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PQ magazine August 2017 www.pqmagazine.com / www.pqjobs.co.

uk

DRONES ARE COMING


TO AN AUDIT NEAR YOU
WAVE GOODBYE to your
calculator, the accountants
optical character
recognition and barcodes
new best friend could be to collect inventory
their pet drone! information, especially
PwC has a drone HQ in during off-hours, to
Poland and now EY has minimise audit stakeholder
announced plans to scale- risk and improve
up the use of drones in its efficiency.
audit process. So the days EYs digital leader,
of PQs climbing up Hermann Sidhu, said: We
ladders for the annual have been testing the use
stocktake could be well of drones in the audit
and truly over. process for several months
Last year, PwC created a and the findings have
global centre of excellence been compelling.
in Poland, called Drone Its now time to scale
Powered Solutions. It our testing globally across
wants to harness the multiple sectors, as we
opportunities drones can know that many audits can
offer its clients. benefit from the use of
PwCs Michal Mazur this innovative
said: Drones are making technology.
the transition from novelty improve the accuracy and sectors. Audits for plants. In retail sector He also felt that the use
item to indispensable frequency of its inventory automotive manufacturers, audits to count warehouse of drones will allow audit
business tool. He count data collection. for example, will use the stock the drones will work teams to focus on
estimated that the drone- The cloud-based asset drones to conduct an autonomously while using identifying areas of risk,
powered solutions market tracking platform, powered automated count of variable image and object rather than manually
had an estimated value of by an Internet of Things vehicles at manufacturing recognition tools such as capturing stock counts.
$127bn. (IoT) sensor network, will
Meanwhile, EY has just
announced a Global Proof
analyse inventory qualities
in real-time by reading
Computer says no?
Vodafone is extending its AI recruitment system to include
of Concept (POC) to Quick Response (QR),
senior managers and executives. Currently, only candidates
expand the use of drones barcode and rack labels,
for call centre and shop-floor roles are being asked to
in inventory observations, feeding this information
submit to video interviews, answering a standard
as part of its digital audit directly into EYs audit
questionnaire. A computer then looks for suitability based
programme. digital platform, which
on subtle facial cues and voice intonation. Only those who
The Big 4 firm said that connects to its 80,000
pass the computer test are put forward for interview by a
in order to enhance audit auditors.
real human being! About 50,000 applicants have already
quality this extensive pilot The POC will initially
gone down this route, and Vodafone is so pleased with the
project will use pioneering be used in both the
results it wants to expand the system.
industry technology to manufacturing and retail

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comment PQ

CONTENTS August 2017 The future belongs to you


News 28Your career The importance of Our front page headline this month is
08CIPFA support Upgrade to building your personal brand
institutes training offering Drones are coming to an audit near you.
30ICAEW spotlight Access
10Social mobility Grant arrangements for the exams Turn to our top news story on page 8 and
Thornton ranks top in the UK for 32AAT focus AQ2016 one year you will see CIPFA is launching a new virtual learning
social mobility on; and the exam results environment for its PQs. Accountancy is changing
12CIMA tops Institute is the 34Careers #1 How to deal with faster than many imagined, and how the bodies cope
favoured qualification for with these emerging issues in their syllabuses and
recruiting Big 4 firms failing at the interview stage
36Careers #2 Life at Triumph; support is going to be how they are ultimately judged
13Time to test yourself Check
to see if you are exam-ready and our social media round-up (CIPFA and EY are definitely ahead of the game). It
go to pq-go.com right now! 38Fun stuff and our giveaways was while we were discussing our ever-changing world with London
Features, etc The columnists South Bank Universitys top team that we hit upon the idea of an all-
06Mind your Ps&Qs AATs year Robert Bruce Professor David Flint, encompassing conference. It helps that they have a business school
goes from bad to worse; why we an example to us all 8 dean who is really switched on. So a date has been set for The Future
should welcome the robots; and
hurray for the humble pizza Prem Sikka Election outcome will of Accountancy: Success in a changing world, and a full programme is
put the heat on accountants 10 being put together (see page 23). LSBU wanted it to be free and we
14F8/P7 exams Rote learning is
simply not an option here Zoe Robinson Discover how you have places for 250, so please take a look and sign up. There really will
are motivated to learn 12 be something for everyone, whether you are a student, employer or
16CIMA case Top tutors talk you
through the August Operational Subscribe to PQ magazine teacher. This will be the ultimate networking event of the year.
case study Its FREE see page 32 or go to And dont forget to take a look at www.pq-go.com. We are adding new
17AAT Level 4 exams Tips on www.pqmagazine.com MCQs all the time (mainly AAT for now). They are a great way to see if
choosing your Level 4 options
ABC July 2015 June 2016 you are exam ready, and again is a free resource. We are good to you
19IFRS four-page pull-out Our 32,238
guide to the standards is sure to
prove an invaluable resource Something special
23LSBU conference Sign up for We have something special for you this month in the middle of the
a joint LSBU/PQ conference on magazine, in the form of our IFRS pull-out guide. A big thanks go to
the future of accountancy
Publishers statement: We send a
AVADO and the IFRS Foundation. Yes, we are giving you your very own
24P3/F3 exams Top advice from IFRS 1 to 17 revision guide. Our pull-out summarises the main
CIMAs Jackie Durham on how digital issue of the magazine to an
to pass these tough papers additional 9,788 requested readers principles of each standard at a high level and in non-technical
language. We also have the IAS 1 to 41 on file do you want those to
26ACCA examiners say Part Free to subscribers who fulfil our
two of our comprehensive appear in the magazine, too? Let me know what you think.
terms of control
round-up of what the examiners Graham Hambly, PQ magazine editor graham@pqaccountant.com
think about your efforts Annual subscription: 35 (50 overseas)

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PQ have your say

email graham@pqaccountant.com

Oh dear, AAT! assessment since 30 we the students seem to be sitting


There is little doubt that the AAT March 2017 may be an exam assessment that doesnt
has not had a happy year so far affected. seem fit for purpose. I havent
to say the least. The results were read anything about the problems
The problems highlighted in delayed to ensure all in any official journal (sorry if Ive
your last issue (PQ, July 2017) students were treated missed it).
concentrated on the Level 3 fairly, we were told, I think its time that the AAT
Advanced Diploma Synoptic and and that the AAT will came clean and told us where the
the fact that AAT got it wrong review all results problems lie. Who is responsible
with MDCL. But I have also heard released since the end for these errors? Has AAT invested
of problems with Advanced of March. enough in the system to make it
Bookkeeping and the Level 4 Students who had work, and how can they instil
synoptic. been deemed not yet confidence in what appears to be
On top of that came the news competent were then a failing exam process?
that the AAT had to regret to told not to resit, as any Name and address supplied
inform me that its quality assessment for the Management increase in marks could change The editor says: Its certainly not
assurance processes had Accounting: Budgeting unit at level their result. been a vintage year for the AAT,
identified an error within the 4, too. I was informed that the error Wow, what has happened at thats for sure. Of course in the
has now been corrected, but some AAT? The introduction of AQ2016 interest of fairness we would
students who have taken the has been a real dogs dinner, and welcome a response from AAT.

Our star letter writer wins a fantastic PQ memory stick!


Robots are welcome which seems to be everything well
I was interested to read your article anything that tastes good, that is.
The robots are coming in last So thanks for the advice. I cant
months PQ magazine (July 2017). stop because Im off to Dominos
You quote the report The Future for a large Neapolitan!
of Accountancy, saying that 96% Name and email address supplied.
of accountants asked said they
thought that the robots would be
among us by 2022. I was
surprised by that figure I would
have thought it would be 100%!
I need
pqjobs.co.uk

Back of the net


I loved your football front cover last
month, and it got me thinking.
Which accountancy body could put
together the best football team?
Has this ever happened?
Jack Langwirth, by email
The editor says: There are
accountants playing football as we
And Ive got news for the 4% of speak. The Manchester
doubters the robots are already Accountants Football League has
here. Vast amounts of what a two divisions Davyhulme Park sit
modern-day acountant does is top of the Premier League (KPMG
automated (and has been for a facing businesses, using our skills Hurray for pizza! are in First Division). There is a
good few years now). and acquired expertise (hopefully). I enjoyed your fun page story last London league, too. ACCA used to
Personally I welcome this weve We are becoming many of us time (PQ, July 2017) about how us run regular six-a-side tournaments,
been freed up from a lot of the trusted and valued advisers, rather exam revisers should be tucking which were very popular I am not
mind-numbing drudge work. This than mere number-crunchers. into takeaway food to help increase sure why that stopped. And I was
leaves us free to do what we do Heres the the future! our mental capacity. At last some once involved in a national
best; namely, offer creative CIMA recently qualified accountant, good news. Were always being tournament, which I seem to recall
solutions to the real problems by email lectured on whats bad for us was won by a team from MCASS.

PQ Magazine Unit 3a, Kingfisher Heights, 2 Bramwell Way, Royal Docks, London E16 2GQ | Phone: 020 7216 6444 | Email: graham@pqaccountant.com
Website: www.pqmagazine.co.uk | Editor/publisher: Graham Hambly graham@pqaccountant.com | Advertising manager: Polly Thrasivoulou polly@pqaccountant.com
Associate editor: Adam Riches | Art editor: Tim Parker | Subscriptions: dom@pqaccountant.com | Contributors: Robert Bruce, Prem Sikka, Carl Lygo,
Tony Kelly, Phil Gammon | Origination and print services by Classified Central Media
If you have any problems with delivery, or if you want to change your delivery address, please email dom@pqaccountant.com
Published by PQ Publishing PQ Publishing 2017
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PQ news

ROBERT
New virtual learning
There is also a clearer, more
streamlined pricing structure,
BRUCE offering everyone greater

environment is here
transparency when planning and
costing their accountancy training.
Heres to a The self-study package, for example,
full life well CIPFAs Education and Training face; web class; and self-study. comes in at just 3,100 for the
led Centre, CETC, is taking its study CIPFA is promising that whatever whole 12 papers. This is going to be
support to another level with the route you chose you will experience hard for any of other accountancy
launch of CIPFA Learning this month. the same familiar, high-quality CETC body or tuition provider to match.
CETCs new tuition. CETCs Nicola Campbell said the
virtual learning The online one- time is right for a more integrated
There is something wonderful about
environment Campbell: stop-shop approach approach. The new web classes, and
long lives. They enable us to see an
extraordinary unfurling of change and will become time is looks set to be a live interactive learning fit neatly
achievement. And they allow us to set available from right for winner as CIPFA with CIPFAs online exam system.
that change in the context of the 28 July, with more delivers all learning, Campbell explained that following
principles that remain unchanged. course integrated from training and the launch of online exams in 2016,
One such was Professor David enrolments approach learning plans, CETC has been working closely with
Flint, who died recently at the age of open on 17 workbooks, live and the CIPFA Student Network, employer
98. It is hard to take in, but he had July. on demand web and students to ensure it provides
only just started his days as a young PQs (and classes, the sort of study options to fit
trainee accountant when, less than a their presentations, video current student expectations. She
fortnight in, he went off to the war in employers) clips, discussion said PQs also needed to know that
1939. Appropriately, he served in the learning is easy and simple with
will in the future be able to choose forum and web links, to revision and
Royal Signals. Even then, as he went CIPFA.
from three study modes: face-to- assessment materials.
through the rest of his long life, he
was communicating in the clearest
and most efficient way.
His life as a revered Scottish
accountant covered everything from
KPMG settles US hiring discrimination case
KPMG in the US has agreed to pay Asian applications for positions at positions to the affected applicants
partner in a leading firm to Professor out $420,000 in back pay, interest KPMGs Short Hills office. The as they become available. KPMG
of Accounting at Glasgow University, and benefits to failed Asian agency claims KPMG violated an must also take steps to ensure its
and from educator and teacher to
applicants for audit jobs, to resolve executive order, which prohibits personnel practices, including its
President of ICAS. This is why he was
allegations of hiring discrimination. federal contractors from record-keeping and internal
so important. In those days, Scots
The agreement follows an discriminating in employment auditing procedures, meet legal
accountants were taught by senior
investigation by the US Labor based on race, colour or national requirements.
people in the profession. So an entire
culture grew up. People learned about Department, which found that from origin. Despite making the concessions
the technical side but they were October 2011 to March 2013 the In addition to back pay, the firm KPMG does not acknowledge any
imbued with the ethics and clarity of audit firm discriminated against 60 has promised to provide six liability in this case.
thought that would not let errant folk
get away with anything. And he tied
together the two sides of being an MORE PROBLEMS FOR AAT Graphs please!
The problems with the Level 3 synoptic and MDCL assessment are now Graphs are still important, according
accountant, sorting out the numbers
and seeking out the truth and sticking well documented, but it appears there have been more hiccups for AAT to the Performance Management
to it. Or as he himself put it: I believe with its exams. The association has told students and tutors that its quality examiner in her March Examiners
in academic education for assurance processes have found an error with the assessment for the Report. Although you wont be asked
accountants, and I believe in the Management Accounting: Budgeting unit at level 4. The AAT has, it says, to draw graphs, you can and will be
function of accounting as a vital force now sorted the problem, but some students who have taken the asked to interpret them. So do you
in society and I believe in auditing assessment since 30 March 2017 may be affected (see our letters page). know your CVP graphs, linear
two different subjects but both of them AAT said that due consideration will be given for any student who was programme graphs and decision
vital to our kind of democracy. impacted by this error and under no circumstances will assessment marks trees? The report said that F5 PQs
Robert Bruce is an decrease. seem to be struggling with the
award-winning writer on See page 32 for all the current AAT pass rates and the wealth of study numeric side, and good technique
accountancy for The Times support currently on offer from AAT. was less evident in March papers.

In brief
The future of accountancy How much for a prize? Appy days 30, the current ceiling for
PQ magazine has joined The percentage marks of the Small traders will soon be able contactless card transactions.
forces with London South Bank ACCA March prizewinners makes to take card payments from
University to provide readers with a interesting reading. The top student customers using an app on their Crackdown on crime
chance to look into the future with in the F5 paper, Rafael Sierra, mobile phone, rather than via a The government is hoping
a joint national accounting one-day managed to gain 98% in the Spring card terminal. Worldpay has criminals and terrorists will find it
conference: The Future of test the top mark for any winner. launched a pilot scheme to help harder to move money through the
Accountancy: Success in a He is closely followed by F7 sitter mircobusinesses with their UK financial system, thanks to new
changing world. Anyone working in Rita Lopatko, who was awarded payment processes. It means that rules which came into force on 26
accountancy or connected with the 97% for her paper. The P7 joint instead of having to purchase June. Businesses such as
sector is invited to join us at winners took the prize with 79%. cumbersome hardware business accountants, banks and estate
LSBUs Keyworth Centre on 23 UK students dominate the list, but owners will just need to download a agents now have to carry out
November. You can sign up for this there are also winners from Spain, free app. The downside is that stringent and targeted checks to
free event using Eventbrite by Italy, Sri Lanka, China, Pakistan, those using the app will only be make sure that money changing
going to www.lsbu.ac.uk/whats-on Ireland and Latvia. able to accept payments of up to hands is from a legitimate source.

8 PQ Magazine August 2017


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PQ news

PREM
SIKKA
Grant Thornton top CIMA down
Election
outcome will
for social mobility on numbers The CIMA student population
The number-one employer in the who successfully got a place on the shrunk for the second year in a row,
increase UK for social mobility is Grant firms school leaver or graduate according to its latest annual report.
pressure on Thornton. programmes in 2016 would have Despite this, the institute added
accountants Well, thats where Grant been excluded under the 33,604 new students in 2016, the
Thornton finished in the first- previous academic criteria. second-highest student recruitment
ever Social Mobility Index, Romanvitch stressed: year on record, and 12% higher
The outcome of the 2017 election
beating KPMG into second Investing in social than 2015.
marks a break from recent economic
policies. With the uncertainty of Brexit, place. Grant Thorntons mobility is a win-win and CIMA student numbers were up
many corporations are postponing CEO, Sacha Romanovitch a great example of significantly in four markets. In
their investment plans, which in turn (pictured) said the firm had business doing well by India, 2,504 students signed up, an
will slow economic growth and any started its social mobility journey doing good. increase of 245%. In Indonesia 667
recovery in wage levels. So three years ago. It has removed The top 10 firms named on the joined, an increase of 224% on
government will have to step up and academic barriers to entry and list were Grant Thornton, KPMG, 2015.
invest. The Conservative Party has stopped the emphasis on relevant Skanska, Standard Life, Deloitte, Meanwhile, in Sri Lanka 979 new
already downgraded the goal of work experience and extra- JP Morgan, PwC, Berwin Leighton students were acquired (up 33%)
eliminating the public borrowing curricular achievements. This Paisner, Morrison Supermarkets and in China 304 students opted
deficit. Labours election manifesto
meant nearly one in five of those and Enterprise Rent-A-Car. for CIMA (thats up 16%).
promised expenditure of 48.6bn to
Read our full review of all the
stimulate economic growth.
New economic policies are likely to annual reports next month.
sharpen focus on accountants because
no government can stimulate the
economy without sustained tax
What papers
revenues. These have been under
attack from accountants, especially should you sit?
the big firms. The accountancy bodies ACCA students need to be planning
have done little to check the tax their route to qualification now if
avoidance trade promoted by their they want to manage the
members. Despite critical court
changeover to the new Strategic
judgments, no accountancy firm has
been disciplined for selling tax Professional exams in September
avoidance schemes even when the 2018. Tutors were reminded at the
courts considered them to be unlawful. Global Learning Providers
Governments will be under pressure Conference that their PQs need to
to get tough on tax avoidance. The have passed both P1 and P3 to be
current Conservative government is exempt from the new Strategic
likely to impose statutory fines and Business Leader exam. There are
prosecutions for accountants involved now just four sittings left to achieve
in tax avoidance. Labour published a this.
10-page election manifesto on tax
ACCA also revealed that it plans
avoidance, which in addition to fines
to make the SBL case a CBE exam
and prosecutions will also force large
companies to publicly file their tax by September 2019. It is working
returns. If in office, it is likely to end with partner Pearson Vue to ensure
the regulatory powers enjoyed by this will happen.
accountancy bodies and transfer them Students can go online to see the
to new independent bodies. A Triumph: Meet the ACCA March P1 Global prizewinner, Katrina specimen paper and ACCA is
Dasantos, who studied with HTFT Partnership. She is pictured here providing examples of what good,
Prem Sikka is Emer itus between Jonathan Maddams, (left) from the ACCA and her boss Adam marginal and weak scripts look like.
Professor of Accounting Samples, the CFO of Triumph Motorcycles Ltd. Read all about Katrina in There is also guidance on how the
at the University of Essex our Life at section on page 36. paper will be marked.

In brief
New CGMA store Choice not an option students to answer certain Too bored to work
CIMA has launched its new ACCA has said that from questions in Section B. Boredom can affect even the
CGMA Store (www.cgmastore.com), September 2018 there will be no most studious of workers, and
giving students and members choice in the final level optional Was tax software to blame? worrying statistics from recruitment
access to a range of continuing papers questions. With pass rate The recent global cyber-attack firm CV-Library reveal that boredom
professional development percentages already in the low 30s that affected companies around the afflicts almost half (49%) of
resources through the Association many tutors are worried that the world may have started via corrupt accounting professionals. It means
of International Certified exams could become even harder updates on a piece of accountancy that some 55% are looking for
Professional Accountants. PQs can to pass. ACCA said it believes software, according to reports from something more interesting work-
choose from a variety of formats, performances will get better and the BBC. Reporter Jane Wakefield wise. Some one in five accountants
including online courses, video the move will mean students learn wrote: Fingers are increasingly admitted to feeling bored every day,
sessions, audio sessions and e- the whole syllabus rather than pointing to a piece of Ukrainian with another 30% saying they had
books to help them develop exactly trying to question spot. One tax-filing software, MERoc, as the that feeling on a weekly basis. Just
where they need to, and keep examiner was worried that tutors source of the infection. The 2% said they never felt bored by
ahead of emerging trends. might currently be pushing software company denies this. their job.

10 PQ Magazine July 2017


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PQ news

ZOE
Big 4 firms are
large number of tax trainees among
the top 75 firms. Some 6.9% (1,143)
ROBINSON of all trainees are studying the CIOT

fond of a CIMA
tax qualification, rather than an a
traditional accountancy one.
What Overall, the study found the
motivates ICAEW qualification still dominating
us? The Big 4 employ more CIMA CA students in contracts. the top 75, and it has 65.7%
trainees than ACCA, according to Outside the Big 4, CIMA trainees (10,885) of all the trainee posts.
the latest stats compiled by are rare in the top 75 accountancy ICAS trainees make up 15%,
Accountancy magazine. firms, although BDO was training mainly due to EYs 1,096 trainees.
A total of 774 CIMA trainees seven in 2016. The ACCA comes in third with a
After the horrendous news coverage work across PwC, EY, KPMG and Grant Thornton also stands out total of 1,168 PQs. Lovewell Blake
regarding the recent Grenfell Tower Deloitte, compared with just 361 on the Accountancy list with 81 (at number 38) has more ACCA
fire, one story in particular stood out ACCA trainees. The ICAEW has the CIPFA trainees. Moores Stephens trainees (22) than ICAEW (15). The
for me: the story of Ines Alves, who at largest number of trainees with the with two are the only other firm on same is true with Forrester Boyd
16 turned up for a GCSE exam in her
Big 4 with 7,734 students, with the list who are training CIPFA PQs. (number 43), which also has more
pyjamas, hours after she escaped
ICAS coming in second with 2,164 Another surprise might be the ACCA than ICAEW trainees.
from the blazing building clutching
her revision notes. Its an inspiring

Cheap wins
story of someone who was able to 3) Take a look at the Five
pick herself up and carry on moving Minutes with the Examining
forward. But how did she do it? What Team videos student who
motivated her to get up, tired and ACCA has unveiled four ways looked at these are 22% more
emotionally drained, to sit an exam? you can get cheap wins when likely to pass.
In 2010, Daniel Pink wrote Drive, it comes to passing the exams. 4) Use approved content
a book on human motivation. In it he Here they are: students who used these are
describes three types of motivation. 1) Read the Examiners Reports 24% more likely to pass.

IASBs IAS 12
The first, motivation 1.0, is what you students who use these are The source of these stats is
experience when your existence is 28% more likely to pass. the September 2016 post-exam
threatened. The so-called fight or student feedback survey, cross-
clarification
2) Read the Specimen exams
flight, this was all too evident on the referenced against the exam
students who use these are
night of 14 June. Motivation 2.0 results.
27% more likely to pass.
suggests that people are moved to The International Accounting
action by reward and punishment, the Standards Board has issued IFRIC

The CEO pay league


carrot and stick. 23 Uncertainty over Income Tax
But it's the last one that is most Treatments, to specify how to reflect
revealing. Motivation 3.0 states that
uncertainty in accounting for
people act when they are intrinsically
ICAEWs Michael Izza (pictured) is What is happening at CIMA is incomes taxes. The board explained
motivated to do so. Intrinsic
still sitting pretty as the top- less straightforward. We know that it may be unclear how tax law
motivation is an internal experience in
paid CEO among the Charles Tilley was replaced by applies to a particular transaction or
which one or more of three elements
need to present. Firstly, you have to accountancy bodies. Andrew Harding during the circumstance, or whether a taxation
feel in control (autonomy); secondly, He took home a cool year. If you take five authority will accept a companys
believe you can improve your skills 570,000 after a pay months of salary and add tax treatment.
(mastery); and, lastly, whatever youre rise of 16,000 in it up it all comes to IAS 12 Income Taxes specifies
doing it must have meaning and 2016. 242,000. However, the how to account for current and
purpose (purpose) for you. Next up comes ICAS annual report doesnt put a deferred tax, but not how to reflect
We can never know what motivated CEO Anton Colella, with a name next to the job title. the effects of uncertainty. IFRIC 23
Ines Alva that day, but the theory tidy sum of 416,000. This figure Finally, the AATs Mark Farrar provides requirements that add to
behind motivation is something we all includes a bonus of 105,000! was paid 179,000 following a the requirements in IAS 12 by
can harness to help move forward. CIPFA has, after years of PQ 5,000 pay rise. specifying how to reflect the effects
magazine campaigning, finally See our review of the annual of uncertainty in accounting for
Zoe Robinson is Learning and released Rob Whitemans salary. He reports in next months issue. ACCA income taxes.
Programmes Director at
was paid 259,166 for 2016 and releases its annual report later in The interpretation is effective
Kaplan Financial
235,093 in 2015. the year. from 1 January 2019.

FRC Italian probe prevent EU trade grinding to a halt after Brexit, scope of the investigation.The investigation into
The FRC has started a formal KPMG has warned. While Brexit secretary other members of the accountancy bodies is
investigation into PwCs audit David Davies believes there is little need for ongoing. Meanwhile, the three former Tesco
of the financial statements of transitional arrangements, KPMG has stressed directors charged with fraud are seeking to
BT Group plc. The that the current timescales look frankly have their cases dismissed, arguing that no
investigation covers the Big 4 unrealistic. KMPGs Bob Jones said once false accounting took place.
firms audit of the group from 2015 to 2017 there is some clarity on the customs
and relates to the scandal in the telecoms arrangements businesses will need a year to UK attractive to foreign workers
Italian division. Earlier this year, BT was forced design, build and test their systems. The UK remains an attractive place to live and
to write down the value of its Italian operation work, but could face challenges in retaining
by 530m because of 10-years of Tesco investigation closed large number of non-British workers, says
inappropriate behaviour. Big 4 rival KPMG The FRC has announced the closure of its Deloitte. Its study found 89% of non-British
replaced PwC as BTs auditor in June. investigation into the conduct of PwCs audit of workers say they find the UK quite attractive
Tesco plc. The executive counsel to the FRC or highly attractive as a work destination. For
Unrealistic Brexit timetable has concluded that there is not a realistic respondents based outside the UK, the UK
The UKs big businesses need at least a year prospect that a Tribunal would make an ranked as the most desirable place to work,
to prepare for new customer arrangements to adverse finding against PwC within the current with 57% placing it their top three

12 PQ Magazine August 2017


news PQ

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candidates is using vague phrases like performance
ACCA resources to help you
analytical procedures, check the relevant documentation ACCA is reminding PQs that its Exam sessions for those sitting the September
and in accordance with the relevant standard. These cannot Club Hub will help make revision and exams. On top of monthly live webinars
earn you marks in an exam at this level you must develop exam prep easier. The revamped with ACCA staff, students, members and
the point. She is also concerned with the lack of knowledge resource centre provides downloadable tuition providers, you can also access the
shown by some candidates. An error cannot simultaneously self-study pass guides, plus retake and ACCA library of exam support videos and
overstate assets and understate profits, she said. syllabus guides. All the information you on-demand webinars. The hub will be
It appears that candidates are continuing to take a linear need to plan and book your exams is regularly updated with new content.
approach and are not linking auditing to other topics. She also on hand. Another new service is downloadable
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PQ Magazine August 2017 13


PQ audit procedures spotlight

Why rote learning


will lead to failure are not relevant as they do not focus on
the specific issue.
Similarly, procedures that focus on
testing purchases are not relevant. The
scenario is clearly headed Trade
payables so the examiner requires
payables procedures not procedures that
test the purchase transaction. Purchases
are transactions which occur throughout
the year. Payables are balances
outstanding at the year-end. Therefore to
test the year-end payables balance
students must focus on the transactions
that have occurred near the year-end for
which payment has not yet been made.
A similar question was included on the
March/June 2016 F8 paper. The first part
of the scenario described an extensive
refurbishment that a client had carried
out to its restaurants. The refurbishment
Paula McGrath outlines the importance of you detailing the was financed via a share issue at a
appropriate audit procedures in your F8 and P7 answers premium of $1.6 million. The
requirement asked for substantive

A
common requirement in both transfer and cheque payment run was procedures in respect of:
the F8 and P7 exams is to made on 3 November 20X6. Some (i) Property, plant and equipment
suggest appropriate audit purchase invoices were received in this (ii) Equity
procedures to be performed. In both week and were recorded in the 20X6 In (i), relevant procedures would focus
papers the scenario will describe one or purchase ledger as well as the payment on testing the additions of new assets
more specific issues and audit run made on 3 November. The clients and disposal of the old assets. Any
procedures should focus on these issues. financial year ended on 31 October 20X6. procedures that test existing assets are
The examiners of both papers often The requirement asked students to not relevant as these do not form part of
comment that students tend to give a list describe substantive procedures the the refurbishment.
of rote-learned procedures that do not auditor should perform to obtain In (ii), relevant procedures would focus
focus on the issues in the scenario and sufficient and appropriate audit evidence on the share issue such as confirming
therefore do not score marks. in relation to the matter. the receipt of cash to the bank
A comment from the F8 Examiners In this scenario the issue relates to statements and recalculating the split
Report (September 2016) said: cut-off of trade payables. Audit between ordinary share capital and share
...candidates must strive to understand procedures should therefore focus on premium to be included in the financial
substantive procedures. Learning a testing the assertion of cut-off. statements. Any procedures which once
generic list of tests will not translate to Relevant answers include: gain focus on the refurbishment itself are
exam success procedures must be Select a sample of purchase invoices not relevant as these were required in
tailored to the specific requirements of received between the period of 1 and 7 part (i).
the question. This comment was November, ascertain through reviewing
repeated again in the December 2016 goods received notes (GRNs) if the goods Summary
Examiners Report. were received pre or post year end, if Audit procedures are a significant part of
To score well students must be able to post year end, then confirm that they the audit process as they are used to
suggest audit procedures that are have been excluded from the ledger or obtain sufficient appropriate audit
relevant to the issue or balance being follow through to the correcting journal evidence required to form a conclusion
tested. In addition, the procedure must entry. on the financial statements. They will
properly describe how the audit evidence Review after date payments; if they feature in every audit exam. Audit exams
is to be obtained and for what purpose. relate to the current year then follow at both levels require application of
The September 2016 F8 exam paper through to the purchase ledger or knowledge to a scenario. It is essential
contained the following scenario: accrual listing to ensure they are that students are able to suggest
recorded in the correct period. procedures which are relevant to the
Trade payables Obtain supplier statements and reconcile specific circumstances of the scenario
The finance director of Spider Spirals Co these to the purchase ledger balances, rather than giving rote-learned
has informed you that at the year-end the and investigate any reconciling items. procedures from the text book. PQ
purchase ledger was kept open for one Procedures in relation to payables in Paula McGrath, F8 and P7 Content
week longer than normal as a large bank general, or which test other assertions, Specialist, Kaplan Publishing

14 PQ Magazine August 2017


am Need additional
support for
your exams?

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PQ CIMA case study

Make sure you are on


Statement of Financial Position.
Its obvious from the first line of the
Statement of Financial Position that
Premium Trains has a fast-depreciating

the right track


stock of trains. The overall value of
property, plant and equipment has
declined by just over T$5 million in 2017.
We know that Premium Trains owns 15
of the 25 train units it operates and that
their own trains have been in use since
1991. We also know from various articles
at the end of the pre-seen that customers
value modern trains and those
Tutors from Viva Financial companies that have invested in modern
Tuition take you on a ride train units (e.g. East Trains and
Northstar) have reaped the benefits of
through the August CIMA enhanced custom and market share.
Operational case study Current assets on the other hand, have
seen an overall increase of 31% in 2017
with trade receivables and cash
accounting for most of this upward
movement. Given that payables have
fallen by T$580,000 and we have a
change in the current ratio (current
assets/current liabilities) from 1.8 in 2016
to 2.5 in 2017 signalling a liquid, if
financially conservative company.
Premium Trains needs to take a little care
with its receivables figure.
We know that Tawland Rail, the
government-run agency that manages
Tawland's tracks and stations, often ends
up settling amounts due to Premium
Trains 60 days after payments have been

T
he August 2017 Operational Its a little frustrating that we are not processed, whereas Premium Trains
Case Study introduces us to presented with more detail on the typically settles amounts due to its own
Premium Trains, a train individual increases for each of those suppliers 30 days after the invoices are
operating company in the fictional individual costs but it would not be issued. The fact that the cash position
country of Tawland. In this article, we will surprising to see that train maintenance has more than doubled in the last year
walk you through the main financial costs are becoming problematic given the again points to a company that is holding
statements given in the pre-seen fact that the companys stock of own back on investments.
materials by CIMA. Well look at some of trains is over 25 years old.
the most telling movements over the past One would also imagine that insurance Limited control
year as well as analysing some key costs for an older stock of trains more In summary, Premium Trains is likely to
financial ratios. prone to breaking down and presenting struggle in generating additional revenues
Starting with the Statement of Profit or faults etc would be quite high. We know in the short to mid-term due to the fact
Loss and Other Comprehensive Income that management of the on-board cafes that it cannot expand beyond the two
for 2017 and we note that while revenues inventory lacks rigour, with staff simply routes it has the franchise rights to run.
have risen 3% since 2016, operating casting an eye over existing inventory and Moreover, it has limited control over its
costs have advanced more rapidly. The applying their own subjective judgement pricing, with Tawland Rail approving or
fact that operating costs increased by just in re-ordering inventory when they deem rejecting proposed prices. All of this
over 6% in 2017 means that net profit it to be too low. So its likely that COGs for means that in order to improve profits
shows a 27% decline in the current year. this area has been rising recently. Premium Trains needs to control its costs
The different elements that make up Not surprisingly, profitability ratios have more effectively. It would also be wise for
operating costs are detailed underneath declined between 2016 and 2017. Its Premium Trains to either invest in the
the income statement and we can see difficult to calculate the gross profit purchase of newer trains or simply lease
that almost 74% of the total margin ([gross profit/revenues] x 100%) more of its trains (we are told in the pre-
T$13,046,000 increase in operating costs as we cannot isolate an overall cost of seen that its leased trains are much more
comes from one element, the goods sold figure. We can see that the modern).
ambiguously titled other external operating profit margin ([operating The company is in danger of falling
charges. profit/revenues] x 100%) has fallen from into a vicious cycle where a lack of
10% in 2016 to 7% in 2017. investment leads to lower revenues and
External charges Furthermore, return on capital profits, which in turn means there is less
We ascertain from the budget information employed ([profit before interest & to invest in much-needed non-current
for 2018 presented later on in the pre- tax/capital employed] x 100%) has assets. PQ
seen, that other external charges are declined from 56% in 2016 to 40% in An accredited CIMA Global Learning
made up of such items as train leasing 2017. This decline is due to the fact that Partner, VIVA Financial Tuition is a
costs, train maintenance costs, obviously operating profit has declined leading provider of CIMA study
insurance, marketing expenses and but is also because Premium Trains has solutions, specialising in creating high-
administrative expenses, as well as the taken little effort to expand its non- quality, affordable materials for the
cost of goods sold relating to the on- current asset base in the past year. This Case Study exam. For more go to
board cafe. leads us nicely to analysis of the www.vivatuition.com

16 PQ Magazine August 2017


AAT Level 4 PQ

TAX OR NOT?
are only seeing part of the calculation.
If you are doing both units it makes
sense to do Personal Tax first, as the
understanding of the big picture you get
here will help you put things in Business
Tax into context.
Experienced tutor Aidan Elliss So what if you only want to do one?
Well, in addition to income tax Personal
offers some tips on choosing Tax covers national insurance for an
your AAT Level 4 tax options employed person and inheritance tax,
and also looks at ethical considerations in

C
ongratulations! Youve made it lots of detail.
through to Level 4, and now its Business Tax covers NI for the self-
time to pick your options. employed and Corporation Tax, but looks
Should you do the tax units? Should you at ethical considerations in less detail. It
do both or just one? also covers a lot of administration, for
Tax isnt easy, there are a lot of example tax returns, deadlines (when
complex rules to understand and learn, these should be filed) and tax paid (and
but the actual assessments are fairly the penalties that would arise if these
straightforward. deadlines are missed). It also looks into
Theres a lot to be said for doing both the capital gains tax reliefs that are
units, as the same capital gains tax rules available for businesses.
are tested in both. In Personal Tax you Under the old syllabus we could
will study the income tax computation. confidently say Personal Tax was an
Here we list the different sources of easier option than Business Tax it was a
income, total them, deduct allowances lot shorter! However, under the new
then calculate tax. The calculation of syllabus Personal Tax now includes
each source of income has its own set of inheritance tax and theres lots to cover
rules. In Personal Tax you will study here. On balance, though, Personal Tax is
employment income, property income, probably still a smaller syllabus.
savings and dividend income. calculation of income for a self-employed So the choice is yours, depending on
However, you dont get to see how person is a key part of the syllabus. your personal interest and what you think
income from self-employment for a sole However, the rest of the income tax will be useful in your career. PQ
trader or partner is calculated. If you do computation is not on the Business Tax Aidan Ellis is an AAT tutor at BPP
Business Tax that completes the jigsaw syllabus, so if you just do this unit you Professional Education

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PQ Magazine August 2017 17


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IFRS pull-out PQ

Here is your handy scope of IFRS 9. Furthermore, it


pocket guide to all the does not address accounting by
policyholders.
IFRS, brought to you by IFRS 4 exempts an insurer
AVADO and the IFRS temporarily (ie until it adopts IFRS
17) from some requirements of
Foundation, no less other Standards, including the
requirement to consider the
IFRS 1 First-time Adoption of Conceptual Framework in selecting
International Financial Reporting accounting policies for insurance
Standards contracts. However, IFRS 4:
IFRS 1 requires an entity that is Prohibits provisions for possible
adopting IFRS Standards for the claims under contracts that are not
first time to prepare a complete set in existence at the end of the
of financial statements covering its reporting period (such as
first IFRS reporting period and the catastrophe and equalisation
preceding year. The entity uses the provisions);
same accounting policies Requires a test for the adequacy
throughout all periods presented in of recognised insurance liabilities
its first IFRS financial statements. and an impairment test for
Those accounting policies must reinsurance assets; and
comply with each Standard Requires an insurer to keep
effective at the end of its first IFRS insurance liabilities in its statement
reporting period. IFRS 1 provides
limited exemptions from the
requirement to restate prior periods
Your guide to the IFRS of financial position until they are
discharged or cancelled, or they
expire, and to present insurance
in specified areas in which the cost payment transactions, including bargain purchase) in profit or loss liabilities without offsetting them
of complying with them would be expenses associated with immediately. The acquirer discloses against related reinsurance assets.
likely to exceed the benefits to transactions in which share options information that enables users to A 2016 amendment to IFRS 4
users of financial statements. IFRS are granted to employees. evaluate the nature and financial addresses some consequences of
1 also prohibits retrospective effects of the acquisition. applying IFRS 9 before an entity
application of IFRS Standards in IFRS 3 Business Combination adopts IFRS 17.
some areas, particularly when IFRS 3 establishes principles and FRS 4 Insurance Contracts
retrospective application would requirements for how an acquirer IFRS 4 Insurance Contracts will be IFRS 5 Non-current Assets Held
require judgements by in a business combination: superseded by IFRS 17 Insurance for Sale and
management about past conditions recognises and measures in its Contracts. Discontinued Operations
after the outcome of a particular financial statements the assets and IFRS 4 specifies some aspects of IFRS 5 requires:
transaction is already known. liabilities acquired, and any interest the financial reporting for insurance a non-current asset or disposal
IFRS 1 requires disclosures that in the acquiree held by other contracts by any entity that issues group to be classified as held for
explain how the transition from parties; such contracts and has not yet sale if its carrying amount will be
previous GAAP to IFRS Standards recognises and measures the applied IFRS 17. recovered principally through a sale
affected the entitys reported goodwill acquired in the business An insurance contract is a transaction instead of through
financial position, financial combination or a gain from a contract under which one party continuing use.
performance and cash flows. bargain purchase; and (the insurer) accepts significant assets held for sale to be
determines what information to insurance risk from another party measured at the lower of the
IFRS 2 Share-based Payment disclose to enable users of the (the policyholder) by agreeing to carrying amount and fair value less
IFRS 2 specifies the financial financial statements to evaluate the compensate the policyholder if a costs to sell.
reporting by an entity when it nature and financial effects of the specified uncertain future event depreciation of an asset to cease
undertakes a share-based payment business combination. (the insured event) adversely when it is held for sale.
transaction, including the issue of The core principles in IFRS 3 are affects the policyholder. separate presentation in the
share options. It requires an entity that an acquirer measures the cost IFRS 4 applies to all insurance statement of financial position of an
to recognise share-based payment of the acquisition at the fair value of contracts (including reinsurance asset classified as held for sale and
transactions in its financial the consideration paid, allocates contracts) that an entity issues and of the assets and liabilities included
statements, including transactions that cost to the acquired to reinsurance contracts that it within a disposal group classified as
with employees or other parties to identifiable assets and liabilities on holds, except for specified held for sale.
be settled in cash, other assets or the basis of their fair values, contracts covered by other separate presentation in the
equity instruments of the entity. It allocates the rest of the cost to Standards. It does not apply to statement of comprehensive
requires an entity to reflect in its goodwill and recognises any excess other assets and liabilities of an income of the results of
reported profit or loss and financial of acquired assets and liabilities insurer, such as financial assets discontinued operations.
position the effects of share-based over the consideration paid (a and financial liabilities within the Continued on page 20

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PQ Magazine August 2017 19


PQ IFRS pull-out

Your guide payable) and those that have many financial


instruments (for example, a financial institution
most of whose assets and liabilities are financial
financial asset, the entity classifies it on the
basis of the entitys business model for
managing the asset and the assets contractual

to the IFRS
instruments). cash flow characteristics, as follows:
Amortised cost a financial asset is measured
IFRS 8 Operating Segments at amortised cost if both of the following
IFRS 8 requires an entity whose debt or equity conditions are met:
Continued from page 19 securities are publicly traded to disclose the asset is held within a business model
IFRS 6 Exploration for and Evaluation of information to enable users of its financial whose objective is to hold assets in order to
Mineral Resources statements to evaluate the nature and financial collect contractual cash flows; and
IFRS 6 specifies some aspects of the financial effects of the different business activities in the contractual terms of the financial asset
reporting for costs incurred for exploration for which it engages and the different economic give rise on specified dates to cash flows that
and evaluation of mineral resources (for environments in which it operates. are solely payments of principal and interest on
example, minerals, oil, natural gas and similar It specifies how an entity should report the principal amount outstanding.
non-regenerative resources), as well as the costs information about its operating segments in Fair value through other comprehensive
of determination of the income financial assets are
technical feasibility and classified and measured at fair
commercial viability of value through other
extracting the mineral comprehensive income if they
resources. IFRS 6: are held in a business model
permits an entity to develop
an accounting policy for
A Better Way to ACCA whose objective is achieved by
both collecting contractual cash
exploration and evaluation
assets without specifically
Award-winning, expert tutors flows and selling financial
assets.
considering the requirements of Fair value through profit or
Available to you online, by phone and email
paragraphs 1112 of IAS 8 loss any financial assets that
Accounting Policies, Changes are not held in one of the two
in Accounting Estimates and business models mentioned are
Errors. Thus, an entity adopting measured at fair value through
IFRS 6 may continue to use the profit or loss.
accounting policies applied When, and only when, an
immediately before adopting entity changes its business
IFRS 6. model for managing financial
requires entities recognising assets it must reclassify all
exploration and evaluation affected financial assets.
assets to perform an Financial liabilities: All financial
impairment test on those assets Paul Kirkwood Cat Hill Caron Betts liabilities are measured at
when facts and circumstances amortised cost, except for
suggest that the carrying financial liabilities at fair value
amount of the assets may through profit or loss. Such
exceed their recoverable I never expected such great liabilities include derivatives
amount. support from an online tutor. (other than derivatives that are
varies the recognition of financial guarantee contracts or
impairment from that in IAS 36 Grace Herron, ACCA Student are designated and effective
Impairment of Assets but hedging instruments), other
measures the impairment in accordance with annual financial statements and in interim liabilities held for trading and liabilities that an
that Standard once the impairment is identified. financial reports. It also sets out requirements entity designates to be measured at fair value
for related disclosures about products and through profit or loss (see fair value option
IFRS 7 Financial Instruments: Disclosures services, geographical areas and major below).
IFRS 7 requires entities to provide disclosures in customers. After initial recognition, an entity cannot
their financial statements that enable users to reclassify any financial liability.
evaluate: IFRS 9 Financial Instruments Fair value option: An entity may, at initial
the significance of financial instruments for the IFRS 9 is effective for annual periods beginning recognition, irrevocably designate a financial
entitys financial position and performance. on or after 1 January 2018, with early asset or liability that would otherwise have to be
the nature and extent of risks arising from application permitted. measured at amortised cost or fair value through
financial instruments to which the entity is IFRS 9 specifies how an entity should classify other comprehensive income to be measured at
exposed during the period and at the end of the and measure financial assets, financial liabilities, fair value through profit or loss if doing so would
reporting period, and how the entity manages and some contracts to buy or sell non-financial eliminate or significantly reduce a measurement
those risks. The qualitative disclosures describe items. or recognition inconsistency (sometimes referred
managements objectives, policies and IFRS 9 requires an entity to recognise a to as an accounting mismatch) or otherwise
processes for managing those risks. The financial asset or a financial liability in its result in more relevant information.
quantitative disclosures provide information statement of financial position when it becomes Impairment: Impairment of financial assets is
about the extent to which the entity is exposed party to the contractual provisions of the recognised in stages:
to risk, based on information provided internally instrument. At initial recognition, an entity Stage 1 as soon as a financial instrument is
to the entitys key management personnel. measures a financial asset or a financial liability originated or purchased, 12-month expected
Together, these disclosures provide an overview at its fair value plus or minus, in the case of a credit losses are recognised in profit or loss and
of the entitys use of financial instruments and financial asset or a financial liability not at fair a loss allowance is established. This serves as a
the exposures to risks they create. value through profit or loss, transaction costs proxy for the initial expectations of credit losses.
IFRS 7 applies to all entities, including entities that are directly attributable to the acquisition or For financial assets, interest revenue is
that have few financial instruments (for example, issue of the financial asset or the financial calculated on the gross carrying amount (ie
a manufacturer whose only financial instruments liability. without deduction for expected credit losses).
are cash, accounts receivable and accounts Financial assets: When it first recognises a Stage 2 if the credit risk increases

20 PQ Magazine August 2017


IFRS pull-out PQ

significantly and is not considered low, full establishes control as the basis for consolidation; IFRS 13 Fair Value Measurement
lifetime expected credit losses are recognised in sets out how to apply the principle of control to IFRS 13 defines fair value, sets out a framework
profit or loss. The calculation of interest revenue identify whether an investor controls an investee for measuring fair value, and requires
is the same as for Stage 1. and therefore must consolidate the investee; disclosures about fair value measurements.
Stage 3 if the credit risk of a financial asset sets out the accounting requirements for the It applies when another Standard requires or
increases to the point that it is considered preparation of consolidated financial statements; permits fair value measurements or disclosures
credit-impaired, interest revenue is calculated and about fair value measurements (and
based on the amortised cost (ie the gross defines an investment entity and sets out an measurements based on fair value, such as fair
carrying amount less the loss allowance). exception to consolidating particular subsidiaries value less costs to sell), except in specified
Financial assets in this stage will generally be of an investment entity. circumstances in which other Standards govern.
assessed individually. Lifetime expected credit Consolidated financial statements are financial For example, IFRS 13 does not specify the
losses are recognised on these financial assets. statements that present the assets, liabilities, measurement and disclosure requirements for
Hedge accounting: The objective of hedge equity, income, expenses and cash flows of a share-based payment transactions, leases or
accounting is to represent, in the financial parent and its subsidiaries as those of a single impairment of assets. Nor does it establish
statements, the effect of an entitys risk economic entity. disclosure requirements for fair values related to
management activities that use financial employee benefits and retirement plans.
instruments to manage exposures arising from IFRS 11 Joint Arrangements IFRS 13 defines fair value as the price that
particular risks that could affect profit or loss or IFRS 11 establishes principles for financial would be received to sell an asset or paid to
other comprehensive income. reporting by entities that have an interest in transfer a liability in an orderly transaction
Hedge accounting is optional. An entity arrangements that are controlled jointly (joint between market participants at the measurement
applying hedge accounting designates a hedging arrangements). date (an exit price). When measuring fair value,
relationship between a hedging instrument and A joint arrangement is an arrangement of an entity uses the assumptions that market
a hedged item. For hedging relationships that which two or more parties have joint control. participants would use when pricing the asset or
meet the qualifying criteria in IFRS 9, an entity Joint control is the contractually agreed sharing the liability under current market conditions,
accounts for the gain or loss on the hedging of control of an arrangement, which exists only including assumptions about risk. As a result, an
instrument and the hedged item in accordance when decisions about the relevant activities (ie entitys intention to hold an asset or to settle or
with the special hedge accounting provisions of activities that significantly affect the returns of otherwise fulfil a liability is not relevant when
IFRS 9. the arrangement) require the unanimous measuring fair value.
IFRS 9 identifies three types of hedging consent of the parties sharing control. IFRS 11
relationships and prescribes special accounting classifies joint arrangements into two types IFRS 14 Regulatory Deferral Accounts
provisions for each: joint operations and joint ventures: IFRS 14 prescribes special accounting for the
fair value hedge: a hedge of the exposure to in a joint operation, the parties that have joint effects of rate regulation. Rate regulation is a
changes in fair value of a recognised asset or control of the arrangement (joint operators) have legal framework for establishing the prices that a
liability or an unrecognised firm commitment, or rights to particular assets, and obligations for public utility or similar entity can charge to
a component of any such item, that is particular liabilities, relating to the arrangement; customers for regulated goods or services.
attributable to a particular risk and could affect and Rate regulation can create a regulatory
profit or loss. in a joint venture, the parties that have joint deferral account balance. A regulatory deferral
cash flow hedge: a hedge of the exposure to control of the arrangement (joint venturers) have account balance is an amount of expense or
variability in cash flows that is attributable to a rights to the net assets of the arrangement. income that would not be recognised as an
particular risk associated with all, or a IFRS 11 requires a joint operator to recognise asset or liability in accordance with other
component of, a recognised asset or liability and measure its share of the assets and Standards, but that qualifies to be deferred in
(such as all or some future interest payments on liabilities (and recognise the related revenues accordance with IFRS 14, because the amount
variable-rate debt) or a highly probable forecast and expenses) in accordance with IFRS is included, or is expected to be included, by a
transaction, and could affect profit or loss. Standards applicable to the particular assets, rate regulator in establishing the price(s) that an
hedge of a net investment in a foreign liabilities, revenues and expenses. entity can charge to customers for rate-regulated
operation as defined in IAS 21. When an entity A joint venturer accounts for its interest in the goods or services.
first applies IFRS 9, it may choose to continue to joint venture using the equity method (see IAS IFRS 14 permits a first-time adopter within its
apply the hedge accounting requirements of IAS 28). scope to continue to account for regulatory
39, instead of the requirements in IFRS 9, to all deferral account balances in its IFRS financial
of its hedging relationships. IFRS 12 Disclosure of Interests in statements in accordance with its previous GAAP
Other Entities when it adopts IFRS Standards. However, IFRS
IFRS 10 Consolidated Financial Statements IFRS 12 requires an entity to disclose 14 introduces limited changes to some previous
IFRS 10 establishes principles for presenting information that enables users of its financial GAAP accounting practices for regulatory deferral
and preparing consolidated financial statements statements to evaluate: account balances, which are primarily related to
when an entity controls one or more other the nature of, and risks associated with, its the presentation of those balances.
entities. IFRS 10: interests in a subsidiary, a joint arrangement, an
requires an entity (the parent) that controls associate or an unconsolidated structured entity; IFRS 15 Revenue from Contracts with
one or more other entities (subsidiaries) to and Customers
present consolidated financial statements; the effects of those interests on its financial IFRS 15 is effective for annual reporting periods
defines the principle of control, and position, financial performance and cash flows. Continued on page 22

A Better Way to ACCA


More engaging, bite-size
content at your ngertips
www.avadolearning.com/pq

PQ Magazine August 2017 21


PQ IFRS pull-out

Your guide IFRS 17 is effective for annual reporting periods


beginning on or after 1 January 2021, with
earlier application permitted as long as IFRS 9

to the IFRS
and IFRS 15 are also applied.
Insurance contracts combine features of both

Continued from page 21


A Better Way a financial instrument and a service contract. In
addition, many insurance contracts generate
cash flows with substantial variability over a long
beginning on or after 1 January 2018, with
earlier application permitted.
to ACCA period. To provide useful information about
these features, IFRS 17:
IFRS 15 establishes the principles that an entity combines current measurement of the future
applies when reporting information about the cash flows with the recognition of profit over the
Call our expert advisors now
nature, amount, timing and uncertainty of period that services are provided under the
revenue and cash flows from a contract with a for a free consultation: contract;
customer. Applying IFRS 15, an entity 020 7173 5685 presents insurance service results (including
recognises revenue to depict the transfer of presentation of insurance revenue) separately
promised goods or services to the customer in from insurance finance income or expenses;
an amount that reflects the consideration to www.avadolearning.com/pq and
which the entity expects to be entitled in requires an entity to make an accounting
exchange for those goods or services. of low value. A lessee is required to recognise a policy choice of whether to recognise all
To recognise revenue under IFRS 15, an right-of-use asset representing its right to use insurance finance income or expenses in profit
entity applies the following five steps: the underlying leased asset and a lease liability or loss or to recognise some of that income or
identify the contract(s) with a customer. representing its obligation to make lease expenses in other comprehensive income.
identify the performance obligations in the payments. The key principles in IFRS 17 are that an
contract. Performance obligations are promises A lessee measures right-of-use assets similarly entity:
in a contract to transfer to a customer goods or to other non-financial assets (such as property, identifies as insurance contracts those
services that are distinct. plant and equipment) and lease liabilities contracts under which the entity accepts
determine the transaction price. The similarly to other financial liabilities. As a significant insurance risk from another party (the
transaction price is the amount of consideration consequence, a lessee recognises depreciation policyholder) by agreeing to compensate the
to which an entity expects to be entitled in of the right-of-use asset and interest on the policyholder if a specified uncertain future event
exchange for transferring promised goods or lease liability. (the insured event) adversely affects the
services to a customer. If the consideration The depreciation would usually be on a policyholder;
promised in a contract includes a variable straight-line basis. In the statement of cash separates specified embedded derivatives,
amount, an entity must estimate the amount of flows, a lessee separates the total amount of distinct investment components and distinct
consideration to which it expects to be entitled cash paid into principal (presented within performance obligations from the insurance
in exchange for transferring the promised goods financing activities) and interest (presented contracts;
or services to a customer. within either operating or financing activities) in divides the contracts into groups that it will
allocate the transaction price to each accordance with IAS 7. recognise and measure;
performance obligation on the basis of the Assets and liabilities arising from a lease are recognises and measures groups of insurance
relative stand-alone selling prices of each initially measured on a present value basis. The contracts at:
distinct good or service promised in the contract. measurement includes non-cancellable lease (i) a risk-adjusted present value of the future
recognise revenue when a performance payments (including inflation-linked payments), cash flows (the fulfilment cash flows) that
obligation is satisfied by transferring a promised and also includes payments to be made in incorporates all of the available information
good or service to a customer (which is when optional periods if the lessee is reasonably about the fulfilment cash flows in a way that is
the customer obtains control of that good or certain to exercise an option to extend the lease, consistent with observable market information;
service). A performance obligation may be or not to exercise an option to terminate the plus (if this value is a liability) or minus (if this
satisfied at a point in time (typically for promises lease. The initial lease asset equals the lease value is an asset).
to transfer goods to a customer) or over time liability in most cases. (ii) an amount representing the unearned profit
(typically for promises to transfer services to a The lease asset is the right to use the in the group of contracts (the contractual service
customer). For a performance obligation underlying asset and is presented in the margin).
satisfied over time, an entity would select an statement of financial position either as part of recognises the profit from a group of insurance
appropriate measure of progress to determine property, plant and equipment or as its own line contracts over the period for which the entity
how much revenue should be recognised as the item. provides insurance cover, and as the entity is
performance obligation is satisfied. IFRS 16 substantially carries forward the released from risk. If a group of contracts is or
lessor accounting requirements in IAS 17 becomes loss-making, an entity recognises the
IFRS 16 Leases Leases. Accordingly, a lessor continues to loss immediately;
IFRS 16 is effective for annual reporting periods classify its leases as operating leases or finance presents separately insurance revenue (that
beginning on or after 1 January 2019, with leases, and to account for those two types of excludes the receipt of any investment
earlier application permitted as long as IFRS 15 leases differently. component), insurance service expenses (that
is also applied. IFRS 16 replaces IAS 17 effective 1 January excludes the repayment of any investment
The objective of IFRS 16 is to report 2019, with earlier application permitted. IFRS 16 components) and insurance finance income or
information that (a) faithfully represents lease has the following transition provisions: expenses; and
transactions and (b) provides a basis for users of existing finance leases: continue to be treated discloses information to enable users of
financial statements to assess the amount, as finance leases. financial statements to assess the effect that
timing and uncertainty of cash flows arising from existing operating leases: option for full or contracts within the scope of IFRS 17 have on
leases. To meet that objective, a lessee should limited retrospective restatement to reflect the the financial position, financial performance and
recognise assets and liabilities arising from a requirements of IFRS 16. cash flows of an entity.
lease. IFRS 17 includes an optional simplified
IFRS 16 introduces a single lessee accounting IFRS 17 Insurance Contracts measurement approach, or premium allocation
model and requires a lessee to recognise assets The following summary is based on a near-final approach, for simpler insurance contracts. PQ
and liabilities for all leases with a term of more draft of IFRS 17. IFRS 17 was issued in May PQ magazine would like to thank the IFRS
than 12 months, unless the underlying asset is 2017. Foundation for the use of its material

22 PQ Magazine August 2017


LSBU Conference PQ

The future of accountancy


London South Bank University and PQ join forces to host a
one-day conference looking at the future of the profession

W
hat skills will you need in the
future to be a successful
accountant? The landscape
is ever-changing, so PQ magazine
decided to get together with London
South Bank University to try to provide
some of the answers!
Our free one-day conference will have
four streams running though the day,
where you will be able to mix and match
the subjects that interest you. They are
Going Digital; Own Your Career: Lets Get money laundering and leases.
Technical; and Employer Advice. So how do you sign up? Well, through
Our going digital room will look at Eventbrite of course. Just go to
developments in the cloud, big data and www.lsbu.ac.uk/whats-on and drill down
Making Tax Digital. to the 23 November the date of the
Over at the career room we will discuss conference.
creating your own brand, how to get All PQ and NQ readers, and anyone
headhunted and setting up your own connected with the accountancy sector,
business. are welcome to sign up. The PQ team will
The employer room will home in on of course all be there, too.
apprenticeships, the changing skills set, Keep an eye on future editions of PQ
and staff wellbing. magazine as we unveil some of the
We havent forgotten the technical experts who will give you their take on
stuff, either. In our technical room we are what the future will hold. The event will
running seminars on topics including take place at London South Bank
crowd funding, intellectual property, University. PQ

For accounting professionals of any seniority


working in all sectors.

Expect expert speakers from leading accounting


bodies and organisations, touching upon topics
such as careers, technology in the accounting
space, and the impact that digital is having on
the industry.

Speaker topics and areas:


Digital accounting: sage and big data
Career enhancing: how to get headhunted,
skills for today, your personal brand
Employer focus: apprenticeships, skill sets
for today, wellbeing of staff

This is a free to attend event, but we encourage


National accounting conference you to sign up today, as spaces are limited
and are expected to sell-out quickly.
23rd November 2017
For more information please visit
9am-7pm
www.lsbu.ac.uk/whats-on
Keyworth Centre, LSBU
In association with PQ Magazine
Sign up today

PQ Magazine August 2017 23


PQ CIMA exams

How to pass P3 & F3


P
lease dont get too excited by CIMAconnect, which I have condensed
the title of this short article! into the following approach:
Sadly, I dont have a magic Dont get stuck on long/complex
wand, or a password that will guarantee questions and/or those that you can
success. However, I can offer a little immediately see. Cover topics you are
advice and guidance, including some tips less confident about (I know there
from successful students. shouldnt be any of those if youve
P3 and F3 are challenging exams, but covered the syllabus in full but we will
they are do-able as the pass rates show always have weaker areas!).
the P3 pass rate to March 2017 was Skip any of the above as there is a
79%, with 57% first-time passes; for F3 review incomplete option at the end of
the figures are 78% overall and 57% the test, which means you dont waste
first-time passes. Better still, these figures time but can come back to questions
are slightly up on previous months. youve skipped very easily.
As with all objective test exams, Learn (by practise) how to scan
knowing the syllabus inside out and really questions to see if they are going to be
understanding and being able to apply challenging for you. Read the first part of
models and concepts is essential. the question so that you know the topic,
However, to give yourself the best chance then skip to the actual requirement and
of success you need good time see what is being asked and note any
management, too. figures provided. Sometimes you dont
I picked up some excellent advice from need all the information in the question
Monika, a successful F3 student (its also to answer it if its a topic/model you are
relevant for P3, too). Read it before you CIMAs Jackie studies before you have consolidated very familiar with. Alternatively, it may be
sit (or re-take P3). Here it is: your learning, as this can give you a false one you save for later.
Know the book inside out I only use Durham has sense of confidence and lead to Learn (from experience) your strengths
Kaplan books, the study text and revision puts together disappointment in the exam. Ive covered and weaknesses, so you need to know
kit nothing else, by self-study. And by the perils of practice questions in a where to practise. This may be from
inside out I mean inside out. I ended up some top CIMAconnect blog and a previous article practice exams or previous attempts at
going through the whole book five times. advice on in PQ magazine. Another student, Jana, the actual exam. Have you found that
Chapter by chapter, section by section. offers the following very sound advice some of the questions you got wrong
By the fifth time I started discovering the
how to get about thorough preparation and were ones where you actually knew how
little hidden hints such as note that through these perseverance being the secrets of to do them but got them wrong under the
CAPM will sometimes give you the tricky exams success, particularly at the higher levels time pressure? This shows areas where
market premium which is the difference of the CIMA qualification. Here's what you know the content well enough but
between the expected market return and Jana says: where you need to improve your exam
risk free cost of debt and other times it I have passed the nightmare paper technique.
gives you the expected market return. F3 on my 4th attempt, it took me 10 Dont panic and be constantly looking
That was a eureka moment, as I months to pass this exam!! Soul at the clock, it wont help. You need to
couldnt work out why the calculation destroying (86, 98, 89 and 106). This work quickly and methodically, but
sometimes subtracted the cost of debt time I did the study differently, working panicking because youve got 10 long
from the supposed expected market with just Kaplan and First Intuition. I questions left and only 10 minutes isnt
return and other times they didnt think the most important factor is going to help your focus.
simply by going through the book again developing the deeper knowledge rather My personal tip for the select all that
and again, without putting pressure on than number of questions you do. So just apply questions is be confident and only
yourself, the theory will automatically start take 1 or 2 providers and stick with their select answers that you feel totally
making sense and you will start making materials. In addition, I ordered aptitude confident are right when you first read
links [for example] how raising finance by 2 I have to say its very good, the the question. Any you hesitate over or try
issuing new debt rather than new equity questions are extended and much harder to justify are probably wrong. This only
will increase your EPS as the cost of debt than aptitude 1. works if you do know the subject very
is cheaper than cost of equity. As I said earlier, time management is well, of course... PQ
Another essential tip is to avoid too very important and a number of students Jackie Durham, education and
much question practice early on in your have offered suggestions on training consultant, CIMA

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24 PQ Magazine August 2017
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PQ ACCA exams

THE EXAMIN
We have real insight from the
actual F5, F8, P5 and P7 examiners
from day one of the ACCA Global
Learning Providers Conference.
Our editor reports directly from the
conference their bullet points, as the structure of their
answer. So far marking has shown that students
F5 Performance Management answers for CBE questions on the word
Exam structure processing tool are better than on paper. The
Section A 15 objective test questions (OT) examiner believes this is because students tend
worth two marks each. There was a debate over to be more succinct. There also seems to be
different marks of three and one, but it was less of a problem with students not answering
finally agreed on two marks per OT. the question set.
Section B Three OT case questions of 10 The examiner reminded PQs that answers to
marks comprising of five x two mark OT performance management questions need to be
questions. more than just this target has been met I
Section C Two questions worth 20 marks each need to know why, she said. Ask yourself why
(expert marked). you have calculated that ratio!
Students continue to perform poorly at the
Section A variance analysis questions. The examiner
The examiner stressed that students cant hide understands there were several different
from any of this large syllabus. She explained approaches and said her markers gave credit to
that the paper exam will all be MCQs. The CBE the two main ways it can be done.
will use MCQs, but also a mix of other question
types: for example, point and click, multiple F5 in the future
correct option, fill in the blank, matching and The examiner revealed that students will be
pull-down lists. expected to analyse information using
spreadsheets. Candidates will need to show their
Section B understanding and give constructive advice.
Each OT case will cover a topic from one main Finally, she stressed the exam was reflective of
area of the syllabus, although it may bring in the real world in which systems calculate a lot of
small parts from another area of the syllabus the numbers and the accountant acts in more
too. That said, the examiner emphasised that an advisory capacity. the balanced scorecard.
individual questions within the OT case will be Going forward, students will not be asked to However, too many PQs confuse terms; they
independent. draw graphs. They might, however, be asked to learn the jargon but dont know what it means.
solve one, or read from a graph. So they know the words when it comes to the
Section C During the Q&A session with tutors the balanced scorecard, but he wants them to apply
This is the only expertly marked part of the examiner said students should not it and thats when the issues come. The
exam. The questions will come from syllabus underestimate the rigours of the CBE. number of P5 students who dont know the
areas B, C or D. There will be no more than one definition for the return on capital employed is
from each syllabus area. P5 Advanced Performance Management jaw dropping, he suggested. The examiner
Answering section C questions in the CBE will The examiner stressed that knowledge of his warned sitters it will come up again!
require using basic spreadsheet skills. syllabus will usually only score about 30% of Other areas where students need to do more
Candidates will have to copy, paste and be able marks. Brain dumps dont work either, he work are ABC and overhead cost allocation
to perform simple formatting. There will also be said. When it comes to application, students are systems, responsibility centres and transfer
simple formulae with multiply and divide expected to answer in the context of the pricing.
needed. The examiner stressed here that scenario. And, the examiner said that evaluate The examiner said students must not question
although markers can see the formulae behind at P5 means more than calculate. spot, either: I deliberately try not to have
the cells answers still need to be clear. She felt He wants PQs to use a logical approach. You patterns in paper, but there are core areas.
the CBEs encourage neater layout to answers, cant expect to pass on defining technical terms
and said candidates can expect that some though. You are also expected to be critical Changes for 2018
narrative might be required namely, a just becuase it has appeared in the answer to New exam structure section A one x 50-mark
conclusion at the end of the calculations. another question it doesnt mean its right! case study. Section B two x 25-mark questions.
When it comes to using word processing in The examiner felt that students generally do New exam guidance section A, syllabus areas
the CBE for this section students were told they well with EVA, quality systems (especially JIT), A, C, D. Section B, one question from E, one
can use headings from their plan, and some of and models from section E of the syllabus like question from any area of the syllabus. B will

26 PQ Magazine August 2017


ACCA exams PQ

NERS WORKSHOPS however, depending on the subject area. The Underlying factors for poor performance
real worry is the lack of syllabus knowledge seen The examiner felt students sitting P7 had a lack
in many scripts. As a general rule there will be of technical knowledge in both audit and
two knowledge and three application OTs. The financial reporting. She said some candidates
examiner admitted that some of the OTs are dont seem to know the IASs even existed.
challenging, so PQs must spend time practising There is also little application to the question
these types of questions. Students perform scenario and very little evidence that past
better on ethics and corporate governance. But questions have been attempted.
audit evidence and reporting results questions The examiner stressed that the syllabus has
are more disappointing. The problem is clear examinable documents, yet candidates come
students seem to learn the list but dont know into the exam hall without knowing the basic
how to apply them. The examiner stressed that requirements of audit reporting. Their financial
PQs should not rush their answers. She also reporting is also not as good as it used to be.
wants you to be up-to-date with the IASs. She said P7 was predictable you can
expect questions on audit planning, audit
Section B reporting, ethics and quality control. But still
Ethics is a popular area with students. Although students dont seem to understand these areas.
many can pick out the facts from the scenario, When it comes to the optional questions, the
the examiner feels candidates dont seem to be examiner is worried that tutors are pushing
able to flag up the threats. students to certain questions. If students
Audit risk & responses is a core area and PQs practise a range of questions they will have a
need to be practising this one extensively. A key much wider choice in the exams.
here is to remember the examiner wants the There is good news, too. Students are
auditors response, not the managements performing better in questions about ethical
response. threats, client/engagement acceptance, audit
Internal controls can also be an area where quality and business risk.
students struggle, particularly when it comes to
pop from time to time, too! coming up with objectives. It seems students Example requirement and typical response
The examiner is hoping the introduction of the can name deficiencies but arent good with the From September/December 2016 the published
SBL exam will help push up P5 pass rates. He strengths. Applied substantive procedures has sample exam was: Recommend the principal
felt that students would be better served to sit been around in F8 since 2012. audit procedures to be performed on the
SBL before they attempt P5. The examiner revealed that there have been classification of the 50% equity shareholding in
complaints from markers about the amount of WTC as a joint venture.
F8 spelling mistakes in CBE scripts, but at least Typical weak answers:
Exam structure they can read them. She also admitted that the Are too vague, eg discuss with
Section A three objective test (OT) case March paper results did seem poorer at 38%, management/obtain written representation.
scenarios, each 5 x 2 mark OTs. but was hoping this was just a glitch. Her worry Are not relevant audit procedures, eg
Section B one x 30 marks and two x 20-mark is that with four sittings a year students are recalculate.
questions. This section will mainly feature rushing to sit the next sitting without doing Are not answering the requirement, eg talk
syllabus areas B, C and D. Sections A & E will enough work or understanding where they went about accounting treatment, not the audit
appear though, said the examiner. wrong the previous time. procedures.

Pass rates P7 ADVANCED AUDIT & ASSURANCE September 2018 changes


March 2017 38%; December 2016 40%; Pass rates Section A 50-mark case study set in planning
September 2016 44%. These are for both the March 2017 32%; December 2016 31%; stage. The examiner said that this question will
CBE and PBE exams. Some 70% of the exam is September 2016 32%; June 2016 32%; not be too dissimilar from the current Q1 just
expert marked. March 2016 30%. bigger and for more marks!
What is interesting here is that the December Section B two x 25-mark questions. Use the
Section A 2015 pass rate was a relatively healthy 39%. specimen paper to help understand the style in
The examiner explained that most students are However, this was proceeded with a September the new exam format. So, the big change is no
attempting all the OTs. Performance is variable, 2015 pass rate of 29%. optional questions. PQ

PQ Magazine August 2017 27


PQ your career

Step up for career success


P
otential job candidates often The future means that on-going undertake innovative or creative activities,
assume that upon qualifying as relevancy will be required as careers
Anita Brook becoming intrapreneurial which
an accountant they will become more fluid. It will be up to you to offers some means benefiting from the resources,
automatically secure a job when applying ensure the skills you hold are not only of sage advice capabilities and security offered by your
for a role. What they dont realise is the highest standards, but are current employer is a key learning opportunity.
employers are looking for a lot more than and relevant to your employers needs. on how you Being an intrapreneur will allow you to
someone who is good with the numbers. can make learn from possible failures without the
Navigating a successful career in Building your personal brand personal risks of entrepreneurship.
finance and accountancy involves One thing to do now is to start creating progress in Where possible, gaining global
implementing certain steps and and maintaining your personal brand. your career experience will give you a more diverse
accepting some realities of the new world Social media is a powerful tool to view as an employee and will look
of work. showcase your personal brand through a attractive on your CV. A great way to
ACCAs report Professional strong online profile that includes obtain a more diverse outlook is to work
accountants the future: Generation endorsements from colleagues and in global teams and to seek international
Next presents us with many of these new clients where possible. experience.
realities from the rise of technology in Being able to demonstrate a positive
the workplace, to globalisation, to the fact professional footprint through platforms Mentors and networks
there is no more employment for life. such as Twitter and LinkedIn goes a long Other key considerations involve looking
Almost 19,000 ACCA students and way to making you stand apart from for mentors and sponsors from both within
members under the age of 36 and from other candidates. and outside the organisation. Having a
150 countries participated in this study, strong network can significantly help with
making it one of the largest surveys ever Considering lateral moves your own personal brand building.
across the global profession. Its important to be realistic about what Its widely regarded that the strength of
future employers will be able to offer you an individuals personal network can have
Managing your own career in terms of career progression. a significant bearing on career success
ACCAs research shows that owning your We know that it takes time to build up particularly in a world where next career
career, which means thinking about your the requisite skills for those in finance moves may be less obvious and following
career plans, will be crucial to whether and accountancy careers. It can be less linear paths.
you succeed in the future. beneficial to work within the system and Being able to talk to clients, always
Successful professionals manage their see the employers perspective in remaining personable and your ability to
careers with a blueprint, carefully plotting charting out your career journey this is demonstrate how you will add value from
out the experiences they need. As the of course if you want to stick with your the word Go as a new employee will
employer/employee relationship current employer. determine whether you get and maintain
continues to evolve, and with job tenure Be open to exploring a move into roles your dream job in the future.
decreasing, the future will mean taking without a salary increase or promotion. My advice is to be proactive in
responsibility of your career and seeking These lateral moves can help you build managing your own future career
out professional challenges which will additional technical competencies and trajectory. Plan ahead, think ahead and
allow you to develop. knowledge, as well as developing softer be aspirational. Build you network, and
So thinking about the skills you need talents and behaviours such as your personal brand. Future proof your
for the future is an important part of leadership, communication, influencing skills so that you will be among the
developing a career plan. Future proofing skills, change management and career elites and remain in demand as an
your skills will be crucial in an age of collaboration skills. accountancy professional. PQ
collaboration in the profession, between As organisations often provide Anita Brook is an ACCA qualified
smart people and smart tools. opportunities for professionals to accountant and entrepreneur

28 PQ Magazine August 2017


W K
NO O
BO

Pass first time with


"Tutors are always available. Even at 10pm on a Sunday night!"
Sonam,CIMAstudent

Ginny (FI tutor)

Hi Ginny, quick question - what


is the difference between CSR
Strategy and Strategic CSR?
21:09

The strategy is how the


organisation is going to
implement CSR, strategic CSR
is the big picture rationale for
carrying out CSR. Hope that
helps :) 21:11

It does! Thank you!


21:15

www.fi.co.uk
/firstintuition

@first_intuition
info@fi.co.uk

With classroom centres in


Bristol Cambridge Chelmsford Leeds London
01173 540190 01223 360405 01245 209900 01134 677770 02073 239636

Luton Maidstone Manchester Reading Southampton


01582 733900 01622 755100 01612 286564 01189 504173 01189 504173
PQ ICAEW spotlight

ACCESS ALL AREAS


Discover everything you need to know about access arrangements and special consideration for the exams

D
o you feel your exam performance may possible after the exam; all applications must be
be hindered due to a health condition, received within two weeks from the date of the
disability or specific learning difficulty exam. If you are unsure about an application
(SpLD)? ICAEW may be able to put access please refer to the special consideration
arrangements in place to support you during an guidance available at
exam. You can also apply for access icaew.com/specialconsideration.
arrangements if you are suffering from a short-
term condition not covered by the Equality Act. Access arrangements and computer-based
Once ICAEW has received your application, it exams
will be reviewed and you will be notified of We have been working with our computer-based
ICAEWs decision in 10 working days. exams software and exam centre providers to
ICAEW will do everything reasonable to ensure that our access arrangements evolve, as
support you. This may involve adjustments, such more of the ACA Professional Level exams move
as awarding you extra time, rest breaks, a to computer. If you have already applied and
reader, scribe or changes to the exam format. have been awarded access arrangements for a
Just so long as you can provide suitable Professional Level exam we will contact you to
evidence. confirm your access arrangements for these
You can find these documents at exams before they move to computer. If you
How to apply for access arrangements icaew.com/accessarrangements. Alternatively, have access arrangements already in place that
Please make sure your completed application is you can email aa@icaew.com with any questions are not due to expire you do not need to reapply
submitted by email to aa@icaew.com no later you may have regarding your circumstances or when you book an exam.
than the exam booking deadline, including any the application. If you feel you may need access arrangements
supporting evidence that will help ICAEW for an exam moving to computer, or you havent
consider your application. Please ensure that Special consideration taken an exam in two years, please get in touch,
you read the guidance notes in full, available at Students who feel that their performance in the email ICAEW at aa@icaew.com
icaew.com/accessarrangements prior to sending exam has been adversely affected by illness or
your application. other circumstances may apply to have these Exam booking deadlines
factors taken into consideration during the ICAEW recommends that you make a note of all
What happens if access arrangements cannot results determination process. It is solely your key dates and deadlines when applying for your
be awarded? responsibility to fully read and understand the ACA Professional or Advanced Level exams. Any
If appropriate access arrangements cannot be special consideration process before you sit an late exam applications are unlikely to be
awarded in time for the exam you should exam. You can find out more about this process accepted.
consider carefully whether to defer your exam to by visiting icaew.com/exams. Any requests received within the week after
the following exam session. ICAEW recommends the closing date, that can be accommodated,
that you read through the guidance documents How to apply for special consideration will incur additional fees. Please remember to
online to ensure you understand the Any applications for special consideration should apply for and book your exams early.
requirements and you can be rest assured your be submitted to Download all the key dates you need at
application will be looked at without delay. specialconsideration@icaew.com as soon as icaew.com/exams PQ

THE TROUBLESHOOTER IS GUNNING FOR... STRATEGY


PQ magazines troubleshooter Philip Dunn explains Thus strategic planning focuses on the longer-term, covering a period of
more than one year it enables time scales of three years, five years or
the best way to tackle question on business strategy more to be considered.
Peter F Drucker once identified the decisions an organisation must
THE TROUBLESHOOTER has recently reviewed the Learning Outcomes make when it is formulating strategies that form the basis of a longer-term
embedded in the Assistant Accountant Apprenticeship at Level 3. plan:
Under the section headed Knowledge and Business Awareness Learning Identify its opportunities and decide which risks it is willing to accept.
Outcome (2) it says: Describe and understand the business strategy that Choose the right balance between specialisation and diversification.
meets the needs of stakeholders. Achieve growth organically (from within the existing business) or by
Question: Apprentices at this level will soon be asking: What is strategy acquisition financial strategy.
and who are the stakeholders? Decide on an appropriate organisational structure to achieve the
Answer: In this short response I will focus on strategy, its link with strategic objectives.
planning; and will deal with stakeholders in a later Troubleshooter. Thus strategy and strategic planning generates plans that can be used
Firstly, we need to consider the following definitions: as benchmarks against which performance can be measured
Strategy is defined as a course of action including the specification of (incorporating on an on-going basis budgets and budgetary control).
resources required to achieve a specific objective (CIMA Terminology). For Strategy identifies areas of responsibility and authority for each
example, the NHS in its overall strategy has an objective of reducing management activity and forms the core of Responsibility Accounting (the
waiting times in A&E and specifies the resources required to achieve this establishment of Expense, Profit and Investment Centres).
specific objective. It also generates ideas and creates a culture of creative thinking which
Strategic Planning is the formulation, evaluation and selection of in turn may create further business opportunities. PQ
strategies for the purpose of preparing a long-term plan of action to attain Dr Philip E Dunn is a freelance author and technical editor for
objectives (CIMA Terminology). Kaplan and Osborne Books

30 PQ Magazine August 2017


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PQ AAT exams

AQ2016: a year on
AQ2016 CBA SUCCESS RATES 1 SEPTEMBER TO 31 DECEMBER 2016 Suzie Webb explains how the qualification
Level Assessment Short code Worldwide has developed over the past 12 months

B
Foundation Bookkeeping Transactions BTRN 90.9%
ack in September 2016, we replaced seven of our
Foundation Bookkeeping Controls BKCL 78.4%
accounting and bookkeeping qualifications with a new
Foundation Elements of Costing ELCO 90.5% qualifications suite, AQ2016. This introduced grading
Foundation Using Accounting Software UACS 61.0% to our qualifications of pass, merit and distinction along with
Foundation Foundation Synoptic Assessment FSYA 76.5% assessment percentage pass marks and synoptic tests.
Advanced Advanced Bookkeeping AVBK 65.0% The changes that we have made for AQ2016 were in direct
Advanced Final Accounts Preparation FAPR 80.3% response to recommendations made by our students, who told
us that they were interested in gaining greater feedback about
Advanced Management Accounting: Costing MMAC 74.1%
their exam results and the areas in which they may need to
Professional Management Accounting: Budgeting MABU 68.0%
improve.
Professional Management Accounting: Decision and Control MDCL 51.8% One of the fundamental changes affecting the delivery of
Professional Financial Statements of Limited Companies FSLC 67.3% AQ2016, compared with AQ21013, is the requirement to apply
knowledge across units through synoptic assessments, which
For general information, of the total number use scenarios to draw on and assess learned concepts and
of assessments sat in the period (September practices. These assessments reflect the importance for
December 2016), only 12% were for accountants to be able to write effectively and coherently, as
AQ2016 qualifications and, for the most part, well as deal with technical elements.
these were sat by students at less than 50%
of all approved training providers. The data Improvements to study support
available in September 2017 will provide a We understand that in order to pass our assessments a high
broader picture of the success rates. standard must be attained, and that successful students have
to demonstrate competency across topics. To help them

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About you 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
Title...................................................... you are hoping to sit
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32 PQ Magazine August 2017


AAT results PQ

AAT RESULTS
Level 2 Introduction to Payroll of 2016 and show international
Systems is still the toughest AQ2013 students helped push up the Level 4
paper to pass, although there has Personal Tax pass rates to 54.1%. In
been a jump in the success rate to the UK, the actual pass rate dropped
48.1%. It was 45.2% last time to 53.6%, but international success
around, and 43.4% the time before rates for the assessment rose to an
that, so the pass rate is moving in the impressive 80.7%. Perhaps UK
right direction. tutors should find out what is behind
The latest figures cover the whole the increase in overseas pass rates!

Suzie Webb: new AQ2013 & SHORT QUALIFICATIONS CBA SUCCESS RATES
lucky dip Green YEAR ENDING 31 DECEMBER 2016
light option
introduced Level/Assessment name Short Code UK Int'l World
L1 Access AA 93.7% 94.0% 93.7%
L1 Bookkeeping and Accounts BKAC 85.0% 100%* 85.0%
L1 Computerised accounts COPA 94.1% n/a 94.1%
L1 Computerised Payroll
Administration CPYA* 70.3% 100% 70.3%
L1 Spreadsheets software SPRS 95.3% n/a 95.3%
L2 Applied Business
Communications & Personal Skills ABPS 61.6% n/a 61.6%
L2 Accounting skills to
run your business ASYB* 57.3% n/a 57.3%
L2 Basic costing BCST 94.7% 88.1% 94.3%
succeed, we provide students and tutors with supplementary resources
L2 Control accounts, journals and
and content to support them through the teaching and learning
the banking system CJBS 86.9% 76.7% 86.5%
process.
Study support includes e-learning, key calculations, real-life L2 Computerised accounting CPAG 94.5% 76.9% 93.6%
scenarios, and Green Light tests. These resources are designed to L2 Computerised Payroll Skills CPSK 78.9% n/a 78.9%
enhance students' understanding of key subjects through interactive L2 Developing Study Skills DSSK 88.2% n/a 88.2%
tutorials, examples, questions, and scenarios. L2 Introduction to Payroll Systems IPSY 48.1% n/a 48.1%
Our popular Green Light tests help students judge how well they L2 Processing bookkeeping trans PBKT 90.3% 78.2% 89.7%
understand subjects and identify where they may need to put in some
L2 Spreadsheet Software SPSO 83.3% n/a 83.3%
more work. Green light tests also include a summary dashboard so
L2 Work effectively in accounting
students can review their results from across a number of tests. We
have also introduced a new lucky dip Green light option, providing a and finance WKAF 93.4% 74.1% 92.2%
set of questions from across the qualification being studied. Its L3 Accounts preparation ACPR 59.5% 44.1% 57.8%
important to remember that these are tools designed to provide L3 Computerised accounting COAG* 93.8% 100% 93.9%
additional support to learners, and that can be used by tutors in the L3 Costs and revenues CSTR 82.5% 59.7% 80.2%
classroom. They are not designed to determine if a student is ready to L3 Prepare final accounts for sole
sit an assessment only the tutor can do that!
traders and partnerships FSTP 82.9% 64.9% 81.3%
We are introducing additional e-learning to support an increased
L3 Indirect tax ITAX 77.1% 55.9% 69.9%
emphasis on writing skills. This includes guidance on writing a good
analysis, explanation, or justification and communicating effectively L3 Professional ethics PETH 71.9% 55.9% 69.9%
with different stakeholders. During May, our AQ2016 e-learning support L3 Spreadsheet software SDST 90.2% 69.2% 88.2%
materials were visited in excess of 60,000 times. Support for our new L4 Budgeting BDGT 71.7% 47.5% 68.7%
Access qualifications is also in production, to be available in time for L4 Business tax BTAX 54.1% 62.3% 54.8%
launch in 2018. L4 Credit control CRDC 78.8% 51.3% 76.1%
Our popular AAT Comment blogsite also generates a huge amount of
L4 Cash management CSHM 58.5% 19.8% 55.1%
content for students, including writing tips and study techniques, while
L4 External auditing EXTA 87.2% 53.3% 71.0%
our various social media channels provide useful pieces of information
often created by our own students. Various discussion forums, L4 Financial performance FPFM 61.7% 41.0% 59.6%
including on our Facebook group, see students and tutors helping to L4 Financial statements FSTM 68.7% 44.7% 66.2%
problem solve issues that others may be facing. L4 Internal controls and
Students can access study support via their MyAAT portal, with our accounting systems ISYS 90.9% 84.9% 90.0%
weekly Summing Up emails covering all the latest updates about L4 Personal tax PTAX** 53.6% 80.7% 54.1%
individual assessments.
* Less than 100 assessments (ASYB = 57, COAG = 42, PTAX (Int'l) = 24**)
Time is running out to finish AQ2013
Level 1 Level 2 Level 3 Level 4
A brief footnote if you havent switched to AQ2016 to continue your
CBA success rate 92.2% 90.3% 74.2% 65.0%
current level, then time is running out for you to either transfer or
complete. The success rates include assessments from AQ2016. However, the timescales and
number of assessments taken affects the reliability of the AQ2016 data available. As these
For our students still studying the AQ2013 syllabus, you have until
are drawn from only 16 weeks of performance, AAT has published success rates only for
31 December 2017 to finish the level you are currently on. PQ assessments with more than 500 results. This first set of results for AQ2016 should be
Suzie Webb, Director of Education and Development, AAT viewed with caution, given the limited data available.

PQ Magazine August 2017 33


PQ careers

Dealing with interview failure


F
or every job a company recruits managed to get some feedback, how
for, inevitably someone with a does this reflect on the interview? Did the
great CV, fantastic ideas, Greg Thorpe explains employer highlight anything that you can
desirable skills and amazing personal how you can put a improve on?
qualities will be rejected. Does that make
you feel any better? Probably not.
dissappointing job Revisit the job
Along with the excitement of looking interview behind you There are many reasons you may have
for a new job, progressing your career been rejected, not necessarily because of
and finding a company that you want to anything you said or did during the
work for, is the possibility that youll get interview. It may actually be because the
rejected at the interview for a job you job or company wasnt a good fit for you,
really want. Picking yourself up again, and this became apparent while the
dusting yourself off and getting back out interviewer was questioning you.
there after interview rejection is tough. Have another look at the job
However, its got to be done if you want description, company info and also your
to find a new job and achieve all those CV. Could you be more selective in the
associated goals. roles you apply for to get a better fit? Is
So here is my advice for dealing with your CV misleading in any way, resulting
interview rejection. Ill try to avoid the in invitations to interviews for roles youre
clichs like it probably wasnt meant to not really right for?
be, although there is often wisdom in
these rather trite sayings. Instead, heres Address the issues
an action plan of what to do after an If the employer flags up something
interview rejection so you can take specific in their feedback, or if you have
control of your job search again. a good idea of what went wrong, youve
got something to work with.
Give yourself a break You may benefit from some interview
First off, take a little bit of time out after a practise with your recruiter or a coach, or
job rejection before you react to it. I dont perhaps you need to address a lack of
mean take a holiday or dont go to the qualifications or knowledge by getting
interview youve got lined up later that some training.
week. But just sleep on it, try not to dwell
on it, and give yourself some breathing Move on
space before you do anything. Having gleaned what you can from your
This should take the edge off the experience, its time to move on. Often
disappointment or hurt and allow you to the reason for interview rejection is
access the situation with a little less because of a gut feeling, personal
emotion. preference (they liked the other
candidate more) or an unconscious bias
Ask for feedback (the other candidate went to the same
If youre working with a recruitment university, or also likes sailing, etc.).
agency speak to your consultant and ask Theres not much you can do in these
them if theyve had any feedback or can circumstances unless you can prove
request feedback from the employer. If discrimination and thats not a great way
youre in direct contact with the employer to get a new job.
ask them whether they can take the time Seize the positives, learn from your
to talk to you. The best way to do this is mistakes (sorry clich alert!) and get back
with a follow-up email, thanking them for out there looking for the next opportunity.
the interview opportunity and stating that Review the interview If you would like to discuss your job
you would welcome feedback both Think back over the interview and how search with a specialist recruiter, get in
positive and negative. you thought you performed. Were there touch with our team. Call 01252 718777
Stress that you want to learn, not that any instances where it didnt feel like it or email info@howett-thorpe.co.uk PQ
you want to interrogate them, and that was going your way that you could work Greg Thorpe is MD at Howett-Thorpe
you want feedback for self-development. on for future interviews? If youve Recruitment

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PQ careers

Life at Triumph Motorcycles


social media Katrina Dasantos, 25, is a Group Treasury Accountant based in Leicestershire. She has

ROUND-UP worked there for two years. An ACCA studier, she has a degree in Accounting and
Finance from DeMontfort University
What time does your alarm favourites and why? ACCA with a good film, a nice dinner
clock go off on a working Global for the articles, exam and my husband.
The ACCA June exam results were due day? Between 6:15 and 7am. information and module Whats your favourite tipple?
out on Monday 17 July, so didnt make Whats the first thing you do guides/study material. HTFT Archers.
this issue. They will, of course, go when you get to your desk? Partnerships website while Im How often do you take work
online at www.pqmagazine.com just as Text my husband so he knows Ive studying for all the material, and home with you? Rarely.
soon as we get them. arrived safe. their Online Learning Community, What is your favourite TV
One of our favourite tweets this Whats on your desk? Lots of where I can get support show? Once Upon A Time.
month came from John Peden, just after folders and paperwork. And from their tutors and Summer or winter?
his exams had finished. He said: Two usually a cup of coffee to keep me others studiers. And Definitely summer!
pints after another set of ACCA exams going. Martins Money Tips Pub or club? Pub.
isnt really enough. What the fuck Whats the best thing about we are currently saving Who is your hero? My
made me choose to pursue where you work? Half-day for a house so all the husband, for putting up
accountancy as a career? Friday! And the people I work tips are very useful. with me during my
We also picked up on the HTFT with. Which websites do you degree and my exam stress.
Partnership newsletter, which reminded Wheres your favourite place use for work? FT, banking and If you had a time machine,
ACCA PQs that the new ethics module to go for lunch? Frankie and currency websites. where would you go? Nowhere,
comes into effect on 31 October. We Bennys. How many hours a week do Im happy right now.
wondered if it was time to get it done What (or who) can you see you spend in meetings? About If you hadnt chosen
and save yourself 60. Alex Norian when you sit at your desk? My two, depending on the week. accountancy, where might
told us on Facebook: Just completed lovely colleagues and more What time do you leave the you be right now? Maybe
mine and the answer is most importantly the food table. office? Around 5pm. studying psychology, or working
definitely yes. Which websites are your How do you relax? At home, with animals.
Facebook now has two billion people
using its apps and services every In brief
month. Founder Mark Zuckerberg
explained the company has doubled its Emails? What emails? according to The Times latest never leave the building because
user base in just under five years, What is the secret of Sir Rich List. of the free food on offer.
having passed the billion monthly James Dysons success? He says
users in October 2012. Talking of it is down to the fact that he gets Going out to lunch Time to speak the truth
Facebook, there is a new group on the only six emails a day! It started Bloomberg, the financial Highly qualified staff are up
block the CIMA UK Student Group. 30 years ago, when he banned media giant, has bucked the to three times more likely to get
Some PQs were a little puzzled about staff from writing memos. trend and told staff it wont be the job if they are honest about
the claim that this is the official group Instead, he encouraged them to offering cafeteria facilities their shortcomings, say
is for CIMA students in the UK (sic). talk to each other! New Dyson in its new 1bn HQ. researchers. It appears
The administrators are Louiza and staff are still given old-fashioned Founder Michael those who serve up a
Ayan, and the logos they use are exercise books and staff are Bloomberg fantasy of perfection are
CIMAs. There was an initial suspicion urged to use them in meetings (pictured) said he just kidding themselves
from some PQs about that sentence, as instead of laptops. He also wants staff to get and not the interviewer.
the extra is meant it didnt make believes the rise of the AI will away from their Employers like a little
sense (thats been changed now). mean we will eventually be able desk, go outside for frankness about
Another trainee felt the admin were to leave it to the bots to answer lunch and enjoy the occasional lateness and the
hiding behind false names (those could our emails for us. Dyson is the local economy. He says he inability to use certain software
be their real names!). You asked us to 14th richest man in the UK, with wants to avoid the Google as it makes the candidate more
get on the case: Perhaps our resident accumulated wealth of 7.8bn, syndrome, where staff seem to authentic and real.
investigative journalist could
investigate? Potential scoop here
Graham Hambly. And we have. You The PQ Book Club: books you should read
were, of course right, this is not an
official CIMA group, according to the The Daily Telegraph Tax Guide make the complex and test. And who
CIMA social media team. The group is, 2017 by David Genders (14.99) challenging world of tax returns doesnt like to
however, growing quickly and had easier to understand. Also know what the
nearly 440 members when we last Author David Genders has been included is the 2016 Autumn penalties are
looked. CIMAs writing this tome annually since Statement and what happened for doing
social media team 1982 and it contains everything in the March 2017 Budget. something
will be in touch you need to know from Genders starts his book with a wrong?
A tweet that also completing a self-assessment nice outline of what HMRC does Throughout
got you going was: tax return for 2016/17 to how and then moves onto tax rates the guide
Apple Retail UK to be more tax efficient. and allowances (our favourite Genders puts in
paid less tax last year just 8m. Although written for the bit). Tax credits has its own lots of useful tax saver tips
Revenues for the year rose by 2% to taxpayer rather than the chapter, as does interest what a good accountant should
1.024bn, but operating profits fell to accountant it is a perfect place payments and other outgoings. be doing for their clients.
19.2m As Matt replied: Apple for PQs to start if they want an Residence and domicile also PQ rating 4/5: This book isnt a
Retail UK converted over 1bn into only invaluable guide to how tax pops up, and the author does a substitute for a good
19m profit 0.02% profit margin. actually works in the UK. We great job of setting out the accountant, but if I was in
Sounds perfectly reasonable really loved the practical advice, differences between automatic practice I would give it to every
along with the examples that residence and the sufficient ties client.

36 PQ Magazine August 2017


www.howett-thorpe.co.uk

RECRUITING
SUPERHEROES
LIKE YOU

FARNHAM WEYBRIDGE SLOUGH REIGATE


01252 718777 01932 901900 01753 313033 01737 304050
farnham@howett-thorpe.co.uk weybridge@howett-thorpe.co.uk slough@howett-thorpe.co.uk reigate@howett-thorpe.co.uk
PQ got a story, funny or serious, you want to share? Email graham@pqaccountant.com

A MESSY COVER
The accountancy bodies spend a lot of
time getting their annual reports to look
CAREY IN A HAT
Dr Seuss books have helped the Bank of England to make
and feel right. We know because they get their reports more readable. A former deputy governor,
offended when we criticize them! CIMAs Dame Nemat Shafik, recently said: Dr Seuss was a genius
report was nice and clean. Ok, it didnt at getting young people to read by using very simple
get our top marks but it was strong. PQ language and very short words. The BoE did some
was a little bemused by the cover there research on the linguistic complexity of its own publication
is a very strong lookalike here with Roger and found that its reports on things such as inflation were
Hargreaves Mr Messy. But we have been only accessible to one in five of the UK population. Watch
told that it represents the extraordinary out for Carney in a Hat and Green Bucks and Spam.
times we are all living in. So perhaps it
does fit!
See next months issue for our full
I WANT
review of all the annual reports
TO BE
THE GOOD, BAD AND UGLY LEFT
Implementing the
Making Tax Digital ALONE
initiative is FROM ACCOUNTANT TO MP Scientists have
becoming like the The Conservatives have 16, while Labour and the created a
Wild West, SNP have only two each. What are we talking about? desktop light
according to ICPA The answer is MPs with an accounting background, linked to your
chairman Tony of course. There are also two accountants in the computer that
Margaritelli (left). Cabinet, even after the early reshuffle Justine switches from
In his presentation Greening (pictured) and Karen Bradley. Together the green to red
to 100-plus delegates at the ICPAs Practice Evolution seminar in London, he 20 MPs make up 3% of the total. There is a question when it deems
outlined what he consided the Revenues hostility to the UKs accountants in mark hanging over one ICAEW-qualified MP Thanet you are in the
practice. He singled out ugly Jim Harra, Tax Assurance Commissioner and Souths Craig Mackinlay. It is being alleged he zone and should
Director General Customer Strategy and Tax Design at HMRC as particularly overspent during the 2015 election campaign. not be disturbed.
hostile and his slide illustrating the point brought the house down. Despite the claims he still got re-elected in June. The traffic light
system is meant

OUT OF SIGHT OUT OF MIND LATEST CHEAT IS


If you need to concentrate then you need to Move over Harry Potter,
to stop
interruptions and
uses an
put your phone in another room! It appears here comes the latest exam algorithm to
even having your smartphone face down on scam invisible ink. A law decide when the
your desk or in your bag means you become student was recently light needs to
less able to concentrate thats how bad the caught red-handed with 24 change. The
addiction is! Scientists found that our brains pages of notes written in worry is that
suffer constant low-level distraction from the invisible UV ink, according to a report from your computer
opportunities the phone offers for messaging the Office of Independent Adjudicator. The will eventually be
and browsing. In fact, these phones are student in question even smuggled a UV able to monitor
changing the way we think, with their mere light into the exam hall so she could read brainwaves and
presence meaning we are less able to perform even simple cognitive tasks. In a her special notes! She had put the notes in vital signs too,
series of tests it was those who placed their phone in a separate room who did her law statute book, which she was allowed showing bosses
best, and those with it screen down on the desk that did worse. The results are to bring into the open book exam. It didnt if you are really
stark those with the phone on their desk scored 10% lower on the memory test stop her appealing to the adjudicator to concentrating on
and 5% lower on the maths one. reserve her cheating punishment! the job!


WEV E GOT THE L OT
Smart powerbank Your home reference set
PQ magazine has joined forces The examiners and markers have started to complain about
with the award-winning ACCA-X exam candidates spelling now that increasing numbers are
to offer five readers the chance of sitting CBEs! Well, we are here to help, with the Collins Home
winning a smart powerbank. The Reference collection. With a dictionary, thesaurus and guides
powerbank provides a quick and convenient charge to your mobile to spelling, grammar and punctuation, this set is worth just
phone, iPOD, camera, game console and most other digital devices. under 50. The collection also includes a guide to scrabble, a
Simply email your name and address to book of quotations and a crossword solvers dictionary.
graham@pqaccountant.com head up your email ACCA-X and we To win this great giveaway just head up your email Collins and send your
will do the rest. name and address to graham@pqaccountant.com. It is as simply as that.

Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway entries must be
received by Friday 11 August. The main draw will take place on Monday 14 August 2017.

TO ENTER THESE GIVEAWAYS EMAIL GRAHAM@PQACCOUNTANT.COM


38 PQ Magazine August 2017
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