PQ magazine June 2019
uk
WHO IS LOOKING AFTER YOUR MENTAL WELLBEING?
Do the accountancy bodies do enough to ensure
the mental wellbeing of their students? Mental
Health Awareness week took place from 13-19
May, and PQ was shocked at the lack of help
and advice coming from the profession.
As we have been told, there is no regulatory
requirement for the bodies to support students
with mental health issues. That responsibility
PRACTICE WILL
MAKE PERFECT
ACCA is introducing a new ‘Practice
Solution’ platform that will shake-up the
tuition market and directly help students
manage the changeover to CBEs at the
Strategic Professional level in 2020.
As part of a wide-ranging package of support
the practice solution will contain exam questions
that replicate and mimic the exact look and feel
of Pearson Vue software.
All students will also be given access to
specimen and past exams via ACCA ‘instance’.
This will be free, and PQs will be able to access
this as often as they like.
James Patrick, ACCA Head of Professional
Education, told the Global Learning Providers’
Conference that the practice solution platform
“will help students understand the exam
software inside out”, so they can demonstrate
their finance ability in the live online exam. “We
believe that replicating this live environment will
really help students,” Patrick explained.
In terms of timescale, the first practice
solution will be available nine months before the
first strategic professional CBE. The first exams
(being piloted in UK, Ireland and Czech
Republic) are in March 2020, so ACCA is
WIN A FREE AAT MODULE!
YOUR CHANCE TO WIN A TOP COURSE
www.pqmagazine.com / www.pqjobs.co.
lies firmly with training providers, who have
direct contact with the students, and their
employers.
There are expectations, and CIPFA appears to
be leading the way. It is currently working with
the South East Student Network to develop a
programme of support that it plans to roll out to
other areas. CABA, which works with ICAEW
looking for launch date of June 2019. There are
plans to then extend the platform to the Applied
Skills Level.
The practice solution platform is not just for
students. Learning providers have been invited
WITH PREMIER TRAINING
SEE PAGE 3 FOR ALL THE DETAILS
students and members, has also been ground-
breaking in this area. We can’t praise this
organisation enough. It launched its latest
mental health campaign in mid-April with the
aim of boosting resilience, and helping people
balance the pressures of work, life and exams.
• Watch out for our ‘Wellbeing – State of
Accountancy’ survey next month.
to develop their own version of the ACCA
platform, free of charge. They will be then able
to host their own content and questions, mark
these questions and provide feedback.
ACCA told the GLPC that after the first wave of
Strategic Professional CBEs it will be phasing in
the CBE exams into other countries from
September 2020. However, after listening to
feedback it has decided there will be no parallel
running of CBE and paper exams. “This only
adds to students’ confusion,” said Judith
Bennett, Director of Professional Qualifications.
ACCA has also unveiled a new data analytics
unit for the Ethics and Professional Skills model,
and is looking to introduce an element of peer
assessment capability in the case study unit.
Students will have to submit a presentation,
which will then be assessed by other students.
So, all students are to become assessors!
Further peer assessments are planned to be
introduced in other assessments over time.
Finally, two new technical performance
objectives have also been added to part of
ACCA’s PER. Business advisory, and data
analysis and decision support are now areas
PQs can focus on.
 A BETTER
WAY TO ACCA

95%
PASS RATE*

You won’t get a better chance

of success anywhere else:

- Get personalised feedback from

expert tutors

- Take mock exams in a simulated

environment just like the real thing

- Pass Guarantee – get free support

if you don’t pass first-time

For more information

call 020 3911 3387 or visit avadolearning.com/pq
*Based on results from the ACCA F1 paper at the March 2018 sitting
 comment PQ

CONTENTS June 2019 How’s your mental health?

News
06CIMA exam results Pass
rates are holding up well
08ICAEW exams March sees an
impressive set of results
10ACCA conference Learn to
love IFRS, students are told
Features, etc
04Mind your Ps&Qs OPBAS
doesn’t know what it’s doing;
ACCA lost my exam content; and
why you are loving the apps
12Tech news An update on the
digital world, including a round-
up from Accountex
14Back to basics Net Realisable
Value explained
15The audit market CMA calls
for split in consultancy and audit
funtions in the big firms
16Right of reply AAT’s Andrew
Williamson explains how the
association is aiming to improve
students’ exam hall experiences
17ACCA update How the new
qualification is working one year
after its introduction
18Conceptual framework
Knowing this will take the slog
out of learning the IFRS
20Mental health Could study
improve your wellbeing?
22AAT results The latest figures;
plus apps to help you study
23ICAEW CBAs Why these
assessments are nothing to fear
24CIMA exam tips How to take
control of the exam process and
cut out the stress
26June ACCA exam tips Top
advice from top tutors; and
improving your word power
29Careers Life in a small
practice; study resources for
CIMA PQs; and our book review
30Fun stuff – and our giveaways
The columnists
Robert Bruce Time to applaud the
profession’s unsung heroes 6
Prem Sikka UK company law
helps facilitate economic crime 8
Zoe Robinson Why professional
education offers value for money 10
Mike Day The 5G revolution is
almost upon us 12
Subscribe to PQ magazine
It’s FREE – see page 25 or go to
www.pqmagazine.com
JUNE 2019 ISSUE
Total Distribution
30,506
Publisher’s statement: We send
both a paper and digital issue to a
controlled database each month.
The above figure is the combined
total of issues sent out this month.
Free to subscribers who fulfil our
terms of control
Annual subscription: £35 (£50 overseas)
PQ magazine recently wrote to all the accountancy bodies
asking them how they support the mental wellbeing of their
students and members. We know that employers and training
providers have a duty of care, but I feel the bodies should also
understand that they should be ‘part of the solution’, too. Some students
spend many years becoming qualified, and along the way suffer
numerous setbacks. How would you feel if you failed an exam 10 times?
This got us wondering if the bodies had a duty of care here. We’ve had a
great response from them, which we will feature next month, with the
launch of our own fact-finding wellbeing survey. We want you to tell us
how you are feeling, and you need to be honest with us.
There’s a fascinating double-page spread this month to kick off our
campaign (pages 20-21). An award-winning tutor talks about how
education helped with her depression, and CIPFA’s Alison Sweeting
gives some great advice on managing exam stress. Read these articles!
Small world
PQ magazine recently spent a few days at
Accountex, and you can read some of our
interviews and insights on the tech news
pages this month (pages 12-13).
However, it was while we were on the
MyFirmsApp stand that we had our best meeting! As I was catching up
with the team Muhammad Zuberi asked if he could say hello (see
picture). He said he wanted to thank me for my advice 10 years ago,
when he was a PQ in Pakistan. He now works for Pebble Accounting in
London and is a hugely successful chartered accountant. While I wasn’t
doubting my advice was sound, Muhammad was able to show me
exactly what I had said 10 years ago on his mobile. So remember,
whatever you say online can come back to haunt you – good and bad!
Graham Hambly, PQ magazine editor (graham@pqaccountant.com)

WIN A FREE AAT MODULE

PQ magazine has joined forces with Premier
Training to offer this great giveaway
Isn’t it time you discovered what an award-winning provider
can do for you?
You can choose any module from the AAT accounting or
bookkeeping qualification (level 2-4).

Send your name and address to

graham@pqaccountant.com. Head up
your email ‘Premier offer’ and we will
enter you for the draw. The closing
date for this great prize is 31 May
2019

* PQ magazine’s usual; terms & conditions apply

PQ email graham@pqaccountant.com
HAVE YOUR SAY
A rocky road
If, as the article in May’s PQ
suggests, “AML supervisors still
seem in denial about money
laundering”, then what is OPBAS
doing about it? That’s where the
failure is. UK regulators on the
whole are rubbish, only seeming
to be interested after the event.
A classic example concerns
Northern Rock Building Society,
when it entered the very dodgy US
sub-prime mortgage market. They
even announced that they were
going to do so, at a time when
many of us had looked at it and
declined to invest
in it. The regulator
did nothing until
the crash. The
Our star letter writer wins a fantastic PQ mug!
More missing marks
I received the same email in
February as the student featured
on your letters page, who
complained about poor service
from ACCA (PQ, May 2019).
In my case, some of the content
of my June 2018 F6 exam paper
was not presented for marking and
had since been recovered. My
mark increased from 67% to
89% – a pretty substantial
increase, so it seems a whole
section was missed!
I did wonder at the time how
ACCA would have responded if I
had been told I’d failed the exam
originally; if so, I definitely would
have resat the exam before
February.
They did give an email address
to respond to if I had any queries –
which I did. I got the auto reply
that my email had been received,
which said they aimed to reply
within three working days. It’s now
nearly three months later and I’m
still waiting a reply (even after
resending the email in March).
It would be interesting to know
how many students received this
email. I refrained from asking on
the ACCA distance learning
Facebook page as I know how
disappointed students who’ve failed
an exam are and didn’t want them
PQ Magazine Unit 3a, Kingfisher Heights, 2 Bramwell Way, Royal Docks, London E16 2GQ | Phone: 020 7216 6444 | Email: graham@pqaccountant.com
Website: www.pqmagazine.com | Editor/publisher: Graham Hambly graham@pqaccountant.com | Associate editor: Adam Riches | Art editor: Tim Parker |
Contributors: Robert Bruce, Prem Sikka, Mike Day, Tony Kelly, Phil Gammon, Edward Netherton |
Subscriptions: dom@pqaccountant.com | 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
chairman was OK – he resigned
and took away his pension, leaving
his workers in a financial mess.
As to the London property
I need
pqjobs.co.uk
to question whether part of their
exam was not marked.
Name and address supplied
Phone trouble
I enjoyed your new column on
study apps – there really are stacks
of them out there (of varying
Published by PQ Publishing © PQ Publishing 2019
market, did the OPBAS review
cover this? It should have done.
There are documented cases of
foreign government ministers
decamping with public funds and
investing in London property. Two
of the most highlighted examples
are the Ukrainian (or Georgian)
health minister and the Nigerian
oil minister.
How did former PM David
Cameron have the cheek to claim
other countries were corrupt when
we were making it easy for some
of their leading citizens to be so?
At the time of one of these cases a
leading London estate agent was
quoted as saying: “We don’t really
do anti-money laundering.”
David Hunt, by email
quality, of course). The trouble is,
too many of us are already
spending too much time staring at
our mobile devices like zombies
(me included!). It seems that that’s
our fate now. Anyway thanks, and
keep up the good work.
Name and address supplied
social media
ROUND-UP
We loved a recent picture posted
on one of our favourite Facebook
groups showing how one student
felt about passing her tax exams –
those books went straight in the
rubbish. A fellow student
suggested it was now time to
“burn them”, but we aren’t sure if
that would be good for the bin!
However, everyone is different,
and one AAT admitted to keeping
all her books, even the out-of-
date tax ones. Others thought they
might need to refer to them at
some point in the future, although
admitted they never have. Others
wondered if recycling might be a
better option, or just giving them
away. A debate on of how useful
they would be ensued. The bin
option still looked good.
On another site Samad Niazi
created a poll asking whether it
was possible to pass the ACCA
SBR exams by self-study. Some
64% of PQs felt it was. Noorali
Samnani was among those who
said yes, but you need to “focus
on past papers, examiner
comments, and still have a skill
for discussion”. He said that there
is a lot of free material available
on YouTube you can access, too.
The Competition and Market
Authority’s report on audit really
put the cat among the pigeons.
Talha Siddiqui wondered:
“Wouldn’t splitting off the audit
business bring more objectivity to
the whole external audit process?
It is an interesting debate in my
opinion.” Replying, Boo said: “I
think it’s more profit and internal
havoc EY are thinking of. If they
were concerned about objectivity
we wouldn’t be where we are, I
still think FRC has got it wrong.
These changes leave too many
loopholes.”
 We are The Times and GOOD
Sunday Times University UNIVERSITY
GUIDE
of the Year for Graduate 2019
UNIVERSITY
Employment 2019 OF THE YEAR
FOR GRADUATE
EMPLOYMENT

Apply now for

September 2019 entry
Join an international award-winning university business school with
a reputation for a holistic approach to your personal development and
career ambitions.

Gain maximum professional body Advanced entry on to year 2 of

exemptions while earning your degree
7th university in the UK and
1st among London competitors
for Accounting and Finance
(Guardian League Table 2019)
BA (Hons) Accounting and Finance
(with optional placement) with
ACCA F1-F3 or AAT level 4
Working in partnership to develop
you as a whole person

Accountancy
college of the year
Accountancy
college of the year
Accountancy
college of the year
lsbu.ac.uk
PQ news

CIMA pass rates

CIMA OT PASS RATES
ROBERT Overall First time Total
BRUCE E1
P1
88%
71%
81%
52%
77%
48%

Time to
hail some
unsung
holding up well F1
E2
P2
F2
85%
95%
76%
79%
76%
89%
56%
57%
72%
87%
50%
52%

PQ magazine
heroes At 89%, the E2 OTs has the E3 87% 75% 71%
highest pass rate for first time P3 77% 61% 55%
sitters. F3 81% 62% 55%

There was a huge disconnect between

the climate change Extinction
Rebellion disruptions in London
recently and those who have been
steadily putting reform measures in
place for over a decade. Extinction
Rebellion, a mass of law-abiding and
mostly middle-aged folk with pink
boats at Oxford Circus and playing
cello on Waterloo Bridge, made no
mention of any other efforts to slow
climate change, if not halt it. And
there was no reason why they should.
Their message was that they were
the only game in town. And certainly
they were dead right if they were
referring to the pitiful efforts made by
all the political parties in this country,
with the noble exception of the Green
Party, to deal with climate change.
But to suggest that no one else has
got a grip is nonsense. Business, and
accountants generally, have been
bringing about change. It is all about
ensuring that if you want something to
change you need to measure its effect
and make the implications plain. This
is how a small group working on
accounting for sustainability has
grown into a worldwide movement in
the past 15 years. All of the efforts
have been devoted to changing the
way that climate-related risks are
EXCLUSIVE
The latest batch of CIMA pass rates
show the pass rates seem to have
finally found their level.
First-time OT sitters seemed to
struggle most with the P1 test, with
just over half (52%) passing it at
the first time of asking. Compare
this with E1, which has an 81%
first-time pass rate.
CIMA CASE STUDY EXAMS 2018/19 – PASS RATES
Feb 19 Nov 18 Aug 18 May 18
Operational 57% 60% 49% 43%
Management 61% 57% 75% 72%
Strategic 58% 60% 59% 67%
Tattoo stories please!
A few years ago PQ magazine
asked you to send us your tattoos.
We wanted to show that
accountants aren’t all grey suits
and shiny shoes!
We were recently told that one
ICAEW member wanted to put his
accountancy body logo on his body,
but when he asked them to send
Meanwhile, February case study
success rates seem to be holding
steady, with all the papers hovering
between 57% and 61%.
CIMA’s VP examinations,
Steve Flatman (pictured),
told PQ magazine: “Our
students continue to
demonstrate strong
professional skills and
competencies through
their performance
in the February case
study exams, and we are
pleased with their overall
good results.”
He was aware that
him a copy of the logo so he could
give it to the artist he was refused.
Apparently, the ICAEW felt having
its logo on your body might bring
you – and it – into disrepute! If
anyone out there would like to send
us their tattoo pictures we will print
the best ones. Send them to
graham@pqaccountant.com
students will now be looking at the
start of the new exams, which begin
in November 2019. He wanted to
encourage all students to
access CIMA’s transitional
tool, which is designed to
help student transition to
be as seamless as
possible. Flatman
explained: “The tool
provides personalised
advice based on individual
circumstances depending on your
study method, the time you have
available and support level you
receive from your employer.”

Is ACCA’s AAA just one long bore?

reported and so made plain in
corporate reporting. A system of
integrated reporting creates outcomes
that makes climate risk plain to see.
And being out there and obvious
makes it very hard for companies to
avoid acting on the consequences. It
has been slow, steady but brilliant
progress. And not a pink boat in sight.
Robert Bruce is an
award-winning writer on
accountancy for The Times
Is the ACCA Advanced Audit and Assurance (AAA)
study material the most likely to send you to sleep?
Students are saying they are really struggling to
concentrate on the lectures. “I felt like taking a nap,”
said one studier after a long session.
Other students studying AAA have revealed they
were feeling the same. Many studying towards the
June exam said they just plan to move quickly onto
answering questions. “It might make it a bit easier to
stay awake,” explained a hapless PQ.
Strategic Business Leader (SBL) was also deemed “a
dry dull subject.” For one PQ caffeine was their new
best friend.
Short bursts of study with regular breaks and a
reward at the end of a study session were the best
suggestions from fellow sufferers. The worry for some is
that they have started to snack on biscuits. “ACCA
absolutely ruins my diets,” said one ACCA studier.

In brief
ACCA texts for £1
ACCA PQ magazine readers
shouldn’t forget they can buy ACCA
study texts from Emile Woolf for
just £1 when they sign up to its
ACCA Club. The e-books cover the
syllabus but “without excessive
detail”. Written in clear English,
they have simple layouts and a
large bank of practice questions
and comprehensive solutions.
Emile Woolf also has Revision
Question Bank for some papers for
£9.99. See www.emilewoolf.com/
book-shop/acca/
Masters degrees on the rise
More than a quarter of a
million master’s degrees were
awarded in 2018, the highest on
record. It is being suggested that
young people want the extra
qualifications to help them stand
out in the job market, with the
increase in first and 2.1 degrees
being awarded meaning that
having a BA or BSc may no
longer be enough for
employers. In 2018, some
255,135 students completed a
taught master’s degree.
Study-drug use increasing
The number of students
misusing prescription drugs to
boost their performance is on the
rise, says a new survey. One in six
pupils who have sat GSCEs in the
past year admit they have taken
drugs for attention deficit
hyperactivity disorder or narcolepsy
to help with concentration. Ten
years ago the figure was one in 20.
The worry is that these drug-taking
habits will be taken into higher
education and professional exams.
Win a free AAT module
PQ magazine has joined
forces with Premier Training to
offer one lucky reader the chance
to win a free AAT module. You can
choose any module from the AAT
accounting or bookkeeping
qualification (levels 2-4). Check out
page 3 for all the details.

6 PQ Magazine June 2019

PQ news

PREM
SIKKA
Company
law
facilitates
economic
crime
The UK will remain a favourite
destination for the proceeds of
economic crime because it provides
the key ingredient – secrecy. Anyone
from anywhere in the world can form a
company in the UK. Companies House
rarely checks the authenticity of the
names and addresses of the directors.
The UK permits nominee
shareholdings and directors, which
conceals the identity of the ultimate
controllers and beneficiaries though
accountants, lawyers and banks acting
as nominees collect fees.
Private companies need at least
one natural person as a director and
that person need not be from the UK or
the EU. Public limited companies must
have at least two directors and one of
these needs to be a natural person.
Some corporate directors are based in
offshore tax havens that do not
publicly identify the names of directors
or shareholders. Foreign shareholders
and directors, even if known, can’t be
forced to comply with the UK laws.
Companies are required to file
information about persons with
significant control (PSC) – anyone
holding more than 25% of the shares,
who can be called to account. A 2018
report found that 335,000 companies
do not have a PSC. Some 208,000 UK
firms are registered at a company
‘factory’ – a location that is the
registered address of more than 1,000
companies. Some 4,000 PSCs were
under the age of two.
Controlling company formations is
the first necessary step in combatting
economic crime and the UK has failed
in that task.
Prem Sikka is Emeritus
Professor of Accounting at
the University of Essex
ICAEW’s impressive results
PQs from ‘rival’ accountancy bodies
just 77.7% of first time sitters students passed in the Portfolio
will surely look with envy at thepassed. and Reflective Statement module
latest ICAEW professional exam All the other pass rates for first and 81.6% in the Role Simulation
results! The lowest pass rates for
timers was above 80%, and for the exam.
March 2019 was for the Business Business Strategy & Technology A total of 2,743 students sat the
Planning – Taxation papers, wherepaper it was an impressive 92.8%. March exam, with 4,301 exams sat
ICAEW PROFESSIONAL LEVEL RESULTS Students (an average of 1.56 papers). In all
MARCH 2019 All First time also impressed 2,034 ACA PQs passed all the
Audit & Assurance 78.9% 82.2% in the Level 4 papers they sat. Some 75.8% of
Financial Acc & Reporting (IFRS) 81.1% 84.6% Accounting students who sat three papers
Financial Acc & Reporting (UK GAAP) 79.4% 83.3% Technician passed all three, with another
Tax Compliance 80.7% 86.0% apprenticeship 12.3% passing two out of three.
Business Planning: Taxation 74.3% 77.7% end-point This compares to the 73.2% of
Business Strategy & Technology 89.2% 92.8% assessments. sitters who sat one paper and
Financial Management 80.3% 85.6% Some 100% of passed it!
Celebrating ICAEW successes Do you want
a career in
films & TV?
Do you have a desire to work in
film and TV production
accounting and have previous
experience of working in a junior
ICAEW students from all over the world descended on Chartered
position in accounts or finance?
Accountants’ Hall in London for the institute’s annual International
Prizegiving Ceremony. Among all the sucess stories three students stood The Production Guild are
out for getting 100% in their Professional level exams: Yi Sze Ng from seeking to
Malaysia; Thomas Thoma from Cyprus; and the UK’s Natalie Bowmaker recruit
and train
10 people
White sent to prison
Former accountancy student launched Silk Road 2. The FBI had
across the UK to become
Assistant Production
Accountants. The programme
will last from September 2019
Thomas White has been jailed after closed the original and notorious
to May 2020 and will consist of
being found guilty of dark web site in 2013. a month of classroom training at
helping to operate a dark White (pictured) was Warner Bros. Studios,
web business dedicated finally sentenced in April Leavesden Park, followed by up
to the sale of illegal drugs, 2019 to five years and four to three paid work placements
and for hoarding a months after he pleaded on film and high-end TV
catalogue of horrific child guilty to drug trafficking, productions in the UK.
sex abuse imagery. money laundering and Applicants must have a
After dropping out from making 464 category A permanent UK address and be
an accountancy degree at Liverpool indecent images of children. eligible to work in the UK.
John Moores University (the 24 National Crime Agency investigators For more information go to
year old managed one term), the also confiscated 50 bitcoin,
https://bit.ly/2KnSHm6
former Silk Road administrator currently valued at £192,000.

In brief
Google it!
Tottenham Hotspur
Foundation CEO (and accountant)
Sarah Ebanja (pictured) was the
star turn at the recent
‘Step into Accounting
conference’ at the
College of Haringey,
Enfield and North
East London. She said if you going
for an interview then the least you
must do is google the company’s
financial report and accounts.
Read the chair’s report and at the
interview ask a question about
what they said. You should also
google the company to see if they
have been in the news, she said.
CIPFA signs Irish deal
CIPFA has signed a mutual
recognition agreement with the
Chartered Accountants Ireland
(CAI). The move provides a new
route for CAI students to qualify as
both an ACA and CPFA through a
public sector elective. The public
sector elective is based on CIPFA’s
Strategic Public Finance module.
On passing there will still be a work
experience requirement to gain full
CIPFA membership.
Time management is key
ACCA Strategic level
candidates are spending too long
on Q1, says Judith Bennett, ACCA
director of professional
qualifications. It means they are
often answering it really well, but
then subsequent questions just get
bullet point answers. She said:
“Time management is essential to
show the marker what you are
capable of throughout the exam.”
Read her advice on passing the
final level exams on page 17.
Where’s the annual report?
Food giant Kraft Heinz has
been forced to restate nearly three
years of financial results after
discovering evidence of employee
misconduct. In a filing to the US
SEC, it said an internal probe had
revealed the fabrication of a
number of procurement and
supplier transactions. The firm still
hasn’t filed its 2018 annual report
(as PQ went to press).

8 PQ Magazine June 2019

 PQ with AAT, ACCA, ICAEW
or CIMA? Why wait?
Join ICB today!
Fast track your career by using your existing qualifications
to join the world’s largest bookkeeping organisation.

As a Certified ICB Bookkeeper you’ll benefit from:

Professional status and recognition

Free legal and technical advice-line
Local and national events
Resources, webinars, templates and help sheets
Accounting news, emails and updates
Discounts with 100s of retailers including
Sainsbury’s, Tesco, ASOS, and Curry’s
And being part of a community that
really cares

For more information and to receive 15% off your ICB Exemption application,
call ICB HQ on 0203 405 4000 and quote ICBPQ The Institute of
Email us at exemptions@bookkeepers.org.uk www.bookkeepers.org.uk/PQ Certified Bookkeepers
PQ news

ZOE
ROBINSON
Professional
education is
good value
for money
The fee cap for a UK undergraduate is
£9,250 for full-time study, which
means a three-year degree will cost
£27,750. This is certainly a large
amount of money but with graduate
numbers increasing many must
believe it to be value for money.
In his book ‘The Case Against
Education’, Bryan Caplan, economics
professor at George Mason University,
challenges the value added by
universities in terms of skills learned
and return on investment. Although his
calculations are based on the US
market, his arguments are worth
considering here in the UK.
Which leads to a more relevant
question: how would a professional
accountancy qualification stand up to
the same level of scrutiny? Here are a
few numbers. In 2018, Accountancy
Age undertook a survey that showed
those with an accounting qualification
earned an average of £18,246 more
than those without (£64,220 qualified
£45,974 not qualified). Sitting
alongside this is the cost of a three-
year part-time course, which is about
£15,000. This is a very simple
comparison and as we know averages
can be misleading, but it offers some
insight.
But does what students learn while
studying genuinely improve their skill
set? Although I am clearly biased, I
think it does. The professional bodies
work hard to ensure examinations
assess the skills most valued by
employers, motivated perhaps by the
need to ensure their qualification
remains relevant but, perhaps most
importantly, is of value.
Zoe Robinson is Learning and
Programmes Director at
Kaplan Financial
Love your standards!
ACCA FR candidates need to get to that PQs don’t really understand
love their standards, or perhaps why they are calculated, or what
find a lecturer who is passionate they tell us about how the company
about them. The FR examiner told is performing.
attendees to the Global Learning Similarly, whenever there is a
Providers conference that there are transfer pricing question, students
25 of them, and you “don’t need to seem to recoil in horror, no matter
be afraid to tell people the standard how easy the examiner tries to
you love”. make them. Students just don’t like
His favourite is IS38 intangible them and there are always
assets, and he feels IS8 is a problems.
dreadful one! No one is, he claims, • We will have more on the Global
too cool not to have a favourite – Leaning Providers conference next
remember this is a FR class and no Meanwhile, the PM examiner month. For all the top tips for the
one is too cool for anything. He also explained that while variance June exam go to page 26. The
said you should be creating half- calculations are done well, students ACCA’s Judith Bennett director of
page summaries of each standard, seem to struggle with discussing professional qualifications provides
to include the key summary and variances in relation to managers’ advice on how to pass the exams
rules. performance. There was concern too – see page 17.
please let me know.” The distance learning college
AAT under fire wondered whether this was an isolated case.
AAT said: “We require a robust business case from
all prospective training providers, especially those
AAT’s business practices have come under attack after proposing distance learning as a delivery channel,
a tuition provider was told to ditch its current before we are able to proceed with an application to
accountancy body’s qualifications for the AATs. offer AAT qualifications.”
PQ magazine has seen an email sent to a distance It told PQ magazine that the suggestion to move the
learning provider telling them they had a ‘weak’ offering provider’s existing students onto AAT qualifications was
for the full AAT qualification, in comparison to what is made as “then the number of students on AAT
already available in the market. qualifications would be higher, and as a result it would
However, this college has a strong bookkeeping be commercially more viable for the provider to deliver
offering and hundreds of students, which the AAT our foundation certificate and advanced diploma”.
account manager was interested in. The problem? ICB President Garry Carter said: “I have a great deal
These students are already registered with the ICB. of respect for AAT, so I was surprised to hear that a
The email ends by asking: “If you are open to fellow professional body had been acting in what
discussing replacing your ICB offer with AAT then appears to be such an underhand way.”
Technology, trust and talent are the
key themes of the new ICAS
qualification being introduced this
September.
A new look for ICAS
The first big change will be the will ensure students will be more will concentrate on business taxes.
introduction of Business Acumen relevant in the workplace. Those studying the CA
into the Test of Competence (TC). In From 2020, Assurance and qualification will also need to brush
a recent interview ICAS education Business Systems at TPS will up their quantitative skills. We are
chief Mark Allison explained that become Assurance and Data. A new talking forecasting, sensitivity
bringing business acumen, subject of Risk and Technology is analysis and estimation here. They
commercial awareness and initial also being incorporated into the will all become an important part of
entrepreneurial skills into level one syllabus. Meanwhile, the tax paper the new course and syllabus.

Deloitte goes legal
Deloitte’s legal arm is set to
become a ‘big player’ in the
UK’s £26bn legal market.
New head Michael Castle said
the firm is ready to “transform
the legal landscape”. No mean boast. Castle,
who hails from Allan & Overy, explained that
the legal profession is one of the last
businesses to embrace wholesale digital
transformation. He believes that combining law
with the firm’s pre-eminence in consulting and
technology will help the transformation. Deloitte
is, however, late to the game, with EY, KPMG
and PwC already having UK legal businesses.
The scale and financial clout of the Big 4
accountancy firms is undoubtedly seen as a
threat by many of the current ‘Magic Circle’ of
law firms.
Blockchain Analyzer
EY recently launched the second generation of
EY Blockchain Analyzer, its blockchain
analytics tool. The first generation tool was
designed to facilitate EY audit teams in
gathering an organisations’ entire transaction
data, from multiple blockchain ledgers, to
reconcile that data to EY client books and
records, and to perform
enhanced analytics. The
new upgrade is now
available to EY teams
and non-audit clients as
a business application
that is accessible anytime and helps enable
financial reporting, forensic investigations,
transaction monitoring and tax calculations.
CEOs divided over AI
Nearly three-quarters of UK CEOs (72%)
believe AI will significantly change the way they
do business in the next five years, but debate
still remains on how involved government
should be in the technology’s development.
When it came to regulation, PwC’s 22nd
annual CEO survey found just under
half of those surveyed (47%)
thought organisations should be
allowed to self-regulate the use of
AI, while a similar number (44%)
disagree.

10 PQ Magazine June 2019

PQ tech news

MIKE
DAY
The 5G
step-change
is almost
with us
There are two tech topics that are just
around the corner that will have a
profound impact on business and
accounting – mobility and big data.
In this issue I’ll cover mobility
(keep an eye out for thoughts on big
data coming soon). So, how many
seconds ago did you last look at a
social media app? Well, you ain’t
seen nothing yet! That’s because 5G
mobile networks are nearly here. The
country’s biggest mobile network, EE,
is to launch 5G this summer in Cardiff,
Edinburgh, Belfast, Birmingham,
London and Manchester.
Why the big fuss? Well, because
From hype to reality
One in three accountants believe AI The report also highlights the
is still “all or mostly hype”, while ethical challenges that lie ahead –
the rest (60%) say in three years’ accountants will increasingly need
time it will become a reality, to align professional competence
according to a new global research and due care with AI and machine
from the ACCA. learning.
The findings are The reports author,
published in a new Narayanan Vaidyanathan
report ‘Machine (pictured), said that as with
Learning: More any technology with power
Science than comes responsibility. He
Fiction’. Those explained: “In the case of
accountants machine learning ethical
surveyed say the considerations are never
adoption of machine far away.” capabilities could impact on their
learning needs to be Vaidyanathan stressed roles.
based on legitimate that at the very least all He added that to prepare for the
business need, rather finance professionals digital future ACCA has enhanced
than just wanting to be seen as should know how AI is evolving and the digital content across many of
using AI. be alert to how the developing its exams.

5G makes several major leaps
forward. Current 4G networks transmit
data at about 100 megabytes a
second, so a full HD film takes over
seven minutes to download. 5G
networks are about five gigabytes a
second – so downloading the same
film will take just 10 seconds!
But it's also very clever. At the
moment the quality of your 4G
connection is dependent on the
number of other mobile device
connections. There’s only so much
capacity in any given area. This won’t
be the case with 5G as it has far
greater capacity and the ability to
scale intelligently, according to what
it is being used for. It’s also due to
cover more geographical areas; great
news for rural businesses.
It will be like having a current fibre
cable to every phone, tablet and
laptop. In the meantime, the impact
on remote working, transport and
informed decision making in business
on any device, is going to be big –
and great for watching Netflix, too.
Mike Day, Director, UK
Education Sector, Xero
Cybercrime soaring
getting more commonplace. Nearly
two-thirds of firms (65%) have
experienced cyber-related issues in
their supply chain in the past year.
More than three out of five firms Among the firms across seven The worse affected are technology,
(61%) experienced a cyber incident countries reporting attacks, average media and telecoms (TMT) and
in the past year, up from 45% in losses associated with all cyber transport firms. The majority of
2018, says the latest international incidents have risen from $229,000 firms (54%) now evaluate the
report from Hiscox. Firms in last year to $369,000 – an increase security of their supply chains at
Belgium were the most heavily of 61%. For larger firms cyber- least once a quarter or on an ad
targeted. losses now top $700,000. Of the hoc basis.
While larger companies are still countries surveyed German firms • The Hiscox Cyber Readiness
most likely to suffer a cyber attack, suffered the most, with one Report 2019 looked at companies
the proportion of small firms reporting a cost for all incidents of in the US, UK, Belgium, France,
reporting an incident is up from $48m. Germany, Spain and the
33% to 47%. Supply chain incidents are also Netherlands.
Nowhere to hide from the Revenue
HMRC’s IT system, Connect, is increasingly being used hide from the sophisticated electronic searches
to identify income and gains that have not been available to HMRC, it’s not just about identifying
declared, according to accountants Blick Rothenberg. income and gains; the searches are being used to
“Connect completely changes the dynamic of how provide key information about wider lifestyle questions
HMRC commits investigation resource to risk and – for example the existence of offshore assets,
enables thematic and risk-based enquiries across the expensive flights to exotic destinations, or purchase of
taxpaying population,” said the firm’s director of tax high value assets in the UK such as property or classic
risk, Jessica McLellan. She added: “No taxpayer can cars.”

Tech briefs
Call for mental health tax
Doctors and MPs are calling
on technology companies to pay a
mental health tax, and for addiction
to social media to be classed as a
disease. A report, from an all-
parliamentary group on social
media and young people’s mental
wellbeing, has suggested a 0.5%
tax on profits to fund research and
education. The head of NHS
England, Simon Stevens, has
previously called for a tax on social
media companies. He believes they
should pay to fund the treatment
for the mental health problems
they create.
Ditch passwords
It may be time to ditch online
passwords because they do not
properly protect people, says
Microsoft’s Bret Arsenault. He
revealed that some 90% of
employees (they have 135,000)
can now log on to the corporate
network without a password.
Instead, they use alternatives such
as biometric services, which scan
faces or fingerprints.
London talent sought
Facebook has opted for
London to become its global centre
for a payments push for its
messaging platform Whatsapp. The
plan is to launch mobile payments
in several countries this year,
pushing up staff numbers in
London to 400. Facebook said it
chose the UK because of its
multicultural workforce from
countries where Whatsapp is
popular. Whatsapp is far more
popular in the UK and India than
the US.
Your voice
HSBC UK’s innovative voice
biometrics system, VoiceID, which
allows customers to access their
accounts using their voice, has
prevented £330m of customer
money falling into the hands of
fraudsters, the bank says. Since
the system was introduced in
2016, more than 15,000
fraudulent calls have been
identified. The technology also
provides a library of fraudsters’
voiceprints to check against new
incoming calls.

12 PQ Magazine June 2019

 Accountex news PQ

Why cash is still king

Every UK small business is owed an average
£24,841 as a result of late payments, according
to the latest analysis from Xero’s Small Business
Insights.
Xero’s director of Partner and Product, Damon
Anderson, told PQ magazine at Accountex that
late payments cause a real cashflow squeeze
that contributes heavily to some 50,000 small
business failures a year.
He explained that the average number of days
for a small business invoice to be paid in
February 2019 (30-day term) was 40.3 days.
The data also shows that FTSE 350 companies
pay in 46 days on average, or more than two
weeks late. Anderson said that in the 10 years
since the Prompt Payment Code was introduced
there has been no improvement in this area.
More government legislation may be needed.
In the meantime, he believes that using the
tech provided by firms such as Fluidly and
Iwoca will help small firms help themselves by
building real time information, identifying the
cash gaps and helping them get access to
Damon Anderson capital when they need it.

Open Banking has arrived Top 10 guide to the best

Earlier this year, FreeAgent became
the first UK accounting software to
offer direct bank feeds via the Open
Banking platform, FreeAgent’s Nick
Longden (inset) told PQ
magazine.
Now part of the RBS
and NatWest group,
FreeAgent’s initial feeds
were open to a selected
group of test users, with
a wider roll-out planned
for later in the year.
However, it’s what Open Banking
enables business to do next is that
is making Longden excited.
We are not there yet, but
eventually businesses will be able
to initiate payments in the software
via the platform. We are not just
talking about the supplier
here but payroll, too.
Businesses will also
be able to share
financial accounting
data easier. So if you
need a loan, mortgage,
invoice factoring or
insurance the decisions will
become almost instant. That access
to finance is critical for many
businesses.
MTD bridging software
Here’s MyFirmsApp’s Allison
Plager’s Top 10 bridging software
for Making Tax Digital (MTD) for
VAT:
1 Absolute Accounting Software
2 Accu-Man
3 Andica
4 BTCSoftware
5 Clear Books
6 Forbes Computer Systems
7 IRIS Software Group
8 Norais Software Solutions
9 Vital Code
10 Wolters Kluwer UK

-RLQRXU
$ZDUG:LQQLQJ&HQWUH 7UDLQLQJ3URYLGHU





  
$$7


)5(($335(17,&(6+,36 

$FFRXQWLQJ$$7 %XVLQHVV$GPLQLVWUDWLRQ &XVWRPHU6HUYLFH 6$785'$<&/$66(6

   ',67$1&(/($51,1*$9$,/$%/(
)RUPRUHLQIRUPDWLRQ
  

DGPLQ#WKHWUDLQLQJSODFHRUJ
1HZ&URVV5RDG #7UDLQLQJB3ODFH RI([FHOOHQFH
/RQGRQ6(%(  ZKHUHTXDOLW\WUDLQLQJV SUDFWLFDOZRUNSODFHPHQWVWDNHSODFH

PQ Magazine June 2019 13

PQ AAT exams

Back to basics: Net

and the value of inventory would be reduced to
£4 per unit. The adjustment recorded as an
expense in the profit and loss account.
Slightly more complicated are situations where
the goods are damaged and require some form

Realisable Value
of repair to be placed in a saleable condition,
albeit possibly with a different sales price.
Consider the example above with a different
situation whereby the items need to be repaired
at a cost of 35p per unit to achieve a sales price
Struggling with how to value inventory? Rob Wyatt recaps the basic of £5.25 The sales price is higher than cost, but
principles of valuing inventory using the Net Realisable Value technique the repair charge must be taken into account
giving an NRV of (£5.25 – £0.35 =) £4.90. Once

O
ne important aim of the Statement of
Financial Position is to accurately
report the value of the enterprise. The
‘true’ value of assets is achieved in various ways
using a variety of techniques and one
requirement when valuing inventory is the idea
of ‘net realisable value’ (NRV).
0NRV represents the net
value, real or estimated, to
the enterprise after selling
costs have been considered.
For example, if there is are
costs required to prepare
the inventory for sale then
those should be deducted
from the expected selling
price.
In normal circumstances,
NRV would be higher than
historic cost, leading to
potential profit, but in some
circumstances such as obsolescence, physical
deterioration, etc, it can be lower. The
requirement for financial reporting is to use the
lower of historic cost or NRV.
How is it calculated?
Adjustments can arise in different ways. The
simplest is where
obsolescence, or similar,
reduces the selling price.
For example, inventory
bought for £5 per unit with
the initial intention of
selling at £10 per unit
would be held in inventory
at the lower value, namely
£5 per unit.
However, if the market
price dropped to £4 per
unit then the NRV is now
lower than historic cost
again the inventory would be reduced to the
lower value with an appropriate charge to the
P&L.
Exam tips
1. Be careful not to simply adjust to NRV.
Adjusting the example above again, consider a
re-packaging charge of 50p per unit and a sales
price of £6 per unit. While there is a vastly
reduced sale price (£10 – £6) the comparison of
NRV to historic cost is still paramount. In this
situation the NRV is (£6 – £0.50 =) £5.50,
which is higher than historic cost meaning that
no adjustment is required.
2. Make sure inventories are not overstated. The
valuation of inventories based on the lower of
cost or NRV is an example of the prudence
concept being applied. To present a ‘fairer’
picture of the enterprise it is essential that
inventory values are correctly reviewed. PQ
• Rob Wyatt is an AAT tutor for AVADO

A leading qualification
for a changing world
The role of the professional accountant is becoming more
important than ever.

That’s why we’re evolving the ACCA Qualification to keep

it current and maximise your employability to give you the
professional edge in a changing world.

Key changes include:

Session CBEs Ethics and Professional Strategic

Available now Skills module Professional
Available now Available now

Find out what this means for you:

accaglobal.com/examchanges

14 PQ Magazine June 2019

 audit change PQ

CMA joins call to split

audit and consultancy
T
he UK Competition & Markets Authority
(CMA) says legislation is now needed to
address both the lack of choice and
competition in the audit market. There is also
genuine concern about the vulnerability of the
industry to the loss of one of the Big 4.
The CMA is recommending the separation of
audit from consulting services, mandatory ‘joint
audit’ to enable firms outside the Big 4 to
develop the capacity needed to review the UK’s
biggest companies, and the introduction of
statutory regulatory powers to increase
accountability of company audit committees.
CMA chairman Andrew Tyrie said too many
audits fall short, with more than a quarter of big
company audits considered sub-standard by the
regulator. “This cannot be allowed to continue,”
he stressed.
He went on: “The government now has three
reports to hand. In large part, they come to
similar conclusions. Conflicts of interest cannot
be allowed to persist; nor can the UK afford to
rely on only four firms to audit Britain’s biggest
companies any longer. Early action will require
legislation – hence the CMA’s proposals.”
The CMA recommendations are:
• Operational split: Auditors should focus
exclusively on producing the most challenging
and objective audits, rather than being
influenced by their much larger consultancy The Competition and Markets Authority has released its proposals to
businesses. Given the difficulties with an ensure audit competition. It’s now over to the government to implement
immediate global structural split, at this stage
the CMA is only recommending an operational the changes
split of the Big 4’s UK audit work. This will
require separate management, accounts and • Audit committees: The CMA says it is enhance public trust and investor confidence is
remuneration, a separate CEO and board for the essential that audit committees choose auditors paramount. But CBI President John Allan said:
audit arm, separate financial statements for the by seeking those likely to provide the most “The guiding star for any reforms must be a
audit practice, an end to profit-sharing between robust and constructive challenge to the focus on what works.” He felt that mandating
audit and consultancy, and promotions and accountancy practices of their companies. That joint audits will add cost and complexity for
bonuses based on the quality of the audits. means the regulator should hold audit business, with no guarantee of better outcomes.
• Mandatory joint audits: More choice and committees more vigorously to account. This Operational splits could also restrict access to
competition for audits of big businesses can and may include ensuring that committees report the skills required to carry out complex audits.
should drive up their quality, but the barriers to their decisions as they hire and supervise Allan suggested that other ideas, such as
entry for ‘challenger’ audit firms are currently auditors, and that the regulator issues public greater scrutiny of audit committees by the
large. The CMA is recommending mandatory reprimands to companies whose committees fall regulator have merit and could safeguard
joint audits to help increase capacity at the short of adequate scrutiny of their auditors. against high-profile corporate failures, which
challenger firms, choice in the market and • Five-year review: The regulator should review have rightly prompted searching questions.
thereby drive up audit quality. It believes the effects of these changes periodically, in the He explained that with the Byron review yet to
challenger firms should work alongside the Big 4 first instance in five years from the full report a false move now could create yet more
in these joint audits and jointly be liable for the implementation date. It is then that they should uncertainty and undermine confidence in
results! There may be initial limited exceptions to look to see whether to go beyond the operational corporate Britain.
the requirement, based on criteria set by the split already proposed, and how to fine-tune the It is also being reported that several of the Big
regulator, focused on the largest and most joint audit remedy to adapt to market 4 are now considering the options of a judicial
complex companies. However, any company developments. review of the recommendations. They seem to
choosing a sole ‘challenger’ auditor should be However, there is one professional body that is be particularly worried about the introduction of
exempt, says the CMA. It is envisaged that the not happy with the CMA’s recommendations and mandatory joint audits.
joint audit requirement should remain in place is prepared to say so – the CBI. The UK’s This proposal ‘surprised’ many, given the level
until the regulator deems that choice and premier business organisation says some of the of opposition from companies in their
competition have improved enough to address CMA’s audit recommendations risk damaging submissions to the study, and the lack of
the vulnerability of the market to the loss of one UK plc’s world leader reputation. evidence that such a move improves audit
of the Big 4. It said that improving the quality of audit to quality. PQ

PQ Magazine June 2019 15

PQ right of reply
Getting it right
in the exam hall
Andrew Williamson, Director of Marketing and Commercial at the AAT,
responds to PQ readers’ criticism of the association’s exam hall software
I
’m writing in response to an article in the
April issue of PQ magazine and wanted to
feed back directly on our approach to
working with training providers to ensure third-
party software is in line with our requirements.
As the original article correctly outlined, some
AAT assessments use third-party software such
as SAGE. This is important because it enables
us to provide real-life scenarios and assess
students using software they would be expected
to be familiar with in an accountancy role.
AAT takes its responsibility for communicating
with training providers about the importance of
third-party software seriously. We regularly
communicate via email, in meetings and at our
annual conference so training providers are Andrew
continually reminded of the importance of Williamson
keeping their systems and software up-to-date.
The training provider approval application
forms include questions specifically around what
Get a qualification that keeps you ahead of the curve
Go further.
16
third party software they will have in place to
manage AAT assessments. Training providers
applying for approval must declare they have all
the relevant software required. They must also
confirm that the information held on Find an
Assessment Venue/Find a Training Provider on
AAT’s website is accurate and unambiguous.
External Quality Assurers carry out occasional
spot checks during visits to training providers, to
ensure they continue to have appropriate third-
party software. And our Regional Account
Management team works with our existing
training providers to ensure that the information
on Find a Training Provider and Find an
Assessment Venue is an accurate representation
of what they can actually offer students.
As an awarding body it is important that our
assessments run smoothly. We expect our
training partners to provide a high-quality system
and up-to-date software in order to allow this to
happen in their college. We have only
occasionally received a complaint from a student
about their training provider regarding issues
with their third-party software. Any complaints
are noted but we always require students to
exhaust the complaint process with their training
provider before it is investigated further by AAT.
If we receive a number of complaints about a
training provider we may instigate an early
external quality assurance visit or place the
provider on sanction while we investigate the
matter further. However, on this occasion, we
have not had any significant complaints and so
we’ve not needed to do this. PQ
accaglobal.com/PQ
PQ Magazine June 2019

Qualification for today
Judith Bennett outlines how
the new ACCA qualification,
introduced last year, is
progressing
C
hange is the new normal, and
since we relaunched ACCA’s
qualification in 2018 there’s
certainly been a lot of change to ensure
the skills we are testing in the
qualification are aligned to the needs of
employers, and we are now seeing a lot
of progress and positivity. To ensure PQ
readers are performing as well as they
should in their ACCA exams, I wanted to
offer a few timely reminders for future
success and share some of our latest
updates that will ensure the skills you are
developing keep you in demand.
ACCA’s new Strategic Professional
exams had their third sitting in March,
producing a set of good results, including
those for Strategic Business Leader and
Strategic Business Reporting. Many
congratulations to all the students who
have passed these exams, especially
those students in many different parts of
the world who have achieved excellent
prize-winning marks.
Results for Strategic Business
Reporting were the highest since launch.
What’s really gratifying about this is the
way students have approached this exam
with advice and guidance now being
taken on board.
ACCA’s Catherine Edwards wrote an
article for PQ recently, explaining how
markers reported that they felt students
were approaching Strategic Business
Reporting just like the former P2. In
Strategic Business Reporting, students
have to analyse the data and present
their findings to stakeholders and we’re
now seeing more students doing just this.
And even more pleasingly, we’re
seeing strong evidence that students are
starting to understand how to refer to the
conceptual framework in their answers.
There was another great article in PQ by
Tom Clendon, a tutor with Avado, who
explained the use of this very clearly and
students will be expected to apply this
framework in every exam (PQ, April ’19).
The power of practice
Our main advice for Strategic
Professional exams is twofold: time
management and practise, practise,
practise!
With time management, we see
evidence in all exams at Strategic
Professional that students are spending
too long on the first question and
although they are often answering it
really well, responses to subsequent
PQ Magazine June 2019
questions are written in bullet points. At
this level, trying to convey their answers
in bullet points is unlikely to score marks,
and so time management is essential to
show the marker what you are capable of
throughout the exam.
Successful students tell us they
prepare by practising full exams to time,
also focusing on answering the question
as set and responding to the
stakeholder’s needs as appropriate. It
really does help and we think this is
super practical advice.
Evidence of helpful practice can also
be seen in the results for the Applied
Skills exams and how students are using
the spreadsheets, for example. Here,
practice can help you develop shortcuts
that you can use in the exams to save
time and let you focus on your response.
And remember, in our spreadsheet
questions the marker sees what’s in and
behind every cell, not just the answer, so
you will get marks for workings.
Rehearse all your questions on a
computer. If you are with an approved
learning provider, they should set your
homework questions on computer. Or if
you are using our approved content
material, use the Constructed Response
Workspace. The more practice you do,
the more familiar you will become with
the exam tools to help you in the exam.
Digital, ethical and successful
Launched in October 2017, our ground-
breaking Ethics and Professional Skills
Module (EPSM) is designed to support
your exam success. It provides you with
the full spectrum of advanced ethical
and professional skills employers need
from accountants.
We’ve recently introduced two new
units into the module. The first
specifically outlines to students how to
use the learnings from EPSM to succeed
in Strategic Professional exams. And the
second unique innovation is a new
ACCA update PQ
interactive unit on data analytics covering
big data, different methodologies for data
analytics such as robotics, AI, and
machine learning, and the associated
ethical and security issues.
It also covers the legal implications of
using and storing data, and explains how
data analysis can be presented and
communicated, allowing people to make
good business decisions. Importantly the
unit also includes scepticism in data
analytics, one of the key professional
skills required of any finance
professional.
This means that data results should
never be taken at face value and that
‘too-good-to-be-true’ results need to be
explored in detail before any decisions
are made. Uniquely, as part of this
module, students have to undertake a
practical exercise to carry out data
analysis, using statistical techniques, and
make recommendations based on that
analysis.
Connected to emerging technology
Of course, as well as getting students to
practise data analysis in the EPSM, the
ACCA qualification has digital content
embedded throughout the exams;
starting with Accountant in Business all
the way through to the Strategic
Professional exams. Subjects such as big
data, Fintech, cybersecurity, audit data
analytics and more are covered to ensure
the relevance of the qualification.
With the profession going through rapid
change, we’ll ensure we’re giving you –
our students – the knowledge and skills
needed for the workplace today and the
future. Our syllabus is updated each and
every year to ensure that you have the
awareness and skills needed for your
careers, understanding what it means to
be a professional accountant in the digital
world. PQ
• Judith Bennett is the ACCA’s director
of professional qualifications
17
PQ Conceptual Framework
To know or not to know:
that is the question
A
s a tutor of financial reporting papers of
many years’ experience, I always find
that students are overwhelmed by the
number of Accounting Standards that they need
to remember in financial reporting papers. Well,
they think that they need to know them all! What
is in fact more important is to remember the
Conceptual Framework.
This contains the concepts and principles that
created all of the Accounting Standards.
The Conceptual Framework
The Framework identifies the five elements of
financial statements:
• Assets: These are resources controlled by an
entity as a result of a past event that will lead to
a probable inflow of economic benefits into the
business.
• Liabilities: These are obligations of an entity
arising as a result of a past event that will lead to
a probable outflow of economic resources from
the business.
• Equity: This is the residual net assets of an
entity after deducting its liabilities.
• Income: This increases the economic benefits
for the business during the period.
• Expenses: These decrease the economic
benefits for the business during the period.
The Conceptual Framework also identifies
when the elements can be recognised in the
financial statements. It says that an element
should be recognised in the financial statements
if:
• It meets the definition of an element.
• It is probable that future economic benefits will
flow to or from the entity.
• The item can be measured reliably.
I always reassure my students that they can
give a very good answer for most exam
questions that are testing accounting standards
just by knowing the Conceptual Framework.
Let me explain this further, with examples of
how easy it is to talk about an accounting
standard, even if you don’t know the accounting
standard, as long as you know which element is
being addressed in the accounting standard.
There are many examples, but I will focus on
just three accounting standards.
Revenue
IFRS 15 asks a lot more questions now about
whether we should recognise revenue than the
previous revenue standard did.
In terms of the element that we are talking
about from the conceptual framework, this
standard is addressing ‘income’.
Even if I don’t know what IFRS 15 says and I
am asking whether income should be
recognised, most scenarios can be answered by
looking at the recognition criteria of the
18
Richard Poole explains why knowing the
Conceptual Framework will take the slog
out of learning accounting standards
Conceptual Framework:
• It meets the definition of an element.
• It is probable that future economic benefits will
flow to or from the entity.
• The item can be measured reliably.
IFRS 15 asks us to address a number of
steps. Within these steps, the key things that the
standard tells us to do is:
• ‘Identify the contract’
– Is it probable that the selling entity will
receive consideration?
• ‘Determine the transaction price’
– The entity must estimate the amount it
expects to receive.
– It is highly probable that a significant
reversal in the amount of revenue recognised
will not occur.
It can be seen that with a reasonable
knowledge of the Conceptual Framework that it
is possible to conclude on whether we should or
shouldn’t recognise revenue in most scenarios.
Intangible assets
When we consider intangible assets (including
Research and Development expenditure) we are
considering the recognition an ‘asset’ as the
element here.
In some cases, development expenditure may
meet the recognition criteria.
IAS 38 Intangible Assets stipulates that this is
only the case if ALL of the following conditions
are met:
• Completion of the asset is technically feasible.
• The intention is to complete and use or sell
the asset.
• The asset can be used or sold.
• The asset will generate future economic
benefits.
• Adequate resource is available to complete the
asset.
• The expenditure on the asset can be
measured reliably.
It can be seen again that by knowing the
Conceptual Framework we can generally identify
if development expenditure should be
recognised.
Leasing
In relation to Leasing, IFRS 16 says that a lease
is probably a finance lease if one of the following
applies:
• Ownership of the asset transfers at the end of
the lease term.
• The leasee has the option to purchase the
asset for less than its expected fair value and
this is reasonably certain (probable) to occur.
• The lease term (including secondary periods)
is for the major part of the asset’s economic life.
• At the inception of the lease, the present value
of the lease payments amounts to substantially
all of the fair value of the leased asset.
• The leased assets are specialised.
• The leasee will benefit from changes in the
asset’s residual value.
• The leasee can continue the lease for a
secondary period in exchange for rent payments
that are much lower than market rates
(probability needs to be considered).
To conclude
I am not in any way suggesting that students
shouldn’t try and learn their accounting
standards. However, it is a very useful tool to
have in your exam technique repertoire to know
the code (Conceptual Framework) that created
the accounting standards. PQ
• Richard Poole FCCA is a freelance classroom
lecturer and online tutor with FME Online
PQ Magazine June 2019
Easily see how your students are progressing

Optimise Your Time & Value

Activity reports on cohorts and individual learners

Auto-nudges sent to keep students on track

Enable/disable access to a resource for different cohorts

Set rules for how & when resources become available

Test completion notifications sent to tutors/markers

Mention PQ Magazine for a FREE TRIAL +44 (0) 203 151 1331 getrogo.com

HELPING YOU SUCCEED

SUPPORTING YOUR WELLBEING
GIVING YOU BACK CONTROL
From the moment you begin your ACA training,
you can access all our services - for free and in the
VWULFWHVWFRQôGHQFH
• Telephone life coaching
• Emotional support
• Health and carer support
• Financial assistance Call CABA +44 (0) 178888 5556 366
• Business start-up support CABA 24 hour helpline 0800 107 6163 (UK only)
• Debt advice Talk to us 24 hours a day caba.org.uk/letstalk
• Personal and professional development courses Email enquiries@caba.org.uk
• Legal advice $OOFDOOVDUHVWULFWO\FRQôGHQWLDO
• Career coaching
caba.org.uk
• Family support
PQ mental wellbeing

Alice, now an experienced

accountant and lecturer,
explains how getting an
education helped her cope
with depression
he struggle with mental health is
Can education
a struggle because I began to believe I all-time low. Wondering how I was going

T felt by many people in all

different forms. The problem with
this illness is that it has no physical
existence. Many people are suffering
without others knowing; they suffer in
silence.
Many people don’t understand the
impact they can have on what others say
and do. It can have such a negative
effect on those who are suffering from a
mental illness. Having personal
experience of mental health issues, I
totally understand how this can affect
your life and that of the people who
surround you.
However, I used my illness as a
motivator. Don’t get me wrong. There
were many times I would struggle to even
get out of bed, but every day I made sure
I had a reason to. One area of my life I
focused my attentions on was my
education and building a career.
Studying became a focus for me. It
stopped me thinking negatively. It gave
me something to aim for. Having been
told all my life that I wasn’t academic or
clever enough, I knew studying would be
wasn’t clever enough. In time this made
me more determined than ever to show
those around me what I could do.
So I enrolled at college and completed
a GCSE Accounting and Computerised
Accounting course successfully. I then
had to make the decision about whether
to carry on and complete my AAT or not.
Voices in my head
The voices in my head said no – you are
not clever enough. But my stubbornness,
determination and the fact I wanted to
prove everyone wrong motivated me to
enrol. Having gained exemption from
Level 2 I completed the course
successfully in less than two years.
Within this time I also set up my own
accounting practice which, 20 years on,
is still trading.
I didn’t stop there! After AAT I decided
to do something I never would have
dreamed of; I trained to become a
teacher. After 15 years I am still teaching
the AAT and still loving it. This career
path became my saviour. While studying
for my teaching degree my illness hit an
to complete my teaching qualification
caused me anxiety and deep depression.
However, teaching is like acting, and
being in front of a class was an act – no
one had a clue what was happening
inside my head. My students and their
success was my focus and all that
mattered in that time in the classroom.
Outside the classroom things were
different, but my motivation grew stronger
and stronger the more I was told that I
would struggle, that it would all be too
much for me, and that I should pack the
course in. However, I proved them wrong.
I did complete my Certificate in
Education and graduated from
Huddersfield University.
Then came the biggest challenge of my
life. Do I enrol onto a BA in Education
and Professional Development? I asked
for advice from certain members of my
family and what was said to me has stuck
with me. Instead of hearing yes, you can
do it, or yes, we are so proud of what you
have achieved, I got told “go ahead if you
want to be the one in the graveyard with

ICAEW
COMPUTER-BASED EX AMS

ACA exams are changing

GUIDANCE AND SUPPORT FOR STUDENTS
The transition to computer-based exams is nearly
FRPSOHWHƓQLVKLQJLQ-XO\ZKHQWKH&DVH6WXG\
H[DPZLOOPRYHWRFRPSXWHU$OO3URIHVVLRQDODQG
$GYDQFHG/HYHOH[DPVDUHQRZFRPSXWHUEDVHG
Find out more at icaew.com/cbe

‘ Practise, practise, practise. The practice

software provided on the ICAEW website is
crucial for computer-based exams. You have
to get used to the software and make full use
out of it. If you can master the software, it can
really help you in answering the exam.’
Ilyana Ibrahim
ACA student

20 PQ Magazine June 2019

 mental wellbeing PQ

n aid mental health? letters after their name but who has not
achieved anything”.
That moment was a turning point for
me. I did enrol but I ended up deferring
due to my state of mind. I then started
my studies again because I realised that
if I completed during a specific academic
year I would graduate at the same
ceremony as my daughter. So although
my motivation for completing changed, it
enabled me to successfully achieve a BA
(Hons) 2:1.
Looking for approval
On reflection, I realised I was constantly
looking for approval from one particular
person in my life. Because this never
came I kept striding for the next
qualification, the next promotion, etc,
and I wouldn’t change it one bit.
Whatever happened has made me who I
am today and I am extremely proud of
my achievements and the work ethic I
have passed on to my children.
Although I will never be free from my
illness I do believe it has helped me
become stronger and it has also enabled
me to understand what triggers my state
of mind and how to avoid those triggers.
Many of the issues I have dealt with
over the years have been caused through
verbal abuse. I really don’t think people
realise what damage they can cause to
others just through what they say and
how they say it. I believe if we all think
before we speak it may just stop
someone who is suffering feeling
worthless and invaluable.
My advice to anyone who is going
through similar issues is to pull on your
strengths and use them to motivate you
into becoming a success. If people
around you are negative towards you
show them you can do it and don’t let
them control your future. Remember, you
may have a bad day and that’s ok
because tomorrow is a new day. Start the
day off positive and show the world you
are worthy of whatever you want. PQ
• The author’s name has been changed

Managing exam stress

Alison Sweeting offers some
pointers on how you can cope
with the anxiety that exams
inevitably bring with them
longer than planned, try to keep to the schedule
and make sure you get plenty of rest.
• Speak to your employer about study leave and
workload if you find you are struggling to keep on
top of everything – they may have support and
resources available to you.
• Remember your tutors are there to help, even
energy – snack on nuts for an instant boost.
• Try to build exercise into your day. Even
something as simple as a 20-minute walk will
recharge your batteries, activate endorphins and
give you some fresh air. You might think this is
taking you away from your revision, but you’ll
come back to your studies feeling energised and

F
eeling tired? Can’t sleep? Wake up in the
middle of the night worrying about
whether you’ve done enough revision?
You’re not alone – in the lead-up to your exams,
it’s very common to feel stressed.
While it’s great that you’re taking your exams
seriously, if you don’t manage your stress
properly it can end up harming your chances of
success – to say nothing of harming your
physical and emotional wellbeing.
So what can you do to manage stress or
anxiety? In the revision period:
• Plan your revision so that you have a clear idea
of what you are going to revise and when.
Allocate time based on your understanding of the
subject and how you’ve performed in practice
tests or mock exams.
• Print out your revision plan and stick it
somewhere to keep track of your progress. Try to
stick to the timings you’ve given yourself.
• Try to revise in a quiet and tidy space. If it
helps, listen to music.
• Take regular breaks and stay hydrated. Try to
avoid caffeine and alcohol – water all the way.
• Tempting as it might be to keep studying for
once your classes are over. Make use of the
forum on CIPFA Learning to discuss problems.
• If you feel it’s all getting a bit much, try some
breathing exercises. This is a simple way to calm
yourself when you’re feeling stressed. You can
find good examples of breathing exercises at
https://tinyurl.com/ycaj6aoz
• Eat properly. It may be tempting to eat lots of
sugary snacks to get that instant burst of energy,
but a sugar high is followed by a sugar low.
Focus on a balanced diet with lots of protein for
refreshed.
During your exams, the above tips still apply –
eat properly, get plenty of sleep, stay hydrated
and remember the breathing exercises when you
feel stressed. Try to avoid last-minute cramming
on the day of your exam, if you can.
At CIPFA, we recognise that students can feel
stressed, especially in the lead up to exams. Our
trainers are always available in the classroom or
online via CIPFA Learning, so students can talk to
their tutor or to the Training Delivery Manager
about any issues.
We are currently working with the CIPFA South
East Student Network to develop a programme of
support that can be rolled out to other areas.
Examples of initiatives we are trialling include a
mindfulness/breathing class during the revision
period and the creation of a CIPFA Learning page
for all students, which will contain wellbeing
information and links to useful resources.
In the meantime, get in touch if you need
advice or support, or with any suggestions for
how CIPFA could better support student health
and wellbeing: Alison Sweeting, Training Delivery
Manager – alison.sweeting@cipfa.org PQ

PQ Magazine June 2019 21

PQ AAT exams

Level Assessment name Short Code Worldwide

AAT RESULTS
AAT has now published its annual pass rates for the
Level 1
Level 1
Level 1
Level 1
Access
Bookkeeping and Accounts
Computerised accounts
Computerised Payroll Administration
AA
BKAC
COPA
CPYA
88.4%
84.7%
93.2%
89.3%
Level 1 Spreadsheets software SPRS 95.0%
year ending 31 December 2018 Access Access to Accounting Software AASW 81.3%
Access Access to Business Skills ABSK 95.1%
Assessments only Level 1/Access Foundation Advanced Professional
Access Access to Bookkeeping ATBK 95.4%
CBA pass rate 91.6% 84.9% 71.8% 62.0%
Foundation Bookkeeping Controls BKCL 74.6%
AAT has four graded qualifications. The table below shows a summary of Foundation Business Communications,
the grades awarded for each qualification between 1 March 2018 and Personal and Learning Skills BPLS 95.1%
28 February 2019. Foundation Bookkeeping Transactions BTRN 88.8%
Foundation Elements of Costing ELCO 93.2%
Qualifications and grades awarded Pass Merit Distinction Foundation Foundation Synoptic Assessment FSYA 84.8%
Foundation Certificate in Accounting 4% 43% 52% Foundation Introduction to Business and
Foundation Diploma in Accounting and Business 10% 71% 19% Company Law IBLW 53.3%
Advanced Diploma in Accounting 26% 54% 20% Foundation Introduction to Payroll INPY 89.1%
Professional Diploma in Accounting 51% 45% 3% Foundation Using Accounting Software UACS 87.3%
Advanced Advanced Bookkeeping AVBK 61.2%
Advanced Advanced Diploma Synoptic Assessment AVSY 61.1%
The latest AAT results are now out there, and it’s good to see the Professional
Advanced Final Accounts Preparation FAPR 77.2%
Diploma Synoptic assessment pass rate is moving in the right direction – it’s
up to 56.7% from 50.9%. There has also been a healthy rise in the CTRM Advanced Indirect Tax IDRX 79.1%
and AVSY pass rates. CTRM pass rates rose to 59.2%, compared with a 50% Advanced Management Accounting: Costing MMAC 83.7%
pass rate last time around. And the Professional Business Tax BSTX 70.3%
Advanced Diploma Synoptic Professional Credit Management CDMT 56.4%
assessment pass rate jumped from Professional Cash and Treasury Management CTRM 59.2%
54.6% to 61.1%. Professional External Auditing ETAU 64.0%
The overall CBA pass rates are also
Professional Financial Statements of
holding steady. At Professional level
Limited Companies FSLC 59.7%
they rose ever so slightly to 62%.
However, these rates are based on Professional Management Accounting: Budgeting MABU 76.2%
the CBAs only and not achievements Professional Management Accounting: Decision
rates for the qualification. and Control MDCL 52.5%
The pass rates are for the year Professional Professional Diploma Synoptic
ending 30 June 2019 will be Assessment PDSY 56.7%
published at the end of September
Professional Personal Tax PLTX 65.6%
2019. PQ

PQ useful apps

Apps that help you work, rest and play

Audio Memos
Love the sound of your
own voice? Audio
Memos is a great app
with a simple to use
voice recorder for those
of you who prefer
auditory learning. The app lets you record
audio, whether that be your lecturer or
yourself reading notes. You can name and
date-stamp your recording for easy organising
as well as customising the recording settings
best suited for your needs. The app is
optimised for phones and tablets, meaning
you get the most out of it when on the move.
One issue is the inability to choose where to
save the recordings. The app only lets you
store the recordings on a device’s native
memory, and won’t let you transfer over to a
memory card. Although this doesn’t seem
like a major problem at first, when you start
piling up the memos, the smaller native
memory of a phone soon fills up. This is
made all the more frustrating by the fact you
can have an additional memory card sitting
empty, but with no way to transfer the
memos over to it. It’s a tarnish on an
otherwise great app.
Catch It
Catch It is an app made
by the universities of
Liverpool and
Manchester and
endorsed by the NHS. It’s essentially a diary,
with the focus being on the user’s mood. You
are asked to state how you are feeling, giving
yourself a mood rating, and then to reflect
upon it. The app then asks you how you feel
you could improve your mood, allowing you
to provide targets and goals for your self-
esteem, happiness, and general mental well-
being. The focus of the app is Cognitive
Behavioural Therapy, which it intends to use
to change your own personal thoughts and
feelings on subjects and events. The App is
a good idea, and is very simple to use, with
an aesthetically appealing interface.
However, it is not for everyone, as this is not
an advice app or a peer-to-peer forum. It’s
purely there for you to reflect on your own
thoughts and feelings, and although
introspective thought can be therapeutic, it
isn’t ideal for everyone suffering from mental
health worries and is definitely not an
alternative to professional medical treatment.
Zombies, Run!
They say the key to a
healthy mind is a healthy
body. Sometimes,
though, it’s hard to find
the motivation to
exercise after a long day at work (especially
if you have exam studying to do as well). So
what if you had to run, for your life?
Zombies, Run! does just that. A little
different to your normal running app, this
one drops you into the centre of an award-
winning radio play, with you as the hero. The
app is a great way to motivate you into
regular exercise. Not only do you get training
with distances and speed, but it’s all hidden
behind some pulpy entertainment. This app
is available on Android and iOS devices.

22 PQ Magazine June 2019


Computer power
O
ver the past two years, the ACA
Professional and Advanced Level
exams have been moving to computer.
ICAEW has delivered over 65,000 exams on the
new platform and the transition will complete in
July 2019 when the Case Study exam moves to
computer.
The move from paper to computer-based
exams marks a new era in exam delivery. Like
anything new, familiarising yourself with the
functionality is important and will help you to
overcome any fears or concerns you may have.
Ilyana Ibrahim, an ACA student from Malaysia,
says her biggest fear going in to an exam was
“the stability of the software”.
She was worried that “the system would crash
in the middle of the exam”, or that questions
would take some time to load “while the timer is
still running”. After sitting her Financial
Accounting and Reporting exam without
problems she no longer has these concerns.
The exams are delivered via a secure, locked-
down application that is resilient to internet
connectivity problems and your answers are
automatically saved as you navigate through
each question. In the unlikely event that your
computer does crash, your exam will
automatically save and you will be able to pick
up where you left off by re-entering your
keycode.
If you feel something has negatively affected
your exam, make the invigilator aware as soon
as possible. They have the ability to pause your
exam while they investigate and, hopefully, fix
the issue. After your exam has finished, make
sure you complete an invigilator report before
you leave the exam room. If the issue wasn’t
resolved, you should also apply for Special
Consideration, but you must do so no more than
10 days after your exam. The Instructions to
Candidates details further information about the
Special Consideration process.
Resize fits all
All computer screens within the exam centres
meet our minimum specifications and
guidelines. While screen sizes may vary, this will
not affect the amount of content visible on
screen. Larger screens will just have more blank
space around the exam software. You will be
able to move and resize the question window to
V2QOLQH&ROOHJHRIWKH<HDU
V/DUJH7UDLQLQJ3URYLGHURIWKH<HDU
V
3DXOLQH6SDUNHV
DZDUGZLQQHU
PQ Magazine June 2019
CBAs are here to
stay – but they
are certainly
nothing to fear
fit side-by-side with the response area.
The software is the same for all Professional
and Advanced Level exams, with the exception
of a couple of buttons; a ‘Formula and Discount
tables’ button for Financial Management and an
‘Exhibits’ button for Corporate Reporting,
Strategic Business Management and Case
Study. The Case Study exam also includes a ‘List
of exhibits and requirement’ button.
Many students prefer to type their responses,
as it can be faster and neater than handwriting.
Ibrahim felt she could finish the exam faster
because she “tends to write really slowly”. In
addition, she said “since I am an
environmentally-conscious person, I love how we
could save so much paper just by moving to the
digital platform.”
Although you will be provided with a pen and
loose-leaf paper to make notes, you are still
expected to show all workings as part of your
response on screen. Ensure that all your
answers are visible and not hidden within cells,
as they will be presented to the examiner exactly
as they appear on screen.
Ensure you’re prepared and confident going in
to your next exam, familiarise yourself with the
practice software and make this part of your
revision process. Ibrahim says her biggest tip
when preparing for a computer-based exam is
“practise, practise, practise. The practice
8VHYRXFKHUFRGH34IRUDQDGGLWLRQDO
RIIDQ\DFFUHGLWHG$$7RU,&%FRXUVH
*(7$//<285'8&.6,1$
52:72'$<
2XWVWDQGLQJVW
WLPHSDVVUDWHV
ICAEW CBAs PQ
software provided on the ICAEW website is
crucial for computer-based exams. You have to
get used to the software and make full use out
of it. If you can master the software, it will really
help you in answering the exam.” Access exam
resources at icaew.com/examresources. For
FAQs, exam tips, support and more on the exam
software visit icaew.com/cbe.
Preparing for the case study
From July 2019, the Case Study exam will be
computer-based. You must practise with the
exam software in advance of your exam, to
ensure you are familiar with the functionality and
formatting on the day of your exam. View the
exam guide which provides an overview of the
Case Study exam software, listen to on-demand
webinars, practise using the blank practice
software or software with sample exams and
explore more at icaew.com/casestudy.
You can also join ICAEW on 19 June, 10:00
(UK-time) at a live webinar, as they talk through
the Case Study exam software, the exam
experience, give top tips and answer your
questions. Email questions to
acamarketing@icaew.com and register your
place at http://bit.ly/CaseStudyOverview. PQ
• Thanks to the ICAEW for this article
Reproduced with the permission of ICAEW, this article was
first published in Vital (December 2018).
340DJD]LQH
,&%
$$7
23
PQ CIMA exam tips
Five tips for success
1) Plan ahead
Structure planning and preparation can increase
your confidence and help you deal with pre-
exam stress. So how can you make sure that
you stay on track?
• Find a study method that works for you.
• Create a study plan to make sure you cover all
areas and have a good understanding of all
syllabus topics.
• Book your exam in advance to keep your focus
and motivation.
• Practice exam style questions.
• Refine your exam techniques and time
management skills.
• Whether you pass or fail, make sure you
understand your results.
The content of the exam is always going to be
unknown, but knowing that you’re well prepared
for it will make you feel more confident when
entering the exam room.
2) Don’t be afraid of failure
It may be hard to believe, but if you happen to
fail an exam it won’t be the end of the world.
And if you do it is important that you don’t
panic, but sit back, reflect on what went wrong,
and identify the steps you need to ensure that
you pass the next time around.
Another way of dealing with failure is to seek
advice from family, friends, a tutor or perhaps a
trusted colleague. Failing an exam can throw
you off balance, but it’s just one if the many life
challenges you’ll face, and there’s always a way
to learn from it.
Keep motivated, don’t be too hard on yourself
and keep in mind that it will all be worth it in the
end.
3) Keep a work-life balance
Juggling your professional studies, your work
and personal life at the same time requires a big
commitment and some serious time
management skills. You’ll need to plan, organise
and prioritise personal, study and work activities
to make everything more manageable both at a
practical and emotional level.
Create a study plan, which includes exam
dates and items such as essential appointments,
family events, time to exercise, planned down
time and holidays. Based on this, you can
identify how much time you have available to
Are you ready to go?
Are you exam-ready?
You need PQ-go.com
24
We know that working towards CIMA exams can generate stress and
anxiety for our students. So here are a few tips to help you take control
and reduce your stress levels, writes Stephen Flatman
study and when you can schedule it in.
Remember that having a plan is great but it
shouldn’t be overly rigid and allow for some
flexibility to accommodate unexpected events.
Make sure you review it regularly to reassess
priorities and reschedule activities.
4) Make the most of CIMA’s flexibility
One of the biggest advantages of studying for a
career in business and finance with CIMA is the
flexibility offered by the exams. You can sit your
Objective Tests on-demand throughout the year
and get your results straight away. In addition
you’ve got some planning room around the four
Case Studies exam windows available a year.
You also have great flexibility
around study options, putting you
in the driving seat and giving you
complete control over how, when
and where you study. For
example, if you like studying with
others and appreciate having a
tutor on hand to answer your
questions, attending a course
with an accredited tuition
provider may be the best option.
On the other hand, if you’ve a lot
of conflicting priorities to juggle,
self-study via online and distance
learning may better suits your
needs.
5) Practice makes perfect
Studying and practising are the
best ways of ensuring that you
are well prepared for, and know
what to expect, when you sit your
exams.
If you’re taking your first
Objective Test or Case Study
exam, take a look at our exam
tutorials – these will help you
familiarise yourself with the exam
including the types of question
you can expect. Don’t forget to try
the question tutorials.
To help you prepare for your exams, you
should also go through past exam papers. This
will give you a general idea of how the questions
are phrased and marks distributed.
If you’re going to sit exams under the 2019
CIMA Professional Qualification (starting in
November 2019) make sure you take full
advantage of our exam blueprints. They set out
in detail what is examinable as well as the
format, structure and weightings of the
assessments for each Objective Tests and Case
Study exams. PQ
• Steve Flatman, VP Examinations at the
Chartered Institute of Management
Accountants
PQ-Go
PQ Magazine June 2019
 *DLQ4XDOLFDWLRQVLQ
YLD2QOLQH6WXG\
Combine the CIMA Advanced
Diploma with a BSc Accounting
Degree, and develop a solid
grounding in both technical
accounting and non-technical
skills required for a successful
professional career.

Start Sep 2019

www.rgu.ac.uk/bscaccountingcima

APPLY NOW

Theeasiest
The easiestway
waytotoget
get your
your free monthly copy copy isis to
togo
goonline
onlineatat
PQ magazine www.pqmagazine.co.uk,ororyou
www.pqmagazine.com, youcan
canfill
fillinin the
the form
form below and send send itit to:
to:
PQ, Unit 3a, Kingfisher Heights, 2 Bramwell Way, Royal Docks, London E168AR
PQ Magazine, 4th Floor, Central House, 142 Central Street, London, EC1V 2GQ

About you Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams
Title...................................................... you are hoping to sit
Applied Applied Strategic
ACCA ▫ CAT ▫ Knowledge
F1-3 ▫ Skills
F4-F9 ▫ Professional
P Papers
First name............................................ CIMA ▫ Certificate ▫ Operations ▫ Management ▫ Strategic ▫ T4
CIPFA ▫ Certificate ▫ Diploma ▫ Strategic
Surname ..............................................
ICAEW ▫ CFAB ▫ Professional ▫ Advanced
Company name .................................. ICAS ▫ TC ▫ TPS ▫ TPE
Tax ▫ ATT ▫ CTA
............................................................
AAT ▫ Level 2/Found
2 dip ▫ Level 3
3/Adv dip ▫ Level
Level 4/Prof
4 dip ▫ Member
Department.......................................... 1B Studying for an accountancy degree/MBA/MSc ▫ Year 1 ▫ Year 2 ▫ Year 3

Full postal address Home ▫ Work ▫

............................................................
............................................................
............................................................
Postcode ............................................
Phone ..................................................
* Email ................................................
............................................................
Do you work in accountancy and finance ▫ Yes ▫ No
If yes, what is your job title? ..........................................................................................................
* How do you want to receive your PQ magazine?
Please tick your preferred mode of delivery for your free monthly magazine.
▫ Online (please supply email address) ▫ By post (UK only)
Sign below to receive your monthly PQ magazine totally free
Sign here ............................................................................Date...........................................................
▫ Please tick here if you do not wish to receive direct marketing promotions from other companies.
PQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms and
conditions of circulation.We will use your details to send you a copy of the magazine and any further information we feel
would be of use.
PQ ACCA June tips
HOT TIPS FOR YOU
What should you expect to see in
the exam paper this June? Here’s
some sound advice from BPP
PM
As all of the syllabus areas can be tested in
sections A and B, the best advice is to study all
areas of the syllabus. Sorry about that – but you
knew that already!
Areas expected to be tested by the examiner
in section C include (but are not limited to):
budgetary systems, planning and operational
variances, mix and yield variances and
evaluation of the company performance (either
as a whole or on a divisional basis). Given that
this is a performance management paper you
would be advised to be prepared to evaluate
some performance.
Candidates are told to expect the unexpected,
and since the introduction of MCQs this advice
is even more critical because more topics can
be tested.
The exam will be approximately 40%
calculation and 60% discussion, meaning it is
not sufficient to be able to perform all the
calculations to get a pass here.
TX
Expect a couple of the OTs in section A to be
devoted to the administration of income tax and
corporation tax. That means you have to be
comfortable with the following:
• Due dates for payment of income tax
(payments on account).
• Due dates for the payment of corporation tax
(instalments for large companies).
• Filing dates for the income tax and corporation
tax returns.
• Penalties and interest for late payments and
returns.
Also likely to be tested in section A are the
following:
• VAT rules on registration, impairment loss (bad
debt) relief, and the SME schemes relating to
cash accounting, annual accounting and flat-
rate schemes.
• Inheritance tax due on lifetime transfers both
in the donor’s life and on death.
• Statutory residence tests for individuals.
• Identification of groups of companies for
Free Notes, Lectures, Tests & Tutor support for
ACCA & CIMA
Exams
Visit OpenTuition.com to benefit
26
corporation tax loss reliefs and gains.
• Trading loss reliefs for both companies and
sole traders.
In section B, the exam questions will be
similar to those of section A – only longer! This
means you need a slightly different exam skill-
set here. Section C will have much more open
requirements. Your answers will need to show
not just sound technical knowledge but also the
application of that knowledge. The examiner has
also asked for more logical presentation so
markers can follow your thought progress.
Spend at least 50% of your revision time on
answering section C questions in the practice
and revision kits.
Learn your income tax and corporation tax
proformas. Any calculations that require no
more than two or three entries into your
calculator can be included on the face of your
proforma (eg time apportioning a salary).
Calculations that are more complex (eg
company car benefits) need separate workings,
which are properly referred (W1, W2, etc) and
have a heading.
We know the two longest questions will focus
on income tax and corporation tax. These are
likely to include:
• Employment benefits.
• Property income.
• Relief for pension contributions.
• Adjustments to profit to arrive at trading
income for both companies and sole traders – in
past sittings we have seen a number of
questions where you have to correct errors in
computations included in the scenario.
• Capital allowance computations.
FR
Section A’s OTs will test a wide range of topics,
including several on consolidation and
interpretation of financial statements. Expect a
few questions on non-core areas (inflation,
specialised entities).
In section B, each scenario could be a mix of
topic areas or focused on one topic and will
usually consist of two or three calculations and
two or three narratives. Questions are not
dependent on each other and can be answered
in any order.
Section C consists of two 20-mark questions,
one covering interpretations and the other
preparation of financial statements. One
question is likely to be in the context of a single
company and one in the context of a group – so
you could have a single company interpretation
and a groups preparation, or visa versa.
Accounts preparation questions may include
extracts or stand alone calculations or full
statements of profit or loss and other
comprehensive income and/or statement of
financial position. Both questions will cover the
accounting for items from other areas of the
syllabus.
They may also include a short separate part,
for example with a statement of changes in
equity, statement of cash flows extract, earnings
per share calculation or linked written topic.
A consolidated question would include one
subsidiary and often an associate, with
adjustments (eg fair values, deferred/contingent
consideration, PUP on inventories/PPE,
intragroup trading and balances, goods/cash in
transit).
A single entity question could be preparation
from a trial balance or restatement of given
financial statements, with the usual adjustments
for depreciation, revaluation and current/
deferred tax (including deferred tax on
revaluation), plus a mixture of adjustments on
other syllabus areas, eg leases, substance over
form issues, financial instruments (charge in fair
value or amortised cost), share issues,
government grants, inventory valuation, revenue
recognition or construction contracts.
AA
In section A, each mini-case question will test
single topic areas of the syllabus and so will test
syllabus area A, B, C, D or E. You should
particularly expect questions in section A to
focus on syllabus areas A and E.
For Section B, Q16 to Q18 expected areas to
include:
• Audit planning.
• Audit risk (identification and explanation of
audit risk from a scenario and explanation of the
auditor’s response to each risk).
• Internal audit.
• Internal controls (identification and explanation
of deficiencies in internal control and the
recommendation of suitable internal controls or
description of tests of controls).
PQ Magazine June 2019

• Audit procedures (both substantive procedures
and tests of control).
Try to use a tabular format in your solutions
where relevant as the examining team has said
students who do this score better.
FM
In section A, the OTs will often be knowledge
based (testing your knowledge of key technical
terms) and will balance out the questions in
section B and C. So expect a good number of
these questions to test your understanding of
financial management and objectives (ratio
analysis, the concept of shareholder wealth), as
well as the economic environment and financial
institutions topics (financial intermediation, fiscal
and monetary policies). The efficient market
hypothesis is also likely to be tested.
Areas to expect in section B are working
capital management (operating cycle, the impact
of a change in credit period, or accepting a
factor’s offer), business or security valuations
(methods of valuation), and financial risk
management (currency risk or interest rate risk).
The two questions in section C will focus
mainly on syllabus sections C, D and E. That’s
working capital management, investment
appraisal (think NPV with inflation and tax here),
and business finance – an evaluation of
financing options (interest coverage and gearing
ratios are likely), or cost of capital and analysis
are most likely. Whichever of these topics does
not feature in section C is likely to appear in
section B.
SBL
Welcome to your first four-hour closed exam.
SBL aims to build on the knowledge that you
gained at the Applied Knowledge and Applied
Skills level, but also has its own distinct syllabus
content.
The exam will focus on one main organisation,
and all the question requirements will relate to
this organisation. You may, however, have to
take on a variety of roles, which may require you
to adopt an internal or external perspective when
answering the question.
All of the questions are compulsory and will
consist of 80 technical marks and 20
professional skills marks.
ACCA acknowledges that the SBL exam is
demanding, and time management is a key part
of any exam success strategy. You are advised to
PQ Magazine June 2019
spend 40 minutes reading, planning and
interpreting the requirement and the
information/exhibits provided. That leaves 200
minutes to build up your 50% pass mark.
One area students often fall down on is
producing lots and lots of unnecessary
calculations. By planning the numerical analysis
that you intend to perform will ensure you aren’t
producing numbers just for the sake of it.
SBR
You should start by reading the examiner’s
approach article on the ACCA website, and while
you are there read any other exam technique
and technical articles.
In section A, the first question will be based
on group accounting and may include
complications such as a foreign subsidiary,
discontinued activities, disposals and/or
acquisitions. Be aware that this question may
test consolidation statements of cash flows, as
was the case in December 2018.
The second question will cover the reporting
and ethical implications in a given scenario.
Make sure you consider any threats to the
fundamental principles of ACCA’s Code of Ethics
and Conduct in your answer.
Section B will always include a question or
part-question involving the analysis or appraisal
of information from the perspective of a
stakeholder. In the December 2018 exam this
involved explaining the nature of tax accounting
in the financial statements to an investor. Even if
this sounds daunting, make sure you have a go
at answering it.
Current issues could be examined in either
section A or section B. The Conceptual
Framework and associated exposure draft have
featured a lot in both the September 2018 and
December 2018 exams – be prepared for this to
be the case in June 2019 as well.
AFM
From last September every exam has had
questions, which focused on section B of the
syllabus (advanced investment appraisal) and E
(treasury and advanced risk management
techniques). These areas are therefore a high
priory for your revision phase.
Section A questions are often based on core
areas such as project appraisal (domestic or
overseas), business valuations and business/
financial reorganisations. These areas often
ACCA June tips PQ
include cost of capital calculations. Risk
management may also feature in a number of
different ways, eg value at risk, real options,
hedging or risk mapping.
For section B the tips are:
• Risk management (currency or interest rate).
• Dividend policy and general financing issues.
• Real options.
APM
Question 1 focuses on a range of issues from
syllabus area A (strategic planning and control),
C (performance measurement systems and
design) and D (strategic performance
management).
In recent exams Q1 has often required linking
a business’s mission to its performance
objectives using the concept of CSFs and KPIs.
You may well also have to critique and
recommend improvements to performance
reports and the balanced scorecard could well
be tested in this context. The assessment of
performance is also likely to be tested and this
could easily include benchmarking as a theme.
Financial performance measures
(ROCE/RI/EVA, etc) are also likely to be
commonly examined in question 1, but don’t
neglect non-financial issues from syllabus
section D, such as quality management and
reward systems.
One of section B questions will come from
syllabus section E (performance evaluation and
corporate failure). In section B, commonly tested
areas include quality management, information
reporting (big data and lean information), the
application of strategic models (PEST, Porter’s 5
forces, the value chain), HR frameworks (reward
and appraisal systems), risk management and
environmental management accounting.
ATX
One of the section A questions will focus on
personal tax issues and the other will focus on
corporate tax issues. In question 1 there will be
four professional skills marks and in section A
there will be five marks available on ethics.
Topics/scenarios you would expect to see are:
• Personal income tax scenarios, which could
involve investing in a pension, investing in EIS,
SEIS or VCTs, share schemes, employment
income possibly with termination payments, a
personal service company, property income or
takeover.
• Unincorporated business, particularly
including loss reliefs, partnerships or basis
period rules.
• A question focusing on overseas issues. This
could be income tax, CGT, IHT or a corporate
scenario.
• CGT v IHT, including availability of reliefs.
• Corporate scenarios – likely to focus in more
depth on intangibles, research and development
issues, corporate groups or consortia.
• Special corporate scenarios such as liquidation
purchase of own shares, close or investment
companies.
• A business transformation scenario question,
such as selling a sole trader business,
incorporation or, in a corporate context, the sale
of shares versus the sale of trade and assets.
• Other common types of question/calculations:
Continued on page 28
27
PQ ACCA June tips
What words mean
If the question says ‘analyse’ you will need to
break the question down into separate parts and
discuss, examine or interpret each part.
A key ACCA tip: Give reasons for the current
situation or what has happened.
If the question says ‘apply’ you will need to put
into action pertinently and/or relevantly.
A key ACCA tip: Properly apply the
scenario/case.
If the examiner wants you to ‘assess’ you will
need to judge the worth, importance, evaluate or
estimate the nature, quality, ability, extent or
significance of what is being asked.
A key ACCA tip: Determine the strengths,
weaknesses, importance, significance, and
ability to contribute.
If the question asks you to ‘calculate’ you will
need to ascertain by computation, to make an
estimate of, evaluate, and perform a
mathematical process.
A key ACCA tip: Provide description along with
numerical calculations.
If the question says ‘comment’ you will need to
remark or express an opinion.
A key ACCA tip: Your answer should include an
explanation, illustration or criticism.
If the question wants you to ‘compare’ then you
need to examine two or more things to identify
similarities and differences.
A key ACCA tip: Clearly explain the
resemblances or differences.
If the question says ‘conclusion’ you will need to
provide the result or outcome of an act or
process or event, final arrangement or
settlement.
A key ACCA tip: End your answer well, with a
clear decision!
If the question says ‘criticise’ then you need to
present the weaknesses/problems, and evaluate
the comparative worth. Don’t explain the
situation, instead analyse it.
HOT TIPS FOR YOU
Continued from page 27
– reviewing a pre-prepared computation to
spot, explain and correct errors.
– calculations such as “tax saved through an
action”, “after tax proceeds”, “the value of a
post-tax inheritance”, “net spendable income”
or the “net of tax cost of something”.
When it comes to VAT, expect to see marks
available for partial exemption, land and
buildings, transfer of going concern, capital
goods scheme, overseas VAT, and
registration/group registration.
There will also likely be a couple of marks for
stamp duty points, and finally don’t forget the
basic administration points – when do we need
to pay tax, when do we file a return and that if
either of those are late.
28
The ACCA recently provided PQs
with definitions of the common
verbs used by examiners in their
papers. Here they are again…
A key ACCA tip: Criticism often involves
analysis.
If the question says ‘define’ you need to give the
meaning, and that’s usually a meaning specific
to the course or subject!
A key ACCA tip: Explain the exact meaning
because usually definitions are short.
If the question asks you to ‘describe’ you have to
give a detailed account or key features. That
means listing characteristics, qualities and parts.
A key ACCA tip: Make a picture with words,
identification is not sufficient for the examiner
here.
If the examiner asks you to ‘discuss’ you must
consider and debate/argue about the pros and
cons of an issue. This means you have to
examine in detail by using arguments in favour
or against.
AAA
The most recent AAA exams have not contained
any real surprises, although you should note the
presentation of the embedded email and the
supporting exhibits in the case study.
Section A’s case study is set at the planning
stage of the audit for a single company, a group
of companies, or potentially several audit clients.
Expect the detailed information to include
extracts of financial information, strategic,
operational and other relevant information for a
client business, as well as extracts from audit
working papers, which could include the results
of analytical procedures.
Candidates will have to address a range of
requirements from syllabus sections A, B, C and
D. This will, be a real-world situation where you
A key ACCA tip: Write about any conflict,
compare and contrast.
If the examiner wants you to ‘evaluate’ you must
determine the scenario in the light of the
arguments for and against.
A key ACCA tip: Mention evidence, case, point,
and issues to support your evaluation.
When it comes to ‘explain’ make an idea clear.
Show logically how a concept is developed. Give
the reason for an event.
A key ACCA tip: Don’t just provide a list of
points, add in some explanation of the points
you are discussing.
If you need to ‘illustrate’ then give concrete
examples. Explain clearly by using comparisons
or examples.
A key ACCA tip: Add in some description.
If you are asked to ‘interpret’ you must comment
on, give examples and describe relationships.
A key ACCA tip: Include explanation and
evaluation in your answer.
If the examiner wants to see a ‘list’ then list
several ideas, aspects, events, things, qualities,
reasons, etc.
A key ACCA tip: This isn’t a time to discuss –
just make a list!
If an ‘outline’ is called for then describe your
main ideas, characteristics or events.
A key ACCA tip: Briefly explain the highlighted
points.
If you need to ‘recommend’ you are being asked
to advise the appropriate actions to pursue in
terms the recipient will understand.
A key ACCA tip: Give advice or counsel.
If the examiner says ‘relate’ you must show the
connections between ideas and events.
A key ACCA tip: Relate to real time examples.
If the question says ‘state’ then explain precisely.
A key ACCA tip: Focus on the exact point.
Finally, if you are asked to ‘summarise’ try to
give a brief, condensed account. Include a
conclusion and avoid unnecessary details.
A key ACCA tip: Remember to conclude your
explanation. There are marks in it! PQ
will need to address a range of issues
simultaneously in relation to planning, risk
assessment evidence gathering and ethical and
professional considerations.
In section B, one question will always
predominately come from syllabus section E, so
you must always be ready to answer a question
relating to completion, review and reporting.
Think here about the assessment of going
concern, the impact of subsequent events,
evaluating identified misstatements and any
corresponding effects on the auditor’s report.
Candidates may also be asked to critique an
auditor’s report or a report that is to be provided
to management or those charged with
governance.
The other section B question can be drawn
from any other syllabus area – A, B, C, D and F.
Syllabus section G on current issues is unlikely
to form the basis of any question on its own, but
instead will be incorporated into the case study
or either of the section B questions. PQ
PQ Magazine June 2019

Time for
a quiz?
CIMA has launched a learning resource
centre and fundamental series to help
all finance professionals take
advantage of the growing opportunities
emerging technology presents.
It is providing free learning
resources on the ‘fundamentals’ of
digital disruption – automation,
blockchain, cyber security, data
analytics and ethics.
Designed to help develop a digital
mindset, the topic blocks come on
stream from April through to October
2019. A quiz for finance professionals
is also available to test your current
level of knowledge and see how you
compare with their peers. Go to
https://quiz.cgmastore.com/
The first set of resources cover
Automation and provide a great
understanding of Robotic Process
Automation (RPA). Building on the first
theme of digital disruption, new
resources will become available on:
blockchain (May); cyber security
(June); data analytics (July); and ethics
and the challenges posed by new
technologies (October).
The full resources (free to students
and professionals) on the A, B, C, D of
digital finance can be found at:
https://www.cimaglobal.com/Future/res
ources/#article1
Call me Mark
Women make up just a quarter of the
executive boards at the top 25
accountancy firms, although they make
up 44% of full-time accountants.
Research by recruitment platform,
Real Links discovered that only two of
the top 25 firms’ boards are (nearly)
equal in their gender split, and a
further six boards were only one-third
women. Four executive boards had no
women at all. The study also found that
of the 10 most common names on
executive boards Mark, David and
Andrew are the three most common.
The ‘top’ female name, Sarah, comes in
at tenth spot. And out of the top 20
most common names, only two female
names appeared.
PQ Magazine June 2019
Life at Small Business Accountancy
James McDowell, 42, is an accountant based in Brighouse, West Yorkshire. He has
worked for the firm for six years and has just completed the AAT qualification. James
was recently crowned PQ magazine’s Distance Learning Student of the Year!
What time does your alarm
clock go off on a working
day? 6.30. My wife insists on
setting it to go off early. I then go
back to sleep for an hour.
What’s the first thing you do
when you get to your desk? I
check my emails, deal with any
queries and adjust my plan for the
day based on the emails received.
What’s on your desk? A lot.
What’s the best thing about
where you work? I work from
home and so the best thing has to
be the convenience and flexibility.
Where’s your favourite place
to go for lunch? I usually eat a
sandwich or something light at
home. Then I might go for a walk
to get some exercise. Sometimes I
grab a sub at Subway.
What (or who) can you see
when you sit at your desk? A
nice view over Brighouse, and the
surrounding hills.
In brief
Flexible workers don’t shirk
Professionals with the
freedom to work flexibly tend to
work longer hours than those
with more rigid hours, according
to new research. It appears those
who are able to determine their
own schedules work harder to
compensate for the stigma
attached to flexible hours. It’s all
those raised eyebrows from
colleagues when you tell them
you are working from home!
Time to toughen up
It turns out that the nicer
The PQ Book Club: books you should read
Live Like a Stoic by Massimo
Pigliucci and Gregory Lopez
(Rider Books, £12.99)
First up, what is stocism?
According to a well-known
online encyclopedia, “Stoicism
teaches the development of self-
control and fortitude as a means
of overcoming destructive
emotions; Stoicism involves
improving the individual's
ethical and moral well-being: ‘to
be free from anger, envy and
jealousy’.”
The authors have set out an
action plan in 52 chapters
designed to ‘cultivate a good
Which websites are your
favourites and why? Any
website that’s relevant at the time.
Which websites do you use
for work? I use HMRC (gov.uk)
almost every day, plus aat.org.uk
and icpa.org.uk.
How many hours a week do
you spend in meetings? It
depends on the time of year.
During busier periods I can have
several meetings a day while at
quiet times I might have one or
two a week.
What time do you leave the
office? I tend to break for tea
and then go back into the office to
do a bit more. Otherwise I find
myself watching early evening TV
and feel like I’m wasting my life.
How do you relax? Weight
training helps me to blow off
steam. When I do finally finish
work for the day, I like nothing
better than to watch TV and
you are, the more likely you are
to face financial difficulties.
According to research conducted
by Sandra Matz, from the
Columbia Business School, and
Joe Gladstone, from University
College London, people who
show more ‘agreeable’ traits are
roughly 50% more likely to suffer
bankruptcy. The researchers
believe this could be down to the
fact that people who tend to be
more trusting, modest,
sympathetic and altruistic put
less of a value on money than
their less agreeable counterparts.
life’ – one for every week of the
year. But this is no
philosophical treatise; each
chapter demands the reader
tests themselves and records
their repsonses to that week’s
exercise.
The book is organised around
the three founding tenets of
Stoicism: desire, action and
assent. As the authors explain,
Stoicism is one part theory to
nine parts practice. That means
the onus is on the reader to
absorb the authors’ lessons and
then self-examine, develop and
grow. To help and inspire, there
careers PQ
snack. Being outside in the
countryside on a summer’s day is
great, too.
What’s your favourite tipple?
A nice pint of bitter or a glass of
red wine – only occasionally.
What is your favourite TV
show? I’m a big fan of box sets. I
don’t really have a favourite.
Summer or winter? Summer.
It’s good to be able to get the kids
out to play on an evening.
Pub or club? Pub. I would pay
good money not to have to go to a
club.
Who is your hero? My
grandfather. Looking up to a role
model at a young age can be a
powerful thing.
If you had a time machine,
where would you go? Should I
go and get next week’s lottery
numbers? But that wouldn’t be
ethical, would it, so obviously I
wouldn’t do that!
Time for a pay rise
Men are less afraid to ask
for what they want from an
employer, says a new survey from
CV-Library. Some 55% of men
said they would negotiate on a
job offer, compared with just
42% of women. Male workers are
also more likely to ask for a pay
rise (64%), with just 43% of
women feeling comfortable about
doing so. And women are less
concerned about their job title;
nearly a third of men (30%) say
the job title is the most important
part of a job offer.
are extensive
quotes from
some of the
practitioners of
the philosophy,
including
Seneca,
Epictetus, and
Marcus Aurelius.
PQ rating 4/5 Control is the
central concept of Stoicism –
learning to use your emotional
and intellectual energy to
dealing with the things you can
control, and not fixating on
things you can’t. This book will
help you achieve that.
29
PQ got a story, funny or serious, you want to share? Email graham@pqaccountant.com
SPINNING
RECORDS
Jax Jones, the international multi-
platinum musician who has been both
Grammy and Brit nominated, was once
an aspiring accountant! That’s right, the
London DJ, producer and songwriter
behind such songs as Breathe, You Don’t
Know Me, and Ring Ring once studied to
be an accountant. Jones, real name
Timucin Lan, trained in accountancy
while honing his DJ skills. He even
turned down an interview at Oxford
University to attend Brunel, which meant
he could closer be to the Brixton music
studio where he was learning the ropes.
Despite studying accountancy at
university, Jones states that he “has
never had another job” (except from a
two-week stint as a Christmas temp for
M&S), and has been making a living from
music the entire 10 years since he left
university at 21. Let’s hope he’s got
himself a good qualified accountant!
TWITTER USAGE
ON INCREASE
Twitter recently
unveiled a three-fold
first-quarter profit
increase. Revenue
jumped to £606m to
the three months to
March and net profit
soared to £147m. Daily users also rose to
126 million – that’s up 6%. Twitter, which
was founded in 2006, is now valued at
£23bn. There is someone who isn’t
happy though! President Trump, who has
nigh on 60 million followers said Twitter
does not “treat me well as a Republican”
and was “very discriminatory”.
’
WEV E
Stick yourself happy
We are giving you the chance to win one of
Esmeee Rotmans’ sticker-by-number picture
books. It will help you boost your happiness
levels by taking some time out to play and be
creative. Accompanying each of the 14
projects are insights on happiness and a
chance for reflection.
To be in with a chance of winning one of the
three books we have to give away send your
details to graham@pqaccountant.com. Head
up your email ‘sticker happy’.
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 7 June. The main draw will take place on Monday 10 June 2019.
TO ENTER THESE GIVEAWAYS EMAIL GRAHAM@PQACCOUNTANT.COM
30
OUR CARBON DEBT
The UK government was recently
accused of some “very creative carbon
accounting” by Greta Thunberg. The
16-year-old activist from Sweden
founded the school climate strikes and
was recently in Westminster to give a
speech to MPs. Thunberg claimed that
the Britain had a “mind-blowing
historical carbon debt” because of the emissions it has poured
out since the start of the industrial revolution 200 years ago.
She explained that the 37% reduction in emissions in the past
30 years was in fact just 10% when aviation, shipping, imports
and exports were counted properly.
WRONG
ACCOUNT
The Sunday Times’ Prufrock cartoon
FOR CASH
The Oxford
recently took the theme of the CMA’s
University
audit recommendations to show just how
Computer Society’s
angry the Big 4 are getting!
accounts
department was
HE’S BACK!
Tick, the accountancy super-hero, is
stumped recently
when it discovered
an unexpected
windfall of
back. Season 2 of the show is now being
broadcast on Amazon Prime. Tick and
£105,520 in its
bank account. The
Arthur have apparently freed the City
from The Terror, but now has new villains
society tracked
down the source of
and old enemies to contend with. Watch the money –
out too for Tinfoil Kevin and Overkill. All Deepmind, the
we can say to that is “Spooooooon!” London-based AI
research subsidiary
of Google! EVERYONE LOVES
Compsoc treasurer
Ben Slater thinks
AN ACCOUNTANT!
the money should It appears accountants are on the up,
according to Grazia’s ‘Chart of Lust’. It
have gone to the
revealed following some questionable
Department of
choices in past husbands/boyfriends/
Computer Science
fathers to her children that Khloe
to fund a
Kardashian has resolved: “I should start
scholarship.
to date accountants.” As PQ magazine
Deepmind has not
said: “Isn’t it always!”
commented.
GOT THE L OT
Essential detox
We are giving you the chance to change
your ways with The Essential Digital Detox
Plan. This self-help book encourages you
to step back from your screens and
devices and breathe in the air around you.
It’s full of step-by-step programmes to help
you improve and refocus your mind.
Send us your name and address to be
entered for this lucky dip. There will be
three lucky winners of this giveaway.
Head up your email ‘digital detox’.
PQ Magazine June 2019
Your jobs board
I need to find
pqjobs.co.uk now!

PQ jobs pqjobs.co.uk
 21 YEARS 91%
Celebrating 21 Years
of StudentsÕ Success of all students pass
their course with a
merit or distinction

99%
of students on the
foundation level pass
their course with a
merit or
distinction

Our pass rates

are significantly
higher than the
worldwide
average
ENROL TODAY ONTO OUR

MULTI-AWARD
WINNING “I am extremely happy with the support and quality
of training resources provided by Premier Training. My
queries are always dealt with quickly and assignments are
marked.swiftly with excellent feedback.”
AAT COURSES - J Singh (AAT Foundation
tion C
Certificate in Accounting)

@ info@premiertraining.co.uk Premier Training has been shortlisted for four AAT Awards

01469 515444

Training Provider Training Provider Training Provider Training Provider

premiertraining.co.uk AWARDS 2019 AWARDS 2019 AWARDS 2019 AWARDS 2019
Shortlisted Shortlisted Shortlisted Shortlisted

Innovation in course Large training

Tutor of the Year AAT Champion
design and delivery provider of the year