NOVEMBER/

DECEMBER 2008

page 16
the talent crunch
who will win as skills
shortages bite?

fuelling the future

how ACCA students
are supported at shell
page 24

congratulations
1,985 new oxford
brookes graduates
page 57
Join our medal winners
And succeed with our winning ACCA team

Kaplan Financial is proud of its student achievements, especially with

our students winning gold, silver and bronze places in the world for
the past two exam sittings - demonstrating our outstanding pass rates
for ACCA and our expertise to support you all the way. It’s not too
late to increase your chances of success. Attend one of our intensive
question based days - an unbeatable way to prepare for your exams.

With so many of our students leading the way and winning

ACCA worldwide prizes, isn’t it time you joined them?

Enrol today:
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Email: accaadvice@kaplan.co.uk
Enrol online at www.ftc4success.com
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BUILDING FUTURES
 London
School of Business
& Finance

Equip yourself with

ACCA Compete 1st class...

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+ 1st class inspirational tutors
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contents student accountANT
page 2 NOVEMBER/DECEMBER 2008

28

16 57

16 Surviving the talent crunch 24 Fuelling the future

Calum Robson discovers how the global credit crunch is Victoria Morgan looks at how ACCA students are supported in
affecting accountancy recruitment around the world, and their jobs and studies at energy giant Shell, a key player in the
how best to plan your career in the economic slowdown global oil economy

20 Thinking FD? 28 Make your reading count

Developing your leadership and influencing skills is key to If you want to improve your chances of career success,
reaching finance director level. student accountant finds you need to improve your reading skills. student accountant
out more explains why and how
contents welcome to the november/december issue of student accountant
page 3 please e-mail studentaccountant@accaglobal.com with your
feedback on this issue

Richard Aitken-Davies
President
Brendan Murtagh
8 Career and exam advice Deputy President
8 3 things you should know about: distance learning Mark Gold
9 Talking technology: wiki wonderland Vice President
11 How to: get the best from your tutor
Helen Brand
Chief Executive

Editorial Team
Jamie Ambler
Editor
34 Single-tier dividends: the transition Victoria Morgan
Examiner for Paper P6 (MYS) Richard Thornton summarises the Deputy Editor
transition arrangements between the imputation system and Richard Gooding
the single-tier system – relevant to ACCA Qualification Paper Production Manager
P6 (MYS) Rhian Lewis
Publishing Assistant
38 Construction contracts
Bobbie Retallack outlines how to use IAS 11, Construction
Contracts in an exam question – relevant to ACCA www.accaglobal.com
Qualification Paper F7 Glen Patterson
Online Editor
40 Interest rates and early settlement discounts
Examiner for CAT Paper 10 Ann Irons explains the difference 29 Lincoln’s Inn Fields London WC2A 3EE
between simple and compound interest, and how to make United Kingdom
use of this knowledge to understand early settlement tel: +44 (0)20 7059 5700
discounts – relevant to CAT Paper 10 fax: +44 (0)20 7059 5050
e-mail: info@accaglobal.com
44 Accounting and organisational cultures www.accaglobal.com
Graham Morgan describes the Financial Control Culture
and the Excellence/Service Culture and the type of publishing and Advertising
performance contracts associated with both – relevant to Adam Williams
ACCA Qualification Papers P3 and P5 Head of Publishing

48 Financial instruments For all advertising-related matters please

Tom Clendon discusses the facts and terminology of financial contact Lisa Peake:
instruments, and sets some exercises to test your understanding tel: +44 (0)20 7902 1224
– relevant to ACCA Qualification Papers F7 and P2 fax: +44 (0)20 7902 1229
e-mail: lisa.peake@accaglobal.com
54 The importance of financial reporting standards to auditors
Examiner for Paper P7 Lisa Weaver provides guidance on the Published monthly except June/July and
financial reporting issues that require a detailed level of November/December (which are combined
knowledge, and those for which less detailed knowledge will issues) by the Certified Accountants
be expected – relevant to ACCA Qualification Paper P7 Educational Trust in cooperation with ACCA.

The Council of ACCA and the publishers do

OBU GRADUATES
57 Congratulations to the most recent Oxford Brookes University
BSc (hons) in applied accounting graduates
not guarantee the accuracy of statements
made by contributors or advertisers, or
accept any responsibility for any statement
which they may make in this publication.
Print management Paragon

No part of this publication may be

reproduced, stored in a retrieval system, or
transmitted in any form or by any means,
electronic, mechanical, photocopying or
otherwise, without prior written permission of
64 Noticeboard the publishers. © CAET 2008 ISSN 1473-0979
Essential reading for all trainees
DISPATCH
PAGE 4
NEWS IN BRIEF
SINGAPORE SLIPS INTO
RECESSION
Singapore slipped into a technical
recession in the third quarter,
when it posted two consecutive
quarter-on-quarter GDP
contractions – the country’s first
since 2002, when the economy
was hit by the SARS outbreak.
Citigroup believes Singapore could
also become the first major Asian
economy to post an overall GDP
contraction next year. The bank
recently forecast that the country
could see an economic contraction
of 1.2% as domestic demand is
simply not big enough to offset
weakness in external demand.
ASIA BANK RATINGS ‘STABLE’
Moody’s Investors Service revealed
that its outlook for the banking
industry in Asia is increasingly
negative, but that its outlook for
bank ratings generally remains
stable. In a teleconference in
October 2008, Moody’s Financial
Institutions Group presented the
outlook for the region’s banking
system generally, and more
specifically for Japan, Australia,
and Korea.
Jerry Chien, managing director
of the Financial Institutions Group,
Asia Pacific, said the ratings
agencies’ conclusion is that while
the next 12 to 18 months look
gloomy, Asia will still outperform
other regions due to its strong
underlying economic growth.
TOURISM FEELS STRAIN
Asia Pacific tourism is starting
to buckle under global financial
pressure, according to analysis by
Deloitte. The professional services
firm reports that although hotels
in the region reported positive
growth for the year-to-August
2008, with revenue per available
room up 13.2%, on closer
inspection hoteliers have started
to feel the strain over the past few
months. Alex Kyriakidis, global
managing partner of tourism,
hospitality and leisure at Deloitte,
said: ‘Asia Pacific is by no means
decoupled from the uncertain and
volatile economic environment in
the US and Europe, and although
the backlash for the Asia region
has been delayed somewhat, it was
only a matter of time.’
STUDENT ACCOUNTANT
NOVEMBER/DECEMBER 2008
Small and medium-sized enterprises (SMEs) represent
over 99% of UK businesses, but research from ACCA
shows that the ability to alter their established form when
the economic environment changes can be the key to
continued success.
HELP OR HINDRANCE?
DOES THE UK
TAXATION SYSTEM
SUPPORT SMALL
BUSINESSES?
ACCA’s global research paper Perspectives
on Fair Tax indicates that in the midst of the
current economic stormy weather, many small
businesses are having problems aside from the
need to shape-shift, as the complexity of the
UK’s tax regime adds to their difficulties.
Specific areas marked as unfair include:
the increasing role of employers acting as tax
collecting agents for government
retrospective changes to the tax system
stealth taxes – such as the failure to index
link thresholds and allowances
the assumption of additional powers by HM
Revenue & Customs (HMRC).
Chas Roy-Chowdhury, head of taxation at
ACCA, said: ‘A disturbing trend throughout the
global research is that there appears to be a
consistent response from the UK that taxes are
unfair, too complex, lack transparency, and that
there is inadequate communication from the
tax authorities.’
These views were echoed by a small-practice
accountant during a UK focus group which
formed part of the global research: ‘The
complexity of legislation, particularly the increase
over the past 10 years, makes it difficult for
laypeople to understand. This complexity creates
unfairness and most people are disadvantaged.’
Roy-Chowdhury added: ‘The more complex
a tax system, the greater the amount of
opportunities there are for avoidance, evasion,
and other forms of abuse, and, of course,
if the system is easier to use, more non-tax
professionals will be able to use it. Therefore
simplicity is fundamental to the system.’
Participants in the UK focus group also
believed that retrospective changes to tax
policies, such as the Arctic Systems husband and
wife tax case, are unfair.
There certainly seems to be a message from
the UK in general that the lack of clarity in the
legislation combined with increasing complexity
and a seemingly aggressive stance by HMRC is
leading to a breakdown of trust in the system.
Complexity was seen as a major issue
with regard to certainty and thus fairness. The
research suggests that the chief contributing
factor to complexity is the volume of directives,
laws, and regulations. Therefore, the key message
for the government that arose from this study
is the need to reduce, or at least contain, the
volume of directives, laws and regulations in
order to moderate complexity.
Roy-Chowdhury concluded: ‘For SMEs
to survive they need a tax system which is
clear, understandable, and they also need a
tax authority with which they feel they can
communicate clearly. The clear message from our
research is for governments to reduce the volume
of laws, directives and regulations that contribute
most to complexity.
‘There is a fundamental issue for governments
around the world to decide the purpose and
structure of tax systems, and importantly
to communicate the rationale behind these
decisions, especially to SMEs who may be feeling
nervy due to the current economic climate.’
DISPATCH DOWNLOAD A COPY OF ACCA’S RESEARCH ON NARRATIVE REPORTING
PAGE 5 WWW.ACCAGLOBAL.COM/PUBLICINTEREST/ACTIVITIES/RESEARCH/
REPORTS/GLOBAL_INTEGRATION/RR_104

NARRATIVE

NEWS IN BRIEF
SECOND GLOBAL SUKUK
PROPOSED
Malaysia’s central bank recently
proposed to issue a second

REPORTING:
sovereign global Islamic bond, or
sukuk, which is most likely aimed
at setting a new pricing benchmark
and facilitating a price discovery
mechanism for ringgit bond issues.

WHAT IS ITS
The Malaysian government
issued its first sovereign global
sukuk in 2002, spurring other
governments such as those of the
United Arab Emirates, Bahrain, and

VALUE?
Pakistan to follow suit.
Apart from determining if
Malaysia’s sovereign credit rating
remains intact, a second global
sovereign sukuk would also help
finance the Malaysian government’s
There has been a marked growth in the types of budget deficit, which is estimated
voluntary and narrative reporting in recent years, to surge to 4.8% in 2008.

so much so that many large companies now produce MALAYSIAN BANKS’ CARs
SATISFACTORY
elaborate, lengthy, and detailed annual reports Fitch Ratings has said that
extending to, in some cases, hundreds of pages. Malaysian banks’ capital adequacy
ratios (CARs) are satisfactory and
little impacted from the adoption
In its latest research report, Narrative Reporting: of Basel II standards, reported The
Analysts’ Perceptions of its Value and Relevance, Edge financial daily.
ACCA considers the impact narrative content Fitch said it still viewed the
has on decision makers and on investment capitalisation of the Malaysian
analysts’ stock recommendations, and banking system to be satisfactory,
suggests it is relatively insignificant with Tier-1 and total CARs
to one of the most important currently at around 10% and 13%
primary consumers of corporate respectively. These figures are
reporting information. well above the corresponding
There are a number of issues regulatory minima of 4% and 8%,
raised by the findings. Prominently, even as other countries move
these findings represent a challenge to prop up their beleaguered
to preparers of annual reports, banking sectors through bailouts or
who have presided over a period nationalisation schemes.
of volumetric expansion of narrative
content, the value of much of which CHANGI AIRPORT TO BE
to analysts can now be questioned. If CORPORATISED
it is the intention of preparers to make Singapore’s award-winning
narrative reporting relevant and material Changi Airport and its operating
to investors, they appear to have some businesses will be sold in 2009 to
way to go or some rethinking to do. a company controlled by Temasek,
Visit www.accaglobal.com/publicinterest/ the government’s investment arm.
activities/research/reports/global_integration/ This corporatisation should enable
rr_104 to view a copy of the report. the airport to capitalise on new
opportunities while retaining its
talent, government officials said.
Changi Airport handled a

IF PREPARERS INTEND TO MAKE NARRATIVE record 36.7 million passengers in

2007, making it the sixth busiest

REPORTING RELEVANT TO INVESTORS, THEY airport in Asia. It expects to handle

as many as 50 million passengers in
APPEAR TO HAVE SOME RETHINKING TO DO. five years. Analysts reckon Changi
could be worth anywhere between
US$1.5–2bn.
dispatch
page 6
student accountant talks to the five Simpson scholarship
winners of 2008 to find out what the award will mean to them
and their studies.
SIMPSON SCHOLARSHIP:
2008 WINNERS
As announced in the October 2008 issue of
student accountant, the first winners of the
Simpson scholarship are Mahfuzur Rahman from
Bangladesh, Sharon Chiyangwa from the UK,
Farida Asgerali from Tanzania, Tetyana Merenyuk
from the Ukraine, and Chipambaniso Chongo
from Zambia.
Mahfuzur Rahman
Mahfuzur Rahman hopes to run his own business
within the next 10 years. ‘By winning the Simpson
scholarship, the pressure of finding the money to
study has been released,’ admits Mahfuzur, who
aims to complete his ACCA Qualification as soon
as he can.
‘I also hope that winning the scholarship will
help me to get a better job in the future because
potential employers will value my achievement,
my work, and my qualification.’ Mahfuzur believes
that he, as an ACCA student, has responsibilities
towards the profession. ‘Accountants need to make
sure that businesses are run with ethical and social
business practice so that people gain complete
trust in the accountancy profession.’
Sharon Chiyangwa
Sharon Chiyangwa has been passionate about
student accountant
NOVEMber/DECEMBER 2008
accountancy since she was 14-years-old. ‘Most
of my friends told me how challenging it is to
obtain the ACCA Qualification, but this only made
me more interested. I want to prove myself, and
having ACCA will open doors for me,’ says Sharon.
Sharon aims to complete her ACCA
Qualification in the next two or three years and
is hoping to join an accountancy firm to help
develop her skills. ‘Winning the scholarship has
taken a burden from my shoulders. I am relieved
that I won’t have to worry about exam fees or
subscription fees, and can concentrate on getting
my qualification.’
She acknowledges that it is not going to be
a smooth road. ‘I will use my past experiences in
the best way I can to ensure that I stay at the top.
One day I might find myself leading, if not owning,
a big accountancy firm – or better still – leading
people from dreamers to achievers.’
Farida Asgerali
Farida Asgerali believes that realising her
potential doesn’t end at achieving the ACCA
Qualification, and eventually working for
a reputable organisation with a coveted job
title and an attractive financial package. ‘It has
far deeper implications besides the obvious
professional accomplishment for myself. It is the
ability to fulfil the young hopes and ambitions of
my two teenage sons at the right time and age
of their lives. One wants to become an engineer
while the other, an architect. These aspirations
are intertwined with my own to be able to provide
the same for them, and the hope of achieving this
is my main source of motivation, providing me
with the drive and perseverance to keep aiming
higher, and succeeding too.’
Tetyana Merenyuk
Tetyana Merenyuk ultimately aims to develop the
accountancy profession in the Ukraine. ‘My main
dream is to become a tutor and to increase the
quality of education in my country. The knowledge
that I get from my ACCA studies and my job at
PricewaterhouseCoopers Ukraine will help me to
achieve that. I want to realise my full potential.
‘The ACCA Qualification will be a very
important step forward in my career and my
personal development,’ Tetyana adds. ‘From my
ACCA studies, I receive valuable knowledge that I
am sharing and will be sharing in the future with
my colleagues, clients, and friends.’
Chipambaniso Chongo
Winning the scholarship has motivated
Chipambaniso Chongo to complete the ACCA
Qualification as quickly as possible. ‘My biggest
joy is that I now have the option to study full time
and can concentrate, without having to worry
about money pressures,’ she says. ‘Qualifying
for me is an issue that goes to the very core of
who I am and what I aspire to be. It represents
the fact that I have what it takes to be successful
and that all things are possible. I have a dream
that one day I will be a qualified and in-demand
professional accountant. It is my deepest desire to
add value and I believe that education, especially
professional training, is key to success for me.’
‘The Zambian accountancy body, ZICA,
has done a tremendous job in regulating the
accountancy profession, and I want to fully
participate in this by helping to establish a
mentoring programme that will target trainees
and help them to gain awareness of ethical and
professional conduct,’ says Chipambaniso.
Scholarship benefits
The Simpson scholarship winners will have
their exam and subscription fees covered until
they become members, or for up to five years.
In addition to the financial support, scholarship
winners also receive complete sets of ACCA study
materials from ACCA’s official publishers BPP
Learning Media or Kaplan Publishing.
The scholarships have been made possible by
a bequest from Muriel Simpson, FCCA, who left
money in her will to fund the further education
of ACCA students who have already proven
themselves to be of sufficient merit and distinction
in ACCA Qualification exams.
DISPATCH
PAGE 7
SUSTAINABLE AND
RESPONSIBLE BUSINESS
SMALL AND MEDIUM-SIZED ENTERPRISES: THEIR ROLE IN THE SUSTAINABILITY DEBATE
ACCA says that small businesses can be sustainable and responsible, and that these two
worthy attributes are not the sole domain of large business.
In the UK, according to the Carbon Trust, small
and medium-sized enterprises (SMEs) generate
a quarter of carbon dioxide emissions a year.
So they have a part to play in sustainable
development (SD) and corporate and social
responsibility (CSR).
ACCA offers guidance to SMEs on how to
ensure that sustainability is integrated into all
levels of the organisation, including:
implementing energy efficiency measures –
reducing electricity use, using more efficient
office equipment
reducing paper use – having a default of
double-sided printing and reducing printing in
the first place
employee satisfaction – engaging regularly with
employees to ensure satisfaction levels are high
and making changes to conduct where needed
education of employees on sustainability
issues to ensure that everyone is committed to
driving improvements and change.
MAKING SUSTAINABLE ACCOUNTING TRULY TRANSPARENT
Revised standards published to make CSR and sustainability reporting more credible.
FIND OUT MORE ABOUT THE REVISED ACCOUNTABILITY CSR STANDARDS
WWW.ACCOUNTABILITY21.NET/DEFAULT.ASPX?ID=228
Rachel Jackson, ACCA’s head of social and
environmental issues, said: ‘ACCA believes that, as
well as being compliant with all applicable social
and environmental regulations, because of their
economic and social significance, SMEs should
be included within all voluntary SD and CSR
programmes to the greatest extent possible.
‘It is ACCA’s policy to work with relevant small
business groups to ensure that SME initiatives in
the SD and CSR area are appropriately targeted
and proportional and that such initiatives benefit
rather than stifle enterprise and innovation in
the sector.’
In its recent policy document called Going
Concern? ACCA reported that SMEs account for
the majority of economic activity. For example, in
the EU, there are approximately 23 million SMEs,
constituting 99% of all enterprises. The sector
generates two-thirds of all private sector jobs,
some 75 million, and more than half (52%) of
private sector turnover is generated by SMEs.
ACCA welcomes two standards that will make
an immediate impact on corporate reporting for
sustainable development.
The standards, AA1000 Assurance Standard
and AA1000 AccountAbility Principles Standard,
are published by AccountAbility, the international
organisation which promotes accountability for
sustainable development. They result from an
innovative, wiki-based web consultation to revise
the existing assurance standard.
David York, head of auditing practice at
ACCA, said: ‘Both standards are important
because they will be used around the world
in connection with the sustainability and
corporate and social responsibility strategies of
major companies.
From its Going Concern? report, ACCA makes
a number of recommendations:
Governments should review the incentives
provided by SME corporate taxation systems
to increase the propensity of the SME sector to
invest in cleaner technology.
SMEs should become more proactive in the
unfolding CSR debate and increase their profile
and contribution within the growing number
of initiatives, guidelines and standards being
developed.
Governments should produce guidance to help
SMEs measure their key environmental and
social impacts.
Global Reporting Initiative (GRI) should
develop a more accessible version of its
current sustainability reporting guidelines for
smaller organisations.
Visit www.accaglobal.com/pdfs/technical/tech-gc-
001.pdf to read the full Going Concern? report.
‘Over recent years, the principles have guided
companies by providing a framework for increasing
the transparency of sustainability performance. By
revising and splitting the principles, AccountAbility
has made them more easily accessible.’
York explains: ‘The Assurance Standard itself
has been aligned to the revised principles. It is
designed to work well with reporting standards from
organisations such as the Global Reporting Initiative
(GRI) and now acts as an umbrella over other
assurance standards. ACCA, through membership
of the AccountAbility Technical Committee, has
been actively involved in the development of these
standards, which we see as making a substantial
contribution to improved sustainability performance
and the assurance of public reports.’
LEARNING CENTRE STUDENT ACCOUNTANT
PAGE 8 NOVEMBER/DECEMBER 2008
3 THINGS YOU
SHOULD KNOW ABOUT
DISTANCE LEARNING
YOUR TIME
Students have been learning via correspondence
for decades – but the internet is now making
distance learning much more accessible and
convenient. Not only do you enjoy the flexibility
of choosing when and where to study – as
well as the opportunity to stay in employment
while you learn – you can benefit from greater
communication with fellow students and tutors,
through online discussion forums and feedback
sessions. And there’s no need to take time out
to attend scheduled lectures.
THE CATCH?
Distance learning doesn’t suit everyone. You
may be master of your own destiny but you
could end up feeling isolated – some students
say they’re less motivated without face-to-face
interaction with peers. Others find it difficult
to balance studies with home life and work,
without a firm timetable to stick to. And the
flexibility of being able to take a planned
break from your studies isn’t necessarily all
it’s cracked up to be and many students never
return after taking time off.
WHAT TO EXPECT
Results indicate that students who study at
a distance perform just as well as students
in the classroom. Critical success factors
include taking responsibility for your own
timetable and ensuring that tasks set by
tutors are completed as conscientiously as
if you were submitting them in person. Take
self-assessments seriously and incorporate
feedback into your learning. Set regular
time aside to reflect on your learning before
proceeding to the next stage of your studies.
PROBLEM SOLVED
IF I VOICE CONCERNS
OVER THE ETHICS OF MY
BOSS’S BEHAVIOUR, I RISK
MY JOB – BUT I DON’T
WANT TO COMPROMISE MY
PROFESSIONAL VALUES. HELP.
ETHICAL
DILEMMA
Wrongdoings in the office pose a dilemma for everyone. Doing the ‘right
thing’ might put your livelihood in jeopardy. Yet, so can doing the wrong
thing – it’s a delicate balance.
First of all, reporting to the boss doesn’t mean you should condone
unethical practices. And as a professional accountant, if you fail to mention
knowledge of something you know to be a breach of ethics, you may suffer
consequences at a later stage (and not just with your own conscience).
If you feel awkward about raising your concern, how much more
awkward will you feel if you don’t? And whether it’s entering the wrong
figures in a ledger, claiming questionable expenses, falsifying timesheets or
over-inflating costs in a quotation, once it’s done, it’s done – your complicity
could easily be used against you. Your boss may even try to blame you, or
deny knowledge of having instructed you in the first place (especially if no
written instructions exist). Don’t trust someone who asks you to trust them,
when you know they’re betraying someone else (eg your employer, a client
or supplier).
Is it possible for you to buy time or to suggest that what your boss is
proposing could be interpreted as unethical further down the line, should it
come to light? By relaying this in an e-mail, you’ll also have written evidence
of having raised your concern (something your boss will be mindful of)
and if you can blind copy your message to a trusted colleague, even better.
Strive to find an alternative course of action that complies with a sound
ethical approach.
Your other option is to go along with your boss’s wishes. But
imagine that sick-to-the-stomach feeling – the fear of being found out,
the bad publicity, perhaps loss of your job, or even expulsion from
your professional membership body. Do the right thing; you know it
makes sense.
Work-related problem? e-mail studentaccountant@accaglobal.com
LEARNING CENTRE USEFUL WEBSITES
PAGE 9 WWW.WIKIPEDIA.ORG
WWW.WETPAINT.COM
WHAT DO STAR TREK FANS,
DELOITTE DIGITAL, THE GREEN
PARTY OF CANADA, AND THE
NATIONAL UNIVERSITY OF
SINGAPORE HAVE IN COMMON?
THEY ARE ALL USING WIKIS TO
IMPROVE COMMUNICATION.
TALKING
TECHNOLOGY
WIKI
WONDERLAND
What do Star Trek fans, Deloitte Digital, the Green Party of Canada,
and the National University of Singapore have in common? They are all
using wikis to improve communication.
Wikipedia may be the best known wiki on the web, but it’s just one
of the many being used by groups of friends, co-workers, team mates,
and people who share common interests. So just what is a wiki? It
is one of the fastest, simplest, and most effective ways of enabling
any group of people with internet access to collaborate, aggregating
and sharing information by creating and editing linked web pages.
The originator of the wiki concept defined it as ‘the simplest online
database that could possibly work’.
Because of the way wikis work, they can be used to quickly
and easily create, modify, and link web pages. There is almost
no administrative effort involved, you don’t need any technical
knowledge, and users can shape their own site structure or allow
it to develop organically as the wiki evolves.
Wikis can be used to collaborate with customers and clients,
create and update documentation, build online communities,
manage projects, organise events, and share ideas and
information, without the need for distribution (via e-mail or hard
copy), so they aren’t dependent on a central distribution centre
or a linear distribution chain. They can be used as easily by seven,
700, or even 70,000 people. Wikipedia has more than 75,000
active contributors working on more than 10,000,000 articles in
more than 250 languages, which tells you something about how
easy they are to update once they’re in place.
Some wikis are public efforts that can be updated by anyone,
others are private wikis with restricted access, and there are various ways of
building and maintaining them. You can start from scratch, using your own
server to host your wiki, or run it on a corporate intranet (which is managed
in-house or hosted externally), and then build your wiki, or wikis, using the
‘wiki engine’ of your choice.
And there are hundreds out there. They range from MediaWiki
(www.mediawiki.org) which is free (and used by Wikipedia), to TeamPage
from Traction (http://traction.tractionsoftware.com/traction), a ‘fully-featured
enterprise knowledge management platform’ that’s a popular choice for
corporate intranets (and is free until you have more than five users).
The simplest approach to creating a wiki is to let someone else ‘host’
it for you, and there are plenty of free and low-cost systems out there
designed to help. These include www.wetpaint.com (which is free) and
www.pbwiki.com (which is free until you have four or more users). This
approach is the most straightforward and cost effective, so it’s the one
favoured by most individuals and organisations.
As a student accountant, you may already have encountered wikis;
they’re popular in the education sector and their use in business is
increasing. If you haven’t come across wikis yet, make a little time and
explore the possibilities. Wikis have the potential to dramatically improve
communication and collaboration for organisations of all shapes and sizes,
and if current or future employers don’t appreciate this, you can make a good
impression by enlightening them.
LEARNING CENTRE
PAGE 10
ONLINE
FAIR VALUE
ACCOUNTING
Fair value accounting and the practice of
‘market-to-market’ have been the messengers
of doom in the world’s current economic
crisis, so politicians, regulators, banks,
and many businesses have called for its
suspension, while institutional investors and
standard setters have championed its cause.
As a student accountant you need to look
beyond the media hype and political posturing.
Do a little ‘due diligence’ work and then make
up your own mind. The following websites
can help.
Start at the source with a visit to
www.iasb.org. If you search on ‘credit crunch’
you will find a primer on the subject from the
International Accounting Standards Board and
its chairman Sir David Tweedie.
The International Monetary Fund’s take
on fair value, based on recent research, is at
www.imf.org/external/pubs/ft/survey/so/2008/
POL100708D.htm; you can get a US-oriented
investor’s perspective at www.moneymorning.
com/2008/10/08/fair-value-accounting/; and
at www.voxeu.org/index.php?q=node/2407
you will find a suggested alternative to
mark-to-market.
If you want to take a wider perspective you
can read about the role fair value played in the
Enron crisis at http://eric.exeter.ac.uk/
exeter/bitstream/10036/29942/1/
accountingpapers0609.pdf; for a broader
historical perspective (from Ernst & Young)
visit www2.eycom.ch/publications/items/
ifrs/single/200506_fair_value/en.pdf; and
www.financialweek.com/apps/pbcs.dll/
article?AID=/20081005/REG/810039953 is
also worth a very brief visit, if only because the
image you will find there (arguably) says it all.
But bear in mind that this is a fast moving
area. If you want to keep up with issues,
Google the words ‘fair value’ every couple of
days, and read through some of the latest
press coverage.
Favourite websites? e-mail
studentaccountant@accaglobal.com
STUDENT ACCOUNTANT
NOVEMBER/DECEMBER 2008
BOOK
BRILLIANT
NETWORKING BY
STEVEN D’SOUZA
Anyone with this book in front of them will
want to get into it immediately. The fluorescent
cover with its bright white text is not easy on
the eye; it encourages you to start reading just
to escape the glare. Once inside, things take on
a more restful shade appearance. There’s an
abundance of grey boxes, used for highlighting
tips, case studies, and exercises for readers
to complete, plus masses of white space for
making your own notes. If you filled in all
the blank spaces in this book you could end
up doing more writing than the author. This
generous layout makes it easy to read, dividing
ideas into small segments with key points as
pull quotes, supported by exercises, definitions,
and examples.
Twenty-two short chapters are grouped into
five sections. The first two focus on preparation
for effective networking which the author defines
as ‘the art of building reciprocal relationships
that help individuals and the community as
a whole achieve their goals’. There’s a strong
emphasis on networking not being a ‘me,
me, me activity’. Readers are prompted to
assess their networking skills, provide their own
definitions, refute myths, and set goals. Having
encouraged this, the author moves on to how
to build a network and find the right groups to
join. This section includes a useful chapter on
virtual networking with advice on using blogs,
wikis, and social networking sites. Part 4 has five
chapters on actually doing it – making a good
first impression, effective business card use, the
art of conversation. Just in case those techniques
don’t work, there’s also a chapter on handling
rejection, where the advice is basically, get over
it. The final section is devoted to managing and
growing your networks over time. The language
is generally chatty and straightforward. The main
points are well explained and reinforced with tips,
anecdotes and exercises.
POINTS ARE WELL
EXPLAINED WITH TIPS
AND EXERCISES.
If you find approaching a person or group of
people you don’t know difficult, this book offers
props and techniques to help you overcome
feeling tongue tied and awkward. It deals
effectively with activities such as finding groups
to join, starting and finishing a conversation,
remembering names, joining a group
conversation, and asking for what you want.
Although much of the advice is basic
common sense, it does no harm to be reminded
that you should listen carefully, ask thoughtful
questions and smile to make yourself appear
approachable. If you find it easy to meet new
people and start conversations with strangers
then this book will not reveal anything new or
startling, but may provide insights into why some
events and meetings go better than others.
Irene Krechowiecka is a careers coach
and journalist
Brilliant Networking, Steven D’Souza,
Prentice Hall, ISBN 9780273714842
learning centre
page 11
GET THE BEST
FROM YOUR TUTOR
If you’re studying at college – even if you’re
studying using distance or online learning – the
chances are that your contact with tutors is
largely confined to listening in lectures or taking
feedback on coursework. Yet many tutors want
to give much, much more. It’s down to you to
take responsibility for making that relationship
flourish and work to your advantage.
A win-win situation
A good tutor will provide information and
encouragement on a host of issues relating to
your professional studies, or even a sympathetic
ear on more personal matters. And they won’t
necessarily regard this as a heavy burden placed
upon them – it’s in your tutor’s interests to
support you and ensure you do as well as you
can on the course. And in any case, most tutors
derive great job satisfaction from getting involved
and making a positive difference to
the success of their students. After
all, how well you and your fellow
classmates do in your exams will
CALUM ROBSON
eXPLAINS HOW
TO MAKe THe
MOST OF THe
TUTOR–STUDeNT
ReLATIONSHIP AND
WORK TOWARDS
ReALISING YOUR
TRUe POTeNTIAL.
USeFUl WeBSite
www.accaglobal.com/students/study_exams/tuition
reflect on your tutor’s own performance. And a
productive tutor–student relationship can make a
real difference to both parties’ enjoyment of the
learning experience.
How often have you struggled to find the
optimum study technique? Your tutor will
have years of experience advising students on
alternative ways to study (for instance, using
visual aids). Remember, if you keep on doing
things the same way, you’ll keep on getting the
same results – why not ask your tutor for advice?
They will have come across the same challenge
facing scores or even hundreds of students
before you.
When obtaining feedback on
coursework or mock exams,
don’t hesitate if you’re unclear
about what you’re being told.
Ask if you had understood
the questions correctly, if
you structured your
answers the
right way,
if you had revised and proof-read effectively and
also about your presentation. Your tutor will have
a firm grasp of what markers will be looking for in
the ‘real’ exam.
Take responsibility
Have realistic expectations – your tutor is there to
help you help yourself, not to do the work for you.
You have your part to play too. Demonstrate
your commitment by turning up on time and
completing coursework as required. If you have
a question about certain aspects of the learning
material, show that you’ve at least made an effort
to understand what you’ve been reading – and
that you don’t simply want your hand held. Be
independent and industrious – let your tutor see
notes you’ve made in class or while revising.
You’ll ultimately get more from a tutor if they
can see for themselves that you’re dedicated
to passing.
LEARNING CENTRE STUDENT ACCOUNTANT
PAGE 12 NOVEMBER/DECEMBER 2008

student accountant would

like to hear from you if you
have recently changed jobs
or been promoted – showing
how your careers progress as
you gain more experience.
Click on the changing jobs
link at www.accaglobal.
In Pakistan, ACCA student Muhammad Farrukh
com/students/publications/ Bashir has become an audit supervisor at
student_accountant and BDO Ebrahim & Co Chartered Accountants.
Based in Karachi, he will be responsible for
tell us about your move. initiating and finalising external and internal
audit assignments of both public and private
limited companies from different sectors. He
will also report to managers and partners on
working and audit staff performance. Prior to
this, he was senior auditor at S M Suhail & Co
Chartered Accountants. Also in Karachi, ACCA
student Rabia Qavi Khan has been appointed
as a customer fulfilment manager at NIB Bank
Ltd. In her new role she will be responsible for
developing and conducting training programmes
to establish high-level skilled staff and successful
delivery of customer touch points. She will
also track the complaint management process,
and ensure that all complaints are resolved to
customers’ satisfaction and within the agreed
timelines. Previously, Rabia was a marketing
analyst at KASB Investment Group.
In Qatar, ACCA student Javed Kabiruddin
Jiwani has become an accountant at J. Ray
McDermott Eastern Hemisphere Ltd. Based in

7 4 1 5 4
2 4 4 7 2
6 5 3 8 8 3 7 1
3 1 6 2 2 6 4
9 1 9 8 5 1
8 4 9 7 5 9 7
Difficulty rating

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 LEARNING CENTRE
PAGE 13
MOVING ON?
Doha, Javed will streamline bills payable and
process payments done at the Dubai branch,
as well as working on other accounting areas
in the Doha branch. Prior to this, he was a
business manager at Lithotech Engineers in
Mumbai, Thane.
In the UK, ACCA student Ilona Radford
joins Animal Health as an assistant management
accountant. Based in Worcester, Ilona will provide
stakeholders with accurate and timely performance
management information, measure actual
performance against key performance indicators,
and identify areas for budgetary review. Previously,
she was a location accountant at Letheby &
Christopher in Cheltenham. In Uxbridge, ACCA
student Bharat Shah has become a lecturer in
business at Uxbridge College. He will teach the
BTEC National and Higher National Diploma in
Business. Prior to this, Bharat was a lecturer at the
College of Accountancy and Management Studies
in Greenford, London.
In Nigeria, ACCA student Nnamdi Peter
Ezenwani has become a management trainee at
Cornerstone Insurance plc. Based in Lagos, his
duties will include assisting the unit head with
6 3
4 1 5 3 7 6
2 5
4 7 6 and highlighting significant
1 financial statements as per IFRS.
9 2
Difficulty rating
6 1 8 Karachi, Pakistan.
8 3 1 5 4 9 Bilal Bari has become an
5 3
CHANGING JOBS?
WWW.ACCAGLOBAL.COM/STUDENTS/PUBLICATIONS/
STUDENT_ACCOUNTANT
the preparation and monitoring of the annual
budget, weekly performance reports, and monthly
performance reviews. In Abuja, ACCA student
Abdullahi Bello has been appointed as head of
transaction security at ChamSwitch Ltd. In this
new role, he will manage the transaction security
department, develop policies and procedures to
secure electronic payment transaction, investigate
all reported cases of fraud both within and outside
the company, and he will also be in charge of
internal control and risk management. Previously
he was deputy detective superintendent at the
Economic and Financial Crimes Commission
in Abuja. In Warri, ACCA student Francis
Chavwuko Okoro has joined Felix Ogbodu & Co
Chartered Accountants as an audit senior. His
main responsibilities will include auditing clients,
assisting the principal partner to effectively
manage the practice aspect of the firm, carrying
out on-the-job training of junior employees, and
representing the firm in tax matters. In his previous
role, he was a senior accountant at Rhokyn Int’l
(Nigeria) Ltd in Warri.
In the United Arab Emirates, ACCA student
Asif Raza joins Imdaad LLC, in Dubai, as an
accountant. In this new role
he will be responsible for
preparing bank and staff debtors
reconciliations, controlling
and maintaining the general
ledger, posting the monthly
depreciation, corresponding
with banks, reviewing the TB
movements, and preparing the
Prior to this, Asif was an audit
semi senior at Grant Thornton in
In Ireland, ACCA student
assistant financial controller at
Photologic. Based in Dublin,
he will be responsible for
designing and writing reports, payroll, and bank
reconciliation. Prior to this, he was an accounts
assistant at Independent Clothing in Dublin.
In Poland, ACCA student Jakub Pach
joins Avon EMEA Finance Service Centre as an
accounting specialist. Based in Warsaw, he will be
responsible for accounts payable for inter-company
transactions. Previously, Jakub was an F&B cost
controller at Millennium & Copthorne Hotels in
Gatwick, UK.
PROMOTIONS
In Pakistan, ACCA student Ahtesham Zulfi has
been promoted from senior audit supervisor to
manager, audit and assurance at Nasir Javaid
Maqsood Imran Chartered Accountants. Based in
Lahore, he will be responsible for managing audit
staff, and planning, and finalising audits.
In the UK, ACCA student Tobi Labeodan has
been promoted from finance assistant to finance
manager at ENTRUST in Manchester. Tobi’s main
responsibilities include budgeting and budgetary
control, monthly management accounting, and
information reporting. In London, ACCA student
Mohammad Ayaz Yousuf has been promoted
from accounts clerk to accounts assistant at
Walton Estates. His main duties will include bank
reconciliation, invoicing, payroll, and dealing with
bank queries.
In Nigeria, ACCA student Peter Adegoke has
been promoted from cash management officer to
compliance officer at Fidelity Bank plc. Based in
Lagos, Peter will be responsible for monitoring
and rendering periodic money laundering reports
to regulatory authorities, responding to audit
enquiries from customers’ external auditors,
responding to regulatory authorities, other banks
and financial institutions investigations, and also
monitor, advise and assist other employees on
AML, KYC, and CDD issues.
In the Slovak Republic, ACCA student Emilia
Garaiova has been promoted from consultant to
senior consultant at Deloitte in Bratislava, where
she will be in charge of consulting services.
LEARNING CENTRE PER ANNUAL RETURN
PAGE 15 WWW.ACCAGLOBAL.COM/STUDENTS/TRAINING_CAREERS/PROFESSIONAL
For ACCA student Abdullah Al Mamun, a
career in accountancy began in teaching.
Originally from Dhaka, Bangladesh, Abdullah
was a CAT tutor: ‘I taught at the School of
Accounting and Finance Studies, and the
Central School of Accounting, both in Dhaka,’
he explains. ‘However, I did not really want
to be a tutor and so I joined an IT company,
the DNS Group, as an audit executive. Having
started my ACCA studies in Bangladesh, I
decided to move to the UK to take the rest of
my ACCA papers, because I wanted a better
standard of education. My plan was then also
to study for an MBA in finance.’
Now settled in London, Abdullah
DHAKA has already realised the value of ACCA’s
international reputation. ‘The fact that I was
an ACCA student certainly helped me find my
LONDON current job,’ he explains, ‘just as it helped me
find a job in Dhaka.’
Abdullah is now working at Asad
DHAKA Rahim and Co, a firm of chartered certified
accountants: ‘I am involved in preparing the
financial statements for our clients, mainly
small and medium-sized companies. I handle
VAT and tax calculations, and undertake some
management accounting, such as sales budgets
and forecasting. I also prepare day books,
handle quarterly VAT accounts, manage bank
NAME reconciliations, and payroll.
ABDULLAH AL MAMUN ‘My current job is very different from my
previous role; as an internal auditor, there was
much more pressure on me – the company was
JOB TITLE much larger and the number of transactions
much greater. In my present company, my
ACCOUNTS ASSISTANT, duties are more focused. Also, when I was in
ASAD RAHIM AND CO Dhaka, all our accountancy work was done
either manually or in Excel – here we use
specialised accountancy software to prepare
COUNTRY accounts and to manage payroll. I really enjoy
working with this software.’
UK A different working style is not the only
change for Abdullah, who has moved continents
to further his career: ‘Everything in the UK is
good except the weather. However, living in
London is very expensive – Bangladesh now has
many more prospects for accountants holding
an ACCA Qualification, so in the future I expect
I will return to take advantage of the growing
number of job opportunities.’
ABDULLAH AL MAMUN TELLS STUDENT
ACCOUNTANT WHY HE DECIDED TO COMPLETE
HIS ACCA STUDIES AND FURTHER HIS CAREER IN
LONDON, AND HOW HE EXPECTS TO MOVE BACK
TO BANGLADESH TO TAKE ADVANTAGE OF THE
GROWING NUMBER OF OPPORTUNITIES THERE.
TO DO:
PER ANNUAL
RETURN
As we head towards the end of the year, it’s time to
reflect on 2008 and plan for 2009. An important
date in the ACCA calendar is 31 December – the
deadline for submitting your practical experience
requirement (PER) annual return.
Practical experience is one of the three steps to
ACCA membership, and key to developing the skills,
attitudes, and behaviours you need to be a qualified
accountant, and able to apply the knowledge and
techniques learnt through your exams. The PER
annual return is essential, allowing ACCA to track
your practical experience so we can let you know
when you are ready to apply for membership.
You should complete your annual return
through the online trainee development matrix
(TDM), accessed through myACCA. You can view
the performance objectives you have achieved
before confirming the length of time that you have
been in a relevant role since your last annual return.
There’s still time…
If you’re still working towards performance
objectives this year that are yet to be reviewed and
signed-off by your workplace mentor, then there’s
still time to complete these before your annual
return is due.
You and your workplace mentor should discuss
both the answers to your challenge questions and
your workplace performance. Your answers to the
challenge questions should demonstrate that you
have gained enough experience to have achieved all
the activities covered in the performance objective.
Your workplace mentor will then decide if you have
met all the requirements by referring to the detail of
the performance indicators.
If your workplace mentor decides that you have
not yet achieved a particular performance objective
then you should discuss this and ask for feedback.
Try and be positive; do not regard this as failure, but
instead as an indication that you need to focus on
a specific area of your work in order to achieve the
performance objective in the future.
Planning for 2009
Looking ahead to next year, start to think about
what you need to do for your PER. If you haven’t
started your PER, maybe you should think about
how you will get your practical experience and
achieve your 13 performance objectives. You
could start today by accessing your personal
TDM through myACCA, or by going online to
www.accaglobal.com/students/training_careers/
professional/ and finding out what you have
to do.
 PAGE 16
FEATURES

SURVIVING
THE TALENT
WHO WILL BE THE WINNERS
AND LOSERS AS THE CREDIT
CRUNCH IMPACTS ON
SKILL SHORTAGES AND
STUDENT ACCOUNTANT

CAREER PLANNING? CALUM

NOVEMBER/DECEMBER 2008

CRUNCHROBSON FINDS OUT

features
page 18
A
s the global economy goes into
meltdown, with governments,
economists, and financiers predicting
worse to come, the market for
accountancy skills is changing. The
experience and expertise in huge demand not
that long ago is becoming less marketable in
certain countries, while some accountants with
knowledge of specific industries or disciplines are
finding themselves highly prized by employers
– but often only if they’re prepared to make an
international relocation. So what is the ‘talent
crunch’ that’s emerging? And how could it affect
the career plans of today’s accountancy trainees,
the aspiring finance professionals of tomorrow?
International hotspots
According to specialist recruitment consultants,
demand for accountants appears to be holding
up, if not quite as fervently as a year ago. But the
difference now is that employers appear to be less
keen on importing skills from overseas – despite the
fact that global experience is becoming
more important. With hiring budgets
being cut, more effort is going
into attracting people –
native or foreign – already
in the country and who
have previously worked
internationally.
One of the regions
generally regarded as
not having been hit
so hard by
the credit
crunch –
yet – is
China, along
with its
immediate
neighbours.
Even financial services
markets in places like Hong Kong and Singapore
appear to be healthier and more sustainable than
US or European financial centres. However, they’re
no longer the magnet for accountants with banking
experience from London, Sydney, and New York
that they used to be.
Emma Charnock, who runs recruiters Hays
Accountancy & Finance’s Asian operations
from Hong Kong, says: ‘Demand has dried up
for overseas candidates in financial services,
while companies in commercial businesses
now only make critical hires or re-fills with
international candidates. There’s much more of
a domestic emphasis. Employers of accountants
are being far more circumspect about taking on
relocation costs.’
According to Charnock, the Big Four in China
have strong needs for accountants with knowledge
of IFRS and US GAAP, especially for positions in
Beijing and Shanghai. Local language ability –
either Mandarin or Cantonese – has also become
student accountANT
NOVEMBER/DECEMBER 2008
more of an imperative. Meanwhile, although many
eastern European economies are showing signs
of fragility, the Czech Republic continues to see
demand for accountants.
But Tomas Bergl, manager at Robert Half
Finance & Accounting in Prague, notes that
requirements have changed somewhat: ‘The
changes primarily relate to the need for knowledge
of International Accounting Standards, practical
experience gained at international companies,
and language skills – especially English but also
other European languages for work in shared
service centres.’
Because knowledge of Czech is required for
most jobs, Bergl says that employers there have
recently been confining international relocation – if
considered at all – to management positions. Skill
shortages exist but organisations are meeting these
by investing in greater training of locally based
staff, and sometimes even compromising on the
skills required.
Looking elsewhere on the continent,
Max Williamson, chief executive of UK-based
recruitment website CareersinAudit.com, which
specialises in promoting international job
opportunities, says that Belgium is still considered
‘as hot as any market in Europe right now’, while
in the UK, boutique financial services companies
unaffected by the sub-prime market are continuing
to recruit, and finding that they are able to hire
finance staff they may have been unable to attract
18 months ago.
The Gulf states have also been less affected by
falling financial markets. According to Maria Brown,
who runs Reed Accountancy in Qatar and recruits
for employers there, as well as in Bahrain and the
United Arab Emirates, demand for finance skills
is increasing within both local and multinational
companies: ‘The majority of candidates we place
have strong financial services experience or a Big
Four background.’
The experience in huge demand not
that long ago is becoming less
marketable in certain countries,
while some accountants with
knowledge of specific industries or
disciplines are finding themselves
highly prized by employers – but often
only if they’re prepared to make an
international relocation.
Particularly within financial services,
redundancies and restructurings in Europe,
Asia Pacific and North America have created
a larger talent pool for employers in the Gulf:
‘Many more people are re-evaluating their
career options,’ says Brown. ‘We’re seeing more
candidates exploring what’s available from a
global perspective. People are now considering
bringing their families so there’s more of a balance
here between the traditional single expatriate and
family-oriented relocator. Companies are prepared
to accommodate families, and there are lots of
excellent schools.’
Marimar Chapple, who places accountants
in the Caribbean and Bermuda for recruiters ASA
International, says: ‘The need for accountants
is still high in this region – in fact, firms are
considering students in locations like Bermuda,
with financial services experience in strong
demand. However, only certain qualifications are
recognised by local immigration and the credit
crunch has meant that some companies have
started to put some of their recruitment on hold.’
Knowledge of US GAAP and IAS are still prime
skills that gain candidates a significant advantage
in the Caribbean and Bermuda, although an
understanding of Canadian GAAP helps, along
with IFRS. Insurance or investment management
experience can also be a primary factor, especially
in offshore centres such as the Cayman Islands and
the British Virgin Islands.
The value of international experience
As companies increasingly conduct cross-border
transactions and establish themselves on the
ground in emerging markets, recruiters say that
accountants who are prepared to travel – whether
within their current job or to take up a new
post – may ultimately enjoy the best long-term
opportunities. And with markets exhibiting so much
volatility, that’s giving many accountants food for
features
page 19
thought. If employers are going to increasingly
value international experience, should they be
prepared to spend some time abroad in the future
– even when the global economy returns to some
kind of normality?
‘The Big Four are bringing a number of
departments across several countries under one
profit centre, with internal auditors required to
travel widely across Europe, sometimes globally,’
says Williamson. ‘It follows that those who are
willing to embrace this regionalisation will enjoy far
greater opportunities for career progression.’
Students who have embarked on an
accountancy career and are considering their
post-qualification options may be well advised to
think about how they can capitalise on the global
mobility offered by the ACCA Qualification – and
indeed, whether travel is now an imperative
in order to insure themselves against a similar
economic crisis that may strike in the future.
In the Czech Republic, Bergl emphasises his
belief that international experience is a major
advantage – although with certain
restrictions: ‘It’s often the main
requirement when recruiting new
employees for companies with foreign
ownership. However, a crucial aspect in
those cases is whether the international
company’s accounting follows local or
international standards, and of course,
if it’s local, then candidates will need
knowledge of CZ GAAP.’
Brown says that having an international
dimension to one’s CV is definitely important:
‘No job is ever secure for life. You may have the
opportunity to be involved in a currently booming
economy, whereas one that plateaus could
potentially mean you’ll suffer more. Gaining a
variety of international experience could mean
securing a long‑term career as the mobility you
would gain might allow you to become involved
in a greater range of projects or be useful to more
parts of a business.
‘If you’re working in audit or tax, then
experience of working with different businesses
internationally, not to mention the cultural
awareness you can gain by working abroad, adds
up to a big tick in the box of being a professional.’
Homeward bound
But Williamson says the credit crunch has been
reversing some of the migration trends that
accountancy job markets have witnessed in
recent years: ‘The slowdown in economies, and
the subsequent narrowing of opportunities for
career development, mean that many accountants
– for instance, those who have come to London –
have decided to cash in and repatriate.
‘While leaving London usually, although not
always, brings a drop in salary, many see the return
to their home country as a means of enjoying
greater levels of responsibility than they would in
the UK.’
Grahame Doyle, who recruits for Hays
Accountancy & Finance in Sydney, says that the
number of Australians leaving the country is
now being balanced by those who are returning
from places like London and elsewhere in
Europe. However, the loss of Australian talent
is still an issue: ‘Typically, people from the UK
or Europe are employed on temporary contracts
because of the work permit situation. So while
there’s still a demand for permanent staff, there’s a
restriction on supply which means that competition
for those people is increasing. Short-term relief via
international contractors is one of the solutions.’
And those opting to leave a country to
which they had emigrated don’t always decide
to make home their next destination. The lure
of relocation packages in parts of the world
they hadn’t previously considered can prove to
be irresistible, with the affluent Gulf states a
prime example.
‘Many companies here specifically promote
their jobs to candidates from other parts of
the world, as their international experience
will prove useful,’ says Brown. ‘Multinational
businesses – and Qatar is a good example of
where this is happening – may import their first
phase of talent via secondments from other
parts of their company. They will then fill jobs
with people who want to stay long term. But if
they’re expanding rapidly, as many organisations
here are, then there’s simply not enough talent
in the region, so those skills have to continue to
be imported.’
So the talent crunch has clear implications for
future career planning, with lessons to be learned
from how the economic crisis is affecting the hiring
strategies of companies struggling to ride out
the downturn.
But recruiters say one factor does worry
some candidates. Yes, accountants planning their
long-term careers may increasingly see travel
as adding value and a global dimension to their
CV. But on their return home, might employers,
while welcoming their international experience, be
nervous that they’ve caught the ‘travel
bug’ and be off globetrotting before
too long?
No, says Doyle: ‘That
may have been true in some
countries, although obviously
in Australia, travelling around
the world before settling back
home has been a tradition
for years. But now? An
international skill set is such
an asset that employers
are unlikely to let a
love of travel affect
their assessment.
Whatever gets
in the way, don’t
let that get in
your way.’
FEATURES STUDENT ACCOUNTANT
PAGE 20 NOVEMBER/DECEMBER 2008

SUCCESS AS A FINANCE DIRECTOR

DEPENDS AS MUCH ON LEADERSHIP,
PERSONAL IMPACT, AND
INFLUENCING SKILLS AS TECHNICAL
ACCOMPLISHMENT. STUDENT
ACCOUNTANT TALKS TO ACCA
MEMBERS WHO HAVE MADE IT TO FD
TO FIND OUT WHAT IT TAKES.
features
page 21

L
eaders are born, not made. Leaders
are made, not born. The debate has been going
on for centuries and shows little sign of being settled any
time soon, because leadership is an area where the black and
white certainties of quotes and proverbs have very little meaning.
Kings and queens are born into positions of power, politicians are elected as
representative leaders, and finance directors – FDs – get where they are by proving
their worth as they work their way up through the ranks.
‘If you want to become an FD you need to do what you do now very well, and
do what the people above you do too,’ advises Bryan Lawrie FCCA – and he knows
what he’s talking about. Lawrie is a full-time associate director with FD Solutions,
an organisation that provides flexible finance directors, so
he’s been the FD for a wide range of organisations,
including a construction company, marketing
and design business, drinks distributor, and
a corporate advisory and law practice. He’s
handled public listings, set up finance
functions, business planning, forecasting
and strategy, and more. But he made the
move to FD after more than a decade in
practice. ‘This is one of the two main routes
to becoming an FD,’ says Lawrie, who spent
12 years with an international accounting
firm where he was a director of the Business
Support Services division.
Starting out in practice then moving into
industry some time later in your career is a
route followed by many accountants who
eventually become FDs or chief financial
officers (CFOs). Jenny Gu, for example,
started her finance career and her ACCA
training in 1993 with the Shanghai firm
of Kwan Wong Tan & Fong (part of BDO
Binder Hamlyn). Four years later she entered
commerce with a move to the sports giant
Nike. Since then she has worked for the
company in China, Taiwan, and the US,
in roles ranging from financial planning
manager to FD.

Routes to the top

Not that experience in practice is a
pre‑requisite for the role of FD – anything but.
A finance career spent entirely in business is,
arguably, a much better preparation for the
role. ‘You need to be able to do the FD job
before you get it,’ says Lawrie, ‘so being in
commerce, working your way up through the
ranks, maybe going from the financial controller
(FC) to FD role, can be the best approach.’
Nick Payne FCCA spent the first decade of
his finance career working his way up through a number of utilities suppliers before
moving into the public sector, where he held various posts within the UK Ministry of
Defence. A stint as chief accountant for RAF Logistics Command led to the role of
FC for Equipment Support (Air), which led to the role of FD at the Cambridgeshire
Constabulary, a regional police force.
Specialising in a particular sector can help to speed your progress through
the ranks and increase your mobility. Dave Wilson is currently the CFO and
chief operating officer (COO) at Eazyfone, and although he has worked
in many sectors during his career, for the past decade or so all of
the high profile finance positions he’s held have been in the
technology sector: he was previously the CFO with
features
page 22
Codemasters Technology plc, and COO with a
division of Fujitsu.
As student accountants, you may be in the
early stages of your finance career, and it will
probably be some years before a post as an FD or
CFO starts to shimmer on the horizon. But if this is
where you want to be 10 years from now, there are
lots of things you can do to increase your chances
of success. ‘If you want to succeed as an FD you
will need a mix of qualifications, experience, and
personal qualities,’ says Karen Young, a regional
director with recruiter Hays Senior Finance, so
studying for a professional qualification is just the
first of many steps. ‘Your ACCA Qualification will
tell prospective employers that you can do what
you say you can from a technical point of view,’
she explains, ‘but first time passes in all of your
exams are really good too.’
The positions you take will, to some extent,
determine the experience you gain, so the
employment decisions you make now will influence
your marketability as you try to move forward. ‘I
see a lot of ACCA candidates with experience in
fixed assets, controls, accruals, and pre-payments,’
says Young, so take any chance you get to gain
experience in other areas, and try to become
involved in ‘projects’ such as change management
and systems implementation. Don’t wait to be
asked; you can make your own opportunities.
‘Volunteer to add value to the finance function,’
she advises, and then you can mention your
achievements in your CV and during interviews.
As long as you can cope with the day‑to-day
student accountANT
NOVEMBER/DECEMBER 2008
responsibilities of your job, doing a little extra
could have big benefits in the long term. If there is
no process manual for accounts payable, perhaps
you could produce one? Or maybe you could
offer to mentor a junior member of staff? Adding
value in this way will help to demonstrate your
management potential to your current employer,
and help you to impress prospective employers.
‘It’s important to show what you delivered, and
that you did so on time,’ adds Young. You also
need to make sure that you have a range of
well‑developed IT skills. ‘You will use all of them
at some stage of your career,’ she says, ‘so you’ll
want a mixture of hands-on Excel expertise and
higher level skills.’
Communication matters
At FD level, people skills are as important as
finance expertise. ‘Take any chance to manage
staff,’ says Young, because your interpersonal
skills will be as important as your technical
accounting skills later in your career. This is
confirmed by seasoned FD Lawrie, who puts
interpersonal skills at the top of his list of the
challenges facing an FD. ‘Knowing when to talk
to people, and how, will move you up the career
ladder,’ says Lawrie. ‘As an FD, it’s not enough
to be able to do the accounting and manage the
financial controls, you also need to be able to deal
with organisational politics. This will mean dealing
directly with the culture of the board, as well as
being the financial gatekeeper, and is likely to
extend beyond accounting and finance.’
The role of FD differs between organisations
of different types and sizes, but it is always about
more than the finance function. ‘An FD in a large
corporation has a team of bees doing the leg work,
but in a small organisation of 30 to 40 people, you
will know everyone and meet them every day,’ says
Young, and these different roles call for different
people skills.
In some scenarios, you may need to be good
at managing small teams, in others you may
need to manage large teams, and sometimes your
management responsibilities may require you to
manage other managers. In a large multinational
corporation, the role of the FD or CFO is very
outward looking, so you must be able to
communicate effectively with people – at all sorts
of levels – outside the organisation.
Beyond the finance function
In a multinational, you are unlikely to get involved
in day‑to-day recruitment decisions, for instance,
but this will be different in a smaller organisation.
‘You will also need to be able to find the right
staff for the job and keep them,’ says Lawrie, both
inside and outside the finance function. ‘If you
have a 20% growth projection you will need to do
everything and anything necessary to deliver on
it,’ he says, such as locating and incentivising the
necessary sales staff. At FD level you must look
beyond the finance function in other ways too. ‘You
will need to be able to develop an outward facing
business strategy,’ says Lawrie, one which takes
account of market pressures.
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BUILDING FUTURES
 features student accountant
page 24 NOVeMBeR/DeCeMBeR 2008

THE FUTURE
FUELLING
Victoria Morgan finds out
how acca students are
supported at energy giant
shell, a key player in the global
oil econoMy.

I
n my 27 years at Shell, I have seen a lot of changes and worked with a diverse
range of people,’ says Jim Robertson, VP Tax for Shell exploration and production.
‘Nowadays there is a greater emphasis on a robust controls environment after
the introduction of legislation such as Sarbanes–Oxley,’ says Robertson. ‘This was
taken very seriously in Shell. Lots of people were involved in examining the controls
framework, and it gave us an opportunity to standardise our processes which made us more
effective. The investment of money and hard work was worth it as we’re now stronger and
fitter; we now have leaner processes so people can do higher value work.
‘There are three key features – what Shell refers to as the ‘hard truths’ – facing us in the
oil industry: demand is accelerating as growing economies fuel their growth; increasing the rate
of supply is getting more difficult to achieve as the ‘easy oil’ is gone; and, as it becomes more
challenging to get oil supplies, users may revert to other fossil fuels such as coal, which will, in
turn, cause increased environmental problems,’ says Robertson.
Challenges in the oil industry mean that accountants are increasingly relying on scenario planning.
‘The US Securities and Exchange Commission (SEC) has published rules on how to define oil in the
ground for accounting purposes,’ says Robertson. ‘Accountants have to include a valuation of these
reserves in the balance sheet. Our engineers spend a lot of time working out how much oil there is in
our reserves and give us a range of figures. Our job in finance is then to make sure that what we put in the
balance sheet is fully compliant with the regulations.’
Another key issue is the cost involved in decommissioning oil rigs. ‘Oil rigs are very expensive to
decommission when they become obsolete,’ explains Robertson. ‘The decommissioning costs depend on when
the work needs to be done and on government regulations at the time and, as such, have to be estimated. The
finance team has to work closely with our engineers to generate as accurate an estimate as possible.
‘When graduates join Shell they are given a lot of responsibility,’ says Robertson. ‘An accounting
qualification is seen as a door opener – a passport to get into Shell. We have an extensive career
development programme which ensures that our finance graduates see different aspects of
the organisation.’
As senior sponsor for ACCA at Shell, and a member of the finance skills group, Robertson
is involved in encouraging people to build and maintain their finance qualification. ‘As
well as being vital for individuals to have a qualification, it is equally important for
Shell to have qualified people on its finance team,’ he explains.
Shell is an ACCA Approved Employer and supports ACCA students
with their exams, with tuition provision, and with their career
development and experience. Visit www.shell.com/careers
for more details, and to take the Gourami Business
Challenge, to win an offer of full employment.
 FEATURES WANT TO JOIN SHELL? TAKE THE GOURAMI BUSINESS CHALLENGE AND
PAGE 25 YOU COULD RECEIVE AN OFFER OF FULL EMPLOYMENT
WWW.SHELL.COM/CAREERS

PAUL LEMMENS
FINANCIAL AUDITOR,
INTERNAL AUDIT
Paul joined Shell in October 2007 and works in the internal
audit department in the European finance team. The audit
department comprises about 250 people performing over
400 audits a year. He sat his first ACCA exam in June 2008.
‘Our team works on a wide range of Shell businesses,
and does a range of audits including health and safety,
process technology, and financial. Internal audits take a
risk-based approach to the process that goes in to them
– especially important in a large company like Shell. The
audit results are presented in a report and include an
opinion detailing the gaps found in the control framework,
and suggestions for improvement.
‘Each area of the business, and the relevant manager,
is interested in the audit report, wanting to see progress
and developments, although ultimately it is the audit
committee of Shell which studies the reports in detail. We
report directly to the audit committee to ensure that we
remain independent of the finance department.
‘Members of my family are accountants and for that
reason I spent a lot of my education distinctly not wanting to
be one! Then I started studying – and found that accounting,
economics and finance were the most challenging subjects. I
decided to grasp this challenge and focus on these areas.
‘Because of my interest in the oil business and
associated environmental issues, I wanted to work for
Shell from an early age. I was very aware of energy issues,
carbon dioxide emissions and the Kyoto Protocol. I found
it fascinating, and still do. I believe that accountants and
finance professionals can be very influential within the
energy industry.
‘Businesses like Shell rely on engineering and technical
specialists to make the processes work. As well as looking
at controls, accountants and finance teams need to
engage with the technical specialists, and challenge the
wider Shell business. We aim to become finance partners
– working together with the business to look at the best
choices available.
‘Shell’s Graduate Develop programme gives me the
opportunity to do three jobs in the first five years. I’m
currently in my first role and I have been able to see a great
variety of Shell locations, activities and processes.
‘I’m interested in the commercial side of the business.
hen I want to develop my finance skills in corporate finance
The and investment decision making. I’m interested in learning
about the technical aspects of the business too – it will be
necessary for my career development to understand how
technology and processes help the business to grow.
‘In my job I see a lot of financial control and related
processes, and learn how they are executed. On-the-job
training is a good and efficient way to study – and enables
me to gain practical experience for ACCA membership too.
‘The Develop programme gives me the opportunity
to experience different types of training. Internal courses,
such as Shell audit methodology, changes in the finance
community, or web-based learning on IFRS or control
frameworks, all help me understand my ACCA studies, and
also help me do my job better at Shell.’
features
page 26
DAVID NGUYEN
PROJECT REPORTING ANALYST,
EXPLORATION AND PRODUCTION (EP)
David joined Shell as a graduate in 2005 and has
recently started working within exploration and
production (EP) projects. He sat his first ACCA
exam in June 2006.
‘Shell has a number of large upstream
capital investment projects around the
world. The projects typically include offshore
platforms, drilling wells, pipelines and so on.
The EP projects team report on how the project
is going, look at key messages, the schedule,
the budget and any concerns. With large
projects such as these, there is a great deal of
money at stake.
‘We form part of the finance function – major
projects make a significant difference to Shell’s
bottom line. It is vital to keep senior managers
‘ACCA isn’t just
an accounting
qualification,
more a general
business
qualification.’
student accountANT
NOVEMBER/DECEMBER 2008
and our CEO informed about projects, and
whether they are running on time and to budget.
‘We also liaise with the investment relations
team. We give them updates on how our
projects portfolio is developing as the investor
community takes a keen interest in this.
‘I have always been interested in finance.
Accountancy is but one branch of business,
and ultimately I want to become a business
person. This is why studying towards ACCA
is good for me because it isn’t just an
accounting qualification, more a general
business qualification.
‘I joined Shell as a graduate in 2005
and worked in the internal audit team. I was
involved in audits of different Shell business
areas – upstream (exploration and production,
gas and power) and downstream (retail and
refinery) – and this enabled me to gain a good
understanding of various Shell businesses.
‘While on the Develop programme, you get
support for your career development. This helps
you to make the most of the opportunities that
you identify by putting you in touch with the
right people within Shell.
‘I’m really enjoying working in the project
area – it is a growing area and offers lots of
opportunities. Projects are very prominent
because of the capital expenditure involved,
so my current role gives me a great deal
of exposure to senior managers. I also get
to speak to the technical team, assurance,
contractors, and finance people, which gives
me a good overview and a solid basis on which
to take my career forward.
‘As a Shell graduate, the choice you face is
how wide or how focused you want to be. The
programme is excellent because it gives you the
opportunity to explore lots of areas before you
make that choice.’
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features student accountANT
page 28 NOVEMBER/DECEMBER 2008
features
page 29

MAKE
YOUR
READING
COUNT
IF YOU WANT TO IMPROVE YOUR
CHANCES OF CAREER SUCCESS YOU
NEED TO IMPROVE YOUR READING SKILLS.
STUDENT ACCOUNTANT EXPLAINS
WHY AND HOW.

W
ords, words, words. Accountants have to be numerate, but
a 21st century finance professional also needs to be literate.
Your ability to communicate well both orally and in writing
will be a fundamental factor in your career success, your
reading skills will affect how well you communicate, and
your vocabulary will determine your capacity to make your reading count.
To understand ‘accounts payable’ you have to understand ‘creditor’; to
understand ‘creditor’ you have to understand ‘assets’; to understand ‘assets’
you have to understand ‘value’. As an ACCA student, you are most concerned
about technical concepts and terminology, and mastering these must be
your priority, but your ability to do this is influenced by your command of
non‑technical language, so don’t focus on the ACCA syllabus to the exclusion
of all else.
Try to read a wide variety of business and finance-related texts, from
annual reports and business plans to newspapers and magazines. It will
improve your understanding of the world of business and commerce, and
your ability to learn about accounting and finance. The bigger and broader
your vocabulary, the easier it is to understand trial balance preparation, learn
about transfer pricing, explain share capital and reserves, or any other aspect
of accountancy; whatever your level of technical competence, good reading
skills are vital.
At all stages of your career, you have to be able to learn effectively
and efficiently, under time pressure, and often at considerable depth. By
using strategies to help you read in the most efficient way, you can gain
the maximum benefit from your reading with the minimum effort, whether
you are trying to revise last year’s course notes or reading the notes to last
year’s annual report. So knowing which style of reading works best in which
situation, and applying it without thinking, is a skill that will always be useful.
Some of you are already (consciously or unconsciously) choosing your
technique according to your purpose, and some are not. Either way, there
will be room for improvement. If you don’t already do so, from now on,
before you read anything, ask yourself ‘why?’ – are you reading for pleasure
features
page 30
or background information? Are you searching for
information or reviewing a document? Are you
studying or revising for an exam? Knowing why you
are reading primes your brain, so it is better able to
make connections between what you are reading
with what you want to achieve.
The reason why you are reading also
determines the approach that will be most
efficient and effective. If you are reading a
newspaper article on corporate governance,
or ploughing through background information
on acquisitions and mergers, speed reading may
come in handy (see box: More haste, less
speed). If you are preparing for a class on the
top-down approach to planning audits, or
reviewing your lecture notes to determine what
to revise, skimming may be more appropriate
(see box: Be a better reader). But if you are
revising transfer pricing or trying to understand
IAS 39, you will need to be more thorough.
Different scenarios call for different
approaches. When you are studying, for example,
you may need to briefly scan the material to decide
what is relevant and discard what isn’t, but if
you want to learn or revise the material you’ve
identified, you will need to take an active approach
to reading it. It may help to make yourself a list
of related questions and read with these in mind:
understanding the answers can help you to create
a mental structure for the information. Writing
down the answers to your questions can create a
study guide that can later be used to review what
you’ve read, or to check what you’ve learnt.
On the day of the exams, of course, you will
need to take a very different approach to reading
– particularly if you want to make the best of the
15-minutes’ reading and planning time you are
given in all three-hour papers. Rather than skim
through the questions looking for key words from
those areas in which you feel most confident, use
the time to assess the possibilities more carefully.
Prioritise the order in which you are going
to answer questions, and identify optional
questions as those where you have the best
chance of scoring the highest marks. Look at
the requirements and sub-requirements, and the
available marks for each, and indicate how you
feel about them, perhaps with a tick or a cross.
It will help you to clarify the order in which to
answer questions on compulsory papers, and
which optional questions to avoid. This exercise
will also help you see that, despite their technical
content, some questions are easier to score
marks on because they are broken down into
multiple parts.
If, as well as studying for your ACCA exams,
you have been diligently trying to increase your
vocabulary and develop your reading skills, you
should be able to make a pretty good job of
answering even the wordiest questions. You will also
have increased your chances of developing into the
sort of numerate, literate, and erudite communicator
today’s finance profession demands.
student accountANT
NOVEMBER/DECEMBER 2008
MORE HASTE, LESS SPEED
As a student accountant and a finance
professional you will repeatedly need to
quickly read and understand large volumes of
information, so the magic of ‘speed reading’
can seem very appealing.
But before you go rushing out to buy a
self-help book, or sign up for a costly course,
there are some simple and inexpensive steps
that you can take to increase the speed at
which you read, and thereby improve your
retention levels.
Have your eyesight checked. It isn’t unusual
for people to read slowly because they have
an undiagnosed eye condition. Try to make
sure you get enough sleep, and avoid reading
without breaks for long periods of time: when
your eyes are tired you read less quickly and
less effectively.
Eliminate all distractions. Find a quiet,
comfortable place to read. Crowded rooms,
televisions, radios, mobile phones, and
background music are all best avoided. You
may think you read better when you’re listening
to your iPod, but you are deluding yourself:
you will be able to read much faster and more
effectively without it.
BE A BETTER READER
Reading efficiently can help you to save time
and cover a lot of ground, but it can also help
you to read more effectively by improving your
understanding and focus. The main strategies
are overviewing, skimming, scanning, intensive
reading, and critical analysis, and you will need
all, some, or just one of these, depending on
the scenario:
Ask yourself why you are reading and what
you are trying to achieve.
Skim first. Run your eyes over headings,
summaries, and first and last paragraphs
to get the main ideas without the detail. It
builds up an overview, and may allow you to
avoid further reading.
Scan for specifics. Identify those parts of the
text that contain the information you need
by looking for key words and phrases, then
read the relevant material close by.
Read intensively. After narrowing your focus
read actively, by highlighting, underlining,
and annotating. This emphasises
information in your mind and will help you
to later review important points.
Be critical. Don’t take anything for granted.
Ask questions as you read rather than just
trying to absorb everything.
Stop reading to yourself. To some extent we
all sub-vocalise, saying the words in our head
as we read them, moving our lips, or even
muttering the words under our breath, but this
means we can only read as fast as we can talk.
By increasing your eye span to take in more
words you can read much faster. If your eye
span is two words you will be twice as fast,
three words will be three times as fast, and if
you can read in phrases or groups of words you
will find yourself racing along.
Train yourself not to re-read. Most of us stop
repeatedly and skip back to re-read words and
sentences to try to make sure we understand
the meaning, but if you are really focused on
what you are reading this is unnecessary. Break
yourself of the habit with the help of a piece of
paper or index card, moving it down over the
page to mask the text after you have read it.
Vary your reading speed. It’s important
to realise that there is a trade off between
comprehension and speed, so before you start
reading a piece of material decide how fast
you intend to go. There will be times when you
need to read slowly and carefully if you are to
understand something.
 London
School of Business
& Finance

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technical
page 33

TECHNICAL
Not studying any of the papers that
these technical articles are relevant
to? Check out the exam paper
resources and archive of technical
articles on the ACCA website.
34 Single-tier dividends: the transition
Examiner for Paper P6 (MYS) Richard Thornton summarises
the transition arrangements between the imputation system
and the single-tier system – relevant to ACCA Qualification
Paper P6 (MYS)
38 Construction contracts
Bobbie Retallack outlines how to use IAS 11, Construction
Contracts in an exam question – relevant to ACCA
Qualification Paper F7
40 Interest rates and early settlement discounts
Examiner for CAT Paper 10 Ann Irons explains the difference
between simple and compound interest, and how to make
use of this knowledge to understand early settlement
discounts – relevant to CAT Paper 10
44 Accounting and organisational cultures
Graham Morgan describes the Financial Control Culture
and the Excellence/Service Culture and the type of
performance contracts associated with both – relevant to
ACCA Qualification Papers P3 and P5
48 Financial instruments
Tom Clendon discusses the facts and terminology of financial
instruments, and includes some exercises to test your
understanding – relevant to ACCA Qualification Papers F7
and P2
54 The importance of financial reporting standards to auditors
Examiner for Paper P7 Lisa Weaver provides guidance on the
financial reporting issues that require a detailed level of
knowledge, and those for which less detailed knowledge will
be expected – relevant to ACCA Qualification Paper P7
technical student accountANT
page 34 november/december 2008
SINGLE-TIER DIVIDENDS:
THE TRANSITION
RELEVANT TO ACCA QUALIFICATION PAPER P6 (MYS)
From the time of its introduction, income tax in Malaysia has operated on the full imputation system
when dealing with dividends. From January 2008, the imputation system is to be phased out and a
new single-tier system introduced. This article outlines the transition arrangements.
Most students will be familiar with the basics of the imputation system.
Shareholders who receive dividends are chargeable to income tax on the
gross amount of the dividend but they are given credit for the income tax
that the company has deducted at source. For an individual shareholder,
the tax credit is often more than the tax payable resulting in a repayment
of income tax. For a company shareholder, the imputed tax is not likely to
exceed the tax payable unless tax is payable at a lower rate, such as the 20%
rate applicable to small companies. The use of the word ‘imputation’ implies
that the shareholder’s credit is attributable to the fact that the tax which
the company pays on its income tax can be used to ‘frank’ the tax deducted
from dividends. Unless the company has paid sufficient income tax on its
chargeable income, the full amount of franking credit will not be available
and the company must then make up any shortfall. The system relies for its
effectiveness on measurement through the use of the ‘Section 108’ account to
ensure that the income tax paid by the company, calculated year-by-year on a
cumulative basis, is sufficient to match the franking credits that it purports to
give to its shareholders.
INTRODUCTION OF THE SINGLE-TIER SYSTEM
Starting from 1 January 2008, the full imputation system is to be phased
out and a new single-tier system introduced. This new system is simple in its
operation, with the key features being:
no deduction of income tax at source
no tax credit for shareholders
no tax liability for shareholders because the dividends are exempt from
income tax
no Section 108 account.
In principle, the new system applies to all dividends paid from 1 January
2008 onwards, but it is subject to the application of the saving and
transitional provisions.
These provisions allow a company to continue to pay taxable dividends
throughout a transitional period which lasts until the earliest of the
following dates:
When the company no longer has a Section 108 balance.
If and when the company abandons its Section 108 balance by
irrevocably opting not to continue deducting tax from dividends.
On 31 December 2013.
Apart from the references to Section 108, which comes under the Income
Tax Act 1967, and unless otherwise stated, all section references are to
Chapter II, Part II of the Finance Act 2007 which contains the saving and
transitional provisions.
Although the saving and transitional provisions will not be examined
under Papers 9 (MYS) and F6 (MYS), they are covered by the Study Guide for
Paper P6 (MYS) under the following headings:
A1 (e) (ii) (Individuals) Understand the tax treatment of dividend income
in the period of transition to the single-tier system
A2 (b) (vi) (Companies) Identify and calculate the amount of the
(Section) 108 balance during the period of transition to the single-tier
system
A2 (b) (vii) (Companies) Advise on the application of tax franking
to dividends paid or credited during the period of transition to the
single‑tier system
PAYMENT OF DIVIDENDS IN THE TRANSITIONAL PERIOD
During the transitional period, every resident company is required to
account for tax deducted or deemed to have been deducted. This is done by
submitting a return (Form R) to the Director General of Inland Revenue within
seven months of the close of the company’s accounting period.
Tax may only be deducted from dividends paid during the transitional
period if they are paid in cash in respect of ordinary shares. Other dividends,
including dividends credited, dividends in specie, and dividends on shares
which carry a right to dividend of a fixed amount or at a fixed rate or at a
fixed percentage of profits of the company are treated as single-tier dividends.
Generally, a company is entitled to deduct tax at the rate applicable when
the dividend is paid. However, where there is a change in the tax rate for
companies, the dividend may have to be regrossed. This is likely to apply if
the company does not have a 31 December year end because the rate of tax
applicable to the company is that for the year of assessment coinciding with
its basis period. Regrossing will also apply where a company fails to deduct
tax from a dividend when it is entitled to do so.
EXAMPLE 1
Finetune Berhad, which makes up its accounts to 30 June each year, had a
Section 108 balance available for use in the transitional period. The company
paid and/or distributed the following dividends during the year to 30 June 2008:
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1 Final dividend of 10% on 1 million ordinary shares of RM1 for RECEIPT OF DIVIDENDS IN THE TRANSITIONAL PERIOD
the year ended 30 June 2007, paid in cash on 30 August 2007, A shareholder who receives a dividend from a Malaysian-resident company
RM100,000 (gross). during the transitional period can ignore dividends which are exempt,
2 Special interim dividend of 25% on ordinary shares for the year to including single-tier dividends, as they do not form part of the chargeable
30 June 2008, made by distribution of shares in Sitting Pretty Berhad on income of an individual, a company or other person. Single-tier dividends are
15 February 2008, market value RM250,000. given a specific exemption under Paragraph 12B, Schedule 6 of the Income
3 Second interim dividend of 8% on ordinary shares for the year to 30 June Tax Act 1967. Taxable dividends do form part of chargeable income.
2008, paid in cash on 30 April 2008, RM80,000 (gross).
4 Dividend on 7% cumulative preference shares paid in cash on 30 June Taxable dividends and Section 110 set off
2008, RM35,000 (gross). Just as before 2008, taxable dividends received during the transitional period
5 Third interim dividend of 6% on ordinary shares for the year ended form part of the shareholder’s chargeable income and must be entered on the
30 June 2008, paid in cash on 30 June 2008, RM60,000 (gross). income tax return. There is also a set off, under Section 110 of the Income
This was declared from an exempt account attributable to the receipt Tax Act 1967, for the tax deducted, or deemed to have been deducted, at
of dividends paid by Sitting Pretty Berhad out of income exempted by source. However, the set off is not available to the shareholder if the dividend
reinvestment allowance. concerned is paid between the date of acquisition and the date of disposal of
the shares, and that time is less than 90 days, unless the shares acquired are
How should these be dealt with? listed on Bursa Malaysia.
1 Finetune Berhad is entitled to deduct tax from the final dividend on
ordinary shares paid on 30 August 2007. It is paid after the end of the EXAMPLE 2
company’s basis period for the year of assessment 2007, but Section 41 Referring to the facts of Example 1.
specifically provides for such a deduction. Tax should be deducted at the
rate applicable to the company at the time of payment, which is 27%. Madame Chee had held 30,000 ordinary shares in Finetune Sdn Bhd for
However, as the dividend was paid in the basis period for the year of many years. She acquired a further 20,000 shares on 4 April 2008 and then
assessment 2008, and the rate of tax for that year was revised to 26%, a disposed of the entire holding of 50,000 shares on 1 July 2008. Finetune
regrossing is necessary. This uses the following formula: Sdn Bhd is not listed on Bursa Malaysia, and so the tax implications for
Madame Chee are as follows:
1 xB Year of assessment RM
1-A Gross income from final ordinary dividend,
paid 30 August 2007 –
where: 30,000/1,000,000 x RM98,648.65 2007 2,959.46
A = the revised tax rate applicable to the company at the time of Tax credit – 30,000/1,000,000 x RM25,648.65 2007 769.46
payment of the dividend, and B = the net amount paid. Gross income from second interim ordinary
dividend, paid 30 April 2008 – RM50,000 x 8% 2008 4,000.00
The net dividend paid is RM83,000 (RM100,000 less tax at 27%). By Tax credit – RM30,000 x 8% x 26% 2008 624.00
applying the formula, the revised gross amount becomes RM98,648.65
(1/(1 - 0.26) x 83,000), and the tax deemed to have been deducted
becomes RM25,648.65.
2 Tax cannot be deducted from the special interim dividend distributed
on 15 February 2008 because it is a dividend in specie. Prior to
1 January 2008, there would have been a deemed deduction of
tax by using the regrossing formula. However, under the saving and
transitional provisions, this is not a dividend from which the company
is entitled to deduct tax because it is not paid in cash. There is no
need for regrossing and the dividend is treated as an exempt single
tier one.
3 Tax can be deducted from the second interim dividend on ordinary shares
paid on 30 April 2008 at the rate applicable at the time of payment, which
is 26%. The amount to be deducted is RM20,800 (RM80,000 at 26%).
4 Finetune Berhad is not entitled to deduct tax from the dividend on 7%
cumulative preference shares paid on 30 June 2008. Even though the
dividend was paid in cash, it is not in respect of ordinary shares, as
defined. Therefore, the dividend will be paid without deduction of tax as
an exempt single-tier dividend.
5 Tax cannot be deducted from the third interim dividend on ordinary
shares paid on 30 June 2008, even though it is in respect of ordinary
shares and in cash. First and second-tier dividends paid out of income
and dealt with as exempt by Paragraph 5 of Schedule 7A, Income Tax Act
1967, are excluded from the application of the saving and transitional
provisions. However, the exemption, and the consequent exclusion, of
the saving and transitional provisions does not endure for the benefit of a
third-tier dividend out of the same income. Paragraph 5 of Schedule 7A
applies to many other kinds of income exempted under the Income Tax
Act 1967, or under supplementary legislation.
technical student accountANT
page 36 November/december 2008
Only 30,000 shares qualify for the tax credit in respect of the 30 April
2008 dividend, as this was paid between the date of acquisition and the
date of disposal of the other 20,000 shares, a period of less than 90 days.
Nevertheless, the gross dividend in respect of the whole holding of 50,000
shares is treated as part of Madame Chee’s chargeable income.
Deductions in arriving at statutory income
In general, expenses wholly and exclusively incurred in deriving dividend
income are deductible from the gross income in the normal way. However,
there is another restriction which candidates should be aware of. In Director
General of Inland Revenue v Multi Purpose Holdings Bhd ([2001] MSTC
3,380; [1997–2002] AMTC 2308), the courts held that dividends are a
single source of income. In consequence, allowable expenses would normally
be deductible in full from those dividends which form part of chargeable
income. However, Paragraph 12B effectively creates an exception to that
principle in respect of single-tier dividends, by stating that expenses incurred
in relation to a single-tier dividend shall be disregarded. The most frequent
deduction of this kind is for interest on money borrowed to acquire the shares
in question.
EXAMPLE 3
Referring to the facts of Example 1 again.
Mr Wong had also held 30,000 shares in Finetune Sdn Bhd for many years,
but he has neither acquired nor disposed of any shares in recent times. Mr
Wong has no other shareholdings but he does have an outstanding loan
which was used to buy the 30,000 shares in Finetune Sdn Bhd. The interest
expense for the year 2008 is RM5,000. Knowing that the only other ordinary
dividend paid by Finetune Sdn Bhd during 2008 is a cash dividend of 12%
gross, paid on 28 September 2008, we can determine Mr Wong’s statutory
income from dividends for the year of assessment 2008:
RM
Gross income from second interim ordinary dividend, paid
30 April 2008 – RM30,000 x 8% 2,400
Gross income from final ordinary dividend,
paid 28 September 2008 – RM30,000 x 12% 3,600
6,000
Less: interest expense – see working (2,549)
Statutory income 3,451
Working:
Gross income from taxed dividends as above 6,000
Gross income from single-tier dividends – special interim
dividend distributed on 15 February 2008 – RM30,000 x 25% 7,500
Gross income from other exempt dividends – third interim
dividend on ordinary shares paid on 30 June 2008 – RM30,000 x 6% 1,800
15,300
Proportion of interest allowable RM5,000 x (6,000 + 1,800)/15,300 2,549
Deductions in arriving at total income
For a shareholder, the statutory income from dividends becomes part of
his aggregate income and then part of his total income. Certain deductions
are normally available at each stage, including brought forward losses at
aggregate income stage and, at total income stage, current year losses,
permitted expenses, eligible gifts, and approved donations (limited to 7% of
aggregate income). However, such deductions are not always fully available
due to a restriction imposed by Section 53. For a company, the statutory
income from taxable dividends paid under the savings and transitional
provisions is deemed to be the total income of the company unless the
dividends are, for that company, business income.
EXAMPLE 4
Randompick Sdn Bhd, an unlisted investment holding company, derives all of
its income from a portfolio of investments. For the year ended 30 September
2008, the statutory income consisted of:
Gross Expenses Statutory
income
RM RM RM
Interest income 10,000 6,000 4,000
Taxed dividends received in the
transitional period 90,000 20,000 70,000
100,000 26,000 74,000
In arriving at its total income, Randompick Sdn Bhd wishes to claim
deductions for:
permitted expenses as an investment holding company of RM3,800
(amount calculated under s.60F ITA)
A cash donation to an approved body of RM8,000.
The total income for the year of assessment 2008 is:
RM
Statutory income from interest 4,000
Deductions available –
Aggregate income 4,000
Deduct: permitted expenses (deductible before donations) (3,800)
200
Deduct: approved donation of RM8,000 – restricted to 7% of
aggregate income = RM280 but limited to (200)
Nil
Add: deemed total income from dividends received in the
transitional period 70,000
Total income 70,000
There is no carry forward for the unrelieved approved donation.
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CALCULATING THE SECTION 108 BALANCE
It is necessary to monitor the Section 108 balance throughout the transitional
period as it can only reduce with the payment of dividends, and when it is
exhausted no further taxable dividends can be paid.
The starting point is the Section 108 balance computed in the traditional
way up to and including the last day of the basis period for the year of
assessment 2007, plus the amount brought forward from the transition to
the current year basis of assessment in 2000, if relevant. Where the basis
period ends on 31 December 2007, there may be added the final monthly
instalment payable for the year of assessment 2007, which is normally due
for payment in January 2008. No further additions are allowed.
Where the basis period ends on a day other than 31 December, all tax
payments made during the period from the end of the basis period for the
year of assessment 2007 up to 31 December 2007 can be added.
As and when taxable dividends are paid during the transitional period, the
tax deducted, or deemed to be deducted, reduces the balance carried forward.
EXAMPLE 5
Referring to the facts of Example 1 again.
Finetune Sdn Bhd had a Section 108 balance of RM500,000 at 30 June
2007. The company was paying instalments of RM40,000 per month
in respect of the year of assessment 2008 but, as a result of submitting
a revised estimate, the monthly instalment was increased to RM60,000
per month from November 2007. The final balance of tax for the year of
assessment 2007 was RM100,000 and that was paid on submission of
Form C on 31 January 2008.
We can now construct Finetune Sdn Bhd’s Section 108 account to date:
RM
Section 108 balance at 30 June 2007 500,000
Instalments paid August–October 2007 – 3 x RM40,000 120,000
Instalments paid November–December 2007 –
2 x RM60,000 120,000
740,000
Tax deemed to be deducted from final ordinary dividend,
paid 30 August 2007 25,649
Tax deducted from second interim ordinary dividend,
paid 30 April 2008 20,800
Tax deducted from final ordinary dividend, paid
28 September 2008 – RM120,000 x 26% 31,200 (77,649)
Available balance 662,351
The final balance of tax for the year of assessment 2007 cannot be included
because it was paid after 31 December 2007.
TAX PLANNING ASPECTS
The object of the saving and transitional provisions is to permit shareholders
to make use of imputed tax by way of a tax credit. There is no benefit in it for
the paying company. For that reason, some companies may want to exercise
the option to disregard the balance on the Section 108 account, although it
can be expected that responsible companies will keep it going for the benefit
of shareholders.
Candidates should bear in mind that, once a company is fully on the
single-tier dividend system, there is no tax constraint on the distribution of
profits by way of dividend, and few meaningful opportunities for tax planning
in relation to distribution of company profits and assets remaining.
However, tax planning opportunities will continue to present themselves
throughout the transitional period so long as a company has a Section 108
balance. Payment of special cash dividends on ordinary shares may place
substantial Section 108 credits in the hands of some shareholders. However,
the limitation imposed by the various restrictions contained in the saving and
transitional provisions should be taken into account. One such limitation,
which is implied rather than spelled out, is that a company receiving a taxed
dividend can no longer add to its own Section 108 balance the amount of
any Section 108 set off, even though it would still be able to use the set off
in calculating its own tax liability. This means that a company can no longer
distribute its dividend income to its own shareholders with the benefit of a
tax credit.
Richard Thornton is examiner for Paper P6 (MYS)
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CONSTRUCTION
CONTRACTS
RELEVANT TO ACCA QUALIFICATION PAPER F7
The correct timing of revenue (and profit) is crucial in order to faithfully
represent the results shown in the income statement.
For many businesses, revenue and costs are easily
divisible into a 12-month accounting period. For
example, a retailer will recognise revenue when
realised throughout the year, and match costs in
accordance with the accruals concept. For some
businesses, however, traditional revenue recognition
methods (ie ‘show revenue when realised’) are not
applicable. Many such organisations are in the
construction industry and their business dealings
involve contracts that are usually long-term in
nature or span at least one accounting year end.
For example, a contractor has just won the bid
to build a stadium in the new Olympic village in
London for the 2012 Olympic Games. Work will
commence on 1 January 2009 and it is anticipated
that the stadium will be completed on 31 December
2011. If this type of contract were treated as a
normal sale of goods, then revenue and profit would
not be recognised until the stadium was completed
at the end of the third year. This is known as the
completed contracts basis and is an application of
prudence, where profits should not be anticipated.
It can be argued that recognising the revenue
at the end of the project would not faithfully
present the situation under the construction
contract, as in reality the revenue has been earned
over the three-year period and not just when the
stadium is completed. In addition, the fundamental
accruals concept would not have been adhered to.
The problem with this type of industry,
therefore, is to determine at what point revenue
and costs should be recognised. For these
businesses, the difficulties of accounting for both
revenue and cost is remedied by the use of IAS 11,
Construction Contracts, which prescribes the
accounting treatment that should be followed.
IAS 11 – DEFINITION
When answering an exam question, it is necessary
to know the definition of the relevant accounting
standard. IAS 11 defines a construction contract
as: a contract specifically negotiated for the
construction of an asset or a combination of assets
that are closely interrelated or interdependent in
terms of their design, technology, and function for
their ultimate purpose or use.
student accountANT
NOVEMBER/DECEMBER 2008
IAS 11 TREATMENT
Where possible, IAS 11 applies the accruals
concept to the revenue earned on a construction
contract. If the outcome of a project can be
reasonably foreseen, then the accruals concept
is applied by recognising profit on uncompleted
contracts in proportion to the percentage of
completion, applied to the estimated total
contract profit. If, however, a loss is expected
on the contract, then an application of
prudence is necessary and the loss will be
recognised immediately.
OUTCOME CAN BE RELIABLY MEASURED
IAS 11 only allows revenue and contract costs to
be recognised when the outcome of the contract
can be predicted with reasonable certainty.
This means that it should be probable that the
economic benefit attached to the contract will flow
to the entity. If a loss is calculated, then the entire
loss should be recognised immediately.
If a profit is estimated, then revenue and costs
should be recognised according to the stage that
the project has completed. There are two ways
in which stage of completion can be calculated,
and, in the exam, it is important to determine from
the question scenario which method the examiner
intends you to use, either the:
work certified method (sometimes referred to
as the sales basis)
work certified to date
contract price
cost method
costs incurred to date
total contract costs
EXAM FOCUS
To answer an exam question on construction
contracts, a step approach is required, which can
be practised by looking at the following examples.
EXAMPLE 1
Profit-making contract
Lily is a construction company that prepares its
financial statements to 31 December each year.
During the year ended 31 December 2008, the
company commenced a contract that is expected
to take more than one year to complete. The
contract summary at 31 December 2008 is
as follows:
$000
Progress payments 1,400
Contract price 2,736
Work certified complete 1,824
Contract costs incurred to
31 December 2008 2,160
Estimated total cost at
31 December 2008* 2,520
* The examiner sometimes presents information in
this manner – ‘estimated total cost’ means costs
incurred plus costs to complete.
The agreed value of the work completed at
31 December 2008 is considered to be equal
to the revenue earned in the year ended
31 December 2008. The percentage of completion
is calculated as the value of the work invoiced to
date compared to the contract price.
Required:
Calculate the effect of the above contract on the
financial statements at 31 December 2008.
Step approach
Step 1: Set up extracts of the financial statements
and a working paper.
Step 2: Determine at W1 whether a profit or loss
is expected on the contract.
Step 3: In this example a profit will be calculated,
so determine the accounting policy from the
question and calculate the stage of completion.
Step 4: Calculate how much profit should be
shown this year from the stage of completion and
include it in the income statement extract.
Step 5: ‘Build’ up the income statement. If it
is a work-certified accounting policy, then the
work certified for the year should be taken to the
revenue line. If it is a cost-basis accounting policy,
then the costs incurred should be taken to the cost
of sales line.
technical LINKED PERFORMANCE OBJECTIVES
page 39 studying paper F7? did you know that PERFORMANCE OBJECTIVES
10 AND 11 ARE linked?

Step 6: Depending on what approach was Required: during the year amount to $700,000 and no cash
taken at step 5, you are now in a position to Calculate the effect of the above contract in the had yet been received. What should the accounting
find the balancing figure to complete the income financial statements at 31 March 2008. entries be regarding the contract at the year end?
statement.
Step 7: Calculate the asset or liability outstandingSolution 1 Solution
on the construction contract. Step 1: Set up extracts of the financial statements During the year, as costs have been incurred, the
and a working paper. natural double entries occurring would have been:
Income statement extract – 31 December 2008 Step 2: Determine at W1 whether a profit or loss Dr Purchases $700,000
is expected on the contract. Cr Bank/payables $700,000
$000 Step 3: A loss will be calculated in this example
Revenue (work certified) 1,824 and should be recognised in the income As the outcome cannot be reliably measured, and
COS (ß) 1,680 statement immediately. assuming all costs are recoverable, revenue should
Gross profit (W2) 144 Step 4: ‘Build’ up the income statement. If it be taken as equal to the costs incurred:
is a work-certified accounting policy, then the Dr Receivables $700,000
Statement of financial position extract – work certified for the year should be taken to the Cr Revenue $700,000
31 December 2008 revenue line. If it is a cost-basis accounting policy,
Current assets then the costs incurred should be taken to the cost In processing the above journals, no profit will be
Asset on a construction contract (W3) 904 of sales line. taken on the contract during the financial year.
Step 5: Depending on the approach taken at step
WORKING PAPER 4, you are now in a position to find the balancing WHAT IS INCLUDED IN CONTRACT REVENUE
(W1) Expected outcome $000 figure to complete the income statement. AND COSTS?
Contract price 2,736 Step 6: Calculate the asset or liability outstanding Contract revenue will be the amount agreed in the
Total costs 2,520 on the construction contract. initial contract, plus revenue from variations in the
Expected profit 216 original contract work, plus incentive payments
Income statement extract – 31 March 2008 and claims that can be reliably measured, such as
(W2) Percentage of completion contract revenue which can be valued at the fair
Accounting policy = Work certified complete $000 value of received or receivable revenue.
Work certified to date Revenue (ß) 3,300 Contract costs are to include costs relating
Contract price COS (costs incurred) (3,600) directly to the initial contract plus costs
1,824 = 66.67% Gross loss (W1) (300) attributable to general contract activity, plus costs
2,736 that can be specifically charged to the customer
(As a round percentage was not found, use the Statement of financial position extract – under the terms of the contract.
fraction to complete workings instead) 31 March 2008
Current liabilities EXAM ADVICE
Profit to be recognised = $216 (W1) x $1,824 / Liability on a construction contract 480 There are two common ‘technical areas’ that may
$2,736 = $144 feature in any exam question on construction
WORKING PAPER contracts, and which could cause difficulties.
(W3) Asset on construction contract (W1) Expected outcome $000 The first is when unplanned rectification costs
Costs incurred to date 2,160 Contract price 4,500 are included within the question information.
Profit recognised to date 144 Total cost (3,600 + 1,200) (4,800) Rectification costs must be charged to the period
Less: Progress payments (1,400) Expected loss (300) in which they were incurred, and not spread over
904 (W2) Liability on construction contract the remainder of the contract life. Therefore, such
Costs incurred to date 3,600 costs should not be added in when calculating the
EXAMPLE 2 Loss recognised to date (300) profit or loss to be shown on a contract.
Loss-making contract Less: Progress payments (3,780) The second difficulty is where a contract is
Gladioli is a construction company that prepares Liability on construction (480) already part way through, ie in its second year. If
its financial statements to 31 March each this is the second year of a contract, candidates
year. During the year ended 31 March 2008, OUTCOME CANNOT BE RELIABLY MEASURED must realise that some revenue and costs have
the company commenced a contract that is In following prudence, where an outcome cannot previously been recognised. Candidates should
expected to take more than one year to complete. be reliably measured, any costs incurred during the take this into account in their calculations to make
The contract summary at 31 March 2008 is financial year should be expensed immediately and sure they show the current year revenue and costs.
as follows: revenue recognised as equivalent to the contract
costs expected to be recoverable. CONCLUSION
$000 IAS 11 could feature in the Paper F7 exam as part
Progress payments 3,780 EXAMPLE 3 of Question 2 (on published accounts), or in its
Contract price 4,500 Take no profit on contract own right in Questions 4 or 5, for 15 marks and
Contract costs incurred to 31 March 2008 3,600 A welding company negotiated a two-year project 10 marks respectively. It is therefore an extremely
Estimated cost to complete at that commenced in the latter half of the year. The important accounting standard at this level and
31 March 2008 1,200 project manager has been reviewing the contract candidates are strongly advised to practise past
and, at the year end, is unsure whether the questions relating to this area of the syllabus.
The percentage completion of this contract is to contract will make a profit or a loss as there are
be based on the costs to date compared to the uncertainties surrounding the project’s completion. Bobbie Retallack is Kaplan Publishing’s content
estimated total contract costs. The project manager’s records show that costs specialist for Papers F3 and F7
technical student accountANT
page 40 NOVEMBER/DECEMBER 2008
INTEREST RATES AND
EARLY SETTLEMENT
DISCOUNTS
RELEVANT TO CAT PAPER 10
This article discusses simple and compound interest rates, and calculations involving early settlement
discounts offered to customers. The basics are explained, including the difference between
simple and compound interest, as well as making use of this knowledge in understanding early
settlement discounts.
SIMPLE AND COMPOUND INTEREST
In the CAT Paper 10 syllabus, understanding the difference between simple
and compound interest is particularly important in the context of capital
investment appraisal. The fact is, however, that any accountant or accounting
technician should understand interest rates as very few people get through
life without borrowing money for something, whether a loan for a car, or a
mortgage for a house.
Interest is the cost of borrowing money or the amount earned from
investing money, depending on whether you are a borrower or an investor.
Let’s look at it first from the point of view of the investor. An interest rate
is the interest earned stated as a percentage of the amount invested. It is
usually stated in annual terms, ie the amount earned from investing money
for one year. Equally, however, the interest rate could be stated in terms
of less than one year, ie the monthly interest rate. The amount of money
invested is usually called the principal, often denoted in formulae by the letter
p. The interest rate is usually denoted by the letter r, where r is a decimal.
When you invest money, you may earn simple interest or compound
interest, depending on the terms of the investment.
Simple interest
With simple interest, you earn the same amount of money every year on the
principal amount invested, as shown in Example 1.
EXAMPLE 1
You invest $1,000 in an account for five years, earning simple interest of 5%
per annum. In the following formulae:
p denotes the principal amount invested of $1,000
r denotes the interest rate of 5%
n denotes the number of years for which the cash is invested, ie five years.
Every year, the amount of interest earned is the same:
pxr
$1,000 x 0.05 = $50
The total interest earned over the five years is:
pxrxn
$1,000 x 0.05 x 5= $250
At the end of the five-year period, the total value of the investment is
p + (p x r x n)
$1,000 + (£1,000 x 0.05 x 5) = $1,250
In reality, you would expect to earn only simple interest if the $1,000 was
invested in some sort of a deposit account from which the annual interest
of $50 is paid out each year, rather than left in the account and effectively
reinvested. Hence, the principal of $1,000 remains the same year on year.
Compound interest
With compound interest, interest is calculated each period on both the
principal amount invested and on all the interest earned each year. Therefore,
the interest earned each year must remain in the account, being reinvested
each year rather than withdrawn.
EXAMPLE 2
Using Example 1, after the first year, the $50 interest earned is added to the
$1,000 principal to make $1,050. Therefore, at the end of the second year,
interest is calculated at 5% on the principal amount invested and on the first
year’s interest, ie on the $1,050, rather than the $1,000. The numbers look
like this:
Interest year 1:
$1,000 x 0.05 = $50
Total value at end of year 1 = $1,000 + $50 = $1,050
Interest year 2:
$1,050 x 0.05 =$52.50
Total value at end of year 2 = $1,050 + $52.50 = $1,102.50
Interest year 3:
$1,102.50 x 0.05 = $55.125
Total value at end of year 3 = $1,102.50 + $55.125 = $1,157.625
Interest year 4:
$1,157.625 x 0.05 = $57.88
Total value at end of year 4 = $1,157.625 + $57.88 = $1,215.505
Interest year 5:
$1,215.505 x 0.05 = $60.78
Total value at end of year 5 = $1,215.505 + $60.78 = $1,276.29.
technical want to read other articles relevant to cat paper 10?
page 41 www.accaglobal.com/students/study_exams/qualifications/
technicianscheme/t10/tech_articles/
It can be seen from this that the total value of the investment at the end
of the five years, including earned interest and with a compound interest
rate of 5%, is $1,276.29, compared to only $1,250 with a simple interest
rate. These total values are what we refer to as ‘future values’ in investment
appraisal. With a compound interest rate, the easy formula to calculate the
future value is:
S = P (1+r)n where S denotes the future value, and the other symbols
remain the same as for simple interest rates. Using Example 1 again:
S =$1,000 (1.05)5 = $1,276.29
Similarly, by subtracting the initial investment of $1,000 from the
$1,276.29, we can arrive at the interest earned of $276.29 very quickly.
This way is obviously much quicker than calculating the interest individually
for each year.
In Question 2, Part (b) in the June 2008 exam paper, candidates were
asked to ‘briefly explain the difference between simple and compound
interest rates, using Light Co’s overdraft interest as an example’. Very few
candidates were able to do this. The level of detail expected for a four-mark
question such as this was obviously far less than that given in the earlier
examples in this article. Hopefully, however, by going back to basics and
explaining interest from scratch, students will now feel confident about
answering questions such as this.
EARLY SETTLEMENT DISCOUNTS
Let us now look at the calculation of early settlement discounts offered
to customers. There are four main reasons why a business may offer its
customers discounts to pay early:
If cash is received earlier, it will improve the supplier’s liquidity position,
because it reduces the length of its cash operating cycle. This will be
particularly important if a seller is suffering from cashflow problems.
If the cash from customers is received early, the cost of financing
receivables is reduced. For example, if the supplier has an overdraft
agreement under which it borrows at a cost of 10% per annum, then
provided that the cost of offering the discount is less than the cost of the
overdraft, the supplier will be better off financially.
When customers are deciding which payments to make to suppliers
and which ones to delay, they are likely to pay those suppliers offering
a discount for early payment first. From the point of view of the supplier
offering the discount, this means that the incidence of bad debts is likely
to be reduced, since customers will choose to pay them first if they are
short of cash.
It is possible that offering a discount may provide an incentive to new
customers, because the cost of the goods from a supplier offering a
discount may now be less than those of a supplier not offering a discount,
provided that the potentially new customer pays within the specified
time limit.
Although there are four reasons for offering early settlement discounts to
customers, it is mainly the second reason that we are concerned with in CAT
Paper 10 when looking at whether it is beneficial to the supplier to offer such
discounts. I will use the question from the June 2008 exam paper as the
basis for our discussion.
EXAMPLE 3
Light Co is a privately owned company specialising in the manufacture of
lighting equipment. It supplies lighting to customers, who take an average
of 30 days to pay. It has an overdraft on its current account of $2m. The
compound annual interest rate charged on this account is 12%, with interest
being charged to the account daily. In order to reduce its overdraft, Light Co is
now considering introducing discounts to customers who pay within seven days.
Required:
(a) Calculate the maximum discount that Light Co should offer for payment
within seven days if it wants to avoid any increase in its overall finance
costs and explain the basis of your calculation. (4 marks)
The maximum discount to be offered, as in the model answer, is:
‘Effective interest rate over 23 (30 - 7) days is:
(1.12(23/365) - 1) x 100 = 0·717%
The maximum discount that Light Co should offer, if it does not want to
increase its finance costs, is 0·717%.’
The explanation given in the model answer as to how to calculate the cost is
as follows: ‘If customers are to be given a discount for paying within seven
days, Light Co is effectively paying to receive the cash 23 (30 - 7) days
early. Therefore, in order to calculate the maximum discount that should
be offered to customers for paying within seven days, it is necessary to
calculate the effective interest rate that Light Co is paying on its overdraft
for the 23-day period. This figure should then be the maximum amount that
Light Co should offer its customers for early payment.’
This answer was sufficient for the marks available, but let us go a little
further here. The calculation can be considered in conjunction with our earlier
discussion on compound interest rates. We know that the cost of Light Co’s
overdraft is 12% per annum. It is clear that this is a compound rate because
we have been told in the question that this is the compound rate, and that
the interest is charged to the account daily. We know, therefore, that for every
day that a customer owes Light Co money, the cost to Light Co of funding that
outstanding amount is the daily equivalent of the 12% per annum cost of the
overdraft. What we did not consider in the first half of the article is how we
calculate a daily or, as in Example 3, a 23-day rate from an annual rate.
With simple interest rates, the calculation of a rate for a period of less
than a year is easy. If, for example, the 12% was a simple rate and we
technical student accountANT
page 42 NOVEMBER/DECEMBER 2008
needed a daily rate, we could simply divide the 12% by the number of days
in the year (365) and arrive at a daily rate of 0.03388%. However, where the
interest rate is a compound annual rate (r), in order to calculate a daily rate
the following
1
formula must be used:
(1 + r 365 - 1) x 100
Hence, the daily rate for a 12% annual rate is:
(1.12(1/365) - 1) x 100 = 0.03105%.
When the annual rate needs to be calculated for a greater number of days, that
numbernof days (n) becomes the numerator in the power applied to 1 + r:
(1 + r 365 - 1) x 100
So, in the case of Light Co, we need to calculate the rate for the period for
which cash would be received earlier from customers if a discount was
offered. In other words, we need a 23-day compound rate, which is the
(1.12(23/365) - 1) x 100 = 0·717, as calculated above.
Candidates’ answers to Question 2, Part (a) in the June 2008 exam were
disappointing, with many candidates making no attempt to answer it at all.
Others attempted to answer it but ignored the fact that it was a compound
rate and just calculated the maximum discount as if it was a simple rate.
Others randomly
1
assigned numbers to erroneous attempts at the formula
(1 + r 365 - 1) x 100.
What is very clear is that it is not enough to simply try and
remember formulae for exams without understanding them. What
inevitably happens is that candidates get part of the formula wrong
because they can’t remember it. Then, the whole
answer becomes nonsense and
shows a
total lack of understanding of the principles being examined. If students
understand formulae as they learn them, they stand in good stead to answer
questions well. This becomes more and more important for those students
going on to ACCA Qualification exams.
In the textbooks, you may see other ways of answering similar questions
to these, where perhaps you are being asked to consider the viability of a
particular discount rate rather than trying to determine the minimum rate
to be offered. It is my belief that the way shown above is the best approach
whenever you have to deal with compound interest rates in a question. Of
course, if the overdraft interest rate in the question had been a simple rate
of 12%, the question would have been easy. The maximum discount to be
offered would have been:
23
12% x 365 = 0.756%.
It is really only the calculations involving compound interest that you need to
be particularly aware of.
CONCLUSION
In order to explain the principle involved, I have gone far further here, in terms
of explanations, than you are required to go. All you should aim to do for
Paper 10 is master the calculations – which
are not that difficult if you understand
them – and explain them in a far
more concise way than above.
Ann Irons is examiner for
CAT Paper 10
technical student accountANT
page 44 NOVEMBER/DECEMBER 2008

ACCOUNTING AND
ORGANISATIONAL
CULTURES
RELEVANT TO ACCA QUALIFICATION PAPERS P3 AND P5
Mapping different organisational cultures along a continuum based on
Porter’s two generic strategies gives two cultures of Financial Control and
Excellence/Service.

Students are generally introduced to the subject of organisational culture by on maximising the
studying classification frameworks such as Handy’s ‘power, role, task, and efficiency of fixed
people cultures’, or by a situational approach such as Deal and Kennedy’s, assets, such as
which suggests that an organisation needs to align its culture with the degree machinery, by use
of risk and the speed of feedback associated with decision making. These of profitability measures
frameworks are very broad and seem to imply that there are only four types of with profit expressed
culture, which, given the diversity of organisations, is hard to accept. as a return on
An alternative approach would be to say that there are many different fixed capital
cultures which can be ‘mapped’ along a continuum by using Porter’s two investment. The
generic strategies – ‘Least Cost Producer’ and ‘Differentiation’ – as the key performance
end points of the continuum. The two cultures associated with these two indicator will be return
strategies can be characterised as ‘Financial Control Culture’ and ‘Excellence/ on capital employed,
Service Culture’ respectively. which can be disaggregated
into its constituent parts and
FINANCIAL CONTROL CULTURE on product profitability. (In public
The Financial Control Culture is based on the belief that success depends sector organisations, such as the
on achieving efficiency by having a well-managed/administered organisation National Health Service in the UK, the
in which good management information systems support cost planning and intention will be to operate within the
control systems. In this kind of culture, an accounting view of activities resource envelope established by
is dominant, with a centralised accounting system based on the annual the Government and
budgeting process. The managerial structure in these organisations is its agencies.)
hierarchical, with an emphasis on departmental performance where vertical The coordination of activities
patterns of communication dominate. There is an annual cycle of budget is based on budgeting assumptions for
preparation, negotiation, and implementation, with review against monthly the sales and production department and on the
management accounts. The fundamental objective of the organisation is to setting of a marketing budget sufficient to support the sales
deliver the budgeted outcome. plan. Other departmental budgets are increased incrementally
Departments are viewed as responsibility centres – principally cost over time and are largely determined by headcount, with
centres with control focused on budget headings such as salaries and other salaries as the principal cost element of operations.
expenses. In manufacturing organisations, the departmental budgeting Performance is monitored monthly through review with senior
process is extended to embrace standard costing, which sets the direct management and, if necessary, the year end forecast will be revised.
labour and direct material costs for products thereby providing a basis for Department managers are often keen to improve their own department’s
variance analysis. The system assumes that senior management controls the performance without considering the impact on other departments and
organisation by setting targets in a top-down fashion, and then scrutinises how their actions fit with the broader strategic goals of the organisation.
performance by comparing it against the budget. This might be characterised It is assumed that if each department operates efficiently, then the whole
as a ‘command and control’ philosophy. organisation will be effective.
The emphasis on financial performance places the short-run interest of The cultural web (Johnson et al) for the Financial Control Culture is
shareholders as the primary goal of the business. There will be an emphasis shown in Figure 1.
technical LINKED PERFORMANCE OBJECTIVES
page 45 PERFORMANCE OBJECTIVES 7, 8, AND 9 ARE linked TO PAPER P3. FOR
PAPER p5, SEE PERFORMANCE OBJECTIVES 12, 13, AND 14

FIGURE 1: FINANCIAL CONTROL CULTURAL WEB

Stories Symbols
Gaming aspects of the Office space based
budgetary process on hierarchy
Budgetary over/ Reserved parking spaces
under spends for executives
Strong management Job titles, grades,
(or bullying?) symbolised status

Rituals
Budgetary process involving Paradigm
Power
months of preparation Managing the figures
Restricted – top management
and negotiation – success depends on
Inward facing departments:
Monthly review of budgets and financial performance
– Operational
departmental justification A command and control
– Accounting
of variances philosophy
Holders of large budgets
Top-down performance reviews Shareholder principal
Long serving management
Training to stakeholder
support financial
management

Control
Organisation
Cost control drives margins
Hierarchical
Performance appraisal based on
Departmentalised
budgetary review against strict
with vertical
financial criteria
reporting relationships
Capital budgeting – everything
Formal management
has to be justified
boards/committees
Audits

EXCELLENCE/SERVICE CULTURE The cultural web (Johnson et al) for the Excellence/Service Culture is
The Excellence/Service Culture is based on the belief that success shown in Figure 2.
depends on delivering high levels of customer satisfaction as measured
by internal and external benchmarks. Employees of the organisation have FIGURE 2: EXCELLENCE/SERVICE CULTURAL WEB
a clear and shared view of how competitive success will be achieved.
Customer needs are clearly understood and there is an ongoing drive to
improve value for customers. The quality/price trade-off can be different,
but the offering is clearly targeting specific market segments. Hope Stories Symbols
Performance ‘league table’ Open plan – symbolic
instances the following companies as having different but effectively winner and losers of sameness
established relationships with customers: ‘Whether customers want Customer satisfaction Co-locating of specialists
success (and failures) Car parking spaces
no‑hassle, convenience, and value-for-money products (M&S, Direct Line, and New product introductions for customers
Dell), state-of-the art products or feel-good brands (HP, Microsoft, and Nike),
or customised services (GE and Staples), they know what to expect and they
are not disappointed.’
A network organisational model operates based on interdependent units. Rituals Paradigm
These enhance the organisation’s core competences by developing collective Benchmarking and
target setting
Managing the business: success Power
depends upon delivering Dispensed from the top
expertise which is directed to the provision of ‘solutions’ for customers. Review of performance customer value Customer-facing departments:
In contrast to Financial Control Culture, management structure is much against KPIs
360° performance review
Enterprise and – Marketing
learning philosophy – R&D
looser, the emphasis being on the creation of customer-orientated teams Training to support Customer principal stakeholder
customer care
that are accountable for customer profitability, which is the key measure of
performance. The management of intangible assets, knowledge systems, and
brands are key to long-term success. Performance is evaluated and rewarded Control Organisation
by comparing teams against benchmarks, peers, and prior years, and rewards Multifaceted, based on Informal
combination of financial and Network – ‘need to know’
are based on the performance of teams rather than individuals. The intention non-financial measures exchange of information, and
is to foster a philosophy of enterprise and learning. Only strategic investments require decision making based on
Board approval – rationing only expertise
Given the diversity of contexts in which organisations operate, the applies when capital is limited Management of processes and

Excellence/Service Culture cannot be distilled to one representative set of
features. Specific practices regarding target setting via key performance
indicators (KPIs), planning, reward, and control systems, will be industry
specific, and will depend on an organisation’s chosen strategy. However, the
overall orientation is to delegate authority and decision making to operational
managers who are close to customers and who are controlled against results
achieved, with the orientation being ‘managing the business’ rather than
‘managing the numbers’. Such organisations are geared to delivering superior
value to customers, and financial performance measures are integrated into
wider performance measurement frameworks, such as the Balanced Scorecard,
so that financial performance is not the dominant measure of success.
Team rather than activities provide coordination
individual rewards
To see how these two different cultures operate, we can review Hope and
Fraser’s examination of organisations operating in budget-constrained
and budget-free contexts, as reported in their book Beyond Budgeting. They
characterise this difference as moving from Fixed (Financial/Budgeting)
Performance Contracts to Relative Improvement Contracts, and produce
a summary table (see Table 1 on page 46), to distinguish how major
managerial practices differ.
technical student accountANT
page 46 NOVEMBER/DECEMBER 2008

Hope and Fraser summarise the change in management practices in the
following terms: ‘Performance (review) has shifted from short-term fixed
contracts with top-down control to medium-term relative contracts with
multi‑level control. This represents a gradual shift of performance responsibility
from the centre to lower levels of the organisation. This is more than a change
in the process of agreeing upon a contract, it is a cultural sea change.’
Caulkin, in reviewing the Beyond Budgeting approach with Alec Reed,
chairman of Reed Executive, reflects on how budgeting can distort priorities:
‘Perversely, the budget-based fixed performance contract forces subordinates
to face towards senior management and the numbers imposed upon them,
rather than the customers. Yet it is the customers, not managers, who supply
all important intelligence about market changes. Thus, paradoxically the
more budget minders try to enforce control through numbers and budgets,
the more they make real control, in the sense of rapid adoption to a changing
market, impossible.’ Instead of budgets, Reed Executive switches between
a range of scenarios as circumstances change. Reed accepts the need for
monthly accounts but does not view these as being helpful in anticipating the
need to change. Reed concludes by saying ‘we want people, not numbers,
to manage and control the business’. Hope and Fraser report how Borealis
(one of the largest petrochemical companies in the world) created a culture
based on ‘tougher targets, greater freedoms’. They report how: ‘the annual
budget was replaced by a set of tools that included the Balanced Scorecard,
activity accounting, and rolling forecasts. A key change was the use of the
Balanced Scorecard to address the drivers behind the financial figures,
set medium‑term targets and map and communicate the strategy, manage
strategic initiatives, and report progress.’
Each manager has a personal scorecard that forms an important part of
the personal appraisal process. These changes in performance management
and measurement systems were premised on an open style of management,
characterised by the sharing of information, a 360° peer review system, and a
bottom-up development of plans and target-setting based on benchmarking. They
quote Bjarte Bogsnes, Borealis VP of Corporate Control, as identifying external
benchmarking as a key factor changing organisational culture: ‘Targets are set in
relation to either the competition or best practice. We do extensive benchmarking,
both externally and internally, on everything from production to support costs. The
benchmarking process also removes most of the internal negotiations. As soon
as we have agreed whom to benchmark, and where we should be compared
to the benchmark, the target sets itself. And it is normally tougher than the old,
internally-negotiated one.’
With regard to managing costs, Bogsnes highlights how they re-orientated
the cost control process: ‘One of the tools to help us manage costs without
budgets was more relevant cost reporting using activity accounting. We were
convinced we had low-hanging fruit by simply getting a better understanding
of our costs. I have always seen it as a paradox that most companies record
and report costs down to the last penny on what costs they incurred and who
incurs these costs. But they record and report next to nothing on why these costs
are incurred (for which activities or processes).’ Hope and Fraser report how
each business unit produces scorecards, together with a two-page snapshot of
performance that includes return on capital, a cost report, and some explanatory
text. They indicate the importance of these scorecards by observing how ‘Board
meetings look at scorecard results before financial results’.
CONCLUSION
Given the intangible nature of culture and the diversity of organisational
contexts, the principal features of the two cultures described above are
inevitably somewhat stereotypical and incomplete. This is especially the case
with the Excellence/Service Culture, since this is an emerging form. Even leading
companies in this category are not necessarily guaranteed long-term success, as
has been demonstrated by the companies identified as ‘Excellent’ in Peters and
Waterman’s book. In an ever-changing environment, it can be argued that the
management of intangible assets has become the key to long-term success and
this would require organisations to move closer to the features of the Excellence/
Service Culture. Those companies which operate in stable environments may
be able to adopt the Financial Control Culture, as this can be an efficient way to
deliver standard goods at low production costs. However, for most organisations,
the challenge may be to manage the movement along the continuum towards
the Excellence/Service Culture, accepting that, in reality, there are many interim
positions between the two ends of the continuum.
REFERENCES
Caulkin, S, An End to the Numbers Game, The Observer, 13 April 2003.
Deal, T, Kennedy, A D, Corporate Cultures, Addison-Wesley, 2008.
Handy, C, Understanding Organisations, Penguin, 1985.
Hope, J, Fraser, R, Beyond Budgeting, Harvard Business School
Press, 2003.
Johnson, G, Scholes, K, Whittington, R, Exploring Corporate Strategy, FT
Prentice Hall, 2008.
Peters, T, Waterman, R H, In Search of Excellence, Harper Collins, 1982.
Porter, M E, Competitive Strategy, Free Press, 1980.
Graham Morgan specialises in management and strategy at Birmingham
City University, UK

TABLE 1: TYPES OF PERFORMANCE CONTRACTS ASSOCIATED WITH DIFFERENT CULTURES

Fixed Performance Contract (Financial Control Culture) Relative Improvement Contract (Excellence/Service Culture)
Targets Your (sales/profit) target is fixed at ($x million). We trust you to maximise your profit potential to continuously improve
against the agreed-upon benchmarked KPIs and to remain in the top
(quartile) of your peer group.
Rewards Your rewards for reaching this target are (y%) of profits. No bonus You trust us to assess your rewards by a peer review panel based on
is payable unless 80% of targets are met with a cap at 120%. your performance ‘with hindsight’ at the end of each year.
Plans Your agreed-upon action plans are attached to this contract. We trust you to take whatever action is required to meet your
medium‑term goals within agreed-upon governance principles and
strategic boundaries.
Resources The agreed resources to support the capital and operating budgets You trust us to provide the resources you need when you need them.
are set out in the attached budget statements. We trust you to keep within agreed KPI boundaries.
Coordination Your activities will be coordinated with other budget holders We trust you to coordinate your activities with other teams according to
according to the agreed plan or as redirected by your superior. periodic agreements and customer requirements.
Controls Your performance will be monitored monthly. Any variations will be We trust you to provide forecasts based on the most likely outcome.
reviewed, and executives reserve the right to take further action. You trust us to monitor performance and interfere only when indicators/
Forecasts in the form of revised budgets will be required on a trends move out of bounds.
(quarterly) basis.

Source: Hope and Fraser, Beyond Budgeting, Harvard Business School Press, 2003.
technical student accountANT
page 48 NOVEMBER/DECEMBER 2008
FINANCIAL
INSTRUMENTS
understanding the basics
RELEVANT TO ACCA QUALIFICATION PAPERS F7 AND P2
This article aims to help students better understand accounting standards relating to financial
instruments. It deals with the facts and terminology that you will need to know, understand, and
be able to apply when accounting for financial instruments. Also included are exercises that will test
your understanding.
In order to understand accounting for financial instruments, there is
some terminology, together with some principles and rules, that you must
understand. Let us start by asking some key questions, looking first at the
technically correct answer then trying to put it into more everyday language.
KEY QUESTION
What are The technically A discussion to number of the subscribe to those
financial instruments? correct answer help understanding
A financial instrument is As you can see from
a contract that gives rise the technical definition,
to a financial asset of a financial instrument
one entity and a financial is a contract, so it
liability or equity may be helpful to think
instrument of another of a financial instrument
entity. A financial asset as a piece of paper – as
is any asset that is: cash, contracts are normally
an equity instrument of written down. We can
another entity, or a also see that this piece
contractual right to of paper has two effects
receive cash or another in two different
financial asset from companies. So if we
another entity, or to think of an invoice that
exchange financial assets my company issues
or financial liabilities with following the sale of
another entity under goods, then I have a
conditions that are receivable (a financial
potentially favourable to asset) but the company
the entity; or a contract that has bought the
that will or may be goods will consider the
settled in the entity’s same contract/piece
own equity instruments of paper/invoice as a
and is: financial liability. In a
a non-derivative for similar way, if my
which the entity is or company is a lender
may be obliged to (ie operates like a bank)
receive a variable then I have a financial
number of the asset – the loan – but
entity’s own equity the borrower has a
instruments liability to repay the loan.
What are a derivative that will Such written loan
financial instruments? or may be settled agreements are often
other than by the called debentures. A
exchange of a fixed third example is when a
amount of cash or company issues
another financial ordinary shares (more
asset for a fixed pieces of paper). If I
entity’s own equity shares then in my
instruments. For this accounts I have a
purpose, the entity’s financial asset of the
own equity investment in the
instruments do not shares, but the issuing
include instruments company has created an
that are themselves equity instrument.
contracts for the Thus we should
future receipt or consider examples of
delivery of the financial instruments
entity’s own to be: receivables and
equity instruments. payables, investments
in debentures and loans,
A financial liability is any and investments in
liability that is a equity and
contractual obligation: ordinary shares.
to deliver cash or
another financial Of course there are
asset to another more complex financial
entity, or instruments such as
to exchange financial options, swaps and
assets or financial futures, collectively
liabilities with known as derivatives.
another entity under These are held either for
conditions that speculation (taking a
are potentially risk) or for hedging (to
unfavourable to the offset an existing risk).
entity, or However, hedge
a contract that will accounting does not
or may be settled in come under the
the entity’s own heading of
equity instruments. ‘basic information’.
technical LINKED PERFORMANCE OBJECTIVES
page 49 studying paper F7 OR P2? did you know that PERFORMANCE
OBJECTIVES 10 AND 11 ARE linked?

When should financial A company should Recognition is the When should A financial liability Normally, liabilities
assets and liabilities recognise a financial process of including an financial liabilities should be removed from disappear when they
be recognised? asset or a financial asset or liability on the be derecognised? the statement of financial are paid off in the form
liability on its accounts statement of financial position (balance sheet) of cash, thus they will
when the company position (balance sheet). when, and only when, it no longer be a claim.
becomes a party to the To recognise a financial is extinguished, that is, Liabilities can also be
contractual provisions of asset or liability when when the obligation settled by winning a
the instrument, rather you become a party to specified in the contract court case or by the
than when the contract the contract simply is either discharged, issue of shares, eg with
is settled. means that when you cancelled, or expired. convertible loan stock.
purchase the shares
you show the asset in If there has been an If a creditor is settled for
your accounts, and exchange between less than the carrying
when you have an existing borrower and value then we have
borrowed the money lender of debt a profit
from the bank you instruments with
recognise the liability. substantially different
How are Initially, financial assets All financial assets and terms, or there has been
financial assets and liabilities should be liabilities should be a substantial
and liabilities measured at fair value measured at the fair modification of the terms
initially measured? (including transaction value of the of an existing financial
costs for assets and consideration received liability, this transaction
liabilities not measured or paid when we enter is accounted for as an
at fair value through into the contract. In extinguishment of the
profit or loss). simple terms, this original financial liability
means that if we have and the recognition of a
purchased an new financial liability. A
investment for $500 gain or loss from
cash, then the asset extinguishment of the
will be recorded as $500. original financial liability
Transaction costs are is recognised in the
generally capitalised – income statement.
just as legal fees would
be if we were buying
a property. HOW ARE FINANCIAL ASSETS CLASSIFIED AND ACCOUNTED FOR?
When should financial A company should The derecognition of an There are four separate categories of financial assets:
assets be derecognised? derecognise a financial asset means that it will Held to maturity investments
asset when either of the no longer be included on Available for sale
following has occurred: the statement of Loans and receivables
The asset has been financial position Fair value through profit or loss.
sold so that the risks (balance sheet). This
and rewards of will normally arise when The mnemonic ‘HALF’ should
ownership have the asset is sold. help you remember
passed away. However, the terminology this list. Table 1 sets
The contractual of a sale is legal out the relevant
rights to the cash language and what is information which
flow of the financial more important to has to be rote learnt.
asset have expired accountants, who have
(see Example 5). to show a true and fair
view, is the substance
of the transaction. Thus
we should remember
that derecognition
involves the passage of
the risks and rewards
of ownership.
technical student accountANT
page 50 NOVEMBER/DECEMBER 2008

TABLE 1: CATEGORIES OF FINANCIAL ASSETS

Category Accounting treatment Additional technical points Example

Held-to-maturity investments Held-to-maturity investments If an entity sells a held-to-maturity An example of a held-to-maturity
are measured at amortised cost. investment other than in insignificant investment is where a company holds
These are financial assets with fixed amounts, or as a consequence of a (as an investment) fixed interest or
or determinable payments that an See later in this article for an non-recurring, isolated event beyond fixed-term debt/bonds for the whole
entity intends (and is able) to hold explanation as to what accounting its control that could not be of its life.
to maturity. at amortised cost means. reasonably anticipated, all of its other
held-to-maturity investments must be
reclassified as available-for-sale for the
current and next two financial
reporting years.

Available-for-sale financial assets Available-for-sale financial assets The cumulative gain or loss that was An example of an available-for-sale
are measured at fair value in the recognised in equity is recognised in asset is a long-term investment in
This is a default category. statement of financial position income when an available-for-sale equity shares.
(balance sheet). financial asset is derecognised, ie it is
The name ‘available-for-sale’ is quite recycled (see Example 2). Any financial asset that cannot be
strange as the majority of financial The changes in value are classified into another category is
assets categorised here are going to recognised in reserves (other deemed to fall into the
be long-term assets. comprehensive income/statement available-for-sale category, ie it is the
of recognised gains and losses). default category.

Loans and receivables Loans and receivables are Technically, provisions are no longer An example of loans and receivables
measured at amortised cost. made for bad and doubtful debts; is simple trade debtors.
These are financial assets with fixed instead, receivables are subject to an
or determinable payments, originated impairment review and written down
or acquired, that are not quoted in to their recoverable amount.
an active market, and not held
for trading.

Financial assets at fair value through Financial assets at fair value through Allowing the company the choice to An example is a derivative that is
profit or loss profit or loss are measured at fair designate any financial asset at fair held for speculation purposes.
value in the statement of financial value through profit or loss has the
These are all derivatives (except those position (balance sheet). effect of reducing comparability For example, this will occur if a
designated as hedging instruments) between companies. company with no foreign currency
and financial assets acquired or held The changes in value are recognised assets, liabilities or transactions
for the purpose of selling in the short in income. enters into a forward foreign currency
term, or for which there is a recent contract (a derivative) with a view to
pattern of short-term profit taking, are While derivatives are a potentially making a profit on the contract due to
held for trading. complex area, remember that there future changes in exchange rates
are only two reasons why a company
In addition, any financial asset can be would hold them – hedging Such derivative contracts can be
designated on initial recognition as or speculation. Of course, changes entered into at no cost or at an
one to be measured at fair value with in value of financial assets at fair immaterial cost so it is important to
fair value changes in profit or loss. value through profit or loss should be have it recognised at fair value at the
This is the so-called fair value option. recognised in income, as not only is year end otherwise it would
that what their name implies but also be invisible.
because they arise from speculation
or trading activities.
technical
page 51
HOW ARE FINANCIAL LIABILITIES CLASSIFIED AND ACCOUNTED FOR?
Technically, there are two categories of financial liabilities, detailed in Table 2,
although the vast majority in reality, and in the exam, will be measured at
amortised cost.
TABLE 2: CATEGORIES OF FINANCIAL LIABILITY
Category Accounting treatment Example
Financial liabilities also account for the loan that they have made using amortised cost (having
measured at classified the loan as an asset in ‘loans and receivables’). Being an asset, the
amortised cost lender is earning interest, recognised in the income statement as income, and
Examples include trade
This is the These are measured at creditors, loans, and
default category. amortised cost. debenture liabilities.
Financial liabilities at Financial liabilities at objective evidence of impairment of financial assets. If any such evidence
fair value through profit fair value through exists, the entity is required to undertake a detailed impairment calculation to
or loss profit or loss are determine whether an impairment loss should be recognised (see Example 4).
measured at fair value
Like financial assets, in the statement of
these are speculative financial position
derivatives, and those (balance sheet). The An example is a
liabilities that have been changes in value are derivative that is held
so designated. recognised in income. for speculation purposes.
WHAT EXACTLY IS MEANT BY THE ACCOUNTING TREATMENT
‘AMORTISED COST’?
Technically, accounting for an asset or liability using amortised cost means
that the income statement will reflect the effective rate of interest of the
financial asset or liability. The effective rate of interest is the true interest rate
reflecting the market rate. It is always given in accounting exams – though
using financial management techniques can sometimes be calculated as the
IRR. The effective rate of interest may or may not be the same as the amount
of the annual cash flow associated with the instrument.
Let’s take a step back and remember that if we account for land at cost
then this means that the carrying value will not change year on year as the
historic cost never changes. If we account for plant then, as it has a limited
life, we can account for it using depreciated cost. This would mean that
although the asset is never revalued, the carrying value would reduce each
year to reflect the depreciation being charged.
If we account for a liability using amortised cost then, again, it has not
been revalued but it will go up each year by the effective rate of interest,
charged as an expense (DR Income Interest payable – CR Liability), and
reduced by the cash actually paid over (DR Liability – CR Cash). If more cash
is paid than interest charged the net effect is that at the year end the liability
will have been reduced over the period. This is what happens with finance
lease obligations.
EXAMPLE 1
Accounting for a liability using amortised cost
If a company borrows $400 over two years and the effective rate of interest
is 10% then there has to be a finance charge to income of $40 in the first
year. Let us assume that the lender has agreed to be paid interest in arrears
at the rate of 5%, which means that the annual cash flow will be
(5% x 400) = 20. Under the terms of the loan there will
be a premium on redemption of $42. At the end of
the first year, the liability will have grown to
$420, and, of course, after two years,
the liability will be extinguished by
the final payment (see Example 3).
The following working is a
summary of the accounting treatment
using amortised cost:
Opening Income statement Cash flow Year end
balance @ effective interest rate balance
of 10%
Year 1 400 40 (20) 420
Year 2 420 42 (20) 442
(442)
The same working can be done from the perspective of the lender, as they will
receiving cash.
ANNUAL IMPAIRMENT REVIEW
At each year end, all companies are required to assess whether there is any
DEBT OR EQUITY
When a company wishes to raise finance, it can do so by issuing debt or
equity. The classification of the instruments issued into one of these two
categories is important, as it has a direct impact on the debt to equity ratio
of the company (the gearing ratio) and therefore on the perception of the
company’s risk.
The fundamental principle to be applied is that a financial instrument
issued by a company should be classified as either a debt or an equity
instrument according to the substance of the contract, not its legal form.
The company must make the decision at the time the instrument is initially
recognised. A debt is defined in terms of there being an obligation to transfer
cash or similar, and an equity instrument if there is no such obligation.
Accordingly, it should be noted that redeemable preference shares and
cumulative preference shares are both examples of instruments that are,
in substance, debts and should be accounted for as such, ie as a liability
measured at amortised cost, with the effective rate of interest being charged
to income as an expense.
Debt and equity
The issue of convertible loan stock is, however, an example of a compound
financial instrument as, from the issuer’s perspective, the one piece of paper
contains both a liability and an equity component. Convertible loan stock
will contain an embedded derivative, ie an option that allows the holder to
be repaid in shares rather than cash. With compound financial instruments,
it is necessary to split the debt and equity elements at inception. The debt
element is measured at the present value of the future cash flow, and the
equity element (the value of the option) can be measured as the balancing
figure (see Example 6).
EXAMPLE 2
Available-for-sale: Tobago
Tobago purchased an investment in shares for $10,000. Transaction costs
incurred were an additional $500. At the year end, the fair value of the
investment had risen to $15,000. Shortly after the year end, the asset was
sold for $16,000.
Requirement:
Explain the accounting treatment on the basis that the investment is
classified as ‘available-for-sale’.
The solution can be found at the end of the article.
EXAMPLE 3
Amortised cost: Ryland
Ryland has raised finance by issuing $200,000 4% debentures at par that
technical student accountANT
page 52 NOVEMBER/DECEMBER 2008
will be redeemed in two-years’ time at a premium of $16,640. The effective
rate of interest is 8%.
Requirement:
Discuss the accounting implications of this financial instrument over its
two-year life.
The solution can be found at the end of the article.
EXAMPLE 4
Impairment and amortised cost: Lagos
Lagos made a three-year loan of $10,000 on 1 January 2005 to a customer,
requiring that the customer pay a simple interest rate of 10% on an annual
basis, and that the principal sum of $10,000 be repaid at the end of three
years. The effective rate of interest is also 10%. At the current year end of
31 December 2006, all due payments have been received as expected, but
the borrower is in financial difficulty. It is now estimated that the only future
cash flow will be $5,000 in one-year’s time, ie three years after the date of
the original advance.
Requirement:
Discuss the accounting implications of this financial instrument over its
three-year life.
The solution can be found at the end of the article.
EXAMPLE 5
Derecognition of financial assets: Kashmir
Kashmir has cash flow problems and has arranged to assign various
invoices with a face value of $100,000 to a factor, in return for $85,000.
All the invoices selected are from long-standing customers and are due to
be collected some six months later. The factor has insisted that Kashmir
guarantees to refund the face value of any invoices that have not been
collected with three months of their due date.
Requirement:
Explain the accounting treatment of the proceeds received, and the
circumstances that will lead to the derecognition of the receivables from the
statement of financial position (balance sheet).
The solution can be found at the end of the article.
EXAMPLE 6
Split equity accounting for compound financial instruments: Yunan
Yunan has raised finance by issuing a two-year, $100,000 convertible loan
stock at par with a coupon rate of 2%. The effective rate of interest is 8%.
Requirement:
Explain and illustrate the accounting treatment of this financial instrument
over its two-year life.
The solution can be found at the end of the article.
EXAMPLE 2 – SOLUTION
Available for sale: Tobago
The financial asset is initially recognised when Tobago becomes a party to
the purchase contract, and will be initially measured at the fair value of
consideration given. This will include the transaction costs:
DR Financial asset $10,500
CR Cash $10,500
At the year-end, financial assets that are classified as available-for-sale
have to be remeasured at fair value, with the changes being taken to equity.
With a fair value of $15,000 and a carrying value $10,500, the gain to be
recognised is $4,500:
DR Financial asset $4,500
CR Equity reserves $4,500
On the disposal of the investment, proceeds are received in cash and the
asset – with its carrying value of $15,000 – is derecognised. However,
the gain recognised in income will not simply be the difference, as it will
include the balance of the revaluation surplus previously parked in equity:
DR Cash $16,000
CR Financial asset $15,000
DR Equity reserve $4,500
CR Income $5,500
EXAMPLE 3 – SOLUTION
Amortised cost: Ryland
On the raising of the loan, the company needs to recognise a financial liability.
The company is a party to a contract because it has borrowed $200,000.
The liability is initially recognised at the fair value of the consideration that
has been received, ie $200,000. The liability is classified and subsequently
accounted for at amortised cost. This means that the income statement will
reflect the effective rate of interest of 8% being charged.
Because the coupon rate is only 4%, the annual cash paid is $8,000
(4% x 200,000) but the finance cost must reflect the actual effective rate of
interest of 8%, ie the finance cost does not comprise just what is paid each
year but also the premium on redemption as well. Accordingly, the charge to
profit in the first year is $16,000. The liability will be extinguished after two
years when the loan is repaid with the premium:
Opening Finance Cash paid Closing
balance cost @ 8% – 4% on nominal value balance at
year end
Year 1 200,000 16,000 (8,000) 208,000
Year 2 208,000 16,640 (8,000) 216,640
(216,640)
EXAMPLE 4 – SOLUTION
Impairment and amortised cost: Lagos
On 1 January 2005, Lagos needs to recognise a financial asset. The
company is a party to a contract because it has lent $10,000. The asset is
initially recognised at the fair value of the consideration that has been given,
ie $10,000.
The asset is classified as ‘loans and receivables’, as the company
originated the loan, and it will therefore be subsequently accounted using
amortised cost, ie the income statement will reflect the effective rate of
interest of 10% being earned.
At the 31 December 2006, the current year end, the asset has a carrying
value of $10,000 but is subject to an impairment review. The recoverable
amount is the present value of the future expected cash flow, which is
$5,000 in one year’s time discounted by 10%, equalling $4,545, thus an
impairment loss of $5,455 arises and has to be charged to income.
Impairment review at 31 December 2006:
Carrying value $10,000
Recoverable amount $4,545 (5,000 x 1/1.1)
Impairment loss $5,455
technical
page 53

In the year to 31 December 2007, the asset will continue to be accounted for
using amortised cost and so the income statement will enjoy the recognition
of interest receivable of $455 (being 10% x $4,545) before being settled at
$5,000 at the year end.

EXAMPLE 5 – SOLUTION
Derecognition of a financial asset: Kashmir
If we were to simply account for the legal form of the factoring then as the
invoices have been assigned (ie sold), the debtors would be derecognised,
and as the invoices have been sold for less than their book value, a loss arises
of $15,000 that is recognised in the income statement:
DR Cash $85,000
CR Asset $100,000
DR Income $15,000

However, as accountants we should be looking to account for the substance

of the transaction in order to show a true and fair view. While the legal title
may well have passed in this transaction, the risk associated with the debtors
has not. The major risk associated with debtors is the risk of default, ie bad
debt. If this happens then Kashmir has guaranteed that it will refund the
factor the face value of the invoice, in other words the amount advanced plus
interest. In reality, the cash received has the real potential of having to be
repaid and so represents a loan.
The correct accounting treatment is to keep the asset in the accounts
until the risks and rewards have passed – and this will only arise in
six‑months’ time when the factor collects the debts. The correct accounting
treatment for the money received is:
DR Cash $85,000
CR Loan $85,000

EXAMPLE 6 – SOLUTION
Split equity accounting for compound financial instruments: Yunan
The issue of convertible loan stock is the issue of a hybrid financial
instrument as it contains both debt and equity elements. It is not just a
simple debt. Convertible loan stock contains an embedded derivative –
the option to convert the debt to shares – and as such it is necessary
to account separately for the debt and the equity. This is known as split
equity accounting.
The debt element is the obligation to repay cash and this is measured
at the present value of the future cash flow. This can be ascertained as
$89,301, with the equity element of $10,699 being simply the balancing
figure and will be taken to reserves. The debt is then to be accounted using
amortised cost so that the finance cost is based on the effective rate of
interest and not just the cash paid. The finance cost in the first accounting
period should be $7,144, and the year-end liability at the end of the first
year should be $94,445. Working to calculate the present value of the future
cash flow:

Year 1 2% x 100,000 2,000 x 1/1.08 1,852

Year 2 102,000 x 1/1.082 87,449
Debt 89,301
Equity Balancing figure 10,699
100,000

Working showing the amortised cost accounting on the debt element:

Opening Finance Cash paid Closing

balance cost @ 8% 2% on nominal value balance at
year
Year 1 89,301 7,144 (2,000) 94,445
Year 2 94,445 7,555 (2,000) 100,000

Tom Clendon is a financial accounting lecturer at Kaplan Financial

technical
page 54
THE IMPORTANCE OF
FINANCIAL REPORTING
STANDARDS TO AUDITORS
RELEVANT TO ACCA QUALIFICATION PAPER P7
The Study Guide for Paper P7 contains (in Section D1 (iii) (j) Evaluation and review) a list of financial
reporting matters which are examinable from the auditor’s point of view. Candidates can expect to be
faced with at least one requirement, and most likely several requirements each sitting dealing with
such matters. This article provides extra guidance in this area.
The significance of financial reporting standards
In an audit of historical financial information,
the significance of financial reporting standards
cannot be over-emphasised. The opinion ultimately
provided at the end of the engagement will state
whether, in the auditor’s opinion, the financial
statements are fairly presented (or show a true
and fair view). A fundamental issue which must
be considered in order to reach this opinion is
whether the financial statements have been
prepared in compliance with the relevant financial
reporting framework. In other words, have the
relevant financial reporting standards been
followed by the management of the entity when
preparing the financial statements? The technical
correctness of the financial statements is implicit
in an unmodified audit opinion.
Clearly, the auditor must fully understand the
relevant financial reporting standards to be able
to reach an opinion as to whether they have been
complied with. This is why the Paper P7 exam
will test, on a regular basis, the matters which an
auditor must consider with regard to a variety of
financial reporting issues.
How much knowledge needs to be retained from
previous papers?
There are a large number of financial reporting
standards examinable for this paper. Because
Paper P7 follows on from Paper P2, Corporate
Reporting, all examinable financial reporting
standards for Paper P2 are eligible for testing in
Paper P7 questions. However, exposure drafts and
discussion papers examinable in Paper P2 will
not be tested in Paper P7. There is therefore a lot
student accountANT
NOVEMBER/DECEMBER 2008
of assumed knowledge with regard to financial
reporting standards. Candidates should be aware
that in the context of Paper P7 questions they will
be expected to retain a basic understanding of
the key principles of financial reporting standards.
This means that candidates should remember key
definitions, recognition criteria, measurement rules
and disclosure requirements, in sufficient detail to
be able to discuss the financial reporting treatment
of an item from the auditor’s point of view.
Candidates will be aware of the large number
of financial reporting standards, and it is fair to say
that some of the standards are more examinable
in Paper P7 than others. The first two Paper
P7 exams have examined fairly straightforward
financial reporting issues, as the transition from
the old to the new syllabus meant that candidates
attempting Paper P7 in the first two sittings would
not necessarily have knowledge of the full range
of standards examined in Paper P2. Financial
reporting issues tested so far include: research
and development, revenue recognition, provisions,
inventory valuation, related party transactions,
discontinued operations, impairment of assets,
investment cost, and consolidation issues. All of
these have associated financial reporting standards.
Now that the transitional phase is over, more
challenging financial reporting matters are likely
to be examined (as well as the type of matters
already seen in the exam). The financial reporting
issues which pose particular problems for the
auditor are those that call for complex or subjective
accounting treatments, and which create an
inherent risk that the financial statements are
prone to contain a material misstatement.
It is helpful to categorise financial reporting
issues into those which require a more detailed
level of knowledge, and those for which less
detailed knowledge will be expected.
Likely to be examined in detail
Recognition and valuation of tangible and
intangible non-current assets including
initial and subsequent measurement,
revaluations, impairments, and
investment properties.
Leasing transactions including sale and
leaseback arrangements.
Financial instruments – particularly
classification and subsequent measurement.
Share-based payment arrangements, including
equity-settled and cash-settled schemes.
Deferred tax balances – recognition of
deferred tax assets and liabilities, and
their measurement.
Employee benefits – defined contribution and
defined benefit plans, including the basic
principles of measurement, and the treatment
of actuarial gains and losses.
Discontinued operations and held for
sale assets.
Provisions (including decommissioning provisions
and provisions associated with restructuring)
and contingent liabilities and assets.
Revenue recognition.
Related party transactions.
Events after the reporting date.
Business combinations – particularly the cost
of investment and calculation of goodwill, and
determination of the status of an investment.
technical
page 55
Likely to be examined in less detail
Inventory and receivables valuations.
Cash flow statements.
Reporting operating (segmental) information.
Earnings per share.
Financial instruments – hedging
and derivatives.
Changes in accounting policy.
Government grants and assistance
Construction contracts.
Marks will be available on the marking scheme for
reference to relevant financial reporting standards,
though the amount of marks for simply referring to
the name and number of relevant standard will be
restricted. Most marks will be for demonstrating an
understanding of a financial reporting issue, and its
relevance to the audit.
What are the impacts of financial reporting issues
for the auditor?
The auditor should consider financial reporting
issues throughout an audit. Therefore, question
scenarios involving these matters could be based
in the planning phase, the evidence gathering
period, or during the completion stage when the
audit opinion is being evaluated. Each of these
stages of the audit is discussed in turn below.
The planning phase
At this initial stage of the audit, the auditor will use
risk assessment techniques to assess the client’s
business and financial statements for potential
problem areas. One type of risk that the auditor
will assess is financial statement risk. Financial
statement risk is the risk that components of the
financial statements could be misstated, through
inaccurate or incomplete recording of transactions
or disclosure. Financial statement risks,
therefore, represent potential errors or deliberate
misstatements in the published accounts of a
business. Financial statement risks could lead to
a balance being over or understated in value, or
could result in an item being recognised when it
should not be, or vice versa, the non-recognition of
an item which should be recognised. In addition,
financial statement risk could lead to an item
being recognised at an inappropriate time, or in
incorrect presentation or disclosure of a matter. from a quantitative and a qualitative viewpoint
Clearly, the auditor must understand financial
reporting standard requirements in order to assess
the risk of an item being recognised, measured, or
disclosed incorrectly.
For an example of how this issue could be
tested see Paper P7 June 2008 Q1 (bii) which
requires an assessment of financial statement risks
in relation to potential litigation and demolition of
property, plant and equipment.
Gathering evidence
The second type of question that could feature
financial reporting standards deals with the
stage of the audit when the auditor is gathering
LINKED PERFORMANCE OBJECTIVES
studying paper P7? did you know that PERFORMANCE OBJECTIVES
17 AND 18 ARE linked?
evidence. Auditors need to gather sufficient,
appropriate evidence regarding financial reporting
issues. Of course, one of the matters for which
the auditor needs to gather evidence is in relation
to compliance with financial reporting standards.
A common question requirement here will ask
the candidate to ‘comment on the matters to be
considered’ in relation to a financial reporting
issue. Usually, a second, related requirement
will ask the candidate to suggest relevant audit
procedures. For an example of this type of question
requirement, see Paper P7 June 2008 Q3 (b).
Some financial reporting matters are
considered to be relatively hard to audit, and, in
some cases, a particular International Standard on
Auditing (ISA) has been issued to provide guidance
to the auditor on such matters. An example is
ISA 550 Related Parties, which provides guidance
for the auditor on the subject of auditing related
party transactions. These are the kind of matters
which are likely to feature regularly in the exam,
so candidates should pay particular attention to
financial reporting matters which are the subject of
specific ISAs (see ISAs 540–570). An example of
a question featuring this type of financial reporting
matter can be seen in Paper P7 June 2008 Q3 (a).
Candidates must pay close attention to the
wording of question requirements. Questions which
ask candidates to ‘comment on the matters which
should be considered’ will feature regularly in the
exam. Typical matters which should be considered
by the auditor in the context of a financial
reporting issue may include, for example:
whether the financial reporting issue is
relatively complex, or whether the financial
reporting issue is subjective, necessitating
the use of significant judgement. The
existence of either increases the inherent
risk that a balance or transaction will be
materially misstated
the specific requirements of any relevant
financial reporting standard, in terms of the
recognition, measurement, or presentation or
disclosure of the item, and whether, in the
context of the scenario, it appears that the
requirements have been followed or not
the materiality of the item in question, bearing
in mind that materiality should be assessed
the wider impact of an issue on the financial
statements, for example, consider the
implication of a matter to all of the primary
financial statements, and disclosure needed in
the notes to the financial statements.
Candidates may also be required to consider only
one aspect of a financial reporting matter, so care
must be taken to restrict the answer to the specific
requirement. For example, Paper P7 December
2007 Q2 (bii) required candidates to ‘describe the
evidence you would seek to support the assertion
that development costs are technically feasible’.
It is important to follow the instructions being
given, in other words, to only discuss matters
relevant to technical feasibility, and not to deviate
into discussions of other, irrelevant matters.
(Many candidates in answering this question
discussed, for example, the commercial viability
of the product in question, and whether the
entity intended to use or sell the product, neither
comment answered the question as set.) Similarly,
candidates should make an effort to discuss only
the specific balance or transaction required. As an
example, Paper P7 June 2008 Q2 (bi) required
the explanation of audit procedures appropriate
for the carrying value of an investment. Many
answers, however, incorrectly focused on the audit
of the goodwill arising on consolidation, which was
irrelevant to the question requirement.
Reaching an audit opinion
The ultimate impact of financial reporting issues is
in arriving at the audit opinion. The auditor must
decide whether the financial statements prepared
by management comply with relevant standards,
and if they do not, the auditor needs to consider
the impact on the audit opinion. A non-compliance
with standards leading to a material misstatement
in the financial statements will result in an opinion
modified due to disagreement, which could be an
‘except for’ qualification, or an adverse opinion. For
an example of a question in this area, see Paper
P7 December 2007 Q5 (a).
On discovering a material breach of financial
reporting standards, the auditor should bring the
matter to the attention of those charged with
governance. This is to highlight the seriousness of
the issue, and to ensure that those charged with
governance have full awareness of the technical
issues involved, and can therefore make an
informed decision with regard to amending the
financial statements.
Conclusion
There is a wide range of financial reporting
standards which are potentially examinable,
and candidates should be aware that a lack of
knowledge of these standards, which is assumed
from previous exams, will put their performance
in Paper P7 at a disadvantage. Candidates
should be conversant with the key aspects of all
examinable financial reporting standards, but
should focus their attention on the key financial
reporting matters outlined above. Ultimately, an
auditor of historical financial information cannot
hope to perform a quality audit in the absence of a
detailed knowledge and understanding of financial
reporting standards, which is why such matters
will regularly feature in the exam. Well-prepared
candidates can score very highly in such questions
by demonstrating their knowledge of a financial
reporting matter, but more importantly, applying
that knowledge to the issue faced by the auditor in
the question scenario provided.
Lisa Weaver is examiner for Paper P7
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OBU
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Oxford Brookes University graduates
58 Congratulations
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Geoff Holmberg congratulates all new BSc (hons) in applied
accounting graduates
59 OBU graduates
The full listing of the most recent 1,985 successful Oxford
Brookes University finalists
OBU GRADUATES student accountANT
page 58 NOVEMBER/DECEMBER 2008

Congratulations
to the OBU GRADUATES
Congratulations to all the successful students who have
been awarded the Oxford Brookes University BSc (hons)
in applied accounting.
There were a record number of high quality projects
submitted this session – over 2,500 resulting in nearly
2,000 new students being awarded degrees and the
standard was excellent. Over 8,000 ACCA students have
now graduated with Oxford Brookes University since the
partnership started in 2000.
Oxford Brookes University Business School enjoys
a unique relationship with ACCA. Between us we
have developed a study programme that meets the
demands of a professional qualification as well as those
of a degree. Students, who would not otherwise have
the opportunity to be awarded an Oxford Brookes
University degree, can now do so in virtually any part of
the world.
Oxford Brookes University is very proud of its
partnership with ACCA and in September 2008 the
UK’s Sunday Times named Oxford Brookes as the
UK’s leading modern university for the eighth year
in succession.
All of the students named in the next three pages will
be invited to a graduation ceremony to receive personal
congratulations from the University’s vice chancellor.

Geoff Holmberg
OBU programme director
OBU GRADUATES
page 59
FIRST CLASS HONOURS
Leighton, Mark Francis / Howland, Claire Margaret / Lay, John /
Goldsworthy, Christopher / Mossadiq Ali Ghanghro / Adeladun Bamikole
/ Ford, Beverley / Agasa, Samuel Magiya / Phillipson, Debbie Maria /
H’ng Yee Seang / Qi Yi Ting / Chung, Chi Ho / Ahamed Sajad Careem /
Morris, Jonathan Peter / Aziz, Anam Mustafa / Cheetham, Wessley
Brett / Qiu Yun / Chea, Soon / Gilbert, Ruth Lavinia M / Akinyemi,
Michael A / Oluwunmi, Ifeoluwa Elizabeth / Madiha Fatima Zuberi / Liu
Chang / Sekandi, Patrick Disani / Bell, Jarrod Samuel / Mubia, Beatrice
Wanjiku / Rehman, Zahida / Braisby, Adam / Barlow, Peter Matthew /
Hunt, Dawn / Manuwa, Adetutu Adetoro / Payne, Mary Louise / Muzna
Hussain / Afifa Ali Mohamed / Hammonds, Elaine Fay / Waqar
Mahmood Khan / Wojtowicz, Anna / Tan Mee Huay / Junaid, Hina /
Jason Ebenezer William / Lim, Choon Yee / Chan Ing Mei / Lee No El /
Jim Min Hwei / Navaneethan, Bothini / Loh Fwu Zian / Lim Mei Ling /
Goh Sze Leng, Jaclyn / Mohamed Muizzu / Chaudhry Muhammad
Faraz Rafique / Yew Zhi Hong / Ellis, Jane Claire / Goduhina, Vyara
Detelinova / Blake, Jessica Emily / Chivers, Jack / Linberg Wong Joon
Yong / Wangeci, Grace Wamaitha / Shah, Anjli / Lim Voon Sim / Tahera
Hussein Kanji / Ili Zawani Binti Ismail / Lee Von Yi / Chan Yi Munn /
Lee See Chia / Koo Sock Thin / Lee Mey Tze / Tam Mee Fong / Xu Xin /
Fan Chee Keong / Foong Rong Yi / Yang Su / Keng Hooi Yin / Leung Hoi
Wah, Janette / Kimani, Moses Mugo / Nteere, Mary / Wachira, Esther
Waringa / Ball, Sue / Osiomwan, Esohe Susan / Bell, David Alexander /
Sherchan, Sajeev / Burhan Naseem Awan / Macdonald, Eileen Sara /
Syrotiuk, James Michael / Douglas, Elizabeth Sarah / Coupe, Maxine /
Ahmed Saeed Sheikh / Aleena Kareem / Zhang Hongxia / Hicks, Tom
Ean / Muhammad Omer Khan / Sithambarnathan, Thurairam / Tota,
Dea Maria / Mbi, Kima Eyongnjang / Wen Zhibin / Buffrey, Philip John /
Price, Kate / Tan Chin Wuu / Ho, Yean Ling / Petrou, Christiana / Umer
Farooq / Amjed, Muhammad Muzzammil / Liu Weiwei / Mcgeown,
Gerald Anthony / Kaygorodtseva, Natalia / Desborough, Valerie Ann /
Hutson, Ricky / Rodgers, Anna / Lim Shi Rui / Abideen, Muhammad
Zain Ul / Teo, Shiyi / Ling Jin Leng, Rose / Adnan Hanif Khan /
Ombongi, Cecilia Kerubo / Neupane, Dipendra / Dambul, Olivia D /
Cheong Yew Jin / Zhang Mingli / Njeri Mbataru, Joyce Susan / Sun Zhe
/ Cai Wen Ling / Chen Bailin / Sam Cheng Hung / Saleem, Asim /
Gunaratne, Nirangi R K / Waqar Ehsan / Alidina, Mohamed Hussein A /
Kariuki, Njeri Betsy / Shakya, Poonam / Aziatul Akmam Atan / Hua Yijia
/ Muhammad Luqman Rafiq / Papanisiforou, Andreas / Meadows,
Rachel Jane / Usman Aftab / Lysiak, Anita / Lin Anji / Tomishima,
Masataka / Makwana, Sheetal / Molloy, Ciara / Wong Kar Mun / Tan
Yong Sheng / Chan May Teng / Kung Hai Ning, Joyce / Khoo Wen Huey,
Michelle / Chin Vui Shung, Kent / Hong Ee Hoong / Seah Mae Yue / Kho
Pei Ik / Oketch, Benson Odhiambo / Ngeno, Titus Kipkoech /
Pushparajah, Joseph Rukshan / Cox, Kathryn Sara / Muhammad Umair
Baig / Waseem Tariq / Saira Batool / Raheel Aslam / Mundia, Kenneth
Wamae / Chovancova-Silvestre, Svetlana / Irfan Ullah Khan / Collins,
Dorota Dagmara / Fasil Teka Birega / Ravalia, Reema Devram /
Adekoya, Feyikemi / Ahsan Ali Vahidy / Farhad Nizam / Mohammed Ali
Khan / Maria Chinoy / Connolly, Elizabeth M / Gardner, Edit / Gwimbi,
Firmina Tendai / Moshtaq Uddin Ahmed / Herbert, Darren / Zhao, Meng
/ Adegoke, Stephen Olusola / Nneka Patrick, Josephine / Nkata, Allan
Chief / M Martinazzo, Federica / Mohammad Ahsan Anwar / Sughra
Fatima Hilal / Ejiogu, Amanze Rajesh / Alebiosu, Adijat Omolola /
Muhammad Fahd Saqlain / Wightman, Kay / Ativie, Henshaw /
Ekwegh, Ogemdi Ndudi / Lai Pui Yan / Kerai, Rupesh / Syed Jahanzeb
Hasan, Jahanzeb / Li Yuman / Kuodza, Trevor Tapiwa / Matsilele,
Moreen Kudzai / Mugwindiri, Kudakwashe Clive / Liew Shu-Mi, Glenda
/ Butt Teng Teng / Ng Yeow Tiong, James / Ogunrekun, Olabanji O /
Gupta, Neha / Lee Sher Huey / Mehta, Sonali Jitendra / Shaharyar
Sabir Farooqi / Oan Ali / Areena Haider / Tian Tian / Reeham Sharmila /
FIND OUT MORE ABOUT THE OBU DEGREE
www.accaglobal.com/students/study_exams/qualifications/
degree/about/
Martins, Joel Caldeira / Wylie, Fiona Caroline / Hadley, Daniel / Lunk,
Joanne Marie / Mulla, Fatima / Lucas, Elizabeth Ann / Lazaridou,
Tamara / Fong Tak Jim, Jim / Zheng Qin Lin / Smith, Ashley / Barry,
Charlotte Claire / Iftikhar, Osama Jamshaid / Chen Fei / Wu Wenyang /
Hastings, Amy Claire / Levy, Rivkah / Yang / Howell, Vicky / Wileman,
Liana Kay / Dsa, Glen / Wu Jiao / Rose, Emma Jayne / Gregoriou,
Ioanna / Koltun, Elena / Cheung, Kwok Yip / Ishaque Ahmed Memon /
Akanyijuka, Johnson / Sim Poh Soon / Lee Li Fen / Lim Miao Ling /
Huang Siyun / Ng Loong Tatt, Benjamin / Mu Yi / Yeo Tun Jin / Asanka,
Udugama / Ng Cheng Yeng, Elaine / Fondi, Eugene Ngiejung / Obeng
Dwamena, Richard / Wong Yee Wei / Nyaguthii Wachira, Vera / Guo
Liwei / Tetali, Swathi / Madiha Pothiawala / Yiasoumi, Maria / Chan Ka
Wong / Mungai, Leonard Githinji / Cui Lan / Achieng, Kevin Okoth / Hui
Cheuk Yin, Derek / Wight, Laura Louise / Collins Kindzeka, Ke-Afoon /
Su Qiyang, Dadawa / Rowland, Lindsey Jane / Jayanoris, Kelvin
Edward / Zainuddin Mohd Sheikh / Chew Fang Yun / Yu Jiali / Yang
Yang, Jamie / Vu Phuong Anh / Kiama, Nancy Njoki Riguga / Jiang Lin /
Sadaf Maqsood Ali / Tan Woon Hua / Lim Jiechao / See Yeow Han,
Kenny / Stacy Vanessa / Harunrashid Osman / Simmons, Marna J /
Wells, Lorraine Catherine / Mwiu, Trevor Maingi / Jain, Vaibhav / Lee
Sor Hong / Abdullah Masood Baksh / Uzum, Anthony Ogboi / Farhan
Aslam / Aye Aye Thandar / Phool Rashid / Mohammad Danish /
Maitland, Emma Louise / Hall, Phillip Kevin / Koval’ova, Alena /
Belcher, Louisa Jane / Muhammad Husnain Haider / Gbadebo,
Babatunde / Kutu, Esther Abena / Mutea, Emily Mwendwa / Liew Yuk
En / Shah, Paras Dhirajlal / Shrestha, Gautam / Danso, Sergio Samuel /
Hills, Emma / Hyppolito, Livia / Wasel Ahmad Khan / Abdul Samad
Lalpuria / Wu Sibin, Evanne / Kyriacou, Michalis / Suri, Radhika /
Kazanjian, Varsine / Russell, Matthew Anthony / Mutuku, Brenda
Kanini / Pollock, Hayley Louise / Gupta, Sumit / Munyoki, Jackson
Kangata / Mariera, Alex Nyachieki / Bilsdorfer, Paul Theo / Ahmed Abid
Shafi / Elinesky, Andrew Louis / Chew Fon Lamn / Witcomb, Thomas
Ernest / Imran Haider / Greenwood, Deborah Ann / Mcclelland, Lisa /
Ferraz, Fernanda / Abdulrehman Shaukat / Syed Ahmed Ali Shah /
Adongo, Kenneth Oduor / Kazi, Faiza Parveen / Howard, Emily Jane /
Liu Ping / Pabst, Stacey / Coomber, Matthew / Nabeela Shafiq / Ju Yan
/ Teo Yong Sheng, Wayne / Kemp, Tara Louise / Qiu, Zhen / Wang Yu
Ling / Tu Qiang / Thea Wei Hau / Kee Sock Hwang / Muhammad
Ammar Amin / Heng Chun Keng / Danish Patanwala / Ahmad
Choudhary, M Umair / Lo, Yip Shing / May Ng / Sakina Roshanali Panju
/ Li Rui Feng / Mulinya, Yusuf / Chen Yan / Niu Jia / Rajbhandari,
Sandip / Hillman, Rebecca Angela / Gbadamosi, Gbolahan Razaq /
Shrestha, Sandeep / Dawson, James / Tan Chee Kuang / Nakiyi Muntu,
Julius / Jalal Tariq Shah / Ssendi, Augustine / Thiga, Andrew Muturi /
Jiangyang Shui / O’connell, Michelle Clare / Boog-Scott, Emily /
Johnson, Helen Louise / Stowell, Jennifer Anne / Patel, Heena / Peck,
Zoe Elizabeth / Panchal, Evelina / Liley, Samantha Kerry / Bauld, Mark /
Thong Kin Hong / Tor Joey / Lim Kok Aun / Chew Ai Leen / Ong Sze
Ting / Yeoh Kim Kooi, Edward / Hassan Hanif Bikya / Sundas Panni /
Adewumi, Babatunde / Edwards, Stephen Guy / Kamau, Perry Njeri /
Tan Lye Choo / Chee Sue Yin / Mirza, Bushra Moazzam Baig / Farhan
Haider / Teh, Ngee Suan / Valentine, Fru Anye / Hamza Saeed Bajwa /
Zhao, Yun Qi / Lee Chee Chuan / Cheong Yean Yeow / Christine Ang
Kim Hong / Lim Sook Li / Ch’ng Cheng Ing / Kristyn Wong Chuin Yi /
Lim Mei Phing / Chan Lei Sian, Connie / Ang Vern Yen / Yap Pei Chin /
Ngoi Tsen Li / Yee Li Yin / Chan Zhi Hoe / Chan, Felicia / Yap Pei Ting /
Tan Yi Wen / Lim Sing Yong / Kan Zi Yao / Cheong Yilian / Soo Tatt
Hoong / Balasingam, Sharmela / Perumal S A/L Vythilingam / Tan Wei
Ling / Toon, Kuan Han / Cheng Wangshu / Zhang Qi Jun / Bakhshi,
Kulsoom Abbas / Tan Mui Pheng / Wellyanti / Melly / Teo, Wei Min /
Tay, Joanna / Khoo, Ei Leen / Lew Huey Wen / Rizwan Ali / Kings,
Susan / Zoya Aqleem Uddin / Yong, Su-N / Ng Hsiao Harn, Pamela /
Lim Sui Yuan / Liaw Hui Zhen / Koutsidou, Noni / Ridge, Stuart / Hong
Sheng Chiao / Syed Hammad Haider / Ang, Hock Ann
UPPER SECOND CLASS HONOURS
Zhang Qi / Arobieke, Oluwole Olaolu / Webster, Craig Matthew /
Rustagi, Bhuvan / Aabs, Steven Mark / Feeney, Cathal / Subedi,
Dipendra / Roberts, Karen / Dai, Wen / Chineah, Rishan / Jang Ping,
Lai / Mwangi, Gerald Muniu / Loh Soo Foo / L H B R De Silva, B /
Obasanya, Titilayo Olutobi / Katongo, Patson / Aruna, Kazeem Gbenga /
Shafaat Iqbal Musavi / Zelalem, Hunbelew Gebretsadik / Lynn, Stephen
/ Ganesh Venkatasalam / Wang Dan / Ali Raza Kirmani / Qin Ru /
Taiwo, Olusola Martha / Smid, Roman / Jabbor, Sanjar / Adeoti,
Olalekan O Stephen / Ma Lian Qun / Benedict, Leo Olanrewaju / Chen
Ying / Wei Dong / Nakyesa Kania, Jenipher / Mpakanya, Alex / Kelly,
Anna Marie / Chukwuazawom, Daniel C / Oguntoye, Olakunle Abayomi
/ Wang Jing Zi / Ilic, Zoran / Muhammad Shariq / Lawal, Ibrahim
Adetunji / Kuzmin, Andrey / Karmaker, Debdulal / Hunduza, Macjones /
Wonnacott, Sally Anne / Walker, Adam Nicholas / Robertson, Denise
Mary / Oyeleye, Paul Ifedayo / Nyamaswe, Tinashe Lorraine / Chai Chih
Kai / Lim Yan Lin / Ying Lixin / Raji, Oluwamuyiwa Emmanuel / Kaluku,
Benson Muthoka / Gabriel, Nirvana Mary / Wang Rong / Liao Yisha /
Guo Sukun / Okombo, Verah Janet / Du, Yong Fang / Zhang Wei / Liang
Yan / Sun, Lin / Tan Lee Khoon, Ivan / Etuaful, Usman K / Babatunde
Oseni, Ganiu Adeleye / Lee Foong Yin, Jenny / Thomas, Rebecca Clare /
Lim Sheue Fang / Seelal, Nisha / Shamim, Rizwana / Khandwalla,
Imran Akbar / Law Eng Nee / Ng Chong Yeow, Steven / Norazreena Bte
Mohammad / Chisvo, Teresa Batsirai / Mahomed, Abdul / Ru Hai Jing /
Aldred Jones, Steven T / Yadav, Sacheen / Wu Rui Juan / Sharjeel
Ahmed Malik / Xue Fan / Wong Lai Kim / Lee Soo Gyan / Neo Tai Geng
/ Yaugoob Abdulla / Siew Sook Peng / Pang Moy Kwee / Loke Kai Xin /
Koh Boon Chin / Ho Theng Theng / Goh Fui Ying / Lee Tee Leong / Au,
Suet Sum / Tang Hooi Sin / Lee Yee Mei, Jasmine / Mah Hui Yin / Yee
Soon Chong / Deziree Shoayin Maung / Tan Bee Leng / Nadhilah Binti
Md Azizis / Balathevan, Devina / Binti Naziff, Siti Khairul Atiah / Sim
Kuan Chern / Kho Xin Wei / Jinadu, Ajibola Olalekan / Wong Teng Joo /
Woon Khai Lee / Smyth, Hilary Rose / Shi Zhan / Arooze Tahir / Mburu,
Ann Muthithi / Stanley, Judy Wambui / Sayyed, Mariha / Tay Ruihong /
Liu Su / Wang Yongli, Diana / He Hua / Chow Mei Ling / Faith Hiew
Wei Pau / Chong Kar Chun / Wang Shuan Yoong / Choy, Yvonne / Lim
Sheng Hong / Lee Sze Fei / Ammar Fida Alraee / Wyatt, Joanne Louise /
Lemma, Berhit Getachew / Zhdanov, Vitaly / Yawer Nawaz /
Uyovbukerhi, Elo Claire / Nantumbwe, Olivia / Low Yoke Hoon, Fannie /
Ng Choon Hong, Valentina / Chen, Tse Chau / Tan Geok Leng / Sim Tzer
Phing / Sivashankari, R / Abdul Wahid, Ahmed / Khin Chaw Su Aung /
Lim Yuen Peng / Wong Ying Ying / Tan Bey / Li Juanjuan / Low Sook
Yoong / Ong Rui Yang, Ryan / Tan Thai Ngee / Oranye, Nwando / Phua
Yen Ling / Chin Ee Ling / Teh Yi Khan / Jolene Khoo Ling Mian / Choo,
Mae-Xi / Christopher Wong / Yap Vei Ee / Teo Chee Siang, Elvin / Choo
See Yin / Wong Ee Mei / Yong Chyn Wey / Wang Lu / Neo Li Hwa / Tai
Chiou Huey / Vijayanthi, H D M / Xona Anis / Wigmore, Neil Richard /
Tajudeen Temitope, Bello / Anadebe, Adejumoke Tolulope / Ahmed
Alwy Badawy / Woo See Ching / Papadopoulos, Michalis / Mohammed
A Bari M Nasher / Ashaju, Abdulrasaq O / Zhao, Yanhong / Malone,
Damian / Chaudhry, Kashif Ali / Muhammad Amin Asif / Sethi, Jubran
Hameed / Mombo Amuti, Catherine / Serem, Kenneth Kiprop / Ng Guo
Quan / Yap Xin-Ni Sarah / Lo Siaw Jun / Agi, Abege Patrick /
Neophytou, Marianna / Mohammed A M, Raza / Zeeshan Amjad /
Karki, Biddya Bhushan / Tira, Olais Robert / Lwal, Geoffrey Griffin /
Htin Kyaw Kyaw, Kyaw Kyaw / Teh Chu Sim / Abdi Mohamedamin Ali /
Gazi, Munesu Tafadzwa / Salam, Omer / Li Qiang / Wang Jia Chen,
Jennifer / Lasisi, Oyeronke Abosede / Ajibose, Kayode Oladipupo / Kwok
Boh Kuen, Cindy / Wong Keng Fong / Machamire, Annie / Wei Na /
OBU GRADUATES
page 60
Farhana Bte Mohd Jamil / Teh Su Sin / Tee Kwee Jean / Kwok Kam Mat
/ Awais Zahid / Zhang Yan / Hadley, Cornice Norrissor / Wang Mengli /
Zhou Xing Yue / Nan Khin Khin / Ngatia, Florence Wamuyu / Wong Mei
Lian, Lydia / Liu Xiaojing / Li Qianyu / Amna Aslam / Ha Wai Ih / Lim
Mei Pei, Elaine / Tan Ching Wen / Sinera, Mohamed / Brown, Stephanie
Jennifer / Gibbon, Emma Louise / Guo, Linhao / Lau Li Ting / Cai Lei,
Lei / Muhammad Shahbaz Qureshi / Evianty / Thie Ting Khai / Tay Si
Hui / Rafiq, Muhammad Hashim / Jehanaara Ahmed Siddiqui / Hafiz
Hamid Saeed / Muddssar Shahzad / Ho Yin Fung / Wu Wentian, Azure /
Zhu Hong / Vakil, Mohammed Ali / Bastola, Rajesh / Sond, Simmy Kaur
/ Ssemitala, Lawrence K / Shahbaz Khan / Offei, Samuel / Khalid Kadri,
Sayyed Majid / Sam Jeng Wen / Song Yan / Gachuhi, Peter Muriithi /
Yong Mee Ling / Cao Hui Lin / Halai Dharmita Shivji / Tausheef Kasoo /
Muhammad Zayed Maud / Poon Pak Lun / Zhong Liu Qiong / Noor
Zilawati Zainal A / Kabengwa, Michael / Jaufar Ali / Kailash Kumar /
Muhammad Akif Aslam / Parvesh Kumar / Jones, Linda Marcella / Nor
Zakiah Hanum B Shairi / Lee On Po / Rossetti, Christian / Melesse,
Mastewal Alemu / Tunwase, Oladipupo Adebayo / Yang Wenxia / Chong
See Peng / Chirwa, Margareth Anne / Teo Lily / Kuek Sui Khing, Alan /
Yeo, Jieling, Joyce / Tachibana, Miki / Asim Khalid Khan / Hong Weilun,
Texas / Kathriya Ang Ziwen / Victor, Jeevan / Munirah Mohd Sabri /
Limwaiyern / Iliyana Binti Khirudin / Cheng Chau Sim / Leung Tsz
Chung / Chepkurgor, Kipkenei / Amolo, George Munga / Min, Yuanhua /
Ajayi, Oluwatosin / Extross, Gareth Daniel / Rawal, Neha / Aseh, Anobit
Angwanche C / Lim Jwo Woei / Fidia, Andreana / Ali, Muhammad /
Omer Farooq / Danyal Iftikhar / Anwuri, Omasilem / Ojok Oryema,
Gilbert / Nalwanga, Christine / Murphy, Peter Matthew / Tennekoon,
Ishantha Dimuthu / Xue, Dong Mei / Rustam Khan / Umair Sadiq /
Zaman Iqbal / Mwasaru, Inosenti Mwandau / Faraz Javed Siddiqui /
Tajwer Yaqoob / Nassibu Mkimbo, Louisa / Gatheru, Charity Muthoni /
Shezmin Sher Ali Rajan / Davis, Chillion Anthony / Nakasala Mukuwa,
Martin / Herath Mudiyanselage, M S / Ajayi, Ayodele Samuel / Najjuka,
Joanne Elizabeth / Naluyiga, Harriet / Asiimwe, Julius M / Irisch
Yeboah, Martin / Sharma, Umesh / Khanal, Prasansa / Khurram Ali /
Abdul Rahman, Bashir Ali / Munsele, Kakosa Mwamba / Sahi, Awais
Ahmed / Vettivel, Kumanan / Ganatra, Osman Adam / Jaffer Hussain,
Zaheer A / Mustanser Iqbal / Majaz Islam Laghari / Salau, Lateef
Olakunle / M Umair Sharif / Shittu, Jubril Adetokunbo / Chonde, Diana
/ Bisiriyu, Andrew Oluwaseun / Gumunyu, Stephen Tapera / Lin, Ting /
Imtiaz Aminul Haque, Imtiaz / Budhathoki, Ram Sundar / Jahangir
Alam / Manduku, Lovejoy Tamsanqa / Wong Peiliang / Abrey, Alexander
John / Omar Farooq / Appiah, Gideon Hansen / Syed Muhammad
Farhan / Farah Binte Saleh / Kaufman, Matthew Alexander / Alnoor Aziz
Budhwani / Asif Ashraf Ali / Chalise, Sabij / Ali Najma Said / Melton,
Terence / Papaioannou, Vasiliki / Shadarevian, Haig / Abbass,
Mohamed Sharaf / Umar Farooq / Nyagah, Murimi Ceasar / Liang,
Yanyan / Sowerby, Christopher / Zubair Yousaf / Okwenda, Omondi Felix
/ Hart, Kathryn Louise / Bolton, Catherine / Chan Chai Lee / Phungeh
Visas, Michael Refinus / Ali Ejaz Siddiqui / Ang Yong Bin / Matthews,
Codisha Remona / Duru, Henry Chidi / Aslam, Imran / Mittal, Meenu /
Kwenda, Maunga / Adenubi, Rinsola Tosin / Chong Simon / Oshinuga,
Morenike Olushola / Aden Abdikhani Ali / Chariandy, Candice C / Abdul
Qayoum / Aireen / Sabu Puthenpurayil Chacko / Usman Khalil / Abdul
Moeed Tariq / Shayan Ahmed Qureshi / Udo, Chinedu Obidinma / Tung
Pui Mun, Charmine / Bolaji, Rotimi Bode / Onaga, Henrietta Ifeanyi /
Khan, Adil Javed / Muhammad Faheem / Ololo, Tosanwunmi Lucky /
Jiang Bo / Ojo, Oluwasayo Omolola / Olarinoye, Omobolanle / Ozoya,
Modupe Olohirere / Lila, Frieda / S Hamid Ali Shah Bukhari / Shah,
Suchita / Mawson, Lisa / Jean-Louis, Marilyn Jody / Ndichu, Patrick
Ngigi / Malcolm Leow Hwai Jiat / Muhammad Umair Maniar / Xie Jing /
Syed Mustafa Ali Shah / Maliva, John Mweti / Elondo, Lauvet Tse /
Kibet Cherutich, Bernard / Ibtahaj Ahmad Hashmi / Rao Jun / Parakh,
Nitin / Tan Zhi Wei / Mweetwa, Chilombo Shinga / Chirengwa, Dereck /
Nyagano, Tafadzwa Goodman / Muchenje, Admire / Sanangura,
Ngonidzashe / Malunda, Bernard K / Yohane, Romeo / Makombe,
Christopher Tinei / Mudzamba, Michael / Mtisi, Johnson / Savieri,
Johanes / Muzvondiwa, Emely / Chikara, Tracey Tariro / Saruchera,
Athena Marsha / Bento, Pritchard Tatenda / Chitsike, Farai / Fadamiro,
Omobolanle / Azizah Ali Mohd Ashfar / Gao Xiang / Nepal, Dharana /
Abdul Rehman Mirza / Zhou Wen Ming / Patel, Anita Hasmukhbhai /
Darku, Edem Shine / Frimpong, Immanuel Bediako / Yong Sek Lan /
Zhang Boya / Ahmad Tajuddin Yeop Aznan / Tsang, Man Fei / Li / Sana
Zeb / Alam Mashuk, Md Zane / Muhammad Hashim Shahid / Saleem /
King, Abiola Oluwatoyin / Syed Osama Afaq / Tufail, Fahad-Bin / Syed
Muhammad Fahad / Graham, Lynsey Jane / Mozahid, Mdabul Kalam /
Mustafa Waleed Ahmed / Greenwell, Richard Michael / Davies, Marc
Phillipe / Folami, Oluwaseyi Anthony / Milambo, Eunice Patience /
student accountANT
NOVEMBER/DECEMBER 2008
matthew sykes
memorial prize
Best project for 2007/2008
Following a recent Examination Board at Oxford
Brookes University, Affan Ali was awarded the
Matthew Sykes memorial prize for the best
project of 2007/2008.
The project was an analysis of Shell Pakistan
Ltd and, in the opinion of the judges, the
analysis was coherent, accurate, informative
logical and intelligent.
Congratulations to Affan Ali from all the
staff at Oxford Brookes University Business
School and ACCA. Look out for a profile of
Affan Ali in student accountant in 2009.
Coyle, Eileen Teresa / Yue Liang / Harris, Iona Judith / Ei Lin Khaing /
Khanal, Avilasha / Joseph, Robin Skariah / Muzembe, Memory Cecilia /
Jibran Ahmed Qureshi / Xu Tao / Kofi Ikpeme, Ekanem / Lee Chiew
Yeong / Ghaghda, Jatin Manharlal / Qi, Zhang / Cheng Jie Yu / Wang
Chin Wei / Digby, Sandra Elizabeth / Adeyanju, Adetomike / Byard,
Emma / Poole, Michelle Louise / Adams, Selina / Oyeyemi, Oluwatoyin S /
Cai, Jin G / Butler, Julia Samantha / Aye Sandar Kyaw / Sudarshan,
Rajasingham / Seel, Juliette Alison / Khin Sandar Kyaw / Khin Chaw Su
Win / Musa, Seyin / Agravat, Trushna Amritlal / Tang Chen Son / Zhang
Yuan / Ogunbiyi, Olanrewaju A / Namanya, David / Ncube, Matthew /
Lau, Ting Yue / Mustafa, Noman / Ageni Yusuf, Attah / Chong May Yuen
/ Hudson, Allan / Omer Tanzeel / Thwe, Nang Yee Mon / Asad Jabbar /
Qiu Yiyuan / Yang Shanshan / Doctor, Shiroy Cyrus / Ubaid Ur Rehman
/ Nsoyuka, Timgha Ghislain / Elias, Yusenyu Mbunwe / Mang’uru, Rose
Wanjiru / Khawaja Muhammad Mohsin / Okuku, Victor Kalande / Xiong
Xiao Bing / Legrigore, Jean Patrick Bernard / Ngunze, Mutheu /
Muhammad Faheem Chughtai / Afzaal Modassir Shaukat / Muazzam
Shahid Awan / Chulu, Ronald / Seow Xiu Zhen / Lin Shunsheng,
William / Muneeb Ur Rehman / Ojewumi, Kehinde / Guo Meng Jia /
Huang Ying, Sharon / Lee Tze Peng, Maurice / Ojo, Janet Eneze /
Ioannides, Stelios / Worrall, David Ivan / Yinusa, Muniratu Iremah /
Peiris, Anusha Ruwanthi / Fu, Yao / Olatunji, Ibikunle / Kariuki, Rose
Kabura / Chan Wei / Nik Farhan Nik Md Nasir / Song Yuhuan / Lim Wei
Kean / Sumaiyah Maqsood Ali / Tian Li / Wang, Yan Qin / Yue, Hu /
Zhang Li Ping / Zheng Minghao / Zhang Yanan / Lu Xi Rong / Parkash,
Aman Yadav / Yuan Wei / He Wanchun, Adrian / Shrestha, Sabin / Goh
Siaw Lian / Bai Lu / Lau Yen Siew / Cao Yi Qing, Janice / Jiwa, Shezmin
Nizar / Shah, Khushbu Bharatkumar / Jha, Chandnee / Tan Siau Ching
/ James, Dalton Mwaghogho / Mayega, David Makanga / Taiwo, Abiola
Kofoworola / Ojwiya, Richard Oola / Anwar Shafiq / Masimbira,
Chenjerai / Hignett, Emma Louise / Haskell, Simon Matthew / Falade,
Temitope Ebenezer / Mohammad Amir Khan / Perinpanayagam, Rubini
Premila / Mwiu, Victor Kimweli / Peprah, Michael Akwasi / Sherali V M,
Shirin / Arowojolu, Olusola O / Doxilly, Kay / Bamigbowu, Olajide
Solomon / Muhammad-Awais-Rana / Ramoutar, Prakash / Jay Kumar /
Farquharson, Duwan Lance / Hamid, Syed Muhammad / Azkar, Fahad /
Odejimi, Temitope Victoria / Armstrong, Neil Robert Barler /
Muhammad Umair Alam / Zar Li / Syed Ali Hamza / Okpere, Gerald
Terrence / Mullin, Raymond / Mccappin, Gary / Wang, Lin Lin / Jaffer,
Shaziya Sajjad / Cummings, Kelly Jacqueline / Choi Pak Kei, Vincent /
Gong Ming / Nakayaga, Margaret Olivia / Hassan, Farooq / Waseem
Salam / Adams, Elizabeth Helen / Usman Khattak / Oozeerally, Rehana
Oumme Banin / Olaiya, Taiwo Lawrence / Ogunbade, Oludayo Oluwole
/ Mohammad F Chowdhury / Lou, Jin / Elmaghrabi, Tarek Hassan /
Bukontas, Andrius / Lawal, Omotayo Oladunni / Mbala, George /
Olagunju, Gbemisola Y / Najia Ansari / Igiri, Grace Kalu / S M Talha
Pasha / Siriboe, Nana Akyaama / Aousaf Rafique / Zowk, Omar /
Acquah, Jonas Oware / Chomba, Mwenya / Deligny, Hubert / Chia Yoke
Pei / Koh Heowk Kiat / Ali Muddassar Malik / Ryan-Evans, Sally
Elizabeth T / Yap Li Ping, Felicia / Agbada, Samuel Kofi / Tamayah,
Brinda Kalisetty / Javeria Mushtaq / Syed / Olanipekun, Ibukun Mary /
Adebayo, Oluwole / Tay Teng Guan / Gunda, Raymond / Cai, Shuhua /
Hadia Mazhar / Kwakye, Nana Yaw / Wang Chen / Wang Yan / Sabeka
Arshad / Gao Xun / Gabb, Tina Michelle / Gill, Nicholas John / Ding Mei
Leng, Sandy / Khuram Shahzad / Cook, Anna Margaret / Ajiboye,
Mofoluwasho O / Lee Wai Chong, Joan / Tinawati / Magic, Ludovic /
Hancock, Clare / Oluponmile, Olakunle / Bimolee, Supreeti / Drake,
Michelle Jean / Tan, Amy / Pu, Xiaosen / Kibicho, Martin Muya / Halima
Nasser Al Riyamy / Kwan Siew Hui, Adel / Coles, Jessica Louise / Lee
Puong Khong, Jason / Zhao, Xiao / Yuli / Martyn, Ayodele Rowland C /
Teo Shih Yee / Giwa-Osagie, Eghosa Ayodeji / Baseer Ahmed /
Frangeskides, Panayiotis / Choi Ka Fai, Tommy / Yim Mun Leong, Leon
/ Kaleemullah Malik / Okerentugba Thompson, Onome / Nzengung,
Fidelis / Lim Pey Hua / Meow, Khoon Fatt / Khoo Chee Kheng / Haris
Bin Tipoo / Meli / Yuan Chengai / Syed Shahab Shahid / Saw Keng Ling
/ Goh Lee Soon / Manandhar, Sunil / Koroma, Tamba / Mali, Sanendra /
Muhammad Suleman Akram / Meredith, Mylene / Fabiola Azaar, Andoh
/ Liu, Xing Chi / Wang, Shuai / Khadka, Shishir / Ahmed Khan /
Muhammad Saad Afzal / Ramay, Afnan / Mohammed Dahir Ahmed /
Awais Ul Haq / Senkevich, Alexander / Radia, Mansi Naresh / Talhah
Bin Mohd Azman / Aransi, Adeyemi S / Raja Umar Farooq / Frimpong,
Samuel Nana Yaw / Hui Suk Ting, Amanda / Shahrukh Zaman / Nasir
Abbas / Gul, Rizwan / Manzar Jawaid / Lungrin, Hope M / Shahid Ur
Rehman / Bushra Khurshid Malik / Humphrey Oviasogie, Osaigbovo /
Bwalya, Christopher / Zara Imtiaz Khan / Williams, Fortune Kudzai /
Mohammad Abdullah Qazi / Shenila D/O Hakim / Muhammad-Salar-
Arain / Nadeem Hussain / Munira Maamun Abubakar / Gong Qingling /
Mao Feng / Huang Danni / Pan Yan / Zhou Zhengqing / Dong Wen / Lee
Soh Boon / Zhao Yujia / Tan Seoh Yen / Bu Huat Yuan / Adesokan,
Adedamola O / Plimmer, Stephen Aaron / Danso, Sintim Lawrence /
Latifah Abdul Ghani / Chipato, Tawuya Wilbert / Sohail Ali / Mya Myint
Zu / Ng Kwun Ka / Syed Usama Anwar / Chew Chin Ming / Lim Sock
Mian, Ellen / Ngai Choi Hung / Aekyeong Kim / Jeypreiya Kuppusamy /
Oh Ee Jia / Osueke, Justus Chinasa / Hassan, Kazi Mahboob / Kharel,
Suman / Rabiu, Olatunji Nurudeen / Bayomiuy, Samir / Khan, Shehryar
/ Fordjour, Sarah Gyesi / Arish Azeem / Muhammad Zeeshan Rahman /
Kyomuhendo, Sophia / Kamangirira, Mirabelle Rumbidzayi / Sheikh
Talha Maqsood / Seeboruth, Avina / Mirza Muhammad Javed / Zhang
Yi Xin / Lim Pey Han / Collins, Kathleen Mary / Sharjeel Akhtar, Rana /
Ndungo, Paul Maganjo / Yuan Shu Hua / Zhou Chen / Choo Xianjie /
O’reilly, James Alexander / Varkey, Mary Ann / A/P Changara Singh,
Harmeet Kaur / Ata Ur Rehman / Pereira, Sunil / Wu, Zhou / Freha
Sheikh / Yap Chee Zhe, Pierre / Faraz Ahmed Quddusi / Jia Yu Zhu /
Kathrsachchi, Eresh R / Kiiza, Ricson / Mudondo, Joseph / Banswah,
Paul Dmitri / Guo Shiyu / Hou Fengli / Allotey-Pappoe, Jonathan /
Bat-Ochir, Sainbolor / Reynolds, Helen Ann / Kanteh, Ousman / Oakley,
Louise / Dacosta, Louie / Pamukova, Roxandra D / Alam, Shamsul /
Jiang Xiao Ying / Salman Shahab, Malick M / Sahi, Vasudha / Shahpuri,
Ishpal / Robeel Riaz / Wong Hong Wei, Melvin / Odeniyi, Omolara /
Verghese, Jeethy Theresa / Shahid, Md Khaled Bin / Witcher, Sharon
Mary / Waqas Ahmed / Hlaing, Khin Khin / Khoo Chiao Ling / Liew
OBU GRADUATES
page 61
Keng Meng / Peracha, Mohammad Taimoor / Chin Pei Ching, Diana /
Goh Jun Hui, Alton / Mahmood, Mohsin / Chakraborty, Bodhiswatta /
Zhuang Li Fang / Khurram Ikram / Cornell, Tatyana / Kee Siew Gek /
Agustina / Musonda, Jeff / Danish Zafar / Salman, Raja Muhammad /
Tian Yang / Eng Chen Lian / Khurram Ajaz / Tariq Ullah / Sheikh
Mohamud, Mohamed A / Lim Lay Wei / Khor Hui Lee / Atta-Baah,
Bright / Xia Bing / Adedoyin-Bolaji, Adewale / Mirza Agha Hassan /
Vinita A/P Shanmugarajah / Kong Siew Ngoo / Adam, Sana Aboobaker /
Jeremy Jian-Ming Tan / Hong Kah Yean / Chow Yvonne / Bilal Younis
Chudher / Man Singh, Rishav / Aw Sheng Yuen / Ho Tze Lih / Loh, Jon
Ming / Ong Kee Tiong / Wong Siew Wen / Teng Wan Shin / Liew Wah
Tang / Yew Suan Li / Liu Li Kun / Loh Hui Wen / Fleck, Helen Jane /
Nehra, Mayank / Muhammad Adeel Edhi / Sumair Sikandar Shaikh /
Daw Aye Aye Myint / Suleiman, Nana Aishat E / Ekeoma, Ugochukwu
Emmanuel / Asma / Memon, Waqqas Shabir / Hina Zainab / Benney,
Pauline / Akbar Afzal Jessani / Gardner, Juanita Teresa / Shehzad Jiwani
/ Qi Wang / Boreham, Paul Malcolm / Odei-Kissi, Pamela Sarah / Chan
Lye Nah / Boima, Prince Sitsofe / Syed Mohsin Ali / Noman Tahir /
Chang Shi Wei
LOWER SECOND CLASS HONOURS
Ali Hudhaib / Sakuhuni, Stephen / Chashmawala, Muhammed Jawad /
Muhammad Imran Sodher, Muhammad / Ohene-Asiamah, Kofi /
Kamoga, Badru / Odebunmi, Oluwatoyin Jacob / Quaye, Rhoda Aryeley
/ Hallybone, Stacy Caroline / Phokoso, Thokozani Andrew / Mudoti,
Gilbert / Ho Kah Wai / Kamara, Siamba / Alupo, Grace / Anwar, Rehan
/ Aripov, Ulugbek / Wright, Beverley Nadine Julie / Mangeni, Robert /
Oladokun, Olasunkanmi K / Odindo, Beryl Audrey Auma / Kattah,
Christian Kofi / Nalumansi, Esta M / Choi Hiu Pui / Tabish Ali Ahmed /
Baby, John / Waiswa, Peter Isiko / Syed Mohammad Asim / Lim Teck
Chuan / Chen Yi Feng / Triftarides, Constantia / Boateng, Alexander /
Liu Jun Feng / Chen Fang Yong / Owusu Nyarko, Bernard / Ma Jing /
Pang Rui / Zhang Duan / Fofana, Mamadi / Asante, Jude Kwadwo / Tan
Hui Cheng / Liew Lay Peng, Stella / Loh Chuan Po / Wang Hai Bin /
Gyampoh, Ted / Dahwa, Tatenda Lucy / Zhang Jihong / Lee, Pui Shan /
Shafeeu, Ali / Yeo Lee Yong / Aas Abdulla / Ngu, Kee Hong /
Nidyanandan, Kamalashini / Yoong Siew Ling / Kong Yin Yin / Tan Pui
Yee / Teow Heap Fong / Elaine Tay Ee-Ying / Muhamad Faizal Bin
Khalid / Dhaliwal, Menisha Parveen Kaur / Lee Wee Ja / Tang, Sung
Ming / Irfana Sultan / Liew Sam Ho / Yeo Poi Kim / Toh Mei Ling /
Singh, Savitree / Xie Chun Hua / Feng Yan / Xu Yun, Joyce / Bharj,
Jaspal Singh / Liew Joon Kian / Khor Jay Ee / Sim Ching Joo, Sharon /
Alicia Tham Li Shyen / Law Yee Tang / Teo Mei Zhen, Hazel / Mo Yuen
Shan / Jing Si Yuan / Goh Took Siew / Shehzad Ali Badami / Chan Pei
Ting / Nlashi, Patrick Edison / Chew Yong Chin / Lim Joo Chern / Tie,
Suk Huong / Ng Lee Chin / Karna, Pravin Kumar / Kushwaha, Rajendra
/ Valerie Yee Siew Lee / Goh Yaw Ming / Ang Poh Lian / Chen Liang /
Lee Bee Swan, Alice / Teh Guat Theng / Chai Wen Ting / Heng Wan
Keng / Qu Luyi / Cynthia Ong Mei Ting / Jian Jian / Liew Hui Yee,
Wendy / Ong Pei Chee, Peggy / Liew Ing Shian / Sakhawat Ali /
Boodhoo, Mohamad Noman A / Jiang, Naizhen / Isaac, Lee Hun Siang
/ Adeyemi, Biodun Isaac / Cardoza, Hortense Leonie / Mohammad
Zillur Rahman / Merhej, Wissam / Chick, Ester / Kee Ai Li / Susanne
Wong Xue San / Teh Siew Chian / Tan Chai Fung, Jessica / Masood
Ahmed Qureshi / Chiang, Sze May / Ye Li Yu / Hammad Shahid Ali /
Muhammad Imran Gul / Addae Antwi, Richmond / Tchantcheu,
Benedict G / Wong Man Yee, Phoebe / Xu Jia / Wang Jing / Bilal
Hassan Salman / Liu, Qiao Qiao / Zhao Jie / Li Bowen / Liu Hangyong /
Cheah Ching Fern / Md Mohitul Islam / Kamran Ghous / Binaei,
Mehnoosh / Feng Ke / Yang Ye / Affan Ali / Asim Mahmood / Ni Lei,
Brenda / Ooi Lin Sim / Shrestha, Nitendra / Ahmed Shifau /
Nurkarimah Kamilah Abas / Abu Md Sayem / Yii Siew Yeng, Annie /
Bhikajee, Jayashree / Moo, Mei Leng / Ofori, Justice Kingsley / Lee
Choon Heng / Wang Ning / Lee Pei Yin / Kabwe, Martin / Eusof Izzudin,
Mohamed Faiz / Li Li / Wong Yat Lung / Adjei-Quaye, A L / Zhong Min
Xiao / Lui Hang Chi / Wong Yen Fang / Su Yakun / Fateh Ali Khan /
Mohamed Zaeem / Oluwole, Omolayo Joseph / Hassan Ali / So Ka
Chun / Min Xuefang / Samuel, Theodora Vicki / Nartey, Samuel Tetteh /
Nur Anneeza Yahya / Wang, Ying / Ting Yew Siong / Apaloo, Gilbert
Spio / Teng Jing Chan / Maltezos, Michael / Adekanmbi, Oluwatosin O /
Yusufali, Insiyah Mustafa / Moulton, Dave Anthony / Kumwenda, Edgar
Daire / Igbalaiye, Lukman Yunus / Aniyikaye, Oluwatoyin M / Lim Ju
Mon / Ding Ming-Hui / Pandit, Suresh / Mirza Imran Baig / Kunda,
Guylet / Ogoti, Fred Kerini / Onalaja, Lawal Adeyeri / Fawad Haider /
Rahaman, Zaheer / Muhammad Shahid / Price, Karen / Saquib Swaleh
/ Ahmed Dustgir / Ho Ming Hui / Fernandes, Donald Sanjohn /
Hammad Ahmed / Sana Hasan / Akinwunmi, Olufunmilayo Adebisi /
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Chen Ik Eng / Ashiadey, Emmanuel Kwame / Nie Jian Fang /
Nakitende, Judith I / Morrison, Loretta Amanda / Sangotumo,
Theophilus Babatunde / Nduge, Lovett Nduge / Polverigiani, Sonia /
Zahid Hussain Qureshi / Marlina / Mvula, Aubrey / Natusiima, B Caleb
/ Mohammad Fareed, Malik / Atif Butt / Haachitwe, Bbenkele James /
Haider Mehmood Kiani / Hughes-Lartey, Kuukua / Imran Salim / Syed
Irfan Hayat / Shoniyi, Temitope A / Miller, Angela / Muhammad Zia /
Abdul Ahad Hilaly / Ama Njoku, Chukwunonyerem / Iqbal, Imran /
Chevannes, Yvonne / Rana Mohammad Azeem / Antoniou, Maria /
Danso, Olivia / Hunter, Andrea Diana / Sembatya Kaboggoza, Richard
John / Chipanda, Lessa Chetabeje / Daniyal Hasan / Mariam Burney /
Ahmad, Sardar / Jacquelyn John / Hay, John Paul / Fawad Shaukat /
Shahab Arif / Majonga, Admire M / Baalvan, Indu / Seng Lee Choo /
Marquis, Renette Elizabeth / Munib Ur Rashid / Alam, Uzair /
Dooboreea, Dushanandsingh / Wan Zhong Yu, Caroline / Zunduna,
Helen / Wallace, Nandi / Chen Xiao / Zulu, Stanslas / Nauman Ashraf /
Sheeraz Aftab / Ngegbai, Bayea Agnes Kpanja / Humayoun Gul Khan /
Enechukwu, Humphrey U / Allen, Juliette Ottilee / Muhammad Amjad /
Bello Abdulkadir Abu / Muhammad Asad / Xu Jia Hui / Akindele,
Oluwakemi M / Akinmejiwa, Smart Oluwabamise / Higson-Turner, Irene
Deborah R / Shah, Sayam / Pearson, Ty / Gbondo-Tugbawa, Aiah /
Gotora, Gladness / Mohamed Ibrahim Mohamed / Doku, Maxwell
Tetteh / Muhammad Ashraf / Chiek Yin Mei / Ong Disi / Ahmad,
Muddasar / Okunrinboye, Olajide / Ali Ahmed / Njoroge, Monica /
Mashaah, Phillip / Mudenha, Tamari Tariro / Malunga, Robert Kudzai /
Musonza, Chiedza Felicitas / Charandura, Tendai / Simakani, Joshua /
Machingambi, Grace / Manuhwa, Taurai / Mufandaedza, Olivia /
Mwanandimai, Matthew K / Mukwati, Vengai / Dube, Everson Simba /
Masiya, Frank / Muchatuta, Loveledge / Zanza, Tendayi Vincent /
Binnyuy, Sighan Mustafa / Newland, Alusine Babatunde / Diophantine,
Ndonwi Emmanuel / Loh Wai Min / Al Mahrezy, Zakiya Abdullah / Chu
Pui Man, Amanda / Choi Sze Man / Getachew, Adamu / Mlauzi, Henry /
Ng Haing Hwee / Fauzia Farooq / Chang Lee Lee, Chelsea / Ahmed
Shahbaz / Umer Arslan Ali / Haris Ali / Oodhorah, Antish / Ayeah
Njung, Auguster / Khan, Saad Ahmed / Phethi, Winston / Reid, Fae /
Acheampong, Seth / Zahid Iqbal Awan, Malik / Hall, Jessica Ann /
Hove, Ropafadzo / Leadley, Stuart John / Kerzan, Damjana / Stewart,
Damian Nicholas / Libs, Sterling Geoff / Awcock, Susan Elizabeth / Loh
Hoong Zhen / Zhang Xiaojing / Malembeka, Rhoda Banda / Siow Chooi
Har / Tumwebaze, Pamela Mpirirwe / Dunn, Milaney Anthonette /
Muhammad Khalil Hashmat / Rudd, Elizabeth Joanne / Nisha William /
Minhas, Omar / Nabeel Shamshad Qureshi / Wang, Dan / Nsereko,
Anthony Samuel / Mangalawa, Isabel / Cheng Yik Mee / Mehmood,
Muhammad Usman / Chan Set Fong / Lubna Binte Abdul Ghani / Yin
Hong Zhi / Wang Fang / J N Swaleh, Abdallah / Xu Qian / Ng Kwai Fa,
Shirley / Wang Hongjuan / Chew Yin Pei / Naziris, Marios /
Abdulhussein Hussein Z / Kiran Arshad / Kerai, Navin Karsan / Biwi,
Godo Ramadhani / Wong Tuck Yuen / Chua Han Nee / Prajapati, Dil
Krishna / Wraighte, Michelle Fanyi / Chong Git Sin / Wang Qiong / Obi,
Linda / Hira Saleem / Wang Yu / Lee Poh Suan / Cheung Wai Ying,
Yvonne / Yin Myat Aye / Shafi, Nasir / Yaw Bee Lay / Fu Meng / Suen
Choi Fung / Whyte, Fay / Chilonga, Sylvia Beenzu / Fruwei Andy,
Acham / Mensah Yeboah, Christopher / Nabuduwa, Grace / Talha
Jamshaid Iftikhar / Qi, Wang / Usha Devi D/O Sugumaran / Kashiri,
More / Heng Aik Eng, Jackquelynne / Cheung Yin Chun, Yin Chun /
Prasaj A/L K @ Krishnan / Byamukama, Friday / Quarshie, Moses
Kweku Allu / Nalubega, Cissy / Dozhdzhanyk, Taras / Rahman,
Mohammad Mijanur / Lu, Shuai / Humera Arshad / Khan, Sarfraz /
Tian Shuo, Haze / Gao, Han / Agbedeyi, Oladele Emmanuel / Amir
Raza / Uddin, A K M Jalal / Chandran A/L Periasamy / Yeboah, Frank /
Thwin Sandi Myint / He, Yongan / Matthews, Annieka B / Williams,
Gareth / Boakye, Edward Kingsley / Allen, Jacqueline Angeline /
Duggan, Tracy Nicola / Wasagama, Buyinza Charles / Hong Wan Ping /
Chileshe, Abigail / Muhammad Irfan Saleem / Madigu, Allan Ogada /
Farnsworth, David / Mohandas Anitha Jeevan / Kim, Jungkeun /
Jawwad Ansar / Agha Jaffer Abbas / Ozua, Sylvester Ehiamen / Ali
Mehmood / Auma, Lillian Roseline / Hassan, Olalekan Quddus / Qian
Lin / Ahmad Ashar Hameed / Harrison, Oladeji Sewanu / Pefok,
Dorothy Nahnyonga / Hau Wee Sin / Muhammad Idris Qayyum /
Fawibe, Margaret Adebimpe / Yung Ka Man, Carmen / Yao, Lan /
Hunlede, Dedevi L I K / Mohamhad Imran Khan / Dennis, Gail Mellissa
/ Umair Islam Qureshi / Cong Beibei / Cheng Pui San / Charlton, Sarah
Jane / Pande, Shruti / Mwangi, Evelyne / Fan Li Sze / Chiam Xiu Jun /
Miiro Lwanga, Peter Samuel / Chin Tsung Kwong, Samuel / Goh, Pei
Ling / Htun, Ei Ei / Olabode, Sunday Solomon / Imran Ibrahim / Huang
/ Thompson, Innocent Imoh / Wambugu, Caroline Muthoni /
Senfuma-Mukiibi, Mark Kevin / Namayanja, Harriet / Woo Yee Ping /
Chowdhury, Mainul Islam / Khalil Ahmad / Chin Yoon Fong / Tembo,
Mcfoster / Hnung Htet Nyo / Veloopillai, Pushpam / Ullah, Assad / Tan
Kian Heng, Philip / Fan Chia Yeng / Kiama, Elizabeth Wangari / Awais
Arshad / Tan Siang Fei, Josephine / Badmus, Olaide Fausat / Sadaf
Feroz Khan / Lim Oi Kham / Lin Xiao Mu / Goh Lee Qiu / Saccoh,
Ishmail Abubakarr / Janneh, Mohamed Basir / St Louis, Louise / Malla,
Pritesh / Golubenko, Vadym / Abaitey, Jonathan Tetteh / Hosany,
Mohamad Saleem / Lama, Sanju / Lee Chin Keong / Kamran Ahmed
Awan / Rattigan, Denise Ann-Marie / Tobias, Tracy / Vinodev
Amirthasingam / Tripathee, Surya Prasad / Hu Yan / Tamanna, Tasnova
/ Wang Yuan / Mohammed Akhter Hussain / Viko, Vicky Marchelline /
Zhuang Xueping / Hew Wai Kheng / Birabwa, Sanyu Violet / Thapa,
Samir Jung / Zambakides, Stephanos / Kang Li / Jin Yanzhou / Li
Shulin, Forest / Wang Wen Jing / Chen Yi Feng / Loo Lai Peng / Tee
Whye Hong / Ko Siew Ding / Leong Wei Lian / Babar-Hanif / Ngandu,
Eunie / Wei Ying Ying / Bong Siew Sia / Cheong Chooi Har / Saad
Siddiqui / Wang Luan / Wasukira, Geofrey / Kibinge, Janet Njanja / Lee
Yi Chian / Tian Hua / Hossain, Md Shahadat / Lei Na / Zhou Gadi /
Maina, Caroline Machaki / Rattos, Lynette / Dimova, Antoaneta / Liang
Qimin / Pradhan, Amod Prasad / Razib, Md Nazmul Alam / Omar
Hayat Durrani / Onyemem-Benedict, Ibok, Iquo / Darkwa, Isaac
Ahenkorah / Hassan, Jawad / Wagle, Bibhuti / Moyo, Shaun John /
Mbui, George Mbaabu / Syed Hassan Raza / Zarena Begum D/O Anwar
/ Bolade, Henry Oluwaseun / Raza, Syed Muslim / Tian Siew Lang /
Zuhaib Saif / Chen Zhi Zheng / Oyedepo, Rebecca Oluwatosin /
Shirumyna Hussain / Wadhwani, Parkash Lal / Wali Muhammad
Chandio / Ssemwanga, Lubega Richard / Al Aghbari, Sheikhan H Z /
Hampson, Christine J / Oppong, Matthew Affram / Timon Walter Munir
/ Amoako, Dora / Smirnov, Serguei / Firoz Muhammad Noman / Patel,
Ankit / Kudo, Matthew Brains / Quansah, Stephen / Sanaa Naushad /
Charles, Celia S J T / Rana Muhammad Adil Ayub / Ahammad Hasan /
Shah, Syed Asad Ali / Chan Meng Fei / Stylianou, Yianna / Sharma,
Kumar Ketan / Yip Yuen Sze / Wang Wen Zhen / Chaudhry Sajid
Mehmood / Samaroo, Salina / Arman Javed / Qian Jun Min / Yap Yee
Jia, Celine / Muhammad Yasir Irshad / Modi, Rahi / Adnan Irshad / Yu
Xing Jie / Szalai, Ferenc Bela / Furama, Richard / Myat Myat Moe /
Johnson, Wachuku E L / Janamejaya Weerasinghe, C / Karanja, Patrick
Macharia / Wai, Hnin Yu / Punjani, Arifali / Mugarisanwa, Zoe Chipo /
Saira Naim / Zhou Lin Lin / Rina / Quek Ying Chui / Muhammad Saad
Riaz / Usman Ahmed / Purang, Arjun / Selvaratnam, Sarah Davina /
Michael, Rodothea / Irfan Ahmed / Muhammad Asghar Ali / Adeyefa,
Oyindamola / Tan Siu Hong / Olojede, Ayodele Aremu / Go Hwi Bing /
Ameet Kumar / Sutini / Chen Guifeng
THIRD CLASS HONOURS
Tembo, Peter Atanazio / Mughees Hassan / Watt, Alison / Pang
Wui Lian, Joshua / Fernandes, Adolf Lawrence / Lee Ming Chuan /
Olawuyi, Yinusa Stephen / Wong Yee Ling / He Xuanzi / Tan Hwee
Kiang / Abdul Hamid Rahim Hamzah / Lee Kuok Ling, Bridget / Zhou
Hai Ying / Liu Yanmei, Sherina / Obigbesan, Omotayo Stella / Mehreen
Zehra Naqui, Syeda / Low, Chew Yong / Chew Yong Ling / Vaghani,
Devendra Bhimji / Yong Mee Ling / Arosha Chandima, Mahatma
Arachchige / Siow Chiat Meei / Konga, Chanda / Nakooza, Sarah
/ Wang Yu Ying / Nabeel Javaid / Chibanda, Harrington / Kayama,
Simukuka / Dk S Khadijah P H Moksin / Parry, Eugene Kobina /
Agyemang, Georgina / Ngulube, Rudolph / Chan Pik Ki, Becky /
Muhammad Azhar Aziz / Nasim Haider / Mendy, Peter / Muhammad
Mohsin Ayub / Kafula, Leah / Muyambi, Jackson / Ayeebo, Godwin-
Xavier / Sinyangwe, Chisha / Mulenga, Victor / Sekabira, John /
Johnson, Seana Rosalee / Baya Tifu Grace / Yaqoob Alam / Masengu,
George / Kutinyu, Patience / Chung Yoon Foo / S M Salihuddin, Ezatul
/ Kourouclari, Koula / Satchithanandan, Lingayini / Liang Jing / Hung
Lee / Soh Wu Hun / Loo San San / Quah Soon Yee, Belinda / Oh Hui
Chee / George, Joseph / Osei-Yeboah, Thomas / Teng Shan Shan
/ Liang Jie / Selvanayagam, Suresh Kumar / Sadaf Inayat / Iyasu,
Hanna / Dowlut, Bint Nadia / Maddocks, Caroline Victoria / Hangaika,
Mathew / Afolabi, Abiodun Ademola / Osei Tutu, Vivian Abena / Obu,
Emmanuel Yaw Boafo / Karki, Ram / Fazeel Ahmed Siddiqui / Nuama,
Yaw / Musonda, Solomon / Mcenery, Noreen / Munyoro, Brenda / Ting
Lam Kwai, James / Chaw Su Yin / Okpulor, Chidi Ndulaka P / Lim
Wei Yee, Suzanne / Kugonza, Gloria / Faheem Ahmed Haroon / Umer
Siddique / Saeed, Nabeel / Wifa, Stella Fino / Chitete, Owen / Chung
Mei Ling / Morara, Kamanda Ombaso / Cazley, Juliet / Baba, Shakuru
/ Muhammad Waqar Ali / Nikolova, Anelya / Chew Soon Yee / Mwangi,
Danson / Mohammad Ali Chohan / Mwaura, John Chiira / Ting Sing
Ling / Wang Yi Rong / Wang, Zhi / Fung, Mei Kwan Celia / Lau King
Yu, Mei Sum / Leong, Bryan / Meshcheryakova, Olena
RESOURCES
page 63

RESOURCES
Preparing for the December 2008
exam session?
Changes to the exam style for Paper
F1, Accountant in Business, and
examiner’s guidance for all students
sitting Paper P6 (CYP)
64 Questions?
ACCA Connect opening hours
65 Exams
Exam timetables, December 2008 session exam results,
important information about the L903 London North West
exam centre, and changes to the exam style for Paper F1,
Accountant in Business
68 Noticeboard
Including Oxford Brookes degree deadlines, how to change
your variant/accounting/auditing paper options, and student
accountant delivery
70 November/December 2008 su doku solutions, important
information, and classified advertising
Including technical article policy, news of the examiner’s
approach to Paper P6 (CYP), and details of ACCA exam
certificates. Tuition providers advertising in this section are
subscribers to ACCA’s Tuition Provider Directory and are not
currently approved by ACCA. Visit www.accaglobal.com
students to find out more about ACCA’s Approved Learning
Partners – Student Tuition and ACCA’s official publishers
RESOURCES student accountANT
page 64 NOVEMBER/DECEMber 2008

FEES
Annual subscription – 2008
The annual subscription fee was due and
payable on 1 January 2008. Remember
you can pay your fees at ACCA’s e-business
website: https://www.acca-business.org
Every student on file as at 1 January
each year is required to pay a subscription
for that year in order to remain active on
the register. The initial subscription fee
submitted with your Initial Registration Form
is required to cover the registration process
and to maintain your name on file for the
calendar year in which you register.
Students who fail to pay fees when
due (including exam/exemption fees), will
have their names removed from the ACCA
register. Students wishing to re-register are
required to submit any amounts unpaid at
the time of their removal in addition to the
re‑registration fee. No penalty fee will be
charged. Confirmation of your unpaid fees can
be obtained from your national ACCA office or
ACCA Connect.

The following fees and subscriptions apply:

acca connect
For all enquiries please contact ACCA Connect – our
global customer service centre. However you want to
contact us: by phone, fax, e-mail or post, one of our
expert advisers will be happy to assist you.
Monday to Thursday
Open 21 hours (closed 20.00 to 23.00)
Friday
Open 20 hours (closed 20.00 to midnight)
Saturday
Closed
Sunday
Open 09.00 to 17.00 and 23.00 to midnight
(times based on GMT/BST as appropriate)
ACCA Connect
2 Central Quay 89 Hydepark Street Glasgow
G3 8BW United Kingdom
tel: +44 (0)141 582 2000
fax: +44 (0)141 582 2222
e-mail: students@accaglobal.com
website: www.accaglobal.com
CAT students
Initial subscription £56
Re-registration *£56
Annual subscription £56
Introductory Level exam £36
Intermediate Level exam £36
Advanced Level exam/exemption £41
ACCA Qualification and MSER
students
Initial subscription £64
Re-registration *£64
Annual subscription £64
Knowledge exam/exemption £49
Skills exam/exemption £57
Professional exam £65
*plus unpaid fee(s)
Affiliates
Annual subscription £90
Permanent subscription £175
Don’t forget to pay your fees on time. Dates
by which fees and subscriptions must be paid
and arrangements for payment are included in
your ACCA welcome pack.
RESOURCES HAVE YOU REGISTERED TO RECEIVE YOUR EXAM RESULTS BY E-MAIL?
PAGE 65 HTTPS://WWW.ACCA-BUSINESS.ORG

EXAMS
EXAM TIMETABLE DECEMBER 2008 SESSION
The following dates have been confirmed for the next two exam sessions: EXAM RESULTS
Results for the December 2008 exams will
DECEMBER 2008 JUNE 2009 be sent to students in the week commencing
S M T W T F S S M T W T F S 16 February 2009. You can register to receive
30 1 2 3 4 5 6 31 1 2 3 4 5 6 your next set of exam results by e-mail by
7 8 9 10 11 12 13 7 8 9 10 11 12 13 ensuring that you have an up-to-date e-mail
14 15 16 17 18 19 20 14 15 16 17 18 19 20 address recorded on ACCA’s e-business
21 22 23 24 25 26 27 21 22 23 24 25 26 27 website at https://www.acca-business.org
28 29 30 31 1 2 3 28 29 30 1 2 3 4 and ticking the relevant box. To receive your
December 2008 exam results by e-mail, you
December 2008 Wednesday 3 December must register for this service before midday
Week 1 1 to 5 December 3* Maintaining Financial Records (GMT) on Friday 13 February 2009.
Week 2 8 to 10 December F3 Financial Accounting Once you have registered to receive your
MFA Financial Accounting exam results via e-mail, ACCA will continue
June 2009 F8 Audit and Assurance to send exam results/status reports to you at
Week 1 1 to 5 June subsequent sessions until you complete your
Week 2 8 to 10 June Thursday 4 December exams, or unsubscribe from this service.
4* Accounting for Costs
Exams will take place over an eight-day period F9 Financial Management IMPORTANT INFORMATION –
with one session of exams each day. The exams P4 Advanced Financial Management
will be held concurrently in five different time L903 LONDON NORTH WEST
zones. The base starting times in each of these Friday 5 December EXAMINATION CENTRE,
time zones will be: 5* Managing People and Systems DECEMBER 2008
Zone 1 (Caribbean) – 08.00hrs F2 Management Accounting As part of ACCA’s ongoing review of
Zone 2 (UK) – 10.00hrs MMA Management Accounting examination centres, the L903 – London
Zone 3 (Pakistan and South Asia) – P5 Advanced Performance North West examination centre has been
14.00hrs Management replaced for the December 2008 session
Zone 4 (Asia Pacific) – 15.00hrs by L903 – Earl’s Court. It is hoped that
Zone 5 (Australasia) – 17.00hrs. Monday 8 December the introduction of this centre will benefit
8* Implementing Audit Procedures students opting for the L903 centre, as in
Local starting times will be set falling out from F5 Performance Management recent sessions such students have been
these base start times for every centre. Details P1 Professional Accountant allocated to several unnamed venues.
of local start times can be found against
each centre on the Examination Centre List Tuesday 9 December
accompanying your Examination Entry Form. 9* Preparing Taxation
CHANGES TO THE EXAM STYLE
Papers F1 to F3 are two-hour exams, Computations FOR PAPER F1, ACCOUNTANT
and Papers F4 to F9 and P1 to P7 are F7 Financial Reporting IN BUSINESS
three-hour exams. P2 Corporate Reporting ACCA is changing the style of exam questions
for Paper F1 to ensure that the exam
Monday 1 December Wednesday 10 December complements the style of the other papers in
1* Recording Financial Transactions 10* Managing Finances the Fundamentals level Knowledge module
6* Drafting Financial Statements F1 Accountant in Business and to ensure that the syllabus can be fully
F6 Taxation P3 Business Analysis examined. The Paper F1 exam will include a
P6 Advanced Taxation greater proportion of scenario-based questions
*CAT Scheme exams to better test comprehension and some
Tuesday 2 December application. This will apply to computer-based
2* Information for Management exams with immediate effect and paper-based
Control exams from December 2008. The Pilot
7* Planning, Control and Paper has also been amended to reflect
Performance Management these changes. Any student preparing to take
F4 Corporate and Business Law Paper F1 should familiarise themselves with
P7 Advanced Audit and Assurance the new exam style.
RESOURCES STUDENT ACCOUNTANT
PAGE 66 NOVEMBER/DECEMBER 2008
1 You are required to comply in all respects with any instructions issued by
the registrar, exam supervisor, and invigilators before and during an exam.
2 You may not attempt to deceive the registrar or the exam supervisor by
giving false or misleading information.
3 You are not allowed to take to your exam desk, possess, use, or intend
to use while at that desk, any books, notes or other materials except
those authorised by the registrar. If you are found to have taken to your
desk, or possessed while at that desk, unauthorised materials which
are relevant to the syllabus being examined, it will be assumed that
you intended to use them to gain an unfair advantage in the exam. In
any subsequent disciplinary proceedings, it shall be for you to prove
that you did not intend to use the materials to gain an unfair advantage
in the exam.
4 You may not assist, attempt to assist, obtain, or attempt to obtain
assistance by improper means from any other person during your
exams.
5 You are required to adhere at all times to the Instructions
to Candidates, which you receive with your Examination
Attendance Docket.
6 You are required to comply with the exam supervisor’s ruling.
Supervisors are obliged to report any cases of irregularity or improper
conduct to the registrar. The supervisor is empowered to discontinue
your exam if you are suspected of misconduct and to exclude you
from the exam hall.
7 You may not engage in any other unprofessional conduct designed to
assist you in your exam attempt.
8 You are not permitted to remove either your script booklet or your
question paper from the exam hall. All exam scripts remain the
property of ACCA.
9 Once the exam has started, you are not allowed to leave the exam hall
permanently until the end of the session and then only when instructed
by the supervisor.
These regulations are reproduced on your
Examination Attendance Docket – you should
take time to familiarise yourself with them. In
order to be eligible to sit your exams you must
sign your docket confirming your agreement to
comply with these regulations.
IMPORTANT EXAMINATION RULES
Mobile phones and pagers should be switched off at all times in the
exam hall and are not permitted to be taken to your desk under any
circumstances. Mobile phones are not permitted on your desk even if
they remain switched off.
Calculators taken into the exam must comply with the regulations stated
on your Examination Attendance Docket, ie they should be noiseless,
pocket-sized, and they must not have a print-out facility or graphic word
display facility in any language.
For security reasons, the exams are held concurrently in five different
time zones. Students are therefore not permitted to leave the hall
permanently until the end of the examination session. Any student in
breach of this regulation will be reported.
IN THE EXAM HALL
Every effort is made to ensure that you sit your exams in the best
conditions. However, if you have a complaint regarding the centre
operation, you should make this known to the examination supervisor in
the first instance. The supervisor will do everything within their power to
resolve the matter to your satisfaction there and then. If the complaint is
of a fundamental nature ACCA will take whatever further remedial action it
considers appropriate in the circumstances.
CLaSSIFIEd
RESOURCESadVERtISInG StUdEnt aCCOUntant
page 67 JUNe/JULY
NOVeMBeR/DeCeMBeR
2008 2008

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HZZlZWh^iZ[dg[jaaYZiV^ah

IPT (International Professional Training) Ltd

New ACCA provider in Moscow

IPT (International
IPT (International Professional Professional
Training) Ltd now offers ACCA Qualification Training)
programmes for finance Ltd
specialists in Moscow.
Already Russia’s leading provider of UK professional qualifications, including Cambridge ESOL.
Full-time office staff of 28 to handle student welfare and client support.
Central Moscow location with fully equipped teaching centre, training room and four additional classrooms.
New ACCA provider in Moscow
Tutors have taught approximately 2,500 days of ACCA-based material in Russia, and the CIS either as part of
the ACCA exam system or as internal training courses for auditing firms in Moscow.
Team
IPT (International of five to six
Professional ACCA tutors,
Training) Ltd now mainly
offersBritish
ACCAnationals, some
Qualification local tutorsfor
programmes where appropriate.
finance specialists in Moscow.
Russia or
Already Russia’s leading provider ofUK-based, ACA/ACCA
UK professional qualified.including Cambridge ESOL.
qualifications,
Full course,
Full-time officeintroduction
staff of 28 toonly,
handleandstudent
revisionwelfare
only courses available.
and client support.
Central Moscow location with fully Cost effectiveteaching
equipped and practical payment
centre, trainingplans.
room and four additional classrooms.
Tutors have taught approximately 2,500 days of ACCA-based material in Russia, and the CIS either as part of
the ACCA exam system Forormore details
as internal please
training contact
courses us firms in Moscow.
for auditing
Team of five to six ACCA tutors, mainly British nationals,
IPT (International Professional Training) Ltd Petrovka Ulitsa 15/13, some local tutors
Officewhere appropriate.
207, Moscow, Russia
Russia or UK-based, ACA/ACCA qualified.
Full course,
Tel: introduction
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E-mail: info@iptrussia.ru www.iptrussia.ru
RESOURCES STUDENT ACCOUNTANT
PAGE 68 NOVEMBER/DECEMBER 2008

NOTICEBOARD
New students
Applications are normally processed within
four to six weeks of receipt in the Glasgow
office. Forms handed in to national ACCA
offices or Joint Scheme offices will be
forwarded to Glasgow. Students who apply
to register online can track the progress of
their application on the e-business website
at https://www.acca-business.org
New students should allow adequate
time for processing and receiving official
confirmation of their registration. Carefully
read the information that you receive with
your post-registration pack to ensure all
details have been recorded correctly.
You should expect to receive: a student
registration card, a welcome to ACCA letter,
a profile letter detailing a summary of your
data held by ACCA, and an exemption
notification if applicable.
student accountant magazine delivery
student accountant magazine should reach
you by the end of the month in which it
is published.
If you haven’t received your copy by the
end of the month in which it is published,
please e-mail students@accaglobal.com to
request a duplicate copy of the magazine.
Don’t forget to update your myACCA
account with any new address and contact
details so that we can ensure we have your
correct details on file.
CAT variant/accounting and auditing streams
The variant and stream allocated to you at the time of your registration are indicated on your profile
letter. You can also view this at myACCA. All exam options are calculated based on the variant/
stream information held on file for you at the date of issue of the entry form. Should you wish to
change a variant paper, please confirm this in writing. If you would like to change your stream,
you can do so at the time of exam entry or online via the e-business facility. Amendments can be
accepted up until the standard exam entry closing date for the next session, ie 15 April for the June
exams and 15 October for the December exams.
Transfer to the ACCA Qualification ACCA Qualification variant/accounting
Students completing the exam element of the and auditing papers
Certified Accounting Technician Scheme are The tax and law variants allocated to you at the
eligible to transfer to the ACCA Qualification time of registration are indicated on your profile
with exemption from Papers F1, F2 and F3. letter. You can view your full profile at myACCA.
This transfer is automatic for all students You can select the accounting and auditing
who stated on their initial Technician standards that you wish to be examined in at
Registration Form that they wished this the time you enter for your exams. Should you
to take place. Such students are eligible wish to change the tax or law variant for the
to take the next session of the ACCA forthcoming session, you can do so as part of
Qualification exams. online exam entry or by including a request
If you indicated on your application that when submitting your Exam Entry Form.
you did not wish this transfer to take place, a Amendments can be accepted up until the
separate application will be required should exam entry closing date for the next session,
you subsequently decide to attempt the ACCA ie 15 April for the June exams and 15 October
Qualification exams. for the December exams.
Change of address
Visit www.accaglobal.com to update your address details through ACCA’s website. You must first
register on the website by clicking on myACCA and entering your student registration number and
passcode (sent to you with your annual subscription notification or welcome pack). If your change
of address is notified to us after the 10th of the month, your details will not be updated in time to
allow the next issue of student accountant to be delivered to your new address.

OXFORD BROOKES First session (1) Final session Final date for
Students completing certain papers of the ACCA Qualification are eligible for completing submission
to apply for a BSc (honours) in applied accounting from Oxford Brookes the qualifying of RAP
University. You can check your eligibility status at www.accaglobal.com/students exams (2)
June 1999 December 2008 April 2009
How to apply to opt in December 1999 June 2009 October 2009
If you initially registered with ACCA from 1 January 2001 and elected not to June 2000 December 2009 April 2010
join the scheme at the time of registration, you can still apply to opt in at any December 2000 June 2010 October 2010
time prior to attempting ACCA Qualification Papers F7, F8, or F9. Please write June 2001 December 2010 April 2011
to: ACCA Admissions, 2 Central Quay, 89 Hydepark Street, Glasgow G3 8BW, December 2001 June 2011 October 2011
United Kingdom and request to be opted in. To opt in online please visit June 2002 December 2011 April 2012
ACCA’s e-business website at https://www.acca-business.org December 2002 June 2012 October 2012
June 2003 December 2012 April 2013
Submission of Research and Analysis Project (RAP)
If you are opted in to the Oxford Brookes partnership and intend to submit Notes
your RAP, you must do so within 10 years of your first date of registration with 1 First applicable exam session as confirmed at the time of your initial
ACCA. The dates below outline the forthcoming deadlines for completing the registration with ACCA.
qualifying exams and the last opportunity you have for submitting your RAP. 2 Completion of Fundamentals level exams.
RESOURCES STUDENT ACCOUNTANT
PAGE 70 NOVEMBER/DECEMBER 2008

NOTICEBOARD SU DOKU Difficulty rating

6 8 7 2 4 9 3 1 5
Technical article policy
5 2 3 7 1 8 6 4 9
Technical articles are written either by the examiners, by an expert commissioned to write on an 1 9 4 6 5 3 7 2 8
area identified by the examiner, or by independent parties that have identified a need which is
agreed by the relevant examiner. All contributors are equally important – no article is printed if it 4 3 1 9 7 6 5 8 2
does not assist students in some way. The purpose of technical articles published by ACCA is to:
elaborate on a technical area in which students perform badly in the exam 9 7 2 3 8 5 4 6 1
give extra information about those areas newer to the syllabus, which may have less coverage
in study texts than the more traditional areas
8 5 6 4 2 1 9 7 3
give an examiner’s specific focus on a given topic. 7 6 8 5 9 2 1 3 4
The articles are not intended to be relevant for only one exam sitting, with the possible exception of 2 4 9 1 3 7 8 5 6
tax. Tax articles tend to be updated annually to comply with legal changes. Otherwise, the aim is to
provide a suite of articles relating to a specific exam paper; students should then look at all articles 3 1 5 8 6 4 2 9 7
on the website when preparing for that exam.
However, technical articles are also not simply written to target one exam paper. Using the Difficulty rating
‘new’ ACCA Qualification papers as an example, the examiners have written several articles, some
on topics which have been examined already, others on topics which have not and may not be
examined in the near future.
2 5 7 4 1 8 6 3 9
Similarly, although some of the technical articles were written a number of years ago, on 1 4 9 6 5 3 7 2 8
changing to the new syllabus, any articles deemed equally relevant to a new paper were carried
forward. These have as much value as recent articles. 8 6 3 7 2 9 4 1 5
3 2 6 9 7 1 5 8 4
Examiner’s approach to Paper P6 (Cyprus) 9 7 4 8 3 5 2 6 1
Guidance for students sitting Paper P6 (CYP) has been published on the ACCA website in the exam
paper resources section. Loizos Timinis, examiner for Paper P6 (CYP), outlines the emphasis of the 5 8 1 2 6 4 9 7 3
paper, what is expected of students, as well as providing background on the syllabus content and
the structure of the exam paper. 7 3 8 5 9 2 1 4 6
6 1 5 3 4 7 8 9 2
EXAM CERTIFICATES CAT QUALIFICATION
4 9 2 1 8 6 3 5 7
ACCA issues the following exam certificates twice Introductory Level Certificate
a year after exam results are released: Students are awarded an Introductory Level Difficulty rating
Certificate when they have successfully completed
ACCA QUALIFICATION all of the Introductory level exams (Papers 1 5 2 6 7 4 9 1 3 8
Certificate of Achievement and 2) of the CAT qualification.
Students are awarded a Certificate of 4 9 1 5 8 3 7 6 2
Achievement if they achieve a pass mark of 85% Intermediate Level Certificate
or above for individual passes in Papers F1, F2 Students are awarded an Intermediate Level 8 3 7 6 1 2 9 5 4
and F3. Certificate when they have successfully completed
all of the Intermediate level exams (Papers 3 and 2 4 5 9 7 8 6 1 3
Fundamentals Level Certificate 4) of the CAT qualification. 3 6 8 4 5 1 2 9 7
Students are awarded a Fundamentals level
Certificate when they have successfully completed Advanced Level Certificate 1 7 9 3 2 6 8 4 5
all of the exams in the Fundamentals level of the An Advanced Level Certificate is awarded on
ACCA Qualification (Papers F1–F9). successful completion of all of the Advanced level 9 1 2 8 3 4 5 7 6
exams (Papers 5–7 and two of the three options
Professional Level Certificate from Paper 8–10) of the CAT qualification. 7 8 3 1 6 5 4 2 9
Students are awarded a Professional level
Certificate when they have successfully completed Passed Finalist Certificate
6 5 4 2 9 7 3 8 1
all of the exams in the Professional level of the Students are awarded a Passed Finalist Certificate
ACCA Qualification (P1–P3 and any two of the when they have successfully completed all of the
Options papers from P4, P5, P6 and P7). papers of the CAT qualification.
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• The handbook – outlining distance learning with us and helping you understand the ACCA course

Study phase Revision phase

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• A key study guide – guiding you through
the study text and helping you revise
• An online question bank for additional
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• An exam kit – essential for exam
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JULY - SEPT - JAN - APR
MBA INTERNATIONAL
from £5400 - 12, 18, 24 months

BA (HONS)
£1500 per semester 24, 36 months
MSc INTERNATIONAL ACCOUNTING *NEW COURSE*
£1500 - 6, 9, 12 months
ACCESS COURSES
from £750 - 3, 6 months

LCA is accredited by ACCA to run internally asse

INTERNALLY ASSESSED CO
 Quality Flexibility Affordability

Our
exclusive
lecturing
team Ravi Gill
FCCA
Doug Beardon
MA, LL.M, FCA, FCCA, AIIT
David Benjamin
FCCA

Nigel Grant Geoff Hughes Feroz Kassam-Kanji Peter Keeling

BSc, FCCA, PGCE BA, FCA, FCCA BSc, FCCA BSc, FCA

Fred Keer Steve Lumby Michael Mainwaring Tony Mock

BA, MSc BA, MSc BA, MBA, MSc BSc, FCA

Dianne Ramdeen Dave Sexton Naraine Singh

ACCA MSc, CPFA, FHEA LLB, Cert Ed, Barrister

200 Great Dover Street, London SE1 4YB

T: +44 (0)20 7407 1119 F: +44 (0)20 7407 1004
E: info@londoncollege.org www.londoncollege.org

sessed courses for all Knowledge module papers

COURSES F1, F2, F3 Papers

 www.lsbf.org.uk
MBA in Financial Services
Available in the classroom and now fully online
+ Specially designed for ACCA students and members
+ Study only 3 or 4 modules
+ Validated and awarded by UEL
+ Eligible for the new points based Post Study work system (2 year work permit)
+ Full time and flexible weekend options available for on campus study
The online study option has exceptional features:

+ Revolutionary online learning platform

+ Entire MBA video broadcasted
+ 24 hour support
+ Over 700 videos from global business leaders
+ Harvard Business School Case Studies
+ Global live classrooms and global team projects

London Birmingham Online

London
School of Business
& Finance
London - Holborn Birmingham London
W e b : w w w. l s b f . o r g . u k Web: www.fbt-global.com Web: www.studyinteractive.org
E-mail: student@lsbf.org.uk E-mail: info@fbt-global.com E-mail: info@studyinteractive.org
Tel: +44 (0) 207 823 2303 Tel: +44 (0) 121 616 3370 Tel: +44 (0) 207 099 0077
All part of the LSBF group of companies