pq magazine, october 2014

PQmagazineOctober 2014 www.pqmagazine.co.uk / www.pqjobs.co.uk

BRIBERY AND CORRUPTION

MEET JAMES A PQ STAR

We launch our search for the2015 winners. Get nominating…

FARAGE vACCOUNTANCYAll the fun of the fair can be found in this issue!

ACCOUNTANTAND AUTHORWe speak toAnna Belfrage

THE VOICE OF PQs

NEW DATEFOR CIMA

RESULTS P8Christmas not cancelled after all

as results date is moved

‘P’ IS FORPROBLEM P21

ACCA admits to big problemswith the options papers

Contact usemail: graham@pqaccountant

twitter: @pqmagazinefacebook: pqmagcall 020 7216 6444

FABULOUSGIVEWAYS!WIN HOLIDAYVOUCHERS –OR AN AATSTUDY PACK P36

P37

P42

P30

P14

Don’t do it– unless you canafford to

pay!

PQ Oct 14 p01_pq feb 12 p01 09/09/2014 14:42

Revision

PlusTuition +

NowAvailable!

01908 540 069 [email protected]

www.kaplanfinancial.co.uk/CIMAcomplete

Find out more about the new courses

Lifetime PassGuarantee

#

with all completepackages

Objective TestComplete Package

Confidently pass your

objective tests with our

recommended package

Case StudyComplete Package

Detailed analysis,

technical recap and exam

practice will guide you to

case study exam success

Complete a level in 6, 9 or

12 months

Guiding you on yourjourney to CIMA success

.DSODQÑV�QHZComplete CIMA packages

Complete success – with pass marks increasing to 70%,* our

courses offer 100% syllabus coverage to ensure you develop

a deep understanding, and can apply this to the exam

Complete confidence – as the official CIMA publisher, our study

materials are the only ones reviewed and approved by CIMA,

so you can be confident they cover everything you need to know

Complete flexibility – flexible timetables starting every 3 months

so you can fast track or take a break

Complete support – we have a comprehensive range of courses in

15 centres nationwide, plus Live Online and Distance Learning

allowing you to get the level of support you need* For Objective Test subjects. 60% for case study exam.

# To qualify for the Lifetime Pass Guarantee, certain criteria must be met.

T&Cs apply. See website for details.

002_PQ 1014_PQ 1209 000 08/09/2014 14:01 Page 7

comment PQ

News08CIMA results Date changemeans Christmas not cancelled!10ACCA annual report Concernat dip in ‘satisfaction’ levels12CIPFA new syllabus Detailsto be unveiled after consultation

Features, etc06Mind your Ps&Qs Joining anexclusive club; ACCA not playingfair; and our Twitter updates14Bribery and corruption Spotthe danger signals at work

16ACCA P7 Our guide to passingthis toughest of tough papers19International standards #1The new IFRS 9 explained; anda guide to the work of the FRC

21ACCA optional papers Howto deal with the ‘P’ papers

24International standards #2IFRS 13 – all you need to know

26Let’s get technical Tacklingquestions on the Trial Balance

28CIMA 2010 syllabus Voyagethrough the managerial level

29Capital move University ofSouth Wales sets up in London

30PQ Awards 2015 We launchthe finest and most fun awardsin accountancy; and we caughtup with our PQ of the Year32ACCA F4 How the examinerviews the changes to this paper33CIPFA focus IPSAS explained

34CIMA PEGs More highlightsfor the Post Exam Guides35CIMA 2015 syllabus Newexams will differ – but how?36Great giveaways Win holidayvouchers – and a great AATtraining pack from First Intuition37Profile Meet Anna Belfrage, anaccountant with a successfulsecond career as an author38Careers #1Skills you will need39Careers #2 Life at BPP; andwhat employers expect from you42Fun time Accountancy’s lighterside; and more great giveways

The columnistsRobert Bruce The financedirector’s lot is not a happy one 8Prem Sikka Exploding the myth ofshareholder ownership 10Carl Lygo European tour broughtaccountancy past to life 12

Subscribe to PQ magazineIt’s FREE – see page 40 or go to

www.pqmagazine.co.uk

ABC July 2012–June 2013

32,463

Publisher’s statement: We have adigital issue of the magazine whichis sent to 11,462 requested readers

The power of the press?Well, who would believe it – we have helped save Christmas!In August, we exclusively revealed that CIMA had pushed its

November results release date from early January to 23 December2014. That didn’t please everyone. I even met someone who felt CIMAwould ruin Christmas for many of its PQs. It was suggested that a farbetter day would be Thursday 18 December and what do you know?CIMA has announced a new release date – Thursday 18 December.Hey, we are good!

This month sees the launch of our search for the next winners of thenow-legendary PQ awards. This year we have some new sponsors, inthe form of the ACCA, CIMA, CIPFA and the ICAEW. We also have anew venue for the awards night – Café de Paris, in the heart ofLondon’s West End. It is just as well we have launched them this monthas we have already had some entries! The nomination form can now bedownloaded at www.pqmagazine.com. Just click on the ‘pqawards’ tab– the form is just a click away. And remember, as we always say, youhave to be in it to win it – so come, on get nominating.

We know how exciting it can be to get shortlisted. PQ magazine wasrecently announced as a finalist for the AIA Award for AccountancyMedia. We will tell you how we got on next month, but win or lose weare happy for the nomination and will be celebrating either way.

Don’t forget our giveaways. There is still time to enter our holidaycompetition – that’s £750 worth of Thomas Cook vouchers, courtesy ofHome Learning College. We are also giving you the chance to receive aFirst Intuition Complete Study Pack for one of the key AAT papers(page 36). And there’s the Daily Telegraph Tax Guide 2014 and ‘BoostYour Brain’ books up for grabs on page 42. See how much we love you!Finally, I just wanted to thank Ed Sheeran for making Graham trendyagain. I am just a little upset that his cat, called Graham, has moretwitter followers than me – 101,000 when we last looked.

Graham Hambly, PQ magazine editor ([email protected])

CONTENTS October 2014

Study when it suits you with CIMAstudy.comCIMAstudy.com is the only online learning resource

developed, written and reviewed by the CIMA faculty.

You can study anytime, anywhere and at your own pace

with multiple resources available to help you learn the

theory, test your knowledge and pass your exams.

NEW and improved content for CIMA 2015 syllabus.

www.CIMAstudy.com

Working in partnership with Kaplan our

approved study materials provider.

* Excluding VAT. Prices may vary depending on location. £110 for one paper, based on Certificate level,

multiple paper discounts are available.

2015 coursesnow available

from £110*

PQ oct 13 p3_pq aprl08 p04 10/09/2014 10:43 Page 1

PASS 1ST TIME GUARANTEE

Receive a free* course in the unlikely

event that you do not pass the exam

first time around.

ONE-TO-ONE COACHING

Tailor your study and increase your

chance of passing with one-to-one

support from your tutor.

TUITION REVISION

++

STUDY ACCA PART-TIMEWITH LSBF

8-TIME WINNER

* LSBF Pass 1st Time Guarantee™ ensures that if you do not successfully pass your paper on the first sitting, you will be able to attend

a free resit course. The nature of the free resit depends on the preferred study mode. Please visit the website for full terms and conditions.

004-005_PQ 1014_PQ 1209 000 09/09/2014 11:34 Page 7

LIVE ONLINE LECTURES

With 3 live lectures per day, we are

giving you more flexibility than ever.

Choose a lecture time to suit you.

NEW

Available 3 times a day

ACCA PREP CENTRE

Check out our brand new

ACCA Prep Centre, where you will

find revision videos, past-paper

questions, topic summaries and

much more.

NEW

G

QUESTION BASED DAYS EXAM EXTRAS

+ +

www.LSBF.org.uk/PQ 020 3535 1111

APPLY NOW

004-005_PQ 1014_PQ 1209 000 09/09/2014 11:35 Page 8

PQ have your say

ACCA not playing fairI feel I am being victimised by theACCA repeatedly and I’m reachingbreaking point. All they areinterested in is money, money,money.

I write to express my utter disgustabout my June 2014 results. I am a38-year-old man with a family tocare for. It is difficult to study andcare for a family, but I have beentrying very hard. But I must say thatI feel very bitter with the markingteam.

For P7 I was given 46 marks outof 100, and for P5 just 43 out of100. I was expecting to clear myfinal papers, or at least P7. I know Imanaged my time better in thissitting than any other I can recall. Ispent weeks of sleepless nights. Mywife complained that I lost weightchannelling all my energies intothese two final papers. I practised,practised and practised and in aneffort to finish my studies I evenpaid for online tuition, which costme over $2,000. At my exam centreout of the 10 people who sat P5only one passed, and this was herfourth or fifth attempt. Everyonefailed P5.

I now believe what many studentson the online forum have beensaying, that ACCA has a ‘fail rate’ tomaintain. We students are notstupid and we are getting wisereach and every day. If thistreatment continues the ACCA will

*T&Cs apply. Please see website for details.

ACCA + FUNDED MBA*

Increase yourearning potential

Gain two globally

recognised qualifications

Top up your ACCA with an MBA in as few*

as 2 extra modules and a dissertation.

Free financialskills certificates*

www.LSBF.org.uk/PQMBA

020 3535 1111

PQ Magazine Fourth floor, Central House, 142 Central Street, London EC1V 8AR | Phone: 020 7216 6444 | Email: [email protected]: www.pqmagazine.co.uk | Editor/publisher: Graham Hambly [email protected] | Advertising manager: Polly Thrasivoulou [email protected]

Associate editor: Adam Riches | Art editor: Tim Parker | Subscriptions: [email protected] | Contributors: Robert Bruce, Prem Sikka, Carl Lygo, Tony Kelly, Phil Gammon, Jo Daley | Origination and print services by Classified Central Media

If you have any problems with delivery, or if you want to change your delivery address, please email [email protected] by PQ Publishing © PQ Publishing 2014

An exclusive clubI passed my final CIMA exam thisyear but was struggling to getaround to starting the work-basedportfolio. Then I noticed in thelatest issue of PQ magazine astory stating there are just 745members of UK accountancybodies worldwide under the age of25, of which CIMA has just 59. Sowith six months until my 25thbirthday I want to make this veryexclusive club!

Anyway, what I’d really like toknow is where thisinformation came fromas it’s something I’dlove to use – even if I’m

only in the club for a few monthsI can say I was in it! Is there anyway the information can beverified, I’m shocked it’s so low?Mark, LiverpoolThe editor says:The statistics –which are onpage 13 of ourSeptember issue– come from theFinancial Reporting Council’s ‘KeyFacts and Trends in AccountancyProfession’ report, which isreleased each year in June. It’spacked full of interestingnumbers and is well worthseeking out.

The writer of the star letter each month wins a fantastic ‘I ❤ PQ’ mug!

Hot & TweetPQ magazinerecently travelledto south London,to see some AAT studentsreceive their certificates. It wasa great afternoon, reaffirmingour belief that accountancyqualifications can provideeveryone with an opportunity to‘get on’. So, we said: “Well

done Julie Agbowu and her AllInclusive team – great AATceremony in Croydon today.”

We also tweeted our shockthat a US firm really wasreviving the Andersen name!“From today WTAS in SanFrancisco becomes AndersenTax,” we wrote. And PQreminded you that paper taxdiscs will come to an end on1st October.

Follow us @PQmagazine

email [email protected]

fail in years to come. Another observation is that I

don’t usually get in the ‘40s’ in myexams. If I sit a bad exam I usuallyget in the 30s, other than that Ipass.

The honest truth is that I reallyfeel ripped off and I don’t feel lovedby ACCA at all.Concerned overseas PQ, by emailThe editor says: We wouldwelcome a response from theACCA on the issues raised here.

Thank you PQ!Thank you so very much for thepower box, tax tables and much-loved PQ mug! It turned up onFriday and it was such a lovelysurprise. I have been reading PQmagazine each month for the pastfive years from cover to cover and Ihave found it useful, not only whileI was preparing for the CIMAexams but also after I qualified.

Thank you so much once again.Zsuzsi, by email

Great exam articlesI really enjoyed two articles in theSeptember issue of PQ Magazine.The one on ACCA F9 paper –‘Management issues’ by ZoeRobinson – provided distinctiveenlightenment about the elementsof the syllabus as well as theexpectations for the exam paperbased on the new format takingeffect in December 2014 examsession. The other one I reallyenjoyed was ‘Are you ready for F7?’by Danusia Wysocki. Although Ipassed the ACCA paper F7 in June2014, I found this article reallyinsightful. Financial Reporting isone of my favourite subjects andthe article was a form of revision forme, testing the strength of myknowledge retention. The questionthemes are things one should knowwithout a second thought.

Thank you for such articles. Itwould be nice if one could seemore of these.Olayinka Lawal, by email

PQ oct 14 p6_pq aprl08 p04 11/09/2014 12:12 Page 1

© 2014 BPP Holdings - BPP Professional Education - Part of the Apollo Global Education Network.

*Pass Assurance terms and conditions apply - See http://www.bpp.com/terms/l/pass-assurance for details.**To qualify for ten Professional Development Courses as part of the Career Development Guarantee with BPP Professional Education Limited (“BPP PE”) free of charge, two ACCA or CIMA papers must be booked at the same time. This ofer does not apply to our Basics courses. Only certain online Professional Development Courses apply, the list is available at http://www.bpp.com/terms/l/bpp-career-development-guarantee. To qualify for a further online Professional Development Course with BPP PE of up to £500 in value; two years must have lapsed since you attended the tenth free PD course, all ten PD courses must have been attended, you must have passed the two CIMA or ACCA papers purchased as part of the ofer within that 2 year period and you will be required to demonstrate that your career has not developed in that 2 year period. Further conditions apply. The ACCA and CIMA Career Development Guarantee ofer will be available between 08.00am on 2 June 2014 and midnight of 31 December 2014. See http://www.bpp.com/terms/l/bpp-career-development-guarantee for full terms and conditions. ˆCalls will be charged at a local rate.

Go further...With BPP’s online learningBPP’s Online Classroom provides a wealth of online content and proactive tutor support

that is designed to be flexible to suit your needs. If you’re just starting your ACCA

Knowledge or CIMA Certificate paper, why not take it one step further and use our

award winning Online Classroom Live which comprises of 100% live and interactive

sessions, allowing you to engage with your tutor and other class members.

As you’d expect from BPP, we ensure you have everything you need to sit your exams

with confidence, no matter which online method you choose.

If you’d like to find out more about the benefits of choosing an online approach to study

please visit bpp.com/online-learning

Sign up now for one of our upcoming and interactive online learning demos.

Register your interest at

bpp.com/online-learning

We guarantee to go further...

Protect yourself with Free Pass Assurance*

In the unlikely event you fail BPP will pay for up to two resit exams

BPP’s Career Development Guarantee**

Free professional development courses to help you go further in your career

Market leading online learning

Study in your own time with the support of a dedicated tutor through

BPP’s Online Classroom

Study tips and exam support

Get advice and guidance from our expert tutors to help you pass first time

World class study materials

Comprehensive range of study support materials available as part of

your studies.

Go further and call...

03332 207 259 bpp.com/online-learning

ˆ

I chose BPP because of the high success rates

Chloe Burton,

BPP Student

007_PQ 1014_PQ 1209 000 08/09/2014 13:56

8 PQ Magazine October 2014

PQ news

New role for Sir WinSir Win Bischoff (pictured)

has been hire by JP Morgan Chaseas chairman of its main Europeanholding company. In May, he wasappointed chairman ofthe Financial ReportingCouncil (FRC) and therehave been a few raisedeyebrows over this latestappointment. The FRChas said that his new role iscompatible with the work he doesfor them as both positions are parttime.

Reshaping FRSSEThe Financial Reporting

Council’s existing FinancialReporting Standard for SmallerEntities (FRSSE) has been

withdrawn. Following changesin EU law, small companiesneed to include less informationin their accounts and fewermandatory disclosures. TheFRC is proposing to issue a

new accounting standard formicro-entities, companies typicallyturning over less than £632,000 ayear. The Financial Reporting

Standard for Micro-entities(FRSME) will make accounts forthese entities simpler.

Exemption problemsCIMA’s P2 examiner is not a

happy bunny. Too many PQs arejust not studying the wholesyllabus, says the latest Post ExamGuide. More worrying is the claimof a knowledge gap because ofCIMA’s exemption policy. Theexaminer says that this problemhas not been addressed by CIMA,and now students are suffering!

In brief

CIMA November results date brought forward

Are you addictedto your mobile?College students are putting theiracademic studies at risk by spendingup to 10 hours a day on theirmobiles, says new research from theUS. Baylor University’s JamesRoberts explained that as mobilefunctions increase, addiction to thisseemingly indispensable piece oftechnology becomes an increasinglyrealistic possibility.

His said that 60% of collegestudents admit they may be addictedto their phones and some indicatedthey get agitated when it is not insight. Roberts was worried thatmobiles may wind up being anescape mechanism from theirclassrooms. And for some, phones inclass may provide a way to cheat.

Option papers causeheadache for ACCAsThe ACCA has acknowledged thatthere is a big problem with itsoption paper pass rates.

Commenting after the Juneresults were released, Alan Hatfield,director – learning, revealed theACCA is now exploring new andinnovative ways to provide studentswith additional learning support,focusing particularly on the optionspapers.

The P5 paper stood out, evenamong the other poor optionalpaper pass rates – it was 29%. TheACCA was disappointed with thisand felt it could be partly explainedby its analysis, which showed thatfewer students accessed tuition forthis paper than any other paper.

Looking at the June test, the P5

examiner is concerned that basicmanagement accounting conceptsare not clearly understood. Here weare talking fixed and variable costs,or comprehending an operatingstatement.

And if you come to the examexpecting to repeat memorisedmaterial then you can expect toscore only 20%–30%. • See page 21 for more on this.

ACCA EXAM RESULTS JUNE2014 – WORLDWIDE

F1 – 80%; F2 – 60%; F3 – 63%;F4 – 45%; F5 – 39%; F6 – 53%;F7 – 47%; F8 – 40%; F9 – 40%;P1 – 52%; P2 – 47%; P3 – 46%;P4 – 35%; P5 – 29%; P6 – 39%;P7 – 36%

We should not feel too sorry forfinance directors and CFOs. They aregenerally well paid, though thestatistics show that their averagetenure in the role is shortening. Andlife is getting harder. They now facenew dilemmas that have nothing todo with their traditional work andthat takes them into the realm ofspeculation. The UK’s corporategovernance code has eased aconcept into play whereby directorsneed to produce a strategic reportthat provides a ‘fair, balanced andunderstandable assessment of thecompany’s position and prospects’.Nothing much, on the surface, toworry about there. Except for thatword ‘prospects’. This has been theFD’s bugbear down the ages.Reporting on what the future mayhold has always been hard. And theanswer has generally been toprovide so much information thatsomewhere within that mass of infothere will be a nugget or two thatwill appear relevant when read withhindsight in a few month’s time.

But the ‘cover-them-with-verbiage’option is harder now. The samecorporate governance code is tryingto limit the amount of voluminousdisclosure.

And this is where the FD is introuble. They will be damned if theydo, and damned if they don’t. If whatthey report turns out to be over-optimistic then the likelihood is thatthey will lose their job. And if it turnsout to have been too pessimistic thecompany is likely to be taken overand they will lose their job. Not aneasy life, that of the FD.

ROBERTBRUCEThe FD’s lot is not ahappy one

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

CIMA recently announced that the November resultswould not be released on Tuesday 23December 2014. But since PQfeatured the story on our August coverthat’s all changed – instead it will beThursday 18 December. That’s fivewhole days earlier and four short weeksafter the exams have been sat. In onefell swoop CIMA Noel’s Tagoe hasturned himself from Grinch to Father Christmas!

There had been an outcry from tutors whenCIMA first put forward a results date just two daysbefore Christmas. Many were worried thatdistraught students would not get the immediateadvice they needed, and it seems CIMA has nowagreed.

PQ understands the real hero behind this latestannouncement is CIMA’s Graham Eaton, who hassomehow convinced the examiners and markers

to put an extra shift in to get the results back early.

The search is on for those deservingof a PQ trophy. Yes, we are launchingthe PQ magazine Awards 2015. Wehave a new lush venue for you tolook forward to this year – the Caféde Paris, in London’s West End.

We also have some new sponsorsyou may have heard of – the ACCA,CIMA, CIPFA and ICAEW are all keysponsors this year,along with BPP,Kaplan Financialand many others.

Last year’sawards were amammothsuccess. Amongthe winners wereRotherham College’s SamanthaHannigan, Birmingham MetropolitanCollege and Reed Business School.

Our Private Sector Lecturer of theYear winner, Jennifer Saywell(pictured), features in this month’sLife at feature (see page 39) and ourPQ of the Year James Field is a coverstar!• Find out how to enter on page 31.

Win one ofour PQs!

Hatfield: working hard to make things better

PQ oct 14 p8_pq sept 12 p08 11/09/2014 10:55 Page 10

APPLY NOW

LIVE ONLINE LECTURES

With 3 live lectures per day, we are

giving you more flexibility than ever.

Choose a lecture time to suit you.

Available 3 times a day

6 DIFFERENT STUDYPACKAGES TO CHOOSE FROM

With LSBF online, you can now

choose from 6 different study

packages to match your

schedule and budget.

NEW

STUDYING ONLINE WITH LSBF HAS NEVER BEEN MORE FLEXIBLE!

www.LSBF.org.uk/accaonline 020 3535 1274

O N L I N E

*T&Cs apply. Visit website for full terms and conditions

Award-winning tutors

Award-winning platform

24/7 access to full syllabus in HD lectures

Pass 1st Time Guarantee*

009_PQ 1014_PQ 1209 000 09/09/2014 12:02 Page 7


PQ news

The ACCA is concerned. It’s latestannual integrated report showsthere has been a big year-on-yearfall in overall student and member‘satisfaction’. The perceived valueof the ACCA to the two groups isdown from 76% last year to70.8% this time around.That said, 83% of studentsand 78% of members stillbelieve they are part of aworld-class organisation.

That global organisationachieved a 4.8% growth in incomefor 2013/14 to £159m. Fees andsubscriptions grew by 7.5%, and atthe end of the year the ACCA wasleft with a gross operating profit of£25.9m, up by more than £3m.

The ACCA reveals that 80% of itsincome is derived from its 384,287students. These student numbersare again up, this time by 3.2%,due to a combination of increasedrecruitment and improvedretention. Qualification and examincome totalled £78m. Affiliates

and students also contributed£37m in fees and subs to thecoffers. The cost of exam deliverywas £4.6m

The ACCA’s report identified 25material issues, which it asked

external stakeholdersto rank in order ofimportance toACCA’s strategy.The top two are theintegrity of thequalification andstudent/member

growth and retention. The report also reveals Helen

Brand is some way down theleague table of accountancy bodyCEO pay. Her £339,772 packageleaves her in fourth place, behindthe CIMA, ICAS and the ICAEWCEOs.Members: 169,602 (2012-13161,943)Students & affiliates: 435,824(425,897) Staff: 1,098 (1,061)

ACCA ANNUAL REPORTOUT FOR ‘INSPECTION’

MOTIVATIONIS THE KEYEmployers want PQs who aremotivated and have relevant workexperience, according to the latestIndustry Report from GAAPweb andLSBF. The survey of ‘what employerswant’ also discovered soft skillsscored slightly higher than technicalskills. Employers put teambuilding andcommunication skills to the test wheninterviewing, as respondents felt thatmany PQs simply can’t communicate,either verbally or in writing.

Communicating skills was then thetop of employers list of soft skills tohave, with 88% considering them tobe ‘important’ or ‘extremely important’.These were followed closely bybusiness and personal ethics, peopleskills and teamwork, problem solvingand time management.• See page 39 for more on this reportand details of how to download acopy.

Tax champ: Welldone to Kumuthra

Jeveendran thewinner of the Best

Taxation studentat Northampton

University Awards.PQ magazine

sponsors the prize.She is picturedhere with EwanTracey, subject

head foraccounting and

finance

PwC suspension PWC’sregulatoryadvisory serviceshave beensuspended for

24 months from acceptingconsulting engagements atfinancial institutions regulated bythe New York State Department ofFinancial Services (NYDFS). Ontop of this it must make a $25mpayment to the State of New Yorkand implement a series of reformsafter improperly altering a reportsummited to the regulators

regarding sanctions and anti-money laundering compliance atthe Bank of Tokoyo Mitsubushi.

Deloitte resultsDeloitte has unveiled its results forthe year ended 31 May. Profitdistributed to partners for £2014was £554m. This means theaverage profit earned by eachpartner, after providing forpensions and annuities to retiredpartners was £750,000, down£22,000 on the previous year.Some 3,400 people were hired,including 1,500 entry-level

positions taking total staffnumbers to 14,000.

Baby-faced fraudstersFraud cases totalling £317m wererecorded in the first half of 2014,says the latest KPMG FraudBarometer. The figure representsa 39% drop on the same periodlast year, but the number offrauds has risen. The researchshowed a marked increase infrauds committed by those under-35 years old. In fact fraud among26-35 showed a 285% increasecompared to the first half in 2013.

The world of the CIMA PQ ischanging. From January 2015, youwill be preparing for exams whereyou need to get70% right (for theOT tests).

Anticipating this,Kaplan Publishinghas been adding alot more resourceand support to thenew official studytexts, practice kitsand revision cards. CIMA’s academicfaculty has also been heavily involvedin reviewing the new texts.

PQ magazine chatted recently toKaplan’s Ben Wilson about thechanges to the CIMA 2015 syllabusmaterial. He pointed out that therewill be lots of opportunity for studentsto practise what looks like the realthing in the new texts and exampractice kits. These question banksaren’t just simple multiple-choicequestions either – we are talkingdrag-and-drops, data entry andlinked questions here.

For the case studies, Kaplan isalso producing an enormous amountof new material. This will helpstudents get up to speed on thetechnical knowledge as well as withthe specifics of the case study itself.

Kaplan’s official material is beinglaunched on 15 September.

You need70% toget a pass

The Parliamentary Commission onBanking Standards has recommendedthat company law should be changedto remove shareholder primacy inrespect of banks, and require directorsto ensure the financial safety andsoundness of the company ahead ofthe interests of its shareholders.

The myth of shareholder ownershipof companies is likely to thwartreforms. The ownership of shares in alarge company is very different fromthe privileges and duties associatedwith the ownership of other forms ofproperty, such as a pen or a car.

A company is a legal entity distinctfrom any individual shareholder.Shareholders elect directors, but thatdoes not give them the right tomanage corporate assets. At AGMs,shareholders can ask questions aboutcorporate practices but cannot binddirectors to a particular strategy. Mostvotes at AGMs are advisory rather thanbinding. Shareholders cannot forcedirectors to pay a dividend. Theycannot demand to see a company’sbooks, or personally audit them.Anyone injuring someone by misusingtheir car can be held personally liable,but despite receiving incomeshareholders are not liable for theharmful practices of companies.

At best, the holding of sharesresults in a very weak notion ofownership. It does not giveshareholders the powers to manage,direct and control the company. Soany system of corporate governance oraccounting solely predicated on shareownership will fail.

PREMSIKKA

The myth ofshareholderownership ofcompanies

n Prem Sikka is professor of accountancy at theUniversity of Essex

pq oct 14 P10_pq sept 12 p08 09/09/2014 14:24 Page 8

Study your ACCA plus a

DEGREE in Ireland

Study your ACCA in Dublin and combine this

worldwide qualification with a BA or an MBA to

improve your career prospects.

Working part-time while you study

Post-study work visa for 1 year

Studying at a state-of-the-art campus

in the heart of Dublin

Dedicated international student support

Benefit from:

Progress your education with Ireland’s leading

industry-focused, third level college.

+44 (0) 20 3435 4638 [email protected] www.ibat.ie/pq

IN PARTNERSHIP WITH

Bachelor of Business (Hons) + ACCA

MBA + ACCA

Start September or February

011_PQ 1014_PQ 1209 000 09/09/2014 10:56 Page 7


PQ news

My holiday this year turned into anaccidental trip through accountinghistory. I visited Tuscany, in Italy, thebirthplace of Father Luca Bartolomeode Pacioli (‘the father ofbookkeeping’), who is accredited withpopulising the double-entry system ofbook-keeping. His seminal work,published in Venice in 1494, touchedon ethics and cost accounting, andexplained the accounting cycle usedby Venetian merchants at the time,describing journals and ledgers,debits, credits, assets, liabilities,capital, income and expenses.

In Florence, the records of aFlorentine banker from 1211 areperhaps the earliest known evidenceof the double entry-system actuallybeing used in practice.

As you walk around the streets ofFlorence you see the influence of themedieval guilds that organised everyaspect of the City’s economic life andthe impact of the Medici family. TheFlorentine bankers of the 11th and12th centuries even developedbranches in France and England atthat time.

In Paris, I was trying to find a placeto park when I stumbled across theLouvre’s underground parkingcomplex (pricey but it had space).Visiting the Louvre with my children Istumbled across the Susa ClayAccounting Tokens used in the Urukperiod (4,000-3,100 BC).

As I tried to explain to my 11 yearold how the clay stones had anythingto do with accounting I was informedby a curator that the Elamite’s usedthe clay tokens to record transactionsand enable purchasers to check thatthey had the right amounts ofproduce. It looked as far away froman Excel spreadsheet as you can get!

CARLLYGO

Europeantour broughtthe past tolife

n Professor Carl Lygo ischief executive of BPP

CIPFA is gearing itself up to unveila new professional qualification(PQ) syllabus, to be launched firstfor certificate entrants in 2015.

Chief executive Rob Whitemanwrote to all employers this summerwith the proposals, which he hopesbetter reflects the needs of UKpublic finance practitioners, inparticular for a wider range ofcommercial skills.

CIPFA explains that thequalification will remain both afinancial management and an auditqualification, with greater portabilitybetween the public and privatesectors.

The changes will also equip

students to meet the requirementsof the new local public act throughlocal audit RQB status and toreactivate CIPFA’s companies actRQB status so it can uniquelyequip professionals with enhancedskills to sign off both public and

private sector accounts.Another key component of the

proposals is to provide easier andmore streamlined routes into bothCIPFA training and membership forholders of other qualifications.

Whiteman explains plans arealready advanced for an enhancedCIPFA Learning Hub.

The institute is also reviewing itsworkplace experience scheme, thePractical Experience Portfolio(PEP). It wants to help exam-qualified students complete theirportfolio and proceed quicker tomembership. This will place agreater emphasis on the role of theemployer, stressed Whiteman.

Complete package

CIPFA SET TO REVEALNEW 2015 SYLLABUS

GROWING CALLS TOTAKE STUDENTS OFFIMMIGRATION TARGETFirst Intuition has launched its new

Complete Study Pack for AATdistance learning and classroomstudents. To celebrate the new packcomes with a 25% discount.

Nine months in the making, thestudy packs have two study banksaccompanying the course notes. Thesecond set are more challenging andmirror what is seen in the realassessment. There are also severalmock assessments for students toattempt as they make their finalpreparation for the real thing.

Gareth John, MD of First Intuition’sAAT distance learning division, toldPQ: “I am excited to see this materialgoing out to students. As well asthe range of practice examplesand mock assessments thatstudents will have, there arecomprehensive explanations andworkings for all tasks. This willmake it clear to them how to get tothe correct answer.”• PQ magazine has joined forceswith First Intuition for a greatgiveaway – check out page 36.

Pressure is growing on the UKgovernment to exempt

foreign students from itsplans to cut netimmigrant.

Responding to newpolling for Universities

UK suggesting that thepublic do not see international

students as migrants, the Instituteof Directors’ DG Simon Walker hassuggested that the crack down is“the worst possible way to reduceimmigration”. The UK is a worldleader in higher education, and thatit is one of our key exports, he said.

Deputy PM Nick Clegg (above)says he believes students shouldnot be counted in the immigrationfigures, while former cabinetminister Lord Heseltine saidstudents have to be excluded fromimmigration figures to preventdamage to university finances andthe maintain the 'life-long goodwill'the UK gets from foreign graduates.

A book in the handPQ studiers should take note

of recent research undertaken atFrench and Norwegian universities.It appears that those who readpaper copies of novels rather thanebooks remember more of theplots. Apparently, the physical actof holding a book in your handsand turning the pages allows youto retain the details of what you are

reading, say academics. If this istrue for accountancy studiers thenthe days of the study manualshould be far from numbered!

FRED 55The FRC has issued a new

exposure draft: ‘FRED 55 DraftAmendments to FRS 102 –Pension obligations’. The draftshould clarify issues relating to

accounting for definedpension plans inadvance of the newUK GAAP, whichbecomes mandatoryfrom 1 January 2015.

ICAEW calls for volunteersICAEW wants volunteers to

support the next generation ofchartered accountants. There are

lots of ways you can getinvolved, from mentoring ateam of young people at theNational Business, Accountingand Skills Education

competition heats, to signing up forthe ICAEW careers advisor networkand visiting your old school,college or university to share yourexperiences as an ICAEW student.Visit icaew.com/careers for more.

In brief

Rob Whiteman

Most ICAEW advanced students stuck with the tried-and-tested at the latestexam session – the Business Reporting and Business Change papers.

The ICAEW exams are ‘in transition’, so some students chose to sit thenew Corporate Reporting and Strategic Business management papers.Looking at the pass rates they may have wished they didn’t! The pass ratefor Corporate Reporting was just 37.8%. Sitters of the Strategic BusinessManagement paper did better, with a 67.3% pass rate.

Meanwhile, back to the old syllabus and we have an 85% pass rate forBusiness Change and 83.8% for Business Reporting. Those sitting the casestudy test managed a 74.4% success rate.

ACA advanced stage results now in

PQ oct 14 p-12_pq sept 12 p08 09/09/2014 14:25 Page 8

December 2014 Exam

Revision Classes will commence on

Saturday 8th November 2014

Lecture Timings: 9:30am to 4:30pm

Quality, Affordability, Employability

LCA Business School London, 19 Charterhouse Street, London EC1N 6RA

Tel: 020 7400 6772 enrol with us on-line www.lca.anglia.ac.uk

OU

R R

EV

ISIO

N C

OU

RS

ES Exam focused course

ACCA - Revision Kit

Practice Questions

Advice on Exam Techniques

Past Exam Evaluation

Emphasis on Key Topics

P1 Rev

P1 Rev

F7-F9 P1-P3 P5-P7F4-F6

F4 Rev

F4 Rev

F6 Rev

F6 Rev

F5 Rev

F5 Rev

F7 Rev

F7 Rev

F9 Rev

F9 Rev

F8 Rev

F8 Rev

P3 Rev

P3 Rev

P2 Rev

P2 Rev

P7 Rev

P7 Rev

P5 Rev

P5 Rev

P6 Rev

P6 Rev

DateDay

Saturday

Saturday

Saturday

Sunday

Sunday

Sunday

08 November 2014

15 November 2014

22 November 2014

09 November 2014

16 November 2014

23 November 2014

Saturday

Sunday

29 November 2014

30 November 2014

013_PQ 1014_PQ 1209 000 08/09/2014 14:01 Page 7


PQ ICAEW spotlight

David Stevens offers a guidefor the unwitting on thisdarkest of the dark arts

Bribes can be tricky to spot,whether someone is trying tosubtly but corruptly influence

your behaviour, or a colleague hasalready succumbed to such influence,and is trying to obscure the receipt orpayment of a bribe from your eyes. Therecan be a fine line between a bribe and agenuine expense, making it easy for theformer to be disguised as the latter.

You may be faced with bribery andcorruption when you are at your mostvulnerable, whether due to commercialpressures, isolation or straightforwardflattery.

The relevant legislation is The BriberyAct 2010. It is broad in scope andapplies to UK citizens and UK companieswherever they do business. If you are anICAEW student you will be expected todemonstrate an understanding of TheBribery Act 2010 throughout your examsat all levels.

Penalties for bribery includeimprisonment and substantial fines.Consider the scenarios below:QDuring the audit of a luxury goods

distributor, you are asked if youwould like to take a pen home with youas a gift. It seems there is some excessstock in the warehouse. How do yourespond?AIt is an offence to bribe another

person or to be bribed yourself. Thiscore offence is widely defined and coversall bribes, given or received in a personalcapacity as well as those made in acorporate setting for a businessadvantage.

The core offences relate to the givingor receipt of bribes to ‘improperlyperform’ a function which is expected tobe carried out: • in good faith.• impartially.• where the person involved is in aposition of trust.

Identify the purpose of the offer. It maybe innocent. It may be that you are oneof many recent visitors who have walkedaway with a pen and have no furtherexpectations placed upon them. Nodoubt your employer will have a policyregarding the acceptance of gifts; thisshould be adhered to.

While not the deciding factor, the valueof the pen may be an indicator of thepurpose of the offer. It is highly unlikely

that a disposable biro will raise anyeyebrows, but it is not unusual to paythousands of pounds for a Mont Blanc.Let’s not put a price tag on a clean auditreport. QUpon landing at Erewhon Airport,

the customs official informs youthat a “standard processing fee” of $20is required to allow you entry into thecountry. Should you hand over themoney?A You may be on the verge of bribing

a foreign official. This specificoffence covers any financial advantagepaid, offered or promised where theintention is to: • influence foreign officials, inperformance of their ‘functions’.• obtain or retain business or a businessadvantage.

This situation could make you verynervous, particularly when travellingalone. But it is important to determinewhether the fee is genuine or not; itshould be accompanied with officialnotices and a receipt for payment. If thisis not the case, stand your ground. Youmay want to call your employer for adviceand assistance. Travellers can also calltheir local embassy.

QOne of your agents has just sentyou her invoice for approval.

Included in her expenses is a large roundsum figure for ‘client entertainment’. Howshould you proceed?A ‘Commercial organisations’ commit

an offence if they, or any personassociated with them, bribes anotherperson intending to obtain or retainbusiness or a business advantage.

This offence can be committed not justby UK companies, but by any non-UKcommercial organisation which carries ona business, or part of a business, in anypart of the UK.

The purpose of the expenditure is key,not necessarily the amount or what isbeing purchased.

The extent to which the expenditure isincidental is also a factor. An itemisedinvoice providing a breakdown of theexpense will be useful, along with furtherenquiries of the agent.

If the response is unsatisfactory, andyou suspect the expense goes beyondgenuine entertainment, the matter shouldbe escalated within your organisation.

Further information available aticaew.com/bribery • David Stevens is Integrity and LawManager at ICAEW

PQ

BRIBERY: A GUIDE

Smile for thecamera: Formula 1chief BernieEcclestone paid a£60m settlementto end a briberycourt case inGermany,exploiting aloophole inGerman law that manycommentatorsviewed as peverse

pq oct 14 p-14_Layout 1 08/09/2014 16:38 Page 23

Reed 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

What is the secret of our success?

Q Expert tutors to guide you every step of the way

Q Residential options to allow you time to concentrate

solely on studies and use time outside classroom

to share experiences with fellow students

Q Established accountancy tuition provider

for over 40 years

Q Very competitive tuition and residential rates

Q Many students attend on a non-residential basis,

all benefiting from free parking and free lunch

Q Check us out on your Sat Nav - we are nearer than you think

GL56 0RZ (25 miles NW Oxford, 45 miles S Birmingham)

Q No other tuition provider can compare with our unique centre

or be bold enough to publish ALL results.

Well done to all our students

who sat exams this Summer

Book online or call us

01608 [email protected]

www.reedbusinessschool.co.uk

www.pqcoursefinder.com

CIMA Revision commencing from 3rd October

ICAEW Advanced Stage dedicated retake courses commencing from 16th October

ACCA Revision commencing from 21st October

ACCA June 2014 CIMA May 2014(attending full link courses) (attending tuition, revision and QBD courses)

BUSINESS CHANGE

93

BUSINESS REPORTING

90

CASE STUDY

95

CONTACT US NOW FOR...

ICAEW Advanced July 2014(1st time students)

Full results are available

to view on our website

F7 E3

F8

P2

015_PQ 1014_PQ 1209 000 08/09/2014 14:03 Page 7

• Pass rate: 33% (December 2013)• Technical difficulty: 9/10• Weighting of calculations: 5-10%• Weighting of discursive

elements: 90%–95%• Exam technique: 8/10

The syllabus .P7, Advanced Audit and Assurance, can bebroken down into these key areas:

Regulatory environment: This covers theregulatory framework for audit and assuranceservices, money laundering and laws andregulations. These are examined from time totime but are more peripheral syllabus areas.

Professional and ethical considerations: Thisarea is usually tested in section B of the paper,but has also appeared in section A and may beexamined more than once in the same paper.Students are advised to spend sufficient timeunderstanding this area. In particular, rememberthat this is advanced audit and assurance, soanswers to this type of question need moreconsideration that those required for paper F8.

Practice management: This covers qualitycontrol, advertising, fees, tendering andacceptance of professional appointments. Qualitycontrol has been examined relatively frequentlyin recent years. Tendering has also beenexamined on several occasions. Students shouldmake sure they are comfortable with these areas.Those not working in practice may struggle alittle with these questions, therefore practisingexam questions on these topics is key.

Audit of historical financial information: Thissyllabus area is likely to represent a substantialproportion of the P7 exam. In particular, riskassessment and audit evidence will featureheavily. Being able to distinguish between auditrisk, risk of material misstatement and businessrisk is essential for scoring a good mark. Theability to write sufficiently detailed auditprocedures is also very important.

Other assignments: These include review offinancial information, due diligence, prospectivefinancial information, forensic audits, internalaudit and outsourcing. UK variant students maysee questions covering insolvency, and for INTvariant students the audit of performanceinformation in the public sector is a new topicfrom December 2014 onwards. There is often aquestion included in the exam that covers thisarea.

Reporting: Reporting typically appears as aquestion in section B of the paper, but it hasbeen known to appear in section A and couldappear more than once in the same exam. Thisis a core syllabus area.

There are usually two types of questions onaudit reports: • Advise on the implications for the audit reportof the issues described in the scenario or• Critically appraise the draft audit report

included in the scenario. Students should makesure they understand the elements of the auditreport and the different modifications that canbe made.

Sitting the P7 exam .The examiner has stated that the P7 exam willbe difficult to pass if students don’t work in anaudit or assurance environment. So the rightpreparation is essential.• Risk assessment – make sure you know thedifference between the three types of risk thatcan be examined. Ensure you can explain theimpact of the risks on the audit.• Revise your P2 accounting standards. Anauditor is providing an opinion on whether theclient has prepared their financial statements inaccordance with the financial reportingframework. Several types of questions requirethis knowledge: risk assessment, completion andaudit reporting. If you don’t know the relevantaccounting treatment you are significantlyaffecting your chances of passing this paper.• You are sitting an advanced paper. You needto include sufficient detail for an advancedanswer. Simply stating the same things youwould in an F8 exam will not be sufficient.• Ensure you spend time reading model answersfrom past papers to see the full extent of whatcould be included in an answer. Yes, the modelanswers are far longer than you can produce inan exam but don’t be scared of them. Use themto help you understand the issues and learnfrom them.• Don’t assume the exam is easy because it iswritten. Don’t think you can waffle on and theanswers are given to you in the scenario. Thisisn’t the case at all. You have to describe howthose issues affect the audit/assurance. You willhave to demonstrate understanding of theaudit/assurance process.

In summary, don’t underestimate this paper.Preparation is key. Practise past exam papersand read the examiners’ reports to understandthe mistakes that students typically make so youcan avoid making those same mistakes. Use thetechnical articles available to help understandthe core topic areas. Past papers, examinerreports and technical articles are all available onthe ACCA website. • Paula McGrath is the P7 Content Specialistat Kaplan Financial

PQ

16

PQ ACCA P7 paper

PQ Magazine October 2014

It might be a cliché, but when itcomes to P7 practice really doesmake perfect, says Paula McGrath

Now do your reading

pq oct 14 p16_Layout 1 08/09/2014 16:41 Page 14

Our exam booking

service ensuring

a convenient

location for you

Introducing Tutor Group Study at Home Learning College

Our most popular way to study AAT:;OL�WLYMLJ[�IHSHUJL�VM�[OL�ÅL_PIPSP[`�

VM�Z[\K`PUN�MYVT�OVTL�^P[O�[OL�

WYVNYLZZP]L�UH[\YL�VM�*SHZZ�9VVT�

:[\K �̀

Benefit from:

*VU[PU\L�VU�`V\Y�((;�

WH[O^H`�^P[O�/VTL�

3LHYUPUN�*VSSLNL��>L�HYL�

[OL�<2»Z�SHYNLZ[�VUSPUL�

[YHPUPUN�WYV]PKLY�MVY�((;�

X\HSPÄJH[PVUZ�HUK�L_WLY[Z�PU�

[OL�ÄLSK�VM�ÅL_PISL�Z[\K`!

9 6]LY��WLVWSL�H�`LHY�

Z[\K`PUN�[V^HYKZ�Z\JJLZZ

9 *VUZPZ[LU[S`�V]LY� ��WHZZ�

rate

9 *VTWSL[L�Z\WWVY[�UL[^VYR

9 9LN\SHY�SP]L�JSHZZLZ

9 Full access to our career

THUHNLTLU[�ZLY]PJL

9 8\HSPM`�PU� �TVU[OZ�

0121 722 5331www.homelearningcollege.com/pq

*HSS�[VKH`�[V�ZWLHR�

[V�VUL�VM�V\Y�MYPLUKS`�

*V\YZL�(K]PZVYZ�VU

Studying a set

framework

A 1:1 relationship with

a dedicated tutor to

ensure you pass

Being part of our live

classes with your tutor

and peers

Covering each topic

in-depth as you

progress through the

course together

Having the best chance

of receiving your AAT

X\HSPÄJH[PVU�HUK�

getting the job you

deserve

017_PQ 1014_PQ 1209 000 08/09/2014 14:00 Page 7

ENHANCE YOUR ACCOUNTING CAREER WITH

GUARANTEED WORK EXPERIENCE

FREE Apprenticeships available for 16-24 year olds

Discounted Price

FREE Work Experience

AAT Level 2 £910

6 Months

AAT Level 3 £1260

6 Months

AAT Level 4 £2100

6 Months

Daytime/Evening AAT Courses:

Short practical trainings:Ÿ Sage PayrollŸ Sage Line 50Ÿ Excel Spreadsheet and others

Call: 020 7252 9331Email: [email protected]: www.thetrainingplace.org

Mid-September Enrolment

018_PQ 1014_PQ 1209 000 09/09/2014 10:02 Page 7


Our mission .The FRC is the UK’s independent regulatorresponsible for promoting high-quality corporategovernance and reporting to fosterinvestment. In our work we:• Create a reportingframework that encouragestrustworthy behaviour bydirectors and professionals, andengagement with them by investors.• Encourage companies to produce trustworthyinformation that contributes to informeddecisions. • Build justified confidence internationally in theUK regulatory framework for corporategovernance and reporting, including across theEU and other major capital markets.

What we do .• We set the UK corporate governance andstewardship codes as well as UK standards foraccounting, auditing and actuarial work. Weissue and maintain UK GAAP-simplifiedaccounting standards for SMEs.• We represent UK interests in internationalstandard setting. We work closely with the EUand a range of international bodies to encourage

high-quality international standards.• We monitor and take action to promote thequality of corporate reporting and auditing. We

inspect 100 audits and review around 399sets of reports and accounts annually.

• We operate independent disciplinaryarrangements for accountants andactuaries. We undertake investigations

into potential cases of professionalmisconduct affecting the public interest.

• We oversee the regulatory activities of theaccountancy and actuarial professional bodies.

Regulatory approach .The FRC seeks to act in the public interest.Investors, insurance policyholders, pensionscheme members, savers, employees, consumers,creditors, taxpayers, clients or professionalaccountancy and actuarial advice and othergroups are affected by the issues we addressthrough our work. High standards of governanceand reporting are essential to them all.

Parliament has conferred the privilege oflimited liability on the directors of listedcompanies. In return, shareholders and thepublic have the right to expect high standards ofaccounting and reporting, supported by effective

19

international standards PQ

PQ the Financial Reporting Council

FRC at a glance What is the Financial Reporting Council all about? We let them explain…

independent audit. In the listed sector inparticular, investors provide equity without rightsover a company’s assets but against anexpectation of high standards of governance andreporting to a level that enables them to takegood decisions as owners. Confidence in thissystem helps bring forward investments andunderpins growth.

Our structure .The FRC board has overall responsibility for thestrategic direction for the organisation, approvingthe plan and budget, and changes to codes andstandards. It is supported by:• The executive committee, responsible forrecommending the strategic direction of the FRCand the FRC board, providing the day-to-dayoversight of the work of the FRC, implementingthe FRC’s annual business plan and advising theboard on the FRC’s budget. • The codes & standards committee, primarilyresponsible for advising the FRC board onmaintaining an effective framework of UK codesand standards for corporate governancestewardship, accounting, auditing andassurance, and actuarial technical standards. • The conduct committee responsible foroverseeing the review of corporate reports andaccounts, audit quality reviews, monitoring theprofessional bodies, professional discipline, andoversight of the regulatory responsibilities of theaccountancy/actuarial professional bodies. Contact details: Financial Reporting Council, 8thfloor, 125 London Wall, London EC2Y 5AS.Twitter: @FRCnews. Web: www.FRC.org

PQ

IFRS: REFORMING NUMBER NINE

The International Accounting StandardsBoard (IASB) has completed the finalelement of its comprehensive response

to the financial crisis by issuing IFRS 9 FinancialInstruments. The package of improvementsintroduced by IFRS 9 includes a logical modelfor classification and measurement, a single,forward-looking ‘expected loss’ impairmentmodel and a substantially-reformed approach tohedge accounting. The new Standard will comeinto effect on 1 January 2018 with earlyapplication permitted.

Classification & Measurement .Classification determines how financial assetsand financial liabilities are accounted for infinancial statements and, in particular, how theyare measured on an ongoing basis. IFRS 9introduces a logical approach for theclassification of financial assets, which is drivenby cash flow characteristics and the businessmodel in which an asset is held. This single,principle-based approach replaces existing rule-based requirements that are generallyconsidered to be overly complex and difficult toapply. The new model also results in a singleimpairment model being applied to all financialinstruments, thereby removing a source of

complexity associated with previous accountingrequirements.

Impairment .During the financial crisis, the delayedrecognition of credit losses on loans (and otherfinancial instruments) was identified as aweakness in existing accounting standards. Aspart of IFRS 9, the IASB has introduced a new,expected-loss impairment model that will requiremore timely recognition of expected creditlosses. Specifically, the new Standard requiresentities to account for expected credit lossesfrom when financial instruments are firstrecognised and to recognise full lifetimeexpected losses on a more timely basis. The

IASB has already announced its intention tocreate a transition resource group to supportstakeholders in the transition to the newimpairment requirements.

Hedge accounting .IFRS 9 introduces a substantially-reformedmodel for hedge accounting, with enhanceddisclosures about risk management activity. Thenew model represents a significant overhaul ofhedge accounting that aligns the accountingtreatment with risk management activities,enabling entities to better reflect these activitiesin their financial statements. In addition, as aresult of these changes, users of the financialstatements will be provided with betterinformation about risk management and theeffect of hedge accounting on the financialstatements.

Own credit? .IFRS 9 also removes the volatility in profit or lossthat was caused by changes in the credit risk ofliabilities elected to be measured at fair value.This change in accounting means that gainscaused by the deterioration of an entity’s owncredit risk on such liabilities are no longerrecognised in profit or loss. Early application ofthis improvement to financial reporting, prior toany other changes in the accounting for financialinstruments, is permitted by IFRS 9. PQ

The IASB completes the reform of financial instruments accountingwith the release of a new-look IFRS 9, which replaces IAS 39


020_PQ 1014_PQ 1209 000 08/09/2014 16:13 Page 7

PQ Magazine October 2014 21

ACCA optional exams PQ

HOW DO YOU IMPROVEOPTIONAL PASS RATES?BPP .

Choosing carefully: The first thing to consider ishow you choose. This is your opportunity tospecialise, with each of the papers focusing on aparticular area that feeds up from a related skillspaper, specifically F5 to P5; F6 to P6; F8 to P7;and F9 to P4. You should choose to sit thepapers you did well in at the skills module – agood understanding of the assumed knowledge(the feeder knowledge leading up to the paper)will put you in a better position. If you reallyhated audit, and struggled to study and pass F8,then P7 is probably not the best choice for you.

If you are working in a particular area or haveexperience of it, then you will have been“practising” some of it in a real worldenvironment, which will help you when it comesto learning about the topics.Getting a head start on study: As mentioned,the papers have ‘assumed knowledge’ from theskills papers, so it is worth spending some timebefore your course/studies start to review thesetopics. Having a solid foundation on which tobuild will result in much stronger higher-levelknowledge. You could buy the textbook or othermaterials to recap, or some learning providerswill give you free access to the requiredknowledge when you buy your options course.

It will also be important to read around thepapers in more detail, to see how they work inreal life. Your lecturers should give yourecommended articles; the ACCA website willinclude useful resources; and you can look outfor articles in the business press or accountingpublications. Being able to relate the topics toreal life will help to cement ideas in your mind.

Overall, these final level papers require morethan just doing the question practice, as it isyour opportunity to prove you are ready to jointhe elite group of professionals that are theACCA members.

Not sure which options paper to choose orwhat they cover? You can get access to day oneof each course for free, including a paperoverview video, lectures and course notes for thefirst day with a Free BPP Options starter pack,sign up here: http://accountancy.bppeloqua.com/starter-pack#!/acca• Thanks to Davinia McGann and her team

LSBF .The F4-F9 papers usually average 45% passrates, and P1-P3 average 50%. But the optionsaverage a lot less – only 35%. Given thatstudents reaching the final papers must surelybe relatively strong on average, what is going on?Here’s six of the ‘issues’:1. Very few marks are given for knowledge or

calculations, most marks are for analysis andapplication – and most students rely too muchon memorising facts rather than practice ofscenario-based questions.2. Technical knowledge from lower level papershas been lost (or was never there in the firstplace).3. There are fewer questions on the paper butthey are for a larger numbers of marks and withlonger scenarios. This means those with timemanagement problems are more likely to getfound out.4. A lot of marks are available for the quality ofexplanations, but too few students are willing towrite a sentence that includes the word‘because’.5. These papers require students to understandwhat the examiner is looking for – it cannot belearned out of a book. This means distancelearning students struggle more than on otherpapers.6. Students must understand what the examineris looking for, yet a worryingly large proportion ofPQs don’t read the Examiner Report after eachsitting, so are at risk of making all the usualmistakes when attempting the paper.

It must also be noted that students on thefinal papers will be older, with more

responsibilities at work (and at home), and sohave less time available to study. Some lowerlevel papers can be covered by last-minutecramming (not advisable, of course), but theoptions papers need an approach built onstudying over a period of time. Time that a lot ofstudents at this level do not seem to have.• Thanks go to Paul Merison, Director of ACCACourses at the London School of Business &Finance

Becker .At ‘P’ level you are expected to demonstrate theability to apply your knowledge to life-likeproblems, which the examiners test using casestudies. You need to develop these higher skillsof application and analysis by practising pastexam questions. Also read widely to improveyour knowledge of the real business world –quality newspapers and technical articles arehighly recommended.

If possible, only select the paper if your markin the underlying ‘F’ level paper was good (thatis 60%+) and you love the subject.

Understand how the examiner thinks. Thismeans working through all the recent past examquestions under exam conditions and readingthe examining teams’ articles and reports.

Clear and structured presentation is vital foranswers at the professional level. If you producean unstructured jungle of calculations andrambling irrelevant discussion then little creditwill be given and you will probably lose the fourprofessional marks, too.

In numerical questions, make it easy for themarker of your script – state your approach torequirements and insert a short commentarybetween your steps.

It is crucial to understand the meaning of theverb in the requirement (assess, discuss, etc)and to ensure your answer follows therequirements faithfully.

After attempting a past exam question,analyse your answer; compare it with thesuggested answer, consider if your answer iswell planned, and whether or not it adds value.Does it make reference to the scenario? Andread the examiner’s report relating to thatquestion.

Do not leave your studies to the last minute –being properly prepared means at least sixweeks (evenings and weekends) of solid work,perhaps eight. Finally, attempt two mock examsunder exam conditions; and get them marked bya tutor who can give you feedback. Then youcan learn from your mistakes.• Thanks to Becker’s optional paper specialisttutors for this advice PQ

Something has gone wrong with the optional papers and the ACCA is looking to provide additional learningsupport. In the meantime, here’s what the experts suggest you do to help yourself with the dreaded ‘P’ papers


Find out about our new 2015 coursesto guide you to CIMA successWherever you are on your CIMA journey, Kaplan has

designed the perfect course to guide you to exam success.

Our comprehensive range of courses, offered in 15 centres

nationwide, plus Live Online and Distance Learning, have

been designed based on feedback from students, validated

by employers and will be delivered by industry experts.

Our CIMA 2015 courses have been created using evidence-

based learning science and combine the latest teaching

technologies with traditional learning techniques to

improve your chance of exam success.

So what’s new?

There are key changes in the 2015 syllabus that will affect the way you approach your studies. You’ll need to know all the topics within the syllabus, the pass mark is 70% and you need to retain this knowledge for the case study exam.

For these reasons, our new Objective Test (OT) courses cover 100% of the syllabus, so you can be sure it covers everything you need to know. We have split our OT courses into 2 elements with separate Tuition and Revision Plus courses, so you gain a deep understanding of the syllabus before learning how to apply this to the new style exams.

+Tuition

Find out about our Objective Test courses

Objective TestComplete Package

Confidently pass your

objective tests with our

recommended package

70% pass mark

Knowledge recall

Knowledge and exam technique

Practice makes perfect

You told us you were concerned about having to learn the entire syllabus, and being able to recall the content – our Tuition courses have been structured to give you a solid foundation to help you reach the 70% pass mark. A mix of tutor-led lectures, online resources and practice questions will ensure you have covered all of the technical content required to give you the best chance of exam success.

During the Tuition course you will develop and embed knowledge, to make it easier to retain and recall in the exam, no matter what question comes up. This knowledge will also help you to perform better in the workplace and set you up for the case study exam. From our research and years of experience, we know this way of learning is the most effective.

You told us you were concerned about having to revise all of the topics in each paper and be able to remember them all – well our Revision Plus course focuses on specific areas to recap your knowledge prior to the exams to help aid recall. Plus we’ll help you develop your exam technique and make sure you are familiar with CIMA’s testing software through practice exam questions that look and feel just like the real thing.

You will receive individual and personalised coaching over two full days, online or in class, ending with a mock exam. Revision Plus will help you to learn how to interpret questions, eliminate distractors and perform quick workings to ensure the answer is completed within the allowed time. The course is structured around online questions sat at a computer that have the same look and feel as the real exams. Tutors will access live reports and performance indicators throughout the day so they can personalise their debriefs and feedback to your specific needs.

Revision Plus

022_PQ 1014_PQ 1209 000 09/09/2014 10:52 Page 7

Advertorial

All of these elements combined means you can trust Kaplan to deliver

the perfect formula for success – the fastest route to a first time pass.

www.kaplanfinancial.co.uk/2015ready

Complete Flexibility

With our flexible timetables you can study 1, 2 or

3 subjects at a time. Plus, courses start every 3

months, so you can begin studying anytime and

complete a level at a pace that suits you.

Our courses are available via Classroom and

Live Online, so you can choose a study method

that suits you. Or, if you prefer to study at

your own pace, we have a range of Distance

Learning courses too.

Official CIMA Study Materials

Kaplan are the only official publisher of CIMA

materials, which means you can be absolutely

sure our study materials will cover everything

you need to know, in a way that is relevant to the

exams. We offer a full range of materials for the OT

subjects and the case study exams.

Complete a level in 6, 9 or

12 months

Guiding you on yourjourney to CIMA success

NowAvailable!

Lifetime Pass Guarantee#

All Kaplan complete packages come with the

peace of mind of a Lifetime Pass Guarantee

Find out about our Case Study courses

Case StudyComplete Package

Detailed analysis,

technical recap and exam

practice will guide you to

case study exam success

Lifetime PassGuarantee

#

with all completepackages

# To qualify for the Lifetime Pass Guarantee, certain criteria must be met. T&Cs apply. See website for details.

Exam FocussedCase study expertise

What the exams and courses look like

You told us you expect a strong exam focus for the case study

course to practice integrating topics, as your biggest fear was

completing all of the questions in the allocated time. Our case

study course will introduce you to the software and familiarise

you with the layout and style, plus you’ll complete 2 mock

exams throughout the course that have the same look and feel

as the real exam. Our experts will guide you through the case

study, ensuring you are well prepared and able to complete the

exam in the allocated time.

We know that the new case study exams are one of your biggest

concerns for the new syllabus, as you need to be able to

combine the knowledge from the 3 OT subjects and apply this

to the exam. We have been designing and teaching case study

courses for years, and have used this expertise to develop a

specific course for each level for added peace of mind.

The new exams simulate a day at work, with your manager

sending multiple requests for you to deal with. Our expert

tutors will guide you through a recap of the underpinning

technical knowledge you have amassed in your OTs

and help you apply this to the live case using practice

scenarios that reflect what could be requested in the exam.

With personalised feedback, we’ll ensure you are well

prepared and gain the experience you need to successfully

complete your CIMA case study.

023_PQ 1014_PQ 1209 000 09/09/2014 10:53 Page 7

Prior to the introduction of IFRS 13Fair Value Measurement, manydifferent standards each gave

their own guidance on how to measure fairvalue (FV). This led to inconsistenciesbetween entities. To improve comparability,FV measurement was added to the IASB’sagenda in 2005 and IFRS 13 was issued in2011 (effective from 1 January 2013).

FV is defined as: “the price that would bereceived to sell an asset, or paid to transfer aliability, in an orderly transaction betweenmarket participants at the measurement date”.• The price, often referred to as the ‘exit price’.• An orderly transaction, ie not a forcedtransaction.• Market participants – buyers and sellers inthe principal (or advantageous) market that are:independent; knowledgeable; able and willing.

FV measurement assumes transactionhappen in the ‘principal market’ – for example,the market with the greatest volume/level ofactivity for that asset/liability.

In the absence of the principal market, usethe ‘most advantageous’ market – for example,the market that produces the highest net receipt

per unit after considering all costs to sell.Note: FV is not adjusted for transaction costs.

Example 1 .An asset is sold in two countries at two differentprices:

Country A Country BPrice per unit £100 £105Transaction costs £5 £3Delivery costs £2 £2

If Country A is the principal market, FV per unit,after deducting delivery but not transactioncosts, would be £98.

If neither country is the principal market, lookat the most advantageous market. Country Bproduces a higher net receipt, £100, thanCountry A, £93.

Country B would therefore be used tocalculate FV of £103 (ignoring transactioncosts).


PQ international standards

Lynne Woolley explains all youneed to know about IFRS 13

SPECIAL PQ

READER OFFERMonday 13 October 2014

Queen Elizabeth II Conference Centre

Westminster

London

SW1P 3EE

At only £140.00 (normal price £200.00) this day is not to

be missed. To reserve one of these special PQ tickets,

simply call ICB on 020 7398 4441

MAKE SURE YOUR

CAREER IS ADDING UP

Be part of the UK’s biggest ever one day summit for

bookkeepers. More than four hundred already booked

to attend the fifth annual Bookkeepers Summit and now

a limited number of discounted tickets are being offered

to readers of PQ Magazine on a strictly first come, first

served basis.

The packed day includes:

U Address from Pensions Minister, Steve Webb

U Practical advice and presentations from HMRC, the

Pensions Regulator and the National Crime Agency

U Presentations from Sage, Intuit, and Xero

U Practical advice on running a bookkeeping practice

U Exhibitors showcasing the very latest products for

the profession

U Great networking opportunities with fellow

professionals

U Free software and other exciting give-aways

U Lunch and refreshments

U A mystery prize draw

A sense of fair play Example 2 .When calculating FV, alternative uses of theasset/liability should be considered:– A factory site is acquired for £5m. – Nearby sites, recently developed for residential

purposes, have a value of £6m. – Factory demolition costs – £0.2m

The FV would be £5.8m based onthe highest and best use of the land: • Current use, £5m; vs• Alternative use, after demolitioncosts, £5.8m.

When calculating FV, an entityshould use valuation techniques thatare appropriate in the circumstances

and for which sufficient data are available –maximising use of observable inputs andminimising use of unobservable inputs.

‘Observable inputs’ are developed usingmarket data.Level 1 inputs: quoted prices in active marketsfor identical assets/liabilities, eg equity shares ina listed company.Level 2 inputs: are observable, directly orindirectly, eg quoted prices for similarassets/liabilities.Level 3 inputs: are unobservable inputs, forexample discounted future cash flows using theentities own financial information.

The standard gives highest priority to Level 1inputs.

While Historic Cost is still deemed to be morereliable and less subjective, FV produces a morerelevant value to users for decision making. • Lynne Woolley, Reed Business School

PQ

pq oct 14 p 24_Layout 1 11/09/2014 09:30 Page 23

Accountancy isn’t as easy as 1-2-3

but we’re 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 fi.co.uk 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

fi.co.uk

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 1014_PQ 1209 000 08/09/2014 16:14 Page 7


PQ technical update

It’s my birthday in early October. Isay that not because I expect lots ofpresents from eager readers

(although PQ magazine will be quitehappy to pass them on) but because itmeans that my star sign is Libra. I amnot a big believer in astrology andhoroscopes (although now I think aboutit, there was a full moon when I met mywife) but I do sometimes wonder if beinga Libran, the sign of balance which isrepresented by a set of scales, played apart in leading me into a career as anaccountant.

Double entry, the fundamentallanguage of accountancy, has to involvebalance; the total of the debits beingposted must equal the total of the creditsbeing posted. And if every single doubleentry posted in a period balances, thenno matter how many transactions areprocessed the total of the debits in thegeneral ledger should always equal thetotal of the credits. This is exactly what isshown in the Trial Balance. It is literally a‘trial’ to see if the debits and the credits‘balance’.

Making entries in a trial balanceEntering account balances into a trialbalance is essentially a test of basicdouble entry principles. I use thecommon DEAD CLIC mnemonic toremind myself which side of the trialbalance different types of ledger accountwill go on.

DEAD stands for:Debits can beExpenses, such as rent or salariesAssets, such as cash or trade receivablesDrawings, when a sole trader takesmoney out of the business

CLIC stands for:Credits can beLiabilities, such as a bank loan or tradepayablesIncome, such as sales or interestreceivedCapital, when a sole trader puts moneyinto the business

Let’s say that we have the followingledger account balances in the generalledger at the end of a period: cash£9,000, capital £5,000, purchases£3,500, sales £4,500 and bank loan£3,000. The trial balance will look likethis:

And you can see that this trial balancedoes indeed balance.

You should be able to follow thesesame basic rules no matter how manyledger account balances you are dealingwith.

A few ledger account balances to be careful with!Let’s consider some account balancesthat students often have problems with:Returns: Returns can be thought of asthe opposite of the transaction that theyrelate to.

Sales are a form of income so go onthe credit side of the trial balance. ‘Salesreturns’ will reduce the income generatedfrom sales (as some of the customers

Birthday boy Gareth John explains all you need to know about the Trial Balance concept – as befitting a Libran

sent the goods back) so go on the debitside.

Purchases are an expense whichwould go on the debit side of the trialbalance. ‘Purchases returns’ will reducethe expense so go on the credit side.Discounts: ‘Discounts allowed’ tocustomers reduce the actual incomereceived and will reduce the profit of thebusiness. They are therefore an expenseof the business so would go on the debitside of the trial balance.

‘Discounts received’ from suppliers willreduce the expense suffered forpurchases and will increase the profit ofthe business. This reduction to anexpense would therefore go on the creditside of the trial balance.VAT: The balance on the VAT controlaccount can potentially be on the debit orthe credit side of the trial balancedepending upon whether output VAT isgreater than input VAT or vice versa.

‘VAT owed to HMRC’ (a net paymentposition) is a liability which would be onthe credit side of the trial balance.

‘VAT owed from HMRC’ (a net reclaimposition) is an asset (similar to tradereceivables) so should be on the debitside.Sundry income: Although sales made tocustomers are normally the main form ofincome that a business will generatethere may also be income from othersources. Whether it is ‘rent received’,‘interest received’, ‘commission received’or ‘birthday money received’ (hint, hint!)it is income for the business andtherefore goes in the credit column of thetrial balance.

Here’s one for you to attempt. Once youhave had a go watch me working throughmy solutions atwww.firstintuition.co.uk/blog/aat-blog.htmlDraw up a trial balance for the followingledger account balances; sales £12,000,purchases £5,000, rent £2,000, salaries£1,000, cash £1,500, machinery £3,500,sales returns £500, purchases returns£400, discounts received £200,discounts allowed £300, capital £1,000,rent received £150, VAT owed to HMRC£1,500, sales ledger control account£3,000, purchases ledger controlaccount £1,200, bank loan £350. • Gareth John is a tutor/director withFirst Intuition andhelps to manage theirAAT distance learningprogramme. He was PQMagazine AccountancyLecturer of the Year in2011

PQ

LET’S GET TECHNICAL

LEDGER ACCOUNT DEBIT CREDIT£ £

Cash (an asset so part of DEAD) 9,000Capital (capital so part of CLIC) 5,000Purchases (an expense so part of DEAD) 3,500Sales (income so part of CLIC) 4,500Bank loan (a liability so part of CLIC) 3,000

12,500 12,500

pq oct 14 p-26_Layout 1 09/09/2014 14:36 Page 23

027_PQ 1014_PQ 1209 000 08/09/2014 14:02 Page 7


PQ CIMA 2010 syllabus

FINANCIAL MANAGEMENT.When it comes to F2, the verbs tendto be evenly split when it comes tomark allocation. So ‘explain’,‘calculate’, ‘prepare’, ‘analyse’,‘compare’ and ‘contrast’ and‘discuss’ will all be seen in thispaper in equal measure.

The examiner revealed thatsection A generally scores highermarks overall than section B, withQ6 scoring higher than Q7.

Sitters need a betterunderstanding of the principles ofconsolidation. They also don’t seem tounderstand ROCE, said the examiner.

Another real concern for the examiner is therote learning by tutors in areas such as ratioanalysis, group accounting and consolidation.Unless students understand why they are doingsomething they will never learn.

PQs are told they need to continue to tailortheir answers to the specific scenario and theintended reader – be it an investor, entity, bankor colleague.

F2 – MARKS PER QUESTION

QUESTION 1 (10 MARKS)All UK Africa

May 2012 76% 75% 74%November 2012 40% 41% 35%May 2013 69% 70% 65%November 2013 76% 77% 71%













MANAGERIAL LEVELENTERPRISE MANAGEMENT .

The hot verbs in this paper are ‘discuss’ and‘explain’. The examiner is, however, concernedabout the poor planning in the exam hall. Manycandidates are just not writing enough and theirapplication of models is poor.

It was stressed that it is not the case thatbullet points are absolutely forbidden. In fact,they can sometimes be useful as they drawattention to important information. But most E2exams require the development of concepts,ideas and theories.

The examiner pointed out that mereregurgitating the definition of theories will not getyou through this test.

There are also worries about students’ lack ofknowledge when it comes to the important topicof ethics. Do you know what makes an ethicalorganisation? You should also be able to answerwhy being socially responsible does not conflictwith responsibilities to shareholders.

E2 – MARKS PER QUESTION















• The figures for P2 Performance Managementappeared in PQ magazine, page 30, August 2014

Which questions are you doing well and which ones are a problem? Our statistics unveil the unequivocal truth

pq oct 14 p28_pq oct 09 p12,13 11/09/2014 09:31 Page 12

The University of South Wales has a richheritage of delivering highly respectedaccounting and finance programmes

that provide industry-ready students.It is the only university to win the PQ

magazine ‘Public Sector Accountancy College ofthe Year’ twice, in 2010 and 2012. In 2013, itcelebrated 40 years of ACCA tuition at itsNewport campuses, and it has a trio of topaccreditations for its Newport-basedprofessional courses – ACCA Platinum ApprovedLearning Partner, CIMA Quality Partner andICAEW Partner in Learning.

The university works closely with localemployers and professional bodies. Forexample, it runs industry-focused work-basedlearning programmes (such as the MSc inFinancial Services, delivered for a consortium oflocal firms including Admiral and Atradius); canaccredit experience gained in the workplace viathe APEL scheme and hence provide ‘fast-track’programmes to groups of employees withinorganisations; provides bespoke CPD forprofessional body networks and individualorganisations; runs a Legal and Financial AdviceClinic that dispenses free advice to individualsand businesses while providing work experiencefor students; and hosts an investment society forstudents in conjunction with a local trading firm.

In London, the university is expanding itsaccounting ad finance offer into London,providing students with a truly metropolitanexperience and the opportunity to study andwork in the heart of the world’s financialmarkets. Students will be able to immerse

themselves in both the academic and practicalsides of global professional services.

The London centre is located at DocklandsAcademy. It provides students with first-classfacilities (including a trading room) and aninspirational environment to learn and growprofessionally.

It offers a number of postgraduate accountingand finance courses, taught by professionallyqualified accountants and specialists with awealth of teaching experience.

These include two innovative newprogrammes – an MSc Trading & Risk,developed with a number of trading firms to beboth academically rigorous and practically

29PQ Magazine October 2014

college focus PQ

For more information email:

[email protected] with Flip in the subject line

focused, and a combined MSc Accounting &Finance with ACCA that allows students tocomplete their professional accountancy studieswhile obtaining a Masters qualification.

The full list of courses is as follows:• MSc Finance• MSc Forensic Audit & Accounting• MSc Management and Development ofInternational Financial Systems• MSc Islamic Banking and Finance• MSc Accounting• MSc Trading and Risk• MSc Accounting and Finance with ACCA• For information on the London Centre visitwww.southwales.ac.uk/london

PQ

LONDON CALLINGUniversity of South Wales celebrates the opening of its London centre



PQ Awards 2015

There is little doubt that JamesField is a special PQ. Hey, he’sour PQ of the Year after all! But it

was when we visited him at work indeepest East Sussex that it became evermore clear: that behind every good PQ isa boss and a company supporting themall the way.

That company is Cheesmur (a hugelysuccessful building contractor) and theminute you enter its old barn offices youunderstand that here is a company thatis going places. But that wasn’t alwaysthe case, and it has been James’ fiveyears of dedication that the top guys atLewes-based Cheesmur (Steve Hayman,Terry Nitman and Mark O’Hara) wantedto acknowledge.

James didn’t start out wanting to be anaccountant. After beginning a degree inphysics he moved into retail working forShell, Safeways and the Co-op, where hestayed for the next 15 years. He decidedthat this wasn’t going to be his career forlife and signed up to an AAT course in2000. After getting to intermediate levelhe took another big side-step, launchinghis own business.

From 2002 to 2006, he was jointowner and director of a children’s leisurecentre in Brighton. But the business took

over his life so in 2006 he sold his sharesand went to work for a pharmaceuticalcompany, as an accounts assistant. Afterthat he joined Cheesmur, in 2008.

What James didn’t know is that he wasjoining a company in dire trouble. Hearrived to a complete mess, with papereverywhere – remember this is a buildingcontractor. The old boss left, leavingbehind a black hole in the accounts, andthis is when Steve, Terry and Markstepped in to help turn it all around.Mark is the qualified accountant.

The company had lost a six-figure sumand James was the only accounts teamemployee. It was time to sink or swim.James was, as his bosses discovered, avery good swimmer. He helped create apayment plan for creditors and for thenext five years the company hasdelivered positive annual results andachieved a positive balance sheet afterfour years. That is a year ahead of thebank’s schedule, explained Mark onJames’ PQ awards nomination form.

On top of dealing with numerousconcerned creditors, James also helpedMark overhaul the accounting systemsand implement some much-neededinternal controls. He has also dealt withthree HMRC inspections.

As if that wasn’t enough, James alsowent back to school. He first had tocomplete his AAT qualification which hadchanged significantly in the eight yearssince he completed the intermediatelevel. But James soon got that out of theway and then decided to study for anaccountancy honours degree at BrightonUniversity.

Then came the ACCA qualification, andJames was just one exam pass away fromcompleting all the papers when we spoketo him – the dreaded P7, Advanced Auditand Assurance.

Top advice on P7Despite passing so many exams Jamesadmits that he finds managing time in theexams hard. “I am not a fast writer and Ishould have done more on standards thelast time I sat P7,” he says. He pointed tothe advice given in a recent copy of PQ,which was sitting on his desk, written bya Lecturer of the Year, Paul Mersion. In itMerison offered some top advice onpassing P7. “He is so right; I wish I hadread that before I sat the Decemberexams,” says James. (This articleappeared on pages 26-27 of our May2014 issue. You can access it by going towww.issuu.com – type in PQ magazine.)It must have worked, because in AugustJames phoned us to tell us he hadpassed P7!

James’ key to success in the exam hallis to know where your weaknesses areand then be prepared to put in the hoursto get better in those areas.

To get inside the examiner’s mind healso looked at a lot of past exam papers.Cheesmur gave him a day off a week tostudy and a week before the exam. Butthat meant four tough, long days in return– he needed to do six days work in four,and that translated into 12-hour days.

Mark explained that James now hasstaff to manage – Martina, who hascompleted her AAT studies and is nowstudying ACCA. She was hired in 2012.He felt that there was no reason why oneday James couldn’t be Cheesmur’sfinance director and one suspects thatone day he will be.

What has impressed Mark most is howJames has risen to every challengethrown at him. The ACCA now NQ hascertainly done well – and now has atrophy to prove it! PQ

WHAT MAKES A PQ OF THE YEAR?

Nominationsfor the PQ

Awards 2015are now open.

See facingpage or go toour website

for details onhow to enter

“Behindevery good

PQ is a boss and a companysupporting themall the way

PQ magazine editor Graham Hambly visited our currentchampion at work to find out what makes him so special


PQ Magazine October 2014 31

Awards 2015 PQ

WIN A PQ!Last year’s PQ awards got a shout out on

Radio 2’s Steve Wright in the Afternoonshow. He told his listeners that these

were the PQ awards – not the GQ awards – but itwould have been hard to beat the chilledatmosphere at our awards night earlier this year.

These are the awards to be seen at! And theyare always packed with the great and good ofthe accountancy industry. Among our guests in2014 were Alan Hatfield, ACCA director oflearning, CIMA director of education Noel Tagoe,Mark Protherough, the ICAEWdirector of learning,and Adrian Pulham,CIPFA’s director ofeducation. You canadd former AAT CEOJane Scott Paul andCIPFA’s Steve Freerto that list. On top ofthat there were atleast threeaccountancy bodypresidents in the room, plus CEOs from severalother accountancy bodies.

The winner of the PQ of the Year category wasJames Field from Lewes, East Sussex. Read allabout how he is making a difference for hisemployers on the opposite page.

There were also lots of other PQs and tutors inthe crowd, the youngest being finalistMuhammed Jawaad Khan, who was just 16(pictured above with his parents).

Some of the other key winners on the nightwere CIPFA (Accountancy Body of the Year),and Manchester Met University’s Accountancy,Finance & Economics Society (Student Body ofthe Year).

Now in our 12th year, we’re giving you 16chances of winning a coverted PQ trophy.Remember, we split the College of the Year andLecturer of the Year awards into public andprivate sector categories.

There really isn’t anyexcuse for not nominating(and yes, you cannominate yourself). All weneed is 250 words, plusany supporting evidence,on why the nomineeshould win.

Remember it is allabout quality – you willbe initially judged on

those 250 wise words so makethem count. The person or organisation with themost entries will not be the winner – it will beour judges who make the final decision here.

To enter, all you have to do is download anapplication form from our website, or you cansimply email your entry directly [email protected]. Or you can sendthem to the Editor at PQ magazine, 4th Floor,Central House, 142 Central Street, London EC1V8AR. The deadline for nominations is Friday 19December 2014. PQ

We are now open for nominations for the PQ magazineAwards 2015. Remember, you have to be in it to win it!

• 2014 ARMSTRONGWATSON PAYROLL BUREAUTEAMThey claimed to be simplythe best, better than all therest – and our judges agreed.The 17-strong payroll teamprocesses 1,700 payrollsproducing 26,000 payslips amonth. This was a team ableto manage any changethrown at them. It also tookits trainees recruitmentseriously. Last year alone itrecruited eight new payrolltrainees who all undertookCIPP training. So doesn’t your teamdeserve a great night out?

CATEGORIESn PQ OF THE YEAR

n NQ OF THE YEAR

n DISTANCE LEARNING STUDENT OFTHE YEAR

n STUDENT BODY OF THE YEAR

n TRAINING MANAGER OF THE YEAR

n ACCOUNTANCY COLLEGE OF THEYEAR – PUBLIC SECTOR

n ACCOUNTANCY COLLEGE OF THEYEAR – PRIVATE SECTOR

n LECTURER OF THE YEAR – PUBLICSECTOR

n LECTURER OF THE YEAR – PRIVATESECTOR

n ACCOUNTANCY TEAM OF THE YEAR

n INNOVATION IN ACCOUNTANCY

n STUDY RESOURCE OF THE YEAR

n ACCOUNTANCY BODY OF THE YEAR

n ACCOUNTANCY PERSONALITY OFTHE YEAR

n LIFETIME ACHIEVEMENT

OUR SPONSORSNo award ceremony is possible

without the sponsors. And we haveonly the best...

TEAMOF THEYEAR


YOUR NEW-LOOK F4

legal relationships that people generally enterinto, but accountants in particular must be awareof the issues raised. Negligence is felt essentialas it is the basis for understanding professionalnegligence. It should be noted that in terms oftort law attention will be focused on the essentialbusiness-centred torts of passing off andnegligence and others, such as personal torts ofnuisance and trespass, have been removed fromthe syllabus.• Explaining and applying the law relating toemployment relationships. This is an importantand popular element of the syllabus.• Distinguishing between alternative forms andconstitutions of business organisations.

• Recognising and comparing types of capitaland the financing of companies.• Describing and explaining how companies aremanaged, administered and regulated.• Recognising the legal implications relating toinsolvency law.• Demonstrating an understanding of variouscriminal offences that may arise in the operationof businesses. This latter aspect of the syllabuswas enhanced by the necessary introduction ofthe law relating to bribery but, in recognition ofthe fact that the syllabus cannot just be allowedto grow, it was decided to remove corporategovernance from the F4 syllabus. This subject isnow dealt with in F8 and P1. PQ


PQ ACCA F4 paper

An insight into how the examinersees the changes to the F4 paper

From December 2014, the F4 exam willmove from the current three-hour paperto a two-hour paper. It will be divided

into two sections. Section A will be worth 70marks and contain a mixture of 20 one-markand 25 two-mark questions. The examinerstresses that the questions in this section will berandomised. That means students will have torecognise the area of the law they are dealingwith if they are to answer the question correctly.The examiner has also emphasised that thewhole of the syllabus can be tested in these 45questions.

F4 sitters will have to select the correct answerfrom a list of answers. Remember, there can onlybe one correct answer to each question. Markallocation will depend on the complexity of thequestion. The examiner points out that section Alends itself to computer based marking and willhelp conversion to CB exams when the ACCAmove to this phase.

Section B will contain five six-mark multi-taskquestions (MTQs). In effect, this replicates thethree analysis/application questions at the end ofthe old-style exam paper. The tasks will relate toa scenario provided in the paper.

The ACCA said that the new F4 structure is amajor change, but what is examined haschanged very little.

The exam itself does not aim to makecandidates into lawyers. Accountants must,however, be aware of the legal framework withinwhich their legal professionals operate.

The examiner pointed out recently that thestated aims of the F4 (ENG) syllabus remain:• Identifying the essential elements of the legalsystem, including the main sources of law (it isfelt that candidates must have a minimumunderstanding of the legal framework in order tounderstand the operation of the substantive law.Now that the Human Rights Act 1998 hasbedded into English law it has been decided notto examine it as a substantive topic, although itmay arise in consideration of specific aspects oflaw).• Recognising and applying the appropriate legalrules relating to the law of obligations (bothcontractual and tortious). These are essential

PQMAGAZINEGOESGLOBALSign up for the Emagazine and read PQmagazine

nomatter where you are –online. Go to

www.pqmagazine.co.uk and sign up for FREE today

online. Go to

pq Oct 14 p32_Layout 1 08/09/2014 16:49 Page 26

You might have heard the acronym‘IPSAS’ cropping up more andmore. But what are they and whythey are important? Read our Q&Ato learn more…

What does IPSAS stand for? International PublicSector Accounting Standards.

What are IPSAS? We suspect you’ve heard ofInternational Financial Reporting Standards(IFRS). IPSAS are the equivalent standards, butspecifically set for the public sector. They providethe foundation of good public financialmanagement and are the most globally acceptedfinancial reporting standards for the public sector.

Why have they been developed and how arethey different to IFRS? IPSAS are aligned withIFRS but they were developed followingrecognition that there are significant differencesin public sector finance to warrant their ownaccounting standards.

Why are they important? Adopting IPSAS allowspublic sector organisations to:• Present a fair view of governmental financesand increase transparency to citizens aboutperformance and the current financial situation.• Make better informed decisions due to agreater understanding of your fiscal position.• Strengthen confidence in public sectorfinancial management.• Increase global comparability betweencountries through one accrual-based accountingfinancial reporting system.• Facilitate sharing of best practice worldwide.

What are the benefits? All of the above supportssustainable economic growth within the countryincluding, job creation, lower levels of taxationand more efficient and effective public services.

Not only this but increased transparency andaccountability builds trust and confidence amongcitizens, business, and investors across globalmarkets, including lower cost of capital, moreextended maturity profiles, and greaterpredictability of fund raising.

Where have they been implemented and whohas backed them? IPSAS are used by anincreasing number of public authorities aroundthe world including national and localgovernments, agencies and regulatory bodies,and also by many international organisations.They include the World Bank, NATO, the IMF,the United Nations, the Organisation forEconomic Co-operation and Development(OECD), the European Commission, Eurostat, theInternational Federation of Accountants and theEuropean Federation of Accountants.

Why do I need to know about IPSAS? Havingspecialist knowledge in IPSAS will enable you tobe at the cutting edge of public finance acrossthe world. As the list of governmentsimplementing international accounting standardscontinues to dramatically grow you will find your

skills are of value to your current organisationand in great demand from other organisations.

Why should I trust CIPFA as the experts onIPSAS? CIPFA has unrivalled experience acrossglobal public sector policy and governance andwe have helped to drive and shape the IPSASstandards.

• Find out more about IPSAS and CIPFA’s globalCert IPSAS qualification at www.cipfa.org/ipsas

PQ

33

CIPFA viewpoint PQ


IPSAS: the lowdown

Become certified in IPSASOur IPSAS qualification will advance yourknowledge and career by positioningyourself as a global expert in IPSAS. Thiscertificate takes around 60 hours study timeand a one off payable fee. To find out moreabout our IPSAS certificate seehttp://www.cipfa.org/certipsas

The Osprey has landed:Allied Ministers of Defenceat the recent NATO WalesSummit

Check it out now – the all-new NQ!NQ magazine is an e-mag for newly qualifieds who want to get aheadIt's packed with articles from industry experts that will help you do your job better

Sign up today via the PQ magazine website – www.pqmagazine.co.uk



PQ CIMA examsDON’T GET PEGGED BACKThe E1 exam .

Students are still struggling to get a passin section C, so need to score well insections A and B, says the May PEG.

Some candidates clearly do notunderstand social marketing. Many aconfused student ‘described’ marketingusing social media and scored poorly asa consequence.

The E2 exam .Don’t you just love the examiners! TheMay PEG says: “This exam paperdiscriminated clearly between candidateswho had prepared well and those whoappeared not to have done anypreparation at all.” At PQ we believe thisis unsubstantiated speculation on behalfof the examiner. That is a nice way ofsaying this speculation is total garbage.

How can we say this? First, CIMAexams are totally unregulated by anyindependent process. Second, theexaminer has no information about thecourses individual students sat or theamount of work they put in. So justifyingthe pass rate on the questions setbecomes a totally arbitrary thing.

Why is it that more candidates than inany other of the previous diets scored inexcess of 80%? We would venture thatthey question spotted and got it right, butwe would be in a lot of trouble if we saidthat out loud.

The questions students seemed tostruggle most with in May were Q4 andQ7. For Q4, students had real problemsapplying the resource based view to thecompany featured in the scenario. Q7was all about PRINCE 2. Again, studentsfailed to show any great ability to answerthe question ‘in context’.

The P2 exam .The examiner isn’t happy as the overallperformance in this paper was ‘extremelypoor’. The PEG stresses that those whostudied the whole syllabus were rewarded– which seems something examinershave to say these days. But the E3examiner feels exonerated by the poorlyanswered questions relating to life cyclecosting, benchmarking and varianceanalysis/profit reconciliation.

Worryingly, the examiner suggestedthat there is also a problem with CIMA’sexemption policy. In the generalcomments they say: “A knowledge gaprelating to the exemption policy has notbeen addressed.” Surely students shouldnot be punished for this policy.

Some things really annoy the examiner.Never ever write your exam paper in red

So what didthe examiners

say in theirPost ExamGuides forMay 2014?Here’s thehighlights

ink! The markers will hate you and sodoes the examiner. Why are you doing it?There is also a real concern about thepresentation of your answers. Themarkers are struggling with illegiblehandwriting and unclear workings.

The E3 exam .Overall, the examiner felt studentsperformed well in this exam. Theexaminer still pleads that students answerthe questions set and apply the scenarioinformation as much as possible to theanswer. The examiner also outlined 13learning outcomes from the E3 syllabus.Know these and the assumption is youwill pass:1) Produce an organisation’s value chain.2) Recommend how to interact withsuppliers and customers.3) Evaluate strategic options.4) Discuss the drivers of external

demands for corporate socialresponsibility.5) Evaluate the process of strategyformulation.6) Discuss the concept of organisationalchange.7) Evaluate approaches to managementchange.8) Evaluate the role of changemanagement in the context of strategyimplementation.9) Evaluate different organisationalstructures.10) Recommend appropriate controlmeasures.11) Advise managers on the developmentof information systems that support theorganisation’s strategic requirements.12) Recommend how to managerelationships with stakeholders.13) Evaluate alternative models ofperformance measurement.

The P3 exam .Again, the performance at P3 was not “asgood as expected”. Too many sitters arestill trying to obtain marks throughrepetition of memorised facts andinformation, rather than applying theirknowledge to the scenario.

The examiner stressed that there isless choice now for students and onlyone question can, in effect, be left out.PQs need to register that 35% of thesyllabus is financial risk. That meansevery Q1 will contain some financial risk.

The examiner was surprised by thenumber of students who thought themissing clarinet in Q3 was trivial. It showsa poor control environment and internalcontrols not being complied with at themost senior level of the organisation. Theproblem is therefore very serious and thevalue is in fact not hugely important.

The F3 exam .It was good to hear that most candidatesattempted three questions, as required inMay. The examiner gave out some veryinteresting information regarding themarking of the papers. In a narrativesection where the marking guide says“up to two or three marks are availablefor each valid point” half-marks areawarded for a bullet point, one mark forsome attempt at (correct and valid)discussion, rising to two marks for gooddiscussion of the point and, if available,three marks where candidates have alsoprovided appropriate illustrativeexamples.

Where marks are shown forcalculations, the marks shown are themaximum available assuming allcalculations are correct. Some credit isgiven for recognition of correct approachand understanding even if the numbersare not correct. The “own answer (orfigure)” principle is, of course, followed inall cases. • We looked at the PEGs for F1, F2 andP1 in last month’s PQ magazine.

PQ

pq oct 14 P-34_pq oct 09 p12,13 08/09/2014 16:50 Page 12

Are the new CIMA 2015 examsgoing to be very different? BPP’sSteve Malpass reports

Imust have delivered 20–30 presentationson CIMA’s 2015 syllabus over the past 12months. When describing the new

assessment structure, I’ve settled on using thefollowing analogy: “Imagine each individualpaper’s technical syllabus is a tree. The objectivetest (OT) exams are going to test your knowledgeright down at the ‘twig level’ of detail. Nowimagine three of these trees growing very closelyto each other. The Integrated Case Study (ICS)exams are going to assess your understandingand competence at ‘branch level’, and you’llneed to be able to jump between the three treesas the exam situation dictates”

So, just as in the real world of managementaccounting, to be successful in 2015 you mustbe able to operate confidently and competentlywithin the devilish detail as well as at a morethematic, helicopter view of the issues abusiness faces.

Initially, one of the main challenges with theOT exams will be to overcome the commonmisconception that ‘objective test’ is just anothername for multi-choice exams and thereforethey’ll be easy. It isn’t and they won’t. Yes, therewill be some multi-choice questions in there, butlots of other question types too, and the only wayto pass will be to go into the exam with a preciseand comprehensive technical understanding ofthe syllabus.

NO PARTIAL MARKS .Why ‘precise’? Because each answer you give inthe OT exam will be either 100% correct or100% wrong – there will be no partial marks for‘mostly right’ answers. Why ‘comprehensive’?Because CIMA have clearly stated that each OTexam will cover all of the syllabus learningoutcomes. Add this to a pass mark of 70% andthere will be little room for manoeuvre if you arenot fully prepared.

I’ve had several emails from students whoseinitial impression is that they’ll be able to quicklyshoot through the OT exams in January/Februaryfor a whole level (!). I’ve had to point out theyshould not underestimate the study hours thatare likely to be needed here. Given that mostCIMA students are ‘study-hours poor’, the key tosuccess will be efficiency in how you target yourstudies, ideally testing yourself continuously asyou go so you can quickly target personal weakareas.

I believe that your primary objective whenstudying each individual paper is to specificallytarget the OT exam or, in other words, the twigs.However, to aid your understanding of which twigsits where, and with the subsequent ICS examfor your level in mind, you should always bethinking your way back up the branches – to

how the topics in the syllabus relate to the realbusiness world.

OK, so the OT exams will have theirchallenges, but what about the ICS exams?Initially, the main challenge here will simply bethat they are different. By this I mean thatcurrent CIMA students who have sat several2010 syllabus written exams may find theseharder to deal with than future CIMA students,who have never known anything else.

To be successful in the ICS exam, all studentswill need to ensure they focus on the branchesof their learning to date, and resist the urge toget dragged back down too much to the fiddlytwigs.

Specifically, students will need to clearlydemonstrate the four core competencies (coreaccounting skills, business acumen, leadershipskills and people skills), while integrating theiranswers by drawing on their understanding ofeach individual paper in a Level, and ensuringthat they set their whole answer within thecontext of the case study. Plus everybody’s old

friend – time management – is also going tomore important than it ever was. Blimey, what alist!

What I can say here is that the vast majority ofthe students I deal with during their CIMAjourney have proved they can cope with thesesort of challenges – by preparing for and passing(usually first time) the current case study-basedexams at Strategic Level and T4. The new ICSexams are not going to be any ‘harder’ thanthese – there’s just different stuff to deal with.

To be successful in ICS exams students willneed to ensure their preparations are structuredand focused. This will mean breaking the listabove down into manageable chunks anddeveloping competence in each element, beforebringing it all together a piece at a time in ameasured way.

As with studying for the OT exams, regularlytesting yourself as you go will be a great help inefficiently preparing for the ICS exams. • Steve Malpass is Head of CIMA Programmeat BPP

PQ

35

CIMA 2015 exams PQ


Tree of knowledge


The exam results are out and there is a small window before it all starts again.You need something, a reward perhaps, to keep you going!Well, PQ magazine and Home Learning College have joined forces to offer onelucky reader £750 worth of Thomas Cook travel vouchers.So, do you fancy Venice in the Spring? A long weekend in Barcelona with a visitto the Nou Camp thrown in? Or just want to fly to Thailand and find a beach?Then we can make it all that much more affordable!The choice is totally yours. To enter simply email [email protected] your name and contact number by noon on Tuesday 30 September.


PQ the ultimate giveaways

HOLIDAY GIVEAWAY

WITH AND

COMPETITION TERMS & CONDITIONSThe competition is open to all readers of PQ magazine. Deadline for all entries is noon (GMT)on Tuesday 30 September 2014. No cash equivalent will be offered. The decision of thepublisher is final. Not open to employees of PQ magazine or Home Learning College. One reader will win vouchers to the value of £750 when they book with Thomas Cook (including a £250 Villa voucher).

THE GREAT AAT GIVEAWAYFirst Intuition has just launched its fantastic new ‘CompleteStudy Package’ for AAT PQs and wants you to see just howgood it is! We have five sets of its level 2 PBKT CompleteStudy Pack to giveaway. That’s £175 (retail price) worth oftop materials and personal support from First Intuition’s teamof experts. So that’s a study planner, course notes, questionbank, task bank and mock assessments.To enter simply email [email protected] with yourname and contact number (headed First Complete) by noon, 1 October 2014*.

CHECK OUT THE ROADSHOWSWatch out for the First Intuition/PQ magazine

AAT Roadshows, open to any AAT distance learning studentat any level.

They kick off in Bristol on Saturday 1 NovemberThen it’s:

Leeds on Saturday 22 NovemberCambridge on Saturday 6 December

* PQ Magazine’s usual terms and conditions apply.

pq Oct 14 p36_Layout 1 10/09/2014 10:52 Page 26

37PQ Magazine October 2014

profile PQ

I read somewhere that you dreamed ofbeing a time traveller as a girl. Did youever dream of being an accountant? Ha! Does anyone dream of being anaccountant? Other than time traveller, Iconsidered being a deep-sea diver, awriter, a circus director and SecretaryGeneral of the UN. Butnope, I never woke upstarry-eyed and told myfather, “Oh Dad, I want tobe an accountant!” Whichwas okay, as my father haddreamt of being an artist ora miner or an explorer –not a boring accountantlike his dad. Apparently,accounting is a geneticthing with us rather than adream come true.

You spent eight yearsas an auditor with PwC.How was that?Once I’d gotten over thedisillusion of not being able totravel through time – or of being a circusdirector – accounting didn’t seem toobad, and PwC was an excellent startingpoint for my career, giving me theopportunity to work with everything fromsmall local businesses to multinationals.Plus, I liked the structure, the methodicalapproach to financial analysis – and tothis day I use these tools when reviewingcompany numbers. A further plus weremy co-workers – bright, curious andanything but boring. I suspect most ofthem had nourished dreams as wild asmine when they were kids.

How did you find the accountancyexams?Daunting. The amount of information anaccountant must be up-to-date with isvast – and while in real life one can lookthings up, during the exams one had toremember all of it. But I’m good atcramming, so the last few weeks beforethe exams were defined by pots of tea,endless studying and very little sleep.Something I have in common with verymany, I suspect.

You have had a very successfulaccountancy career, what is it you likeabout accountancy?There is a beauty to numbers. They donot deceive, they don’t offer excuses,they don’t paint the bride. Well – theycan do all that, of course, butaccountancy is really the art of stripping

the numbers down to the basic truth ofpluses and minuses, and to offer aninterpretation of what the history was andwhat the future may bring. Quite poetic,in its own way. Plus, there is nothingquite as satisfactory as when you postthat last journal entry and everything

squares – all the wayfrom the P&L to thecash flow statement.

When did you startwriting and when didyou discover you weregood enough to bepublished?I have always written, butonly recently have I givenmy writing the substantialamount of hours requiredto make it fly. As to the‘good enough’, I am veryharsh on myself – plus Iread voraciously, so I knewwhat sort of story I enjoyedand wanted to write. Also,

when writing historical fiction there is anelement of accuracy (like verifying dates,foods, clothes) that requires a lot of time-consuming research, time I didn’t havewhile my children were small.

You have four children. How did youmanage everything and not hit thatglass ceiling we are always readingabout?I did hit that glass ceiling – with a crash.At the time, I had four kids aged 11 andunder and one very full-time job. I ran aday care centre on the side and one dayall the energy was gone, leaving mesomething of a mess as I sorted my life. Ibecame a victim to my own ambition and

Anna Belfrage combines her job as CFO of Bejer Electronicswith a successful writing career. She tells PQ how she does it

wish to excel, and learnt the hard waythat no one will manage your work/lifebalance for you if you don’t. Hitting theglass ceiling is painful. Recovering andmoving onwards is empowering. And no,I don’t work less today…

What advice would you give otheraccountants who want to do somethingdifferent? To do so – now. Life is too short not topursue the dreams one may have. One ofthe benefits of being an accountant isthat we are very good at factoring in the‘reality’ aspect in almost anything we do –which means those totally impossibledreams (like time travelling) are the oneswe neatly place in the ‘don’t even try’pile. But there are a lot of dreams we can– and should pursue. Like being a circusdirector… PQ

DAYDREAM BELIEVER

UP CLOSE AND PERSONAL• What is the last book you read? Worth Dying For by Lee Child (I have a thing about Jack Reacher)• What is your favourite TV programme? Don’t have one – don’t have time for TV.• Who is your hero? If I narrow my choice down to now living people, I think it would be Bill Gates.He built an impressive company based on new technology before people even believed in thattechnology, and even better, he is giving away huge amounts of money to the needy. • If you had a time machine where would you go? To the 17th century and experience first-hand the world I write about. Or maybe the 14th century tofind out what really happened to Edward II.• If you hadn’t chosen a career in accountancy what might you be right now?I am very happy with my career in accountancy. It is my opinion I have the best of both worlds, aday job that allows me to submerge myself in wonderful numbers and spreadsheets, a side-line as awriter that gives me the opportunity to paint other times and other places. Not bad, eh? Maybe notquite as impressive as being a time traveller for real, but quite the good second best!

“There is abeauty to

numbers. They donot deceive, theydon’t offer excuses



PQ careers

Recruiters of finance professionals wantindividuals who can apply theirtechnical expertise, business

awareness and communication skills to supportstrategic decision making, reinforce growth andprofitability, identify new revenue streams, driveefficiencies, implement major transformationsand assess and mitigate risk in the various rolestheir profession offers.

If you are interested in getting into a blue chipcorporate environment then business andfinancial analysis skills, project accounting,internal audit and risk management are skills thatare frequently required. International experiencewill also give you an edge. Internal audit is oftenseen as a key stage in the development of futurefinance leaders, particularly if you are focused onbuilding a career within large corporate business.For this you will need to show close attention todetail, a proactive attitude, consultative skillsand commercial awareness. It is a great routeinto industry and can act as a stepping stone forinternal moves into mainstream accounting jobs.

If you are an agile thinker with a flexible,hands-on approach, you might be just right for acentral role in a growing SME or MSB. Energeticentrepreneurs who value the finance andbusiness know-how of like-minded qualifiedaccountants run many successful and fast-growing start-ups and small businesses. They willwant to know what you can offer from day oneand how you will make a difference to theirorganisation and help steer them through theirkey business decisions. Going to an interviewarmed with examples of where you have used

your initiative to come up with value-addedsolutions and demonstrating commercial nouswill help you stand out at interview.

If you are considering working in professionalservices keep in mind that entrepreneurialfinance professionals demand high standards inclient service delivery, and allow employees todevelop their commercial skills and businessacumen.

If you have an interest in building your taxcareer, whether you stay in practice or move intoindustry, today’s business world calls for taxprofessionals to possess powerful analysis skillsand lateral thinking, along with an anticipatory,problem-solving mindset. Because you are likelyto work closely with heads of taxation andfinancial directors, candidates must conveyconfidence, commercial awareness and theability to gain the trust of those leading figures.

In the public and not-for-profit sectors financeprofessionals continue to enjoy key roles,influencing decisions that impact on servicedelivery and social objective strategies. Manyfinance directors and business leaders in publicservices have themselves trained with Big 4 firmsor large multinational corporations, bringingprivate-sector dynamism and best practice withthem and an ability to influence and provideintegrity to decision making.

For more information on your career optionsvisit http://www.hays.co.uk/job/accountancy-finance-jobs/newly-qualified/index.htm• Karen Young, Director at Hays Accountancy& Finance

PQ

Hit the ground runningKaren Young discusses the

skills newly qualifiedaccountants need in orderto develop their careers

pq oct 14 p38 copy_Layout 1 10/09/2014 10:54 Page 31


careers PQ

Jenny Saywell FMAAT is Managing Director – BPP Nottingham. She has been there forseven years. Jenny, a CIMA passed finalist, was once rejected from Jim’ll Fix It, as heridea to live in an igloo for a week was “too much of a stretch for BBC resources”

Life at BPP

The workplace: what do employers want?LSBF and GAAPweb discover whataccounting employers want from PQs

Earlier this summer, LSBF and GAAPweb conductedan online survey to find out what financial andaccountancy employers look for in candidates whenrecruiting for entry-level positions.

The results reveal some fundamentaltruths surrounding the accountingprofession. So, while a university degreeis still highly regarded by employers,the survey also found that professionalqualifications such as AAT, ACCA andCIMA are considered “as important” asan undergraduate degree.

Another key fact that emerged is thecritical importance of previous workexperience. Having exposure to theprofessional world and to the workenvironment is a competitive advantage forcandidates at all levels.

When asked to detail which attribute employersconsider the most important when recruitingaptitude/motivation came out top. A whopping 91%of respondents classed these skills as ‘important’ or‘extremely important’. As one participant said:“Motivation is the most important feature in acandidate – all the other things will follow.” Anotherexplained: “At entry level I want people with aptitudeand integrity. We’ll teach them everything they need

to know and help them through further education ifthey want it.”

The second highest scoring attribute was relevantwork experience. Interestingly, it scored higher thanthe degree/professional qualification option. Thisreflects the importance apprenticeships andinternship programmes are as a step towards furthercareer development. A respondent said: “I am in the

process of recruiting for two financeassistants. Despite requesting experience,it’s been surprising that over 60% ofapplicants have no relevant experience.”

The survey also found soft skills(presentation, communication, etc) scoredslightly higher than technical ones, such asSAGE and financial modelling.

LSBF’s director of professional courses,Rob Sowerby, stressed that the resultsshow that possessing basic job skills or aqualification on paper simply won’t cut it in

the employment market any more. He pointed out:“Having experience in the workplace, practical skillsand the ability to apply theoretical knowledge fromday one in a new job are integral to candidates’employment prospects, which is why educationalinstitutions need to work more closely with industryto make sure they produce office-ready candidatesfor the future.”

To discover which soft skills and technical skillsare ‘in demand’ then download the full report, athttp://bit.ly/LSBF-GAAPweb-Report

39

What time does your alarmclock go off on a workingday? 6.30am.What’s the first thing you dowhen you get to your desk?Grab myself a brew – with twoteabags and three sugars.What’s on your desk? Lots ofstuff that shouldn’t be, like crisppackets/empty mugs, but also myPQ Lecturer of the Year award.What’s the best thing aboutwhere you work? The awesomestudents – a bunch of characters.They never fail to both frustrateme beyond all comprehensionand also make me feel as though Ihave the best job in the world.Where’s your favourite placeto go for lunch? Greggs – love aproper grease-fest.

What (or who) can you seewhen you sit at your desk? Acouple of my scoundrel colleaguesand a copy of our teachingtimetable.Which websites are yourfavourites and why? Dilbert –it’s so true to life (unfortunately!).Which websites do you usefor work? Investopedia.How many hours a week doyou spend in meetings?Thankfully, not many.What time do you leave theoffice? Usually about 5pm,unless I’m teaching an eveningclass.How do you relax? Watchingfilms – Marvel, for preference.What’s your favourite tipple?I’m partial to a bucket of Pinot

Grigio, or a pint of mild.How often do you take workhome with you? Every day – thefun never stops!What is your favourite TVprogramme? Criminal Minds.Summer or winter? Winter.Pub or club? PubWho is your hero?

Louis Theroux.If you had a timemachine, wherewould you go? Back to the 1950s – I love thefrocks they used to wear.If you hadn’t chosenaccountancy, where mightyou be right now? I’d probablybe a foreign languages teacher,although I wanted to be a unicornwhen I was younger.

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

Revenge & Retribution by AnnaBelfrage (SilverWood Books, £10.99)

Revenge & Retribution is number sixin CFO Anna Belfrage’s timeslipseries, the Graham Saga. The timetraveller here is modern business-woman Alexandra Lind, who we nowfind living in 17th century Americawith her husband Matthew Graham.Our 52-year-old heroine has toovercome accusations of witchcraft,native north Americans and theinfamous Burley Brothers.

This is a historic-fiction-meets-

chick-flick – and it works. There aresome sexy, even steamy, scenes inthe book. But we don’t hold thatagainst Anna, as this is a really wellwritten and totally engaging tome(even for this male reviewer!).

It was a great holiday read, and wecouldn’t help but become acheerleader for Alex. We had to waituntil page 20 before we read aboutledgers though: “Lucy nodded andpulled the ledgers towards her.Together with her mother-in-law, Lucykept all the accounts, and it wastheir neat hands that flowed up anddown the columns, detailingexpenses and incomes. New slaves,she noted with a slight frown. Again?She tapped at the item with herfinger, raining a questioning brow.For the tobacco farm, Kate explained.You know how quickly they wear out.” But that’s all you get!

We also liked the fact that thebook didn’t keep referring to the hereand now. We know Alex has left herBMW and other luxuries behind.Instead, the author immerses us in1684 Maryland. PQ rating: 4.5/5 Many onlinereviewers thought this was Anna’sbest book yet. We can’t verify that,but this accountant can write a greatyarn. You can read all about her onpage 37.

Committed to the jobOne in five employees

believes that colleagues whowork flexible hours are lesscommitted to the job than thoseat their desk full time.Interestingly, suspicions thatthose who work from home havea weaker work ethic are highest

among younger workers – thosefrom Generation Y.

4.30 is the new 6CEOs have always been

known for liking an early start.Now, however, it appears youmay have to start work beforeyou have gone to bed. Apple

boss Tim Cook, Starbucks headHoward Schultz and WaltDisney’s top man Robert Iger areamong a gaggle of CEOs whoclaim they rise daily at 4.30am. Ithas been suggested that theseleaders are passive-aggressivelyimplying they are trying harderthan the rest of us!

In brief

pq oct 14 p39_pq oct07-p31 11/09/2014 10:57 Page 31

© 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.

hays.co.uk/pq

As an ambitious part or newly qualified accountant, you’ll probably have already started

looking ahead and have a clear goal in mind, but how do you reach it and how do you

build upon your existing knowledge and skills?

We can provide you with a platform to showcase your skill-set and quickly develop

your career. With over 100 ofces nationally, we are the experts in finance careers

and have a strong understanding of the best organisations local to you. Through our

extensive networks we are connected to businesses you may want to work for and

can ofer you advice and guidance on securing an opportunity with them.

Book a confidential 1-2-1 CV clinic with one of our expert finance recruitment

consultants in an ofce near you.

Contact Colin Harrison on 01708 795812 or email [email protected]

A CAREER WITHOUT A GOAL IS JUST A JOB

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 degree/MBA/MSc ▫ 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 here............................................................................Date...........................................................

▫ Please tick here if you do not wish to receive direct marketing promotions from other companies.PQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms andconditions of circulation.We 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

www.pqmagazine.co.uk, or you can fill in the form below and send it to:

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

040_PQ 1014_PQ 1209 000 08/09/2014 13:59 Page 7

• Keep up to date with the latest

Accountancy news

• Gain insightful CV and interview tips

• Join the discussion on our blog

• Get ahead in your career with advice

from the experts

• Search for Part-Qualified jobs

• Discover what you are worth

Resources, hints and tips for Part-Qualified Accountants

BRAND NEW

reedglobal.com/pqhub

041_PQ 1014_PQ 1209 000 08/09/2014 14:03 Page 7


PQ got a story, funny or serious, you want to share? Email [email protected]

W E V E G O T T H E L O T’

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 Friday 10 October. The main draw will take place on Friday 17 October 2014

TO ENTER THESE GIVEAWAYS EMAIL [email protected]

Having difficulty remembering all those key facts andfigures you need to get you a pass in the exam hall?You need to switch on your brain and we have the idealbook for you – ‘Boost Your Brain’ by Joel Levy. PQmagazine has got hold of three books, which retail at£9.99 to giveaway this month. Send your name/address to [email protected] we will do the rest. Use the header Brain booster.

Tax Guide 2014We have three copies of the DailyTelegraph Tax Guide 2014 up for grabsthis month. This essential guide offerspractical advice, timetables andexamples that aim to simplify the worldof UK tax. Each copy normally retails at£16.99, but we will send you this bookfor free if your name comes out of thePQ hat first! Send your name and address details [email protected] headed up‘Tax Guide’ and we will do the rest.

GOOD WITHFIGURES? Accountant Maddison Hawk has becomea media star after admitting she hasspent £25,000 to give herself a completebody overhaul. It all started when shehad her ears pinned back, when she wassix. When she turned 18, Hawk startedfiddling with her figure more seriously.Some £25,000 later she has droppedfrom a size 12 to an eight, thanks toliposuction. A breast operation boostedher 32C to a 32H. And she isn’t stoppingthere. Hawk explained: “I don’t see whatthe big deal is. The way I see it I am£25,000 more beautiful than before.”

FARAGE VERSUSACCOUNTANCY Nigel Farage just can’t keep out of PQ’sfun pages! When UKIP’s accounts cameunder scrutiny it was insisted Farage “isn’tan accountant, he’s a character”. He hasnow been selected to stand in Conservativeblue-collar Thanet South. He is standingagainst Tory hopeful Craig Mackinlay, aman who would understand UKIP’saccounts as he is a trained charteredaccountant and a partner in a Kentaccountancy business. But they must bothbeware – they could split the vote and letLabour’s Will Scobie come through themiddle to take the seat!

TAKETHEOATH As the fines onbanks get biggerand bigger,someone has comeup with a plan tohelp those poorbankers. Thesuggestion? Makestockbrokers andbankers swear a‘banker’s oath’ –that they will servetheir customers anddo no harm. PhilipBlond of think tankResPublica feelsthat bankers lack asense of ethos andthe institutions theywork for lack aclearly definedsocial purpose. Hesaid: “The banker’soath represents aremarkableopportunity to fulfiltheir proper moraland economicpurpose, and finallyplace bankers onthe road toabsolution.”

WANTED: THICK-SKINNED ACCOUNTANT Would you want to work for “Jesus,Superman or an odious shit?” It is,according to Ryanair’s Michael O’Leary,what most people think of him. Thataside, he was recently advertising for anassistant. What he wants is an ambitiousqualified accountant able to work in ademanding, challenging and interestingrole. It certainly would be interesting.

UPGRADE YOUR CALCULATOR TO PINK Canon has injected some vibrant new colours into itshumble K series calculators. The new eye-catching LS-123Ks have been created for the style-consciousaccountant and designed to match dynamic interiors inboth homes and offices. They are now available in a rangeof coloured metallic finishes – pink, green, orange andblue. For £11.99 you get the 12-digit touchpad and alarge LCD display that make calculations easy to read.Dual power, both solar and battery, helps the calculatorperform for longer, and the built-in tax function is a helpfuladdition for those with accountancy needs.

SNOWBALLS – CAKES OR NOT?What’s the difference between achocolate biscuit and a Snowball? About20% VAT! Two judges recently tasted avariety of cakes at a tax tribunal hearingand decided that snowballs, a bite-sizeclassic eaten by millions of Britain’s eachyear, are actually a cake and not abiscuit. After testing the snacks ‘in

moderation’ the judges decided that snowballs should be zero-rated for VAT. Lees and Tunnock’s, two major confectioners,were contesting with a HMRC ruling. The taste test ended upcosting HMRC £2.8m.

QUOTEUNQUOTE

“A business thatmakes nothing butmoney is a poorkind of business”

Henry Ford

“It takes one hen to lay an egg, butseven men to sellit”

CJ Dennis

Boost yourbrain power

pq oct 14 p42_pq aug 13 fun 10/09/2014 10:56

Our part-time course is now more flexible than ever!

APPLY NOW

3 LIVE ONLINELECTURES A DAY

With 3 live lectures per day,

we are giving you more

flexibility than ever. Choose a

lecture time to suit you.

AWARD–WINNINGTUTORS

Our tutors are amongst the

most experienced in the country,

with numerous awards between

them.

FLEXIBLEPAYMENTSˆ

Financing your ACCA needn't be

a worry - you can now spread

the cost over 3 or 6 months.

M A N C H E S T E R

STUDY ACCA PART–TIMEWITH LSBF MANCHESTER

2nd Floor Linley House, Dickinson Street

just off Portland Street, Manchester M1 4LF

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

render the agreement null and void. Please visit the website for full terms and conditions.

www.LSBFmanchester.com/PQ

0161 669 4272

043_PQ 1014_PQ 1209 000 09/09/2014 10:57 Page 7

STUDY YOUR ACCA PART-TIME AT FBT

Study weekdays,

weekends or

100% online

Why choose FBT?

Live Online Sessions now

available 3 times a day

One-to-one coaching scheme

Flexible Payment Plan†

�

�

�

Benefits to you

Starting salary of £45,000/annumˆ

Global career opportunities

Career progression

�

�

�

IN PARTNERSHIP WITH

0121 616 33702nd floor 5-7 Hill Street, Birmingham, B5 4UA

www.fbt-global.com/PQ

^Permanent average salary per annum of a newly qualifed ACCA accountant in London working in accounting and fnance. Source: Robert Walters Global Salary Survey 2014. †Payments must be made on

or before the specifed date and failure to comply will render the agreement null and void.

APPLY NOW

044_PQ 1014_PQ 1209 000 11/09/2014 12:18 Page 7

pq magazine, october 2014

Documents