PQmagazine

November 2014
www.pqmagazine.co.uk / www.pqjobs.co.uk
Here they are the last ever tips for Novembers
CIMA exams. Our four-page pull-out is packed
full of top advice but dont forget to revise!
Every accountancy student
needs to have their own
personal study plan that
maps out the time it will
take them to qualify, say
leading tutors.
At a recent PQ magazine
roundtable, our panel of experts
stressed the move from set dates to
flexible exam times will place a new
emphasis on accountancy students
to manage their journey through to
qualification.
Students need to map out their
whole study plan, from the very first
exam all the way to the end.
Currently, many students just look
to complete a module or stage, say
our experts. But now they must
look at the whole picture.
And all this must be written
down. You need to create a record
that you can go back to, to ensure
you are keeping on track.
Our experts are also concerned
that many students never feel
totally ready for the exams. So if the
onus is on them to book an exam
sitting, the worry is they may
procrastinate and lengthen the time
it takes to move to the next level.
Students will have to learn to put
themselves under pressure and the
only way of doing that is by booking
the exam, was the consensus in
our discussion group.
Recent figures from the Financial
Reporting Council revealed that one
in four (28%) of PQs studying with
the six main UK accountancy
bodies are still waiting to qualify
half a decade after starting their
studies.
As we revealed in Septembers
issue, that is a whopping 140,000
students out of a total of just over
500,000 who are still not qualified
after five years. You have to ask
yourself whether it will take you that
long. You will need to be realistic
about your own abilities here.
CIMA, which introduces exams
on demand from 1 January 2015,
has the largest percentage of
students at the five-year-plus
milestone. Some 36,576 are still
registered as studying five years
after joining up to CIMA, which is
30% of the total student
population.
The ACCA has 101,185 students
still signed up as a PQ five years
after first signing up (28%).
Read about what our panel of
experts have to say about the move
to exams on demand on page 26.
PQ magazine is the AIAs Accountancy Media of the Year winner for 2014.
At a ceremony in London earlier this month PQ magazine beat off the
challenges from Accountancy Age, The Accountant and AccountingWeb to
win the top prize. Richard Simms of FA Simms, which sponsored the award,
presented editor Graham Hambly with the prize.
Other winners on the night were Ian Ball, chair of CIPFA International and
former CEO of IFAC. LSBF's Hafeez Qazi was also awarded the prize for AIA
Accountant of the Year.
PQ magazine had a great night and, dont forget, you too could be a
winner as we are now looking for nominations for the PQ magazine Awards.
We have 15 PQ trophies up for grabs.
Turn to page 14 to find out how you too can get on the front cover of PQ!
TAKE CONTROL
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Top tutors: there to help but
you need to help yourself too!
pq nov 14 p1_pq nov 11 p01,10 07/10/2014 11:16 Page 1
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002_PQ 1114_PQ 1209 000 03/10/2014 10:21 Page 7
comment PQ
News
08CIMA resit results P2 pass
rates plummet to just 27%
10ACCA optional papers ACCA
takes steps to tackle problems
12Boost for N Ireland Three of
the Big 4 unveil expansion plans
that will boost the local economy
Features, etc
06Mind your Ps&Qs I need help
passing ACCA; E3 woes; and our
Twitter and LinkedIn updates
14PQ Awards 2015 Make your
CV shine get yourself
(or your hero) nominated
for a PQ award
16ACCA F4 The new
challenges Corporate
and Business Law
students face
17P is for problem The ACCAs
Alan Hatfield explains how the
association is tackling the issue
of poor P paper results
18ICAEW spotlight Valuation
techniques the examiners
view; and the importance of a
proper revision timetable
21Four pages of CIMA tips A
tips bonanza for last time before
the exams go on demand
26Roundtable discussion Our
panel of experts discuss, among
other things, the move to OTs
28ACCA case studies Two real
life examples of how the AAT
qualification changes lives
30International standards
Equity accounting is here to stay
32CIMA pre-seen Expert advice
on how to deal with the case
study element of the November
CIMA Strategic exams
34CIPFA spotlight Qualification
changes reflect workplace needs
35Performance measurement
Developing a sense of balance
36Careers Life at PwC Cyprus;
and how to get to partner level
42Fun time Accountancy songs
on the web; spot the bill;
and more great giveways
The columnists
Robert Bruce Corporate
reporting, and why we should
all be sceptics 8
Prem Sikka OECD proposals
represent a missed opportunity 10
Carl Lygo College visa fraud does
our profession no credit 12
Subscribe to PQ magazine
Its FREE see page 41 or go to
www.pqmagazine.co.uk
ABC July 2013June 2014
32,361
Publishers statement: We have a
digital issue of the magazine which
is sent to 10,012 requested readers
Auto enrolment is sexy
I was very kindly asked to sit on the panel for the AIAs
Founders Lecture to discuss that sexy subject pension auto
enrolment! No it is sexy, and when you see the fines that kick-in if you
miss your staging date then youll start to be as interested as I am. That
fine is 400 plus 50 per staff member per day. So if you are helping a
micro business with three people then the fine equates to 5,000 if you
miss the date by a month! It seems that while the large firms have
successfully negotiated auto enrolment the big challenge is still to come.
There really does seem a need for DWP to get its message heard in
SMEs. Did you know that companies need to understand they cant opt
out until they have opted in? Employees will also have to do this via their
product provider not via their employer.
Pension enrolment affects you as an employee and accountant, and it
is something you should know about. I think sometimes PQs should be
able to show people they have practical solutions to real problems, rather
than the ability to explain the application of IFRS 9 (we are talking
financial instruments here). The discussion was followed by the AIA
awards ceremony and yee-hah! PQ magazine won the Accountancy
Media of the Year award. Can I thank everyone who voted for us. I am
not known in the office for being tech savvy but I was able to help the
AIA President turn off his phone during the debate. I know who was
ringing him and you should be ashamed of yourself!
We have a great issue for you this month. We finally got our hands on
the CIMA resit results, and discovered a 27% pass rate for P2. CIMAs
Noel Tagoe has been on tour, but he phoned us the minute he got back
to the UK to explain where he thinks it all went wrong. He really does
read every exam paper and champions the idea that an average student
should be able to pass the exams. They arent just for the very bright,
and he doesnt want clever examiners showing off. He wont like it but we
have four pages of tips for the last ever set of CIMA November exams.
Graham Hambly, PQ magazine editor (graham@pqaccountant.com)
CONTENTS
November 2014
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PQ Magazine Fourth floor, Central House, 142 Central Street, London EC1V 8AR | Phone: 020 7216 6444 | Email: graham@pqaccountant.com
Website: www.pqmagazine.co.uk | Editor/publisher: Graham Hambly graham@pqaccountant.com | Advertising manager: Polly Thrasivoulou polly@pqaccountant.com
Associate editor: Adam Riches | Art editor: Tim Parker | Subscriptions: dom@pqaccountant.com | Contributors: Robert Bruce, Prem Sikka, Carl Lygo,
Tony Kelly, Phil Gammon, Jo Daley | Origination and print services by Classified Central Media
If you have any problems with delivery, or if you want to change your delivery address, please email dom@pqaccountant.com
Published by PQ Publishing PQ Publishing 2014
I need some help
I am an ACCA finalist who has
taken a break from my studies
and am now keen to get them
completed, but I am unsure of the
best way to go about this. I only
have the optional papers left but
have failed P5 three times my
marks have been in the low 40%.
I have worked overseas and
was recently offered a fairly senior
financial controller role, but I
declined as my top priority is to
pass the optional papers.
I am contemplating
studying full time for P5
and Advanced Tax. I am
even thinking about
switching to CIMA with
exemptions I would have just five
exams to sit and I can take them
on demand from January.
The main advice I get from
tutors is keep trying, but I am
feeling very frustrated. I suppose
the big questions I have are: how
much will I increase my chances
by studying full time? And should
I switch to CIMA?
Name and address supplied
The editor says: Please take a
look at the increased support the
ACCA is putting into place for P5
(see page 17). There are going to
be a lot more resources available
to options sitters this December.
The writer of the star letter each month wins a fantastic I PQ mug!
Hot & Tweet
The FTSE 100
companies are
upping their game
on Twitter, says social media
agency Battenhall. They sent
out a total of 1.4m tweets in
the past year, nearly three
times the number they sent in
the previous year. Remember,
the US SEC now allows firms to
use social media to announce
important information.
So, who is doing well?
Burberry has added a million
followers in just 12 months.
Other fast-growers in the
corporate world are ITV and
Rolls-Royce.
We were, as usual, the only
magazine at the ACCA AGM
and tweeting about it. The AGM
also doubles up with our yearly
get together with top columnist
Professor Prem Sikka. It was
Prem who brought it to
everyones attention that one
newly appointed ACCA council
member, Nur Jazlan, could be
in trouble. Apparently his
election was announced before
being voted in at the AGM!
Prem had the
evidence to
prove it too
We also
rolled along to
the FRCs
annual open
meeting this
month. CEO Stephen Haddrill
stressed the importance of the
work the council has been
doing on the UK Corporate
Governance Code. The three
things he wanted the audience
to concentrate on in the new
report were the onus on the
long-term health of the
company, provisions on
clawback, and the need for a
company to explain a
significant, if not majority, vote
against the remuneration
packages of directors. The big
story here was the move to
Viability Statements in a
companys report to investors.
Follow us @PQmagazine
email graham@pqaccountant.com
I cant get past E3
Im really struggling with E3. The
problem is that I am taking too long
on Q1. I know that there is a lot of
great advice out there on how to
approach the exam, but my mind
just goes to mush in the exam hall
stress I suppose! One problem is
that the scenarios seem too long,
they took ages to analyse.
Interpreting what the examiner
wants becomes part of the test
itself, which cant be right.
The latest resit also had a 22
marker on ratios, which was tough,
so I am not confident of the result.
If I fail this then I have just one
more chance in November!
Name and address supplied
The editor says: This was one of
several complaints we received
about E3. The resit pass rate was
just 40% in September. That was
good when compared with the P2
resit result that was a scary 27%.
The Tesco
accounting
debacle was a
recent discussion
topic on CIMAs
LinkedIn
pages. One contributor
questioned whether three
decades of uninterrupted
service provided by PwC
as auditors had made them
complacent about some of
the fundamental accounting
principles. One CIMA qualified also
wondered if they still taught income
recognition and cost deferment in
the ACA exams. It was suggested
that the head of the
ICAEW may need to
check that the
syllabus is still fit for
purpose and special
attention had to be
paid to what PwC trainees are being
taught. Clearly, the inference is that
this lack of knowledge doesnt
apply to CIMA PQs!
While we are talking about
LinkedIn, when was the last time
you updated your page? It is really
important to keep your LinkedIn
profile up-to-date it is your online
CV! We know our editor has already
added PQs award for Accountancy
Media of the Year presented at the
recent AIA Awards!
PQ nov 14 p6 CCM_pq aprl08 p04 09/10/2014 12:15 Page 1
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007_PQ 1114_PQ 1209 000 03/10/2014 14:17 Page 7
8
PQ Magazine November 2014
PQ news
1,000 to 1 shot
Getting a change to your
ACCA exam result through an
administrative review is currently a
1000 to 1 shot. In all,
there were 966
administrative reviews
following the June
exam. A total of four
errors were confirmed.
While three of these
remained a fail just one
resulted in a pass. The ACCA has
also confirmed that none of the 46
appeal cases were successful.
Chocolate heaven
CIMAs pre-seen for the
November Strategic exams has
now hit the streets. The big advice
from BPPs head of
CIMA, Steve
Malpass, is dont
spend too long
trying to find a real-
life company that
mirrors the case.
This time around
Y plc looks a bit like Thorntons!
See page 32 for his full advice on
how to use the pre-seen.
The DNA of a partner
Do you have a can-do
attitude? If you want to climb the
career ladder to partner then this
is seen as the top characteristic by
those who have made it. Top
recruitment firm Hays has just
released the findings of its report
DNA of a Partner. Interestingly, its
research discovered that you
could make it to the top quicker if
you trained with a regional
independent rather than with a
Big 4 firm. Karen Young of Hays
discusses the findings on page 35.
In brief
Big changes ahead
for CIPFA students
CIPFA has unveiled its new-look
professional qualification, which
becomes fully operational from 2016.
The changes reflect the changing
public services environment and will
increase the focus on the wide range
of commercial skills needed by UK
public finance professionals. The
institute also wants to deliver greater
portability between the public and
private sectors.
AATs will be pleased to hear that
they should have a smoother route to
become a CIPFA PQ.
The E&T department is also using
the new syllabus to introduce e-
assessment and more blended and
online learning options for PQs.
For current PQs exemptions from
new syllabus modules will be granted
on like-for-like basis. So, for example,
if you have passed Financial
Accounting you will be granted a
transitional exemption from Financial
Accounting in the new syllabus.
Among the other key changes is a
move to reduce the case study exam
from a full day to half a day from
June 2016. A qualification time
limited of 10 years will also be
imposed.
CIPFA has promised lots of
specimen exam papers in all the new
papers.
Students commencing CIPFA at
the Certificate level in 2015 will be
able to join the new scheme a little
bit early, the institute has confirmed.
See page 34 for more details on
the proposals.
CIMA RESIT PASS RATES
SEPT 14 MAR 14 SEPT 13 MAR 13 SEPT 12
P1 Performance Operations 51% 53% 52% 58% 42%
E1 Enterprise Operations 63% 69% 68% 62% 88%
F1 Financial Operations 61% 71% 57% 71% 54%
P2 Performance Management 27% 67% 45% 44% 51%
E2 Enterprise Management 58% 63% 65% 55% 59%
F2 Financial Management 52% 52% 26% 51% 53%
P3 Performance Strategy 58% 58% 56% 56% 56%
E3 Enterprise Strategy 40% 50% 56% 48% 40%
F3 Financial Strategy 56% 50% 55% 52% 55%
T4 Part B case study exam 57% 65% 66% 54% 48%
It is often said, and quite rightly, that
auditors need to ensure that a high
level of scepticism is maintained at
all times. But the same level of
scrutiny needs to be maintained by
many other participants in the
business of corporate reporting.
Take the Tesco case. It involved
payments that suppliers pay to ensure
that, for example, their products are
on a more attractive display than their
competitors, and so on. Payments
vary, involve complicated things like
rebates, and require a fair amount of
estimates about the final outcome
when you are taking a view, as here,
at the half-year mark. And they could,
as appears in this case, go askew.
Instantly the call goes up: where
were the auditors? The answer, if you
look at the annual report, is that they
knew that problems could arise and
they flagged it up. Auditors can now
do this far more easily under the new
audit report regime that requires more
explanation and discussion. So the
auditors talked about the difficulties
of revenue recognition in such areas.
They warned of the judgment
required, of the risk of manipulation,
and talked carefully about the
potential problem. And this was way
before the half-year figures in which
the overstatement was revealed.
There should have been no surprise.
This theme recurs down the years.
The manipulation of the figures in the
Enron scandal was all detectable
deep within the notes to the accounts
if any expert had cared to look.
It is not just auditors who need to
be more sceptical. Analysts and, dare
we say it, journalists could do more.
ROBERT
BRUCE
Its up to all
of us to be
sceptical
n Robert Bruce is an
award-winning writer on
accountancy for The Times
P2 resit pass rate slumps
Helen Brand, centre, at the AGM
PQmagazine
EXCLUSIVE
Two papers stand out in the latest
CIMA resit results P2 and E3.
While the P2 pass rate plummeted
to an all-time low, just 27%, the E3
pass rate fell to 40% this time.
CIMAs executive director of
education, Noel Tagoe, said the
pass rate had come as a surprise.
The pass rate for March 2014 was
67%, and he admitted he thought
CIMA had turned the table in this
paper. He admits that he was
wrong. His concern is that students
are not properly prepared for the
resit. They have to put in as much
work as they would for a main
sitting, he stressed.
Turning to the 40% pass rate in
E3, Tagoe promised to look more
deeply into the reasons behind the
drop in the number of PQs passing.
He told PQ magazine that he
personally looks at all of the exam
papers to ensure they fulfill the
brief. He particularly checks the
language to ensure they can be
understood no matter where the
exams are being taken. These are
not, he assured us, exams that only
bright people can pass. The
average student should be able to
write an answer to one of our
exams and pass.
ACCA AGM
PLEDGE TO
IMPROVE
CEO Helen Brand told the 109th
AGM that the ACCA has introduced
a range of measures to improve
quality and speed of its customer
services. Some 83% of emails are
now answered in one day and 90%
of student registrations are
processed in three working days.
She did, however, admit that UK
members and students seem fed
up with too much email
communication. Nearly a third
wanted less. The ACCA has listened
and is now sending more targeted
emails.
One member asked for the
re-instatement of graduation
ceremonies. Brand explained that
these have been switched to
member celebrations, which she
said were working well.
PQ nov 14 p8 CCM_pq sept 12 p08 09/10/2014 10:43 Page 10
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009_PQ 1114_PQ 1209 000 03/10/2014 14:18 Page 7
10
PQ Magazine November 2014
PQ news
The ACCA has begun to scope out
a whole series of initiatives aimed at
helping students through the tricky
optional papers.
ACCA Director Learning, Alan
Hatfield, told PQ magazine that it
will be interviewing students who
passed P4, P5, P6 or P7, but only
at their second attempt! ACCA
believes understanding what they
did differently might give current
students a real insight into what
they need to do to get a pass in
these papers. He has promised that
these interviews will then be made
available to PQ magazine to
disseminate.
A pilot online webinar was also
launched at the end of September.
This gave general advice on how to
study for the P papers. If feedback
is positive and we have no reason
to believe it will be otherwise then
more webinars will be rolled out for
each of the optional papers. We will
be pushing for these to be made
available before the December
sitting revision phase.
The 29% June pass rate for P5
was a real disappointment for the
ACCA. The P5 technical advisor
has now recorded a video giving
advice on how to achieve success
in the paper. A video on P4 is also
being record to support the
December exams.
Finally, ACCA is using a
programme of Facebook Q&A
sessions, which will focus on the
options in the run up to the
Christmas exams. These will last
about an hour and provide students
with instant feedback.
See page 17 for more on this.
ACCA TACKLING THE
OPTIONAL PROBLEM
Gut feeling
Business
leaders are
taking major
strategic
decisions about
the future of their business based
on their gut instinct and
experience in preference to the
use of data and analytics,
according to a new report
published by PwC and written by
the Economist Intelligence Unit.
The report, Guts & Gigabytes,
explores the changing nature of
corporate decision-making and
the use of data by companies
across the globe. What is telling is
the influence of negative past
experiences. British executives
reveal greater scepticism about
the value of data analysis
compared with their counterparts
overseas. Some 61% say that
relying on data analysis has been
detrimental to their business in
the past, compared with 34% in
Western Europe and 46% globally.
Partner profit up at EY
EY UK has had another good year.
Revenues are up 8.6% and the
average distributable profit per
partner has increased by 11.7%
to a healthy 727,000. EY
chairman Steve
Varley explained
that the firm was
investing heavily
outside of London,
including a
650,000 investment in a new
technology hub based in
Manchester.
Get on the property ladder
KPMG has reportedly joined
forces with Clydesdale and
Yorkshire banks to give its
employees the chance to get on
the London property ladder. The
Big 4 firm unveiled the
initiative to staff in mid-
September and is part of a
private banking package.
UK chairman, Simon
Collins, said: Owning a
home is fast becoming a fairytale
for all but societys wealthiest. We
are working hard to raise the issue
with policy makers and clients,
but we also want to make a
tangible difference to our staff
who also face this problem.
The Financial Reporting Council
(FRC) has confirmed that boards
must include a viability statement
in their strategic report to investors.
This, says the FRC, will provide an
improved and broader assessment
of long-term solvency and liquidity.
It is expected that this statement
will have to look forward
significantly longer than 12 months.
Changes here will focus companies
on aligning reward with the
sustained creation of value.
The updated version of the UK
Corporate Governance Code (the
Code) has also been changed in
relation to remuneration. Boards of
listed companies will now need to
ensure executive remuneration is
designed to promote the long-term
success of the company and
demonstrate how this is being
achieved more clearly to
shareholders. The FRCs Stephen
Haddrill said the Code will continue
to operate on the principle of
comply and explain, which has
served investors and the corporate
sector well for over 20 years.
Viability key
to long term
With the EU losing around 1 trillion a
year due to tax avoidance and
evasion, the OECD has recommended
sharpening of transfer pricing rules,
possibly restricting tax relief on
intragroup royalty and interest
payments. The corporate tax system is
the outcome of some 3,000 treaties
and the OECD wants to see reforms so
firms cant manufacture transactions
purely with a view to generating tax
credits twice.
The OECD has also recommended
country-by-country reporting (CBCR).
This would require multinationals to
disclose capital, revenues, profits,
taxes and employees for each country
in which they operate, which can
highlight profit shifting. However, the
OECD limits the availability of CBCR to
tax authorities only.
These proposals do not address the
fundamental faultlines. In a world of
global monopolies, independent arms
length prices are difficult to ascertain.
So transfer pricing disputes will
remain. The tax system regards each
company subsidiary as an independent
taxable entity rather than part of an
integrated group. Thus, HSBCs 500
subsidiaries are taxed separately,
leaving plenty of room for tax
arbitrage. An alternative system,
known as unitary taxation, would base
tax on consolidated profits,
apportioned to each country according
to sales and other factors. All
intragroup profits/losses are negated
and profit shifting can be checked. But
big corporations oppose this and the
OECD has danced to their tune.
PREM
SIKKA
OECD
proposals
are a missed
opportunity
n Prem Sikka is professor
of accountancy at the
University of Essex
Hatfield:
talking
to PQs
RAP FOR AAT STUDENTS
The AAT disciplinary team has been busy recently.
Among those disciplined are Emma Way, who gained
national notoriety for being convicted of
driving offences after tweeting about a
collision with a cyclist. She has been
found guilty of misconduct by the AAT
and has been reprimanded.
George Gray, who has been convicted
of rape while a student member, has by
consent had his student membership
withdrawn.
Student membership has been
withdrawn for 15 months from Thato
Dihutso after it was found she took a
computer-based assessment for another student.
Thobile Nxumalo was found guilty of having
unauthorised material in her possession while sitting an
assessment. She was severely reprimanded
and debarred from sitting assessments for
six months, and fined 50.
Nomfundo Dlamini was found guilty of
possessing unauthorised material while
sitting an assessment. She also assisted/
encouraged another AAT student to breach
codes by preparing crib notes with them.
She has been severely reprimanded and
fined 50.
Finally, student Monametsi Die took an
exam for another student. He was severely
reprimanded and fined 50.
Emma Way
pq nov 14 P10 CCM_pq sept 12 p08 09/10/2014 12:09 Page 8
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011_PQ 1114_PQ 1209 000 06/10/2014 11:47 Page 7
12
PQ Magazine November 2014
PQ news
In June, the Home Office announced a
further tightening of the rules relating
to the issue of student visas, and
suspended 57 private colleges and
three public universities from being
able to issue visas to international
students. Home Office minister James
Brokenshire said: We have already
removed some 750 bogus colleges
from the list of those entitled to bring
foreign students to Britain. Many of
the private colleges are providers of
full-time ACCA courses and so readers
of PQ magazine will have an interest
in these developments. The latest
crackdown was prompted by
undercover reporting on the BBCs
Panorama, aired in February. They
secretly filmed English language
testing for the TOEIC (Test Of English
for International Communication)
exams run by an organisation called
ETS. They appeared to find answers
being read out to students by
invigilators cheating. The Home
Office launched a detailed and wide-
ranging investigation into actions by
organised criminals to falsify English
language tests for student visa
applicants. It found that over 30,000
TOEIC certificates have been falsified
and 19,000 others are questionable.
Colleges and universities have
admitted students relying on these
falsified TOEIC certificates and the
Home Office crackdown relates to
whether private colleges and
universities have abused their highly
trusted status. Cheating, falsifying
certificates and working in breach of
immigration rules are not compatible
with the professional ethics of
accountancy. Some colleges and
universities are now no longer
suspended but you should check with
your provider if you have any doubts.
CARL
LYGO
Visa fraud
does the
profession
no credit
n Professor Carl Lygo is
chief executive of BPP
Cant read it!
IRISH EYES SMILING
CIFPA win
CIPFA has won
the contract with the
NHS Leadership
Academy to be the
exclusive provider of
tuition services for
the finance
management stream
of the NHS
Graduate Scheme.
The contract has just started
and will initially run for two
years, with graduates on the
scheme expected to become
fully qualified CIPFA
accountants as part of their
training.
F4 a fairer test
The new-look F4 means
the well-prepared candidates
should get the result they deserve,
says Kaplans Sue Tuffnell. She felt
the exam will be more balanced
and less of a lottery regarding
which topics appear on the paper.
Find out how to prepare for the
new test on page 16.
Final audit changes
The Competition & Markets
Authority has published its final
order, putting into action major
changes in the audit market.
These include the requirement for
FTSE 350 companies to put their
statutory audit engagement out to
tender at least every 10 years.
There are also measures to
strengthen the accountability of the
external auditor to the Audit
Committee and reduce the
influence of management.
In brief
Illegible handwriting and poor
layout of answers is still a
common issue in many ACCA
papers, according to the latest
batch of examiners reports
The F5 examiner highlighted
this as a big
problem in
June. The F7
also revealed
many markers
are struggling
to read
students
answers. Meanwhile, the F8
examiner wondered why
candidates are not using
columns for questions when
this would have helped to
maximise marks.
The P4 examiner reminded
PQs that legible, well-presented
and well-structured answers
often get high marks. Good,
clear handwriting is essential,
says the latest report. Poor
presentation and illegible
handwriting also got a mention
in the P7 examiners report.
Another worry
is the fact that
many candidates
seem to be
avoiding the
ethics elements
in the exams.
The P2 examiner
especially felt in many ways
this was worrying as it would
be hoped at this level of exam
that candidates would be able
to discuss an ethical scenario
in some detail. It was stressed
that additional marks can be
easily gained for well-argued,
ethically-based answers.
Mental health
issues top list
This summer, for the first time, mental health
topped the list of reasons for enquiries made
by chartered accountants and their families
to the Chartered Accountants' Benevolent
Association (CABA) .
Employment usually heads the list of
issues presented by members, but these
were pushed into second place.
The most common mental health issue
recorded by CABA during 2014 is stress,
followed by depression, bereavement and
relationship issues. CABA's Kelly Feehan
said: These statistics should not be taken
as a direct indication that mental health is
becoming an increasing issue among
accountants. We have little or no evidence
that this is the case. She said the figures
show that when it comes to mental health
accountants are just like anyone else. She
went on: When they come under pressure,
as they often do at work as part of their
profession, they can develop problems.
Northern Ireland must be the place
to be if the investment of three of
the Big 4 firms is anything to go by.
PwC is to create 800 new jobs in
a 40m investment in Northern
Ireland. This includes the
development and delivery of cloud-
based management information
services and social project
management teams delivering
support worldwide to the firms
clients.
The jobs are aimed primarily at
graduates and follow an already
successful expansion of PwC
activities, through which the firm
has created over 300 jobs in the
past two years.
PwC top man Ian Powell said the
announcement reinforces PwCs
strategy to develop innovative client
services that draw on the strength
of the UKs skilled workforce.
Deloitte also recently announced
that it will be investing more than
30m in the next five years,
creating another 338 jobs across a
range of services. Its phase 2,
launched recently by First Minister
Peter Robinson, will deliver 338
jobs by 2019, in addition to the
177 posts announced last year (for
phase 1).
When complete, Deloitte
estimates the 338 jobs will inject a
massive 11.4m annually in
salaries into the local economy and
bring the total number of people
employed by Deloitte in Northern
Ireland to more than 700.
Back in May, PQ revealed EY
was creating 486 jobs in Belfast.
Half of these jobs will be in
management consultancy and most
of the remainder in other functions,
such as auditing. The firm already
employs 1,500 people in both
Northern Ireland and the Republic.
Stormonts ministerial executive
has confirmed it will be contributing
19m a year in direct salaries once
all the roles are filled.
Mike McKerr of EY Ireland said:
We are delighted to bring this
investment to Belfast, which will
further enhance our current service
offering to clients. He confirmed
that since July 2013, EY has added
180 people to its payroll across the
Republic and Northern Ireland.
The big question then: KPMG,
what are your plans for the
province?
Changing fortunes: investment
will boost Belfasts economy
PQ nov 14 p12_pq sept 12 p08 08/10/2014 09:31 Page 8
To get the recognition you deserve now, visit aat.org.uk/alternativeroutes or contact our
Customer Service team at membershipsupport@aat.org.uk or +44 (0)20 3735 2401.
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AAT is a registered charity. No. 1050724
013_PQ 1114v2_PQ 1209 000 08/10/2014 14:58 Page 7
PQ Magazine November 2014
14
PQ Awards 2015
ITS TIME TO GET
NOMINATING
S
o, a new lush awards venue has been
booked for early next year the Caf de
Paris. All we need now are the stars to fill
this top London Venue on Tuesday 10 February
for the PQ Magazine awards 2015.
How do you guarantee your ticket to the top
awards ceremony around? Well, it helps to get
on one of the shortlists! But, as we say, every
year you cant win an award unless you enter
sad to say, some people are still surprised when
we tell them that.
We have some great new sponsors this year in
the shape of the ACCA, CIMA, CIPFA and
ICAEW to name just four big ones. They know
just how good these awards are and wanted to
get involved. And, of course, a big thank you
goes to our regular supporters!
There must be someone you know who really
deserves one of our PQs. It could be you and
your colleagues as our Accountancy Team of
the Year, enjoying the dizzy lights of London
and dont forget to nominate your training
manager, you could make a friend for life!
Nominating couldnt be any easier all we
want is 250 words, plus any supporting
evidence, as to why your nominee should win.
Dont forget, you can enter yourself it shows
initiative, we think.
You can download an application form from
our website just click on the pq awards bar.
Or you can email your entry direct to
awards@pqaccountant.com.
Finally, you can send your entry to: the Editor,
PQ magazine, 4th floor, Central House, 142
Central Street, London EC1V 8AR. This years
deadline is Friday 19 December.
PQ
We have begun the search for the winners of 16 PQ awards the best
awards around! You too can make your CV shine with a PQ shortlisting
CATEGORIES
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YEAR PUBLIC SECTOR
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THE YEAR PRIVATE SECTOR
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SECTOR
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SECTOR
n ACCOUNTANCY TEAM OF THE YEAR
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THE YEAR
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OUR SPONSORS
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Our 2013
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proudly
display their
award in
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area of the
Business
School.
Winning an award will get you
noticed: ask our past winners!
Students Chris Vickers and Sanam Razaq,
from the MMU Accounting and Finance and
Economics Society, with their PQ magazine
award for Best Student Society
Quick Learning AAT student Donna Smith, who
won our Distance Learning Student of the Year
award, got star billing in Accounting Technician
The accountancy team and students at
Birmingham Metropolitan College celebrated after
winning our College of the Year Public Sector
pq nov 14 p14 Awards_Layout 1 07/10/2014 11:20 Page 1
December 2014 Exam
Revision Classes will
commence on
Saturday 8th November 2014
Lecture Timings: 9:30am to 4:30pm
Quality, Affordability, Employability
LCA Business School London, 19 Charterhouse Street, London EC1N 6RA
Tel: 020 7400 6772 enrol with us on-line www.lca.anglia.ac.uk
O
U
R

R
E
V
I
S
I
O
N

C
O
U
R
S
E
SExam focused course
ACCA - Revision Kit
Practice Questions
Advice on Exam Techniques
Past Exam Evaluation
Emphasis on Key Topics
P1 Rev
P1 Rev
F7-F9 P1-P3 P5-P7 F4-F6
F4 Rev
F4 Rev
F6 Rev
F6 Rev
F5 Rev
F5 Rev
F7 Rev
F7 Rev
F9 Rev
F9 Rev
F8 Rev
F8 Rev
P3 Rev
P3 Rev
P2 Rev
P2 Rev
P7 Rev
P7 Rev
P5 Rev
P5 Rev
P6 Rev
P6 Rev
Date Day
Saturday
Saturday
Saturday
Sunday
Sunday
Sunday
08 November 2014
15 November 2014
22 November 2014
09 November 2014
16 November 2014
23 November 2014
Saturday
Sunday
29 November 2014
30 November 2014
015_PQ 1114v2_PQ 1209 000 08/10/2014 14:59 Page 7
Pass rate: 45% (December 2013)
Technical difficulty: 3/10
Weighting of calculations: 0%
Weighting of discursive
elements: 100%
Exam technique: 4/10
The syllabus .
The F4 exam changes format dramatically from
November 2014. Students will have a choice as
to whether to sit a computer based exam or a
paper based exam.
Format of computer based exam
The examination consists of:
Section A
25 x 2 mark objective test questions.
20 x 1 mark objective test questions.
Section B
5 x 6 mark multi task questions.
All questions are compulsory. Duration is two
hours.
Question description
Section A: The two-mark objective questions will
give the candidate four alternative answers.
Candidates will be expected to usually give one
correct answer, although sometimes it may be
two depending upon the nature of the question
asked. Some of the questions will be simply
identifying the correct legal principle and some
will require application of a legal principle and
may be based on a well-known case.
The one-mark objective questions will give the
candidate three alternative answers. Candidates
will have to give one correct answer.
Section B: The multi task questions will usually
be scenario-based questions, and may be based
on relevant important cases. Candidates will be
expected to apply their knowledge to give the
correct answers from the different alternatives
given. A minimum of three different questions
may be asked on each scenario. Due to the
nature of the multi task questions it is unlikely
that there will be questions on the English legal
system.
Format of paper based exam
The examination is in the same format as the
computer based exam. The difference is that the
Section B multi task questions require the
candidate to write short essays as their answer.
Candidates will be asked questions on the
scenario and have to apply the law to the
scenario. There may be 2 or 3 parts to each
question.
Syllabus content
The content of the syllabus for both formats is
exactly the same. The main syllabus areas are:
The English legal system
This covers:
The civil and criminal courts.
The different sources of English law.
The Law of Obligations
This covers:
The formation of contracts.
The content of contracts.
Breach of contract and remedies.
The law of torts and professional negligence.
Employment law
This aspect of the syllabus covers:
The contract of employment.
Dismissal and redundancy.
The Formation and Constitution of business
organisations
This deals with:
Agency.
Partnerships.
Corporations and legal personality.
The formation and constitution of the
company.
Capital and financing of companies
This includes:
Share capital.
Loan capital.
Capital maintenance and dividend law.
Management, administration and the regulation
of companies
This includes:
Company directors.
Other company officers.
Company meetings and resolutions.
Insolvency law
This deals with:
Different types of liquidations.
Administrations.
Corporate fraudulent and criminal behaviour
This includes:
Insider dealing.
Money laundering.
Fraudulent and wrongful trading.
Content of new syllabus v old syllabus
There are no additions to the new syllabus from
the old syllabus. The examiner has removed
corporate governance and the structure and
operation of tribunals. There is less emphasis on
human rights.
Sitting the F4 exam .
Previously, students were required to learn a lot
of information which had to be reproduced when
answering questions. Reference was required to
the most important cases and statutes.
Candidates used to be able to do some
question spotting, which enabled them to miss
out certain areas of the syllabus.
The new format does not require rote learning
of definitions, etc, but candidates will need to
study the whole syllabus. The use of a large
number of multiple-choice questions allows the
ACCA to exam every area of the syllabus even
the most fringe areas. The scenario questions
require not only knowledge of the law, but
understanding of it to apply it correctly.
This means that there is no escaping the need
for more knowledge of the whole of the syllabus
in order to score well. Do not fall into that the
trap that as it is mainly multiple choice questions
the paper is very easy to pass.
However, a well-prepared candidate should
feel more confident about achieving the result
they deserve as the exam will be more balanced
and less of a lottery regarding which topics
appear on the paper.
Sue Tuffnell is the F4 Content Specialist at
Kaplan Financial
PQ
16
PQ ACCA F4 paper
PQ Magazine November 2014
Sue Tuffnell explains the changes
PQs will face in the all-new F4
Corporate and Business Law paper
BE A LEGAL EAGLE
pq nov 14 p-16_Layout 1 09/10/2014 09:37 Page 14
PQ Magazine November 2014
17
ACCA exams PQ
H
ow, PQ magazine asked the ACCAs
Alan Hatfield, was he going to deliver
on his promise after the last set of
exam results to provide students with additional
learning support, focusing on the optional
papers?
He explained that ACCA is currently working
on a number of initiatives or scoping others out,
but he wanted to reiterate that it is championing
a flexible approach to help its students success.
Employers want greater flexibility so that
students are aligned to business needs and not
exam timetables, Hatfield stressed. He went on:
As a result we will be introducing additional
exam sessions giving students the opportunity to
sit exams four times a year. Unlike other
professional bodies, our exam sessions will be
available to all students and not just re-sits.
Hatfield believes the changes will mean that
students and the organisations that support
them will be able to choose the pace at which
they progress through the qualification, while
also having the flexibility to make decisions
based on work and personal commitments.
Responding to calls to avoid big bang changes,
the ACCA starts the first phase with an exam
session in September 2015 in some key
markets. Then from 2016, all ACCA students will
be able to take exams in March, June,
September and December.
So how is he going to help those striving for
success in the optional papers? Hatfield revealed
that the ACCA is seeking feedback directly from
sitters. We are in the process of interviewing
students who failed an optional paper on their
first attempt, then passed second time, he said.
These candidates are being asked what they did
differently second time around and what advice
they can pass on to other students about the
approach they took.
Hatfield has promised that these interviews
can then be issued in a targeted way to other
students via PQ magazine and Student
Accountant. He believes that by doing this the
ACCA is tackling the reasons for failure head on
and finding ways to improve.
As PQ went to press, the ACCA was also
running an online webinar pilot, which covered
study at the professional level generally. Hatfield
said he expected high levels of engagement here
and was hoping for positive feedback. He can
then give the green light to rolling out sessions
for each of the optional exams.
Tutors from Platinum Approved Learning
Prividers (ALPs) are involved in the pilot; they
will discuss the challenges of the P level and
generally give as much advice as possible on
how to achieve success in the exams. The pilot
will be available globally, as would any further
webinars.
At the end of September, the P5 Qualification
Technical Advisor, a key member of the
examining team, recorded two videos (one for
tutors and one for students). This gives clear
advice on how to achieve success in P5. ACCA
is also planning to arrange the same for P4, to
be released in time to support the December
exams.
Finally, the ACCA is using social media. It has
put in place a programme of Facebook Q&A
sessions and is looking to focus on options in
the run up to the December sittings. The
sessions last an hour and include the ACCA
publishing team, the relevant Qualifications
Technical Adviser (QTA) and, if appropriate, a
tutor from a Platinum ALP. This will be an
interactive session where students can post
questions and ACCA replies.
PQ
PQMAGAZINE
GOESGLOBAL
Sign up for the Emagazine and read PQ magazine
no matter where you are online. Go to
www.pqmagazine.co.uk and sign up for FREE today
online. Go to
Alan Hatfield, ACCA Director
Learning, wants to help students
pass. Heres what he is planning to
help them turn a fail into a pass
HELPING PQs
TO SUCCEED
pq nov 14 p17_Layout 1 07/10/2014 11:28 Page 27
18
PQ Magazine November 2014
PQ ICAEW spotlight
This month the examiners look
at valuation techniques, which
crop up in the ICAEW Financial
Management exam
T
hings are only worth what
someone is willing to pay. When
valuing a company, both the buyer
and seller will want an estimate of its value.
In practice, both will determine a range of
values within which they can negotiate.
Historically, valuation exam questions
have been with or without a present value
calculation included. Candidates should
not expect the big NPV question on every
paper. NPV questions will continue to be
set, alongside valuation questions requiring
discounting knowledge and those that do
not.
The asset based approach requires a
calculation of the balance sheet value of
the equity (= net assets), which may or
may not require revaluation, using up to
date figures (e.g. for non-current assets).
Many candidates fail to pick up the historic
net assets figures direct from the financial
information provided (with no adjustment
required), choosing instead to focus on
assets rather than assets less liabilities.
The revaluations required the substitution
of two new values to replace the historic
figures for both companies, and a
recasting of the balance sheet total for net
assets. Many candidates in March 2014
could not perform these straightforward
calculations.
Patrick Connelly outlines how you can organise your life to give yourself the best chance of getting a pass
What is it worth?
Get a diary and work out how many days
you have between now and the exam.
Transfer this to an Excel spreadsheet (I am
sure as an accountant you will enjoy this)
and then assign an activity to each day.
Write in all your existing commitments such
as holiday, work and tuition dates. You will
instantly realise how few extra days/evenings
you now have left to undertake revision.
Contact your tutor to determine the
questions that will be attempted during the
course; this will avoid repetition when
planning question practice. Ask them if they
can recommend extra questions to attempt.
ICAEW has many past exams on their
website target the 2014 exams as they will
not be in the learning materials and have the
correct syllabus content.
Question practice is key it is not efficient
to endlessly re-read the manual or make
notes. If you are entering the revision phase,
practising exam standard questions is the
most important.
Distribute the questions you are aiming to
attempt over your calendar and be realistic:
you are unlikely to do five questions when
you come in from work. Perhaps try one
question after work for three weekdays and
then five questions over the weekend.
Keeping this up over a few weeks will give
you good coverage over the entire syllabus.
Stick to the programme; there is no point
drawing up this plan and not undertaking
the question practice. If you miss a nights
revision, ensure you catch up.
Have some good, clean fun, such as
watching TV or reading a book. Spending
all night in the pub is not a good idea you
are better than that. There will be time for
non-clean fun such as the pub after the
exam.
Patrick Connolly, Kaplan Financial
PQ
Income based approachesss
Exam questions normally require
earnings, dividends or cash flow based
valuations or some combination.
The earnings technique requires two
key inputs. The first is a P/E ratio. If the
company is unquoted, sufficient data will
exist on comparable quoted companies
P/E ratios in the question data to enable
you to find a suitable P/E. If it is a quoted
company, it will already have a P/E ratio.
A non-marketability adjustment is only
needed for the unquoted company. Many
candidates unnecessarily lower the
quoted companys P/E. For quoted
companies, a premium is usually offered
on the existing published share price,
and the P/E ratio used to value
comparable companies in recent
takeovers can be used rather than the
companys own P/E ratio.
Dividend-based valuations make use of
the dividend valuation model (DVM) or, in
a simpler form, dividend yield where
growth in dividends is ignored. Use the
formula sheet, particularly if you cannot
remember what the dividend yield is (put
g=0 in the DVM and you have it).
Present value of cash flows valuation
questions may be similar to project NPVs;
namely, relevant cash flow, inflation and
tax calculations may all be required or
the cash flows may be given in a
simplified form. You should understand
the technique, its weaknesses, and the
calculations. In June 2014, candidates
struggled to calculate the present value of
growing cash flows beyond the period of
competitive advantage, did not subtract
the value of debt to determine the value
of equity (discounting at the WACC finds
the value of debt and equity combined)
and did not add the value of short-term
investments at the end.
PQ
Sorting out your ICAEW revision timetable
pq nov 14 p 18_Layout 1 07/10/2014 11:29 Page 26
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PQ Magazine November 2014
21
CIMA exam tips PQ
BPP.
P1
Working capital management
the calculation of the cycle, the
impact of decisions on the cycle,
EOQ calculation, cash flow forecast
and compound interest calculation.
Operating statement reconciling
budgeted to actual profits including
fixed overhead variances and
possibly mix and yield calculations.
NPV including tax and inflation
and/or incremental revenue and
costs.
Sensitivity calculations and yield
to maturity using the IRR.
Expected values, joint probabilities
and risk based decisions.
Decision trees requiring both
appropriate construction and
evaluation.
Activity based costing calculations
and discussion of benefits and
drawbacks.
Benefits/problems of budgeting
techniques for discursive marks.
P2
Limiting factors calculations and
discussion of shadow prices.
Pricing optimal pricing and
discussion of pricing policies.
Learning curve calculations and
impact on variances.
Budgeting impact of
participation on motivation.
Performance evaluation via
financial/non financial measures.
Transfer pricing discussion of
differing policies and their
consequences linked with NPV.
Brought forward knowledge from
P1 this can be pretty random, so
expect the unexpected.
P3
Risk management being able to
evaluate risks and discuss their
significance in the context of the
scenario (pre seen and optional).
Corporate governance (but not
always in a profit-making context)
and its role as a form of
organisational control, including
identifying weaknesses and
recommending improvements.
Controls (especially organisational,
HR and management accounting
so dont forget what youve learned
in P1 and P2!).
Internal audit especially as a
form of control and when being
used for specific internal control
purposes (such as fraud
investigations or value-for-money
projects).
Financial risk (including hedging
controls and economic risk in the
context of transnational
organisations exposed to multi-
jurisdictional currency risk you
must be prepared to discuss these
risks as well as perform the
necessary calculations).
IT/IS systems in specific
organisations for specific purposes
recent examples have included
supermarket customer data
analysis, transport route revenue
analysis and online vacation
booking systems.
E1
The political, social and economic
context explaining how a business
relates to the national and
international environment it finds
itself in.
Operations management
explaining how an organisations
relationship with suppliers has
developed (e.g. TQM, relational
procurement).
Information systems discussing
how information systems can be
used to add value to an organisation
(potentially linked to HR/operations
issues).
Marketing applying key
concepts such as the marketing mix
to a scenario that could have ethical
implications.
Managing human capital
explaining how HR can maximise
the potential of an organisation,
both strategically (HR plan) and
operationally (recruitment and
selection).
E2
The competitive environment
discussing and distinguishing
between different competitive
environments (e.g. using
stakeholder mapping and PEST).
Strategic management
discussing how a firm develops a
strategy, including the rational
planning model and its alternatives.
Project management explaining
what a project is and discussing the
tools and techniques used to
manage it (e.g. 4-D/7-S models).
Linking project management to
the external environment
(e.g. stakeholder management/
reconciling time, cost and quality
criteria).
Leadership discussing the
difference between power, authority
and responsibility as well as
understanding and managing
conflict.
Managing the relationship
between manager and subordinate,
including teamwork, legal issues
and interpersonal (negotiating/
communication) skills.
E3
The competitive environment:
The way an organisation develops
strategy is affected by its external
This is it, our lastever exam tips pull-out supplement
for the CIMA November exams. Good luck you lot!
Continued on page 22
TOP
OF
THE
TIPS
environment and stakeholders. Be
familiar with the PEST and Five
Forces models.
Strategic planning approaches
vary from the rational model to
emergent strategy.
Information systems (IS) and
information technology (IT) can
have a significant impact on an
organisation and its competitive
position.
Strategic position and choices:
Internal resources and capabilities
of an organisation shape its
strategic options.
Be able to identify different
strategic options, using models
such as Ansoff, Lynch and Porters
generic strategies.
The evaluation of strategic options
should be structured around the
SAF framework.
Change management:
Be able to discuss the change
process and identify triggers for
change, be able to draw on models
such as Balogun & Hope Haileys
change matrix and Lewins Force
Field Analysis.
You may also need to recommend
how change can be managed
successfully to support an
organisations strategy, and how
resistance to change can be
overcome, referring to the McKinsey
7S model.
Implementation and performance
evaluation:
Performance measurement is very
important for an organisation to be
able to evaluate the performance
implications of a given strategy, and
whether it is delivering the benefits
an organisation hoped it would.
Performance measures can be
both financial and non-financial, be
able to refer to the balanced
scorecard and the performance
pyramid.
F1
Section A:
Taxation (three to five questions)
definitions of key terms such as
jurisdiction and hypothecation;
calculations such as corporate tax
due, underlying and withholding tax
and sales tax.
External audit the purpose of
the audit and the rights and duties
of the auditor.
Ethics definitions of the
fundamental principles and ethical
threats.
Accounting standards questions
testing definitions/calculations on
areas such as IAS 18 Revenue, IAS
38 Intangibles and IFRS 8
Operating Segments.
Section B:
Taxation (three to four questions)
written questions relating to tax
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22
PQ Magazine November 2014
PQ CIMA exam tips
definitions such as underlying and
withholding tax and the
administration of taxes as well as
more detailed calculations on the
areas of direct, indirect,
international tax and deferred
taxation.
External audit practical
questions based on a scenario
requiring you to consider whether
the auditors report needs to be
modified.
Ethics practical questions based
on a scenario requiring you to
explain the ethical dilemma and
consider the practical steps that
could be taken to address the issue.
Accounting standards written or
computational questions on areas
such as IAS 7 Statements of Cash
Flows, IAS 11 Construction
Contracts, IAS 17 Leases and IFRS
5 Assets Held for Sale and
Discontinued Operations.
Section C:
Prepare the statement of profit or
loss and other comprehensive
income, statement of financial
position and statement of changes
in equity for a single entity
(including adjustments for
inventory, property, plant and
equipment, intangibles, current and
deferred tax, provisions, leases and
construction contracts).
Prepare the statement of cash
flows for a single entity.
Prepare the consolidated
statement of financial position and/
or the consolidated statement of
profit or loss for a parent, subsidiary
and associate (including
adjustments for goodwill, the
impairment of goodwill, inter-
company trading and unrealised
profit).
The preparation of financial
statements for a single company
and a group are the most common
requirements in Section C. Where
the statement of cash flows is
tested, it is likely that this will be
worth 1520 marks and a separate
requirement will examine another
aspect of the F1 syllabus.
F2
Section A:
Groups question numerical
(consolidated statement of profit or
loss and other comprehensive
income, financial position or
changes in equity; extracts/workings
from group financial statements) or
written question (explanation of
accounting treatment of various
investments).
Interpretation of accounts
question segment reporting
(usefulness, limitations, analysis),
limitations of financial analysis,
interpretation of pre-calculated
You will often be asked to
produce a forecast to assess
whether objectives will be achieved.
Discussion areas could include
analysing the appropriate dividend
policy and the inter-relationships
between dividend, financing and
investment policies
Financial decisions:
You are often required to analyse
a source of finance (leasing is an
especially important area),
including cost of capital
calculations and discussion of
gearing levels; knowledge of the
role and limitations of Modigliani &
Miller theory is very important.
Make sure that you can discuss
the role and structure of a Treasury
Department.
The different working capital
financing and dividend strategies
are a popular area for this
examiner.
Investment decisions and project
control:
Overseas investment appraisal is
one of the most important areas in
this syllabus and is often tested in
question 1. Make sure that you
revise this area very carefully and
that you can apply the two different
methods for assessing overseas
investments and also that you can
discuss risk and financing issues,
too.
Business valuations are another
crucial area and is also commonly
examined in question 1 of the
exam; make sure that you can
apply all of the valuation methods
and that you can debate financing
issues and post acquisition
integration.
Adjusted present value and real
options are also important areas
where a solid knowledge is
important.
Make sure that you are able to
discuss project control techniques
such as post auditing.
Kaplan Financial
E1
Section A:
Expect the questions to cover the
full range of the syllabus.
Sections B and C:
The global business environment:
Emerging economies with
possible link to outsourcing/
offshoring.
Culture.
Corporate political activity.
Information systems:
System testing and/ or
maintenance.
Resistance to change.
Operations management:
Capacity planning/inventory
management.
Cousins or Reck and Long.
Marketing:
Market planning process and
the 4Ps.
B2B and B2C marketing.
Managing human capital:
HR theories (e.g. McGregor).
HR planning including
learning, training and development.
E2
Strategic management:
Corporate appraisal and its
components, especially PEST and
Porters five forces.
Corporate social responsibility.
Stakeholder analysis.
Relationship management:
Corporate Governance and ethics.
Mentoring.
Communication.
Project management:
Benefits/drawbacks of a single
methodology such as PRINCE 2.
Project management tools, such
as CPA or WBS.
Managing project teams.
E3
Strategic analysis and evaluation.
Mission and objectives.
Corporate social responsibility
and ethics.
F1
Company income statement,
statement of financial position,
statement of changes in equity
examined as a section C question.
Consolidated income statement
and statement of financial position
incorporating adjustments for inter
company selling/balances,
unrealised profit, impairment, fair
value and depreciation. Likely to be
a section C question.
Statement of cash flows using the
direct method (likely to be the
section B question).
Finance lease payment in
advance.
IAS 11 Construction contracts
possibly a loss making scenario.
IAS 37 Provisions and
contingencies.
PPE note including
depreciation, disposal, revaluation
and possibly asset held for sale
could be a section B question or
part of a note in section C for a
single entity question.
Business tax:
VAT calculation and impact on
profit.
Avoidance versus evasion
explanation.
Calculation of deferred and
current tax as part of a section C
question.
F2
General interpretation plus
limitations of analysis/further
information.
Earnings per share.
Financial instruments.
Share based payment.
Continued from page 21
ratios/statement of cash flow or
written/numerical EPS question.
Written question on external
reporting, for example, human asset
accounting, environmental/social
reporting, narrative reporting (such
as management commentary or
operating and financial review), or
convergence between US GAAP
and IFRS.
Two multi-topic or single-topic
questions on Issues in Recognition
and Measurement on some or all of
the following:
Classification, recognition, initial
and subsequent measurement of
financial instruments requiring
explanation of accounting treatment
and/or calculations and/or journals.
Substance over form
discussion of accounting treatment
(risks and benefits) and journal in
context of consignment inventories,
sale and repurchase, structured
entities, debt factoring or loan asset
transfers.
Share-based payment cash or
equity settled; requiring explanation
of accounting treatment and/or
calculations and/or journal entries.
Pension accounting
numerical question with notes to
financial statements or written
question explaining accounting
treatment for defined benefit plan
and/or defined contribution plan.
Asset valuation and changing
prices explanation of, comparison
between or advantages and
disadvantages of historic cost
accounting, current cost accounting
and current purchasing power;
IFRS 13 Definition of Fair Value and
/or advantages and disadvantages
of fair value accounting.
Section B:
Group financial statements,
e.g. preparation of consolidated
statement of profit or loss and other
comprehensive income, financial
position, changes in equity or cash
flow incorporating a change in
group structure (step acquisition
and/or disposal), a foreign
subsidiary or a complex group and
often written explanation of
accounting treatment.
Analysis of financial performance
and position in a scenario
(including some or all of statement
of profit or loss and other
comprehensive income, financial
position, changes in equity, cash
flow, segment analysis, pre-
calculated ratios). Usually, about
eight marks are available for
calculation of ratios and 12 marks
for commentary. Possible part (b)
on limitations of ratio analysis or
extra information required.
F3
Formulation of financial strategy:
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PQ Magazine November 2014
23
CIMA exam tips PQ
Developments in external
reporting voluntary reporting.
F3
Section A:
In the past, section A has
generally focused on topics from
syllabus section C: Investment
Decisions and Project Control,
which accounts for 45% of the
syllabus, so investment appraisal
and business valuation have been
the main topics. Although the
examiner has said that section A
will not always focus on these
areas, the last six papers have all
covered one or other of them,
emphasising how important it is to
be ready for a question on either of
these core topics.
Section B:
This will contain three questions.
Key topic areas which may be
tested this sitting are:
Rights issues (theoretical ex-
rights prices).
Lease v buy decision.
The role of treasury.
P1
NPV.
Planning and operating
variances.
Decision trees and expected
values.
Working capital management.
P2
Breakeven analysis.
Relevant costing and decision
making.
Participation in budgeting.
Transfer pricing.
Responsibility accounting.
Divisional performance
evaluation.
P3
Management control systems:
Employee or management risks
and controls.
Risk and internal control:
Ethics a small requirement
(around 5 marks) usually features
somewhere on the paper.
Corporate governance different
types of committees used to control
companies.
Review and audit of control
systems:
Internal audit.
Management of financial risk:
Interest rate risk and swaps
(foreign exchange risk management
came up in September 2014).
Risk and control in information
systems:
IT strategy.
IT risks and controls.
LSBF
E1
National cultural differences (The
Hofstede Model).
Implementation of systems with a
view to overcoming user resistance.
Measuring service quality
(SERVQUAL).
Pricing strategies.
Effective appraisal systems.
E2
Levels of strategy.
Porters diamond.
Transaction cost theory.
Project planning.
Network diagram.
Conflict.
Groups and teams.
Communication.
Ethics and corporate social
responsibilities.
E3
Ansoff growth strategies.
Change management on
implementation possibly via Lewin.
Management of stakeholder
ethical context.
CSF and performance measure
identification.
Using technology to enhance
advantage.
F1
Income tax and deferred tax
calculations.
Property, plant and equipment,
including disposals, depreciation
and revaluations.
Consolidated financial statements
consisting of subsidiary and
associate.
Principles of business taxation
theory.
IASB framework .
F2
Share-based payments both
SAR and options.
Pension calculation.
Foreign subsidiary consolidation
theory plus selection of
calculations.
Stepped acquisition control to
control.
Human resource accounting
issues.
Full ratio calculation.
Hybrid liabilities.
F3
Weighted average cost of capital.
Investment appraisal.
Valuation technique.
Financial objectives and dividend
policy.
Business finance.
P1
Investment appraisal, NPV, IRR,
asset replacement cycle.
Variances mix and yield
variances along with some basic
ones and operating statement.
ABC and absorption costing.
Risk maximax, maximin,
expected value, minimax regret,
value of perfect information.
Working capital valuation and
period.
P2
Variances.
Budgeting.
CVP analysis.
Investment appraisal.
Transfer pricing.
P3
Operational risks in a specific
scenario.
The role of senior staff in risk
management.
Difficulties encountered when
staff ignore or subvert control
systems.
Issues when implementing new
management accounting systems.
Currency risk (with calculations).
Internal audit reviews.
Failure of IT systems.
Manchester Met Uni
E1
It is important to fully utilise all
the materials provided. Basically,
this means do the recommended
reading from the course text but
also consider some wider reading,
for example the financial and
business press or articles from the
CIMA website. As the E1 paper
focuses on the operational and
strategic elements, your ability to
demonstrate your understanding
and depth of knowledge in the
application to your discursive
answers will be of benefit. Consider
the structure of your answers. For
example, for a question about
cross-cultural management the
Hofstede Model has five
dimensions, and the best approach
should be to use each dimension
as the basis for your answer.
Consider how, according to the
question or scenario, it relates to
the intended meaning of each
dimension, and what this in overall
terms might mean in terms of the
management of an entity due to
national cultural variations. To
maximise marks, can you give
specific examples such as those
from the course text or your wider
reading? The ideas of structure
could be applied to any discursive
question; there will always be a
series of points or concepts that
you need to apply in order to
demonstrate your knowledge and
understanding.
P1
There could be something on
absorption costing/variances (an
article has just gone up on CIMAs
website on this!) and possibly
modern costing methods/budgeting
techniques. Project appraisal is
usually a favourite as well. The
Managing Short Term Finance
section of the syllabus will be
removed from P1 from 2015 so
although this could be examined I
dont think there is likely to be a big
focus on it.
E2
Strategic management:
Competitor analysis.
Strategic analysis, especially
models such as Porters Five forces
or Value Chain.
Continued on page 24
pq nov 14 p23 v2_Layout 1 09/10/2014 10:53 Page 23
Corporate social responsibility
and ethics.
Relationship management:
Leadership theories, governance.
Management control
performance appraisal.
Project management:
Project management tools.
People and projects.
F2
Section A:
Usual mix of share based
payments, pensions, consolidation,
analysis (not EPS), financial
instruments and developments.
Substance over form may be
tested, and developments may
cover some of the additional
reporting requirements such as the
Global Reporting Initiative.
Section B :
There may be a full cashflow. If
not a cashflow, I would expect an
SFP rather than an income
statement. Foreign exchange may
be tested. The ratio analysis
questions are fairly standard,
however questions can be tested
where ratios are already given, and
the marks are purely for comments.
P2
Be prepared to use linear
programming for profit
maximisation.
Cost analysis and product mix
decision making is worth being
familiar with.
Learning curves, life cycle costing
and balance scorecards are always
popular topics.
Being able to highlight the
alternative measures of
performance for responsibility
centres and having full knowledge
on all aspects of divisions and
transfer pricing is wise.
Continuous improvement
methods such as Kaizen Costing
and TQM are often examinable
areas.
P3
The examiner has continually
highlighted the importance of
financial risk, frequently
highlighting the fact that it
comprises 35% of the syllabus and
the fact that students struggle with
this area in particular. Question 1
always contains some element of
financial risk and there is often
another question, which includes at
least some financial risk. The
evaluation of financial risks and the
management of those risks is
therefore a very important to area
to be comfortable with. While there
may be an element of computation
in these types of questions, the
calculations do not normally carry
many marks and you will still be
expected to interpret the
calculations and demonstrate an
ability to use them to discuss,
evaluate or advise on proposals.
Another very important area of
the syllabus relates to the
evaluation of risks and
recommendation of risk
management strategies. An analysis
of past papers indicates that this
area is tested on virtually every
paper, so you need to be familiar
with the tools for performing risk
analysis and evaluation, including
the risk matrix, all the standard
approaches to managing risks and
the CIMA risk management cycle,
etc. The examiner has highlighted a
typical cause of failure to be not
understanding or answering the
requirements of the question or
relating it to the specific scenario. It
is important, therefore, to read the
requirements properly. Particularly
in risk assessment questions, good
marks can be earned by identifying
the types of risk specifically asked
for from the scenario given. Marks
can be lost by identifying other
types of risks or only general risks
not highlighted, particularly as this
can make it very difficult for you to
assess the risk adequately or
propose an appropriate strategy.
It is important that all areas of the
syllabus are revised the paper
has little choice, only allowing one
question to be missed out, so you
need to ensure that you are also
familiar with for example,
information systems, internal audit
and accounting control, all topics
which appear on a regular basis.
Corporate governance and ethics
is a topical area and questions are
appearing more regularly so again
ensure that you are familiar with
and that, in particular, you would
be happy to evaluate from a give
scenario any weaknesses in
corporate governance or discuss
ethical issues arising.
F3
The key to success on F3 is
twofold. Firstly, question practice. It
sounds like a clich but the big
topics such as capital structure and
NPV have a limited number of
complications that the examiner
can use to test your understanding.
Through question practice you can
become familiar with as many of
these as possible in advance of the
examination so that you are more
able to respond appropriately and
ultimately pass on the day.
Secondly, is not to focus too heavily
on numbers and formulae at the
expense of qualitative components
of the syllabus. Students often omit
advantages/disadvantages type
revision as they perceive these to
be easy. Often it is student
performance on these more
qualitative components of the
assessment that will dictate
whether they will either pass or fail
the paper as a whole.
E3
The following topics are considered
essential revision areas for the
exam:
Porters 5 Forces/Diamond
CSFs/KPIs.
Ethics including the CIMA Code
of Ethics.
Change management
implementing change: Lewins
Force Field/Prescribed.
Planned Change theory.
Portfolio Analysis BCG/Product
life cycle.
First Intuition
F1
Sections A and B:
Taxation, including deferred tax
and a tax computation.
Statement of cash flows.
Ethics.
The framework.
Section C:
Single company accounts
including revaluations, leases.
Group accounts.
F2
Groups statement of cashflows.
Interpretation of company
accounts.
Group SOCIE.
Financial instruments.
Earnings per share.
Pensions.
Discussion of whether to include
people on the SFP.
F3
Overseas project appraisal.
Financial forecasts.
Business valuations.
Cost of capital and risk.
Decisions on sources of finance.
Working capital.
P1
Section A:
Selection of short answer
questions.
Section B:
Likely to have one question on
budgeting techniques (ABB/
Incremental/ZBB).
Financial instruments (including
calculation of AER/YTM).
Modern environment (TQM/JIT/
environmental costing).
Potential calculation questions
(VOPI/NPV/profit tables/EV).
Preparation of cash budget.
Section C:
Variances (including planning v
operational/mix v yield) ABC has
come up in section C in the past
two sittings, hence is likely to get a
variance question.
NPV plus payback period/IRR.
P2
Learning curves.
Variances.
ROI and RI.
Pricing.
Multiple limiting factors.
ABC.
TQM/JIT.
Budgeting.
P3
Section A:
Identification and management of
risks for the company in the
preseen using elements of the risk
management cycle.
Evaluation of the companys
controls.
Section B:
Corporate governance internal
audit, internal controls, boards of
directors.
Financial risk currency risk:
ways of managing currency risk,
including options.
IT risks and controls, including
CAATs.
Evaluation of two projects.
E1
Corporate governance.
Human resource plan.
Marketing mix.
International trade.
Use of IT in operations
management.
E2
Project management
completion and CPA.
Corporate governance.
Ethical behaviour.
Managers and subordinates.
Organisational culture.
Contrasting models of strategic
planning.
PQ
24
PQ Magazine November 2014
PQ CIMA exam tips
These tips should only be used
in conjunction with proper
study. We cannot guarantee
that these topics will appear in
the actual exam as we have not
seen the exam papers.
Examiners are not predictable
so it is vital that all core
syllabus areas are revised fully.
The tips are based on our
experts experience and
understanding of the CIMA
exams and will help focus your
last minute revision. Please
also read all the Examiners
articles and PEGs available on
the CIMA website
HEALTH
WARNING
Continued from page 23
pq nov 14 p21-24_Layout 1 07/10/2014 11:33 Page 24
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025_PQ 1114v2_PQ 1209 000 08/10/2014 14:57 Page 7
26
PQ Magazine November 2014
PQ roundtable discussion
Objective test questions (OTs) are being introduced into many of
the accountancy body exams. What are the major issues here?
Malcolm Bell: Students must look at the OTs and understand the type
of exam they are sitting. They have got to start having a go at these
questions right away. There is an art in putting together OT exam
papers, you have to counter-balance the type of question and the
amount of time you give per question. If questions are long and
difficult to interpret then it could put the whole paper out of kilter. We
will know how well students have done by the outcomes! If failure
rates go up then the bodies have got their benchmarking wrong. It is
crazy that some current pass rates are just 30%.
Jan Weston: Students may think OTs are a lot easier and the worry is
that they wont give them as much attention. Understanding the way
questions are worded is going to be a key to passing these new
exams. The challenge for the bodies is to ensure consistency in their
exam processes.
Jim Hinchliffe: Students must sit exams that look like the ones they
are going to face. There are also going to be time pressure issues.
Many of these exams are just 90 minutes long, rather than the normal
three hours. Students will also have to learn all the syllabus as the
new CIMA pass rate, for example, is 70%. The consistency of exams
is important. The bank of questions is being outsourced to external
writers. Perhaps it will also change how exams are perceived some
say CIMA E1 is easier than P1. That may change
Clare Finch: There have been some major differences in some of the
CIMA pilot exam papers. The F2 exam has only four drag and drop-
type questions. There is a worry about the robustness of these OTs. I
think the other bodies should take more advice from the ICAEW who
have been doing this type of exam successfully for a number of years.
Danusia Wysocki: My concern is that some students will struggle with
the IT. The bodies must ensure the lecturers are trained in the
software and understand it. The exams must not become a test of a
candidates IT skills.
Do you think the introduction of OTs will change how students
study? The onus will very much be on the student to get qualified.
Malcolm Bell: The AAT and entry level of the three major accountancy
bodies all have OTs now. The big issue is progression and keeping
students motivated. Some students never feel ready for the exam. So
while they book a course it is a huge psychological step to booking
the exam.
Jim Hinchliffe: Students have to be careful. The longer it takes them
to get through the OT then the further back their knowledge becomes
when they need it for the case study. Our focus groups with students
show PQs like us to put an exam date on the timetable. That sets a
date for the revision phase and a final outcome.
Clare Finch: It can be like herding cats at times. Many PQs just dont
ever feel ready and now with a CIMA pass rate of 70% that might
become worse. Students will have more control but with this choice
comes new responsibilities for them.
Tony Mock: Good exam technique is always going to be important as
nerves can become an issue on exam day. You have to make sure
you have taken sufficient practice papers so when it comes to the real
thing you just see it as another test. It would really help if all the
bodies released the three questions that were answered most badly,
providing real examples. The examiners should then discuss in detail
where students are going wrong and what they expect to see. The key
to any successful change is decent analysis and questions.
ITS MORE THAN JUST
MULTIPLE CHOICE
We put six top tutors around a table and asked them about the move to OTs. Here is what they had to say
MEET OUR ROUNDTABLE EXPERTS
Malcolm Bell, BPP Clare Finch, HTFT Partnership
Tony Mock, LCA
Jan Weston, Reed Business
School
Danusia Wysocki, London South
Bank University
Jim Hinchliffe, Kaplan Financial
Jan Weston: Some students really do know what they are doing. Others need
more help and that is when it is important to set out their own personal study
plan. It is easier for ICAEW PQs as their future is all mapped out for them.
They know what they are going to be doing in two or three years time. It would
be good if all students did the same, mapping out all the levels right through to
the end.
There has been a shift to online learning. How do you see this developing?
Malcolm Bell: It is all about your circumstances. If you know that you cant be
at every lecture and know you might miss some of the course then online is
the perfect solution. Our online students also seem to find it much easier to
ask questions. I can also see how they are performing on individual tests and
instant polls.
Jim Hinchliffe: It is true, it is easier to ask the obvious questions online.
pq nov 14 p26-27_Layout 1 09/10/2014 09:38 Page 12
PQ Magazine November 2014
27
roundtable discussion PQ
Students will ask really good questions in
private which they would never ask face-to-face.
The community boards also really help to engage
our learners.
Jan Weston: We are a face-to-face organisation.
Often our students want to get away from
technology so they can concentrate on learning
and immerse themselves in the syllabus. They
can also get away from the other distractions, no
matter how much they love them (we are talking
family here).
Are hard copy study manuals still important?
Tony Mock: We have recently had requests about
having the material on smartphones. Which is
new. But, yes, students still need and want their
manuals they work brilliantly in this market.
Malcolm Bell: Every survey we do of students
says they still want them.
Jan Weston: All our students buy one, but what
percentage ever opens them is debatable. They
are a comfort though.
Clare Finch: With the introduction of OTs I think
manuals will have a new lease of life. Students
will need to study the whole syllabus so will have
to refer to them on a much more regular basis.
The only worry is they could get bigger!
During the discussion the need for students to
take control of their future became very
apparent. The good tuition companies will help
PQs manage their journey to qualification. They
will help you create your own personal study
plan. This will become more and more important
as the exams move to on demand (see page 1).
PQ
Six of the best: our roundtable panellists
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courses.Funding available for ACCA and CIMA fees for employees of UK charities. All prots are covenanted up to Reed Educational Trust Limited which is a registered charity. Reg. No. 328347
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Stella Petersons story
I was working as a school administrator for couple of years until I decided to pursue a
career change. I set out to do a short course that would give me the skills to find a new
direction and make that change. I wanted a new challenge, but I also needed
something that was flexible to fit around my work life and my two young kids.
I first started to study CIMA at the London School of Business and Finance. At the
beginning, the course content felt a little overwhelming but I put this down to the fact
that I hadnt studied for a long time. Then I heard about an introductory short course
into finance and accountancy called AAT Access
from All Inclusive Training. The course didnt
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appealed to me and I felt it a good starting place. I
was impressed by how flexible and accessible it
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From the introduction course I worked my way up
through the different levels, all the time gaining
more confidence.
After I completed level 1 and 2 I got an interview for a finance role at Thomson
Reuters, an international multimedia news agency, and was offered the job.
Ive also continued with my studies, have progressed onto AAT level 4 and intend to
become a fully qualified accounting technician.
Without AAT Access I wouldnt be in the position I am today. Its helped me
overcome the barriers I faced in starting a new career, given me a qualification and
started me on my journey for a long and successful career in accounting.
And this is my story to date!
Melrose Strachans story
I was working at
a McDonalds
restaurant, not sure
how my life was going
to pan out as my dream
of becoming an
accountant had started
to look bleak. I had
approached
accountancy firms begging for experience with no pay or
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we do not take on trainees anymore.
I discussed my worries with a very good friend of mine
and she mentioned All Inclusive to me. The next day I
visited Julie and I asked about my options. It was the right
thing for me at the time, although another problem arose
the cost. It transpired that I would have to pay full price as
I was working, and I was heartbroken because I couldnt
afford it.
So I opted for the next best thing I chose to pay for
Sage online 50 only. But this just added sugar to my taste
buds I wanted to complete AAT, I wanted it all. After
thinking very hard about my options, I resigned from my
job at McDonalds, hoping that this would push me more to
search for a job in the accounting field. It wasnt easy, and
I was on Jobseekers Allowance for over a year no job.
The job centre kept sending me for admin or sales
assistant jobs, and I became depressed.
After telling Julie that I was willing to accept voluntary
work, within weeks she called me explaining that there
was an opportunity at Croydon Council very exciting! I
went to the interview to face three intimidating ladies;
however, they turned out to be the most beautiful,
accommodating individuals. I spent nearly three months at
Croydon Council and there was never a dull day. There was
always something new to learn. Its a wonderful feeling
when you know that as well as getting you can also give.
Actually putting what you have learnt into practice, and
being rewarded for it, the joy and satisfaction is beyond
explanation. I loved it there.
At the end of my time at Croydon Council my hard work
did pay off. The three beautiful ladies found a paid job for
me and it was one where I can gain more experience. I am
now working for Croydon Council at a Local Authority
Trading Company and it feels good!
28
PQ Magazine November 2014
PQ AAT case studies
ALL INCLUSIVE
At the recent All Inclusive Training awards ceremony two students gave a real insight into how
Julie Agbowu and her team had helped change their lives. We let their stories inspire you
NEED HELP?
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pq nov 14 p 28_Layout 1 09/10/2014 09:40 Page 23
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30
PQ Magazine November 2014
PQ international standards
E
quity accounting bores the living
daylights out of me. In my usual
sweeping and dogmatic manner I
will gladly tell you that equity accounting
is patently nonsense and should be
replaced by investment accounting. Then
I will refuse to debate the matter because
it is nonsense. Well, it appears I am out
of step with the rest of the people in the
financial reporting universe who are
happily debating equity accounting. So I
guess I should give a flavour of the story.
Equity accounting is the name given to
the roll forward method used to account
for associates and joint ventures. That is
already a bad start, as equity accounting
has nothing to do with equity. Associates
are defined by influence, which is the
power to participate in management
policy. Joint ventures are incorporated
joint arrangements defined by joint
control, which is the power to direct
activities divided between two or more
investors with unanimous voting. These
tricky ideas of roll forward and joint
control are best illustrated by example.
Consensus voting .
The much-hated Walkie Talkie building
in central London is a joint venture. The
two investors, Land Securities and Canary
Wharf, share the company share capital
5050. They have agreed that nothing
happens to the building unless both
agree. This consensus voting represents
joint control and so this company is a
joint arrangement. But there are two
forms of joint arrangement; joint
operation (JO) and joint venture (JV). The
difference is a touch more subtle, but
essentially a JV is incorporated and a JO
is unincorporated.
So, as the Walkie Talkie sits in a limited
company, the building is a JV and is
rolled forward using equity accounting.
To explain these last two terms, let us
throw in a few numbers. Say you buy the
Canary Wharf half-share rights for
1,000m at the year start, then the
Walkie Talkie becomes your JV and you
will do equity accounting.
Say the whole company grows by
200m over the year, then you will carry
1,100m (1,000 + 50% x 200) on your
balance sheet for your JV at the year end.
This accounting is called roll forward, as
it uses the idea that the balance now is
what the balance was earlier rolled
forward for the growth. Roll forward is
used widely in accounting, but when
applied to an associate or JV roll forward
is called equity accounting.
This way of looking at equity
accounting is called the valuation
approach. It is by far the most common
way of viewing the numbers and appears
to be the viewpoint of the relevant IFRS
(IAS 28). The valuation approach is
saying the JV is worth now what it was
worth when you bought it plus the
growth. The valuation approach appears
to be trying to approximate year-end fair
value. Written like that the approach
sounds quite reasonable, but actually the
above reveals equity accountings biggest
weakness.
Many commentators looking at equity
accounting, including the former
chairman of the IASB Sir David Tweedie,
have responded as follows: Surely if you
want fair value would it not be quicker
and easier to use fair value? They have
a point. When equity accounting was
devised 60 years ago fair value was hard
to measure and guessing at fair value by
using cost plus growth was reasonable.
But now markets are far more liquid and
there is even a whole IFRS dedicated to
the measurement of fair value (IFRS 13).
It seems rude not to use it. So many
commentators think equity accounting
should be replaced by investment
accounting where associates and JVs are
carried at fair value, with gains to profit
or loss (FVPL under IFRS 9).
This argument becomes more
attractive once you start to look at the
mechanics of equity accounting under
pressure. Equity accounting starts to
wobble with something as simple as a
revaluation down in the associate and it
falls apart if the associate has share
based payment.
One-line consolidation .
But equity accounting may not be
attempting a valuation. Equity accounting
may be a one-line consolidation. To get a
feel for this I only need to give you one
more number in the example above. Say
the net assets of Walkie Talkie Limited
are 1,400m in total at purchase at the
year start. Then your goodwill in your JV
is 300m (1,000 50% x 1,400). So the
year end carrying value of 1,100m can
be attained by the rather convoluted
method of combining the unchanged
goodwill with the grown net assets
(300 + 50% {1,400 + 200}). Written like
that, the one-line consolidation approach
is making my eyes go funny. So you can
see why it is rarely used to calculate the
carrying value. But it does show that
there are two ways of looking at equity
accounting.
The IASB is asking first whether equity
accounting is aiming to achieve a
one-line consolidation or a valuation, and
then they can develop a method that
best delivers that aim.
Martin Jones lectures at LSBF
PQ
I might not like it, but equity
accounting is here to stay...
Martin Jones
argues against
boring equity
accounting
Car melter: the
infamous Walkie
Talkie building in
the City of London
pq nov 14 p30 CCM_Layout 1 09/10/2014 10:44 Page 23



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031_PQ 1114_PQ 1209 000 03/10/2014 10:28 Page 7
S
o, this is the last ever Strategic
Level pre-seen! Well, the last of its
kind, before the first integrated
case studies go live in early 2015.
Given how important it is to pass your
Strategic exams in November, this article
will help you in two ways. First, it will
help you along the way with our simple-
to-follow view of Y plcs current position
as per the pre-seen information. Second,
based on our extensive experience of
what it takes to pass case study exams, it
will clarify what to do (and what NOT to
do!) in terms of building further pre-seen
analysis into your preparations.
Y plc .
The pre-seen is based on a confectionery
company, Y plc. Although Y is based in
the eurozone and its financial results are
presented in euros, many of its other
characteristics appear to be similar to the
UK confectionery company Thorntons
plc. Some of the drivers affecting Y plc
that might be important in the exam are
described below.
Strategic development: Y plcs product
range has traditionally been chocolate,
but it is now diversifying into other
confectionery items. Y needs new
business ideas and needs to reduce its
costs to keep its shareholders happy.
These initiatives may be spelled out in
the unseen material in each exam, with
you being asked to respond to them and
to give advice.
Sales channels: Y plc has a number of
sales channels its own high street
stores, franchises, retail partners, online,
direct contract sales to corporate clients
and it also manufactures products on
contract for other retailers.
Demand: Y sells worldwide, but its main
market is Europe. Sales have been strong
despite the recession, as confectionery is
seen as an affordable luxury in a time
when other luxuries are out of reach.
Recent reports from the International
Cocoa Association suggests that the
European confectionery market is
declining, North America is showing
some growth, and Asia is showing
significant growth. Increased chocolate
consumption in Asia is being seen as a
significant factor in the industry.
Increasing profits: Y has decided on a
cost cutting strategy. Y may choose to cut
costs through reducing its overheads,
perhaps cutting the number of high
street shops or by driving efficiencies in
its production.
Supply chain: The basic ingredients for
chocolate are cocoa butter, cocoa liquor,
sugar, milk and vanilla. While cocoa
butter is becoming more expensive, the
price of cocoa powder, which is used in
baked goods, chocolate drinks and ice
cream, is becoming cheaper.
Competitors: There are low barriers to
entry and small, niche manufacturers
have increased.
Corporate Social Responsibility (CSR):
Y has strong ethical and environmental
standards that it needs to maintain.
Many companies that buy cocoa are
members of the World Cocoa Foundation
(WCF), a charity working to ensure
sustainable farming methods and
livelihoods for cocoa farmers.
So what happens next?
Do .
Read over the pre-seen carefully to
familiarise yourself with the current
strategic issues Y is facing and which
strategic models could be applied (E3).
Try to identify the current and potential
risks faced by Y and what controls they
may or may not have in place (P3)
Spot the key themes emerging from the
financial statements and what they may
mean for the future (F3).
The objective here is to ensure you
understand the nature of the world in
which Y operates (and not to try to
predict what will be tested in the unseen
on exam day).
32
PQ Magazine November 2014
PQ CIMA pre-seen
Steve Malpass shares some expert advice on how to deal with the case study
element of the November CIMA Strategic exams the last one of its kind
MMM CHOCOLATE!
Do not .
Research the industry in too much
detail. Although Y bears a resemblance to
Thorntons, any exam questions will focus
on Ys issues, not those of real-life rivals.
Try to memorise the facts of the pre-
seen. If any reference is needed to the
pre-seen in order to answer any of the
section A requirements the examiner will
provide them, e.g. discuss with reference
to the companys existing strategic
objectives (strategic pre-seen page 3)
Assume that the pre-seen sets the
boundaries of the unseen. It is likely that
other issues and topics will be brought in
to play on exam day.
Ill end with a quote from a colleague who
shared their thoughts on this: Passing
Strategic Level is not down to how much
you know about the pre-seen. Its about
having the syllabus knowledge and the
exam technique to produce business-
sensible answers that focus exactly on
what is put in front of you on exam day.
And not forgetting about Section B is
important too.
I must say that last bit is pretty critical
if you want to pass.
Steve Malpass is Head of CIMA at
BPP
PQ
pq nov 14 p 32_Layout 1 09/10/2014 09:40 Page 23
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PQ Magazine November 2014
34
PQ CIPFA spotlight
F
ollowing extensive consultation
with a range of employers and
stakeholders, CIPFA has
relaunched its professional qualification,
which will be fully operational from 2016
(although students commencing CIPFA at
the Certificate level in 2015 will benefit
from the changes from the outset). The
qualification changes will meet the needs
of the fast-changing public sector finance
profession.
The main changes will:
Better reflect the needs of UK public
finance practitioners, particularly for a
wider range of commercial skills, the
increasing involvement of private and
third sector bodies in public service
delivery and the growth of integration
initiatives across UK public services.
Provide greater portability between the
public and private sectors.
Further incorporate academically sound
and commercially attractive entry routes
for holders of other qualifications. In
particular, we are ensuring a much
smoother pathway for AAT members and
holders of many university finance-related
degrees.
Provide easier and streamlined routes
to CIPFA membership for experienced
professionals qualified with other
chartered bodies of equivalent standing
and who work in public service financial
management and audit.
Enhance the Practical Experience
Portfolio (PEP) by placing greater
emphasis on the role of the employer,
through mechanisms such as employer
accreditation schemes and the use of
qualified accountants as mentors and
supervisors, and streamlining the
progression to CIPFA membership.
Increase the accessibility and flexibility
of the qualification by, for example, the
introduction of e-assessment in 2016.
CIPFA is also upgrading its digital
tuition strategy to create many more
e-learning and blended tuition options for
students with the new qualification.
PQ magazine recently cited CIPFA as
offering the best value for money for
employers and students (PQ, February
2014). CIPFA also maintains the highest
standards and ensure our students
maintain strong pass rates we aim to
build upon these successes with our
improved offering.
For more information visit
www.cipfa.org/newPQ
Thanks to CIPFA for this article
PQ
Improving the qualification
CIPFA is changing its qualification to better
reflect what PQs will need in the workplace
CIPFAs Robert
Street HQ: the
institute is moving
to new premises
near Tower Bridge at
the end of this year
pq nov 14 p34 CCM_Layout 1 08/10/2014 11:58 Page 31
performance measurement PQ
P
erformance measurement
remains fashionable for public
and private organisations and
consequently in exam world. So it is
essential that students understand the key
skills that examiners are trying to draw out
of them in pretty much every performance
measurement based scenario.
Financial measures are inevitable. The
modern accountant must make the
numbers talk namely, describe what the
numbers are doing and explain the
reasons why the numbers have moved as
they have, to a member of management
without a financial background. This
means being prepared (as always) to state
the obvious in understandable, non-
technical language. The scenario will act
as a guide here, giving very clear clues.
Students must, however, manage their
expectations about what can be achieved
in the time available. Be careful not to do
numerous calculations and only talk about
a few of them. It is important to have a
plan of how to attack the question, but be
aware that the time will not allow a full
analysis, as would be produced in the
office. For example, for a 15-mark financial
analysis question I would advise my
students to aim for five calculations with
written descriptions and explanations.
A balanced view of performance
measurement has to include non-financial
measures. The reason for this is that
financial measures simply measure the
result of performance (resultant factors).
Therefore, by the time bad performance
has manifested itself on the accounts,
there is nothing management can do
about it. Equally, financial performance
measures can encourage the cutting of
discretionary spend (such as marketing,
maintenance, training) items that have a
positive impact on the finances in the short
term but a detrimental impact upon the
long-term performance of the organisation
(namely, financial measures can create
short-termism in decision making).
Non-financial measures encourage
management to look at the reasons why
the business is performing well or badly
the causal factors. Assessing these factors
helps management understand specifically
how performance could be improved and
what specific actions/behaviours create
competitive advantage for the organisation.
These actions or behaviours are then
identified as being critical to the success of
the business critical success factors.
Once identified, these actions/behaviours
must be encouraged to continually
improve. This is done be setting relevant
targets for staff to achieve that ensure the
Matt Holden
explains how
you can
balance
performance
measures
positive behaviours continue and the not
so good improves. These are known as
key performance indicators (KPIs).
How high do we set the bar for desired
performance? The answer lies in
benchmarking comparisons to other
divisions within the organisation or to
competitors via benchmarking clubs. A
balanced view of performance measures
will ensure management takes a balanced
view of their business looking for
feedback and feed forward information.
A good exam answer will use financial
measures, discussing the story they tell but
being aware of the inherent weaknesses
and limitations therein. It should also be
able to justify the need to use non-financial
measures alongside financial ones.
Matt Holden, Reed Business School
PQ
Over 500 Bookkeepers under one roof. Fifteen top industry speakers
including Minister of Pensions. Twenty exhibitors. And we gave away
a free Smart car. Wow!!
But dont despair
You can still change your career path and use your existing AAT,
CIMA, ACCA or ICAEW qualications to become a Certied
Bookkeeper by exemption, start your own practice, serve Britains
small businesses and start a career that really makes you count.
The Institute of
Certied Bookkeepers
Proud sponsors of a PQ Award
www.bookkeepers.org.uk
Sorry you missed it
BIGGEST GATHERING OF CERTIFIED BOOKKEEPERS EVER
Balancing act
pq nov 14 p35 CCM_Layout 1 08/10/2014 12:30 Page 23
PQ Magazine November 2014
PQ careers
The workplace: getting to partner level
Karen Young discusses the findings of
the Hays DNA of a Partner report
All young accountants enter the profession with the
aspiration of becoming qualified, but perhaps a
smaller number set out with the aspiration of
becoming a future partner in a professional services
firm. So what does making partner really mean?
Partnership in an accountancy firm is a highly varied
role, which offers financial reward, the buzz of being
co-owner of a business and the chance to help other
businesses perform well and, of course, to nurture
students through their own early steps in a finance
career. While making partner is a badge of
achievement, partnerships can often seem
impenetrable to new entrants to the profession, and
at Hays we are keen to help
to decipher what it means to
make partner and just what
makes someone successful in
this career path.
We surveyed almost 400
partners in UK accountancy
practices to help us identify
the key characteristics that
accountancy professionals
require to make partner.
While the skills and
backgrounds of partners vary,
our report found that ACA, or
its Scottish equivalent the CA,
is by far the most commonly held qualification,
followed by CTA and ACCA.
Our research found that 59% of partners placed
being commercially aware in their top three tips for
the next generation of partners. The accounting
marketplace is competitive, so partners are acutely
aware of the importance of being able to generate
fees through advisory work. Although technical
knowledge is very important in order to become a
partner, PQs should also have exposure to other
areas of the business such as HR and compliance,
and gain a wider knowledge of these areas as early
as possible as partners often need to work with other
business functions.
PQs wanting to become partners should develop
their people skills throughout their career to become
a successful leader. Having a can-do attitude is rated
by partners as a top characteristic for those wanting
to climb the career ladder to partner.
Our research reveals that some accountants are
likely to reach partner level more quickly if they
trained with an independent regional firm rather than
the Big 4. However, it is important to note that while
it may take longer to make partner in a Big 4 firm,
there may be more financial rewards and
professional career development in niche areas
available in the longer term in larger firms.
General practice appears to offer a quicker route
to partnership than specialising in audit, tax or
advisory work, since 79% of participants in general
practice had between five
and 10 years PQE when
they became partner
compared with their peers
in audit, tax and advisory
where 58%, 42% and
51% respectively had up
to 10 years PQE.
Regardless of business
line, we expect to see a
faster track to partnership
for individuals with proven
business development
skills and a commercial
outlook. Aspiring partners
should focus on building a portfolio of skills in these
areas early in their career.
This insight and advice from those at the top
highlights that decisions made during the early
stages of your career have a direct impact on the
senior roles available later on. This is why it is crucial
for those aiming high to have a career map to ensure
they stay on track by gaining the relevant skills and
experience needed.
To read the Hays DNA of a Partner report visit
www.hays.co.uk/dna-of-a-partner
Karen Young is a Director at Hays Accountancy &
Finance
36
The PQ Book Club
EVERY MONTH WE REVIEW THE
BOOKS YOU SHOULD BE READING
Know the City by Christopher Stoakes
(Christopher Stoakes Ltd, 12.95)
This updating of Stoakes very popular
All You Need to Know About the City
could be subtitled The City Made
Simple. It offers a comprehensive
guide to London in 13 chapters that
provide clear, concise explanations of
the various elements that together
constitute the financial markets.
So you dont know what a Bill of
Lading is, or
how arbitrage
works in the
currency
markets? Or
understand what
an ominous
sounding Drop-
Dead Date is?
You will if you
read this book!
Chapters also
include Stock (Equity) Markets,
Securitisation, Derivatives and
Markets, Money and Models.
Developing markets incuding the
BRICs are explored, as are
international financial centres.
Stoakes also tackles the recent
banking and eurozone crises; indeed,
the chapter entitled The Banking
Market will provide all PQs with
valuable and in-depth knowledge that
will stand them in good stead.
Stoakes prose is easy to read; you
can dip in and out of this book and
learn something new every time.
PQ rating: 4.5/5 Indispensable for
those planning a career in the City,
this guide will give you insight and
knowledge that will impress the boss.
Give us a smile
The picture you use on social
media could be the key to your future.
Research by the University of York
found people will look at a picture of
your face on social media and almost
immediately judge if you are friendly,
trustworthy or competent. Even though
the researchers say it is not clear how
accurate these impressions are they
can influence subsequent behaviour.
Privacy versus job security
Nearly a third of people would be
happy for their boss to have access to
their personal data, such as social
media profiles, in exchange for a better
work deal. A PwC report, The future of
work: A journey to 2022, reveals that
the type of data profiling used by
retailers and advertisers could soon
become commonplace in the office.
In brief
ICAEW Christiana Panteli, 23, is an Associate (Assurance & Advisory), based in Nicosia.
She has a degree in Public and Busines Administration Finance, and won an ICAEW
award at the Annual International Order of Merit in the Professional Stage exam 2013
Life at PwC Cyprus
What time does your alarm
clock go off on a working
day? 7:15.
Whats the first thing you do
when you get to your desk?
Open my laptop.
Whats on your desk? My
laptop, stationery, two trays and
my files.
Whats the best thing about
where you work? The friendly
work environment.
Wheres your favourite place
to go for lunch? TGI Fridays.
What (or who) can you see
when you sit at your desk?
The secretary and my colleague
Zoe.
Which websites are your
favourites and why? National
Geographic
Which websites do you use
for work? Oanda, Factiva,
Google
translate
and PwC
the portal.
How many
hours a
week do
you spend
in meetings? Four hours.
What time do you leave the
office? 6pm.
How do you relax? Listening to
music and walking.
Whats your favourite tipple?
A margarita.
How often do you take work
home with you? Twice a month.
What is your favourite TV
show? Friends.
Summer or winter?
Winter.
Pub or club? Pub.
Who is your hero?
Michael Schumacher.
If you had a time
machine, where
would you go?
Florence in the Renaissance era,
to meet Leonardo Da Vinci.
If you hadnt chosen
accountancy, where might
you be right now? Working with
finance and advisory projects,
such as business valuation.
pq nov 14 p36_pq oct07-p31 08/10/2014 09:41 Page 31
020 8408 9999
www.walkerdendle.co.uk
Find us on Facebook, Twitter and LinkedIn
SUITABILITY
Walker Dendle Financial Recruitment has become established as a leading
recruiter of professional permanent and temporary nance staff in Surrey and
the surrounding area for over 12 years, lling a diverse range of part qualied
nance and accounting roles across nancial and management accountants to
commercial accounting and analysis to nance business partnering.
We continually focus on adapting and rening our service to suit you, offering sound and
knowledge based careers advice to part qualieds seeking their next, all-important job move.
For more information about the range of career openings available though Walker Dendle
Financial Recruitment, please contact:
Permanent Division perms@walkerdendle.co.uk
Temporary & Contract Division temps@walkerdendle.co.uk
Walker Dendle Financial Recruitment
Swan House, 51 High Street, Kingston Surrey KT1 1LQ
AT WALKER DENDLE WE HAVE MANY DIFFERENT ABILITIES.
THE SUITABILITY OF OUR JOBS SETS US APART.
037_PQ 1114_PQ 1209 000 03/10/2014 14:21 Page 7
www.howett-thorpe.co.uk
Farnham ofce: 01252 718777
farnham@howett-thorpe.co.uk

Weybridge ofce: 01932 901900
weybridge@howett-thorpe.co.uk
aim your career sights higher
www.howett-thorpe.co.uk
038_PQ 1114v2_PQ 1209 000 08/10/2014 15:03 Page 7
NOT SURE WHERE YOURE
HEADING WITH YOUR JOB?
Need a change?
Contact your nearest Reed Accountancy branch.
Well help guide you in the right direction.
reedglobal.com/accountancyjobs
Reed Specialist Recruitment Reed Accountancy
@ReedAccountancy
039_PQ 1114_PQ 1209 000 06/10/2014 14:53 Page 7
I need to find
pqjobs.co.uk now!
PQjobspqjobs.co.uk
Your jobs board
040_PQ 1114v2_PQ 1209 000 08/10/2014 15:03 Page 7
WERE BIG IN FINANCE
YOU CAN BE TOO
Copyright Hays Specialist Recruitment Limited 2014. HAYS, the Corporate and Sector H devices, Recruiting experts worldwide, the HAYS Recruiting experts worldwide logo and Powering the World of Work
are trade marks of Hays plc. The Corporate and Sector H devices are original designs protected by registration in many countries. All rights are reserved.
hays.co.uk/pq
Hays specialises in part-qualied recruitment, working with leading organisations
to ofer you access to a wide range of jobs across the UK. With many years
experience of recruiting for accountancy and nance jobs, we currently have
over 700 vacancies for part qualied accountants in the commercial and public
sectors as well as professional accountancy practices.
If you are studying towards your professional qualications, whether that be
management, nancial or commercial accounting or tax, we can nd you the
most suitable jobs to advance your career. So whether youre an enterprising
management accountant, an expert nancial analyst or an aspiring tax
professional, we can help you to achieve your ambitions.
To nd out about our latest roles, or discuss the opportunities
we can ofer you, call a recruiting expert on 020 3465 0018.
About you
Title......................................................
First name............................................
Surname..............................................
Company name ..................................
............................................................
Department..........................................
Full postal address Home Work
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Study please tick a box in 1A or 1B
1A Please indicate accountancy body you belong to and tick the box of the next set of exams
you are hoping to sit
ACCA CAT F1-3 F4-F9 P Papers
CIMA Certificate Operations Management Strategic T4
CIPFA Certificate Diploma Strategic
ICAEW CFAB Professional Advanced
ICAS TC TPS TPE
Tax ATT CTA
AAT Level 2 Level 3 Level 4 Member
1B Studying for an accountancy degree/MBA/MSc Year 1 Year 2 Year 3
Do you work in accountancy and finance Yes No
If yes, what is your job title? ..........................................................................................................
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The easiest way to get your free monthly copy is to go online at
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041_PQ 1114_PQ 1209 000 03/10/2014 10:30 Page 7
PQ Magazine November 2014
PQ got a story, funny or serious, you want to share? Email graham@pqaccountant.com
W E V E G O T T H E L O T

Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway entries must be
received by Friday 14 November. The main draw will take place on Friday 21 November 2014.
TO ENTER THESE GIVEAWAYS EMAIL GRAHAM@PQACCOUNTANT.COM
42
Calculate this
PQ magazine has joined forces with Canon to offer five
lucky readers the chance to get their hands on a limited
edition calaculator produced to celebrate 50 years of
the Canon Calculator. As well as a wonderful KS-50TH
calculator this giveaway includes a small Canon history
guide. With its large LCD display and built-in tax
functions your calculator will be the envy of your work
colleagues.
Send your details (thats name and address) to
graham@pqaccountant.com and five lucky PQ readers
will receive a wonderful calculator. Use the header
Canon calculator please.
Your PQ revision kit
PQ magazine has got together with
our friends at First Intuition to offer 10
lucky readers our twist on the
accountancy student mini-revision kit.
You get a PQ mug (for all that coffee)
and a First Intuition tabs and post-it
kit. We will also throw in a couple of
marker pens and some sweets!
All you need to do is send your name
and address to graham@pqaccountant.com heading up
your email revision kit and we will do the rest.
Remember, there are 10 prizes to giveaway here!
YOUR CASUAL
SMART SUIT
You never need to worry about looking
uncool running for the bus again! PQ
recently read about a mans suit that is
so comfortable you can jog in it! The new
Multi Purpose Suit is made in Italy from
fine merino wool. Its inventor is Carlo
Brandelli, creative director of the Saville
Row tailor Kilgour. So the idea is you can
look smart and feel casual and relaxed all
at the same time. And the downside? It
costs a mere 2,400 to look that casual.
CUP OF JOE PLEASE,
AND A PAY RISE
Put down that cup tea and ask for a hot cup of
Joe if you want to perk up your payslip.
It appears that coffee drinkers earn on average
2,000 a year more than tea drinkers and they
tend to be in management positions! So which
survey came up with that solid fact? It was
Nestl, to mark international coffee day!
SPOT
THE BILL
International
gaming group
Sportech recently
had to find 93m
in pocket change
after HMRC won
its appeal against
an overpayment of
VAT. Five years ago
the football-
pools-to-
horse-race
betting firm
tried to
claim VAT
back on its
Spot the
Ball game.
Sportech
claimed it was a
game of chance
rather than skill,
so VAT was not
payable. The
Upper Tier
Tribunal disagreed
and sided with
HMRC. There is a
chance for an
appeal.
MAN WITH
CONNECTIONS
The 109th ACCA AGM started this year
with a lovely little video on connections.
And who did they use as one of the stars?
The one and only Tom Clendon former
PQ Lecturer of the Year! We discover he has been a member
since 1989 and even has a tutor profile on ACCAglobal.
YOU FILTHY BRITS
Imperial College physics professor Joao
Magueijo recently hit the news over his
recent tome In Bifes Mal Passados
(Undercooked Beef). Written in his
native Portuguese, he ridicules British
life, from eating habits and personal
hygiene to sexual behaviour. But let the
author explain himself: The thesis is
that if Dylan Thomas had been born in
Venice hed become an accountant.
Part of the creativity of this country
results from her ugliness and hang-
ups. Er, thanks for that, professor.
WHY ACCOUNTANCY?
No one can claim accountant
and sports promoter Barry
Hearne hasnt had an
interesting career. So why did
the ex-owner of Leyton Orient go into
accountancy? In an interview in The Sun
he revealed he trained to be an accountant
after his mother told him when he was 12
that the man whose home she cleaned
said accountants were never poor.
MONEY ALL DAY
Rapping chartered accountant Ramond
Chan is definitely winning the best
Accounting Song on You Tube. His song
The Accounting Song (Money all Day)
includes the lyrics: Ive been Big 4
pimping up at PwC / but have homies at
EY, Deloitte and KPMG.
And there is: I can be your super hero
meeting standards of
recording. Or looks
double declining,
debit cash credit
life. But then
Ramond (pictured)
was born to Excel!
Heres some more
great views:
Views 292,675: Colin Dodds Debt
Credit Theory (Accounting Rap Song).
Fun way to learn debt on the left, credit
on the right.
Views 89,011: Deloitte Lipdub 2010.
Nice Mini guys! At 7.18 minutes it is a bit
long though.
Views 74,451: KPMG Accountants
Want It That Way. Slick moves but
cheesey!
Views 48,143: Accountants Song. You
need a lucky tie and crunch the
numbers.
Views 21,293: Im Accounting
NizzyNate Millyunz. Yeh, hes
accounting.
Views 15,780: The Accountant Song
Todd Chapplle. He likes his job a lot.
So listen up and pick a favourite!
FACE VALUE BEAUTY One qualified
ICAEW, Zoe Wong, has found a new
income as a LOreal blogger! Wong
features in the new Fibrology hair advert
you can find out all about her hair at
www.facevaluebeautyblog.co.uk.
pq nov 14 p42_pq aug 13 fun 08/10/2014 09:42 Page 42
MA N C H E S T E R
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your accountancy knowledge with
exam technique -
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bookings of 4 revision papers.
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043_PQ 1114_PQ 1209 000 03/10/2014 14:23 Page 7
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044_PQ 1114_PQ 1209 000 03/10/2014 14:24 Page 7