26 january 2011

Stress management
coping strategies for
study and work

examinable documents
relevant for june 2011

workplace essentials

growing
your skill set
FROM JANUARY 2011...
Choose the only study materials
reviewed by ACCA examiners.
At BPP Learning Media we ensure that our specialist knowledge
of the exams is clearly reflected within our study materials,
making them concise and easy to use.
Our exceptional standards and quality materials have earned
BPP Learning Media the exclusive accolade of ACCA Platinum
Approved Learning Partner – content, giving you the added
assurance that you are using the best study materials available.
You deserve world-class study support, so choose
BPP Learning Media – because you’re serious
about your exam success.

For your nearest stockist and to order online visit

www.bpp.com/worldclass
or email learningmedia@bpp.com
4 cOntents
dispatch
06 GRAPHIC NEWS Cathay Pacific forecasts record
profits; Singapore consumer confidence; Infosecurity
fears rise as Web 2.0 takes off; Big Four Malaysian
workers’ paradise awards
08 News roundup Global finance and accounting news

features
20 start as you mean to go on
Stress and stressful situations can affect us all.
Student Accountant gives you some top
tips for avoiding work and study stress
22 putting down roots
Developing essential workplace
skills early in your career will set you
in good stead for your future
career plans

learning centre
10 accountancy futures Audit and society 14 obu bsc degree RAP prizewinners
11 The view from HONG KONG Mike Walsh, Asiajet 16 alp- c New approved publisher programme
12 WEbwatch Speed reading for study and work 18 working life Students working at B&Q, UK

services directory download article pdfs

Click here to find out about the services offered Wherever you see the download icon , click on it
by ACCA Approved Learning Partners and to download a PDF file of the article which can be
subscribers to the ACCA Tuition Provider directory read offline and printed off to help you with your studies
 Welcome to Issue 02/2011 of student accountant
Please email studentaccountant@accaglobal.com with your feedback on this issue
technical
27 technical articles
value added tax: part 1
Relevant to ACCA
Qualification Paper F6 (UK)
how to account
for property
Relevant to ACCA
Qualification Papers F7
and P2
business
forecasting
and strategy
Relevant to ACCA
Qualification Paper P3
capital taxes
Relevant to ACCA
Qualification Paper P6 (UK)
changes in
question style for
paper P7
Relevant to ACCA
Qualification Paper P7
An online archive of
Student Accountant
technical articles
is available at: www.
accaglobal.com/
students/student_
accountant/archive/
Online resources:
www.accaglobal.com/
students/cat
www.accaglobal.com/
students/acca
RESOURCES
31 noticeboard
Essential
information
about ACCA and
your studies
ACCA Connect
contact details, annual
subscription and exam
fees, June 2011 exam
timetable, exam entry,
what’s your story? Student Accountant,
Why did you want to become an accountant, and and OBU BSc (Hons)
what do you hope to be in the future? Email your
story to us at studentaccountant@accaglobal.com
Mark Gold
President
Dean Westcott
Deputy President
Barry Cooper
Vice President
Helen Brand
Chief Executive
Editorial Team
Victoria Morgan
Editor
Jamie Ambler
Editorial Consultant
Jackie Dollar
Art Editor
Richard Gooding
Designer
www.accaglobal.com
Glen Patterson
Online Editor
29 Lincoln’s Inn Fields London
WC2A 3EE
United Kingdom
tel: +44 (0)20 7059 5700
email: info@accaglobal.com
www.accaglobal.com
publishing and Advertising
Adam Williams
Head of Publishing and Commercial
Anthony Kay
Production Manager
For all advertising-related matters please
contact Lisa Peake:
tel: +44 (0)20 7902 1224
email: lisa@educate-direct.com
Published by the Certified Accountants
Educational Trust in cooperation
with ACCA.
The Council of ACCA and the publishers
do not guarantee the accuracy of
statements made by contributors or
advertisers, or accept any responsibility
for any statement which they may make in
this publication.
No part of this publication may be
reproduced, stored in a retrieval system,
or transmitted in any form or by any means,
electronic, mechanical, photocopying
or otherwise, without prior written
permission of the publishers. © CAET 2011
ISSN 1473‑0979
 6 dispatch
higher-flier feelin’ good
Two years after the Consumer confidence
global aviation crisis, in Singapore has trebled
Cathay Pacific has HK$4.69bn HK$12.5bn in the past 12 months, 31.2 86.6
forecast record profits. 2009 2010 according to MasterCard. 2009 2010
graphic news
infosecurity fears rise as web 2.0 takes off
Cloud computing and social networking are on the rise, heightening business risks, respondents tell
Ernst & Young’s annual Global Information Security Survey

60%
of respondents believe they are facing a heightened level of risk from the use of social networking, cloud
computing and personal mobile devices in the enterprise.

46%
of respondents say their annual investment in information security is increasing.

30%
of respondents say they have an IT risk management programme in place that addresses the increasing
risks related to the use of new technologies.

1 Ernst & Young big four win

2 Pwc malaysia malaysian workers’
3 KPMG paradise awards
The Big Four’s Malaysian practices
4 Deloitte have been voted by Malaysian
5 IBM Malaysia graduates as the best places to work
in the Graduate Employer of
6 Shell malaysia the Year awards.
7 Sime Darby
8 CIMB Group
9 Bank Negara malaysia
10 AirAsia
 Kaplan Publishing study materials –
more than just books.

Kaplan Publishing’s combination of student-friendly ACCA study materials and innovative online
resources are designed with one thing in mind, to help you pass first time.

Exam-focused materials Written by our expert tutors

Reflecting how topics are taught in the classroom, Written by subject specialists who are also experienced
covering the entire syllabus, focusing on what will be tutors, so they know what works for students and how
required of you in the exam. best to deliver it.

Student-friendly Innovative solutions

Using accessible language and engaging formats, More than just books, our study materials are
Kaplan simplifies the learning process to make it enhanced by a wealth of free online resources to aid
easier for you to succeed. learning and help you fit study into your life.

Find out more about our range of ACCA study materials

www.kaplanpublishing.co.uk/morethanbooks
+44(0)113 200 6375 quoting code KP03
flexiblelearning@kaplan.co.uk

2339_f11_acca_study_materials_sa_advert.indd 1 20/12/2010 14:29

 8 dispatch
01 new acca members
celebrate in russia
On 26 November 2010 ACCA
Russia’s 62 new members (who
became members between 15 June
news roundup
and 15 September) were given
their membership certificates. The
ceremony took place in the Davos
Hall of the Swissotel Krasnye
Kholmy in Moscow.
The new members received
their membership certificates
from Leonid Shneidman, Head
of the Regulatory Department
for government financial control,
audit and accounting in the
Ministry of Finance of the Russian
Federation. Mr Shneidman said
that ACCA in Russia has come
a long way in 10 years – now
ACCA members work not only
in the Big Four, but in large
companies in different sectors:
oil and gas, banks, retail etc.
ACCA is becoming more and more
influential in Russia and its role
grew significantly after the new
law on consolidated statements
was adopted in August 2010.
Mrs Gryaznova, Chairman
of the Unified Certification
Commission of Auditors,
congratulated the new members,
saying that she was happy to see
so many young and lively faces and
wished them harmony and balance
between work and personal life.
She concluded, saying: ‘I wish you
in your future life to be happy when
you leave for work each
morning and happy when
you leave work for home
in the evening.’
02 iia forms
oversight council
The Institute of Internal Auditors
(IIA) has formed a global internal
oversight body – the International
Professional Practices Framework
(IPPF) Oversight Council. It
will develop guidance within
IPPF for internal audit
professionals and will also
petronas towers
face rival
Malaysian prime minister
Najib Razak has brushed
aside criticism from
ex-premier Tun Dr
Mahathir Mohamad about
the proposed 100-storey
Warisan Merdeka, arguing
for the mega project to
be judged on a long-term
basis instead. After initially
supporting the project,
Mahathir said the US$1.6bn
Warisan Merdeka tower
would eclipse his brainchild,
Kuala Lumpur’s iconic
88-storey Petronas Twin
Towers. More than 263,000
people have signed up to a
Facebook petition against
Najib’s skyscraper plan,
saying that taxpayers’ money
would be better spent
on education, healthcare
and public transport. ‘I
would like to retain the
Twin Towers as the highest
buildings in Malaysia,’
said Mahathir, who retired
in 2003 after 22 years
in power.
evaluate the IIA’s standard-setting
processes. Among organisations
represented by the Oversight
Council are the International
Federation of Accountants,
World Bank and Organisation
for Economic Co-operation
and Development.
03 sec and fsa unite
on  regulation
The US Securities and Exchange
Commission (SEC) and the UK
Financial Services Authority
(FSA) have met to discuss
how to improve transatlantic
financial regulation. Topics
discussed by SEC chair Mary
Schapiro and Lord Turner of
the FSA included oversight of
over‑the‑counter derivatives
trading, high‑frequency trading,
recent regulatory initiatives
regarding credit ratings agencies
and cross‑border enforcement
information-sharing. They
confirmed their commitment
to working together to improve
regulation and oversight of their
securities markets, particularly
with regard to globally active
regulated firms that have a
presence in both the US and UK.
04 HK revises
growth forecast
Hong Kong’s economy remained
robust in the third quarter,
with GDP growth stronger than
expected at 6.8%, but the South
China Morning Post reported that
economists warn of a rising risk
of inflation and an asset-market
bubble. The government revised
its full-year growth forecast to
6.5% from between 5% and 6%
predicted earlier. ‘Overall, the
figures are encouraging,’ said
government economist Helen
Chan. ‘But risks are still with us.
Apart from the weak recovery
in America and Europe, the new
round of quantitative easing
in America is a new risk.’
 student accountant issue 02/2011
05 singapore keeps
eye on it
Singapore’s Auditor General
Office will re-prioritise the
areas being selected for audit
and pay greater attention to
IT services procurements and
contracts. Replying to questions
in Parliament, finance minister
Tharman Shanmugaratnam
revealed this in the light of the
recent cases uncovered at the
Singapore Land Authority (SLA)
and the Intellectual Property
Office of Singapore. A former
deputy director at the SLA, who
has already been accused of
cheating the government of
some S$12.1m, was recently
also charged with eight more
cheating offences.
06 hk company
registrations up
Hong Kong has registered its
1,500,000th local company.
Since the Special Administrative
Region of China’s first company
was incorporated in 1865, the
numbers have been growing
steadily, reaching 500,000 in
1994 and reaching one million
in 2005. It takes only four
days to set up a company in
Hong Kong, but in early 2011,
following the launch of electronic
incorporation, the process will be
cut to less than one day.
07 country
reporting review
The European Union is
consulting on a possible
requirement by EU companies
to adopt country‑by‑country
reporting practices, requiring
multinationals to disclose
financial information on their
overseas operations in their
annual financial statements. In
September 2010, the European
Commission and the European
Parliament evaluated the
feasibility of requiring listed
The latest on the global economy
www.accaglobal.com/economy
property
bubble deflates
Asia’s property markets
are set for a continuous
drip feed of tighter
regulations in coming
months as authorities
try to take the froth out
of surging home prices
without triggering a crash.
In late November, Hong
Kong announced its fifth set
of measures in 2010 as it
struggled to curb speculation
in its property markets.
China, Singapore, Taiwan,
Thailand and Malaysia have
also unveiled more stringent
regulations in recent months.
But Asian investors’ appetite
for property seems far from
sated, with prices continuing
to climb. That will likely
prompt governments to raise
mortgage requirements
again, increase land supply
and – in the case of China –
impose property taxes.
9
companies
to prepare
consolidated
accounts that
include key financial information
regarding their activities in third
countries. The intention is to
improve transparency on capital
flows, assisting tax authorities
to determine whether transfer
pricing is taking place.
08 frrp sets
reviews priorities
The Financial Reporting Review
Panel (FRRP) will prioritise the
commercial property, insurance,
support service and travel
sectors in its reviews in 2011/12.
FRRP announced it will take a
particular interest in companies
operating in niche markets, or
those outside the FTSE 350,
because these are seen as
facing more risks in the current
economic climate than larger,
more diversified companies. In
the support services sector, FRRP
will focus on those companies
with significant exposure to public
spending cuts.
09 acca reviews emissions
Accounting practices on
emissions allowances vary
substantially, according to
research from ACCA. Almost half
of surveyed companies (11 out
of 26) treat emissions
allowances as intangible assets,
so their allowances are measured
in company accounts ‘at cost’.
Consequently, allowances
obtained free are shown as having
nil value, while those that have
been purchased are valued at cost
price. Only 15% (four companies)
are accounting for emission
allowances at fair value, with the
difference between fair value and
cost recognised as a governmental
grant and presented as deferred
income on the balance sheet.