Professional Documents
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PQ December
PQ December
www.pqmagazine.co.uk / www.pqjobs.co.uk
December 2015
LECTURERS
CONFERENCE
AWARDS
MATTER
HOT ACCA
EXAM TIPS
SPECIAL RELATIONSHIP
MOVES TO NEXT LEVEL
PQ magazine
EXCLUSIVE
After more than three years
of courting, CIMA and the
AICPA have announced they
are ready to take their
relationship to the next
stage!
The two bodies started their joint
venture way back in 2012, and
when they came together the pair
promised to keep things under
constant review. It would seem that
both parties are still talking and now
want to take the partnership further.
In an exclusive interview with PQ
magazine, CIMAs MD Andrew
Harding explained that in order to
take this next step with the
American Institute of CPAs it is
proposing the creation of a new
association.
Together, that means an
association representing 600,000
Jakub Stezaly
Kaplan student
Buy now
Pay 2016
www.kaplanfinancial.co.uk/accamarch
ACCA early booking payment plan terms & conditions apply. Visit website for details.
comment PQ
CONTENTS
News
08CIMA OT change Institute set
to introduce scaled scores
10ICAEW professional level
Pass rates hold up well
12ACCA exams All the results
from the first September sitting
Features, etc
06Mind your Ps&Qs A heartfelt
plea to the ACCA; trouble with
getting qualified; and the very
best of social media
14AAT case study Meet an
English international cricketer
who is studying with the AAT
December 2015
28Lets get technical Chattels,
32,233
Daniel Hopkins
Kaplan AAT student
www.kaplanfinancial.co.uk/premier
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IXOOOHYHORQOLQHeGLVFRXQWLI\RXSXUFKDVHYLDDQRWKHUFKDQQHO6HHZHEVLWHIRUGHWDLOV
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email graham@pqaccountant.com
My plea to the ACCA
The writer of the star letter each month wins a fantastic I PQ mug!
I am writing to express my
dissatisfaction with my ACCA
results is there is anyone who
can help? I have done everything in
the book to pass my exams. I took
three weeks out of my holidays as
always, practised more past papers
than before, yet nothing seems to
work for me. I have two papers left,
but it feels like I am stuck at a
crossroads and dont know where
to turn. My marks for P7 and P5
have been 46% and 44%, and
44% and 30%. In my last exam I
sat just P7 and received 46%.
Does anyone have any
constructive advice that will help
me?
A worried student, by email
I am a PQ working in budgetary
control for a local NHS Trust and
recently won some e-books from
EW Publishing through PQ
magazine. Thank you all for that.
The magazine is so user-friendly
and informative. All the articles are
digestible. Since I study P2 I track
Martin Jones articles on IAS and
IFRSs. Ive got three exams to go
P2, P6 and P7. Keep up the good
work.
Patrick Gallagher, by email
The editor says: Thanks for that,
Patrick. Just to give you and other
readers the heads up, we have a
piece from Martin in the next issue.
ACCA
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PQ news
ROBERT
BRUCE
The long
and the
short of
annual
reports
Its that time of year, when surveys of
published accounts are produced and
their findings dissected. The old
chestnuts have been discussed once
more. The length of annual reports is
still growing, despite valiant efforts to
cut stuff out rather than pile it in.
Risk-averse lawyers are the main
reason for clutter in reports; second
to them come regulators. Not because
they keep asking for more, but
because preparers of accounts are
terrified of ditching something and
then getting a dressing-down from the
regulators for having done so.
Not that some of this is not richly
deserved. A report from the Financial
Reporting Review Panel lambasts
companies anonymously (shame!) for
putting in accounting policies for
items or transactions that were
immaterial, no longer relevant or nonexistent. Quite hard, that last one.
They had a go at companies that had
put in accounting policies for hedges
that the companies did not enter into
then criticised firms that included the
translation of subsidiaries in foreign
currency where none existed. It is no
wonder that some investors have said
that they really understand little of the
highly technical stuff that financial
sector companies tend to stuff their
massive annual reports with.
Their suggestion was that firms
could happily print this stuff, but only
if they also provided one paragraph
up front that explained precisely what
it was all about. We are, sadly, back
to the old clich of someone
apologising for writing such a long
letter because they had not had the
time to write a short one.
n Robert Bruce is an
award-winning writer on
accountancy for The Times
CIMA INTRODUCES
OT SCALED SCORES
at operational level).
The exams director felt that new
research showed that there wasnt
too much time pressure in the
exams. Overall, 3.7% of OT exams
sat have more than one item
unanswered due to time constraints
(see page 25 for the percentages).
Another big announcement was
the change in calculator policy (see
page 25). There is not going to be a
ban on students taking their own
approved non-programmable
calculators into the Pearson Vue
assessment centres. At one time
there was a worry that students
would be forced to use the
onscreen version.
See pages 25 and 26 for more
news from the recent conference.
Rise in students
over-paying on
student loans
New figures from the Student
Loans Company show there has
been a 10% year-on-year rise in
student loan over-repayments,
leaving more than 70,000
borrowers out of pocket by on
average 580. Figures obtained
via a Freedom of Information
request by accountancy firm RSM
show that borrowers over-repaid
more than 45.4m on income
contingent repayment (ICR)
student loans through their salary
deductions in 2013-14 a 10%
rise over the 41.4m recorded in
the previous year.
RSMs Lesley Fidler said: It
beggars belief that HMRC and the
Student Loan Company cant
develop a more efficient system
that takes the right amount of
money at the right time from
people wanting to repay their
student loans. Fidler felt for
some people monthly loan
deductions are a significant
proportion of their income, and
these overpayments could cause
real financial hardship.
The latest figures also show the
problem is getting worse rather
than better, she pointed out.
In brief
Stressed out
It seems accountants are
more vulnerable to emotional
problems than any other
profession. A study by AXA PPP
Healthcare found a third of
accountants had suffered
from a mental illness. A
sixth of chartered
accountants have taken
time off because of stress
and half said they felt they
were not supported to
manage their workload, with many
feeling isolated.
8
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PQ news
PREM
SIKKA
What
price an
independent
audit?
After the Enron scandal auditors came
under scrutiny for conflict of interests
arising out of the provision of
consultancy services to audit clients.
The increased fees dependency exerts
pressures to let the lying dogs sleep. It
creates the perception that auditors
are not sceptical enough and have
compromised their independence.
In the US, the Sarbanes-Oxley Act
2002 restricted the sale of some
consultancy services to audit clients.
The Big 4 mediated threats of further
action by divesting their consultancy
arms. Questions about conflict of
interests also arose after the 2007-08
banking crash. Banning the sale of
non-auditing services to audit clients
was resisted with claims that these
services were of lesser importance.
It has all changed again. The firms
have rebuilt their consultancy arms
and are pursuing new business. They
oppose a complete ban on the sale of
consultancy to audit clients and claim
that it does not impair auditor
independence. Little evidence is
provided to support such claims. Audit
working papers would shed some light
on auditor scepticism, but they are not
publicly available. If the provision of
other services does not impair auditor
independence then there is no reason
to restrict the delivery of audits to
accountancy firms. Tesco, Marks &
Spencer and others could employ
accountants and enter the auditing
market. The pursuit of consultancy
income is likely to be accompanied by
calls to end accountants monopoly of
the external audit function.
n Prem Sikka is professor
of accountancy at the
University of Essex
10
Production/Manufacturing
For 200 years, James Purdey &
Sons has been synonymous with
the unrivalled craftsmanship of
the worlds best shotguns and
rifles. You must be actively
studying towards ACCA or CIMA
qualification (must be at least
part qualified). You will also
need a minimum three years in
a manufacturing/factory
environment. The salary is
37,000-40,000 and the role
is based in Hammersmith.
Top jobs like these dont come
around every day! So go on to
www.pqjobs.co.uk for all the
information you need to apply.
Blooming in
Bloomsbury
JOB OF
THE MONTH
PQ news
CARL
LYGO
Devastating
impact of
the falling
price of oil
The impact of lower oil prices on the
world economy was brought home to
me recently when launching a new
initiative with the Malaysian Institute
of Accountants. An austerity drive in
Malaysia, brought about by oil price
falls, has led to a freeze in the intake
of public servants. The Malaysian
Employers Federation (MEF) has
expressed grave concern about the
plight of graduates entering the jobs
market; there are at least 200,000
who are unemployed and the number
is expected to rise. The decision to
freeze public servant openings means
that 15,000 fewer students will leave
university with a public sector job.
Members of the MEF have also cut
a further 10,000 graduate openings in
the first half of 2015. A big initiative
in the area is the development of the
ASEAN Economic Region, which
would result in free labour movement
between ASEAN nations. This is seen
as a major challenge and opportunity
for local graduates. At the same time,
the government in Malaysia estimates
an additional 60,000 accountants are
going to be needed for the local
economy between now and 2020. Low
levels of English language proficiency
were said to be holding back many
graduates and leading bodies such as
the Malaysian Professional
Accountancy Centres have responded
by introducing English language
courses to help graduates undertaking
professional exams. While Malaysia
rebalances its economy towards the
private sector, it hopes for movement
in world oil prices.
n Professor Carl Lygo is
chief executive of BPP
September sitting
results are mixed
The first-ever September ACCA
exams saw a mixed bag of pass
rates, but it is way too soon to see
any real trends developing.
What is clear is that the P7 and
F9 exam pass rates slumped in
September to 29% and 35%
respectively, when compared with
the June stats (see table).
Meanwhile, the P6 pass rate shot
up by 11 percentage points and F7
by four percentage points. The pass
rates of P1, P2 and P3 also dipped
slightly, and students and tutors
need to keep an eye on these pass
rates over coming sittings.
Overall, when compared with the
summer exam sitting five paper
pass rates went up, six went down,
and one remained unchanged.
Some 40,704 students across 15
countries took the opportunity to use
FRC acts on
complaints
PwC and one of its former
accountants, Stephen
Harrison, are to be
investigated over their role in
the auditing of social housing maintenance
firm Connaught. The Financial Reporting
Council has also issued a formal complaint
against Stephen Hill, Connaughts group FD,
and David Wells, the deputy FD responsible for
treasury management. The complaint is that
their conduct fell significantly short of the
standards reasonably to be expected of a
member or member firm of the ICAEW. Hill
and Wells have also allegedly breached the
fundamental principles of integrity. Connaught
12
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Playing
professional
cricket is a
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occupation, but if
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PQ Awards 2016
THE CATEGORIES
PQ of the Year
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Accountancy Body of the Year
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Editors Special Award
Online College of the Year NEW
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Who will it be in 2016? Some top names have graced the PQ awards, including (clockwise
from top) Paul The Sinnerman Sinha, who hosted in 2015; Shaun Barry from EastEnders
Williamson; Stephen K Find the Funny Amos; and Richard Donkey Blackwood
Do you know someone who deserves one of our awards? Well get nominating then perhaps its you!
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Awards 2016 PQ
TIME TO INNOVATE
We take a look at last years winner of the Innovation in Accountancy category KPMG and BPP
17
PQ CIMA F1 paper
A NUMBERS GAME
taxation. They should demonstrate an
understanding of the differences between tax
avoidance and tax evasion. PQs will also be
required to produce computations for corporate
income tax as well as for capital tax and should
ensure that they are able to do both.
The syllabus
.
The F1 exam builds on the knowledge acquired
in Certificate level, in particular C02. F1 covers
the regulation and preparation of financial
statements. F1 will provide the competencies
required to produce financial statements for
individual entities and for groups using
appropriate IFRS. This knowledge will be used as
a basis for more complex adjustments and group
structures as you go on to F2. In addition, F1
gives insight into how to effectively manage cash
and working capital, with the final part of the
syllabus focusing on the basic principles of
business taxation and the application of these
principles.
The knowledge you gain in F1 will be
developed further in F2 and F3 and as such you
should ensure you have a good understanding of
all of the areas of the syllabus before moving on.
The syllabus is broken down into four areas:
Regulatory environment for financial
reporting and corporate governance
(10%): This introduces students to the idea of
regulations for financial reporting and requires
students to explain and understand the need for
regulation in financial reporting when dealing
with incorporated entities. Students should be
able to demonstrate an understanding of the
roles and structures of key bodies such as the
IFRS foundation, the IASB, the IFRS Advisory
Council, the IFRS Interpretations Committee and
the IOSCO. This area also incorporates the duties
of the external auditor and the introduction of the
audit report. Students will also need to have a
good grasp of the key principles of corporate
governance and the need for corporate
governance regulation. They will be expected to
understand the approaches to corporate
governance in primary markets around the
world, in particular the US and UK.
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F5
Lifecycle costing with
environmental accounting.
Relevant costing/decision trees.
Budgeting theory/flexed budgets.
Mix and yield/sales mix and
quantity variances.
Divisional performance (ROI, RI).
F6
Q1: Capital gain tax question with
shares including bonus/rights issue
and chattel rules or maybe
corporation tax with rollover and
holdover relief.
Q2: VAT deregistration due date,
surcharges, accounting for VAT, the
annual accounting scheme and
contents of a VAT invoice.
Q3: Inheritance tax including
lifetime gifts into a trust, the
diminution in value principle and
the death estate.
Q4: Property business profits/
losses or maybe a sole trader, with
adjustment of the trading profits
and opening or closing year rules.
Q5: Income tax computing
income tax with employment
income with car benefit, fuel benefit
and accommodation benefit,
interest income/dividend income.
Q6: Calculating corporation tax
possibly including a straddling CAP
or maybe a long period of account
with capital allowances and possibly
adjustment of a trading loss with
loss relief and group relief.
F7
Expect one of the 15 markers to
be on ratios and interpretations with
(possibly) adjustments to be
reflected before a valid comparison.
Expect the big 30-marker and the
15-marker to be on consolidations
and published accounts with
standards.
F8
Ethics, threats to independence.
Confidentiality, when to breach.
Audit risk and response, written
scenario.
Internal controls objectives/
procedures/tests on sales cycle.
Inventory and stocktaking
controls and substantive tests.
Substantive tests on receivables.
Advise company on improving its
governance.
Role/benefits of audit committees.
Roles of internal audit and
comparison with external audit.
Know your ISAs, especially 210,
250, 260, 450, 560, 570, 720.
20
F9
WACC, maybe with capital
structure theory thrown in.
Investment appraisal NPV with
working capital and tax, possibly
also asset replacement.
Risk with forward market hedge
and money market hedge and a bit
of yield curves.
Working capital management with
inventory and cash, overtrading.
Theory questions possibly on
EMH, sources of finance (including
Islamic finance), economics.
P1
Rules vs principles.
Importance of stakeholders.
Internal control disclosure.
Risk diversification.
AAA model.
P2
Q1: There are only three
possibilities: p/l or b/s or cfs, so to
ignore one seems foolish. However,
given there was a p/l in September
it does seem reasonable to focus
less on that. Perhaps 20/40/40.
Q2 & 3: There are subtle
differences between these two. But
essentially both require a discussion
of key FR applied to a scenario.
Expect the usual suspects
goodwill, groups, NCA, revenue,
HFS, EARP, FI and so on.
Q4: Only in the last question does
tipping become meaningful. Here
are some hot current issues:
revenue, financial asset impairment,
equity accounting, changes, SMEs.
P3
Strategic analysis.
Strategic choice and financial
implications of a strategic choice.
Evaluating software and controls
over IT.
Project management.
P4
Investment appraisal using
adjusted present values/net present
values or capital rationing.
Valuation of business using free
cash flows and price-earnings ratio
methods, defensive tactics or cash
offer or share exchange.
Cost of capital using principles of
Modigliani & Miller prepositions or
geared and ungeared betas.
Hedging exchange rate risk using
forward contract, futures contract
and options contract.
Capital reconstruction schemes
designing a capital reconstruction
scheme or assessing the success of
a given scheme.
Real options option to abandon,
expand or delay using the BlackSchole option pricing model.
P5
Balanced scorecard.
Non-financial indicators.
Assessing impact upon
performance management systems.
Value management systems.
Technology and the change of
PM systems.
P6
IHT with the death estate
including BPR and APR and
lifetime gifts into a trust and gifts
with reservation. Domicile including
deemed domicile.
Group question involving losses,
group relief and consortium relief.
Transfer pricing, overseas branch
vs overseas subsidiary.
Partnership with a partner joining/
leaving with opening year rules,
choice of accounting date and
conditions for a change of
accounting date.
Personal pension schemes versus
occupational pension schemes.
First Intuition.
F5
Lifecycle costing.
Environmental accounting.
Limiting factors.
Relevant costing.
Flexed budget and budgeting
discussion.
Divisional performance.
Mix and yield variances.
F6
Employment/self-employment.
PAYE.
Opening years and change of
year-end for sole traders.
Capital allowances.
VAT default surcharge and VAT
invoice content and annual
accounting.
CGT: Entrepreneurs relief,
chattels.
IHT lifetime and death transfers.
F7
Extracts from single company
accounts, including non-current
assets, taxation and IFRS 15.
Interpretation of accounts
including a statement of cash flows.
Consolidated SFP and/or SPL with
associate, PUP and fair value
adjustments.
F8
Ethics.
Audit risk and auditor response
(including ratio calculations).
Internal control deficiencies,
PQ Magazine December 2015
systems.
P6
Business property relief.
Use of second spouse nil rate
band.
Related property.
Groups of companies, trading
and capital losses.
Double tax relief for companies.
De-grouping charges.
Incorporation relief.
Furnished holiday lets.
VAT partial exemption.
Appeals and the four-track
tribunal system.
Benefits in kind or extra salary,
income tax and national insurance
implications.
P7
Business risks in a scenario.
Identifying ethical and other
professional issues in a scenario.
Matters to be considered and
audit evidence for a couple of core
accounting issues.
Money laundering.
Insolvency issues.
BPP.
HEALTH
WARNING
framework, intangible/tangible
assets and impairment, provisions
and contingencies, revenue and
grants, financial instruments
discontinued operations/assets held
for sale or earnings per share.
Q3: could be a single entity or a
consolidation (statement of profit
ort loss and other comprehensive
income and/or statement of
financial position).
Statement of changes in equity,
statement of cash flow extract,
earnings per share calculation or
linked written topic.
Consolidation question with
adjustments, eg fair values,
deferred/contingent consideration,
PUP on inventories/PPE, intragroup
trading and balances, goods/cash
in transit.
F8
Ethical threats and safeguards.
Corporate governance and
internal audit.
Audit planning.
Materiality.
Audit procedures (especially
substantive procedures).
Audit finalisation and audit
reports.
Audit risk.
Internal control and audit
procedures (both substantive
procedures and tests of controls).
F9
Calculations on improvements to
receivables management (eg early
settlement discounts and factoring).
Weighted average cost of capital
calculations (including its
component parts).
Ratio analysis to support
financing decisions.
NPV calculations.
P1
Corporate social responsibility
strategy check out recently
published article.
Ethical and other CSR theories
apply them to the scenarios.
Use of risk and governance
board of directors, remuneration
and reporting.
P2
Preparation statement of financial
position and/or a group statement
of profit of loss and other
comprehensive income or
statement of cash flows including
a foreign subsidiary, discounted
activities, disposals and/or
acquisitions.
Linked accounting adjustment
and social/ethical/moral aspects of
corporate reporting.
Q2 &Q3: deferred tax, foreign
currency transactions, financial
instruments, pensions, share-based
payment, non-current assets
(recognition and/or impairment of
tangible and intangible assets),
PQ ACCA P2
Clare Finch explains how you can pass the P2 Corporate Reporting paper
ICAEW spotlight PQ
Scenario-based exam questions have been gathering pace for two years. Here the ICAEW looks at how this
approach will work with the ACA Certificate Level Principles of Taxation and Management Information modules
23
PQ SLCS pre-seen
THE WODDS
Leading change
The diverse opportunities set out above make
change a distinct possibility. Some proposed
changes could upset existing stakeholders
(hunting and wind farms are controversial
developments) and so the Board may value
advice on how to implement new strategies.
Aside from this the presence of a unionised
workforce, with the power to bring logging activity
to a halt (page 16), means that any significant
changes to working patterns will need to be
introduced with the backing of the union,
probably necessitating some collaborative
negotiations.
Implementing strategy
The diverse revenue streams open to Wodd will
in all likelihood yield differing rates of return. As
a listed company the Board is duty-bound to
maximise returns, making measures such as RI
and ROI relevant. However, for a business so
wedded to sustainability, the broader range of
measures resulting from a Balanced Scorecard
would seem an obvious alternative or
complementary control mechanism.
Role of IS in organisational strategy
There is a conspicuous absence of information
on IT/IS in the pre-seen. This can be interpreted
in two ways.
First, this may be a signal that the examiner
does not view this as an area of great interest for
this case study.
Second, it may be that there will be
opportunities for Wodd to improve its financial
and sustainability efficiency by harnessing
relevant systems, such as environment reporting
software to record and report on relevant factors
such as carbon emissions/capture from different
actives, or tree types. For example, while it grows
quickly and yields the highest investor returns,
does the Sitka spruce have the best overall
ecological impact? PQ
Dave Halford, Strategic Case Study Expert,
BPP
PQ Magazine December 2015
25
JanMay
83%
JanSept
86%
.
Variance
+3%
78%
76%
78%
76%
0%
0%
CIMA said it was satisfied with a E1 pass rate that is over 75% for firsttime sitters. There is one clear area that students are struggling with
managing the finance function. This is, however, just 15% of the syllabus.
But it is one area that your tutors (and you) need to look at more closely.
The worry is that if you dont master this area you might struggle when it
comes up in the case study. The first-time pass rate is higher than the
overall pass rate and it was suggested that old students were not looking
properly at the changes in the syllabus. Managing the finance function is a
new area, introduced in the 2015 syllabus.
P1: pass rates 2015
Overall exam pass rate: % of students who have
passed the exam after one or more attempts
First time pass rate
Total exam pass rate
JanMay
56%
JanSept
62%
.
Variance
+6%
45%
43%
46%
44%
+1%
+1%
With P1 it seems that sitters either know their stuff or dont. The two areas
that have a higher proportion of candidates being not proficient are shortterm decision making and dealing with risk and uncertainty. Much of the
syllabus relating to short-term decision making is from the previous P2
syllabus, so students should ensure they are fully prepared for this section.
F1: pass rates 2015
Overall exam pass rate: % of students who have
passed the exam after one or more attempts
First time pass rate
Total exam pass rate
JanMay
79.9%
JanSept
80.7%
.
Variance
+0.8%
75.2%
73.5%
75.5%
73.8%
+0.3%
+0.3%
CIMA felt there has been fairly consistent student performance across the
entire syllabus. Students who pass have a balanced knowledge of the four
syllabus areas. Those that fail seem to be struggling with financial
accounting and reporting in a big way. This is a core F1 area and will be
where the examiner takes most of the questions. One tip given at the
conference was to focus on the learning outcomes rather than just looking
at the content alone.
Operational case study
Exam session
Industry
February 2015
Bottled water production
May 2015
Bicycle manufacture
August 2015
Supermarkets & food retail
Company
Valley Spring
Batton Bicycles
Merchants
Pass rate
44%
67%
34%
26
February, there were some very good answers, but a significant number of
very poor ones, which pulled down the pass rate.
In February, there was some good application on E1 aspects, especially
market segmentation, quality circles and outsourcing. Students were also
strong on working capital aspects of F1. Students answers were more
limited on the more technical areas, and a lack of P1 and F1 technical
knowledge was evident. There was also evidence of rote learning, too.
For May, there were far fewer really poor answers, which helped pull up
the pass rate. Application on the whole was also much better and there
were more completed answers. Candidates showed they were good at ABC
to the painting process, variance analysis, outsourcing and SLAs, brand
importance and assessment of creditworthiness. That said, there was still a
lack of some technical knowledge, especially F1 accounting issues.
Another criticism was the lack of balanced arguments in answers when
discussing the suitability of a suggestion. CIMA case study students are
generally poor at suggestions of how information presented to them could
be improved.
August saw a disappointing drop in the pass rate. Here the application
to the scenario, in relation to the less technical aspects, was again
reasonably good. The lack of technical knowledge was very poor. There
was also evidence of pre-prepared answers that were not always relevant
or applied. Markers also felt that some sitters are not stating the obvious
and missing easy marks. PQ
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29
PQ ACCA exams
What ACCA
examiners
want
So how do you impress the people that
matter the examiners? Heres what
they thought of your September efforts
straight from the horses mouth
F5
.
Candidates scored better in section A
than section B. The examiner felt the
calculation aspects in section B were also
encouraging, showing that the technical
side of this paper can be overcome with
good preparation and practice. Too many
candidates do not apply the information
given in the scenario to their answers in
the written sections, and instead try to
rely on knowledge alone. The examiner
said that while the size of the F5 syllabus
may be daunting, good exam technique
is just as important as learning the
management accounting methods and
techniques. To this end, candidates must
review past papers to identify the skills
required in applying their knowledge.
F6
.
The examiner was pleased that almost all
candidates attempted all of the questions.
PQs were advised to work through the
specimen paper, past exam papers and
sample questions in the report and to
carefully review how each of the correct
answers were derived.
F9
.
This was an unsatisfactory performance,
said the examiner. It appears too many
sitters were under prepared. PQs who
rely on question spotting will lose out.
Candidates were also told to take greater
care and be more precise in presenting
answers to numerical questions in section
B. Finally, all workings should be shown
and the requirement read more carefully.
P1
.
There is a temptation for candidates to
simply draw on their knowledge rather
than apply this knowledge in their
answers and reproduce remembered
notes, said the examiner. If you take this
approach you are unlikely to be
rewarded.
P2
.
The examiner stressed that this exam
requires a deep understanding and
knowledge of the Conceptual Framework,
30
P3
.
The examiner felt there was
evidence that candidates are
reliant on covering a few key
topics in their preparation,
and then attempt to fit these
topics to the question rather
than provide what the question
actually requires. Time management
remains an issue for some candidates. A
way of resolving this would be to avoid
quoting lengthy detail from the case
study scenario, said the examining team.
Instead, PQs should be focusing their
response to the requirements. Lengthy
explanations of theoretical models also
rarely add value. So it has been ventured
that the time pressure is not caused by
the exam itself, but the result of the
candidates unfocused response.
P4
.
Spending too much time carrying out
relatively simple calculation tasks was a
major reason for candidates performing
less well, according to the examiner. Why
cant students use appropriate rounding
for calculations, for instance? It is also felt
that candidates are not using the reading
time effectively, to plan a strategic
approach to tackling the paper and to
choose the optional questions wisely.
P5
.
The examiners continue to be concerned
by the quality of answers. This has been
the case for the last nine diets of P5!
Students must remember that the
questions here demand that scenarios
are evaluated and assessed rather than
described. The difference is fundamental
and crucial, as analysis involves a study
of applicability rather than a description.
P6
.
The examiner was concerned about the
number of students who made no, or
very little, attempt at Q1 (a) (i). It was
also felt too many poorer performing
candidates dont take time to read the
question carefully and think before they
started to write.
P7
.
A good understanding of both audit and
financial reporting issues is required in
order to perform well in this exam. The
examiner said some weaker students
attempt to present answers in a columnar
format. This typically scores fewer marks,
as more often than not they lack the
depth needed. Candidates are also
writing too little for the marks available
and are failing to develop points beyond
simple identification of the facts given in
the question. PQ
PQ Magazine December 2015
careers PQ
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LEARNING ENVIRONMENT
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Preparing your CV
Reviewing and updating your CV and getting
yourself ready for the interview stage is very
important. Remember, your CV is your sales
pitch to potential employers; you want to stand
out from the competition. Your CV needs to be
up-to-date with your experience, training and
qualifications, and you want to make sure your
previous employment dates are accurate,
explaining any gaps in your employment history.
Always check there are no spelling or grammar
errors although this seems obvious you would
be surprised how many people dont proof read
and you never know if a potential employer will
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You can ask a recruiter to look over your CV
for you, too. That way they can suggest, if
necessary, how to make this the best it can be
before you start searching and sending it to
potential employers. So if you want that new job
in the New Year get prepared now. Be ready to
take 2016 head on; take the next steps to get
the role you want. PQ
For more information and access to job
opportunities visit www.hays.co.uk/accountancy.
Karen Young, Director, Hays Accountancy
and Finance
31
careers PQ
YOUR CAREER
PROBLEMS SOLVED
THANKS TO
Start up in Brighton
Brighton is the best location
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Back to business
PwC has launched Back to
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In brief
Time for blind faith
HSBC, Virgin Money,
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Group Reporting Analyst
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MORRISONS
SUED BY STAFF
A RUNAWAY SUCCESS
W E V E
NO
CHEATING
PLEASE
Trainee analysts at
leading investment
bank JP Morgan
were recently
sacked for
cheating in their
accountancy
training exam.
Three UK analysts
apparently flew to
New York to take
the test, and had
to pay for their
own flights home
after being caught
sharing answers
and using notes.
GOT THE L OT
PERSUADE BY
PERSUASION!
Whether its asking for a pay rise, pitching to win a
client, going to a job interview or asking a friend for a
favour, you have to learn how people think, explains
Philip Hesketh in his new book Persuade: Using the
seven drivers of motivation to master influence and persuasion.
Hesketh believes its possible to find out whats going to get them to
agree and so can you we have three copies of his book to give away!
Send your name and address to graham@pqaccountant.com head
up your email Persuade giveaway
A STUDENTS GUIDE
PQ magazine has teamed up with Kaplan Publishing
and author Clare Finch to offer you three copies of A
Students Guide to International Financial Reporting
Standards. This is the third edition of Finchs must-read
tome. You really do need to get to grips with accounting
standards to pass accountancy exams and this book is
a breath of fresh air. Yes, we have found a readable
book on accounting standards and want to give you a
chance of winning a copy, worth 25!
To be in with a chance of winning this great prize simply send your name
and address to graham@pqaccountant.com, with A students guide in the
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Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway entries must be
received by Friday 11 December. The main draw will take place on Monday 14 December 2015
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