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READER SURVEY TELL US YOUR THOUGHTS BITS AND BYTES KEEPING UP TO DATE

THE ART OF NEGOTIATION

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EDITORS CHOICE
Welcome to the latest issue of Student Accountant. Were launching our 2011 reader survey in this issue. Help us to shape the future of the Student Accountant suite of products by answering the short survey. You can also be in with a chance of winning one of 10 distance learning packages courtesy of BPP Business School who are supporting our survey. We need your survey responses by 29 May 2011. Visit page 24 to access the survey. Our careers focused features include a look at the art of negotiation, and how understanding technology is key to advancing in the workplace. Technical content includes an important article about Foundations in Accountancy, using the work of an auditors expert relevant to CAT Paper 8 students, and two articles focusing on exam technique which are relevant to Professional level students. Access the technical content on page 28. Were always keen to have your stories in the magazine. Were particularly on the lookout for your ideas on how to get the practical experience requirement for ACCA membership and also your jobhunting tips. If you have a story to share with your fellow readers, email us at studentaccountant@accaglobal.com and you could be featured in the magazine. I hope you enjoy this issue. If you have any feedback about the magazine please email us at studentaccountant@accaglobal.com Victoria Morgan Editor, Student Accountant magazine

4 CONTENTS
DISPATCH
06 GRAPHIC NEWS Finance function costs climb, women in top roles, and the number of billionaries in the world continues to grow 08 NEWS ROUNDUP Global finance and accounting news

FEATURE
20 THE ART OF NEGOTIATION We bring you a guide to the needs and benefits of negotiating and how to do it successfully. Effective use will be a benefit in your social life as much as at work. Alex Miller reports 22 BITS AND BYTES Technology skills will be vital in your career as an accountant, whether you aspire to work in the technology industry, advise clients on its use, or make the best use of it yourself, as Lesley Meall discovers when she talks bits and bytes with ACCA trainees and members, and those responsible for their recruitment and training 24 2011 READER SURVEY We want to know what you think of the range of Student Accountant products that we produce, how you access the information, and what you would like to see in the future

LEARNING CENTRE
12 FROM PAKISTAN TO UAE Awais Jahangir 14 MOVING ON Your job role changes and moves 16 PER SUPPORT Online links 17 TALKING TECHNOLOGY Tablet devices 18 STUDENT IN 60 SECONDS Katie Pearce, UK

BALANCING ACT

How do you manage the work/study balance? Let us know your top tips and you could be in a forthcoming SA feature. Email us at studentaccountant@accaglobal.com

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Welcome to ISSUE 09/2011 of STUDENT ACCOUNTANT

Please email studentaccountant@accaglobal.com with your feedback on this issue
Mark Gold President Dean Westcott Deputy President Barry Cooper Vice President

TECHNICAL
27 TECHNICAL ARTICLES CHANGES TO THE CAT QUALIFICATION WITH THE INTRODUCTION OF FOUNDATIONS IN ACCOUNTANCY Relevant to CAT Qualification Papers 14 USING THE WORK OF AN AUDITORS EXPERT Relevant to CAT Qualification Paper 8 PASSING THE PROFESSIONAL LEVEL PAPERS Relevant to ACCA Qualification Papers P1, P3, P4, P5, P6 and P7 HOW TO TACKLE EXAMS: A MARKERS PERSPECTIVE Relevant to ACCA Qualification Papers P1, P3, P4, P5, P6 and P7 THE EXPORT INCENTIVES REGIME IN MALAYSIA Relevant to ACCA Qualification Paper P6 (MYS) Online study resources: www.accaglobal.com/ students/cat www.accaglobal.com/ students/acca

Helen Brand Chief Executive EDITORIAL TEAM Victoria Morgan Editor Glen Patterson Deputy Editor Jackie Dollar Art Editor Richard Gooding Designer WWW.ACCAGLOBAL.COM Jamie Ambler Digital Editor 29 Lincolns Inn Fields London WC2A 3EE United Kingdom tel: +44 (0)20 7059 5700 email: info@accaglobal.com www.accaglobal.com PUBLISHING AND ADVERTISING Adam Williams Head of Publishing and Commercial Anthony Kay Production Manager For all advertising-related matters please contact Lisa Peake: tel: +44 (0)20 7902 1224 email: lisa@educate-direct.com
Published by the Certified Accountants Educational Trust in cooperation with ACCA. The Council of ACCA and the publishers do not guarantee the accuracy of statements made by contributors or advertisers, or accept any responsibility for any statement which they may make in this publication. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without prior written permission of the publishers. CAET 2011 ISSN 1473-0979

RESOURCES
31 NOTICEBOARD ESSENTIAL INFORMATION ABOUT ACCA AND YOUR STUDIES ACCA Connect contact details, subscription and exam fees, June 2011 exam timetable, exam results, supervisor announcements and exam regulations

READER SURVEY PAGE 24

WHATS YOUR STORY?

Why did you want to become an accountant, and what do you hope to be in the future? Email your story to us at studentaccountant@accaglobal.com

6 DISPATCH
FINANCE FUNCTION COSTS CLIMB
PwCs Finance Benchmark Study 2011 shows that after a sharp fall in the cost of the finance department as a percentage of revenue at 130 of the top 200 FTSE companies at the start of the financial crisis, the trend is heading back up.

1.35%
2008

0.82%
2009

0.93%
2010

GRAPHIC NEWS

BOTSWANA 32%

THAILAND 45%

GERMANY 11%

IRELAND 19%

POLAND 31%

RUSSIA 36%

UK 23%

WOMEN IN TOP ROLES

Research from the 2011 Grant Thornton International Business Report reveals the UK is ranked 23rd globally for senior positions held by women, with 23%. Thailand boasts the greatest percentage (45%), while countries with the lowest rates include India (9%) and Japan (8%). Globally, women hold 20% of senior positions.

413

US

32

UK

Mainland China

115

PLANET BILLIONAIRE

1,210
52
Germany Russia

GLOBAL TOTAL

The number of billionaires in the world continues to grow, according to Forbes, with the US, as ever, home to the lions share. Most of the BRIC nations are also comfortably ahead of the UKs 32-strong billionaires club, with burgeoning mainland Chinas total of 115 not even including the 36 billionaires to be found in Hong Kong.

101

55

India

UAE 8%

US 15%

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8 DISPATCH
01 FRC GOING CONCERN ENQUIRY

NEWS ROUNDUP

The UKs Financial Reporting Council (FRC) has launched an inquiry into going concern assessments and liquidity risks. The inquiry will consider the experience of auditors and companies that have addressed these issues during the recession. Recommendations will suggest measures to improve the reporting regime and related guidance to auditors and companies. The panel of inquiry will be led by former KPMG chairman Lord Sharman. FRC chair Baroness Hogg said: In launching this inquiry, our aim is to ensure the lessons of the recent past are captured, our guidance developed as necessary, and best practice in dealing with a range of related issues shared.

GDP

02 AUDITOR DERELICTION OF DUTY

GDP EXPANSION SPEEDING UP

Auditors made the financial crisis worse by failing to warn regulators of the severity of problems at banking clients, concludes the House of Lords Economic Affairs Committees inquiry into the audit profession. The failure by auditors and regulators to work together amounted to a dereliction of duty, claimed the peers. The committee also concluded that audit standards are slipping because of the introduction of International Financial Reporting Standards (IFRS). Lack of competition in the audit of major banks should be considered by the Office of Fair Trading, the inquiry suggested. ACCA welcomed many of the committees findings, but rejected the criticism of IFRS. It is pleasing to see the Lords have recommended that audit should expand in scope to provide broader, more uptodate assurance on matters such as risk management, the business

Optimism is building for Singapores economic growth this year, with analysts saying that gross domestic product (GDP) will probably expand faster than initially estimated. Singapores economy is now expected to grow by 5.7% this year, up from the 5.1% forecast in December, according to a quarterly survey by the Monetary Authority of Singapore (MAS). For the first quarter of this year, GDP is expected to expand by 5.9%, up from the 4.9% previously forecast. model and the business review, said ACCA chief executive Helen Brand.

04 LET THE JOB HUNT BEGIN

03 BRIBERY ACT GUIDANCE FOR SMEs

The UKs Bribery Act is to come into force on 1 July. Guidance to businesses on compliance with the law has now been published. The Ministry of Justice (MoJ) has also published case studies on facilitation payments, entertaining and joint ventures. Quickstart guidance for small firms is published on the MoJs website, www.justice.gov.uk/ guidance/bribery.htm.

LehmanBrown International Accountants, ACCA Platinum Approved Employer, is again a sponsor of ACCA Chinas Job Hunting Competition 2011. The firm sees sponsorship as an excellent opportunity to engage with top university students, both in mainland China and Hong Kong. The nationwide competition is held by ACCA in Beijing, Shanghai, Chengdu, Guangzhou and Hong Kong. In 2010, more than 5,500 students from these five regions registered, covering nearly all the major universities in China.

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10 DISPATCH
05 SINGAPORE MINISTER TO CHAIR IMFC

NEWS ROUNDUP

Singapores finance minister Tharman Shanmugaratnam is to chair the International Monetary Fund Committee. Shanmugaratnam has accepted the position for a term of up to three years. He replaces Youssef BoutrosGhali, who stepped down after he was replaced as Egyptian finance minister in a cabinet reshuffle amid the political unrest. Shanmugaratnams broad experience, deep knowledge of economic and financial issues, and active engagement with global policy makers would make him highly valuable to the committee, the IMF said in a statement.

sustainably. The framework draws on best practice from across the world. Roger Tabor, chair of the PAIB Committee, said: Accountants need to be prepared to take on new and expanded roles, activities and skills as they support their organisations in charting a more sustainable path.

08 EUROPE IN FAVOUR OF TOBIN TAX

06 MALAYSIAN FINANCE BLUEPRINT IMMINENT

Bank Negara Malaysia (BNM) will unveil the financial sector blueprint this June, setting out a roadmap for the next decade. The blueprint is seen as a continuation of the Financial Sector Masterplan, a decadelong strategy that was launched in 2001. Central bank governor Dr Zeti Akhtar Aziz said the blueprint would build on the strong foundations of the countrys financial system, while further promoting financial inclusion and regional financial integration.

The European Parliament has voted to support the Tobin Tax a surcharge on every financial transaction at a rate of 0.05%. This could raise up to 200bn a year. When proposed by economist James Tobin, the idea was to provide a means of addressing global inequality and supporting infrastructure improvements and health and social care in developing nations. The vote is not binding on the European Commission and the tax is opposed by the International Monetary Fund and several EU governments.

LONDON REMAINS FINANCE HUB

09 TWEEDIE URGES IFRS ADOPTION

07 IFACS FOCUS ON SUSTAINABILITY

The International Federation of Accountants (IFACs) Professional Accountants in Business (PAIB) Committee has updated its sustainability framework to ensure there is an integrated approach to business reporting and highlighting the central role played by accountants in supporting their organisations to operate

Outgoing International Accounting Standards Board (IASB) chair Sir David Tweedie has intervened in the row in the US over the adoption of IFRS, urging its adoption in full. It is the unambiguous commitment to IFRS in 2011 that is essential, he said. The SEC has already indicated that the earliest implementation date when IFRS would be required for the largest US public corporations will not come until 2015 or 2016 at the earliest. Implementation for smaller companies could come later. He also said: Delaying the adoption of IFRS imposes unnecessary costs and risks on US companies.

London is still the worlds pre-eminent financial centre, according to the latest rankings in the Global Financial Centres Index (GFCI). New York is second, followed by Hong Kong and Singapore, with Shanghai and Tokyo joint fifth. Frankfurt, the second most important financial centre in the EU, is a mere 14th in the rankings. The results show that Shanghai is becoming more competitive, while Singapore has become less so. Sir Michael Snyder, chairman of the UKs Professional and Business Services Group, said: While GFCI 9 shows London at the top of the index uncertainty over tax and regulation is a major concern to financial institutions in London or those contemplating being here.