publisherrsquos statement We have adigital issue of the magazine whichis sent to 10133 requested readers

First with the newsCan you believe it ndash our first magazine dated 2015 We have lotsof info about the new CIMA exams set-up inside this one Did

you know for example that the first OT exam pass rates will be released inJuly Or that it will now cost you just over pound1000 to sit all the professionallevel exams Well you do now This month we visited a Pearson Vue examcentre in London pretending to be a PQ to see just what will happen whenthe first exams are taken ndash see page 12 For the record the exams will beavailable from 2 January That doesnrsquot mean we have forgotten about theNovember exams With the results just days away (18 December) we havea jammed-packed two pages on the last-ever November sitting (pages 16)

We were sad to hear Clare Minchington is leaving the ACCA She is allthose things they put in the ad for her replacement (see page 6) TheACCA exams were taking place as we went to press and it seems to haveall kicked off on the first Tuesday of exam week F6 was lsquoawfulrsquo but P4seemed to bring a whole new meaning to student pain Students aredemanding someone to represent their concerns This is a very good ideaThere should be an ACCA student council and we would be the first tosupport that idea There should also be paper reps a student that fellowPQs can complain to who would have direct access to the people whomatter at the ACCA

It was great to see that PQ salaries are on the rise again The latestsurvey from Hays says some NQs are getting double-digit salary rises in theform of counter-offers If you want to see what you should be getting paidthen turn to page 34

Donrsquot forget to get your entries in to us for the PQ awards We haveextended the deadline to Friday 9 January But that really is it ndash judgingtakes place the following week

Finally a big thanks to the professional bodies who sponsored ourannual quiz We have four pairs of fantastic Sennheiser headphones togiveaway (page 14) Good luck

Graham Hambly PQ magazine editor (grahampqaccountantcom)

CONTENTS January 2015

SYLLABUS ADVICE

WEBINAR

EXAM FORUM

QampAOPEN DAY

+44 (0)1908 540 069

cimaadvicekaplancouk

Post any questions

you have about your

exam results or what to

do next via our Twitter

or Facebook page and

wersquoll answer them all

Wersquore running

a series of open days

both in centres and

via Live Online

so there will be a date

and time to suit you

Join one of our live

sessions to find out

what you should

do once you receive

your exam results

Join our FREE events to help you choose the best course options for you

dagger Customer support team will be closed on 25th Dec 26th Dec and 1st Jan

To qualify for the Lifetime Pass Guarantee certain criteria must be met TampCs apply See website for details

PQ jan 15 p3_pq aprl08 p04 04122014 0938 Page 1

OUR CIMA PARTndashTIME

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004-005_PQ 0115_PQ 1209 000 28112014 0955 Page 7

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PQ magazine Fourth floor Central House 142 Central Street London EC1V 8AR | Phone 020 7216 6444 | Email grahampqaccountantcomWebsite wwwpqmagazinecouk | Editorpublisher Graham Hambly grahampqaccountantcom | Advertising manager Polly Thrasivoulou pollypqaccountantcom

Associate editor Adam Riches | Art editor Tim Parker | Subscriptions dompqaccountantcom | Contributors Robert Bruce Prem Sikka Tony Kelly Phil Gammon Jo Daley Richard Heaton | Origination and print services by Classified Central Media

Published by PQ Publishing copy PQ Publishing 2014

If you have any problems with delivery or if you want to change your delivery address please email dompqaccountantcom

lsquoDM failrsquo forTwitter CFOItrsquos what we all dread ndash pressing thesend button on a tweet that shouldhave been a directmessage The lsquoDMfailrsquo can lead to realembarrassment andridicule but imaginewhat sort of pressyou would get if you were the CFOof the social network Twitter and youdid it Anthony Noto who joinedTwitter this year as its finance chieftweeted a message about a takeoverdeal which was obviously intendedfor private eyes only Notorsquos tweetread ldquoI still think we should buythem He is on your schedule forDec 15helliprdquo and was quicklydeleted But the post had alreadybeen captured by an eagle-eyedjournalist

CIMA has told PQ magazine that itwill publish the pass rates of itsnew online OT exams (there arenine of them) sometime in July2015 It feels that the pass rateswill be more meaningful after acritical mass of students have satthe tests

Thereafter however it ispromising to publish pass ratesevery three months to coincidewith the case study results

The OT exams themselves will beavailable from 2 January and CIMAwill be keenly looking to see theuptake

CIMArsquos director of learning PeterStewart reiterated that the casestudy exams will remain at fourtimes a year ndash in February May

August and November The plan isto offer the operational exams inweek two of the monthmanagement in week three and

CIMA PASS RATE DATES

One of the more bizarre aspects ofbusiness is that whenever the Britishpublic is asked which businessperson they most admire they giveRichard Branson as their answerThere is a deeper problem here thanthe collective view that a beardedself-publicist is seen as epitomisingbusiness The public knows andunderstands too little of businessAnd what they think they know tendsto be clicheacute

Take the recruitment of companyboards The clicheacute is that it is allcronyism nepotism and old-schoolconnections And it can be But timeshave changed and people havenrsquotnoticed I was talking recently to thehead of a thriving young businessand was surprised at their choice ofchairman a man who journalistswould describe as a serialentrepreneur How did they find himThe truth was far stranger than theperceived clicheacute

One evening the bright young guywho runs the business was outvolunteering delivering food to thehomeless Late in the evening a fightbroke out among some roughsleepers And the door of the houseopposite opened and someone cameout to help break it up They all gottalking It transpired that thepeacemaker was involved in manybusiness start-ups Our youngvolunteer described his business Itstruck a chord As a result theyrealised they had found the chairmanthey needed

The business is now expandinghappily with confidence andcommon-sense all around It isexactly how these things ought tohappen And to be fair it is verysimilar to how it all happened in thepast Like-minded people meetrealise they share each otherrsquosvalues are enthusiastic about how totake a business forward and thenpool their ideas and resources to doso But it couldnrsquot be further from theidea of the old-school tie

ROBERTBRUCEUK publicshould lookbeyond theclicheacutes

Robert Bruce is an award-winning writer onaccountancy for The Times

strategic in week four Theexception will be FebruaryMarchwhen CIMA will offer everything twoweeks later

There will be five different casestudies (in terms of lsquounseenrsquotriggers and tasks but they all havea single common pre-seen)Students will then be assigned theircase randomly in the test centre

CIMA has also released anapproved calculator list for the firsttime (see page 18 for the full list)

So how much will all this costWell the OTs come in at pound70 apop The first two case studies costpound115 each with the final casestudy priced at pound175 That meansit will cost just over pound1000 to sit allthe professional level exams

Minchington to leave the ACCAThe ACCA is looking for a new executivedirector strategy and development afterClare Minchington announced she isleaving the association after 15 yearsservice Minchington (pictured) willdepart in March 2015 and told PQ thatshe plans to build a portfolio of non-executive audit committee work Her aimis to lsquobe therersquo for her son who has just

started school Minchingtonrsquos role wasadvertised in early November in TheSunday Times

We are told that the successfulcandidate needs to be ldquoof outstandingintellectual calibre with an exceptionaltrack record of leadership managementand innovation in a relevant fieldrdquo

She will be missed by PQ magazine

Stewart four case study sittings

PQ jan 15 p6 ccm_pq aprl08 p04 04122014 1343 Page 1

We have combined Taught Revision and Exam Practicehelliphellipand we are so confident that all our 2015 CIMA

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To book your CIMA 2015 programme

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Full terms and conditions apply wwwbppcomtermsllifetime-pass-assurance The new Lifetime Pass Assurance Scheme does not apply to course purchases made before 24th November 2014 and

cannot be used in conjunction with any other ofer or promotion run by any BPP group company No cash alternative available Full terms and conditions apply wwwbppcomtermslprofessional-

development-courses To qualify for ten Professional Development courses with BPP Professional Education Limited (ldquoBPP PErdquo) free of charge two CIMA papers must be booked at the same time Only

certain online Professional Development Courses apply Full terms and conditions apply wwwbppcomtermslbpp-payment-plan The BPP Payment Plan is only available when purchasing applicable

ACCA and CIMA courses The BPP Payment Plan is ofered subject to availability and acceptance of your application for the BPP Payment Plan is at the sole discretion of BPP deg 81 is the average pass rate

for students that booked through BPPrsquos Pass Ready Solution sitting Operational Management and Strategic papers in the May 2014 exams ^ Calls charged at local rates

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007_PQ 0115_PQ 1209 000 02122014 1428 Page 7

8 PQ Magazine January 2015

PQ news

The ACCA has unveiled the 30centres it will be using for theSeptember 2015 exams ndash the first-ever lsquoadditional exam sessionrsquo

The countries due to offer theexams are the UK IrelandVietnam Kenya Ghana ZambiaMauritius Uganda ZimbabweNigeria China and Malaysia

The ACCA has said that nextSeptemberrsquos exams should givesome of its larger markets theopportunity to use this new sessionIt also means around 25 of ACCAstudents will be able to chose to sitin September

But where asked one top tutorwere the centres in PakistanSingapore the Middle East orEastern Europe He said ldquoIf theACCA wants it to be a trueopportunity for all its markets to testthe water then instead of offeringfour chances to sit the exams inScotland and five in Malaysia it

would seem logical to offer at leastone centre in Pakistanrdquo

The exam timetables will alsochange from September 2015 Theexams will run over a week ratherthan the current eight days So forexample the September 2015exams run from Monday 7 to Friday

11 PQs will be able to sit theDecember 2015 exams from 7 to 11 December

The full list of cities where theACCA is offering the September2015 sessionbull Ireland Cork Dublinbull UK Aberdeen BelfastBirmingham Cardiff DundeeEdinburgh Glasgow LeedsLondon Manchester Newcastlebull Vietnam Ho Chi Minh Citybull Kenya Nairobibull Ghana Accrabull Zambia Lusakabull Mauritius Mauritiusbull Uganda Kampalabull Zimbabwe Hararebull Nigeria Lagosbull China Beijing GuangzhoNanjing Shanghaibull Malaysia Federal Territory JohorBahru Kuching Pulau PinangSelangor

CIPFA choses partner

ACCA unveils Septembercentres for 2015 exams

New interim requirementsThe Financial Reporting

Council (FRC) has issued exposuredraft FRED 56 Draft FRS 104Interim Financial reporting whichwill revise the FRCrsquos existingguidance on interim financialreports for consistency with newUK and Irish GAAP (FRS 102) Thecouncil is also proposing towithdraw the Reporting StatementlsquoPreliminary announcementsrsquo

MIA and ACCA sign MoUThe Malaysian Institute of

Accountants (MIA) and the ACCAhave signed a memorandum ofunderstanding (MoU) which willresult in them working together todevelop the profession inMalaysia and the widerregion The ACCA has alsoagreed to offer exemptionsfor nine papers from theACCA qualification (F1 ndashF9) to eligible MIAmembers with initial registrationand exemption fees waived Thisspecial pathway is in force for threeyears from the date of signing

BDO redundanciesBDO is reportedly cutting

20 of its restructuring workforcebecause of the slowdown in

companyfailures Thefirm whichmerged withPKF last year isnow consultingon some 50

redundancies across its 20 or soUK offices A BDO spokesmansaid ldquoThe volume of insolvencyassignments has reduced and we

see no likelihood of this increasingin the foreseeable futurerdquo

Giveaway winnersWell done ACCA PQ Graeme

Gorthy He was the winner of ourholiday competition in conjunctionwith Home Learning College And thewinners of the ever-so-popularspecial edition Canon calculatorswere Jonathan Adams ChandniBansal Doreen Clarke Jeremy Davisand James Swoden Remember tocheck wwwpqmagazinecouk forthe list of all the giveaway winners

In brief

CIPFA has unveiled Calibrand as its officiale-assessment partner for the institutersquosnew-look professional qualification (PQ)

Through the partnership online methodsof assessment will be made available tostudents worldwide who are training fortheir CIPFA PQ providing a flexible routeinto the profession

Fully operational from 2016 Calibrandwill be responsible for implementing thesoftware globally as part of a five-year contract

CIPFArsquos Adrian Pulham said that CIPFA chose Calibrand becauseit provided the best overall solution to the challenges the institutefaces as it expands globally He explained ldquoWe are confident thatthey will deliver an excellent service to CIPFA and those studyingwith us We are particularly confident in their delivery as theirmarking essay and case-study exam solutions fitted very closelywith our existing methodologyrdquo

In every decade since the 1970s theUK has had a financial crisis The1970s had a secondary banking crashthat spread to the insurance and theproperty sector The state bailed themall out This was followed by a crisiscaused by the collapse of JonsonMatthey Barlow Clowes and frauds atLloydrsquos of London The 1990s exposedfraud at BCCI and Barings

The same story continued into thenew millennium Banks boasting auditcommittees ethics committees andeminent accounting firms as auditorswere bailed out within days ofreceiving unqualified audit opinionsLehman Brothers and Bear Stearnswent to the wall The troubles at theCo-op Bank are yet to be resolved

Yet business executives collectedlarge remuneration packets auditorscollected fees and taxpayers pickedup the bailout bills The accountancyprofession has been adept at tweakingaccounting and auditing standardscodes of ethics and disciplinaryarrangements that have delivered solittle Corporate governance codeshave hardly improved governanceRepeated fines on audit firms andbanks only show how ineffectiveprevious reforms have been This stateof affairs continues because thecorporate interests responsible for thecrisis have colonised publicpolicymaking bodies Reducing theirinfluence on public policymaking is anecessary condition for effectivereforms but remains a distantpossibility Those who fail to learnfrom history are doomed to repeat it

PREMSIKKA

Learn fromhistory ndash orpay theprice

Prem Sikka is professor of accountancy at theUniversity of Essex

lsquoBomb plotrsquo foiledAAT students attending NewcastleCollege were recently told to lsquoattend thecollege as usualrsquo as news filter out of afoiled bomb plot In early Novemberpolice revealed that a plot to causelsquoserious harmrsquo had been prevented Ateenager Liam Lyburd was arrestedafter homemade explosives werediscovered at a house in Hamilton PlaceNewcastle

Northumbria Police stated that it wasconfident intent to cause serious harm atNewcastle College has been prevented

Principal Carole Kitching stressed ldquoIwould like to reassure staff studentsand their families that their safety hasbeen paramount to us and the collegeremains a safe place to studyrdquo

Adrian Pulham

pq jan 15 p8 ccm_pq sept 12 p08 04122014 1342 Page 8

ONLINE ACCA COURSES DESIGNED BY INDUSTRY EXPERTS

ACCESSIBLE 247

GLOBAL LIVE ONLINE TUITION AND REVISION SESSIONS

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TampCs apply 52$)342$-2+)234ř2$amp)34$2$)4($ŘŘ4($2542)$3Řor full terms and conditions6)3)4 wwwstudyinteractiveorgterms-and-conditions

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009_PQ 0115_PQ 1209 000 01122014 1359 Page 7

10 PQ Magazine January 2015

PQ news

I am a first-generation graduate froma working-class backgroundeducated at a comprehensive schoolin my home town of Doncaster Ibenefited from free school meals anda full university grant that covered mytuition and maintenance fees The factthat I am now the Vice-Chancellor ofBPP University is testament to theUKrsquos commitment to upward mobility

But much has changed in the pastthree decades loans replaced grantsas the number of people accessinghigher education grew Now theHigher Education Commission hasmade 16 recommendations to helpsafeguard the financial sustainabilityof UK higher education At the heart ofits analysis is the conclusion that thestudent loan system is financiallyunsustainable current projections arethat for every pound1 lent 45p will not bepaid back the student loan book isset to grow from pound46bn to pound330bnbetween 2013 and 2044 TheDepartment of BIS Select Committeeand the Public Accounts Committeehave all questioned the viability of theloans scheme Universities arelobbying for the current fees cap ofpound9000 a year to be lifted so they cancharge students even more FormerEducation Secretary Charles Clarkehas called for the repayment thresholdto be reduced to pound15000 ndash from thecurrent pound21000 ndash to ensure moreloans are repaid and to incentiviseearly repayment

It strikes me that the accountingprofession with its-earn-while-you-learn routes from AATCAT upwards isa model of how higher education canbe both relevant and affordable It issomething that policy makers are nowrevisiting as a way forward for thenext generation

CARLLYGO

Accountancyoffers modelfor fundingof education

Professor Carl Lygo ischief executive of BPP

Shocked and angry P4 ACCAexam sitters leaving theDecember sitting wondered ifthey have been studying thewrong syllabus material Theirupset was clear as oneclaimed the examiner waslooking for lsquosuper humansrsquo topass this paper The upsetwas so tangible that manypleaded for the return of the oldexaminer

The real problem appears to beQ1 which many PQs are claiming isgetting harder and harder at eachsitting ldquoIt was the hardest exam ofmy liferdquo said one sitter

Students were concerned that theexam bore no reflection to any of thepractice questions they had sat Thesacrifices they had made all seemedworthless said several sitters Theyare now wondering who protectsthem from unfair exams and

examiners As one put it ldquoThereshould be someone representingstudentsrsquo concernsrdquo

F6 was another paper that stoodout early in week one of theDecember sitting Q2 on corporatetax liability was the nightmare herefor many

Meanwhile F5 sitters found theexam lsquofairrsquo and the P7 exam timepressured One student felt P7 wasthe least lsquoauditrsquo paper they had seenfor some timebull Go to wwwpqmagazinecouk seewhat students thought of the otherpapers We will also have feedbackfrom tutors in our next issue

Embrace CIMArsquos brave new world

lsquoSuper humansrsquo needed

Itrsquos time for CIMA PQs to forget aboutlsquocore areasrsquo and lsquoexam tipsrsquo and embracethe brave new world of the 2015 syllabussays HTFTrsquos Vicky Taylor A packed jointCIMAHTFT seminar in Birminghamrecently heard about what really liesahead ndash warts and all

Taylor stressed the first thing to put tobed was the fact that these new multiplechoice tests will be easier She pointedout that the 2015 CIMA student will betested on every component of the learningoutcomes ndash they can forget about getting qualified byonly getting half right The pass rate for the new OTs is

70 and it is 60 for the case studiesTaylor felt the key to success in the new

set up is a combination of mastering andself-motivation stressing ldquoDonrsquot gettrapped on lsquosomeday islandrsquo because thatwill mean you will be a lsquosomedayrsquo qualifiedaccountantrdquo

Taylor talked through the importance ofgetting into a routine mastering onelearning outcome (reward yourself fordoing so) and then moving onto the next

CIMA PQs have to learn to fightcomplacency and understand the importance ofmastering their own destiny she said

CIPFArsquos Ireland launchCIPFA strengthened its base

in Ireland with the launch of CIPFAIreland in early December It willwork to improve the performanceof public sector organisations andto support the Irish government

Contributing to UK plcTraining graduates and

apprentices to gain accounting

qualifications at PwC generatesfuture benefits for the UK of pound188ma year says the Big 4 firm Thisvaluation is part of PwCrsquos secondannual review of its total economicsocial tax and environmentalcontribution estimated at pound412bnin 2013-14 or pound157m per dayOver 1130 people joined PwC thisyear to complete professionalqualifications

CIMA connecting with PQsCIMA has launched an online

community platform for its PQs ndashCIMAconnect This it hopes willserve as a one-stop shop for allstudent needs It will containrelevant study and exam materialwhile also giving students a socialmedia functionality The site willaward badges to students as theyprogress through their qualification

In brief

E3 was an improvement onthe diabolical one set inMay but why does the paperexamine peripheral ratherthan mainstream areas asksone expert in our CIMANovember exam feedback

The questions wereclearer this time aroundsaid the tutor but the examinertends to pick dated models ratherthan the current syllabus-relatedversions Students will have neededto muddle through with theunderstanding that everyone else

was in the same boat a scantconsolation

Pass rates at P2 might alsobe low as many sittersstruggled with questions 2 56 and 7 Students admittedthey were frustrated with Q6and Q7 PQs are hoping thatthe institute take these

frustrations into account whenmarking the paperbull Not all tutors agreed with theabove comments For acomprehensive paper-by-paperrundown turn to page 16

November exam feedback

As part of its ongoing examtransformation plans the ACCA hasnow made its F4 (ENG) and F4(GLO) exams available as on-demand computer-based exams

F4 joins the ACCArsquos suite of CBEexams ndash F1 F2 and F3 The F4paper has changed in both its CBEand paper versions The exam willnow be two hours long and containnew types of questions that testPQsrsquo knowledge on scenarios froma number of different angles

The association wants to ensurethe new-look exam reflects todayrsquosbusiness environment meaningstudents will be better equippedwith the right skills to help them inthe workplace

The ACCA has also revealed thatit will be offering a September 2015sitting in some of its larger marketsThis includes key cities in the UKFrom 2016 it will be offering fourexam sessions a year in all of itsmarkets

Taylor donrsquot get trapped

F4 availableon demand

PQ jan 15 p-10_pq sept 12 p08 04122014 0941 Page 8

Study a DEGREE plus your ACCA in Ireland

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011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

LCA Business School London 19 Charterhouse Street London EC1N 6RA

Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

Speak to a personal

course advisor on

020 7400 6772

or enrol with us on-line

wwwlcaangliaacuk

Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

TUESDAY 10th FEBRUARY 2015

TUESDAY 17th FEBRUARY 2015

TUESDAY 24th FEBRUARY 2015t COME ALONG AND MEET OUR LECTURERS

t ENROL ON OUR OPEN DAYS AND

GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

Ÿ

Ÿ

DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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OPEN DAY7th amp 8th of January 2015

1200-400pm

TAKE YOUR ACCOUNTING CAREER TO THE NEXT LEVELSantarsquos giving FREE work placements with all trainings

Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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re-sit course The nature of free resit depends on the preferred study mode

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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Page 3: PQ magazine January 2015

comment PQ

News06CIMA pass rates datesInstitute names the big day(s)08ACCA exams Centres for theSeptember exams are named102015 syllabus PQs urged toembrace new CIMA qualification

Features etc06Mind your PsampQs Your lettersare held over until next month12PQ visit We took time out tovisit a Pearson Vue exam centrein central London14Bumper Annual Quiz Yes itrsquosthat time of year folks ndash you canwin a pair of top headphones16CIMA exam feedback Ourexperts assess the fairness ndash orotherwise ndash of the recent exams18ACCA F4 exam Take our testand find your knowledge gaps20PQ Awards 2015 Time isrunning out ndash so enter now24Letrsquos get technical Gettingback to basics with a look at taxand personal allowances26AAT pass rates The results arein plus an update on CIPFArsquosapprenticeship scheme27CIMA 2015 syllabus Changesthrow up fresh challenges28ACCA P1 assessed What tolook out for in the GovernanceRisk and Ethics paper30ICAEW focus A report fromthe One Young World convention

31International standards Allyou need to know about IAS 1732Risk management The FRChas made changes to the UKrsquosCorporate Governance Code33Career advice Make your CVstand out and some wise wordsfrom our Agony Aunt34Salary checker So are yougetting paid what you are worth37Careers Deloitte encouragesenterprise life at PwC Nicosiaand our Book Club review42Fun time Drugs donrsquot work thered shoes Boris in hot water inthe US and our great giveaways

The columnistsRobert Bruce Original thinking isneeded now more than ever 6Prem Sikka Learn the lessons ofhistory ndash or pay the price 8Carl Lygo Accountancy is themodel for education funding 10

Subscribe to PQ magazineItrsquos FREE ndash go to page 41 or see

wwwpqmagazinecouk

ABC July 2013ndashJune 2014

32361

Publisherrsquos statement We have adigital issue of the magazine whichis sent to 10133 requested readers

First with the newsCan you believe it ndash our first magazine dated 2015 We have lotsof info about the new CIMA exams set-up inside this one Did

you know for example that the first OT exam pass rates will be released inJuly Or that it will now cost you just over pound1000 to sit all the professionallevel exams Well you do now This month we visited a Pearson Vue examcentre in London pretending to be a PQ to see just what will happen whenthe first exams are taken ndash see page 12 For the record the exams will beavailable from 2 January That doesnrsquot mean we have forgotten about theNovember exams With the results just days away (18 December) we havea jammed-packed two pages on the last-ever November sitting (pages 16)

We were sad to hear Clare Minchington is leaving the ACCA She is allthose things they put in the ad for her replacement (see page 6) TheACCA exams were taking place as we went to press and it seems to haveall kicked off on the first Tuesday of exam week F6 was lsquoawfulrsquo but P4seemed to bring a whole new meaning to student pain Students aredemanding someone to represent their concerns This is a very good ideaThere should be an ACCA student council and we would be the first tosupport that idea There should also be paper reps a student that fellowPQs can complain to who would have direct access to the people whomatter at the ACCA

It was great to see that PQ salaries are on the rise again The latestsurvey from Hays says some NQs are getting double-digit salary rises in theform of counter-offers If you want to see what you should be getting paidthen turn to page 34

Donrsquot forget to get your entries in to us for the PQ awards We haveextended the deadline to Friday 9 January But that really is it ndash judgingtakes place the following week

Finally a big thanks to the professional bodies who sponsored ourannual quiz We have four pairs of fantastic Sennheiser headphones togiveaway (page 14) Good luck

Graham Hambly PQ magazine editor (grahampqaccountantcom)

CONTENTS January 2015

SYLLABUS ADVICE

WEBINAR

EXAM FORUM

QampAOPEN DAY

+44 (0)1908 540 069

cimaadvicekaplancouk

Post any questions

you have about your

exam results or what to

do next via our Twitter

or Facebook page and

wersquoll answer them all

Wersquore running

a series of open days

both in centres and

via Live Online

so there will be a date

and time to suit you

Join one of our live

sessions to find out

what you should

do once you receive

your exam results

Join our FREE events to help you choose the best course options for you

dagger Customer support team will be closed on 25th Dec 26th Dec and 1st Jan

To qualify for the Lifetime Pass Guarantee certain criteria must be met TampCs apply See website for details

PQ jan 15 p3_pq aprl08 p04 04122014 0938 Page 1

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PQ magazine Fourth floor Central House 142 Central Street London EC1V 8AR | Phone 020 7216 6444 | Email grahampqaccountantcomWebsite wwwpqmagazinecouk | Editorpublisher Graham Hambly grahampqaccountantcom | Advertising manager Polly Thrasivoulou pollypqaccountantcom

Associate editor Adam Riches | Art editor Tim Parker | Subscriptions dompqaccountantcom | Contributors Robert Bruce Prem Sikka Tony Kelly Phil Gammon Jo Daley Richard Heaton | Origination and print services by Classified Central Media

Published by PQ Publishing copy PQ Publishing 2014

If you have any problems with delivery or if you want to change your delivery address please email dompqaccountantcom

lsquoDM failrsquo forTwitter CFOItrsquos what we all dread ndash pressing thesend button on a tweet that shouldhave been a directmessage The lsquoDMfailrsquo can lead to realembarrassment andridicule but imaginewhat sort of pressyou would get if you were the CFOof the social network Twitter and youdid it Anthony Noto who joinedTwitter this year as its finance chieftweeted a message about a takeoverdeal which was obviously intendedfor private eyes only Notorsquos tweetread ldquoI still think we should buythem He is on your schedule forDec 15helliprdquo and was quicklydeleted But the post had alreadybeen captured by an eagle-eyedjournalist

CIMA has told PQ magazine that itwill publish the pass rates of itsnew online OT exams (there arenine of them) sometime in July2015 It feels that the pass rateswill be more meaningful after acritical mass of students have satthe tests

Thereafter however it ispromising to publish pass ratesevery three months to coincidewith the case study results

The OT exams themselves will beavailable from 2 January and CIMAwill be keenly looking to see theuptake

CIMArsquos director of learning PeterStewart reiterated that the casestudy exams will remain at fourtimes a year ndash in February May

August and November The plan isto offer the operational exams inweek two of the monthmanagement in week three and

CIMA PASS RATE DATES

One of the more bizarre aspects ofbusiness is that whenever the Britishpublic is asked which businessperson they most admire they giveRichard Branson as their answerThere is a deeper problem here thanthe collective view that a beardedself-publicist is seen as epitomisingbusiness The public knows andunderstands too little of businessAnd what they think they know tendsto be clicheacute

Take the recruitment of companyboards The clicheacute is that it is allcronyism nepotism and old-schoolconnections And it can be But timeshave changed and people havenrsquotnoticed I was talking recently to thehead of a thriving young businessand was surprised at their choice ofchairman a man who journalistswould describe as a serialentrepreneur How did they find himThe truth was far stranger than theperceived clicheacute

One evening the bright young guywho runs the business was outvolunteering delivering food to thehomeless Late in the evening a fightbroke out among some roughsleepers And the door of the houseopposite opened and someone cameout to help break it up They all gottalking It transpired that thepeacemaker was involved in manybusiness start-ups Our youngvolunteer described his business Itstruck a chord As a result theyrealised they had found the chairmanthey needed

The business is now expandinghappily with confidence andcommon-sense all around It isexactly how these things ought tohappen And to be fair it is verysimilar to how it all happened in thepast Like-minded people meetrealise they share each otherrsquosvalues are enthusiastic about how totake a business forward and thenpool their ideas and resources to doso But it couldnrsquot be further from theidea of the old-school tie

ROBERTBRUCEUK publicshould lookbeyond theclicheacutes

Robert Bruce is an award-winning writer onaccountancy for The Times

strategic in week four Theexception will be FebruaryMarchwhen CIMA will offer everything twoweeks later

There will be five different casestudies (in terms of lsquounseenrsquotriggers and tasks but they all havea single common pre-seen)Students will then be assigned theircase randomly in the test centre

CIMA has also released anapproved calculator list for the firsttime (see page 18 for the full list)

So how much will all this costWell the OTs come in at pound70 apop The first two case studies costpound115 each with the final casestudy priced at pound175 That meansit will cost just over pound1000 to sit allthe professional level exams

Minchington to leave the ACCAThe ACCA is looking for a new executivedirector strategy and development afterClare Minchington announced she isleaving the association after 15 yearsservice Minchington (pictured) willdepart in March 2015 and told PQ thatshe plans to build a portfolio of non-executive audit committee work Her aimis to lsquobe therersquo for her son who has just

started school Minchingtonrsquos role wasadvertised in early November in TheSunday Times

We are told that the successfulcandidate needs to be ldquoof outstandingintellectual calibre with an exceptionaltrack record of leadership managementand innovation in a relevant fieldrdquo

She will be missed by PQ magazine

Stewart four case study sittings

PQ jan 15 p6 ccm_pq aprl08 p04 04122014 1343 Page 1

We have combined Taught Revision and Exam Practicehelliphellipand we are so confident that all our 2015 CIMA

programmes are Lifetime Pass Assured guaranteed

To book your CIMA 2015 programme

visit bppcomcima or call 03331 221 296^

Full terms and conditions apply wwwbppcomtermsllifetime-pass-assurance The new Lifetime Pass Assurance Scheme does not apply to course purchases made before 24th November 2014 and

cannot be used in conjunction with any other ofer or promotion run by any BPP group company No cash alternative available Full terms and conditions apply wwwbppcomtermslprofessional-

development-courses To qualify for ten Professional Development courses with BPP Professional Education Limited (ldquoBPP PErdquo) free of charge two CIMA papers must be booked at the same time Only

certain online Professional Development Courses apply Full terms and conditions apply wwwbppcomtermslbpp-payment-plan The BPP Payment Plan is only available when purchasing applicable

ACCA and CIMA courses The BPP Payment Plan is ofered subject to availability and acceptance of your application for the BPP Payment Plan is at the sole discretion of BPP deg 81 is the average pass rate

for students that booked through BPPrsquos Pass Ready Solution sitting Operational Management and Strategic papers in the May 2014 exams ^ Calls charged at local rates

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007_PQ 0115_PQ 1209 000 02122014 1428 Page 7

8 PQ Magazine January 2015

PQ news

The ACCA has unveiled the 30centres it will be using for theSeptember 2015 exams ndash the first-ever lsquoadditional exam sessionrsquo

The countries due to offer theexams are the UK IrelandVietnam Kenya Ghana ZambiaMauritius Uganda ZimbabweNigeria China and Malaysia

The ACCA has said that nextSeptemberrsquos exams should givesome of its larger markets theopportunity to use this new sessionIt also means around 25 of ACCAstudents will be able to chose to sitin September

But where asked one top tutorwere the centres in PakistanSingapore the Middle East orEastern Europe He said ldquoIf theACCA wants it to be a trueopportunity for all its markets to testthe water then instead of offeringfour chances to sit the exams inScotland and five in Malaysia it

would seem logical to offer at leastone centre in Pakistanrdquo

The exam timetables will alsochange from September 2015 Theexams will run over a week ratherthan the current eight days So forexample the September 2015exams run from Monday 7 to Friday

11 PQs will be able to sit theDecember 2015 exams from 7 to 11 December

The full list of cities where theACCA is offering the September2015 sessionbull Ireland Cork Dublinbull UK Aberdeen BelfastBirmingham Cardiff DundeeEdinburgh Glasgow LeedsLondon Manchester Newcastlebull Vietnam Ho Chi Minh Citybull Kenya Nairobibull Ghana Accrabull Zambia Lusakabull Mauritius Mauritiusbull Uganda Kampalabull Zimbabwe Hararebull Nigeria Lagosbull China Beijing GuangzhoNanjing Shanghaibull Malaysia Federal Territory JohorBahru Kuching Pulau PinangSelangor

CIPFA choses partner

ACCA unveils Septembercentres for 2015 exams

New interim requirementsThe Financial Reporting

Council (FRC) has issued exposuredraft FRED 56 Draft FRS 104Interim Financial reporting whichwill revise the FRCrsquos existingguidance on interim financialreports for consistency with newUK and Irish GAAP (FRS 102) Thecouncil is also proposing towithdraw the Reporting StatementlsquoPreliminary announcementsrsquo

MIA and ACCA sign MoUThe Malaysian Institute of

Accountants (MIA) and the ACCAhave signed a memorandum ofunderstanding (MoU) which willresult in them working together todevelop the profession inMalaysia and the widerregion The ACCA has alsoagreed to offer exemptionsfor nine papers from theACCA qualification (F1 ndashF9) to eligible MIAmembers with initial registrationand exemption fees waived Thisspecial pathway is in force for threeyears from the date of signing

BDO redundanciesBDO is reportedly cutting

20 of its restructuring workforcebecause of the slowdown in

companyfailures Thefirm whichmerged withPKF last year isnow consultingon some 50

redundancies across its 20 or soUK offices A BDO spokesmansaid ldquoThe volume of insolvencyassignments has reduced and we

see no likelihood of this increasingin the foreseeable futurerdquo

Giveaway winnersWell done ACCA PQ Graeme

Gorthy He was the winner of ourholiday competition in conjunctionwith Home Learning College And thewinners of the ever-so-popularspecial edition Canon calculatorswere Jonathan Adams ChandniBansal Doreen Clarke Jeremy Davisand James Swoden Remember tocheck wwwpqmagazinecouk forthe list of all the giveaway winners

In brief

CIPFA has unveiled Calibrand as its officiale-assessment partner for the institutersquosnew-look professional qualification (PQ)

Through the partnership online methodsof assessment will be made available tostudents worldwide who are training fortheir CIPFA PQ providing a flexible routeinto the profession

Fully operational from 2016 Calibrandwill be responsible for implementing thesoftware globally as part of a five-year contract

CIPFArsquos Adrian Pulham said that CIPFA chose Calibrand becauseit provided the best overall solution to the challenges the institutefaces as it expands globally He explained ldquoWe are confident thatthey will deliver an excellent service to CIPFA and those studyingwith us We are particularly confident in their delivery as theirmarking essay and case-study exam solutions fitted very closelywith our existing methodologyrdquo

In every decade since the 1970s theUK has had a financial crisis The1970s had a secondary banking crashthat spread to the insurance and theproperty sector The state bailed themall out This was followed by a crisiscaused by the collapse of JonsonMatthey Barlow Clowes and frauds atLloydrsquos of London The 1990s exposedfraud at BCCI and Barings

The same story continued into thenew millennium Banks boasting auditcommittees ethics committees andeminent accounting firms as auditorswere bailed out within days ofreceiving unqualified audit opinionsLehman Brothers and Bear Stearnswent to the wall The troubles at theCo-op Bank are yet to be resolved

Yet business executives collectedlarge remuneration packets auditorscollected fees and taxpayers pickedup the bailout bills The accountancyprofession has been adept at tweakingaccounting and auditing standardscodes of ethics and disciplinaryarrangements that have delivered solittle Corporate governance codeshave hardly improved governanceRepeated fines on audit firms andbanks only show how ineffectiveprevious reforms have been This stateof affairs continues because thecorporate interests responsible for thecrisis have colonised publicpolicymaking bodies Reducing theirinfluence on public policymaking is anecessary condition for effectivereforms but remains a distantpossibility Those who fail to learnfrom history are doomed to repeat it

PREMSIKKA

Learn fromhistory ndash orpay theprice

Prem Sikka is professor of accountancy at theUniversity of Essex

lsquoBomb plotrsquo foiledAAT students attending NewcastleCollege were recently told to lsquoattend thecollege as usualrsquo as news filter out of afoiled bomb plot In early Novemberpolice revealed that a plot to causelsquoserious harmrsquo had been prevented Ateenager Liam Lyburd was arrestedafter homemade explosives werediscovered at a house in Hamilton PlaceNewcastle

Northumbria Police stated that it wasconfident intent to cause serious harm atNewcastle College has been prevented

Principal Carole Kitching stressed ldquoIwould like to reassure staff studentsand their families that their safety hasbeen paramount to us and the collegeremains a safe place to studyrdquo

Adrian Pulham

pq jan 15 p8 ccm_pq sept 12 p08 04122014 1342 Page 8

ONLINE ACCA COURSES DESIGNED BY INDUSTRY EXPERTS

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009_PQ 0115_PQ 1209 000 01122014 1359 Page 7

10 PQ Magazine January 2015

PQ news

I am a first-generation graduate froma working-class backgroundeducated at a comprehensive schoolin my home town of Doncaster Ibenefited from free school meals anda full university grant that covered mytuition and maintenance fees The factthat I am now the Vice-Chancellor ofBPP University is testament to theUKrsquos commitment to upward mobility

But much has changed in the pastthree decades loans replaced grantsas the number of people accessinghigher education grew Now theHigher Education Commission hasmade 16 recommendations to helpsafeguard the financial sustainabilityof UK higher education At the heart ofits analysis is the conclusion that thestudent loan system is financiallyunsustainable current projections arethat for every pound1 lent 45p will not bepaid back the student loan book isset to grow from pound46bn to pound330bnbetween 2013 and 2044 TheDepartment of BIS Select Committeeand the Public Accounts Committeehave all questioned the viability of theloans scheme Universities arelobbying for the current fees cap ofpound9000 a year to be lifted so they cancharge students even more FormerEducation Secretary Charles Clarkehas called for the repayment thresholdto be reduced to pound15000 ndash from thecurrent pound21000 ndash to ensure moreloans are repaid and to incentiviseearly repayment

It strikes me that the accountingprofession with its-earn-while-you-learn routes from AATCAT upwards isa model of how higher education canbe both relevant and affordable It issomething that policy makers are nowrevisiting as a way forward for thenext generation

CARLLYGO

Accountancyoffers modelfor fundingof education

Professor Carl Lygo ischief executive of BPP

Shocked and angry P4 ACCAexam sitters leaving theDecember sitting wondered ifthey have been studying thewrong syllabus material Theirupset was clear as oneclaimed the examiner waslooking for lsquosuper humansrsquo topass this paper The upsetwas so tangible that manypleaded for the return of the oldexaminer

The real problem appears to beQ1 which many PQs are claiming isgetting harder and harder at eachsitting ldquoIt was the hardest exam ofmy liferdquo said one sitter

Students were concerned that theexam bore no reflection to any of thepractice questions they had sat Thesacrifices they had made all seemedworthless said several sitters Theyare now wondering who protectsthem from unfair exams and

examiners As one put it ldquoThereshould be someone representingstudentsrsquo concernsrdquo

F6 was another paper that stoodout early in week one of theDecember sitting Q2 on corporatetax liability was the nightmare herefor many

Meanwhile F5 sitters found theexam lsquofairrsquo and the P7 exam timepressured One student felt P7 wasthe least lsquoauditrsquo paper they had seenfor some timebull Go to wwwpqmagazinecouk seewhat students thought of the otherpapers We will also have feedbackfrom tutors in our next issue

Embrace CIMArsquos brave new world

lsquoSuper humansrsquo needed

Itrsquos time for CIMA PQs to forget aboutlsquocore areasrsquo and lsquoexam tipsrsquo and embracethe brave new world of the 2015 syllabussays HTFTrsquos Vicky Taylor A packed jointCIMAHTFT seminar in Birminghamrecently heard about what really liesahead ndash warts and all

Taylor stressed the first thing to put tobed was the fact that these new multiplechoice tests will be easier She pointedout that the 2015 CIMA student will betested on every component of the learningoutcomes ndash they can forget about getting qualified byonly getting half right The pass rate for the new OTs is

70 and it is 60 for the case studiesTaylor felt the key to success in the new

set up is a combination of mastering andself-motivation stressing ldquoDonrsquot gettrapped on lsquosomeday islandrsquo because thatwill mean you will be a lsquosomedayrsquo qualifiedaccountantrdquo

Taylor talked through the importance ofgetting into a routine mastering onelearning outcome (reward yourself fordoing so) and then moving onto the next

CIMA PQs have to learn to fightcomplacency and understand the importance ofmastering their own destiny she said

CIPFArsquos Ireland launchCIPFA strengthened its base

in Ireland with the launch of CIPFAIreland in early December It willwork to improve the performanceof public sector organisations andto support the Irish government

Contributing to UK plcTraining graduates and

apprentices to gain accounting

qualifications at PwC generatesfuture benefits for the UK of pound188ma year says the Big 4 firm Thisvaluation is part of PwCrsquos secondannual review of its total economicsocial tax and environmentalcontribution estimated at pound412bnin 2013-14 or pound157m per dayOver 1130 people joined PwC thisyear to complete professionalqualifications

CIMA connecting with PQsCIMA has launched an online

community platform for its PQs ndashCIMAconnect This it hopes willserve as a one-stop shop for allstudent needs It will containrelevant study and exam materialwhile also giving students a socialmedia functionality The site willaward badges to students as theyprogress through their qualification

In brief

E3 was an improvement onthe diabolical one set inMay but why does the paperexamine peripheral ratherthan mainstream areas asksone expert in our CIMANovember exam feedback

The questions wereclearer this time aroundsaid the tutor but the examinertends to pick dated models ratherthan the current syllabus-relatedversions Students will have neededto muddle through with theunderstanding that everyone else

was in the same boat a scantconsolation

Pass rates at P2 might alsobe low as many sittersstruggled with questions 2 56 and 7 Students admittedthey were frustrated with Q6and Q7 PQs are hoping thatthe institute take these

frustrations into account whenmarking the paperbull Not all tutors agreed with theabove comments For acomprehensive paper-by-paperrundown turn to page 16

November exam feedback

As part of its ongoing examtransformation plans the ACCA hasnow made its F4 (ENG) and F4(GLO) exams available as on-demand computer-based exams

F4 joins the ACCArsquos suite of CBEexams ndash F1 F2 and F3 The F4paper has changed in both its CBEand paper versions The exam willnow be two hours long and containnew types of questions that testPQsrsquo knowledge on scenarios froma number of different angles

The association wants to ensurethe new-look exam reflects todayrsquosbusiness environment meaningstudents will be better equippedwith the right skills to help them inthe workplace

The ACCA has also revealed thatit will be offering a September 2015sitting in some of its larger marketsThis includes key cities in the UKFrom 2016 it will be offering fourexam sessions a year in all of itsmarkets

Taylor donrsquot get trapped

F4 availableon demand

PQ jan 15 p-10_pq sept 12 p08 04122014 0941 Page 8

Study a DEGREE plus your ACCA in Ireland

Combine a Bachelorrsquos or an MBA with the ACCA qualification to improve

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011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

LCA Business School London 19 Charterhouse Street London EC1N 6RA

Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

Speak to a personal

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020 7400 6772

or enrol with us on-line

wwwlcaangliaacuk

Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

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TUESDAY 17th FEBRUARY 2015

TUESDAY 24th FEBRUARY 2015t COME ALONG AND MEET OUR LECTURERS

t ENROL ON OUR OPEN DAYS AND

GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

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revision

courses

with live question

debriefs and marked mock

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Call us to book

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Our students tell us they appreciate

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comfortable learning environment

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friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

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trusted opinion on exam training

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Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

Ÿ

Ÿ

DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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  • LowRes011_PQ 0115
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Page 4: PQ magazine January 2015

OUR CIMA PARTndashTIME

JUST GOT BETTER

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PQ magazine Fourth floor Central House 142 Central Street London EC1V 8AR | Phone 020 7216 6444 | Email grahampqaccountantcomWebsite wwwpqmagazinecouk | Editorpublisher Graham Hambly grahampqaccountantcom | Advertising manager Polly Thrasivoulou pollypqaccountantcom

Associate editor Adam Riches | Art editor Tim Parker | Subscriptions dompqaccountantcom | Contributors Robert Bruce Prem Sikka Tony Kelly Phil Gammon Jo Daley Richard Heaton | Origination and print services by Classified Central Media

Published by PQ Publishing copy PQ Publishing 2014

If you have any problems with delivery or if you want to change your delivery address please email dompqaccountantcom

lsquoDM failrsquo forTwitter CFOItrsquos what we all dread ndash pressing thesend button on a tweet that shouldhave been a directmessage The lsquoDMfailrsquo can lead to realembarrassment andridicule but imaginewhat sort of pressyou would get if you were the CFOof the social network Twitter and youdid it Anthony Noto who joinedTwitter this year as its finance chieftweeted a message about a takeoverdeal which was obviously intendedfor private eyes only Notorsquos tweetread ldquoI still think we should buythem He is on your schedule forDec 15helliprdquo and was quicklydeleted But the post had alreadybeen captured by an eagle-eyedjournalist

CIMA has told PQ magazine that itwill publish the pass rates of itsnew online OT exams (there arenine of them) sometime in July2015 It feels that the pass rateswill be more meaningful after acritical mass of students have satthe tests

Thereafter however it ispromising to publish pass ratesevery three months to coincidewith the case study results

The OT exams themselves will beavailable from 2 January and CIMAwill be keenly looking to see theuptake

CIMArsquos director of learning PeterStewart reiterated that the casestudy exams will remain at fourtimes a year ndash in February May

August and November The plan isto offer the operational exams inweek two of the monthmanagement in week three and

CIMA PASS RATE DATES

One of the more bizarre aspects ofbusiness is that whenever the Britishpublic is asked which businessperson they most admire they giveRichard Branson as their answerThere is a deeper problem here thanthe collective view that a beardedself-publicist is seen as epitomisingbusiness The public knows andunderstands too little of businessAnd what they think they know tendsto be clicheacute

Take the recruitment of companyboards The clicheacute is that it is allcronyism nepotism and old-schoolconnections And it can be But timeshave changed and people havenrsquotnoticed I was talking recently to thehead of a thriving young businessand was surprised at their choice ofchairman a man who journalistswould describe as a serialentrepreneur How did they find himThe truth was far stranger than theperceived clicheacute

One evening the bright young guywho runs the business was outvolunteering delivering food to thehomeless Late in the evening a fightbroke out among some roughsleepers And the door of the houseopposite opened and someone cameout to help break it up They all gottalking It transpired that thepeacemaker was involved in manybusiness start-ups Our youngvolunteer described his business Itstruck a chord As a result theyrealised they had found the chairmanthey needed

The business is now expandinghappily with confidence andcommon-sense all around It isexactly how these things ought tohappen And to be fair it is verysimilar to how it all happened in thepast Like-minded people meetrealise they share each otherrsquosvalues are enthusiastic about how totake a business forward and thenpool their ideas and resources to doso But it couldnrsquot be further from theidea of the old-school tie

ROBERTBRUCEUK publicshould lookbeyond theclicheacutes

Robert Bruce is an award-winning writer onaccountancy for The Times

strategic in week four Theexception will be FebruaryMarchwhen CIMA will offer everything twoweeks later

There will be five different casestudies (in terms of lsquounseenrsquotriggers and tasks but they all havea single common pre-seen)Students will then be assigned theircase randomly in the test centre

CIMA has also released anapproved calculator list for the firsttime (see page 18 for the full list)

So how much will all this costWell the OTs come in at pound70 apop The first two case studies costpound115 each with the final casestudy priced at pound175 That meansit will cost just over pound1000 to sit allthe professional level exams

Minchington to leave the ACCAThe ACCA is looking for a new executivedirector strategy and development afterClare Minchington announced she isleaving the association after 15 yearsservice Minchington (pictured) willdepart in March 2015 and told PQ thatshe plans to build a portfolio of non-executive audit committee work Her aimis to lsquobe therersquo for her son who has just

started school Minchingtonrsquos role wasadvertised in early November in TheSunday Times

We are told that the successfulcandidate needs to be ldquoof outstandingintellectual calibre with an exceptionaltrack record of leadership managementand innovation in a relevant fieldrdquo

She will be missed by PQ magazine

Stewart four case study sittings

PQ jan 15 p6 ccm_pq aprl08 p04 04122014 1343 Page 1

We have combined Taught Revision and Exam Practicehelliphellipand we are so confident that all our 2015 CIMA

programmes are Lifetime Pass Assured guaranteed

To book your CIMA 2015 programme

visit bppcomcima or call 03331 221 296^

Full terms and conditions apply wwwbppcomtermsllifetime-pass-assurance The new Lifetime Pass Assurance Scheme does not apply to course purchases made before 24th November 2014 and

cannot be used in conjunction with any other ofer or promotion run by any BPP group company No cash alternative available Full terms and conditions apply wwwbppcomtermslprofessional-

development-courses To qualify for ten Professional Development courses with BPP Professional Education Limited (ldquoBPP PErdquo) free of charge two CIMA papers must be booked at the same time Only

certain online Professional Development Courses apply Full terms and conditions apply wwwbppcomtermslbpp-payment-plan The BPP Payment Plan is only available when purchasing applicable

ACCA and CIMA courses The BPP Payment Plan is ofered subject to availability and acceptance of your application for the BPP Payment Plan is at the sole discretion of BPP deg 81 is the average pass rate

for students that booked through BPPrsquos Pass Ready Solution sitting Operational Management and Strategic papers in the May 2014 exams ^ Calls charged at local rates

81

CIMA Pass Ratesdeg

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007_PQ 0115_PQ 1209 000 02122014 1428 Page 7

8 PQ Magazine January 2015

PQ news

The ACCA has unveiled the 30centres it will be using for theSeptember 2015 exams ndash the first-ever lsquoadditional exam sessionrsquo

The countries due to offer theexams are the UK IrelandVietnam Kenya Ghana ZambiaMauritius Uganda ZimbabweNigeria China and Malaysia

The ACCA has said that nextSeptemberrsquos exams should givesome of its larger markets theopportunity to use this new sessionIt also means around 25 of ACCAstudents will be able to chose to sitin September

But where asked one top tutorwere the centres in PakistanSingapore the Middle East orEastern Europe He said ldquoIf theACCA wants it to be a trueopportunity for all its markets to testthe water then instead of offeringfour chances to sit the exams inScotland and five in Malaysia it

would seem logical to offer at leastone centre in Pakistanrdquo

The exam timetables will alsochange from September 2015 Theexams will run over a week ratherthan the current eight days So forexample the September 2015exams run from Monday 7 to Friday

11 PQs will be able to sit theDecember 2015 exams from 7 to 11 December

The full list of cities where theACCA is offering the September2015 sessionbull Ireland Cork Dublinbull UK Aberdeen BelfastBirmingham Cardiff DundeeEdinburgh Glasgow LeedsLondon Manchester Newcastlebull Vietnam Ho Chi Minh Citybull Kenya Nairobibull Ghana Accrabull Zambia Lusakabull Mauritius Mauritiusbull Uganda Kampalabull Zimbabwe Hararebull Nigeria Lagosbull China Beijing GuangzhoNanjing Shanghaibull Malaysia Federal Territory JohorBahru Kuching Pulau PinangSelangor

CIPFA choses partner

ACCA unveils Septembercentres for 2015 exams

New interim requirementsThe Financial Reporting

Council (FRC) has issued exposuredraft FRED 56 Draft FRS 104Interim Financial reporting whichwill revise the FRCrsquos existingguidance on interim financialreports for consistency with newUK and Irish GAAP (FRS 102) Thecouncil is also proposing towithdraw the Reporting StatementlsquoPreliminary announcementsrsquo

MIA and ACCA sign MoUThe Malaysian Institute of

Accountants (MIA) and the ACCAhave signed a memorandum ofunderstanding (MoU) which willresult in them working together todevelop the profession inMalaysia and the widerregion The ACCA has alsoagreed to offer exemptionsfor nine papers from theACCA qualification (F1 ndashF9) to eligible MIAmembers with initial registrationand exemption fees waived Thisspecial pathway is in force for threeyears from the date of signing

BDO redundanciesBDO is reportedly cutting

20 of its restructuring workforcebecause of the slowdown in

companyfailures Thefirm whichmerged withPKF last year isnow consultingon some 50

redundancies across its 20 or soUK offices A BDO spokesmansaid ldquoThe volume of insolvencyassignments has reduced and we

see no likelihood of this increasingin the foreseeable futurerdquo

Giveaway winnersWell done ACCA PQ Graeme

Gorthy He was the winner of ourholiday competition in conjunctionwith Home Learning College And thewinners of the ever-so-popularspecial edition Canon calculatorswere Jonathan Adams ChandniBansal Doreen Clarke Jeremy Davisand James Swoden Remember tocheck wwwpqmagazinecouk forthe list of all the giveaway winners

In brief

CIPFA has unveiled Calibrand as its officiale-assessment partner for the institutersquosnew-look professional qualification (PQ)

Through the partnership online methodsof assessment will be made available tostudents worldwide who are training fortheir CIPFA PQ providing a flexible routeinto the profession

Fully operational from 2016 Calibrandwill be responsible for implementing thesoftware globally as part of a five-year contract

CIPFArsquos Adrian Pulham said that CIPFA chose Calibrand becauseit provided the best overall solution to the challenges the institutefaces as it expands globally He explained ldquoWe are confident thatthey will deliver an excellent service to CIPFA and those studyingwith us We are particularly confident in their delivery as theirmarking essay and case-study exam solutions fitted very closelywith our existing methodologyrdquo

In every decade since the 1970s theUK has had a financial crisis The1970s had a secondary banking crashthat spread to the insurance and theproperty sector The state bailed themall out This was followed by a crisiscaused by the collapse of JonsonMatthey Barlow Clowes and frauds atLloydrsquos of London The 1990s exposedfraud at BCCI and Barings

The same story continued into thenew millennium Banks boasting auditcommittees ethics committees andeminent accounting firms as auditorswere bailed out within days ofreceiving unqualified audit opinionsLehman Brothers and Bear Stearnswent to the wall The troubles at theCo-op Bank are yet to be resolved

Yet business executives collectedlarge remuneration packets auditorscollected fees and taxpayers pickedup the bailout bills The accountancyprofession has been adept at tweakingaccounting and auditing standardscodes of ethics and disciplinaryarrangements that have delivered solittle Corporate governance codeshave hardly improved governanceRepeated fines on audit firms andbanks only show how ineffectiveprevious reforms have been This stateof affairs continues because thecorporate interests responsible for thecrisis have colonised publicpolicymaking bodies Reducing theirinfluence on public policymaking is anecessary condition for effectivereforms but remains a distantpossibility Those who fail to learnfrom history are doomed to repeat it

PREMSIKKA

Learn fromhistory ndash orpay theprice

Prem Sikka is professor of accountancy at theUniversity of Essex

lsquoBomb plotrsquo foiledAAT students attending NewcastleCollege were recently told to lsquoattend thecollege as usualrsquo as news filter out of afoiled bomb plot In early Novemberpolice revealed that a plot to causelsquoserious harmrsquo had been prevented Ateenager Liam Lyburd was arrestedafter homemade explosives werediscovered at a house in Hamilton PlaceNewcastle

Northumbria Police stated that it wasconfident intent to cause serious harm atNewcastle College has been prevented

Principal Carole Kitching stressed ldquoIwould like to reassure staff studentsand their families that their safety hasbeen paramount to us and the collegeremains a safe place to studyrdquo

Adrian Pulham

pq jan 15 p8 ccm_pq sept 12 p08 04122014 1342 Page 8

ONLINE ACCA COURSES DESIGNED BY INDUSTRY EXPERTS

ACCESSIBLE 247

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009_PQ 0115_PQ 1209 000 01122014 1359 Page 7

10 PQ Magazine January 2015

PQ news

I am a first-generation graduate froma working-class backgroundeducated at a comprehensive schoolin my home town of Doncaster Ibenefited from free school meals anda full university grant that covered mytuition and maintenance fees The factthat I am now the Vice-Chancellor ofBPP University is testament to theUKrsquos commitment to upward mobility

But much has changed in the pastthree decades loans replaced grantsas the number of people accessinghigher education grew Now theHigher Education Commission hasmade 16 recommendations to helpsafeguard the financial sustainabilityof UK higher education At the heart ofits analysis is the conclusion that thestudent loan system is financiallyunsustainable current projections arethat for every pound1 lent 45p will not bepaid back the student loan book isset to grow from pound46bn to pound330bnbetween 2013 and 2044 TheDepartment of BIS Select Committeeand the Public Accounts Committeehave all questioned the viability of theloans scheme Universities arelobbying for the current fees cap ofpound9000 a year to be lifted so they cancharge students even more FormerEducation Secretary Charles Clarkehas called for the repayment thresholdto be reduced to pound15000 ndash from thecurrent pound21000 ndash to ensure moreloans are repaid and to incentiviseearly repayment

It strikes me that the accountingprofession with its-earn-while-you-learn routes from AATCAT upwards isa model of how higher education canbe both relevant and affordable It issomething that policy makers are nowrevisiting as a way forward for thenext generation

CARLLYGO

Accountancyoffers modelfor fundingof education

Professor Carl Lygo ischief executive of BPP

Shocked and angry P4 ACCAexam sitters leaving theDecember sitting wondered ifthey have been studying thewrong syllabus material Theirupset was clear as oneclaimed the examiner waslooking for lsquosuper humansrsquo topass this paper The upsetwas so tangible that manypleaded for the return of the oldexaminer

The real problem appears to beQ1 which many PQs are claiming isgetting harder and harder at eachsitting ldquoIt was the hardest exam ofmy liferdquo said one sitter

Students were concerned that theexam bore no reflection to any of thepractice questions they had sat Thesacrifices they had made all seemedworthless said several sitters Theyare now wondering who protectsthem from unfair exams and

examiners As one put it ldquoThereshould be someone representingstudentsrsquo concernsrdquo

F6 was another paper that stoodout early in week one of theDecember sitting Q2 on corporatetax liability was the nightmare herefor many

Meanwhile F5 sitters found theexam lsquofairrsquo and the P7 exam timepressured One student felt P7 wasthe least lsquoauditrsquo paper they had seenfor some timebull Go to wwwpqmagazinecouk seewhat students thought of the otherpapers We will also have feedbackfrom tutors in our next issue

Embrace CIMArsquos brave new world

lsquoSuper humansrsquo needed

Itrsquos time for CIMA PQs to forget aboutlsquocore areasrsquo and lsquoexam tipsrsquo and embracethe brave new world of the 2015 syllabussays HTFTrsquos Vicky Taylor A packed jointCIMAHTFT seminar in Birminghamrecently heard about what really liesahead ndash warts and all

Taylor stressed the first thing to put tobed was the fact that these new multiplechoice tests will be easier She pointedout that the 2015 CIMA student will betested on every component of the learningoutcomes ndash they can forget about getting qualified byonly getting half right The pass rate for the new OTs is

70 and it is 60 for the case studiesTaylor felt the key to success in the new

set up is a combination of mastering andself-motivation stressing ldquoDonrsquot gettrapped on lsquosomeday islandrsquo because thatwill mean you will be a lsquosomedayrsquo qualifiedaccountantrdquo

Taylor talked through the importance ofgetting into a routine mastering onelearning outcome (reward yourself fordoing so) and then moving onto the next

CIMA PQs have to learn to fightcomplacency and understand the importance ofmastering their own destiny she said

CIPFArsquos Ireland launchCIPFA strengthened its base

in Ireland with the launch of CIPFAIreland in early December It willwork to improve the performanceof public sector organisations andto support the Irish government

Contributing to UK plcTraining graduates and

apprentices to gain accounting

qualifications at PwC generatesfuture benefits for the UK of pound188ma year says the Big 4 firm Thisvaluation is part of PwCrsquos secondannual review of its total economicsocial tax and environmentalcontribution estimated at pound412bnin 2013-14 or pound157m per dayOver 1130 people joined PwC thisyear to complete professionalqualifications

CIMA connecting with PQsCIMA has launched an online

community platform for its PQs ndashCIMAconnect This it hopes willserve as a one-stop shop for allstudent needs It will containrelevant study and exam materialwhile also giving students a socialmedia functionality The site willaward badges to students as theyprogress through their qualification

In brief

E3 was an improvement onthe diabolical one set inMay but why does the paperexamine peripheral ratherthan mainstream areas asksone expert in our CIMANovember exam feedback

The questions wereclearer this time aroundsaid the tutor but the examinertends to pick dated models ratherthan the current syllabus-relatedversions Students will have neededto muddle through with theunderstanding that everyone else

was in the same boat a scantconsolation

Pass rates at P2 might alsobe low as many sittersstruggled with questions 2 56 and 7 Students admittedthey were frustrated with Q6and Q7 PQs are hoping thatthe institute take these

frustrations into account whenmarking the paperbull Not all tutors agreed with theabove comments For acomprehensive paper-by-paperrundown turn to page 16

November exam feedback

As part of its ongoing examtransformation plans the ACCA hasnow made its F4 (ENG) and F4(GLO) exams available as on-demand computer-based exams

F4 joins the ACCArsquos suite of CBEexams ndash F1 F2 and F3 The F4paper has changed in both its CBEand paper versions The exam willnow be two hours long and containnew types of questions that testPQsrsquo knowledge on scenarios froma number of different angles

The association wants to ensurethe new-look exam reflects todayrsquosbusiness environment meaningstudents will be better equippedwith the right skills to help them inthe workplace

The ACCA has also revealed thatit will be offering a September 2015sitting in some of its larger marketsThis includes key cities in the UKFrom 2016 it will be offering fourexam sessions a year in all of itsmarkets

Taylor donrsquot get trapped

F4 availableon demand

PQ jan 15 p-10_pq sept 12 p08 04122014 0941 Page 8

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011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

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Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

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TUESDAY 17th FEBRUARY 2015

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GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

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DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

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We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

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Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

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aim your career sights higher

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Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

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To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

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Surname

Company name

Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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Payments must be made on or before the specified date and failure to comply

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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Page 5: PQ magazine January 2015

Plus LSBF gives you more

ACHIEVE MORE BECOME MORE

APPLY NOW

004-005_PQ 0115_PQ 1209 000 28112014 0955 Page 8

PQ news

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PQ magazine Fourth floor Central House 142 Central Street London EC1V 8AR | Phone 020 7216 6444 | Email grahampqaccountantcomWebsite wwwpqmagazinecouk | Editorpublisher Graham Hambly grahampqaccountantcom | Advertising manager Polly Thrasivoulou pollypqaccountantcom

Associate editor Adam Riches | Art editor Tim Parker | Subscriptions dompqaccountantcom | Contributors Robert Bruce Prem Sikka Tony Kelly Phil Gammon Jo Daley Richard Heaton | Origination and print services by Classified Central Media

Published by PQ Publishing copy PQ Publishing 2014

If you have any problems with delivery or if you want to change your delivery address please email dompqaccountantcom

lsquoDM failrsquo forTwitter CFOItrsquos what we all dread ndash pressing thesend button on a tweet that shouldhave been a directmessage The lsquoDMfailrsquo can lead to realembarrassment andridicule but imaginewhat sort of pressyou would get if you were the CFOof the social network Twitter and youdid it Anthony Noto who joinedTwitter this year as its finance chieftweeted a message about a takeoverdeal which was obviously intendedfor private eyes only Notorsquos tweetread ldquoI still think we should buythem He is on your schedule forDec 15helliprdquo and was quicklydeleted But the post had alreadybeen captured by an eagle-eyedjournalist

CIMA has told PQ magazine that itwill publish the pass rates of itsnew online OT exams (there arenine of them) sometime in July2015 It feels that the pass rateswill be more meaningful after acritical mass of students have satthe tests

Thereafter however it ispromising to publish pass ratesevery three months to coincidewith the case study results

The OT exams themselves will beavailable from 2 January and CIMAwill be keenly looking to see theuptake

CIMArsquos director of learning PeterStewart reiterated that the casestudy exams will remain at fourtimes a year ndash in February May

August and November The plan isto offer the operational exams inweek two of the monthmanagement in week three and

CIMA PASS RATE DATES

One of the more bizarre aspects ofbusiness is that whenever the Britishpublic is asked which businessperson they most admire they giveRichard Branson as their answerThere is a deeper problem here thanthe collective view that a beardedself-publicist is seen as epitomisingbusiness The public knows andunderstands too little of businessAnd what they think they know tendsto be clicheacute

Take the recruitment of companyboards The clicheacute is that it is allcronyism nepotism and old-schoolconnections And it can be But timeshave changed and people havenrsquotnoticed I was talking recently to thehead of a thriving young businessand was surprised at their choice ofchairman a man who journalistswould describe as a serialentrepreneur How did they find himThe truth was far stranger than theperceived clicheacute

One evening the bright young guywho runs the business was outvolunteering delivering food to thehomeless Late in the evening a fightbroke out among some roughsleepers And the door of the houseopposite opened and someone cameout to help break it up They all gottalking It transpired that thepeacemaker was involved in manybusiness start-ups Our youngvolunteer described his business Itstruck a chord As a result theyrealised they had found the chairmanthey needed

The business is now expandinghappily with confidence andcommon-sense all around It isexactly how these things ought tohappen And to be fair it is verysimilar to how it all happened in thepast Like-minded people meetrealise they share each otherrsquosvalues are enthusiastic about how totake a business forward and thenpool their ideas and resources to doso But it couldnrsquot be further from theidea of the old-school tie

ROBERTBRUCEUK publicshould lookbeyond theclicheacutes

Robert Bruce is an award-winning writer onaccountancy for The Times

strategic in week four Theexception will be FebruaryMarchwhen CIMA will offer everything twoweeks later

There will be five different casestudies (in terms of lsquounseenrsquotriggers and tasks but they all havea single common pre-seen)Students will then be assigned theircase randomly in the test centre

CIMA has also released anapproved calculator list for the firsttime (see page 18 for the full list)

So how much will all this costWell the OTs come in at pound70 apop The first two case studies costpound115 each with the final casestudy priced at pound175 That meansit will cost just over pound1000 to sit allthe professional level exams

Minchington to leave the ACCAThe ACCA is looking for a new executivedirector strategy and development afterClare Minchington announced she isleaving the association after 15 yearsservice Minchington (pictured) willdepart in March 2015 and told PQ thatshe plans to build a portfolio of non-executive audit committee work Her aimis to lsquobe therersquo for her son who has just

started school Minchingtonrsquos role wasadvertised in early November in TheSunday Times

We are told that the successfulcandidate needs to be ldquoof outstandingintellectual calibre with an exceptionaltrack record of leadership managementand innovation in a relevant fieldrdquo

She will be missed by PQ magazine

Stewart four case study sittings

PQ jan 15 p6 ccm_pq aprl08 p04 04122014 1343 Page 1

We have combined Taught Revision and Exam Practicehelliphellipand we are so confident that all our 2015 CIMA

programmes are Lifetime Pass Assured guaranteed

To book your CIMA 2015 programme

visit bppcomcima or call 03331 221 296^

Full terms and conditions apply wwwbppcomtermsllifetime-pass-assurance The new Lifetime Pass Assurance Scheme does not apply to course purchases made before 24th November 2014 and

cannot be used in conjunction with any other ofer or promotion run by any BPP group company No cash alternative available Full terms and conditions apply wwwbppcomtermslprofessional-

development-courses To qualify for ten Professional Development courses with BPP Professional Education Limited (ldquoBPP PErdquo) free of charge two CIMA papers must be booked at the same time Only

certain online Professional Development Courses apply Full terms and conditions apply wwwbppcomtermslbpp-payment-plan The BPP Payment Plan is only available when purchasing applicable

ACCA and CIMA courses The BPP Payment Plan is ofered subject to availability and acceptance of your application for the BPP Payment Plan is at the sole discretion of BPP deg 81 is the average pass rate

for students that booked through BPPrsquos Pass Ready Solution sitting Operational Management and Strategic papers in the May 2014 exams ^ Calls charged at local rates

81

CIMA Pass Ratesdeg

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007_PQ 0115_PQ 1209 000 02122014 1428 Page 7

8 PQ Magazine January 2015

PQ news

The ACCA has unveiled the 30centres it will be using for theSeptember 2015 exams ndash the first-ever lsquoadditional exam sessionrsquo

The countries due to offer theexams are the UK IrelandVietnam Kenya Ghana ZambiaMauritius Uganda ZimbabweNigeria China and Malaysia

The ACCA has said that nextSeptemberrsquos exams should givesome of its larger markets theopportunity to use this new sessionIt also means around 25 of ACCAstudents will be able to chose to sitin September

But where asked one top tutorwere the centres in PakistanSingapore the Middle East orEastern Europe He said ldquoIf theACCA wants it to be a trueopportunity for all its markets to testthe water then instead of offeringfour chances to sit the exams inScotland and five in Malaysia it

would seem logical to offer at leastone centre in Pakistanrdquo

The exam timetables will alsochange from September 2015 Theexams will run over a week ratherthan the current eight days So forexample the September 2015exams run from Monday 7 to Friday

11 PQs will be able to sit theDecember 2015 exams from 7 to 11 December

The full list of cities where theACCA is offering the September2015 sessionbull Ireland Cork Dublinbull UK Aberdeen BelfastBirmingham Cardiff DundeeEdinburgh Glasgow LeedsLondon Manchester Newcastlebull Vietnam Ho Chi Minh Citybull Kenya Nairobibull Ghana Accrabull Zambia Lusakabull Mauritius Mauritiusbull Uganda Kampalabull Zimbabwe Hararebull Nigeria Lagosbull China Beijing GuangzhoNanjing Shanghaibull Malaysia Federal Territory JohorBahru Kuching Pulau PinangSelangor

CIPFA choses partner

ACCA unveils Septembercentres for 2015 exams

New interim requirementsThe Financial Reporting

Council (FRC) has issued exposuredraft FRED 56 Draft FRS 104Interim Financial reporting whichwill revise the FRCrsquos existingguidance on interim financialreports for consistency with newUK and Irish GAAP (FRS 102) Thecouncil is also proposing towithdraw the Reporting StatementlsquoPreliminary announcementsrsquo

MIA and ACCA sign MoUThe Malaysian Institute of

Accountants (MIA) and the ACCAhave signed a memorandum ofunderstanding (MoU) which willresult in them working together todevelop the profession inMalaysia and the widerregion The ACCA has alsoagreed to offer exemptionsfor nine papers from theACCA qualification (F1 ndashF9) to eligible MIAmembers with initial registrationand exemption fees waived Thisspecial pathway is in force for threeyears from the date of signing

BDO redundanciesBDO is reportedly cutting

20 of its restructuring workforcebecause of the slowdown in

companyfailures Thefirm whichmerged withPKF last year isnow consultingon some 50

redundancies across its 20 or soUK offices A BDO spokesmansaid ldquoThe volume of insolvencyassignments has reduced and we

see no likelihood of this increasingin the foreseeable futurerdquo

Giveaway winnersWell done ACCA PQ Graeme

Gorthy He was the winner of ourholiday competition in conjunctionwith Home Learning College And thewinners of the ever-so-popularspecial edition Canon calculatorswere Jonathan Adams ChandniBansal Doreen Clarke Jeremy Davisand James Swoden Remember tocheck wwwpqmagazinecouk forthe list of all the giveaway winners

In brief

CIPFA has unveiled Calibrand as its officiale-assessment partner for the institutersquosnew-look professional qualification (PQ)

Through the partnership online methodsof assessment will be made available tostudents worldwide who are training fortheir CIPFA PQ providing a flexible routeinto the profession

Fully operational from 2016 Calibrandwill be responsible for implementing thesoftware globally as part of a five-year contract

CIPFArsquos Adrian Pulham said that CIPFA chose Calibrand becauseit provided the best overall solution to the challenges the institutefaces as it expands globally He explained ldquoWe are confident thatthey will deliver an excellent service to CIPFA and those studyingwith us We are particularly confident in their delivery as theirmarking essay and case-study exam solutions fitted very closelywith our existing methodologyrdquo

In every decade since the 1970s theUK has had a financial crisis The1970s had a secondary banking crashthat spread to the insurance and theproperty sector The state bailed themall out This was followed by a crisiscaused by the collapse of JonsonMatthey Barlow Clowes and frauds atLloydrsquos of London The 1990s exposedfraud at BCCI and Barings

The same story continued into thenew millennium Banks boasting auditcommittees ethics committees andeminent accounting firms as auditorswere bailed out within days ofreceiving unqualified audit opinionsLehman Brothers and Bear Stearnswent to the wall The troubles at theCo-op Bank are yet to be resolved

Yet business executives collectedlarge remuneration packets auditorscollected fees and taxpayers pickedup the bailout bills The accountancyprofession has been adept at tweakingaccounting and auditing standardscodes of ethics and disciplinaryarrangements that have delivered solittle Corporate governance codeshave hardly improved governanceRepeated fines on audit firms andbanks only show how ineffectiveprevious reforms have been This stateof affairs continues because thecorporate interests responsible for thecrisis have colonised publicpolicymaking bodies Reducing theirinfluence on public policymaking is anecessary condition for effectivereforms but remains a distantpossibility Those who fail to learnfrom history are doomed to repeat it

PREMSIKKA

Learn fromhistory ndash orpay theprice

Prem Sikka is professor of accountancy at theUniversity of Essex

lsquoBomb plotrsquo foiledAAT students attending NewcastleCollege were recently told to lsquoattend thecollege as usualrsquo as news filter out of afoiled bomb plot In early Novemberpolice revealed that a plot to causelsquoserious harmrsquo had been prevented Ateenager Liam Lyburd was arrestedafter homemade explosives werediscovered at a house in Hamilton PlaceNewcastle

Northumbria Police stated that it wasconfident intent to cause serious harm atNewcastle College has been prevented

Principal Carole Kitching stressed ldquoIwould like to reassure staff studentsand their families that their safety hasbeen paramount to us and the collegeremains a safe place to studyrdquo

Adrian Pulham

pq jan 15 p8 ccm_pq sept 12 p08 04122014 1342 Page 8

ONLINE ACCA COURSES DESIGNED BY INDUSTRY EXPERTS

ACCESSIBLE 247

GLOBAL LIVE ONLINE TUITION AND REVISION SESSIONS

Congratulationson completing your ACCA exam

wwwstudyinteractiveorgPQ 020 3535 1274

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009_PQ 0115_PQ 1209 000 01122014 1359 Page 7

10 PQ Magazine January 2015

PQ news

I am a first-generation graduate froma working-class backgroundeducated at a comprehensive schoolin my home town of Doncaster Ibenefited from free school meals anda full university grant that covered mytuition and maintenance fees The factthat I am now the Vice-Chancellor ofBPP University is testament to theUKrsquos commitment to upward mobility

But much has changed in the pastthree decades loans replaced grantsas the number of people accessinghigher education grew Now theHigher Education Commission hasmade 16 recommendations to helpsafeguard the financial sustainabilityof UK higher education At the heart ofits analysis is the conclusion that thestudent loan system is financiallyunsustainable current projections arethat for every pound1 lent 45p will not bepaid back the student loan book isset to grow from pound46bn to pound330bnbetween 2013 and 2044 TheDepartment of BIS Select Committeeand the Public Accounts Committeehave all questioned the viability of theloans scheme Universities arelobbying for the current fees cap ofpound9000 a year to be lifted so they cancharge students even more FormerEducation Secretary Charles Clarkehas called for the repayment thresholdto be reduced to pound15000 ndash from thecurrent pound21000 ndash to ensure moreloans are repaid and to incentiviseearly repayment

It strikes me that the accountingprofession with its-earn-while-you-learn routes from AATCAT upwards isa model of how higher education canbe both relevant and affordable It issomething that policy makers are nowrevisiting as a way forward for thenext generation

CARLLYGO

Accountancyoffers modelfor fundingof education

Professor Carl Lygo ischief executive of BPP

Shocked and angry P4 ACCAexam sitters leaving theDecember sitting wondered ifthey have been studying thewrong syllabus material Theirupset was clear as oneclaimed the examiner waslooking for lsquosuper humansrsquo topass this paper The upsetwas so tangible that manypleaded for the return of the oldexaminer

The real problem appears to beQ1 which many PQs are claiming isgetting harder and harder at eachsitting ldquoIt was the hardest exam ofmy liferdquo said one sitter

Students were concerned that theexam bore no reflection to any of thepractice questions they had sat Thesacrifices they had made all seemedworthless said several sitters Theyare now wondering who protectsthem from unfair exams and

examiners As one put it ldquoThereshould be someone representingstudentsrsquo concernsrdquo

F6 was another paper that stoodout early in week one of theDecember sitting Q2 on corporatetax liability was the nightmare herefor many

Meanwhile F5 sitters found theexam lsquofairrsquo and the P7 exam timepressured One student felt P7 wasthe least lsquoauditrsquo paper they had seenfor some timebull Go to wwwpqmagazinecouk seewhat students thought of the otherpapers We will also have feedbackfrom tutors in our next issue

Embrace CIMArsquos brave new world

lsquoSuper humansrsquo needed

Itrsquos time for CIMA PQs to forget aboutlsquocore areasrsquo and lsquoexam tipsrsquo and embracethe brave new world of the 2015 syllabussays HTFTrsquos Vicky Taylor A packed jointCIMAHTFT seminar in Birminghamrecently heard about what really liesahead ndash warts and all

Taylor stressed the first thing to put tobed was the fact that these new multiplechoice tests will be easier She pointedout that the 2015 CIMA student will betested on every component of the learningoutcomes ndash they can forget about getting qualified byonly getting half right The pass rate for the new OTs is

70 and it is 60 for the case studiesTaylor felt the key to success in the new

set up is a combination of mastering andself-motivation stressing ldquoDonrsquot gettrapped on lsquosomeday islandrsquo because thatwill mean you will be a lsquosomedayrsquo qualifiedaccountantrdquo

Taylor talked through the importance ofgetting into a routine mastering onelearning outcome (reward yourself fordoing so) and then moving onto the next

CIMA PQs have to learn to fightcomplacency and understand the importance ofmastering their own destiny she said

CIPFArsquos Ireland launchCIPFA strengthened its base

in Ireland with the launch of CIPFAIreland in early December It willwork to improve the performanceof public sector organisations andto support the Irish government

Contributing to UK plcTraining graduates and

apprentices to gain accounting

qualifications at PwC generatesfuture benefits for the UK of pound188ma year says the Big 4 firm Thisvaluation is part of PwCrsquos secondannual review of its total economicsocial tax and environmentalcontribution estimated at pound412bnin 2013-14 or pound157m per dayOver 1130 people joined PwC thisyear to complete professionalqualifications

CIMA connecting with PQsCIMA has launched an online

community platform for its PQs ndashCIMAconnect This it hopes willserve as a one-stop shop for allstudent needs It will containrelevant study and exam materialwhile also giving students a socialmedia functionality The site willaward badges to students as theyprogress through their qualification

In brief

E3 was an improvement onthe diabolical one set inMay but why does the paperexamine peripheral ratherthan mainstream areas asksone expert in our CIMANovember exam feedback

The questions wereclearer this time aroundsaid the tutor but the examinertends to pick dated models ratherthan the current syllabus-relatedversions Students will have neededto muddle through with theunderstanding that everyone else

was in the same boat a scantconsolation

Pass rates at P2 might alsobe low as many sittersstruggled with questions 2 56 and 7 Students admittedthey were frustrated with Q6and Q7 PQs are hoping thatthe institute take these

frustrations into account whenmarking the paperbull Not all tutors agreed with theabove comments For acomprehensive paper-by-paperrundown turn to page 16

November exam feedback

As part of its ongoing examtransformation plans the ACCA hasnow made its F4 (ENG) and F4(GLO) exams available as on-demand computer-based exams

F4 joins the ACCArsquos suite of CBEexams ndash F1 F2 and F3 The F4paper has changed in both its CBEand paper versions The exam willnow be two hours long and containnew types of questions that testPQsrsquo knowledge on scenarios froma number of different angles

The association wants to ensurethe new-look exam reflects todayrsquosbusiness environment meaningstudents will be better equippedwith the right skills to help them inthe workplace

The ACCA has also revealed thatit will be offering a September 2015sitting in some of its larger marketsThis includes key cities in the UKFrom 2016 it will be offering fourexam sessions a year in all of itsmarkets

Taylor donrsquot get trapped

F4 availableon demand

PQ jan 15 p-10_pq sept 12 p08 04122014 0941 Page 8

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011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

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Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

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020 7400 6772

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Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

TUESDAY 10th FEBRUARY 2015

TUESDAY 17th FEBRUARY 2015

TUESDAY 24th FEBRUARY 2015t COME ALONG AND MEET OUR LECTURERS

t ENROL ON OUR OPEN DAYS AND

GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

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Treat yourself to a new job

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Part-Qualified Accountants

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CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

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To find out more about planning your career for the new year or to see our latest

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Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

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PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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Page 6: PQ magazine January 2015

PQ news

wwwLSBForgukSHOP

PART-TIME E-SHOP

Book ACCA amp CIMA papers

in a few simple steps online

View timetables

Exclusive offers

PQ magazine Fourth floor Central House 142 Central Street London EC1V 8AR | Phone 020 7216 6444 | Email grahampqaccountantcomWebsite wwwpqmagazinecouk | Editorpublisher Graham Hambly grahampqaccountantcom | Advertising manager Polly Thrasivoulou pollypqaccountantcom

Associate editor Adam Riches | Art editor Tim Parker | Subscriptions dompqaccountantcom | Contributors Robert Bruce Prem Sikka Tony Kelly Phil Gammon Jo Daley Richard Heaton | Origination and print services by Classified Central Media

Published by PQ Publishing copy PQ Publishing 2014

If you have any problems with delivery or if you want to change your delivery address please email dompqaccountantcom

lsquoDM failrsquo forTwitter CFOItrsquos what we all dread ndash pressing thesend button on a tweet that shouldhave been a directmessage The lsquoDMfailrsquo can lead to realembarrassment andridicule but imaginewhat sort of pressyou would get if you were the CFOof the social network Twitter and youdid it Anthony Noto who joinedTwitter this year as its finance chieftweeted a message about a takeoverdeal which was obviously intendedfor private eyes only Notorsquos tweetread ldquoI still think we should buythem He is on your schedule forDec 15helliprdquo and was quicklydeleted But the post had alreadybeen captured by an eagle-eyedjournalist

CIMA has told PQ magazine that itwill publish the pass rates of itsnew online OT exams (there arenine of them) sometime in July2015 It feels that the pass rateswill be more meaningful after acritical mass of students have satthe tests

Thereafter however it ispromising to publish pass ratesevery three months to coincidewith the case study results

The OT exams themselves will beavailable from 2 January and CIMAwill be keenly looking to see theuptake

CIMArsquos director of learning PeterStewart reiterated that the casestudy exams will remain at fourtimes a year ndash in February May

August and November The plan isto offer the operational exams inweek two of the monthmanagement in week three and

CIMA PASS RATE DATES

One of the more bizarre aspects ofbusiness is that whenever the Britishpublic is asked which businessperson they most admire they giveRichard Branson as their answerThere is a deeper problem here thanthe collective view that a beardedself-publicist is seen as epitomisingbusiness The public knows andunderstands too little of businessAnd what they think they know tendsto be clicheacute

Take the recruitment of companyboards The clicheacute is that it is allcronyism nepotism and old-schoolconnections And it can be But timeshave changed and people havenrsquotnoticed I was talking recently to thehead of a thriving young businessand was surprised at their choice ofchairman a man who journalistswould describe as a serialentrepreneur How did they find himThe truth was far stranger than theperceived clicheacute

One evening the bright young guywho runs the business was outvolunteering delivering food to thehomeless Late in the evening a fightbroke out among some roughsleepers And the door of the houseopposite opened and someone cameout to help break it up They all gottalking It transpired that thepeacemaker was involved in manybusiness start-ups Our youngvolunteer described his business Itstruck a chord As a result theyrealised they had found the chairmanthey needed

The business is now expandinghappily with confidence andcommon-sense all around It isexactly how these things ought tohappen And to be fair it is verysimilar to how it all happened in thepast Like-minded people meetrealise they share each otherrsquosvalues are enthusiastic about how totake a business forward and thenpool their ideas and resources to doso But it couldnrsquot be further from theidea of the old-school tie

ROBERTBRUCEUK publicshould lookbeyond theclicheacutes

Robert Bruce is an award-winning writer onaccountancy for The Times

strategic in week four Theexception will be FebruaryMarchwhen CIMA will offer everything twoweeks later

There will be five different casestudies (in terms of lsquounseenrsquotriggers and tasks but they all havea single common pre-seen)Students will then be assigned theircase randomly in the test centre

CIMA has also released anapproved calculator list for the firsttime (see page 18 for the full list)

So how much will all this costWell the OTs come in at pound70 apop The first two case studies costpound115 each with the final casestudy priced at pound175 That meansit will cost just over pound1000 to sit allthe professional level exams

Minchington to leave the ACCAThe ACCA is looking for a new executivedirector strategy and development afterClare Minchington announced she isleaving the association after 15 yearsservice Minchington (pictured) willdepart in March 2015 and told PQ thatshe plans to build a portfolio of non-executive audit committee work Her aimis to lsquobe therersquo for her son who has just

started school Minchingtonrsquos role wasadvertised in early November in TheSunday Times

We are told that the successfulcandidate needs to be ldquoof outstandingintellectual calibre with an exceptionaltrack record of leadership managementand innovation in a relevant fieldrdquo

She will be missed by PQ magazine

Stewart four case study sittings

PQ jan 15 p6 ccm_pq aprl08 p04 04122014 1343 Page 1

We have combined Taught Revision and Exam Practicehelliphellipand we are so confident that all our 2015 CIMA

programmes are Lifetime Pass Assured guaranteed

To book your CIMA 2015 programme

visit bppcomcima or call 03331 221 296^

Full terms and conditions apply wwwbppcomtermsllifetime-pass-assurance The new Lifetime Pass Assurance Scheme does not apply to course purchases made before 24th November 2014 and

cannot be used in conjunction with any other ofer or promotion run by any BPP group company No cash alternative available Full terms and conditions apply wwwbppcomtermslprofessional-

development-courses To qualify for ten Professional Development courses with BPP Professional Education Limited (ldquoBPP PErdquo) free of charge two CIMA papers must be booked at the same time Only

certain online Professional Development Courses apply Full terms and conditions apply wwwbppcomtermslbpp-payment-plan The BPP Payment Plan is only available when purchasing applicable

ACCA and CIMA courses The BPP Payment Plan is ofered subject to availability and acceptance of your application for the BPP Payment Plan is at the sole discretion of BPP deg 81 is the average pass rate

for students that booked through BPPrsquos Pass Ready Solution sitting Operational Management and Strategic papers in the May 2014 exams ^ Calls charged at local rates

81

CIMA Pass Ratesdeg

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007_PQ 0115_PQ 1209 000 02122014 1428 Page 7

8 PQ Magazine January 2015

PQ news

The ACCA has unveiled the 30centres it will be using for theSeptember 2015 exams ndash the first-ever lsquoadditional exam sessionrsquo

The countries due to offer theexams are the UK IrelandVietnam Kenya Ghana ZambiaMauritius Uganda ZimbabweNigeria China and Malaysia

The ACCA has said that nextSeptemberrsquos exams should givesome of its larger markets theopportunity to use this new sessionIt also means around 25 of ACCAstudents will be able to chose to sitin September

But where asked one top tutorwere the centres in PakistanSingapore the Middle East orEastern Europe He said ldquoIf theACCA wants it to be a trueopportunity for all its markets to testthe water then instead of offeringfour chances to sit the exams inScotland and five in Malaysia it

would seem logical to offer at leastone centre in Pakistanrdquo

The exam timetables will alsochange from September 2015 Theexams will run over a week ratherthan the current eight days So forexample the September 2015exams run from Monday 7 to Friday

11 PQs will be able to sit theDecember 2015 exams from 7 to 11 December

The full list of cities where theACCA is offering the September2015 sessionbull Ireland Cork Dublinbull UK Aberdeen BelfastBirmingham Cardiff DundeeEdinburgh Glasgow LeedsLondon Manchester Newcastlebull Vietnam Ho Chi Minh Citybull Kenya Nairobibull Ghana Accrabull Zambia Lusakabull Mauritius Mauritiusbull Uganda Kampalabull Zimbabwe Hararebull Nigeria Lagosbull China Beijing GuangzhoNanjing Shanghaibull Malaysia Federal Territory JohorBahru Kuching Pulau PinangSelangor

CIPFA choses partner

ACCA unveils Septembercentres for 2015 exams

New interim requirementsThe Financial Reporting

Council (FRC) has issued exposuredraft FRED 56 Draft FRS 104Interim Financial reporting whichwill revise the FRCrsquos existingguidance on interim financialreports for consistency with newUK and Irish GAAP (FRS 102) Thecouncil is also proposing towithdraw the Reporting StatementlsquoPreliminary announcementsrsquo

MIA and ACCA sign MoUThe Malaysian Institute of

Accountants (MIA) and the ACCAhave signed a memorandum ofunderstanding (MoU) which willresult in them working together todevelop the profession inMalaysia and the widerregion The ACCA has alsoagreed to offer exemptionsfor nine papers from theACCA qualification (F1 ndashF9) to eligible MIAmembers with initial registrationand exemption fees waived Thisspecial pathway is in force for threeyears from the date of signing

BDO redundanciesBDO is reportedly cutting

20 of its restructuring workforcebecause of the slowdown in

companyfailures Thefirm whichmerged withPKF last year isnow consultingon some 50

redundancies across its 20 or soUK offices A BDO spokesmansaid ldquoThe volume of insolvencyassignments has reduced and we

see no likelihood of this increasingin the foreseeable futurerdquo

Giveaway winnersWell done ACCA PQ Graeme

Gorthy He was the winner of ourholiday competition in conjunctionwith Home Learning College And thewinners of the ever-so-popularspecial edition Canon calculatorswere Jonathan Adams ChandniBansal Doreen Clarke Jeremy Davisand James Swoden Remember tocheck wwwpqmagazinecouk forthe list of all the giveaway winners

In brief

CIPFA has unveiled Calibrand as its officiale-assessment partner for the institutersquosnew-look professional qualification (PQ)

Through the partnership online methodsof assessment will be made available tostudents worldwide who are training fortheir CIPFA PQ providing a flexible routeinto the profession

Fully operational from 2016 Calibrandwill be responsible for implementing thesoftware globally as part of a five-year contract

CIPFArsquos Adrian Pulham said that CIPFA chose Calibrand becauseit provided the best overall solution to the challenges the institutefaces as it expands globally He explained ldquoWe are confident thatthey will deliver an excellent service to CIPFA and those studyingwith us We are particularly confident in their delivery as theirmarking essay and case-study exam solutions fitted very closelywith our existing methodologyrdquo

In every decade since the 1970s theUK has had a financial crisis The1970s had a secondary banking crashthat spread to the insurance and theproperty sector The state bailed themall out This was followed by a crisiscaused by the collapse of JonsonMatthey Barlow Clowes and frauds atLloydrsquos of London The 1990s exposedfraud at BCCI and Barings

The same story continued into thenew millennium Banks boasting auditcommittees ethics committees andeminent accounting firms as auditorswere bailed out within days ofreceiving unqualified audit opinionsLehman Brothers and Bear Stearnswent to the wall The troubles at theCo-op Bank are yet to be resolved

Yet business executives collectedlarge remuneration packets auditorscollected fees and taxpayers pickedup the bailout bills The accountancyprofession has been adept at tweakingaccounting and auditing standardscodes of ethics and disciplinaryarrangements that have delivered solittle Corporate governance codeshave hardly improved governanceRepeated fines on audit firms andbanks only show how ineffectiveprevious reforms have been This stateof affairs continues because thecorporate interests responsible for thecrisis have colonised publicpolicymaking bodies Reducing theirinfluence on public policymaking is anecessary condition for effectivereforms but remains a distantpossibility Those who fail to learnfrom history are doomed to repeat it

PREMSIKKA

Learn fromhistory ndash orpay theprice

Prem Sikka is professor of accountancy at theUniversity of Essex

lsquoBomb plotrsquo foiledAAT students attending NewcastleCollege were recently told to lsquoattend thecollege as usualrsquo as news filter out of afoiled bomb plot In early Novemberpolice revealed that a plot to causelsquoserious harmrsquo had been prevented Ateenager Liam Lyburd was arrestedafter homemade explosives werediscovered at a house in Hamilton PlaceNewcastle

Northumbria Police stated that it wasconfident intent to cause serious harm atNewcastle College has been prevented

Principal Carole Kitching stressed ldquoIwould like to reassure staff studentsand their families that their safety hasbeen paramount to us and the collegeremains a safe place to studyrdquo

Adrian Pulham

pq jan 15 p8 ccm_pq sept 12 p08 04122014 1342 Page 8

ONLINE ACCA COURSES DESIGNED BY INDUSTRY EXPERTS

ACCESSIBLE 247

GLOBAL LIVE ONLINE TUITION AND REVISION SESSIONS

Congratulationson completing your ACCA exam

wwwstudyinteractiveorgPQ 020 3535 1274

TampCs apply 52$)342$-2+)234ř2$amp)34$2$)4($ŘŘ4($2542)$3Řor full terms and conditions6)3)4 wwwstudyinteractiveorgterms-and-conditions

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009_PQ 0115_PQ 1209 000 01122014 1359 Page 7

10 PQ Magazine January 2015

PQ news

I am a first-generation graduate froma working-class backgroundeducated at a comprehensive schoolin my home town of Doncaster Ibenefited from free school meals anda full university grant that covered mytuition and maintenance fees The factthat I am now the Vice-Chancellor ofBPP University is testament to theUKrsquos commitment to upward mobility

But much has changed in the pastthree decades loans replaced grantsas the number of people accessinghigher education grew Now theHigher Education Commission hasmade 16 recommendations to helpsafeguard the financial sustainabilityof UK higher education At the heart ofits analysis is the conclusion that thestudent loan system is financiallyunsustainable current projections arethat for every pound1 lent 45p will not bepaid back the student loan book isset to grow from pound46bn to pound330bnbetween 2013 and 2044 TheDepartment of BIS Select Committeeand the Public Accounts Committeehave all questioned the viability of theloans scheme Universities arelobbying for the current fees cap ofpound9000 a year to be lifted so they cancharge students even more FormerEducation Secretary Charles Clarkehas called for the repayment thresholdto be reduced to pound15000 ndash from thecurrent pound21000 ndash to ensure moreloans are repaid and to incentiviseearly repayment

It strikes me that the accountingprofession with its-earn-while-you-learn routes from AATCAT upwards isa model of how higher education canbe both relevant and affordable It issomething that policy makers are nowrevisiting as a way forward for thenext generation

CARLLYGO

Accountancyoffers modelfor fundingof education

Professor Carl Lygo ischief executive of BPP

Shocked and angry P4 ACCAexam sitters leaving theDecember sitting wondered ifthey have been studying thewrong syllabus material Theirupset was clear as oneclaimed the examiner waslooking for lsquosuper humansrsquo topass this paper The upsetwas so tangible that manypleaded for the return of the oldexaminer

The real problem appears to beQ1 which many PQs are claiming isgetting harder and harder at eachsitting ldquoIt was the hardest exam ofmy liferdquo said one sitter

Students were concerned that theexam bore no reflection to any of thepractice questions they had sat Thesacrifices they had made all seemedworthless said several sitters Theyare now wondering who protectsthem from unfair exams and

examiners As one put it ldquoThereshould be someone representingstudentsrsquo concernsrdquo

F6 was another paper that stoodout early in week one of theDecember sitting Q2 on corporatetax liability was the nightmare herefor many

Meanwhile F5 sitters found theexam lsquofairrsquo and the P7 exam timepressured One student felt P7 wasthe least lsquoauditrsquo paper they had seenfor some timebull Go to wwwpqmagazinecouk seewhat students thought of the otherpapers We will also have feedbackfrom tutors in our next issue

Embrace CIMArsquos brave new world

lsquoSuper humansrsquo needed

Itrsquos time for CIMA PQs to forget aboutlsquocore areasrsquo and lsquoexam tipsrsquo and embracethe brave new world of the 2015 syllabussays HTFTrsquos Vicky Taylor A packed jointCIMAHTFT seminar in Birminghamrecently heard about what really liesahead ndash warts and all

Taylor stressed the first thing to put tobed was the fact that these new multiplechoice tests will be easier She pointedout that the 2015 CIMA student will betested on every component of the learningoutcomes ndash they can forget about getting qualified byonly getting half right The pass rate for the new OTs is

70 and it is 60 for the case studiesTaylor felt the key to success in the new

set up is a combination of mastering andself-motivation stressing ldquoDonrsquot gettrapped on lsquosomeday islandrsquo because thatwill mean you will be a lsquosomedayrsquo qualifiedaccountantrdquo

Taylor talked through the importance ofgetting into a routine mastering onelearning outcome (reward yourself fordoing so) and then moving onto the next

CIMA PQs have to learn to fightcomplacency and understand the importance ofmastering their own destiny she said

CIPFArsquos Ireland launchCIPFA strengthened its base

in Ireland with the launch of CIPFAIreland in early December It willwork to improve the performanceof public sector organisations andto support the Irish government

Contributing to UK plcTraining graduates and

apprentices to gain accounting

qualifications at PwC generatesfuture benefits for the UK of pound188ma year says the Big 4 firm Thisvaluation is part of PwCrsquos secondannual review of its total economicsocial tax and environmentalcontribution estimated at pound412bnin 2013-14 or pound157m per dayOver 1130 people joined PwC thisyear to complete professionalqualifications

CIMA connecting with PQsCIMA has launched an online

community platform for its PQs ndashCIMAconnect This it hopes willserve as a one-stop shop for allstudent needs It will containrelevant study and exam materialwhile also giving students a socialmedia functionality The site willaward badges to students as theyprogress through their qualification

In brief

E3 was an improvement onthe diabolical one set inMay but why does the paperexamine peripheral ratherthan mainstream areas asksone expert in our CIMANovember exam feedback

The questions wereclearer this time aroundsaid the tutor but the examinertends to pick dated models ratherthan the current syllabus-relatedversions Students will have neededto muddle through with theunderstanding that everyone else

was in the same boat a scantconsolation

Pass rates at P2 might alsobe low as many sittersstruggled with questions 2 56 and 7 Students admittedthey were frustrated with Q6and Q7 PQs are hoping thatthe institute take these

frustrations into account whenmarking the paperbull Not all tutors agreed with theabove comments For acomprehensive paper-by-paperrundown turn to page 16

November exam feedback

As part of its ongoing examtransformation plans the ACCA hasnow made its F4 (ENG) and F4(GLO) exams available as on-demand computer-based exams

F4 joins the ACCArsquos suite of CBEexams ndash F1 F2 and F3 The F4paper has changed in both its CBEand paper versions The exam willnow be two hours long and containnew types of questions that testPQsrsquo knowledge on scenarios froma number of different angles

The association wants to ensurethe new-look exam reflects todayrsquosbusiness environment meaningstudents will be better equippedwith the right skills to help them inthe workplace

The ACCA has also revealed thatit will be offering a September 2015sitting in some of its larger marketsThis includes key cities in the UKFrom 2016 it will be offering fourexam sessions a year in all of itsmarkets

Taylor donrsquot get trapped

F4 availableon demand

PQ jan 15 p-10_pq sept 12 p08 04122014 0941 Page 8

Study a DEGREE plus your ACCA in Ireland

Combine a Bachelorrsquos or an MBA with the ACCA qualification to improve

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011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

LCA Business School London 19 Charterhouse Street London EC1N 6RA

Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

Speak to a personal

course advisor on

020 7400 6772

or enrol with us on-line

wwwlcaangliaacuk

Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

TUESDAY 10th FEBRUARY 2015

TUESDAY 17th FEBRUARY 2015

TUESDAY 24th FEBRUARY 2015t COME ALONG AND MEET OUR LECTURERS

t ENROL ON OUR OPEN DAYS AND

GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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ACCA CAT F1-3 F4-F9 P Papers

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ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

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PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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0161 669 4272

Payments must be made on or before the specified date and failure to comply

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

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043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
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  • LowRes004_PQ 0115
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  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
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  • LowRes020_PQ 0115
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Page 7: PQ magazine January 2015

We have combined Taught Revision and Exam Practicehelliphellipand we are so confident that all our 2015 CIMA

programmes are Lifetime Pass Assured guaranteed

To book your CIMA 2015 programme

visit bppcomcima or call 03331 221 296^

Full terms and conditions apply wwwbppcomtermsllifetime-pass-assurance The new Lifetime Pass Assurance Scheme does not apply to course purchases made before 24th November 2014 and

cannot be used in conjunction with any other ofer or promotion run by any BPP group company No cash alternative available Full terms and conditions apply wwwbppcomtermslprofessional-

development-courses To qualify for ten Professional Development courses with BPP Professional Education Limited (ldquoBPP PErdquo) free of charge two CIMA papers must be booked at the same time Only

certain online Professional Development Courses apply Full terms and conditions apply wwwbppcomtermslbpp-payment-plan The BPP Payment Plan is only available when purchasing applicable

ACCA and CIMA courses The BPP Payment Plan is ofered subject to availability and acceptance of your application for the BPP Payment Plan is at the sole discretion of BPP deg 81 is the average pass rate

for students that booked through BPPrsquos Pass Ready Solution sitting Operational Management and Strategic papers in the May 2014 exams ^ Calls charged at local rates

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007_PQ 0115_PQ 1209 000 02122014 1428 Page 7

8 PQ Magazine January 2015

PQ news

The ACCA has unveiled the 30centres it will be using for theSeptember 2015 exams ndash the first-ever lsquoadditional exam sessionrsquo

The countries due to offer theexams are the UK IrelandVietnam Kenya Ghana ZambiaMauritius Uganda ZimbabweNigeria China and Malaysia

The ACCA has said that nextSeptemberrsquos exams should givesome of its larger markets theopportunity to use this new sessionIt also means around 25 of ACCAstudents will be able to chose to sitin September

But where asked one top tutorwere the centres in PakistanSingapore the Middle East orEastern Europe He said ldquoIf theACCA wants it to be a trueopportunity for all its markets to testthe water then instead of offeringfour chances to sit the exams inScotland and five in Malaysia it

would seem logical to offer at leastone centre in Pakistanrdquo

The exam timetables will alsochange from September 2015 Theexams will run over a week ratherthan the current eight days So forexample the September 2015exams run from Monday 7 to Friday

11 PQs will be able to sit theDecember 2015 exams from 7 to 11 December

The full list of cities where theACCA is offering the September2015 sessionbull Ireland Cork Dublinbull UK Aberdeen BelfastBirmingham Cardiff DundeeEdinburgh Glasgow LeedsLondon Manchester Newcastlebull Vietnam Ho Chi Minh Citybull Kenya Nairobibull Ghana Accrabull Zambia Lusakabull Mauritius Mauritiusbull Uganda Kampalabull Zimbabwe Hararebull Nigeria Lagosbull China Beijing GuangzhoNanjing Shanghaibull Malaysia Federal Territory JohorBahru Kuching Pulau PinangSelangor

CIPFA choses partner

ACCA unveils Septembercentres for 2015 exams

New interim requirementsThe Financial Reporting

Council (FRC) has issued exposuredraft FRED 56 Draft FRS 104Interim Financial reporting whichwill revise the FRCrsquos existingguidance on interim financialreports for consistency with newUK and Irish GAAP (FRS 102) Thecouncil is also proposing towithdraw the Reporting StatementlsquoPreliminary announcementsrsquo

MIA and ACCA sign MoUThe Malaysian Institute of

Accountants (MIA) and the ACCAhave signed a memorandum ofunderstanding (MoU) which willresult in them working together todevelop the profession inMalaysia and the widerregion The ACCA has alsoagreed to offer exemptionsfor nine papers from theACCA qualification (F1 ndashF9) to eligible MIAmembers with initial registrationand exemption fees waived Thisspecial pathway is in force for threeyears from the date of signing

BDO redundanciesBDO is reportedly cutting

20 of its restructuring workforcebecause of the slowdown in

companyfailures Thefirm whichmerged withPKF last year isnow consultingon some 50

redundancies across its 20 or soUK offices A BDO spokesmansaid ldquoThe volume of insolvencyassignments has reduced and we

see no likelihood of this increasingin the foreseeable futurerdquo

Giveaway winnersWell done ACCA PQ Graeme

Gorthy He was the winner of ourholiday competition in conjunctionwith Home Learning College And thewinners of the ever-so-popularspecial edition Canon calculatorswere Jonathan Adams ChandniBansal Doreen Clarke Jeremy Davisand James Swoden Remember tocheck wwwpqmagazinecouk forthe list of all the giveaway winners

In brief

CIPFA has unveiled Calibrand as its officiale-assessment partner for the institutersquosnew-look professional qualification (PQ)

Through the partnership online methodsof assessment will be made available tostudents worldwide who are training fortheir CIPFA PQ providing a flexible routeinto the profession

Fully operational from 2016 Calibrandwill be responsible for implementing thesoftware globally as part of a five-year contract

CIPFArsquos Adrian Pulham said that CIPFA chose Calibrand becauseit provided the best overall solution to the challenges the institutefaces as it expands globally He explained ldquoWe are confident thatthey will deliver an excellent service to CIPFA and those studyingwith us We are particularly confident in their delivery as theirmarking essay and case-study exam solutions fitted very closelywith our existing methodologyrdquo

In every decade since the 1970s theUK has had a financial crisis The1970s had a secondary banking crashthat spread to the insurance and theproperty sector The state bailed themall out This was followed by a crisiscaused by the collapse of JonsonMatthey Barlow Clowes and frauds atLloydrsquos of London The 1990s exposedfraud at BCCI and Barings

The same story continued into thenew millennium Banks boasting auditcommittees ethics committees andeminent accounting firms as auditorswere bailed out within days ofreceiving unqualified audit opinionsLehman Brothers and Bear Stearnswent to the wall The troubles at theCo-op Bank are yet to be resolved

Yet business executives collectedlarge remuneration packets auditorscollected fees and taxpayers pickedup the bailout bills The accountancyprofession has been adept at tweakingaccounting and auditing standardscodes of ethics and disciplinaryarrangements that have delivered solittle Corporate governance codeshave hardly improved governanceRepeated fines on audit firms andbanks only show how ineffectiveprevious reforms have been This stateof affairs continues because thecorporate interests responsible for thecrisis have colonised publicpolicymaking bodies Reducing theirinfluence on public policymaking is anecessary condition for effectivereforms but remains a distantpossibility Those who fail to learnfrom history are doomed to repeat it

PREMSIKKA

Learn fromhistory ndash orpay theprice

Prem Sikka is professor of accountancy at theUniversity of Essex

lsquoBomb plotrsquo foiledAAT students attending NewcastleCollege were recently told to lsquoattend thecollege as usualrsquo as news filter out of afoiled bomb plot In early Novemberpolice revealed that a plot to causelsquoserious harmrsquo had been prevented Ateenager Liam Lyburd was arrestedafter homemade explosives werediscovered at a house in Hamilton PlaceNewcastle

Northumbria Police stated that it wasconfident intent to cause serious harm atNewcastle College has been prevented

Principal Carole Kitching stressed ldquoIwould like to reassure staff studentsand their families that their safety hasbeen paramount to us and the collegeremains a safe place to studyrdquo

Adrian Pulham

pq jan 15 p8 ccm_pq sept 12 p08 04122014 1342 Page 8

ONLINE ACCA COURSES DESIGNED BY INDUSTRY EXPERTS

ACCESSIBLE 247

GLOBAL LIVE ONLINE TUITION AND REVISION SESSIONS

Congratulationson completing your ACCA exam

wwwstudyinteractiveorgPQ 020 3535 1274

TampCs apply 52$)342$-2+)234ř2$amp)34$2$)4($ŘŘ4($2542)$3Řor full terms and conditions6)3)4 wwwstudyinteractiveorgterms-and-conditions

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009_PQ 0115_PQ 1209 000 01122014 1359 Page 7

10 PQ Magazine January 2015

PQ news

I am a first-generation graduate froma working-class backgroundeducated at a comprehensive schoolin my home town of Doncaster Ibenefited from free school meals anda full university grant that covered mytuition and maintenance fees The factthat I am now the Vice-Chancellor ofBPP University is testament to theUKrsquos commitment to upward mobility

But much has changed in the pastthree decades loans replaced grantsas the number of people accessinghigher education grew Now theHigher Education Commission hasmade 16 recommendations to helpsafeguard the financial sustainabilityof UK higher education At the heart ofits analysis is the conclusion that thestudent loan system is financiallyunsustainable current projections arethat for every pound1 lent 45p will not bepaid back the student loan book isset to grow from pound46bn to pound330bnbetween 2013 and 2044 TheDepartment of BIS Select Committeeand the Public Accounts Committeehave all questioned the viability of theloans scheme Universities arelobbying for the current fees cap ofpound9000 a year to be lifted so they cancharge students even more FormerEducation Secretary Charles Clarkehas called for the repayment thresholdto be reduced to pound15000 ndash from thecurrent pound21000 ndash to ensure moreloans are repaid and to incentiviseearly repayment

It strikes me that the accountingprofession with its-earn-while-you-learn routes from AATCAT upwards isa model of how higher education canbe both relevant and affordable It issomething that policy makers are nowrevisiting as a way forward for thenext generation

CARLLYGO

Accountancyoffers modelfor fundingof education

Professor Carl Lygo ischief executive of BPP

Shocked and angry P4 ACCAexam sitters leaving theDecember sitting wondered ifthey have been studying thewrong syllabus material Theirupset was clear as oneclaimed the examiner waslooking for lsquosuper humansrsquo topass this paper The upsetwas so tangible that manypleaded for the return of the oldexaminer

The real problem appears to beQ1 which many PQs are claiming isgetting harder and harder at eachsitting ldquoIt was the hardest exam ofmy liferdquo said one sitter

Students were concerned that theexam bore no reflection to any of thepractice questions they had sat Thesacrifices they had made all seemedworthless said several sitters Theyare now wondering who protectsthem from unfair exams and

examiners As one put it ldquoThereshould be someone representingstudentsrsquo concernsrdquo

F6 was another paper that stoodout early in week one of theDecember sitting Q2 on corporatetax liability was the nightmare herefor many

Meanwhile F5 sitters found theexam lsquofairrsquo and the P7 exam timepressured One student felt P7 wasthe least lsquoauditrsquo paper they had seenfor some timebull Go to wwwpqmagazinecouk seewhat students thought of the otherpapers We will also have feedbackfrom tutors in our next issue

Embrace CIMArsquos brave new world

lsquoSuper humansrsquo needed

Itrsquos time for CIMA PQs to forget aboutlsquocore areasrsquo and lsquoexam tipsrsquo and embracethe brave new world of the 2015 syllabussays HTFTrsquos Vicky Taylor A packed jointCIMAHTFT seminar in Birminghamrecently heard about what really liesahead ndash warts and all

Taylor stressed the first thing to put tobed was the fact that these new multiplechoice tests will be easier She pointedout that the 2015 CIMA student will betested on every component of the learningoutcomes ndash they can forget about getting qualified byonly getting half right The pass rate for the new OTs is

70 and it is 60 for the case studiesTaylor felt the key to success in the new

set up is a combination of mastering andself-motivation stressing ldquoDonrsquot gettrapped on lsquosomeday islandrsquo because thatwill mean you will be a lsquosomedayrsquo qualifiedaccountantrdquo

Taylor talked through the importance ofgetting into a routine mastering onelearning outcome (reward yourself fordoing so) and then moving onto the next

CIMA PQs have to learn to fightcomplacency and understand the importance ofmastering their own destiny she said

CIPFArsquos Ireland launchCIPFA strengthened its base

in Ireland with the launch of CIPFAIreland in early December It willwork to improve the performanceof public sector organisations andto support the Irish government

Contributing to UK plcTraining graduates and

apprentices to gain accounting

qualifications at PwC generatesfuture benefits for the UK of pound188ma year says the Big 4 firm Thisvaluation is part of PwCrsquos secondannual review of its total economicsocial tax and environmentalcontribution estimated at pound412bnin 2013-14 or pound157m per dayOver 1130 people joined PwC thisyear to complete professionalqualifications

CIMA connecting with PQsCIMA has launched an online

community platform for its PQs ndashCIMAconnect This it hopes willserve as a one-stop shop for allstudent needs It will containrelevant study and exam materialwhile also giving students a socialmedia functionality The site willaward badges to students as theyprogress through their qualification

In brief

E3 was an improvement onthe diabolical one set inMay but why does the paperexamine peripheral ratherthan mainstream areas asksone expert in our CIMANovember exam feedback

The questions wereclearer this time aroundsaid the tutor but the examinertends to pick dated models ratherthan the current syllabus-relatedversions Students will have neededto muddle through with theunderstanding that everyone else

was in the same boat a scantconsolation

Pass rates at P2 might alsobe low as many sittersstruggled with questions 2 56 and 7 Students admittedthey were frustrated with Q6and Q7 PQs are hoping thatthe institute take these

frustrations into account whenmarking the paperbull Not all tutors agreed with theabove comments For acomprehensive paper-by-paperrundown turn to page 16

November exam feedback

As part of its ongoing examtransformation plans the ACCA hasnow made its F4 (ENG) and F4(GLO) exams available as on-demand computer-based exams

F4 joins the ACCArsquos suite of CBEexams ndash F1 F2 and F3 The F4paper has changed in both its CBEand paper versions The exam willnow be two hours long and containnew types of questions that testPQsrsquo knowledge on scenarios froma number of different angles

The association wants to ensurethe new-look exam reflects todayrsquosbusiness environment meaningstudents will be better equippedwith the right skills to help them inthe workplace

The ACCA has also revealed thatit will be offering a September 2015sitting in some of its larger marketsThis includes key cities in the UKFrom 2016 it will be offering fourexam sessions a year in all of itsmarkets

Taylor donrsquot get trapped

F4 availableon demand

PQ jan 15 p-10_pq sept 12 p08 04122014 0941 Page 8

Study a DEGREE plus your ACCA in Ireland

Combine a Bachelorrsquos or an MBA with the ACCA qualification to improve

your career prospects

Bachelor of Business (Hons) + ACCA

MBA + ACCA

Start February or September

IN PARTNERSHIP WITH

wwwibatiePQprofessionalibatie(020) 30056122

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UNDERGRADUATE (3 YEARS)

h BA(Hons) Business Management

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h LLB(Hons) Law

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h MA Education

h MA Design

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011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

LCA Business School London 19 Charterhouse Street London EC1N 6RA

Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

Speak to a personal

course advisor on

020 7400 6772

or enrol with us on-line

wwwlcaangliaacuk

Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

TUESDAY 10th FEBRUARY 2015

TUESDAY 17th FEBRUARY 2015

TUESDAY 24th FEBRUARY 2015t COME ALONG AND MEET OUR LECTURERS

t ENROL ON OUR OPEN DAYS AND

GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

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revision

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with live question

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Call us to book

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Our students tell us they appreciate

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Our clients tell us they value our

efficient administration

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varied range of course styles

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trusted opinion on exam training

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Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

Ÿ

Ÿ

DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

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Company name

Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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WITH LSBF MANCHESTER

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Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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Page 8: PQ magazine January 2015

8 PQ Magazine January 2015

PQ news

The ACCA has unveiled the 30centres it will be using for theSeptember 2015 exams ndash the first-ever lsquoadditional exam sessionrsquo

The countries due to offer theexams are the UK IrelandVietnam Kenya Ghana ZambiaMauritius Uganda ZimbabweNigeria China and Malaysia

The ACCA has said that nextSeptemberrsquos exams should givesome of its larger markets theopportunity to use this new sessionIt also means around 25 of ACCAstudents will be able to chose to sitin September

But where asked one top tutorwere the centres in PakistanSingapore the Middle East orEastern Europe He said ldquoIf theACCA wants it to be a trueopportunity for all its markets to testthe water then instead of offeringfour chances to sit the exams inScotland and five in Malaysia it

would seem logical to offer at leastone centre in Pakistanrdquo

The exam timetables will alsochange from September 2015 Theexams will run over a week ratherthan the current eight days So forexample the September 2015exams run from Monday 7 to Friday

11 PQs will be able to sit theDecember 2015 exams from 7 to 11 December

The full list of cities where theACCA is offering the September2015 sessionbull Ireland Cork Dublinbull UK Aberdeen BelfastBirmingham Cardiff DundeeEdinburgh Glasgow LeedsLondon Manchester Newcastlebull Vietnam Ho Chi Minh Citybull Kenya Nairobibull Ghana Accrabull Zambia Lusakabull Mauritius Mauritiusbull Uganda Kampalabull Zimbabwe Hararebull Nigeria Lagosbull China Beijing GuangzhoNanjing Shanghaibull Malaysia Federal Territory JohorBahru Kuching Pulau PinangSelangor

CIPFA choses partner

ACCA unveils Septembercentres for 2015 exams

New interim requirementsThe Financial Reporting

Council (FRC) has issued exposuredraft FRED 56 Draft FRS 104Interim Financial reporting whichwill revise the FRCrsquos existingguidance on interim financialreports for consistency with newUK and Irish GAAP (FRS 102) Thecouncil is also proposing towithdraw the Reporting StatementlsquoPreliminary announcementsrsquo

MIA and ACCA sign MoUThe Malaysian Institute of

Accountants (MIA) and the ACCAhave signed a memorandum ofunderstanding (MoU) which willresult in them working together todevelop the profession inMalaysia and the widerregion The ACCA has alsoagreed to offer exemptionsfor nine papers from theACCA qualification (F1 ndashF9) to eligible MIAmembers with initial registrationand exemption fees waived Thisspecial pathway is in force for threeyears from the date of signing

BDO redundanciesBDO is reportedly cutting

20 of its restructuring workforcebecause of the slowdown in

companyfailures Thefirm whichmerged withPKF last year isnow consultingon some 50

redundancies across its 20 or soUK offices A BDO spokesmansaid ldquoThe volume of insolvencyassignments has reduced and we

see no likelihood of this increasingin the foreseeable futurerdquo

Giveaway winnersWell done ACCA PQ Graeme

Gorthy He was the winner of ourholiday competition in conjunctionwith Home Learning College And thewinners of the ever-so-popularspecial edition Canon calculatorswere Jonathan Adams ChandniBansal Doreen Clarke Jeremy Davisand James Swoden Remember tocheck wwwpqmagazinecouk forthe list of all the giveaway winners

In brief

CIPFA has unveiled Calibrand as its officiale-assessment partner for the institutersquosnew-look professional qualification (PQ)

Through the partnership online methodsof assessment will be made available tostudents worldwide who are training fortheir CIPFA PQ providing a flexible routeinto the profession

Fully operational from 2016 Calibrandwill be responsible for implementing thesoftware globally as part of a five-year contract

CIPFArsquos Adrian Pulham said that CIPFA chose Calibrand becauseit provided the best overall solution to the challenges the institutefaces as it expands globally He explained ldquoWe are confident thatthey will deliver an excellent service to CIPFA and those studyingwith us We are particularly confident in their delivery as theirmarking essay and case-study exam solutions fitted very closelywith our existing methodologyrdquo

In every decade since the 1970s theUK has had a financial crisis The1970s had a secondary banking crashthat spread to the insurance and theproperty sector The state bailed themall out This was followed by a crisiscaused by the collapse of JonsonMatthey Barlow Clowes and frauds atLloydrsquos of London The 1990s exposedfraud at BCCI and Barings

The same story continued into thenew millennium Banks boasting auditcommittees ethics committees andeminent accounting firms as auditorswere bailed out within days ofreceiving unqualified audit opinionsLehman Brothers and Bear Stearnswent to the wall The troubles at theCo-op Bank are yet to be resolved

Yet business executives collectedlarge remuneration packets auditorscollected fees and taxpayers pickedup the bailout bills The accountancyprofession has been adept at tweakingaccounting and auditing standardscodes of ethics and disciplinaryarrangements that have delivered solittle Corporate governance codeshave hardly improved governanceRepeated fines on audit firms andbanks only show how ineffectiveprevious reforms have been This stateof affairs continues because thecorporate interests responsible for thecrisis have colonised publicpolicymaking bodies Reducing theirinfluence on public policymaking is anecessary condition for effectivereforms but remains a distantpossibility Those who fail to learnfrom history are doomed to repeat it

PREMSIKKA

Learn fromhistory ndash orpay theprice

Prem Sikka is professor of accountancy at theUniversity of Essex

lsquoBomb plotrsquo foiledAAT students attending NewcastleCollege were recently told to lsquoattend thecollege as usualrsquo as news filter out of afoiled bomb plot In early Novemberpolice revealed that a plot to causelsquoserious harmrsquo had been prevented Ateenager Liam Lyburd was arrestedafter homemade explosives werediscovered at a house in Hamilton PlaceNewcastle

Northumbria Police stated that it wasconfident intent to cause serious harm atNewcastle College has been prevented

Principal Carole Kitching stressed ldquoIwould like to reassure staff studentsand their families that their safety hasbeen paramount to us and the collegeremains a safe place to studyrdquo

Adrian Pulham

pq jan 15 p8 ccm_pq sept 12 p08 04122014 1342 Page 8

ONLINE ACCA COURSES DESIGNED BY INDUSTRY EXPERTS

ACCESSIBLE 247

GLOBAL LIVE ONLINE TUITION AND REVISION SESSIONS

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009_PQ 0115_PQ 1209 000 01122014 1359 Page 7

10 PQ Magazine January 2015

PQ news

I am a first-generation graduate froma working-class backgroundeducated at a comprehensive schoolin my home town of Doncaster Ibenefited from free school meals anda full university grant that covered mytuition and maintenance fees The factthat I am now the Vice-Chancellor ofBPP University is testament to theUKrsquos commitment to upward mobility

But much has changed in the pastthree decades loans replaced grantsas the number of people accessinghigher education grew Now theHigher Education Commission hasmade 16 recommendations to helpsafeguard the financial sustainabilityof UK higher education At the heart ofits analysis is the conclusion that thestudent loan system is financiallyunsustainable current projections arethat for every pound1 lent 45p will not bepaid back the student loan book isset to grow from pound46bn to pound330bnbetween 2013 and 2044 TheDepartment of BIS Select Committeeand the Public Accounts Committeehave all questioned the viability of theloans scheme Universities arelobbying for the current fees cap ofpound9000 a year to be lifted so they cancharge students even more FormerEducation Secretary Charles Clarkehas called for the repayment thresholdto be reduced to pound15000 ndash from thecurrent pound21000 ndash to ensure moreloans are repaid and to incentiviseearly repayment

It strikes me that the accountingprofession with its-earn-while-you-learn routes from AATCAT upwards isa model of how higher education canbe both relevant and affordable It issomething that policy makers are nowrevisiting as a way forward for thenext generation

CARLLYGO

Accountancyoffers modelfor fundingof education

Professor Carl Lygo ischief executive of BPP

Shocked and angry P4 ACCAexam sitters leaving theDecember sitting wondered ifthey have been studying thewrong syllabus material Theirupset was clear as oneclaimed the examiner waslooking for lsquosuper humansrsquo topass this paper The upsetwas so tangible that manypleaded for the return of the oldexaminer

The real problem appears to beQ1 which many PQs are claiming isgetting harder and harder at eachsitting ldquoIt was the hardest exam ofmy liferdquo said one sitter

Students were concerned that theexam bore no reflection to any of thepractice questions they had sat Thesacrifices they had made all seemedworthless said several sitters Theyare now wondering who protectsthem from unfair exams and

examiners As one put it ldquoThereshould be someone representingstudentsrsquo concernsrdquo

F6 was another paper that stoodout early in week one of theDecember sitting Q2 on corporatetax liability was the nightmare herefor many

Meanwhile F5 sitters found theexam lsquofairrsquo and the P7 exam timepressured One student felt P7 wasthe least lsquoauditrsquo paper they had seenfor some timebull Go to wwwpqmagazinecouk seewhat students thought of the otherpapers We will also have feedbackfrom tutors in our next issue

Embrace CIMArsquos brave new world

lsquoSuper humansrsquo needed

Itrsquos time for CIMA PQs to forget aboutlsquocore areasrsquo and lsquoexam tipsrsquo and embracethe brave new world of the 2015 syllabussays HTFTrsquos Vicky Taylor A packed jointCIMAHTFT seminar in Birminghamrecently heard about what really liesahead ndash warts and all

Taylor stressed the first thing to put tobed was the fact that these new multiplechoice tests will be easier She pointedout that the 2015 CIMA student will betested on every component of the learningoutcomes ndash they can forget about getting qualified byonly getting half right The pass rate for the new OTs is

70 and it is 60 for the case studiesTaylor felt the key to success in the new

set up is a combination of mastering andself-motivation stressing ldquoDonrsquot gettrapped on lsquosomeday islandrsquo because thatwill mean you will be a lsquosomedayrsquo qualifiedaccountantrdquo

Taylor talked through the importance ofgetting into a routine mastering onelearning outcome (reward yourself fordoing so) and then moving onto the next

CIMA PQs have to learn to fightcomplacency and understand the importance ofmastering their own destiny she said

CIPFArsquos Ireland launchCIPFA strengthened its base

in Ireland with the launch of CIPFAIreland in early December It willwork to improve the performanceof public sector organisations andto support the Irish government

Contributing to UK plcTraining graduates and

apprentices to gain accounting

qualifications at PwC generatesfuture benefits for the UK of pound188ma year says the Big 4 firm Thisvaluation is part of PwCrsquos secondannual review of its total economicsocial tax and environmentalcontribution estimated at pound412bnin 2013-14 or pound157m per dayOver 1130 people joined PwC thisyear to complete professionalqualifications

CIMA connecting with PQsCIMA has launched an online

community platform for its PQs ndashCIMAconnect This it hopes willserve as a one-stop shop for allstudent needs It will containrelevant study and exam materialwhile also giving students a socialmedia functionality The site willaward badges to students as theyprogress through their qualification

In brief

E3 was an improvement onthe diabolical one set inMay but why does the paperexamine peripheral ratherthan mainstream areas asksone expert in our CIMANovember exam feedback

The questions wereclearer this time aroundsaid the tutor but the examinertends to pick dated models ratherthan the current syllabus-relatedversions Students will have neededto muddle through with theunderstanding that everyone else

was in the same boat a scantconsolation

Pass rates at P2 might alsobe low as many sittersstruggled with questions 2 56 and 7 Students admittedthey were frustrated with Q6and Q7 PQs are hoping thatthe institute take these

frustrations into account whenmarking the paperbull Not all tutors agreed with theabove comments For acomprehensive paper-by-paperrundown turn to page 16

November exam feedback

As part of its ongoing examtransformation plans the ACCA hasnow made its F4 (ENG) and F4(GLO) exams available as on-demand computer-based exams

F4 joins the ACCArsquos suite of CBEexams ndash F1 F2 and F3 The F4paper has changed in both its CBEand paper versions The exam willnow be two hours long and containnew types of questions that testPQsrsquo knowledge on scenarios froma number of different angles

The association wants to ensurethe new-look exam reflects todayrsquosbusiness environment meaningstudents will be better equippedwith the right skills to help them inthe workplace

The ACCA has also revealed thatit will be offering a September 2015sitting in some of its larger marketsThis includes key cities in the UKFrom 2016 it will be offering fourexam sessions a year in all of itsmarkets

Taylor donrsquot get trapped

F4 availableon demand

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011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

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Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

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020 7400 6772

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Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

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TUESDAY 17th FEBRUARY 2015

TUESDAY 24th FEBRUARY 2015t COME ALONG AND MEET OUR LECTURERS

t ENROL ON OUR OPEN DAYS AND

GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

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Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

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Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

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Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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First name

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Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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PQmagazineThe easiest way to get your free monthly copy is to go online at

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PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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Page 9: PQ magazine January 2015

ONLINE ACCA COURSES DESIGNED BY INDUSTRY EXPERTS

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009_PQ 0115_PQ 1209 000 01122014 1359 Page 7

10 PQ Magazine January 2015

PQ news

I am a first-generation graduate froma working-class backgroundeducated at a comprehensive schoolin my home town of Doncaster Ibenefited from free school meals anda full university grant that covered mytuition and maintenance fees The factthat I am now the Vice-Chancellor ofBPP University is testament to theUKrsquos commitment to upward mobility

But much has changed in the pastthree decades loans replaced grantsas the number of people accessinghigher education grew Now theHigher Education Commission hasmade 16 recommendations to helpsafeguard the financial sustainabilityof UK higher education At the heart ofits analysis is the conclusion that thestudent loan system is financiallyunsustainable current projections arethat for every pound1 lent 45p will not bepaid back the student loan book isset to grow from pound46bn to pound330bnbetween 2013 and 2044 TheDepartment of BIS Select Committeeand the Public Accounts Committeehave all questioned the viability of theloans scheme Universities arelobbying for the current fees cap ofpound9000 a year to be lifted so they cancharge students even more FormerEducation Secretary Charles Clarkehas called for the repayment thresholdto be reduced to pound15000 ndash from thecurrent pound21000 ndash to ensure moreloans are repaid and to incentiviseearly repayment

It strikes me that the accountingprofession with its-earn-while-you-learn routes from AATCAT upwards isa model of how higher education canbe both relevant and affordable It issomething that policy makers are nowrevisiting as a way forward for thenext generation

CARLLYGO

Accountancyoffers modelfor fundingof education

Professor Carl Lygo ischief executive of BPP

Shocked and angry P4 ACCAexam sitters leaving theDecember sitting wondered ifthey have been studying thewrong syllabus material Theirupset was clear as oneclaimed the examiner waslooking for lsquosuper humansrsquo topass this paper The upsetwas so tangible that manypleaded for the return of the oldexaminer

The real problem appears to beQ1 which many PQs are claiming isgetting harder and harder at eachsitting ldquoIt was the hardest exam ofmy liferdquo said one sitter

Students were concerned that theexam bore no reflection to any of thepractice questions they had sat Thesacrifices they had made all seemedworthless said several sitters Theyare now wondering who protectsthem from unfair exams and

examiners As one put it ldquoThereshould be someone representingstudentsrsquo concernsrdquo

F6 was another paper that stoodout early in week one of theDecember sitting Q2 on corporatetax liability was the nightmare herefor many

Meanwhile F5 sitters found theexam lsquofairrsquo and the P7 exam timepressured One student felt P7 wasthe least lsquoauditrsquo paper they had seenfor some timebull Go to wwwpqmagazinecouk seewhat students thought of the otherpapers We will also have feedbackfrom tutors in our next issue

Embrace CIMArsquos brave new world

lsquoSuper humansrsquo needed

Itrsquos time for CIMA PQs to forget aboutlsquocore areasrsquo and lsquoexam tipsrsquo and embracethe brave new world of the 2015 syllabussays HTFTrsquos Vicky Taylor A packed jointCIMAHTFT seminar in Birminghamrecently heard about what really liesahead ndash warts and all

Taylor stressed the first thing to put tobed was the fact that these new multiplechoice tests will be easier She pointedout that the 2015 CIMA student will betested on every component of the learningoutcomes ndash they can forget about getting qualified byonly getting half right The pass rate for the new OTs is

70 and it is 60 for the case studiesTaylor felt the key to success in the new

set up is a combination of mastering andself-motivation stressing ldquoDonrsquot gettrapped on lsquosomeday islandrsquo because thatwill mean you will be a lsquosomedayrsquo qualifiedaccountantrdquo

Taylor talked through the importance ofgetting into a routine mastering onelearning outcome (reward yourself fordoing so) and then moving onto the next

CIMA PQs have to learn to fightcomplacency and understand the importance ofmastering their own destiny she said

CIPFArsquos Ireland launchCIPFA strengthened its base

in Ireland with the launch of CIPFAIreland in early December It willwork to improve the performanceof public sector organisations andto support the Irish government

Contributing to UK plcTraining graduates and

apprentices to gain accounting

qualifications at PwC generatesfuture benefits for the UK of pound188ma year says the Big 4 firm Thisvaluation is part of PwCrsquos secondannual review of its total economicsocial tax and environmentalcontribution estimated at pound412bnin 2013-14 or pound157m per dayOver 1130 people joined PwC thisyear to complete professionalqualifications

CIMA connecting with PQsCIMA has launched an online

community platform for its PQs ndashCIMAconnect This it hopes willserve as a one-stop shop for allstudent needs It will containrelevant study and exam materialwhile also giving students a socialmedia functionality The site willaward badges to students as theyprogress through their qualification

In brief

E3 was an improvement onthe diabolical one set inMay but why does the paperexamine peripheral ratherthan mainstream areas asksone expert in our CIMANovember exam feedback

The questions wereclearer this time aroundsaid the tutor but the examinertends to pick dated models ratherthan the current syllabus-relatedversions Students will have neededto muddle through with theunderstanding that everyone else

was in the same boat a scantconsolation

Pass rates at P2 might alsobe low as many sittersstruggled with questions 2 56 and 7 Students admittedthey were frustrated with Q6and Q7 PQs are hoping thatthe institute take these

frustrations into account whenmarking the paperbull Not all tutors agreed with theabove comments For acomprehensive paper-by-paperrundown turn to page 16

November exam feedback

As part of its ongoing examtransformation plans the ACCA hasnow made its F4 (ENG) and F4(GLO) exams available as on-demand computer-based exams

F4 joins the ACCArsquos suite of CBEexams ndash F1 F2 and F3 The F4paper has changed in both its CBEand paper versions The exam willnow be two hours long and containnew types of questions that testPQsrsquo knowledge on scenarios froma number of different angles

The association wants to ensurethe new-look exam reflects todayrsquosbusiness environment meaningstudents will be better equippedwith the right skills to help them inthe workplace

The ACCA has also revealed thatit will be offering a September 2015sitting in some of its larger marketsThis includes key cities in the UKFrom 2016 it will be offering fourexam sessions a year in all of itsmarkets

Taylor donrsquot get trapped

F4 availableon demand

PQ jan 15 p-10_pq sept 12 p08 04122014 0941 Page 8

Study a DEGREE plus your ACCA in Ireland

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011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

LCA Business School London 19 Charterhouse Street London EC1N 6RA

Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

Speak to a personal

course advisor on

020 7400 6772

or enrol with us on-line

wwwlcaangliaacuk

Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

TUESDAY 10th FEBRUARY 2015

TUESDAY 17th FEBRUARY 2015

TUESDAY 24th FEBRUARY 2015t COME ALONG AND MEET OUR LECTURERS

t ENROL ON OUR OPEN DAYS AND

GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

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comfortable learning environment

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friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

Ÿ

Ÿ

DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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1200-400pm

TAKE YOUR ACCOUNTING CAREER TO THE NEXT LEVELSantarsquos giving FREE work placements with all trainings

Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

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Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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Start dates JanFeb 2015

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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Page 10: PQ magazine January 2015

10 PQ Magazine January 2015

PQ news

I am a first-generation graduate froma working-class backgroundeducated at a comprehensive schoolin my home town of Doncaster Ibenefited from free school meals anda full university grant that covered mytuition and maintenance fees The factthat I am now the Vice-Chancellor ofBPP University is testament to theUKrsquos commitment to upward mobility

But much has changed in the pastthree decades loans replaced grantsas the number of people accessinghigher education grew Now theHigher Education Commission hasmade 16 recommendations to helpsafeguard the financial sustainabilityof UK higher education At the heart ofits analysis is the conclusion that thestudent loan system is financiallyunsustainable current projections arethat for every pound1 lent 45p will not bepaid back the student loan book isset to grow from pound46bn to pound330bnbetween 2013 and 2044 TheDepartment of BIS Select Committeeand the Public Accounts Committeehave all questioned the viability of theloans scheme Universities arelobbying for the current fees cap ofpound9000 a year to be lifted so they cancharge students even more FormerEducation Secretary Charles Clarkehas called for the repayment thresholdto be reduced to pound15000 ndash from thecurrent pound21000 ndash to ensure moreloans are repaid and to incentiviseearly repayment

It strikes me that the accountingprofession with its-earn-while-you-learn routes from AATCAT upwards isa model of how higher education canbe both relevant and affordable It issomething that policy makers are nowrevisiting as a way forward for thenext generation

CARLLYGO

Accountancyoffers modelfor fundingof education

Professor Carl Lygo ischief executive of BPP

Shocked and angry P4 ACCAexam sitters leaving theDecember sitting wondered ifthey have been studying thewrong syllabus material Theirupset was clear as oneclaimed the examiner waslooking for lsquosuper humansrsquo topass this paper The upsetwas so tangible that manypleaded for the return of the oldexaminer

The real problem appears to beQ1 which many PQs are claiming isgetting harder and harder at eachsitting ldquoIt was the hardest exam ofmy liferdquo said one sitter

Students were concerned that theexam bore no reflection to any of thepractice questions they had sat Thesacrifices they had made all seemedworthless said several sitters Theyare now wondering who protectsthem from unfair exams and

examiners As one put it ldquoThereshould be someone representingstudentsrsquo concernsrdquo

F6 was another paper that stoodout early in week one of theDecember sitting Q2 on corporatetax liability was the nightmare herefor many

Meanwhile F5 sitters found theexam lsquofairrsquo and the P7 exam timepressured One student felt P7 wasthe least lsquoauditrsquo paper they had seenfor some timebull Go to wwwpqmagazinecouk seewhat students thought of the otherpapers We will also have feedbackfrom tutors in our next issue

Embrace CIMArsquos brave new world

lsquoSuper humansrsquo needed

Itrsquos time for CIMA PQs to forget aboutlsquocore areasrsquo and lsquoexam tipsrsquo and embracethe brave new world of the 2015 syllabussays HTFTrsquos Vicky Taylor A packed jointCIMAHTFT seminar in Birminghamrecently heard about what really liesahead ndash warts and all

Taylor stressed the first thing to put tobed was the fact that these new multiplechoice tests will be easier She pointedout that the 2015 CIMA student will betested on every component of the learningoutcomes ndash they can forget about getting qualified byonly getting half right The pass rate for the new OTs is

70 and it is 60 for the case studiesTaylor felt the key to success in the new

set up is a combination of mastering andself-motivation stressing ldquoDonrsquot gettrapped on lsquosomeday islandrsquo because thatwill mean you will be a lsquosomedayrsquo qualifiedaccountantrdquo

Taylor talked through the importance ofgetting into a routine mastering onelearning outcome (reward yourself fordoing so) and then moving onto the next

CIMA PQs have to learn to fightcomplacency and understand the importance ofmastering their own destiny she said

CIPFArsquos Ireland launchCIPFA strengthened its base

in Ireland with the launch of CIPFAIreland in early December It willwork to improve the performanceof public sector organisations andto support the Irish government

Contributing to UK plcTraining graduates and

apprentices to gain accounting

qualifications at PwC generatesfuture benefits for the UK of pound188ma year says the Big 4 firm Thisvaluation is part of PwCrsquos secondannual review of its total economicsocial tax and environmentalcontribution estimated at pound412bnin 2013-14 or pound157m per dayOver 1130 people joined PwC thisyear to complete professionalqualifications

CIMA connecting with PQsCIMA has launched an online

community platform for its PQs ndashCIMAconnect This it hopes willserve as a one-stop shop for allstudent needs It will containrelevant study and exam materialwhile also giving students a socialmedia functionality The site willaward badges to students as theyprogress through their qualification

In brief

E3 was an improvement onthe diabolical one set inMay but why does the paperexamine peripheral ratherthan mainstream areas asksone expert in our CIMANovember exam feedback

The questions wereclearer this time aroundsaid the tutor but the examinertends to pick dated models ratherthan the current syllabus-relatedversions Students will have neededto muddle through with theunderstanding that everyone else

was in the same boat a scantconsolation

Pass rates at P2 might alsobe low as many sittersstruggled with questions 2 56 and 7 Students admittedthey were frustrated with Q6and Q7 PQs are hoping thatthe institute take these

frustrations into account whenmarking the paperbull Not all tutors agreed with theabove comments For acomprehensive paper-by-paperrundown turn to page 16

November exam feedback

As part of its ongoing examtransformation plans the ACCA hasnow made its F4 (ENG) and F4(GLO) exams available as on-demand computer-based exams

F4 joins the ACCArsquos suite of CBEexams ndash F1 F2 and F3 The F4paper has changed in both its CBEand paper versions The exam willnow be two hours long and containnew types of questions that testPQsrsquo knowledge on scenarios froma number of different angles

The association wants to ensurethe new-look exam reflects todayrsquosbusiness environment meaningstudents will be better equippedwith the right skills to help them inthe workplace

The ACCA has also revealed thatit will be offering a September 2015sitting in some of its larger marketsThis includes key cities in the UKFrom 2016 it will be offering fourexam sessions a year in all of itsmarkets

Taylor donrsquot get trapped

F4 availableon demand

PQ jan 15 p-10_pq sept 12 p08 04122014 0941 Page 8

Study a DEGREE plus your ACCA in Ireland

Combine a Bachelorrsquos or an MBA with the ACCA qualification to improve

your career prospects

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MBA + ACCA

Start February or September

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STUDY IN CYPRUS

UNDERGRADUATE (3 YEARS)

h BA(Hons) Business Management

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011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

LCA Business School London 19 Charterhouse Street London EC1N 6RA

Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

Speak to a personal

course advisor on

020 7400 6772

or enrol with us on-line

wwwlcaangliaacuk

Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

TUESDAY 10th FEBRUARY 2015

TUESDAY 17th FEBRUARY 2015

TUESDAY 24th FEBRUARY 2015t COME ALONG AND MEET OUR LECTURERS

t ENROL ON OUR OPEN DAYS AND

GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

Ÿ

Ÿ

DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

and others

For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

Email adminthetrainingplaceorgCall 020 7252 9331

OPEN DAY7th amp 8th of January 2015

1200-400pm

TAKE YOUR ACCOUNTING CAREER TO THE NEXT LEVELSantarsquos giving FREE work placements with all trainings

Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

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Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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  • LowRes006_PQ 0115v2
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  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
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  • LowRes014_PQ 0115
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  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
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  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
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  • LowRes028_PQ 0115
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  • LowRes030_PQ 0115
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  • LowRes032_PQ 0115
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  • LowRes034_PQ 0115
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Page 11: PQ magazine January 2015

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011_PQ 0115_PQ 1209 000 27112014 1355 Page 7

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

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015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

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Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

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Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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Page 12: PQ magazine January 2015

12 PQ Magazine January 2015

PQ CIMA 2015 exams

Holding two forms of ID PQmagazine pressed the buzzer atthe Pearson Vue exam centre

in High Holborn recently Inside waitingfor us was Damien Fletcher from PearsonVue Vienn Chan from CIMA and centremanager Chris Mason

From January CIMA students will nolonger have to turn up to a big soullesshall The move to computer-based testingmeans candidates can sit their testsanywhere any place any time So whatexactly will that be like We decided tofind out

First things first ndash we showed thebooking in desk our two forms of ID Onehas to be a photo ID ndash a driving licenceor passport The other has to have asignature on it (credit or debit cards arefine) Interestingly Vienn struggled to findtwo pieces of ID that were up-to-date Sotherersquos a lesson there straight away ndash theID has to be lsquoin datersquo

CIMA students will then be asked whattest they are booked in for and be givena set of Pearsonrsquos Professional examrules Top of that list is lsquono personal itemsin the testing roomrsquo As well as mobilephones that includes wallets hats bagscoats books and notes (Pearson haslockers at every centre for exam sittersrsquopersonal effects)

After checking that your ID is lsquoin datersquothere will be a visual check against thephoto Your name will then be checkedto ensure that it is on the system and aphoto is captured Next up is a digitalsignature on the Epad ink There wasalso a palm capture camera on the deskbut CIMA doesnrsquot ask for this ndash yet

Once you are all signed in then youput all your stuff in the locker The onlythings you will have with you at this pointare a locker key your ID and a calculator

You will then be shown to the testingroom Each room has a invigilator whowill check your ID and ask you again tomake sure you have emptied yourpockets The invigilator sits at a stationwhich has CCTV cameras They alsohave plenty of tissues Your test will alsobe put into an unscheduled break modeif you do need the toilet but rememberthe clock keeps on ticking

Interestingly candidates will be offeredearplugs Centre manger Chris pointedout that the testing rooms are not totallysilent environment people come in andout of the room while you are taking thetest If you want to use earplugs then itmay be an idea to practice with thembeforehand

The whole process seemed really calmand controlled and a big plus of usingone of Pearson Vuersquos 5000 centres isthey are standardised around the world ndash

whether you are in London or LahoreThey are temperature controlled at 22degrees the lighting has a standardsetting and there are clocks on everywall The centres open at 815am andcloses at 415pm That means if you arebooking a CIMA test the last time you canbook is 245pm

Once you have finished the test youhave to raise your hand and your resultwill be waiting for you at the front deskWhen we were there two CIMAcandidates were sitting exams whileanother failed to turn up

PQ understands that students will alsobe able to sit exams at Kaplan and BPPas both have applied to become PearsonVue exam centres ndash as have other CIMALearning Partners

Pearson Vue said that outside the UKand North America test centres can varyin terms of layout and internalenvironment with the aim of providing thebest test experience for candidates PQ

THE TESTING ROOMPQ magazine gives you a feelof how the exam process willwork in the new world ofcomputer based CIMA exams

Calculators at the readyFrom 2 January 2015 CIMA willpermit the use of calculators in allexams for a one-year transitionperiod Exam candidates will bepermitted to bring their owncalculators provided these are onCIMArsquos list of pre-approved non-programmable models The examadministrator will check that themodel is permitted Candidates willalso have the option of using acalculator available on the testcomputer Ahead of their examsstudents can download a tutorial topractise using the computer-basedcalculator

PERMITTED CALCULATOR MODELSbull SHARP EL-531bull CASIO FX83bull CASIO FX-115 (ES)bull FX-85 (ES)bull FX-50 (F Plus)bull FX-991 (MS)bull CASIO fx-100ESbull CASIO fx-100MSbull CASIO fx-300MSbull CASIO fx-991MSbull CASIO fx-991ESbull CASIO FX models

The modern examabove a watchfulinvililator monitorsstudents below aPQ has her phototaken at thePearson Vue examcentre

PQ Jan 15 p12_Layout 1 02122014 1152 Page 23

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

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Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

Speak to a personal

course advisor on

020 7400 6772

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Classes commence

MONDAY 2nd MARCH 2015Timings 615pm to 845pm

TUESDAY 10th FEBRUARY 2015

TUESDAY 17th FEBRUARY 2015

TUESDAY 24th FEBRUARY 2015t COME ALONG AND MEET OUR LECTURERS

t ENROL ON OUR OPEN DAYS AND

GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

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If yes what is your job title

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PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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WHY FBT

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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Page 13: PQ magazine January 2015

013_PQ 0115_PQ 1209 000 02122014 0933 Page 7

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

LCA Business School London 19 Charterhouse Street London EC1N 6RA

Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

Speak to a personal

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MONDAY 2nd MARCH 2015Timings 615pm to 845pm

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015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

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PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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Page 14: PQ magazine January 2015

SPORT

1 Who was the top goal scorer inthe 2014 World Cup

2 Which country won the DavisCup for the first time in 2014

3 What number is Formula 1 worldchampion Lewis Hamiltonrsquos car

4 ldquoHe built aregime he didnrsquot

build a teamhellip Itold him onnumerousoccasionslsquoYoursquore playing

by fear here youwant guys to be

scared of you And AndyIrsquom not scared of yoursquo And he hateditrdquo Who said this and who is Andy

5 Which lsquocountryrsquo won a majorhorse race on 7 June 2014

6 Who is next in this sequenceCrawley Town FC Fleetwood TownFC Mansfield Town FC

7 Snooker who is theworld champion

8 In which city did the2014 Tour de Francestart

9 Name the ex-serviceman who won goldin the first-ever Para-skeletonWorld Cup event in Park City US

10 Which Rugby Union clubbought the Ricoh Arena Coventry

THE YEAR IN FOCUS

11 January Janet Yellen (picturedabove) was the first woman to beappointed to which job

12 February Which event waswatched by over 111 million people

in the US making it the mostviewed TV event in US history

13 March Which film won threeOscars including the AcademyAward for Best Picture

14 April Who resigned as theSecretary of State for CultureMedia and following an expensesscandal

15 May Which US firm finallygave up on its attempts to buyAstraZeneca after its pound70bn finalbid for the firm was rejected

16 June Who abdicated in favourof his son now King Felipe VI

17 July On July 14 the GeneralSynod of the Church of Englandmeeting in York voted to allowwomen to become what

18 August Which British actordirector and producer died aged90 on August 24

19 September Some 1617989people voted for what on 18

September

20 October KailashSatyarthi shared the2014 Nobel Peace Prizewith whom

21 November AnEnglish clarinettist and

vocalist known for hisappearance ndash goatee bowler hatand striped waistcoat ndash died onNovember 2 Who was he

22 December Who did PQmagazine interview ndash see page 27 ndashin our December 2014 issue

ENTERTAINMENT

23 Which reality star got marriedin Florence on 24 May 2014

24 In which film does a farmerplayed by Kevin Costner build abaseball pitch in his cornfield

25 Paul McCartneryrsquos song lsquoHeyJuderdquo was dedicated to and namedfor which young person

26 In the Lord of the Ringsthe Return of the King whotell the Hobbits ldquoYou bowto no onerdquo

27 Which board gamewas introduced on 5November 1935

28 Name the play nowshowing in the West End17 years after making its debutat the Royal Court ndash it was madeinto a film in 1999 staring Om Puri

29 Which singer who took hermusic off Spotify sold 1287 millioncopies of her latest album within aweek of its US release

30 Which rapper was booed off aLondon stage after a 20-minuterant this summer

WHO SAID

31 ldquoI consider being gay amongthe greatest gifts God has given merdquo

32 ldquoMy dad would be so happy tosee people understanding thehealing power of the herbrdquo

33 ldquoThere is no way I would askothers to go on a Virgin Galacticflight if I didnrsquot feel it was safeenough for myselfrdquo

34 ldquoOne-armed butlers ndash they cantake it but they canrsquot dish it outrdquo

35 ldquoNations are nations if theyfeel themselves to be a nation AndScotland overwhelmingly feels itselfto be a nationrdquo

36 ldquoWe have to maintain faith ingovernmentrsquos ability to control therate at which people come to thiscountryrdquo

37 ldquoIt really doesnrsquot matter if youdonrsquot like this song It doesnrsquot matterif you hate the artists What mattersis that you buy the recordrdquo

38 ldquoMy chances of being PM areabout as good as the chances offinding Elvis on Mars or my beingreincarnated as an oliverdquo

39 ldquoHerersquos what I believe hellipSecurity Hard work rewardedVested interests made to work in the

public interest Public servicesthere when you need

themrdquo

40 ldquoYouve beendriving a cab for 10years I have been in the

cabinet I am an award-winning broadcaster Im a

Queens Counsel you thinkyour experiences are anythingcompared to mine Just shut uprdquo

A MIXED BAG

41 What was named the mostvisited tourist attraction in theworld

42 Solyanka is what type ofcooked food dish

43 The 1957 film lsquoThe Curse ofFrankensteinrsquo was based on a novelby which author

44 Who are the only twocharacters portrayed by the sameactors in all six lsquoStar Warsrsquo films

45 In art Dadaism originated inwhich European country duringWorld War I

46 What isthe title of thelast UKnumber onehit for Abba

47 Which isthe only novelby Charles Dickensto have a female narrator

48 ldquoWell nobodyrsquos perfectrdquo is thelast line of which 1959 film

49 The spice saffron is derivedfrom which flower

50 A probang is used to removean object from or apply med icationto which part of the body

Here it is our eagerly awaitedAnnual Bumper Quiz ndash and yourchance to win one of four fantasticpairs of Sennheiser headphones Sothanks to our wonderful sponsorsthe accountancy bodies Good luck

14 PQ Magazine January 2015

PQ annual bumper quiz

SPONSORED BY

SO WHAT DOYOU KNOW

Send your answers to grahampqaccountantcom by 23 January 2015 or post to the usual address Four lucky winners will win the Sennheiser headphones The judgesrsquo decision is final

pq jan 14 p15-Quizbull_Layout 1 02122014 1412 Page 2

Quality Affordability Employability

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Tel 020 7400 6772 Fax 020 7400 6799 Email accalcaangliaacuk

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MONDAY 2nd MARCH 2015Timings 615pm to 845pm

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GET 10 OFF YOUR COURSE FEE

015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

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Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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Page 15: PQ magazine January 2015

Quality Affordability Employability

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015_PQ 0115_PQ 1209 000 28112014 1622 Page 7

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

Ÿ

Ÿ

DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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1200-400pm

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

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Surname

Company name

Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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Page 16: PQ magazine January 2015

16 PQ Magazine January 2015

PQ CIMA exam feedback

Kaplan Financial E1 A fair exam All areas of the syllabus weretested and the style and standard were similar toprevious sittings Some candidates may havestruggled to apply their knowledge andor addenough depth to their section C answers E2 Students would have struggled with Q6 asthey would have been unsure what the questionwas looking for and even what areas of thesyllabus were being covered in (a) However thewell-prepared student should have managedwithout too much difficultyE3 There were some unusual calculations andmodels in this final sitting of the E3 exam whichmay have caused a few problems However thereshould have been enough easier marks to see themajority of students throughF1 A really good paper compared with recentsittings although still a little too wordy for somestudents Sitters should not have found it too timeconsuming to complete Some would have foundQ4 more difficult than the usual group questionthat has appeared in previous exams but shouldnot have been shocked to see it againF2 I say this every time but the F2 examiner hasagain set a very fair paper that any well preparedPQ will be more than capable of passingF3 The end of an era Until the end the F3examiner continued to set tough but fair paperscovering core syllabus topics in a consistent styleP1 Students will have had to score well insection C to compensate for tougher earliersections A good approach will have been vitalP2 Time pressure may have been an issue but infairness this exam was straightforward andpassable with method and clear layout Theexaminer regularly advises students to attemptsection B before section A there are more easymarks in 25-mark questions and bagging themearly on in the paper builds confidenceP3 A fairly demanding exam where examtechnique both in choice of questions andreacting to unfamiliar scenarios was keyT4 In contrast to September there were morecalculations There may have been difficulty withthis exam in the selection of the order of prioritiesThe lack of specific direction for two of the issuesmay have caused some anxiety and studentswould have needed to keep a cool head andallocate sufficient time to consider the unseeninformation carefully

LSBF E1 The last hurrah under the 2010 syllabusPerhaps the examiner decided to take pity onthose caught by transitional arrangements andopted for what can only be described as a gentlestroll through the metaphorical autumnal Englishcountryside ndash very pleasantE2 This really is the end of an era as the E2exam will not be examined in this format againand the examiner did not disappoint those who

needed to pass E2 to avoid the integrated casestudy The paper reflected the previous ones andthe mark allocation reflected the syllabusweighting 30 of the questions were based onstrategy 35 on project management and 35managing relationshipsE3 An improvement on the diabolical May paperbut still examined peripheral topics rather thanmainstream ones Questions were clearer this timebut the tendency to pick dated models rather thanthe current syllabus-related versions has to raise aquestion as to how this paper has been controlledin its development and construction Was it a fairpaper No it was poor But students will havemuddled through as they would all have been inthe same boat so perhaps you could view it as fairin that respectF2 No surprises here and many students will bepleased with the content that was tested Allquestions were on mainstream topics (as theyusually are) and there were no inclusions thatwere designed to catch students out Questionswere clearly expressed and this must rate as ahigh-quality examination team Well doneF3 The final F3 exam was a somewhat pleasantpaper which focused heavily on the financingaspect of the syllabus and much to my surpriseminimised the requirements of investmentdecisions and project controlP1 A difficult one to generalise on All questionswere either unarguably in the syllabus andor thesame topics have been examined before So nolsquowhere-did-that-come-fromrsquo type surprisesP3 The key to success was managing timeproperly and asking the questions set relatingknowledge to the facts in the scenario PQs whodid both of these should be confident of successT4 The last of the T4 exams was a good test ofcandidatesrsquo application skills and was a fair examwith plenty of content that would offer the PQ thechance to demonstrate their ability in both termsof knowledge and information A good exam

First Intuition E1 Overall a fair paper covering topics from allover the syllabus Section B had decent questionsaround encouraging FDI into a country failure ofTQM and benefits of MIS systems Section Crsquos Q3 on outsourcing was a bit tricky (what tooutsource) Q4 as expected focused mainly onmarketing Students needed to discuss areasaround branding and the product life cycleE2 Interesting Q1 on CSR asked students tocompare and contrast two viewpoints In Q2 itwas unusual to be asked how critical paths canhelp many PQs would have expected to have todraw one Q3rsquos lsquodiscuss with reference totransaction cost theoryrsquo was a wider requirementthan in the past with a 10-mark question not splitinto sections An application-based Q4 was onaction-centred leadership Q5 asked how Porterrsquos5 Forces model could be used in a set situation ndash

the danger here is that students would have spentall their time explaining what Porterrsquos 5 Forcesmodel was all about Q6 was a scenario structuredaround team workers and Q7 covered projectmanagement focusing on initiation andstakeholders E3 Q1 required knowledge of the core modelAnsoffrsquos grid Students then had to calculatecontribution and product mix given a limitingfactor ndash a relatively unusual calculation for E3 butone that a reasonably competent PQ should havebeen able to score well on Q2 will only have beenattempted by a few candidates Q3 was areasonable question on ethics It was segmentalanalysis e-business and Web 20 for Q4F2 Section A was fairly straightforward foranyone who had sat a few previous examquestions Similarly section B was about asstandard as it gets Students can really have noexcuses if they donrsquot pass this paperP1 There were no great surprises in this P1paper with many old favourite questionsappearing in section A including cash budgetsdata tables expected values and centralisedpurchasing In section C we saw a question onvariance analysis (not a great shock consideringthat the past two sittings had seen questions onABC) and an NPV question with a large chunk ofthe marks for using and critiquing the equivalentannual cost methodP2 Section A was very reasonable with someusual topics in Section B was very weightedtowards pricing in a tabular format with normalpricing in Q6 linked to limiting factors (studentswould find this tough) and a similar skill required

Itrsquos the last hurrah for the CIMA 2010 syllabus so what was it likeAs usual we get the experts to tell us and more importantly you

SEPARATING THE GO

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 26

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

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DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

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We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

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039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
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Page 17: PQ magazine January 2015

PQ Magazine January 2015 17

CIMA exam feedback PQ

in transfer pricing in Q7 It would not have been apopular exam F3 F3 was a very fair paper with core syllabusmaterial tested Nothing really to report hereP3 Overall a reasonably challenging paper withthe usual mix of conventional and unusualrequirements Q2 on service level agreements andinternal audit might have caused a few problemsfor candidates Q3 was an unusual question on aconsultancy business which needed some creativewriting skills Irsquom sure students would havequestioned where this fits into the P3 syllabusFinally Q4 was a relatively tough question onforeign exchange which also contained an elementof value at risk which some students may havestruggled with

HTFT E1 Section C has had some mixed responsesQ3 should have caused no problems on whatshould be outsourced and had a lovely part (b)indicating what the organisation should considerwhen making redundancies For Q4 studentswere a little surprised that capacity managementwas examined for 10 marks However it didinclude branding equity for 10 marks ndash a lsquodreamrsquofor most students E2 Tricky bits in section A might have includedQ3 as students do not love transaction costtheory and Q5 Although on Porterrsquos 5 Forces itreferred to the use of 5 Forces as part of afeasibility study Section B is fair but Q6 will havegiven PQs the usual problem of adding valuerather than lsquocut and pastingrsquo from the scenarioE3 Section A included a key strategic model ndash

familiar territory Section B included a question ona model that is not usually asked for specificallybut there was an article in FM magazine inAugust that included a discussion of the modelF1 Q3 students may have felt time pressureddue to the adjustments that were required for thecalculation of PPE Q4 was a straightforwardgroups question Overall a good paper preparedstudents will score quite highF2 Section A contained no surprises startingwith a lovely pension calculation and finishingwith the much-expected lsquohumans as capitalrsquoquestion And section B was even better Thiswas a lsquochild of the godsrsquo paper with 25 marks toconsolidate a statement of financial position ndasheverybodyrsquos favouriteF3 Section A was very much focused on thefundamental principals of the FS syllabus offorecasting factors affecting share price KPIrsquosand the play off between dividend financing andinvesting decisions Despite not containing thelsquoCORErsquo areas of calculaton such as NPV orWACC students should to be scoring highly onthis question Section B included businessvaluations financing WACC and investmentappraisal P1 The 20 working capital marks across thepaper included some easier elements such as acash budget and EOQ Q4 will have seen studentsconfident tackling the 14 marks for NPVevaluation the remaining 11 marks on annualisedequivalent method may have worried unpreparedstudents Q3 reconciling variances meant gooduse of proformas will have gained majority ofmarks available P2 Q1 was a zero based budget explanation for10 marks and Q2 life cycle costing theory for 10marks This should have settled studentsimmediately into a paper which was challengingbut passable Again the balanced scorecardelement for 10 marks was easily achievableLearning curve price demand curve and limitingfactor featured with some complex elements tothe calculations Q7 transfer pricing was notstraightforward but method marks will haveapplied giving a student the opportunity to gain50 and topping up with seven marks for theoryonly on transfer pricing P3 Section A was a well-balanced cross syllabus5 part 50 marker As ever students had todemonstrate they could be practical in the area ofrisk management in this instance recommendingprecautions associated with nut allergies in amanufacturing environment Section B was alsowell balanced with Q3 giving a great opportunityfor anyone with a general understanding ofbusiness and organisation structures to shine

BPP P1 No surprises here Section C was asexpected with one question requiring calculationof variances and discussion of performance Thefinal question was an NPV calculation for the bulkof the marks (14) followed by EAC calculationsand a small bit of explanation

F1 In section C the financial statementpreparation had a few tricky adjustments so moststudents would have been able to have areasonable go ndash it just depends whether theypanicked The other section C was a groupfinancial statement preparation question wehavenrsquot had one of those for a few sittings (wersquovehad a cash flow instead) The groups questionsare always better received by students than cashflows so most should have been happyE1 As seems to be the pattern section C hadone pedestrian question (Q4) and one challengingone (Q3) A basic systematic approach wouldhave been enough to passP2 An OK paper ndash no nasty surprises and plentyof easy marks available A couple of questions insection A on zero based budgeting and variancescould have caused problems as they are based onbrought forward P1 knowledge Section B was aunusual (although transfer pricing returned asexpected) and the other question saw limitingfactors combined with optimal pricingE2 A candidate who had focused on the keymodelstheories and read the requirements shouldhave done well Some may have been thrown byQ4rsquos reference to lsquoaction-centred leadershiprsquo butother than that the knowledge tested was prettystraightforwardF2 The questions were all on mainstream topicspensions share based payments financialinstruments groups and interpretations with verylittle to trip students upP3 A typical paper ndash Q1 went with three areas asusual peanut allergy and cash collection topicswere fine but the part on cocoa sourcing wouldhave been (as ever) a struggle to justify the markson offer The rest of the paper was based onfamiliar themes and not controversialE3 Covered a lot of previously examinedlsquoenterprisersquo topics such as Ansoffrsquos matrix andfunctions of a sales website This was howeverbalanced by an unusually lsquoperformancersquo focusedcalculation looking at the optimal product mixwith a limiting factor which students will haveseen in P1P2 Section B was trickier thanaverage testing topics such as performancemanagement ethics and culture and finallymarketing and Web 20 technologies Overall aperfectly reasonable examF3 A wide-ranging paper covering forecastingintangibles strategic issues efficient marketshypothesis and financing The hardest part ofthe question was probably part b (iii) for 12marks which asked for an analysis of theperformance measures that banks wouldconsider when reviewing a re-financing request ndashbut candidates that did the obvious (gearinginterest cover) would have been on the rightlines Optional questions focused on technicalareas of the syllabus that had been regularlyexamined in the past (Q2 ndash business valuationQ3 ndash rights issue Q4 ndash APV amp WACC) Eachquestion contained a twist but none that shouldhave prevented well-prepared students fromobtaining a good mark PQ

OOD FROM THE BAD

pq jan 15 p16 - 17_Layout 1 04122014 0942 Page 27

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

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wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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Payments must be made on or before the specified date and failure to comply

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
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  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
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  • LowRes026_PQ 0115v2
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Page 18: PQ magazine January 2015

18 PQ Magazine January 2015

PQ ACCA exams

Before reading this article pleasecheck out the article in PQmagazine October 2014

headlined lsquoYour new-look F4rsquo It explainsthe types of question that ACCA willexamine and the format of the exam Thisarticle builds on that explanation by givingyou examples of the actual questions youmust prepare for in section A

So can you answer the questionsbelow Have a go

Question 1 Jedi placed a sword in his shop windowpriced at pound1099 He is prosecuted foroffering for sale an offensive weapon Inthe course of his judgement the judgemade the following statements1 ldquoI find Jedi not guiltyrdquo2 ldquoI find that goods on display in a shopwindow is an invitation to treat not anofferrdquo3 ldquoI find that the Crown ProsecutionService has proved the facts beyondreasonable doubtrdquo

Which is ratio decidendiA 1 onlyB 2 onlyC 3 onlyD 1 and 2 only

(1 mark)

Question 2 Am Ltd placed the followingadvertisement on the internet ldquoSpecialoffer We are able to offer for sale anumber of DAB radios at a speciallyreduced price of pound290 Order now whilestocks lastrdquo

The advertisement contained a mistakein that the radios should have beenpriced at pound29 Be Ltd read theadvertisement and immediately placed anorder for 100 radios promising to paywhen called upon to do so

Which of the following statements iscorrectA Be Ltd has accepted an offer and iscontractually entitled to the 100 radiosB Am Ltd can refuse to supply Be Ltd asthe advertisement is not an offer but aninvitation to treatC Am Ltd can only refuse to sell theradios to Be Ltd if it has sold all its stockD As Be Ltd has not yet paid for theradios it has no contractual right to them

(2 marks)

Question 3 Amar has won his action for unfairdismissal and is entitled to a basic awardcalculated according to a set statutoryformula subject to various statutorymaxima Amar started his employment10 years ago and is aged 39 at the dateof his dismissal

Which of the following is correct A The calculation will award him half aweekrsquos pay for each year of continuousserviceB The calculation will award him oneweekrsquos pay for each year of continuousserviceC The calculation will award him one-and-a-half weekrsquos pay for each year ofcontinuous serviceD The calculation will award him twoweeksrsquo pay for each year of continuousservice

(2 marks)

Question 4 Ace agreed with Pawni to transport someprawns belonging to Pawni During thecourse of the very long journey Acenoticed that the prawns were looking

likely to go off in the next few hours Aceimmediately left a text message withPawni informing her of the situation andasking her what he should do Since Aceheard nothing from Pawni within thosethe next few hours he stopped at the nextmarket and sold the prawns to thehighest bidder a local restauranteurThai It turns out that the prawns were infact unknown to Pawni Ace and Thaimore than a little off and when Thaiserved the prawns some of his customersbecame ill In consequence Thai hasmade claims in contract against both Aceand Pawni In the context of the law ofagency who is potentially liable to ThaiA Ace only because it was he who wastotally responsible for transporting theprawnsB Pawni only ndash because in selling theprawns to Thai Ace was acting as anagent of necessityC Both Pawni and AceD Neither Pawni nor Ace since Thai wasnegligent in failing to check the quality ofthe prawns before he served them to hiscustomers

(2 marks)

Confident about for F4 (ENG) Take DebbieCrossmanrsquos test and find out where your gapsare for the Corporate and Business Law paper

ARE YOU READ

Next monthwe tackle

section B ofthe F4 paper

pq jan 15 p18-19_Layout 1 02122014 1351 Page 26

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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DaytimeEvening Courses

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Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

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One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

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STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

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wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
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Page 19: PQ magazine January 2015

PQ Magazine January 2015 19

ACCA exams PQ

Question 5 Wang has sued Xia a partner in anordinary partnership for a debt of pound1000in respect of goods supplied to the firmby Wang It has transpired that Xiacannot satisfy the whole judgement debtbut he has managed to pay Wang pound800

Wang now wishes to sue the other 10partners How much can she sue eachof them for

A pound20B pound100C pound200D pound1000E Nothing since her action against

Xia means that she now cannot sueanother partner

(2 marks)

Question 6 With regard to lifting the veil ofincorporation which of the following isnot correctA Under the Insolvency Act 1986 the veilwill be lifted between the company andits directors if the directors are found tobe liable for wrongful tradingB A court may exceptionally lift the veilwhere special circumstances existindicating the veil is mere faccediladeconcealing the true factsC A court may exceptionally lift the veilwhere it is fair just and reasonable to dosoD A court may exceptionally lift the veilfor public policy reasons

(1 mark)

Question 7 Bri holds preference and ordinary sharesin Trova Ltd Trova Ltd proposes to

reduce the preference share dividendright from 5 to 4 Bri attended themeeting called to consent to the variationand voted against the proposal Afterheated discussion among the preferenceshareholders the proposal was reluctantlyagreed to by special resolution at themeeting Bri may object to the court ifshe holdsA A minimum of 5 of Trova Ltdrsquospreference sharesB A minimum of 10 of Trova Ltdrsquospreference sharesC A minimum of 15 of Trova Ltdrsquospreference sharesD A minimum of 75 of Trova Ltdrsquosordinary shares

(1 mark)

Question 8 The statements here relate to lsquodirectorsrsquoWhich of the following is not correctA A de jure director is a person who hasbeen lawfully appointed as a directorB A de facto director is a person whoacts as a director although he has notbeen lawfully appointed as a directorC An alternate director is not a directoras such but may vote at board meetingsas if he is a directorD A shadow director is a type of non-executive director

(1 mark)

Question 9 Which two of the following are correctwith regard to the making of winding uporder by the court1 In general the date of commencementof the winding up dates back to the dateof the presentation of the petition

2 All employees are automatically maderedundant on the making of the windingup order3 All directors are automatically removedfrom office on the making of the windingup order4 The winding up order includes theappointment of a qualified insolvencypractitioner

A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD 1 and 4 only

(2 marks)

Question 10 Which two of the following statementsare correct in relation to the Bribery Act20101 It creates criminal offences that can bepunished by up to 10 years in prison2 It creates a civil wrong with unlimitedliability in damages3 It does not apply to non-UK nationals4 It creates the specific offence ofbribing a foreign public official

A 1 and 2B 1 and 4C 2 and 3D 3 and 4

(2 marks)

bull Debbie Crossman is Worldwide TeamLeader for F4 at the London School ofBusiness amp Finance

PQ

DY FOR F4

1B2B3B4B5D6C7C8D9A10B

ANSWERS

Sorted thanks topqjobscouk

WARNING These MCQs are just an example ofwhat might come up in the examThey are no substitute for a full

revision programme

pq jan 15 p18-19_Layout 1 02122014 1351 Page 27

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

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comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

Ÿ

Ÿ

DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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1200-400pm

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

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Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

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STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

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WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
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Page 20: PQ magazine January 2015

PQ Magazine January 201520

PQ Awards 2015

The deadline for entries has beenextended to Friday 9 January so comeon ndash get nominating

Our lush venue the Cafeacute de Paris is bookedOur five judges have all put judgement day intheir diaries And our compereentertainment forthe evening is all lined up Now you need tomake sure you book your place for the PQAwards 2015

You need to add Tuesday 10 February to yourcalendar ndash itrsquos not far away now But before thatwe need your nomination by the new deadlinedate ndash 9 January That means there is still plentyof time to get your entries to us ndash but that is ourfinal cut-off point

There are 15 lsquoPQsrsquo up for grabs this year andas always we have split the Lecturer of the Year

and College of the Year categories into two ndash onefor the public sector and another for the privatesector

Our reigning Accountancy Body of the Year isCIPFA (pictured) who were overjoyed to win theprize for a second time ndash they also landed theaward back in 2010

Remember you can either download anapplication form directly from our website ndashwwwpqmagazinecouk ndash or you can email yourentry to awardspqaccountantcom

Alternatively write to The Editor PQmagazine 4th Floor Central House 142 CentralStreet London EC1V 8AR

All we need is 250 wise words on why youthink your nominee should win Please stateclearly which category you are entering PQ

Time really is of the essence if you want to attend the best accountancy award ceremony around

CATEGORIES PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

STUDENT BODY OF THE YEAR

TRAINING MANAGER OF THE YEAR

ACCOUNTANCY COLLEGE OF THEYEAR ndash PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR ndash PRIVATE SECTOR

LECTURER OF THE YEAR ndash PUBLICSECTOR

LECTURER OF THE YEAR ndash PRIVATESECTOR

ACCOUNTANCY TEAM OF THE YEAR

INNOVATION IN ACCOUNTANCY

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY PERSONALITY OFTHE YEAR

LIFETIME ACHIEVEMENT

DISTANCE LEARNINGSTUDENT OF THE YEAR

OUR SPONSORSNo award ceremony is possible without the sponsors And we have only the best

TIME TO SHINE

Donna Smith won the lsquoPQrsquo in this category last year Shersquosa real role model ndash she started Level 2 in January 2013and finished her final Level 4 exam in August that veryyear It usually takes students that long to complete alevel All while working full time as an accounts assistantfor Virani Food Products Limited in Wellingborough

2012 winner Ceris Williams 2013 winner Alina Stahie

pq jan 15 p20_Layout 1 02122014 1342 Page 1

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

Ÿ

Ÿ

DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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1200-400pm

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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WITH LSBF MANCHESTER

Benefit from

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Start dates JanFeb 2015

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Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
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  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
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Page 21: PQ magazine January 2015

|CIMA is changing and so are we|

Live masterclasses which focus on

application of knowledge

Syllabus recorded into bite size

chunks you learn at your own pace

dampdƐŵŽĐŬƐ- a complete suite of online practice

questions developed to mirror the exam style

Our CIMA OT offer

Personal tutor from the day you book to

the day you pass the exam

Firstly well done

If you have cleared a level you will now need to move

to the next level under the new syllabus Four papers

now for each level 3 x OT papers with a pass mark of

70 and then the integrated case study with a pass

mark of 60 The new CIMA syllabus requires a greater

understanding of the entire syllabus ʹ you will need to

master the subject

ŽŶƚǁŽƌƌLJʹ support is available

ĨLJŽƵĚŝĚŶƚĂĐŚŝĞǀĞƚŚĞƐĐŽƌĞLJŽƵǁĂŶƚĞĚLJŽƵǁŝůů

need to sit the paper under the 2015 new approach

You will have a lot of the knowledge required to pass

but will now have to develop new skills to master the

syllabus and pass the paper via the computer based

exam

a waiver is available at Operational Level

tĞŬŶŽǁǁŚĂƚǁĞƌĞĚŽŝŶŐƐŽŐĞƚŝŶƚŽƵĐŚ

We are here to help you We can help you build a bespoke timetable for your success

If you are planning to sit your first OT style paper or planning to sit an integrated case study in 2015 contact

Jenny Hughes on jennyhugheshtftpartnershipcouk or 07983 350376

booktheexamworktheplan

CIMA results are out on the 18th

ƐŽǁŚĂƚŶĞdžƚ

infohtftpartnershipcouk 0121 745 8842

Recorded mock debrief

021_PQ 0115_PQ 1209 000 04122014 1450 Page 7

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

bigger work spaces

comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

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We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

and others

For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

Email adminthetrainingplaceorgCall 020 7252 9331

OPEN DAY7th amp 8th of January 2015

1200-400pm

TAKE YOUR ACCOUNTING CAREER TO THE NEXT LEVELSantarsquos giving FREE work placements with all trainings

Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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Start dates JanFeb 2015

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Payments must be made on or before the specified date and failure to comply

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

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WHY FBT

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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  • LowRes006_PQ 0115v2
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Page 22: PQ magazine January 2015

MoreConfidence

MoreFlexibility

MoreValueMore

Personalisation

MoreSupport

022-023_PQ 0115_PQ 1209 000 02122014 1429 Page 7

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

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comfortable learning environment

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Our clients tell us they value our

efficient administration

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varied range of course styles

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trusted opinion on exam training

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Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

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Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

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Start dates JanFeb 2015

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Payments must be made on or before the specified date and failure to comply

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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  • LowRes004_PQ 0115
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  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
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Page 23: PQ magazine January 2015

Find out more visit bppcommoresuccess

More SuccessMore BPPWe recognise that people are

diferent that is why wersquove changed

With your success in mind

Enhanced teaching

Transfer retention and continuous testing of knowledge provides students and

training managers with confidence leading up to the exam

Enhanced learning activities

All programme topics are broken down and introduced providing the structure

needed to approach the paper

Enhanced assessment

Physical and online question banks more feedback and an Achievement Ladder

that monitors progress allowing students to focus on weaker areas

Enhanced support

Through question feedback focus sessions tutor contact discussion forums and

Programme Advisors students will have all the support available when they need it

Enhanced online platform

All of this is enabled by an online area which enhances every element of the

learning experience

022-023_PQ 0115_PQ 1209 000 02122014 1430 Page 8

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

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Our clients tell us they value our

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trusted opinion on exam training

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Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

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ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

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1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

Ÿ

Ÿ

DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

and others

For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

Email adminthetrainingplaceorgCall 020 7252 9331

OPEN DAY7th amp 8th of January 2015

1200-400pm

TAKE YOUR ACCOUNTING CAREER TO THE NEXT LEVELSantarsquos giving FREE work placements with all trainings

Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
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Page 24: PQ magazine January 2015

Benjamin Franklin wrote in a

letter to French scientist Jean-

Baptiste Leroy on November

13 1789 saying ldquoOur new constitution

is now established and has an

appearance that promises permanency

but in this world nothing can be said to

be certain except death and taxesrdquo

As you are reading PQ magazine and

not Funeral Director Monthly (yes it does

exist) I will assume it is tax that you are

interested in

Tax computations are probably the

most vital part of the AAT Personal Tax

exam if you struggle with these you will

struggle to pass the exam The AAT

Personal Tax exam has the lowest pass

rate of any AAT exam with a pass rate of

567 However I am big believer that

everyone should have a working

knowledge of tax even those people who

have no desire to work in an

accountancy practice Even if you work

in industry and spend your days

calculating fixed overhead variances

(God forbid) you will be paid and you

will be taxed So you need to know if you

are paying the right amount of tax ndash

whether is it too much or too little It is

not unheard of for the person running

the payroll to make mistakes Remember

you the taxpayer have a duty to pay the

correct amount of tax

Benefits in kind The most common type of income in the

real world and in the exam is

employment income This is not just your

wages or salary but would also include

any benefits in kind ndash such as company

cars any bonuses ndash and allows a

deduction for any contributions made by

the you to an occupational (company

run) pension scheme Employment

income counts as lsquonon-savings incomersquo

which is basically anything that isnrsquot

interest or dividend income

Non-savings income is taxed at three

different rates ndash 20 40 and 45 ndash

known respectively as the basic rate

higher rate and additional higher rate

(sometimes called tax bands) You will

hear people talking about being a higher

rate taxpayer this does not mean that

they are taxed on all of their income at

40 Tax is incremental and so it is only

the amount of tax that falls into the

higher rate band that is taxable at this

rate

Importantly everyone receives a

personal allowance which for the

majority of people in 201415 (The

Finance Act 2014) is pound10000 The

Finance Act 2014 is the Finance Act that

becomes assessable in the Personal Tax

unit from the 1 January 2015 The

personal allowance is the amount which

the taxpayer can earn before they start to

pay tax So for example if you earned

pound25000 for the year pound10000 would be

covered by the personal allowance and

therefore would be tax free while the

remainder of pound15000 would be taxable

This is called the taxable income

I have previously mentioned tax bands

there are three tax bands and the

amount of taxable pay that falls into each

band is taxed at the appropriate rate For

201415 the basic rate tax band is

pound31865 so any non-savings taxable

income that falls into this band is taxed

at 20

In our previous example where you

were paid pound25000 you would be

entitled to pound10000 tax free which leaves

pound15000 to be taxed This is all below the

basic rate band of pound31865 so this is all

taxed at 20 Therefore the total tax

liability will be 20 x pound15000 = pound3000

The complication comes when

someone has more taxable income than

is covered by the basic rate band Letrsquos

assume you are awarded a pay rise and

so you now earn pound45000 You can still

earn pound10000 tax free which leaves

taxable pay of pound35000 The basic rate

band is pound31865 so you will have pound3135

that is not covered by the basic rate

band and this will fall into the higher

24 PQ Magazine January 2015

PQ AAT exams

Nick Cragg goes back to basics by explaining the role the personal allowance plays when calculating a tax bill

rate band You will be taxed at 20 on

pound31865 in the basic rate band giving a

tax liability of pound6373

You will also pay tax of 40 on the

part of your income that falls into the

higher rate bracket ie pound3135 This will

then be taxed at 40 giving an

additional tax liability of pound1254 (pound3135 x

40)

Therefore the total tax liability on

pound45000 is pound1254 + pound6373 = pound7627

Note that only the amount that is in

excess of the personal allowance and the

basic rate band is taxed at 40 The

taxpayer still receives the pound10000

personal allowance and still only pays

20 tax on the first pound31865 of their

taxable income this is the incremental

nature of tax

If you follow the tax computation

proforma and ensure that you tax your

non savings income first your savings

income second and your dividend

income last then this will help you go a

long way in passing your tax exam

Why donrsquot you have a go at calculatingthe taxable pay on a salary of pound50000Once you have calculated your taxliability you can watch me work throughthe answers at wwwfirstintuitioncoukblogaat-bloghtml

bull Nick Craggs is a tutor at FirstIntuition

PQ

LETrsquoS GET TECHNICAL

PQ Jan 15 p24_Layout 1 02122014 1323 Page 23

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

Online

revision

courses

with live question

debriefs and marked mock

exam

Call us to book

now

Our students tell us they appreciate

our smaller class sizes

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comfortable learning environment

continuity and flexibility of teaching

friendly contact and patience

considerable teaching experience

Our clients tell us they value our

efficient administration

personal service and good advice

varied range of course styles

flexibility of dates

trusted opinion on exam training

ability to increase their revenue

Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

Bristol

London 0207 323 9636 Maidstone 01622 755100 Manchester 0161 228 6564 Reading 0118 950 4173

facebook | twitter | linkedin | youtube

ficouk

0117 354 0191 Cambridge 01223 360 405 Chelmsford 01223 360 405 Dublin 01 662 3395

2

Simon Wilshire CIMA T4 Management Accountancy

Fiona Walker ICAEW Advanced Stage Business Change

world firsts

2013

3 regional firsts

2013

15 prize winners and

high achieversStudents taught by first intuition

at our 8 regional centres

1 UK first

2010 | 2012 | 2014

025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

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DaytimeEvening Courses

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We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

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Expert tutors

Flexible payments

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One-to-one coaching

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Start dates JanFeb 2015

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Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
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  • LowRes026_PQ 0115v2
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Page 25: PQ magazine January 2015

Accountancy isnrsquot as easy as 1-2-3

but wersquore getting it right

At first intuition we put our students first

NEW

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revision

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with live question

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Our results speak for themselves

Please call us or visit our website ficouk for AAT ACCA CIMA and ICAEW exam courses

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025_PQ 0115_PQ 1209 000 01122014 1358 Page 7

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

FREE Apprenticeships Ÿ

Ÿ

Ÿ

DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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OPEN DAY7th amp 8th of January 2015

1200-400pm

TAKE YOUR ACCOUNTING CAREER TO THE NEXT LEVELSantarsquos giving FREE work placements with all trainings

Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
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  • LowRes011_PQ 0115
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Page 26: PQ magazine January 2015

PQ Magazine January 201526

PQ AAT pass rates

PQ CIPFA apprenticeship scheme

RESULTS IN CBA Name UK Inter- Worldnational -wide

LEVEL 1

AA1 AAT Access 949 924 947

LEVEL 2

BAIPBKT Basic accounting IProcessing bookkeeping transactions 901 777 888

BAIICJBS Basic accounting IIControl accounts 871 754 858journals and the banking system

BCCGBCST Basic costing 951 903 946

CMPACPAG Computerised accounting software 925 540 864

WEAFWKAF Work effectively in accounting and finance 928 808 914

LEVEL 3

APIACPR Accounts preparation (I) 638 430 611

APIIFSTP Accounts preparation IIPrepare final accounts for sole traderspartnerships 826 605 795

CRSCSTR Costs and revenues 804 577 768

CMGT Cash management 618 351 547

ITXITAX Indirect tax 781 576 750

PEAFPETH Professional ethics in accounting and finance 712 536 687

SPSWSDST Spreadsheets software 867 727 843

LEVEL 4

FNPFFPFM Financial performance 600 372 568

BGTBDGT Budgeting 754 481 711

FNSTFSTM Financial statements 644 450 620

ICASISYS Internal controls and accounting systems 843 948 862

CRMCCRDC Credit management (and debt control) 705 399 665

CSHM Cash management 710 632 708

BTXBTAX Business taxation 690 450 652

PTXPTAX Personal taxation 567 444 567

EXAEXTA External auditing 833 365 574

OVERALL 799 592 772

So how have AAT PQs been doing at their lsquoassessmentsrsquo over thepast year Remember we shouldnrsquot ever call them exams ndash theseare computer-based assessments The pass rates are a veritable

feast and range from as high as 95 right down to 57 The overall pass rates for the current 22 tests on offer is 772 That

is for all worldwide sitters There is however quite a big differencebetween the international and UK pass rates ndash over 20 percentagepoints in the overall total That means while 80 of UK AATs are passingwhat they sit just 60 of international students are achieving the samesuccess

The Level 1 and Level 2 pass rates are all very healthy in the UK andall over 85 So where are the more difficult assessments The paperwith the lowest UK pass rate is perhaps surprisingly Personal Taxationat Level 4 which comes in with a yearly pass rate of 567 Othertougher assessments are Financial Performance (60) and CashManagement (618)

International students are struggling most with the Cash Managementassessment at Level 3 Just 35 of sitters passed this one dragging theworldwide pass rate down to 547

Another problem assessment for international students appears to beExternal Auditing Just 365 of sitters throughout the year passed thisone This is in stark contrast to the 83 of UK sitters who passed duringthe same time frame That must make worrying reading for the AATHow can one paper have a near 50 percentage point difference betweenUK and international students The AAT will have to invest a lot of timeand energy to ensure there is not such a great difference when theyrelease the next set of results in March 2015 PQ

Detailed in the table here are the worldwide success rates for computer basedassessments (CBA) results for the twelve months ending 30 June 2014

In order to maintain consistency in the reporting and monitoring of performance wehave calculated single success rates for parallel units eg the success rate for AQ2010and AQ2013 Level 3 Costs and Revenues is shown as the success rate for Level 3 Costs

and revenues (CRSCSTR) This method of calculations minimises the effect of thechanging distribution of the cohort as it transitions from AQ2010 to AQ2013 The next

report will be published in March 2015 for the year-ending 31 December 2014

Grant Thornton lands mobility award

DCBA SUCCESS RATES ndash YEAR ENDING 30 JUNE 2014

Grant Thornton has been named alsquoSocial Mobility Championrsquo by DeputyPrime Minister Nick Clegg reflecting

the companyrsquos commitment to hiring anddeveloping young people The award to the top10 firm is in recognition of their involvement inCIPFArsquos pioneering apprenticeships programme

CIPFArsquos scheme is designed to attractindividuals to a career in public finance Theone-year apprenticeship is managed by CIPFAallowing employers to focus on cultivating newtalent within their organisations whileapprentices on the scheme gain valuable workexperience in a variety of public sector settingsall at the same time as studying for a professionalaccountancy qualification

Rob Whiteman Chief Executive of CIPFAwelcomed the award saying ldquoCIPFA is delightedthat our apprenticeship scheme has had a handin making sure young people have fair and openaccess to employment opportunities at GrantThorntonrdquo He added ldquoOur apprenticeship

scheme means businesses can benefit fromtraining untapped talent across the UK We fullyback the Social Mobility Champion award as afantastic way to reward Grant Thornton whorecognised the potential of young people

through our scheme regardless of backgroundrdquoFor more information on the scheme visit

wwwcipfaorgapprenticeships emailapprenticeshipscipfaorg or call the EmployerRelations team on 020 7543 5757 PQ

Social mobility award goes to Grant Thornton thanks to its participation in CIPFArsquos apprenticeship scheme

Some of therecruits to CIPFArsquosapprenticeshipscheme whichwas launchedearlier this year

pq jan 15 p26 ccm_Layout 1 04122014 1341 Page 1

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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DaytimeEvening Courses

AccountingBusiness Admin Customer Service

Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

We offer Practical training courses Ÿ Sage Line 50Ÿ Sage PayrollŸ Excel SpreadsheetŸ Value Added Tax (VAT)Ÿ Management Accounts

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For more information Visit Carlton Cottages 12 New Cross Road London SE14 5BE

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

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We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

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Farnham office 01252 718777

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Weybridge office 01932 901900

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aim your career sights higher

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039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

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waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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First name

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Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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WITH LSBF MANCHESTER

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Payments must be made on or before the specified date and failure to comply

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
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Page 27: PQ magazine January 2015

PQ Magazine January 2015 27

CIMA syllabus changes PQ

The changes that CIMA is making to itsqualification are focused on making thisglobal qualification as flexible as

possible to progress through as well as blendingthe right mix of acquiring technical knowledgewith practical application The aim of thesechanges is to produce competent and confidentmanagement accounting professionals who canguide and lead their organisations to sustainablesuccess So said Noel Tagoe CIMArsquos ExecutiveDirector ndash Education The changes CIMA hasmade have meant that the entire professionaleducation industry has had to look at theeducational models that they have had in placeand evolve them to meet these changesSpecifically the challenges for our industry are1 To ensure that students can access theirtraining as flexibly as they can access theexam sittingsWith exams on demand and four windows a yearfor the case studies the concept of a traditionalrevision phase prior to a main exam sitting hasgone In order to offer flexibility of education wehave ensured students can access differentmodes of study from online to in centre with alarge number of start dates Every programmehas everything you need to pass the examincluded so there is no waiting for revisioncourses We expect most students will be examready within six to eight weeks of starting theirprogramme for a paper You are in control ofyour study planner now2 To ensure PQs are confident of success withthe pass marks moving to 70 for objectivetest papers (E1-E3 F1-F3 and P1-P3)This has also had a marked impact on theeducational programmes we offer With objectivetests as you will know from certificate level thelevel of exam technique required is much lessthan previously was the case with the previoussyllabus What is critical now is that you haveaccess to an extensive bank of exam standardquestions and that your knowledge focuses onbreadth of the syllabus rather than focusing on anumber of key topics This is why we havedeveloped a bank of over 300 exam standardquestions each with full explanations for everydistractor to ensure you can practise practiseand practise some more We have also ensuredthat with every programme you receive tutor-ledrecordings covering every topic within themodule up to 20 hours of coverage that allowsyou the confidence that if you need to reviewany area of the syllabus you have access tohelpful explanations at your fingertips3 To ensure students are ready to take thebrand new case studies ndash now one at everyprofessional levelThese case studies require good assumedknowledge from the OT papers at that level plusextensive practising of the techniques requiredwithin the new assessment software This is whywe have included all relevant assumed

knowledge within our case study courses for youto access if required and also created a mockexam environment that reflects exactly theapproach you will need to take in the real exam

We havenrsquot just made changes in line withCIMArsquos new syllabus We have listenedextensively to you our customers in focusgroups around the country during the past 12months Listening to you we have also taken theopportunity to enhance the support that isoffered to you not just during the classes butalso looking to personalise support byintroducing staff into new support roles Theyare there to help you stay on track with yourstudies to run specific lsquoFocus Sessionsrsquo that youcan attend free of charge on specific topics orexams allowing you to ask questions live to atutor as well as the traditional contact pointswith our extensive faculty across the UK

I recently attended a seminar where thepresenter outlined the following facts about howwe learn and remember information

bull We remember 20 of what we readbull We remember 30 of what we hearbull We remember 40 of what we seebull We remember 50 of what we saybull We remember 60 of what we do

Ultimately we remember 90 of what weread hear see say and do

Our new educational model BPP Momentumhas lsquolearning by doingrsquo at its core With the abilityto practise questions read feedback watchrecordings listen to expert tutors and askquestions we are confident that we can give youeverything you need to be successful In fact weare so confident we have included our Life TimePass Assurance with every programme we offer

Good luck with your exam results I hope theyprove to be a pleasant early Christmas presentand we look forward to helping youthrough your CIMA qualification in2015 bull Martin Taylor is CEO BPPProfessional Qualifications

PQ

CHANGES AFOOTBPPrsquos Martin Taylor examines the challenges to colleges being thrown up by CIMArsquos qualification changes

CIMA a newsyllabus and a newHQ in MoorgateLondon

pq jan 15 p27_Layout 1 02122014 1333 Page 31

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

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Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

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Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

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SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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  • LowRes001_PQ 0115v2
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Page 28: PQ magazine January 2015

bull Pass rate 48 (December 2013)bull Technical difficulty 510bull Weighting of calculations 5 ndash 10bull Weighting of discursive

elements 90 ndash 95bull Exam technique 810

The syllabus The P1 syllabus is often referred to as thelsquogatewayrsquo into the professional level It is aimedat enriching the understanding of the studentaccountant within the areas of governanceinternal control risk professional competenceand ethics as they prepare to become membersof the professional accounting community

The syllabus areas are

AGovernance and responsibility Featuringin all examinations students need to

understand the factors on which corporategovernance is founded such as agency theoryand how this affects the relationship with theorganisations and its stakeholders Additionallykey concepts such as transparency and therecently added content of innovation andscepticism are core topics as their application todifferent business scenarios is fundamental toexam success Understanding the variants ofapproach to governance between jurisdictionsthe new area of public sector governance andthat of the private sector are important Thefocus is on the application of these conceptsprinciples and approaches rather thanregurgitation of the information

BInternal control and review Sound systemsof internal control underpin effective

corporate governance and therefore featureregularly in the exam The effectiveness ofmanagement and their decisions relies heavilyon the internal control systems The syllabusexamines the objectives of control and drawscomparisons between approaches for exampleThe Turnbull Report and the Committee forSponsoring Organisations ndash COSO The reviewand audit of these systems are likely areas to beexamined as are any threats to theindependence of that review This area of thesyllabus builds on brought forward knowledgefrom F8

CIdentifying and assessing riskOrganisations need to identify categorise

and understand theimpact and likelihood ofrisks occurring Stronglinks with internalcontrol and theenterprise riskmanagement modelfrom COSO underpinsthis area Students needto be aware of the riskappetite of organisationsand how externalenvironmental changescan affect control andrisk management Examquestions are oftendrawn from the realworld it is goodpreparation to keep up-to-date with real-lifesituations Based on thepremise that it isimpossible to completelyeliminate risk theconcepts of ALARP (aslow as reasonably practicable) and related andcorrelated risk need to be understood Thenumerical element within P1 is minimal but ifexamined is likely to be in this context

DControlling risk The control of risk is vitalfor the concept of lsquoresponsible

managementrsquo and how stakeholders areaffected by corporate decisions It is important tounderstand the role of the risk manager riskcommittee and the concept that risk is theresponsibility of all employees Underpinning thisis the need to embed processes to consider risksand how the systems procedures culture andvalues of the organisation may be affected Closeattention to examples from the real word helpprepare for questions in this highly examinablesyllabus area Students may need to determineappropriate risk management strategies (usingthe risk map of TARA) and consider how riskcan vary in relation to the size structure anddevelopment of an organisation

EProfessional values ethics and socialresponsibility Covering personal and

professional ethics and their application to anaccountantrsquos duties behaviour and conduct in avariety of circumstances this has the potential tobe the most difficult area of the syllabus formany students Understanding the factors thatdetermine the ethical stance of individuals andthe ethical decisions they take is important as it

is feasible that students may have to discuss acircumstance from an ethical standpoint withwhich they do not agree Critical evaluation ofthe codes that professional accountants followmay also be examined In addition corporatesocial responsibility sustainability and theimplications for disclosure audit and reportingare important Particular attention should bepaid to the new syllabus area of integratedreporting More work may be needed here tounderstand potentially new concepts

Sitting the P1 exam P1 is a practical exam biased toward applicationrather than regurgitation of knowledgebull Close attention must be paid to the verb thatdrives the requirement bull Unless specifically requested time should notbe wasted on explaining theory or a modelapplication is importantbull It is important to relate your answer to thescenariobull A time-pressured exam students mustpractise time managementbull Be sure to read all of the articles written by theexaminer or the examining teambull Good structure to your answer is important toearn professional marks bull Gary Leyshon is the P1 Content Specialist atKaplan Financial

PQ

28

PQ ACCA P1 paper

PQ Magazine January 2015

Gary Leyshon discusses the ins andouts of the Governance Risk andEthics paper as PQ tackles the lsquoPsrsquo

GATEWAY TO SUCCESS

NEED HELP

Our professional tutors provide individual answers to

all your questions online and free of charge

httpopentuitioncomaskthetutor

THE lsquoPrsquo PAPERS

pq jan 15 p28_Layout 1 02122014 1336 Page 14

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

Reed Business SchoolReed Business School ReedBusinessSch

Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

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knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

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Walker Dendle Financial Recruitment

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AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

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Farnham office 01252 718777

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Weybridge office 01932 901900

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aim your career sights higher

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039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

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And as a leading recruiter in accountancy and finance working with leading

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To find out more about planning your career for the new year or to see our latest

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Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

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PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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  • LowRes001_PQ 0115v2
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Page 29: PQ magazine January 2015

CIMA 2015 syllabus changeWersquore prepared are you

Book online or call us

01608 674224wwwreedbusinessschoolcouk

SATURDAY 3 JANUARY10AM - 1PM

TUESDAY 6 JANUARY6PM - 8PM(Book online at reedbusinessschooleventbritecouk)

CONTACT US NOW TO BOOK A PLACE ON ONE OF OUR CIMA 2015 OPEN DAYS

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Link Like FollowReed Business School is a trading subsidiary of a registered Charity

and profits are covenanted to the Charity Bursaries towards ACCA

and CIMA fees available to other Registered Charities

Reed Educational Trust Limited Registered Number 32847

029_PQ 0115_PQ 1209 000 01122014 1504 Page 7

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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DaytimeEvening Courses

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Ÿ AAT Level 2 Certificate Ÿ AAT Level 3 DiplomaŸ AAT Level 4 Diploma

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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WITH LSBF MANCHESTER

Benefit from

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Start dates JanFeb 2015

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Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
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  • LowRes006_PQ 0115v2
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Page 30: PQ magazine January 2015

30 PQ Magazine January 2015

PQ ICAEW spotlight

Iwas astoundingly lucky to be asked toattend the recent One Young World youthleadership summit in Dublin on behalf of

ICAEW and Chartered Accountants WorldwideOne Young World was undoubtedly the most

thought-provoking humbling life-affirmingheart-breaking and inspiring event I have everattended Over four days I heard stories whichmade me cry stories that inspired me storiesthat I wouldnrsquot have thought possible had I notheard so many It has changed my perception ofthe boundaries of what I can achieve

I met so many inspirational people madesome fantastic new friends from CharteredAccountants Worldwide and have heard from somany young leaders with amazing stories

Irsquom amazed how relevant it is to so manythings discussed by the ICAEW Student CouncilThe ICAEW Business Futures themes centredon global tax education ageing and energycome to mind as does the Audit Futuresprogramme looking at how audit will change

All of these were key ideas throughout theconference with sustainability ndash of a globaleconomic system the environment and how weintegrate generations ndash the centre point

As a profession we accept a duty to work inthe public interest Itrsquos amazing that we do thisand we deliver a huge amount of value to societyin many more areas than is often recognisedOur contribution to ensuring compliance with

HMRC is invaluable in ensuring a functioningsociety The business advice we provide to start-ups ensuring they are set up on a sustainablefooting is one of the reasons we are such aprosperous nation while the pro bono workmany accountants do as trustees of charitieswith the BASE games or raising money for goodcauses is obviously hugely valuable

But we cannot rest on our laurels We need tobe willing to ask the tough questions ofourselves and of our clients Do we do enoughto ensure that the tax system isnrsquot just fairlyadministered but is fundamentally fair Can we

do more to help businesses not just in the UKbut further afield Can we ask a client whether itwould be better for everyone (and they savedmoney) by turning their PCs off each evening

One of the strengths of our profession is ourability to measure we are central to financialstability through our provision of financial auditbut wouldnrsquot it be great to be central toenvironmental stability through sustainabilityaudits Shouldnrsquot we also use the samemeasurement skills on ourselves to judge ournet contribution to society as well as measuringthe financial bottom line

The inspiring thing about One Young Worldwas not just the celebrities but the otherdelegates We need to build relationships withinand outside of the profession ndash we need to shareexperiences and ensure we are open to listeningto the experiences of those around the worldBuilding relationships will play a significant rolein the ICAEW Student Councilrsquos agenda over theremainder of my term in office Find out more about One Young World athttpwwwoneyoungworldcomChartered Accountants Worldwide ndashhttpwwwcharteredaccountantsworldwidecom Twitter ndash CharteredWW

PQ

Over 500 Bookkeepers under one roof Fifteen top industry speakers

including Minister of Pensions Twenty exhibitors And we gave away

a free Smart car Wow

But donrsquot despair

You can still change your career path and use your existing AAT

CIMA ACCA or ICAEW qualifications to become a Certified

Bookkeeper by exemption start your own practice serve Britainrsquos

small businesses and start a career that really makes you count

The Institute of Certified Bookkeepers

Proud sponsors of a PQ Award

wwwbookkeepersorguk

Sorry you missed it

BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER

ICAEW Student Council Chairman John Howarth represented ICAEW at the recent One Young World convention Herersquos how he got on

Therersquos a world outside your windowhellip

Howarth lsquoweneed to shareexperiences andensure we areopen to listeningrsquo

pq jan 15 p30_Layout 1 02122014 1343 Page 26

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Study please tick a box in 1A or 1B

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ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

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041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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Payments must be made on or before the specified date and failure to comply

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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re-sit course The nature of free resit depends on the preferred study mode

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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Page 31: PQ magazine January 2015

One aspect of IAS 17 leases that isregularly examined is sale andleaseback How it is accounted for

depends on the substance of the arrangementbut before considering the type of leaseback firstcheck whether the asset has been impairednamely is carrying value (CV) above fair value(FV) and if it is write the asset down to fair valuenormally via Dr ProfitLoss (PL)

Then consider the type of leaseback

If sale and finance leaseback In substance there is no sale as you haveretained significantly all the risks and rewardsHowever IAS 17 deals with this in two stepsbeing(1) Temporarily remove the asset and defer anyprofit which is later released to profitloss overthe lease term

For example Asset CV pound1000 is sold under asale and finance leaseback for pound1200 (=FV)

CV lt FV hence on impairment

Dr Cash pound1200Cr PPE pound1000Cr Deferred Income pound200

(2) Immediately after capitalise an asset and acorresponding liability using the normal IAS 17rules for a finance lease namely done at FV or iflower present value of the minimum leasepayments

Then simply obey normal finance lease rules(see my article in PQ magazine August 2014 ndashitrsquos on page 28)

If sale and operating leaseback In substance there is a sale as you havetransferred significantly all the risk and rewardsHence the asset is derecognised and youcalculate profitloss on disposal How this isaccounted for depends

If sale proceeds = FV then profitloss ondisposal taken to profitloss immediately

If sale proceeds gt FV then only profit up to FVtaken to profitloss and excess over FV deferredand later released to profitloss over the leaseterm

If sale proceeds lt FV and gets a loss then itrsquostaken to profitloss unless compensated byfuture low rentals in which case it is deferredand taken to profitloss over the lease term (ifyou get a profit its taken to profitlossimmediately)

Example 1 Asset CV 100 FV 120 and itrsquos sold under asale and operating leaseback for pound150Note the asset is not impaired as CV lt FV

Dr Cash pound150Cr PPE pound100Cr PL pound20Cr Deferred income pound30 later release to PL

2 Asset CV 100 FV 90 and itrsquos sold under asale and operating leaseback for pound70

Note the asset is impaired as CV gt FV by 10Dr PL 10Cr PPE 10

Dr Cash 70Cr PPE 90

Dr Loss 20

depends if rentals are market rates then DrPL

But if rentals are lt market rates namelycompensated then Dr Deferred expenditurelater released to profitloss over the lease term bull Jenny Winstanley Reed Business School

PQ

31PQ Magazine January 2015

international standards PQ

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Sale and leasebackJenny Winstanley explains how best to deal with questions on IAS 17

pq jan 14 p31_Layout 1 02122014 1345 Page 23

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

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Full postal address Home Work

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Phone

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Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

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Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
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Page 32: PQ magazine January 2015

The FRC has issued anupdated version of the UKCorporate Governance Codewhich raises the bar for riskmanagement

The Financial Reporting Councilhas confirmed that boards mustinclude a lsquoviability statementrsquo in

their strategic report to investors Thissays the FRC will provide an improvedand broader assessment of long-termsolvency and liquidity

It is expected that this statement willhave to look forward significantly longerthan 12 months The changes here willfocus companies on aligning reward withthe sustained creation of value

The updated version of the UKCorporate Governance Code (the Code)has also been changed in relation toremuneration Boards of listedcompanies will now need to ensure thatexecutive remuneration is designed topromote the long-term success of thecompany and demonstrate how this isbeing achieved more clearly toshareholders

The FRCrsquos Stephen Haddrill said thechanges to the Code are designed tostrengthen the focus of companies andinvestors on the longer term and thesustainability of value creation

He went on ldquoThe changes on goingconcern implement the reforms proposedby Lord Sharman whose work hasstimulated a sea change in thinkingabout the assessment and reporting ofrisk and business prospectsrdquo

Haddrill stressed that the Code will

continue to operate on the principle oflsquocomply and explainrsquo which has servedinvestors and the UK corporate sectorwell for over 20 years

The key changes to the Code include

Going concern risk management and internal controlbull Companies should state whether theyconsider it appropriate to adopt the goingconcern basis of accounting and identifyany material uncertainties to their abilityto continue to do sobull Companies should robustly assess theirprincipal risks and explain how they arebeing managed or mitigatedbull Companies should state whether theybelieve they will be able to continue inoperation and meet their liabilities takingaccount of their current position andprincipal risks and specify the periodcovered by this statement and why theyconsider it appropriate It is expectedthat the period assessed will besignificantly longer than 12 monthsbull Companies should monitor their riskmanagement and internal controlsystems and at least annually carry outa review of their effectiveness and reporton that review in the annual reportbull Companies can choose where to putthe risk and viability disclosures Ifplaced in the Strategic Report directorswill be covered by the ldquosafe harbourrdquoprovisions in the Companies Act 2006

Remunerationbull Greater emphasis to be placed onensuring that remuneration policies aredesigned with the long-term success ofthe company in mind and that the leadresponsibility for doing so rests with the

32 PQ Magazine January 2015

PQ corporate governance

RAISING THE BARremuneration committee andbull Companies should put in placearrangements that will enable them torecover or withhold variable pay whenappropriate to do so and should considerappropriate vesting and holding periodsfor deferred remuneration

Shareholder engagementbull Companies should explain whenpublishing general meeting results howthey intend to engage with shareholderswhen a significant percentage of themhave voted against any resolution

Other issuesThe FRC has also highlighted theimportance of the boardrsquos role inestablishing the lsquotone from the toprsquo of thecompany in terms of its culture andvalues The directors should lead byexample in order to encourage goodbehaviours throughout the organisation

In addition the FRC has emphasisedthat key to the effective functioning of anyboard is a dialogue which is bothconstructive and challenging One of theways in which such debate can beencouraged is through having sufficientdiversity on the board including genderand race Nevertheless diverse boardcomposition in these respects is not onits own a guarantee Diversity can be justas much about difference of approachand experience The FRC is consideringthis as part of a review of boardsuccession planning and will consider theneed to consult on these issues for thenext update to the Code in 2016

The revised Code will apply toaccounting periods beginning on or after1 October 2014 PQStephen Haddrill

pq jan 15 p32_Layout 1 02122014 1346 Page 23

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

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Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

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Payments must be made on or before the specified date and failure to comply

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LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

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STUDY ACCACIMAIN BIRMINGHAM WITH FBT

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044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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Page 33: PQ magazine January 2015

33PQ Magazine January 2015

careers PQ

Lucy Clamp

PQrsquos Agony Aunt Lucy Clamp tackles a readerrsquos career problem (below)while here explaining how you can make your CV stand out from the rest

express themselves concisely andeffectively

However donrsquot be too mysteriousBullet points and key duties are greathowever donrsquot make yourself too much ofa closed book We still need to know whatyou achieved in line with your duties andhow you went about completing themRecruiters canrsquot sell your experience ifthey donrsquot get a full understanding ofwhat you have done

Balance is key Do not ever use funky fonts prettypictures or lsquocoolrsquo colour shemes Somecareer advisors suggest that quirkyadditions to your CV will make you standout from the crowd ndash photos logoscolours fonts and borders They wonrsquotWhen it comes to financial recruitmentyou will stand out ndash in the wrong way Itcomes across as immature and informalStick with traditional fonts (Arial Size 10ndash always a fail-safe choice) and nopictures Sometimes classic is best

Unexplained gaps Gaps in CVs lead to assumptions andprevent a clear image of the individual athand If you went travelling or took acareer break put it in your CVUndertaking a project demonstrates thatyou are a well-rounded individual

Additionally donrsquot leave out hugechunks of your work history to make yourCV look shorter You will have to give anentirely accurate account of your workhistory at some point so you might as wellmake it clear from the start

To summarise your CV is your bestopportunity to promote yourself Dedicatetime and effort until you are happy withhow it looks and reads Get friends orfamily to read it through for you If itdoesnrsquot excite them the chances are itwill not excite a recruiter or a potentialemployer either PQ

LAND YOUR CV AT THE TOP OF THE PILE

Lucy Clamp tackles your issues

Dear LucyI hope you can provide some much neededadvice please I am a part qualified CIMAaccountant I have completed the first level ofthe qualification My work experience is quitelimited at present ndash I have worked in APdepartments on the purchase ledger andexpenses for a few years (on and off due tohealth problems) I feel that my currentexperience is not taking me anywhere in termsof career progression as I am working inpurchase ledger as a temp

What do the experts recommend as the idealentry level jobs for prospective managementaccountants I shall be turning 30 soon andtime is of the essence

Your assistance will be much appreciatedNoaman Patel by email

Dear NoarsquomanThank you for getting in touch I appreciate yourfrustration I have met a number of candidateswho felt pigeon-holed in their professionHowever many found that through patiencededication and by making active changes totheir working life they have been able to take thenext step up

Working as a management accountant is arecurrent aspiration among financeprofessionals However when looking for yournext role I would suggest that you focus less onthe job title and more on the experience you cangain If an AP role comes up with theopportunity to pick up some additional generalaccounting skills then this could be a goodoption for you You can then tailor your CV sothat these skills become more prevalent

Additionally the fact that you are currentlyworking as a temp can work in your favour If a

company is looking for a more general accountsassistant on a temporary basis they will mostlikely need that person to join them as soon aspossible Therefore they are more likely toconsider someone who has some of thenecessary skills but not all of them in favour oftraining them on the job You may find thatworking for a small to medium-sizedorganisation can offer a broad spectrum roleslike this as they have fewer staff to cover all ofthe finance responsibilities

It is great to hear that you have completed thefirst level of your CIMA qualification Not only willthis have benefited your theoretical knowledge offinance but it also shows an employer that youare motivated to develop your skills beyond AP

I wish you the best of luck as you look toprogress with your careerbull Lucy Clamp Walker Dendle FinancialRecruitment

Too often we underestimate thepower and potential influence ofour CV We approach it as

merely a list detailing our experiencerather than as a marketing tool throughwhich we can really sell ourselves It isheavily apparent when meetingcandidates that there is a lack of thoughtput into their CV and in some instancesthey are not entirely familiar with itscontent You should devote time andeffort to your CV crafting it and knowingit back to front start to finish Here aresome key factors if you are to capitaliseon your number-one profile platform

Prioritise Contemplate which of your qualities takeprecedence when applying for a job Youcan be sure that recruiters looking atyour CV are in the middle of looking atdozens of others They are scanning forthe key information that they need ndash yourqualifications and your capabilities in theworkplace Make these clear

The more eye-catching your sellingpoints are the more likely prospectiveemployers are to captivate the interest ofthe reader at first glance against thecompeting CVs Additionally outline yourmost challenging and interestingresponsibilities at the top of your CVleaving the more mundane duties at thebottom First impressions will be madeupon reading those initial bullet points

Donrsquot waffle Lengthy paragraphs are a cardinal sinwhen composing your CV They may holdsome really impressive information butwhen faced with an abundance of CVs itis time-consuming and unappealing toread through lengthy chunks of text Italso implies a candidate who canrsquot

Dear Lucy Irsquom worried that Irsquom stuck in a rut

PQ Jan 14 p33_Layout 1 02122014 1430 Page 32

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
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Page 34: PQ magazine January 2015

34 PQ Magazine January 2015

PQ salary survey

PQ magazine delves into the Hays UK Salary ampRecruiting Trends 2015 guide And of courseherersquos our region-by-region salary checker

This year saw a considerable amount ofmovement in the accountancy job market inthe UK with both permanent and temporary

recruitment accelerating as the economic recoverygathered pace says the latest Hays salary guide

The uptake began last spring with a much busierjob market over the summer months than inpreceding years

Hays believes as private sector organisationscontinue to grow into 2015 it will be the skilledfinance professionals who can interpret business andfinance data manage cash flow enhance efficiencyand communicate with a business effectively who willbe in demand

Along with the demand for PQ and middlemanagement employees there has also been asignificant lsquoupliftrsquo in demand for accountancy support professionals particularly inSMEs ndash good news for you AATs out there

Many companies have been operating with very lean headcounts during therecession and they are now adding in the more specialist functions that supportgrowing businesses

Hays explained that the UK finance market remains dominated by permanentrecruitment but it expects demand for temporary and interim staff to pick up rapidlyas project work rises and many businesses increase their investment in technology orbegin other major business transformation programmes

Legislative and statutory changes are also affecting employment trends in finance Itis no surprise that real time information (RTI) reporting and pension auto-enrolmentare still causing pressure on the payroll sector

The survey found increased demand for qualified accountants and accountancysupport staff across most sectors particularly professional services educationengineering construction manufacturing and retail

Hays saw strong demand for commercially orientated finance professionals forfinance business partner roles and finance analysts with excellent data mining andExcel skills There has been a significant rise in the demand for NQs with 0-3 yearsrsquopost-qualification experience in all sectors This is starting to inflate the salaryrequirements for candidates This has seen a rise in counter-offers with somecandidates being offered several thousand pounds to stay where they are

There is also high demand for experienced part qualified accountants with anumber of employers looking to recruit graduates into these roles to cover a shortageof candidates

As the restraints on training contracts has well and truly been lifted Hays said it wasexperiencing a heightened demand for early and mid-stage studiers

The all-important SME market continues to show positive signs and this continuesto fuel the demand for experienced bookkeepers and ledger staff

If you want to access Haysrsquo UK Salary amp Recruiting Trends 2015 visitwwwhayscouksalary-guide PQ

North West

Salary range TypicalAAT Studier pound16000-pound22000 pound20000ACCA PQ pound21000-pound28000 pound24000ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound33000 pound28500CIMA Finalist pound28000-pound32000 pound30000CIPFA PQ pound20000-pound25000 pound22000CIPFA Finalist pound24000-pound30000 pound28000ACA PQ pound20000-pound28000 pound24000ACA Finalist pound25000-pound30000 pound29000

Scotland

Salary range TypicalAAT Studier pound18000-pound23000 pound20000ACCA PQ pound20000-pound25000 pound24500ACCA Finalist pound27000-pound32000 pound29000CIMA PQ pound25000-pound32000 pound27000CIMA Finalist pound25000-pound35000 pound29500CIPFA PQ pound17000-pound21000 pound19500CIPFA Finalist pound25000-pound35000 pound27000ACA PQ pound23000-pound30000 pound24000ACA Finalist pound26000-pound32000 pound26000

The futureof finance

South West

Salary range TypicalAAT Studier pound16000-pound24000 pound22000ACCA PQ pound24000-pound30000 pound28000ACCA Finalist pound28000-pound35000 pound32000CIMA PQ pound24000-pound32000 pound28000CIMA Finalist pound28000-pound33000 pound32000CIPFA PQ pound24000-pound30000 pound24000CIPFA Finalist pound28000-pound33000 pound30000ACA PQ pound24000-pound30000 pound25000ACA Finalist pound28000-pound33000 pound31000

West Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound26000 pound24000ACCA Finalist pound26000-pound32000 pound30000CIMA PQ pound24000-pound28000 pound25000CIMA Finalist pound28000-pound35000 pound33000CIPFA PQ pound19000-pound25000 pound21000CIPFA Finalist pound21000-pound29000 pound26000ACA PQ pound23000-pound27000 pound25000ACA Finalist pound26000-pound30000 pound29500

pq jan 15 P34-35_Layout 1 02122014 1347 Page 2

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

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Page 35: PQ magazine January 2015

PQ Magazine January 2015 35

salary survey PQ

London

Salary range Typical AAT Studier pound23000-pound27500 pound25000ACCA PQ pound28000-pound35000 pound32000ACCA Finalist pound35000-pound42000 pound38000CIMA PQ pound28000-pound35000 pound33000CIMA Finalist pound35000-pound42000 pound38500CIPFA PQ pound23000-pound30000 pound28000CIPFA Finalist pound28000-pound36500 pound33000ACA PQ pound28000-pound31000 pound29000ACA Finalist pound28000-pound32000 pound32000

North East

Salary range TypicalAAT Studier pound16000-pound20000 pound18000ACCA PQ pound20000-pound28000 pound25000ACCA Finalist pound26000-pound33000 pound31000CIMA PQ pound23000-pound30000 pound26000CIMA Finalist pound28000-pound35000 pound30000CIPFA PQ pound20000-pound28000 pound24000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound20000-pound26000 pound24000ACA Finalist pound24000-pound32000 pound30000

South East

Salary range TypicalAAT Studier pound16000-pound25000 pound20000ACCA PQ pound25000-pound35000 pound28000ACCA Finalist pound28000-pound40000 pound33000CIMA PQ pound26000-pound35000 pound31000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound24000-pound30000 pound28000CIPFA Finalist pound28000-pound35000 pound33000ACA PQ pound23000-pound29000 pound27000ACA Finalist pound27000-pound32000 pound31000

Yorkshire amp the Humber

Salary range TypicalAAT Studier pound15000-pound20000 pound17500ACCA PQ pound22000-pound27500 pound25000ACCA Finalist pound27500-pound34000 pound30500CIMA PQ pound22000-pound27500 pound25000CIMA Finalist pound27500-pound34000 pound30500CIPFA PQ pound22000-pound26500 pound24500CIPFA Finalist pound27500-pound33500 pound29000ACA PQ pound20000-pound26500 pound24500ACA Finalist pound25000-pound28500 pound27500

East Midlands

Salary range TypicalAAT Studier pound18000-pound24000 pound20000ACCA PQ pound22000-pound32000 pound28000ACCA Finalist pound28000-pound37000 pound31000CIMA PQ pound22000-pound32000 pound28000CIMA Finalist pound28000-pound37000 pound31000CIPFA PQ pound22000-pound32000 pound28000CIPFA Finalist pound28000-pound35000 pound30000ACA PQ pound22000-pound27000 pound24000ACA Finalist pound25000-pound32000 pound29000

East of England

Salary range TypicalAAT Studier pound17000-pound25000 pound21000ACCA PQ pound18000-pound35000 pound29000ACCA Finalist pound25000-pound40000 pound35000CIMA PQ pound18000-pound35000 pound28000CIMA Finalist pound28000-pound40000 pound34000CIPFA PQ pound21000-pound30000 pound26000CIPFA Finalist pound24000-pound38000 pound32500ACA PQ pound18000-pound30000 pound25000ACA Finalist pound27000-pound33000 pound30500

pq jan 15 P34-35_Layout 1 02122014 1348 Page 3

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
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Page 36: PQ magazine January 2015

036_PQ 0115_PQ 1209 000 02122014 1448 Page 7

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
  • LowRes042_PQ 0115
  • LowRes043_PQ 0115
  • LowRes044_PQ 0115
Page 37: PQ magazine January 2015

PQ Magazine January 2015

careers PQ

The workplace want to be an entrepreneurNew Deloitte initiative set to opendoors for would-be entrepreneurs

Deloitte has recognised the demands of a newgeneration of young professionals by creating apound25m fund for employees who want to start theirown businesses

Employees will be given funding and allowed towork full-time on developingtheir business idea whiledrawing on legal risktechnology brand marketingand other support from withinthe firm to help turn their start-up ideas into strong businesses

Deloitte felt it needed toaddress the demands ofemployees who aspire to adiverse and flexible career

Most businesses will be placed in a newly formedbusiness unit ndash Innovation Investments Limited ndashwith a reward model to ensure mutual benefit for theentrepreneur and the firm

Deloitte CEO David Sproul said the initiative offersa unique opportunity for staff members to pursuetheir entrepreneurial ambitions while remaining an

employee of Deloitte and benefiting from the strengthof its brand experience and expertise

Through the scheme any of the firmrsquos employeeswill be able to submit a new business proposal forconsideration If they are able to demonstrate thefeasibility of their idea they will enter a fundedincubation period during which they will stop workingon their day-to-day responsibilities to focus full-timeon developing their business The entrepreneurs will

use Deloittersquos existingrelationships to market theirnew business and if positivelyreceived seek further fundingto move their idea fromconcept to reality

Each start-up CEO will beable to identify and appoint anoperational team andleadership board to help

develop their business They will be the decision-maker in choosing whether to spend their allottedfunding on internal or external resources

More than 50 new business ideas have alreadybeen submitted since the schemersquos launch at theend of October The Innovation Investments team isnow working with each potential CEO to help developtheir ideas

37

The PQ Book ClubEVERY MONTH WE REVIEW THEBOOKS YOU SHOULD BE READING

Fighting Corporate Abuse BeyondPredatory Capitalism by the CorporateReform Collective (Pluto Books pound16)A quick flick through the chapterheadings will give you a good idea ofwhere the authors of this book arecoming from We have lsquotax evasionand avoidancersquo lsquocover-up accountingand auditingrsquo and lsquobad banking andmarket manipulation part 2rsquo toname just three

The members of the CorporateReform Group aremany and amongthem is our very owncolumnist ProfessorPrem Sikka Togetherthey are puttingforward ideas forlegislation andregulation that theyfeel will actually dealwith current abusesin the corporate

sector For them capitalism is still incrisis The problem is that thecorporate form has been manipulatedand the creation of highly complexcorporate groups only adds to the(permitted) abuses The collectivetackles head on the issues they feelcreate a corrupt system ndash we aretalking tax evasion extraction of valueand asset-stripping here

Some of the arguments have beencreated in Ivory Towers but theauthors are hoping that theirpractical proposals will influencethose running for election in 2015They honestly believe that things canbe done differently and you have toadmire their dedication to the cause

Even if you donrsquot agree with theirconclusions it is vital that you take alook at their arguments We havefound that Professor Sikka has oftenbeen ahead of the curve many of thethings he was calling for 10 yearsago are now being taken on board asgood corporate practicePQ rating 45 This is a fanasticbook ndash it is easy to read and itsdifferent perceptive is refreshing

Beware the robotsOne in three jobs could be

taken over by robots andcomputers in the next 20years with lower paid workersthe most vulnerable a Deloittestudy has warned Deloittepartner Angus Knowles-Cultersaid that jobs most likely to beunder threat include book-keepers and accounts clerks

Care and you earn moreCaring workers who fuss over

their colleaguesrsquo feelingsearn significantly moreand climb the careerladder quicker thantheir more ruthlessworkmates says newresearch So you donrsquotneed to be a GordonGekko to get ahead

Accountant to teacherBig 4 accountant Colin

Hegarty who took a pound40000 paycut to pursue greater jobsatisfaction in the classroom hasbeen named as one of the UKrsquosbest teachers Hegarty teachesmaths at Wembleyrsquos Preston ManorSchool and won the prize foroutstanding use of technology atthe Pearson Teaching Awards

Time to get sportyPeople who play organised

sports (at least every fortnight) earnnearly pound11000 a year more inaverage wages says new researchfrom property company CBRE Thatadds up to pound500000 over thecourse of a career And you willearn more depending on the sportsyou do with triathlon participantsearning the most the survey said

In brief

Nicoletta Neophytou Associate Assurance and Advisory Services has worked for thefirm in Nicosia for two years She has a degree in Economics from the University ofCyprus An ACA studier she was first in the world in the Financial Accounting exam

Life at PwC Cyprus

What time does your alarmclock go off on a workingday At 650 every morningWhatrsquos the first thing you dowhen you get to your deskTurn on my laptop and preparemy coffeeWhatrsquos on your desk Mylaptop pencil case a calendarand a photo of myself with mycolleaguesWhatrsquos the best thing aboutwhere you work Theprofessional friendly environmentand the team spiritWherersquos your favourite placeto go for lunchAn Italianrestaurant near the officeWhat (or who) can you seewhen you sit at your desk MycolleaguesWhich websites are yourfavourite and why The

Economist which keeps meupdated about the internationaleconomic affairsWhich websites do you usefor work Various economicwebsites and accounting websitessuch as the IASBrsquosHow many hours a week doyou spend in meetings Abouttwo hoursWhat time do youleave the office At6pmHow do you relax Igo walking with friendsor alone I like to clearmy mind of my daily concernsWhatrsquos your favourite tippleApple juiceHow often do you take workhome with you Rarely but thisdepends on how busy myschedule is

What is your favourite TVshow The Big Bang TheorySummer or winter WinterPub or club PubWho is your hero My parentswho always stand by me and towhom I can trust everything Theyhave built a good life for theirchildren through hard work and

by leaving their needsasideIf you had a timemachine wherewould you go I wouldvisit ancient Greece Iwould observe the way

of living the social relationshipsand the architecture in that periodof timeIf you hadnrsquot chosenaccountancy where mightyou be right now Irsquod be aneconomist

Sproul lsquoauniqueopportunityrsquo

pq jan 15 p37_pq oct07-p31 04122014 0943 Page 31

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
  • LowRes042_PQ 0115
  • LowRes043_PQ 0115
  • LowRes044_PQ 0115
Page 38: PQ magazine January 2015

020 8408 9999wwwwalkerdendlecouk

Find us on Facebook Twitter and LinkedIn

SUITABILITY

Walker Dendle Financial Recruitment has become established as a leading

recruiter of professional permanent and temporary finance staff in Surrey and

the surrounding area for over 12 years filling a diverse range of part qualified

finance and accounting roles across financial and management accountants to

commercial accounting and analysis to finance business partnering

We continually focus on adapting and refining our service to suit you offering sound and

knowledge based careers advice to part qualifieds seeking their next all-important job move

For more information about the range of career openings available though Walker Dendle

Financial Recruitment please contact

Permanent Division permswalkerdendlecouk

Temporary amp Contract Division tempswalkerdendlecouk

Walker Dendle Financial Recruitment

Swan House 51 High Street Kingston Surrey KT1 1LQ

AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES

THE SUITABILITY OF OUR JOBS SETS US APART

038_PQ 0115_PQ 1209 000 02122014 1145 Page 7

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
  • LowRes042_PQ 0115
  • LowRes043_PQ 0115
  • LowRes044_PQ 0115
Page 39: PQ magazine January 2015

Farnham office 01252 718777

farnhamhowett-thorpecouk

Weybridge office 01932 901900

weybridgehowett-thorpecouk

aim your career sights higher

wwwhowett-thorpecouk

039_PQ 0115_PQ 1209 000 28112014 1427 Page 7

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
  • LowRes042_PQ 0115
  • LowRes043_PQ 0115
  • LowRes044_PQ 0115
Page 40: PQ magazine January 2015

Treat yourself to a new job

this Christmas

reedglobalcomaccountancyjobs

Resources hints and tips for

Part-Qualified Accountants

reedpqhubcom

040_PQ 0115_PQ 1209 000 28112014 1501 Page 7

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
  • LowRes042_PQ 0115
  • LowRes043_PQ 0115
  • LowRes044_PQ 0115
Page 41: PQ magazine January 2015

CAREER PLANNINGALL WRAPPED UP

copy Copyright Hays Specialist Recruitment Limited 2014 HAYS the Corporate and Sector H devices Recruiting experts worldwide the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc The Corporate and Sector H devices are original designs protected by registration in many countries All rights are reserved

hayscoukpq

After a long hard year and with the holiday season fast approaching nowrsquos the

perfect time to start planning your career for the next 12 months Donrsquot leave

it to chance by wishing for an opportunity to come along talk to the experts

At Hays we specialise in recruiting part-qualified accountants meaning we can

help plan your career around you From managing your online profile to showcase

your skills and experience to networking updating your CV or just having

a confidential chat we have all the resources to make your career resolutions

come true

And as a leading recruiter in accountancy and finance working with leading

organisations across the UK we already have some of the best opportunities

waiting for you

To find out more about planning your career for the new year or to see our latest

roles contact Shahid Nawaz on 020 3465 0017 or email shahidnawazhayscom

Alternatively visit hayscoukofces to find your nearest Hays ofce

About you

Title

First name

Surname

Company name

Department

Full postal address Home Work

Postcode

Phone

Email

Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams

you are hoping to sit

ACCA CAT F1-3 F4-F9 P Papers

CIMA Certificate Operations Management Strategic T4

CIPFA Certificate Diploma Strategic

ICAEW CFAB Professional Advanced

ICAS TC TPS TPE

Tax ATT CTA

AAT Level 2 Level 3 Level 4 Member

1B Studying for an accountancy degreeMBAMSc Year 1 Year 2 Year 3

Do you work in accountancy and finance Yes No

If yes what is your job title

How do you want to receive your PQ magazine

Please tick your preferred mode of delivery for your free monthly magazine

Online (please supply email address) By post (UK only)

Sign below to receive your monthly PQmagazine totally free

Sign hereDate

Please tick here if you do not wish to receive direct marketing promotions from other companiesPQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulationWe will use your details to send you a copy of the magazine and any further information we feelwould be of use

PQmagazineThe easiest way to get your free monthly copy is to go online at

wwwpqmagazinecouk or you can fill in the form below and send it to

PQ Magazine 4th Floor Central House 142 Central Street London EC1V 8AR

041_PQ 0115_PQ 1209 000 01122014 1402 Page 7

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
  • LowRes042_PQ 0115
  • LowRes043_PQ 0115
  • LowRes044_PQ 0115
Page 42: PQ magazine January 2015

PQ Magazine January 2015

PQ got a story funny or serious you want to share Email grahampqaccountantcom

W E V E G O T T H E L O Trsquo

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 bereceived by Monday 5 January 2015 The main draw will take place on Wednesday 7 January 2015

TO ENTER THESE GIVEAWAYS EMAIL GRAHAMPQACCOUNTANTCOM42

Closing the GAAPWe have a two-for-the-price-of-one offer here Twolucky readers will be sent Sandy HoodrsquoslsquoManagement Accounting for Dummiesrsquo and PwCrsquoslsquoManual of Accounting New UK GAAPrsquo ndash that isabout pound65 worth of books Hoodrsquos book providestrainees with the basic concepts terminology andmethods to identify measure analyse interpret andcommunicate accounting information in the context of managerial decision-makingPwCrsquos manual provides comprehensive guidance on the new accounting regime Send your name and address to grahampqaccountantcom ndash heading up youemail lsquoTwo4one giveawayrsquo ndash and we will do the rest

Get fully rechargedHave you noticed how quickly yourphone and iPad battery runs downthese days Well top recruiter Hayshas given us a great little gadget tomake sure you are always fullycharged and ready for action Wehave five chargers to give away

To enter this giveaway you need to send an email tograhampqaccountantcom Head up your email lsquoHaysrsquo andplease include your name and address so we can post theprize straight after the draw

SMART DRUGS DONrsquoTHELP SMART PEOPLEIt may seem counter-intuitive but smartdrugs taken to boost academicperformance do not help clever students

The latest research foundthat gifted studentswho use drugssuch as Modafinil

actually do worse intests Unfortunately scientists

said they can help those whostruggle They said ldquopsychostimulants

improve people at the lower end of thespectrum in cognition [but] impair peoplewho are at the optimum level of cognitivefunctionrdquo

BEWARE FAKE STATEMENTSOutsourcing firm G4S was recently thevictim of a hoax press release claiming ithad overstated its profit by pound400m and hadsacked CFO Himanshu Raja Thestatement said as a result of an internalaudit G4S intended to restate its financialstatements for 2013 The firmrsquos share pricefell by 35 after the email was sent outrecovering later in the day and finishing 2higher The fake email even contained alink to a phoney G4S website whichmirrored the genuine site Someone had

gone to a lot of trouble to put G4S in the manure

CALL ME A C-MANForget the X-men one London companyis offering accountant C-men (thanks BigBang Theory for that joke) The LondonSperm Bank recently took out ads on theLondon Underground claiming it couldfind your perfectmatch Andyes accountantswere among thegroups youmight want toreproduce withapparently

WHO SPILTTHE BEANSThe Evening Standardrsquos lsquoCity Spyrsquo had itsown take on the recent Tesco debacle Itventured that one whisper doing therounds was that the alarm raiser wasnone other than new boss Dave Lewishimself The tale goes that he alreadyknew there were problems and wanted toget everything out in the open rather thanbecome part of the cover-up Just arumour ndash remember

THE REDSHOESIt was Professions Weekrecently ndash PQ hopes thatdidnrsquot pass you by Thelaunch was at the House ofCommons and one of thestar turns was the ACCArsquosHead of UK SarahHathaway What alwaysbrings a smile to our facesis how lsquoon brandrsquo shealways is Her shiny redshoes are a perfect matchfor the ACCA logo ndash andthere is no shame in that

BORN IN THE USABoris Johnson has got himself in trouble with theUS tax authorities Born in New York he holds aUS passport and all US citizens have to file a taxreturn each year to the Internal Revenue ServiceIt appears Boris has not been doing that and hefaces up to a year in jail for lsquowilful failurersquoQuestions have been raised about whether he willneed to declare the US earnings from the sales ofhis latest tome lsquoThe Churchill Factorrsquo

ALL DOWN TO LOOKSMale entrepreneurs are far more likely to receiveinvestment than females say researchers fromHarvard Business School But wait ndash they alsodiscovered that sexy male entrepreneurs do evenbetter Attractive males were lsquoparticularly persuasiversquobut this was not true of attractive female ones saidthe boffins Researchers were trying to understandthe gap between the number of female and maleentrepreneurs The study seems to confirm theinherent bias in society towards male businessmen

WE WILL FREEZEYOUR EGGSHow long beforeaccountancy firms startto offer to fund eggfreezing and fertilitytreatment for staff BothApple and Facebook hitthe headlines for offeringto fund egg freezing forfemale employees in theUS who want to delaystarting a family Thislsquoperkrsquo is already commonpractice at some majorbanks and law firms areexpected to follow suit inan effort to keep topfemale staff

PQ jan 15 p42_pq aug 13 fun 02122014 1350 Page 42

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
  • LowRes042_PQ 0115
  • LowRes043_PQ 0115
  • LowRes044_PQ 0115
Page 43: PQ magazine January 2015

M A N C H E S T E R

BECOME A QUALIFIED ACCOUNTANT

WITH LSBF MANCHESTER

Benefit from

Choose from

Expert tutors

Flexible payments

Pass guarantee

One-to-one coaching

ACCA and CIMA

Start dates JanFeb 2015

wwwLSBFmanchestercomPQ

0161 669 4272

Payments must be made on or before the specified date and failure to comply

will render the agreement null and void

LSBF Manchester Pass 1st Time Guaranteetrade ensures that if you do not

successfully pass your paper on the first sitting you will be able to attend a free

re-sit course The nature of free resit depends on the preferred study mode

043_PQ 0115_PQ 1209 000 28112014 1427 Page 7

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
  • LowRes042_PQ 0115
  • LowRes043_PQ 0115
  • LowRes044_PQ 0115
Page 44: PQ magazine January 2015

STUDY ACCACIMAIN BIRMINGHAM WITH FBT

t Flexible Study Modes t Expert Tuition

t Customised Payment Plan

t 247 Access to Online Resources

WHY FBT

Next intake dates January February 2015

IN PARTNERSHIP WITH

0121 616 3370

2nd floor 5-7 Hill Street Birmingham B5 4UA

wwwfbt-globalcomPQ

044_PQ 0115_PQ 1209 000 28112014 1427 Page 7

  • LowRes001_PQ 0115v2
  • LowRes002_PQ 0115
  • LowRes003_PQ 0115
  • LowRes004_PQ 0115
  • LowRes005_PQ 0115
  • LowRes006_PQ 0115v2
  • LowRes007_PQ 0115
  • LowRes008_PQ 0115
  • LowRes009_PQ 0115
  • LowRes010_PQ 0115
  • LowRes011_PQ 0115
  • LowRes012_PQ 0115
  • LowRes013_PQ 0115
  • LowRes014_PQ 0115
  • LowRes015_PQ 0115
  • LowRes016_PQ 0115
  • LowRes017_PQ 0115
  • LowRes018_PQ 0115
  • LowRes019_PQ 0115
  • LowRes020_PQ 0115
  • LowRes021_PQ 0115
  • LowRes022_PQ 0115
  • LowRes023_PQ 0115
  • LowRes024_PQ 0115
  • LowRes025_PQ 0115
  • LowRes026_PQ 0115v2
  • LowRes027_PQ 0115
  • LowRes028_PQ 0115
  • LowRes029_PQ 0115
  • LowRes030_PQ 0115
  • LowRes031_PQ 0115
  • LowRes032_PQ 0115
  • LowRes033_PQ 0115
  • LowRes034_PQ 0115
  • LowRes035_PQ 0115
  • LowRes036_PQ 0115
  • LowRes037_PQ 0115
  • LowRes038_PQ 0115
  • LowRes039_PQ 0115
  • LowRes040_PQ 0115v2
  • LowRes041_PQ 0115
  • LowRes042_PQ 0115
  • LowRes043_PQ 0115
  • LowRes044_PQ 0115