June 2011 The piano has been drinking, not me

PQmagazine
EXAM
GUIDANCE
Weve got stacks of
advice and top tips for
CIMAs and ACCAs
Time to get processed
MCASS
PARTY ON
Manchester students
get entertained by
The King himself!
IN THIS EXAM SPECIAL ISSUE
contents PQ
News
061,000 for books ACCA PQs
bill for recommended reading
08ICAEW changes New syllabus
on cards for institutes students
Features, etc
10Exam Surgery More basic
maths tips, plus news from the
world of international standards
12Great courses giveaway Yes
its true were giving away
loads of free courses. Simply fill
in our survey and youll be in
with the chance of winning one
14ACCA exam advice Stacks of
tips and top advice on what to
look for in the next set of exams
16Time management You may
know the syllabus backwards
but if you cant organise your
time in the exam you will fail
18CIMA exams Guidelines to
help you tackle the May exams
20Examiners conference PQ
was in attendance when CIMAs
F4 and P1 examiners outlined
what they are looking for
22ACCA examiners plea Tutors
need to be honest with PQs
about the amount of work they
must do to get a pass
23Getting a pass Handy hints
and tips from Page Personnel
24Recruiters in the spotlight
We asked you how you thought
consultants could improve their
service and your suggestions
give them food for thought
25CIPFA TPC NSF chair Jane
Cika has some advice on how to
pass those final two papers
26CIMA examiners We know
what the F2, P1, P2 and P3
examiners expect of PQs
28Practical tax HMRC is set to
get tough with tax cheats
29VAT update HMRC in dispute
over tax on take-aways
30Exam technique Know your
verbs itll help you pass!
32Lease accounting All you
need to know; plus the MCASS
annual dinner with Elvis!
34Careers Life at RBS Insurance;
and we focus on the jobs market
38Fun time A girl about town;
and our great prize sudoku
The columnists
Robert Bruce Kill the clutter 6
Prem Sikka The Big Society cant
work without democracy 8
Subscribe to PQ Magazine
Its FREE go to page 23 or see
www.pqmagazine.co.uk
ABC July 2009June 2010
33,790
Publishers statement:We have a
digital issue of the magazine which
is sent to 12,772 requested readers
Living in a changing world
I was sitting on the Underground on the way to work recently
when the person sitting next to me got out his revision folder
and began to look at regulatory frameworks. There was a section
on the CCAB with all the usual suspects, but I noticed that CIMA were still
on the list as a member. I gently leant over and did that thing that no one
does on the Underground spoke to a stranger. Luckily the student was a
PQ reader and admitted he had seen the CIMA news somewhere. I
reminded him it was in PQ magazine!
We are still the place to keep up-to-date. Last months issue looked at the
Lords report on auditors and the ASBs push for clear, uncluttered annual
reports. And with the sad demise of the print edition of Accountancy Age,
we are now the only independent accountancy magazine out there delivered
free to your door. We have invested a lot of time and money into
pqmagazine.com, but we also understand that there is something different
about a magazine you can hold and feel. We Tweet and Facebook with the
best of them, but it is producing the magazine that helps focus on the real
issues rather than just throwing out stuff that is forgotten in a weeks time.
With the magazine you also get history. How we receive information is
increasingly being decided by the cost-cutters rather than adhering to the
demands of the customer. Similar things are happening in accountancy
education, but that is for another issue of PQ. As proof of this, how many
PQs do you think opt for the magazine through their letterbox rather than
the Emag to their inbox? Well, some 80% of you still want it by post!
We all know why the ACCA stopped sending Student Accountant to its
400,000 readers. It saved it a fortune and in truth it couldnt guarantee
delivery in some parts of the world. But what it didnt do is ask readers what
they wanted. Now they have a fancy online magazine that takes ages to
download and many students wish for the old magazine, which was printed
on the equivalent of toilet paper! That didnt make it a bad magazine.
You may notice something missing this month. Our letters page is taking
a month off so we can concentrate on you and the exams. But it will be
back in July and we need you to tell us what is rocking your world. Just
email me at the usual address.
Graham Hambly, PQ magazine editor
CONTENTS
June 2011
Register for FREE today
www.kaplanfinancial.co.uk/emergencyservice
Discussion Forums
available for each paper
Dedicated Live Online Webinars
to answer your exam questions
Answers from Expert Tutors
to your questions throughout the day
Boost your condence through our FREE
Exam Emergency Service, our interactive online
forum that gives advice and support in the
run up to your exams.
Key features include:
Live for ACCA
from 9th 25th
May
Worried about your
ACCA exams?
8
PQ Magazine June 2011
Which stream?
ACCA students who want to
be UK auditors must sit the UK
stream of P2 and P7. So while
everyone else is going
international for these papers
students have to think more
seriously about their career
options. PQ magazine has been
told that this has caused some
confusion as in the past it was a
case of any stream will do.
AAT into Africa
The AAT qualification is
beginning to have a big impact on
the African continent. The
association now has just under
10,000 students studying in
Africa. Botswana tops the league
with 3,843 PQs, followed by South
Africa with 3,322. In Swaziland
there are another 1,482 trainees.
Win a free course!
To celebrate our 100th issue
(last month) were giving away a
load of free courses. Find out how
you can be in with a chance to
win one turn to page 12.
In brief
PQ news
The Big Society is a flagship policy
for our government. The key idea is
to enable ordinary people to shape
decisions and institutions. However,
government has avoided the D
word democracy. We are
surrounded by monopolies treating
organisations as their private
fiefdoms. The top 500 transnational
corporations controls 70% of the
worldwide trade, 80% of foreign
investments, 30% of global GDP.
Just 20 corporations control the
coffee trade; three account for over
80% of the global cocoa trade and
six of them hold 70% of wheat
trade; one controls 98% of the
production of packed tea. Ten
global corporations control 55% of
the trade in pharmaceuticals; 67%
of the trade in seed and fertilisers;
55% of the pharmaceutical trade;
and 66% of the biotechnology
industry. The world of accounting is
not too dissimilar, where just four
firms dominate global auditing.
Transnational corporations wield
considerable power, but people
have no say in their affairs.
Employees are hired and fired at
will. Directors can cast thousands
of votes at AGMs. Shareholder
resolutions are not binding. Local
communities can raze mountains,
divert rivers and cut down forests to
welcome companies, but these
corporations owe no commitment
to any locality, product or people.
Big society will remain a slogan
until steps are taken to democratise
big business.
PREM
SIKKA
Big Society
is not
possible
without
democracy
Prem Sikka is professor
of accountancy at the
University of Essex
Final touches are being put on the
new-look ACA qualification, which
will go before the ICAEW Council in
July. PQ can reveal that flexibility is
the new driving force. Although
there appears to be continuing
support for the training contract, the
educationalists at the ICAEW believe
that it makes less sense to those
entering the profession with lots of
practical experience or who come to
accountancy late.
PQ was told that there are no
plans to introduce options and the
six/three exam structure will remain
unchanged. People are very happy
with it, said an insider.
However, he wanted to stress the
importance of creating more flexible
training routes. We need to
liberalise the qualification without
reducing standards. There will be
no dumbing down of standards, he
promised.
ACAsyllabus
set tochange
Retrograde
step by ACCA
Leading tutors are calling on the
ACCA to scrap its proposed
changes to F1, F2 and F3.
The changes, due to be brought
in for December 2011, represent a
retrograde step, said one leading
tutor. He felt the new syllabuses,
particularly for F2 and F3, look very
similar to the old 1.1 and 1.2
papers. These syllabuses were
criticised at the time for being too
broad. Our expert said that the
changes now proposed represent a
return to the bad old days, a
colleague from a rival college was
quick to agree.
The problem is the new papers
have to satisfy two qualifications
Foundations in Accountancy and
the ACCA professional course. Our
tutor believes the ACCA should look
again at the decision as there needs
to be different papers and different
syllabuses for the two streams. FIA
papers 5, 6 and 7 need to be
different from ACCA professional
papers F1, F2 and F3, he ventured.
CIMAs official study texts will in
future be produced jointly by
Elsevier, the official publisher of
CIMA learning and revision
material, and Kaplan Publishing.
The two in partnership will now
publish the official study text, exam
practice kits and revision cards,
explained Elseviers Mike Cash. He
believes the deal will mean
students are the ultimate winners.
They will get the best of Elsevier
and Kaplan content, written by
tutors with classroom experience
and reviewed by CIMAs examining
faculty, he said.
The plan is to have certificate
level texts ready by May, with the
professional texts available by June.
Texts will cost around 35 each,
with exam kits priced at 20 and
revision cards 10.
Newpublishingpartnership
ThePQExam
EMERGENCYSERVICE
Last-minute help is at hand,
as Kaplan and PQ magazine
join forces to provide exam
candidates with a direct line
to free expert advice.
Yes, CIMA and ACCA students
can again get help when they
need it most, thanks to the Exam
Emergency Service. The CIMA
Exam Emergency Service is
already up and running, but it is
not too late to get answers to
your exam-related questions.
The service is also available
right up until Friday 27 May.
The ACCA EES will open for business on Friday 27 May
and remain online until Tuesday 14 June.
To access the service go to
www.kaplanfinancial.co.uk/emergency
There is also a lot more on offer from Kaplan. It is, for
instance, also running masterclasses for F9 for this sitting.
Three free online masterclasses are now available online,
designed to increase your chances of passing the exam.
Mike Cash, far right, with the
Kaplan and Elsevier teams
PQ exam surgery
PQ Magazine June 2011
Most of you will now be coming to
the end of your tuition courses and
pondering about what to do next.
The answer: question practice,
question practice, question
practice! It is very important to
cement your knowledge by
practising questions and identifying
your areas of weakness.
Most students have issues with
timing in the real exam so make
sure you practise questions to time.
Dont just practice the numbers
the written sections can be worth
just as many marks.
Debriefing a question is as
important as answering it. Once
you have completed your attempt
make sure you read the model
answer thoroughly. Then compare
this to your answer and give
yourself a mark. If there are any
knowledge gaps note them.
There will be occasions where
you have missed the point of the
question. When this happens dont
panic. Go through the answer and
try to understand where you went
wrong, so if you see the
requirement again you would feel
confident about knowing exactly
how to go about answering it.
Finally, try to rework the question a
few days later to see how much you
have actually taken in.
Make sure you download past
exam papers and attempt them
closer to the exam, looking at the
examiners comments and marking
guides to see how the marks are
actually allocated.
Mike Pennington is a
partner at First Intuition
EXAM
CORNER
The leases project is coming to a
head now, so it is probably worth a
revisit. After all, Sir David Tweedie
did memorably refer to this project
as his proudest achievement as
Chairman of the International
Accounting Standards Board in this
very magazine, writes Martin Jones.
Lets say you rent Satisfaction
from The
Rolling Stones. I am not sure how
that would work, but it is a lot more
interesting than talking about a car
or a building. The song Satisfaction
has been around since 1965 and
looks like continuing to get airtime
forever. So lets say you rent the right
to the song for the next three years,
at a figure of 1 million per year.
How would that work under
current financial reporting? Well,
the current rules on leases would
classify that deal as an operating
lease. This is because the
current rules would say that
once the song is given
back to The Rolling
Stones after
three years,
it would still have years and years
of life in it. So the current rules
would say the asset is not ours and
require we ignore the whole story;
except for the cash flow, which we
would throw into operating costs
each year.
But that is utter nonsense. As
soon as we sign the contract we
have an obligation to pay 3 million
over three years. And as soon as
we sign the contract we have the
rights to one of the greatest pop
songs ever written.
So how would the proposals deal
with the contract? The proposals
would tell us to measure the
obligation by using a discounted
cash flow and use this figure to
represent the liability (obligation to
the outflow) and the asset (right to
the inflow from airtime
revenues). Cool, eh? As an
added bonus, the proposals
dispense with all that junk
about classifying a lease as
either operating or financing.
All leases will be treated the
same, as leases.
Even cooler, right?
Martin Jones, LSBF
News fromtheivory tower
10
Know your basic maths
Ruth Jenkins article explores an everyday mathematical tool, percentages, and its
uses, in the second in our series on basic maths. So go on test yourself
What is a percentage? It is a measure
of relative size or proportion. There
are six cakes and you eat three of
them: you have eaten 3/6 or 50% of
them. 50% means 50/100 or the rate
of 50 per 100; as a fraction its 1/2.
Percentages help to compare
results. Which test result is best,
39/60 or 15/21? Hard to tell as
fractions go, but easy as percentages!
Answer: (39 x 100)/60 = 65%,
(15 x 100)/21 = 71%
I buy a widget for $12 and I sell it
for $15, then the profit per widget is
$3. Easy so far!
The profit can be expressed either
as a percentage of the cost price or
the selling price.
Profit as a percentage of cost is
called mark-up.
So ($3 x 100)/$12 = 25%
Profit as a percentage of selling
price is called margin.
So ($3 x 100)/$15 = 20%
The same profit just expressed
differently: $12 x 25% = $3; $15 x
20% = $3.
Mark-up goes with cost (CUP),
margin goes with sales (SIN).
When cost is the starting point let
cost = 100%. So sales are 125%
(100% + 25%)
When sales are the starting point
let sales = 100%. So cost is 80%
(100% 20%)
We are told that cost is $12 and
profit margin is 20%. Now calculate
sales and profit. How?
Easy!
Cost = 80%; so 100% is
($12 x 100)/80 $15.
Profit is $15 - $12 = $3
We are told that sales are $15
and profit mark-up is 25%. Now
calculate cost and profit.
Sales = 125% namely (cost
100% + 25%). So cost is
($15 x 100)/125 or 12 and profit
again is $3.
When the VAT-inclusive price is
$75 and the rate of VAT is 17.5%
what is VAT and the VAT-exclusive
price?
Answer is $11.17 and $63.83
respectively.
Basic maths tips
1. Percentage (%) = fraction x 100
2. Mark-up is profit on cost (CUP)
3. Margin is profit on sales (SIN)
Thats it!
Ruth Jenkins is a CAMS ACCA
Tutor and Course Leader
Go to the study zone on
PQ magazines website
16
PQ Magazine June 2011
PQ reading time
T
here are far too few people who
listen to Tom Waits but those
who do will know that in his
song Time he is not singing about the
reading time allocated to students
taking accountancy exams. Had he been
doing so, I would have had no hesitation
in urging you to listen closely to the
lyrics and receive his wisdom on the
matter. As it is, Tom Waits has missed a
trick and its my job to give a few
pointers for using those valuable
minutes before the start of your
answering time; thanks Tom.
First of all, lets be sure that we know
what this extra time is all about. During
reading time, we are allowed to:
Open and read the question paper.
Mark, highlight or annotate the
question paper.
We are not allowed to:
Use our calculators.
Write in our answer books.
What we really shouldnt do is:
Sit with our arms folded, enjoying the
read that has been given to us,
perhaps highlighting words we like the
look of.
You should think of it as planning
time. It has to be approached actively
and, at the end of your 15 or 20
minutes you ought to have identified
where you are going to earn your first
40 marks or more.
Read the requirements
Effective analysis of a question paper
starts with a thorough review of all
question requirements. They will
indicate the topic being tested and,
using carefully selected verbs, give clear
instruction as to the level to which you
are expected to prepare an answer. They
will give you a strong clue as to what
data you ought to look for in any
question scenario and will also help you
to form a plan of attack; the order in
which you will work through the
questions, getting most marks first. (If
your paper includes objective testing, I
would advise you to ignore them until
the end of the exam. Students attach
disproportionate importance to OT
sections and overrun, eating away at
valuable mark earning time. Think of it
as a 20-mark question like any other,
where you would be content to earn
If you dont get your time management right you could
end up on the wrong side of the road, says Peter Stewart
12-15 marks in 36 minutes.)
Reading and highlighting the
questions is pointless. You have to
consider how you will use or manipulate
the data from the question to construct
your answer. This involves writing key
points and figures in the margins so
that, when it comes to answering that
question, you do not have to hunt
through to find the critical information.
For example, if Im doing a question
involving decision making I know that
my easiest marks will come from
explaining which costs, given in the
question, are sunk costs, and which are
directly incremental cash flows
(requiring little, if any, working). My
question paper will, therefore, have in
clear letters SUNK and DIRECT
written in the margin so that, come
writing time, I make notes about those
straight away.
Likewise, if Im doing a question
involving a group of companies, my
margin notes will have a clear diagram
interpreting the given group structure,
again so that, when Im allowed to use
my calculator, I can make instant
headway into the marks.
Examiners often complain about the
poor structure of students answers. So
during planning time we can think
about how we will lay out the answers.
In a question with an explain or
discuss requirement, I can brainstorm
bullet points I want to expand upon in
my answer; I can review them and
prioritise based on which ones are most
directly relevant to the requirement and
I am best able to explain.
I can also use planning time to
sketch the layout of cost statements or
analyses thinking about the easiest way
to display my workings. The chances are
that there will be a similarity to
questions I have practised before so I
will double check that this question has
given me the same type of data with
which to work.
If I have numerical questions that
require the use of formulae, the
planning time will be used to copy the
appropriate formula onto the question
page and to assign the values given to
the appropriate variables. Again, when I
start to answer that question, there will
be no delay and I will calmly earn good
marks.
Above all, what you must make sure
of is that your exam day is not the first
time you give 15 or 20 minutes of
planning time to an entire paper.
Download past papers from the CIMA or
ACCA websites and take an hour for
each to go through a timed planning
exercise and complete an answer for
your chosen first question.
In the end, I dont think that Tom
Waits would be much help to you with
exam study advice. After all, he once
wrote, I dont wanna have to learn to
count, a concept which is unthinkable
among PQ accountants isnt it?
Peter Stewart lectures at LSBF
PQ
Brought
to you in
association
with LSBF
18
PQ Magazine June 2011
PQ CIMA May guidance
PUTTING IT IN
CONTEXT
E1
The political, social and economic context
identifying and explaining factors that determine
international competitive advantage.
Operations management explaining how
developments in organisational structure and
quality management have helped businesses
gain a competitive advantage.
Information systems identifying the benefits
of information systems and explaining the value
of structured system implementation.
Marketing applying key concepts such as the
marketing mix to a scenario that could include a
not-for-profit dimension.
HR explaining the value of HR planning,
recruitment/selection and training when dealing
with any of the above changes.
E2
Approaches to strategy comparing and
contrasting the formulation/different levels of
strategy.
The competitive environment analysing the
environment or assessing the value/benefit of the
analysis (could be extended to include
stakeholders).
Business ethics and corporate governance
(including CSR) importance to the company
and analysing potential issues arising within a
business context.
Management and leadership in relation to
management styles and the importance of
managing groups (likely to incorporate conflict if
examined in Section B).
Project management tools and skills in a
project management context, including project
risks/management of cross functional teams.
Culture the theory and the impact it has on
organisational success.
E3
Strategic choice applying Johnson, Scholes
and Whittinghams Suitable, Acceptable, Feasible
model to the selection of strategic options.
Strategic marketing decisions whether an
organisation should adopt a customer or product
focused approach to strategy applying
techniques such as customer account
profitability and direct product profitability.
Change management possibly in the context
of changing the organisations approach to
marketing.
Environmental uncertainty describing the
problems that uncertain environments present,
and evaluating techniques such as scenario
planning and game theory in dealing with
uncertainty.
P1
Working capital management the calculation
of the cycle, the impact of decisions on the
cycle, EOQ calculation, cash flow forecast and
compound interest calculation.
Operating statement reconciling budgeted to
actual profits including fixed overhead variances
and possibly mix and yield calculations.
NPV including tax and inflation and/or
incremental revenue and costs.
Sensitivity calculations and yield to maturity
using the IRR.
Expected values, joint probabilities and risk
based decisions.
Decision trees requiring both appropriate
construction and evaluation.
Activity based costing calculations and
discussion of benefits and drawbacks.
Benefits of budgeting techniques for discursive
marks.
P2
Relevant costing in a short-term decision
making context.
Value chain discussion of how the use of the
value chain can help drive profit in a given
business.
Pricing discussion of pricing policies for new
products incorporating the product life cycle.
Activity based costing extending to DPP,
discussion in a retail environment.
Responsibility accounting controllability and
impacts on motivation/performance
measurement.
Performance evaluation via financial and non
financial measures.
Transfer pricing discussion of differing
policies and their consequences.
P3
Importance of the audit committee in corporate
governance including the relationship between
internal and external audit.
Different types of interest rate risk and
techniques for managing them.
Strategic risks facing an organisation and
recommendations of control measures.
Focus on risks around HR and how these can
be mitigated.
Risks relating to IT projects, including supplier
selection and how they can be mitigated.
Ways of managing general financial risk
including value at risk.
What follows is not a list of traditional tips that you should rely on being examined for lots of marks in the
exam. Instead, they are the most important syllabus areas as identified by BPPs subject specialists, set in a
context in which they may be seen in your May exam, and should only form the core of your revision studies!
PQ Magazine June 2011
19
CIMA May guidance PQ
F1
Deferred tax calculations and the regulatory
framework will almost certainly feature in
sections A and/or B.
It is important that candidates know definitions
for general principles of tax (eg hypothecation,
underlying tax and withholding tax) and can
perform basic calculations (eg sales tax) as it is
likely that there will be a number of taxation
questions in section A.
Leases are likely to appear in section B or as a
sub-requirement in section C. Candidates must
be able to identify the type of lease and carry out
the calculations involved for finance leases.
Construction contracts are also likely to appear
in section B.
Accounts preparation requiring a statement of
comprehensive income and a statement of
financial position is likely in section C.
A consolidated statement of financial position
featuring a parent, subsidiary and an associate is
likely as the other section C question.
It is likely that statement of cash flows will be
tested for 1015 marks as either two or three
section B questions or as a sub-requirement in
section C.
Both audit and ethics, although smaller topics,
will almost certainly be tested for 3-4 marks
each, either as standalone section A questions or
as sub-requirements in section B or C.
F2
SECTION A
Written question, eg convergence between US
GAAP and IFRS, operating and financial review,
environmental reporting or human asset
accounting.
Short consolidated statement of comprehensive
income, statement of financial position or
extracts from group financial statements.
Recognition, measurement and/or classification
of financial instruments either an adjustment in
a groups question and whole/part of a question
in its own right requiring explanation of
accounting treatment and/or calculations and/or
journals.
Pension accounting numerical question with
notes to financial statements or written question
explaining accounting treatment for defined
benefit pension and/or defined contribution
scheme.
Share-based payment part or whole of a
question requiring explanation of accounting
treatment and/or calculations and/or journal
entries.
Interpretation of accounts interpretation of
pre-calculated ratios or written/numerical EPS
question or limitations of financial analysis.
Inflation accounting/asset valuation
explanation/comparison between or advantages
and disadvantages of historic cost accounting,
current cost accounting and current purchasing
power.
SECTION B
Group financial statements, eg consolidated
statement of financial position or consolidated
statement of comprehensive income or
consolidated statement of cash flow with a
foreign subsidiary, complex group or change in
group structure (disposal and/or piecemeal
acquisition).
An interpretation scenario including ratio
calculations, segment analysis or the effect on
ratios of changes in accounting treatment and/or
limitations of financial analysis.
F3
Formulation of financial strategy produce a
forecast to assess whether objectives will be
achieved. Discussion areas could include
analysing the appropriate dividend policy and the
inter-relationships between dividend, financing
and investment policies.
Financial management analysis of a source
of finance, including cost of capital calculations/
discussion of gearing levels.
Business valuations & acquisitions as well as
the standard valuation techniques, could also
cover post merger valuation and discussion of
post merger value enhancement strategies.
Make sure that you are able to explain the
efficient markets hypothesis recent stock
market volatility casts doubt on the ability of
stock markets to price securities in a rational
way.
Investment decisions and project control in the
context of overseas investment appraisal.
Capital rationing could be examined along with
a discussion of how to deal with capital rationing
problems.
Post auditing is a project management
technique that is regularly examined.
PQ
20
PQ Magazine June 2011
PQ ACCA examiners conference
L
ooking over past papers, examiner David
Campbell said he had been asked to tell
delegates what was done well by P1
candidates, but in truth he felt it would be easier
to talk about what was not done well! His paper
pass rate is 50%, plus or minus 3%. Overall,
Campbell feels that this is quite good.
His Q1 cases are often thinly disguised real
cases, because hes trying to make his exam as
relevant as possible. These things really
happen, he stressed. In 2009, question 1 was
on internal control failures at a global bank.
He felt that question spotting by tutors was
often well meaning but, ultimately, unhealthy. In
December he went online to see what the tutors
had tipped and one had just one thing right.
Overall, Campbell felt people are happy with
the core corporate governance themes. There is
also little evidence of PQs struggling for time.
Most candidates also organise the material well.
Students now have seven live diets and one
pilot to look at. You should be working all these
past papers, said Campbell.
Candidates should also rehearse the use of
common P1 verbs and question types words
like evaluate, construct and assess. He also
suggested that students read each question and
the case itself. In P1 you get marks for analysing
the case.
It is vital PQs study real-life situations
(FT/BBC) in which governance, risk and ethics
Lessons from
the real world
Governance, risk and ethics examiner David Campbell explains what he
wants from P1 candidates and he wants more than hes getting now!
are prominent as part of placing the main
themes into context. Reading Chris McDonalds
blog was one suggestion here.
Campbell pointed out that P1 has to remain
relevant; it is an important paper, more so now
that the prophets (should that read profit?) of
doom have been proved right.
The new name also reflects the new
importance of risk. That new content includes
the dynamic nature of risk assessment,
managements response to changing risk
assessment and risk appetite. There is also
ALARP, risk and subjective risk perception and
acceptable levels of risk.
Finally, candidates were reminded they should
take their calculators into the exam hall. I might
use numbers in an exam to explore analysis in
this paper, he said.
P1 examiner David Campbell has been the
examiner since the papers inception in
December 2007. A senior lecturer in
accounting at Newcastle University Business
School, he has been an academic since
1992. He teaches corporate governance,
business ethics and research methods to
both undergraduates and post graduates.
PQ
THINGS NOT DONE WELL IN P1
June 09
Q1 Candidates had question-spotted that Kohlberg wouldnt come up in this paper.
Q2 Ethical reasoning not done well at all.
Q3 Criticise the chairmans performance thats what I wanted but didnt get it.
December 09
Q1 NEDs information on controls and risks/quality of information.
Q2 Role of chairman I wanted them to tell me the chairman had misunderstood his
role.
Q3 Criticise ethical behaviour answers too descriptive. I dont want people
describing the theory.
June 10
Q1 Voluntary/involuntary stakeholders.
Q2 Voluntary reduction in pension value. This question shows the value of reading the
FT and discussing stuff in class.
Q4 On happy and healthy most parts done badly. Son stole money from parents.
December 10
Q1 Sound corporate governance.
Q2 (b) Despite a technical article in 2009.
Q3 (c) On best practice corporate governance report.
Q4 (d) on SR and the voluntary supplier payment policy.
THINGS DONE WELL IN P1
June 09
Q1 Global bank internal failures on agency theory.
Q3 Director leaving package.
Q4 Roles of risk manager.
December 09
Q1 Mary Jane shipping accident AAA&-step model
on internal control failures.
Q2 Directors induction programme.
Q3 Integrity.
Q4 Risk embeddedness.
June 10
Q1 Nuclear complex (Sellafield) on agency/social and
environmental footprint.
Q2 Remuneration committee.
Q3 Internal audit testing.
December 10
Q1 Institutional investors.
Q2 Strategic and operational risk.
Q3 Conflict of interest.
Q4 Liquidity risk.
F4 examiner David Kelly knows
what he wants do you? PQ
magazine was at the examiners
conference to hear what Kelly
had to say about his corporate
and business law paper
T
here are some remarkably good exam
candidates sitting the corporate and
business law paper, the F4 examiner
was happy to tell conference. That said, there
are lots of not-so-good candidates too.
PQs simply have to have a wider knowledge,
he stressed. Kelly also wondered why students
dont use their general business knowledge and
relate this to legal issues. The examiner then
gave his analysis of the past four sittings.
Looking back at June 2009, he said there
were two contract questions in the seven
knowledge-based questions. Tort was also
there, as was a disguised company law and an
employment law question. For some reason
candidates do well on employment law, said
Kelly. They seem to be able to get their heads
around this topic.
In December 2009, students provided better
answers to the statutory interpretation question.
However, answers on the English law system
were disastrous. There were two contract
questions on postal rules. Now this might be on
its last legs, but it is on the syllabus, he
Questions on internal control failures at a
global bank? Do they mean me? Yes, Sir Fred
Goodwin, ex-RBS cheif, they surely do!
PQ Magazine June 2011
21
ACCA examiners conference PQ
stressed. I thought I would give them a treat,
he explained. There were also questions on
limited liability and type of companies, and the
examiner felt it was still remarkable the number
of candidates who dont do well. Q6 was on
compulsory winding up and administration. The
examiner was worried about this question as it
was the first time he had examined this topic. By
and large candidates knew the answer which
pleased him.
June last year saw the best exam performance
in some years more than 50% passed and
the examiner thought he was sailing into calm
waters. He had asked a question on the
Supreme Court, contract law and tort. This was
the first time knowledge of the 2006 Companies
Act was needed and students seemed to know
the act. Debentures and charges and
employment contract made up the other topics.
Then along came December 2010 and the
pass rate dipped again, to 41%. I am hoping
this is a blip, said Kelly. So are students! Sitters
dealt well with the English legal system question,
directors duties and employment question.
However, the three analysis questions were all
poorly done. Tort was a disaster. The question on
company register and accounts was another
problem area. Why, asked Kelly, didnt
candidates use any cross knowledge? They must
know about company accounts, he said.
Kelly was in no doubt that the students who do
well in the exams are a product of good
teaching. Scripts show who has been to a good
provider, he revealed. The syllabus is wide: We
all know that, he said, but the simple fact is that
students need to learn it.
For future exams the focus will remain as it is,
said Kelly. There are no planned changes in the
Kellysheroes
KELLYS TOP TIPS
1) You cant question spot to cut down what
you need to learn.
2) Read the question. Students too readily
want to force the answer on to the page.
3) Practice past questions. But that doesnt
mean you learn the previous question and
put it into the next exam paper. We get last
Junes answer every December, he said.
4) Analyse the question the examiner is
asking. This gets more marks than
regurgitating parts of the syllabus.
5) Think across the syllabus.
structure. He stressed that while there is
nothing specifically new, PQs had to remember
the law is always changing.
Kelly pleaded with candidates not to go into
the exam hall with the answer and look for the
question to fit it. He felt question spotting was
getting worse. Maybe this was down to time
pressure, but students dont just spot the
question, they are letting certain words trigger
their answer.
He was worried that employers might be
cutting down the days students spend at
college and this could adversely affect pass
rates even further.
David Kelly has been the F4 examiner for
12 years, and before that he marked this
paper; he has over 25 years experience in
the sphere. His expertise is company law,
business law and the English legal system.
A former principal lecturer at the
University of Staffordshire, he now works
as an academic consultant and writer. A
published author, he is best known for his
book, English Legal System.
PQ
22
PQ Magazine June 2011
PQ ACCA examiners conference
G
raham Holt, the P2 examiner,
started his discussion of his
paper by explaining the pass
rates for P1 to P3 are all very similar. He
felt students had good basic knowledge
of IFRS and were sound on the written
aspects of topical issues (mostly).
Computations relating to cash flows and
calculation of goodwill under the new
IFRS 3 were also what students do
well. In the exam hall, time management
doesnt seem a big issue, either.
Looking at last Decembers exam, Holt
said he was pleased with the whole
process. Many students showed a very
good basic knowledge of accounting
standards. However, candidates
problems with the discursive elements in
the paper remains. The cash flow
statements question was well answered
and topical issues satisfactorily. All in all
this led to a pleasing pass rate for his
Corporate Reporting paper, said Holt.
What was not done well? Holt had a list:
Not answering the question.
Not answering all parts of the question.
Dont leave it late!
Not using the scenario.
Poor layout and time management.
Application of knowledge.
Understanding of key principles.
He also has a list for areas of
improvement:
Deeper understanding of IFRSs.
Application of knowledge.
Deeper understanding of principles.
Better preparation for exam.
Management of stress.
Not enough revision undertaken
poorly planned and too late.
Reliance solely on lecture notes and
lecturer.
Poor essay techniques.
Not taking responsibility for your own
success.
Holt told the lecturers present that they
must ensure students do not just audit
the answers. He wants them to actually
sit the questions under exam conditions.
Tutors also have to impress on students
the degree of work involved. PQs have to
widen their knowledge base, and he
believes question-spotting, and revising
only a small number of topics just does
not work.
So what is new? Although it wont be
tested for the next two diets IFRS 9 will
be in the syllabus come 2012. However,
the examiner stressed that even then he
wont be setting complex questions on
the standard to start with.
Holt revealed that IFRS for SMEs may
be a part of a question. Then theres
reorganisation both internal and
external. Finally, he turned to IFRS 3 and
its application and effect on the other
standards.
Students should note that the
introduction of reorganisations may lead
to a little more group accounting.
Graham Holt was a PQ at Price
Waterhouse (now PwC) after
obtaining a BCom at Liverpool
University and MA Econ at
Manchester University. He left PW as
the training manager and joined
MMUBS, where he is now executive
head of accounting and finance.
PQ
Examiner Graham Holt believes that its time to start being honest with students about the amount of work
needed to pass P2. You dont get something for nothing especially when it comes to accountancy exams
No maths for
maths sake
The P4 examiner Shishir Malde
explains where his paper is going.
Go to our website for the full
version of this article
E
xaminer Shishir Malde started off by
giving his top tips for success in P4.
Firstly, candidates have to adopt a systematic
approach. Answering all the parts of the
question fully will help, as will having an
organised approach and good answer
structure. Good students also have good time
management, he stressed.
Looking at past papers, Malde revealed that
wholly written questions were generally well
done, achieving 55%65% of their marks
here.
He then turned to the things students
arent good at. Unfortunately, many have an
over reliance on past papers and intensive
study programmes. Students must study
around the subjects. Four or five days in a
classroom is not enough to get you through
the exam, the examiner said.
Malde was also concerned about the basic
errors candidates make in
Atime to
reflect
The F9 examiner explains that to
pass this paper students need to
learn how to reflect. Go to our
website for the full version
A
ntony Head, the examiner for F9
Financial management, was concerned
that too many students try to pass his paper
on calculations alone. You cant get through
just on the numbers, he said.
Head, who has a marking team of 58, said
many students also suffer from exam inertia
they love to take an answer from one exam
and put it in the next one. He said: Each
examination consists of new questions my
contract says they have to be unique.
Why, he asked, do students have so much
difficulty in business finance? With long-term
financing in each of the last four exams he
was hoping they would start to get better at it
but they arent.
The Past Examiners Reports are a key free
resource. They take Head ages to write and
dissect each question. He stressed that
candidates must study the whole syllabus
section by section. You must also
Go to the study zone on our website Go to the study zone on our website
Astandard
approach
Examiner Steve Scott explains how
you can improve your chances of
passing F7. Go to our website for
the full version of this article
T
he Financial Reporting paper pass rates
were in a downward spiral until
December 2010, explained F7 examiner
Steve Scott. The June pass rates are also
generally two or three percentage points lower
than those achieved in December. Scott
revealed that candidates on their first attempt
have the highest success rate and those
sitting at the third or more attempt have very
low pass rates at some diets these
candidates barely get into double figures, he
revealed.
Now the December 2010 results were
genuinely better. Consolidated accounts (Q1)
is still the best answered question, but before
December the average mark was declining
slightly (by two marks). Students do well on
the techniques, he said, aided by tutors
standard workings.
Candidates score well on Q2 (financial
statements), although few gain
Go to the study zone on our website
The full
versions of
the articles
below are
available on
our website
CIMA exams PQ
TECHNIQUE IS
EVERYTHING
questions ahead of the exams as you can in
order to familiarise yourself with the territory, this
will help you to recognise where you need to
focus your studies.
Manage your time The exams consist of a lot
of written work, so try to get a thorough
understanding of how much time you should
allow for an average question. One minute for
each mark the question is worth is a good rough
guide. Time yourself and aim to answer one
practice exam question in one hour.
Use downtime when you can We all
have downtime, whether on public
transport or during work, when we can
look over and create study notes. Take
your study notes to work with you so
you can take advantage of any
unexpected quiet periods.
Look for support Try to get your
company or employer behind you.
They should be
supportive as you
work towards
betterment and
will hopefully be
pleased to
recognise your
efforts. Many of your employers will also have
gone through the CIMA exams, so make sure
you make good use of their experience.
Plan for success Set yourself targets of when
you need to finish studying for each exam and
then focus on practice exam questions.
Remember to be realistic and allow yourself
enough time for breaks. You should also ensure
you have secured sufficient time off work to sit
your exams.
Use your experience Relate your answers to
real-life situations wherever possible. Dont be
afraid to draw on your current and previous jobs
in order to provide relevant examples to back up
your arguments.
Give CIMA your all The timeframe for
completing all ten CIMA exams is relatively tight
so be prepared to sacrifice weekends and days
off to exam preparation.
Remember, Page Personnel Finance is here to
help you take the next step in your career
whatever your results. Visit our website at
www.pagepersonnel.co.uk for more information
and the latest roles.
PQ
W
e at Page Personnel work closely
with CIMA candidates at all levels. In
fact, many of our consultants have a
background in finance, so with exams looming,
we understand that this will be a stressful time
for many of you. Like any professionally
recognised qualification, CIMA exams require a
reasonable amount of technical preparation in
order to understand and answer the questions
set. However, its often your exam technique
(how you cope with the pressure and manage
your time during the exam) that makes the
difference between pass and fail.
Here are some key pointers to assist with your
exam technique:
Rehearse the questions Do as many practice
Thanks to Page
Personnel for
this article
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24
PQ Magazine June 2011
PQ recruitment survey
A
recent PQ magazine survey
discovered that over half of you
are definitely going to look for a
new job in the next six months. Another
one in five were thinking about it.
Now our readers understand how the
market works, and 90% of our
respondents said they would be using a
consultant when looking for their new
role. However, there does appear to be
an expectations gap between the
recruiters and PQs. Top consultants
Howett Thorpe told us that they wanted
to know how they can improve their
services to trainee accountants, so we
emailed our readers.
You responded by saying that
communication was the key. You also
want consultants to spend time
understanding what you want. Another
problematic area is the timing of phone
calls. If you are working you do find it
difficult to talk openly when sat next to
the boss!
Many readers had specific ideas to
improve the relationship between the
consultant and student. Here are some of
the responses that reflect your concerns:
Take time to find out about me as an
individual do I want to work for a multi-
national company where there are strict
corporate policies and procedures, or will
I be better suited to a small business with
personality and a bit of flexibility to work
your own style?
WHATPQs
WANT
Recruitment consultants should never
lose sight that they are dealing with
unique individuals and not innate objects.
I was a commodity sold and bartered
with, unsuccessfully.
The worse thing about recruitment
consultants is when they ignore your
messages and phone calls especially
when you are waiting for impending
news! They shouldnt hide behind
receptionists.
Recruitment consultants should be
honest. The current trend with recruiters
is initial contact in regards to a role, you
send your CV off and then you never
speak again. Calls will go unreturned,
emails not replied to, and you are left
feeling uncomfortable.
The most important part of the service
is to neatly package our skills and best
qualities. If our CV is missing skills or
experience or they have had negative
feedback from interviews we are better
off knowing.
They should ask PQs like me for an
honest self-appraisal of our strengths and
weaknesses and discuss the different
niche areas of accountancy with us.
One PQ even put together
a four-point plan for recruiters
LISTEN Understand the expectations
and aspirations of the candidate. This will
save wasted consultancy/interview time.
BE HONEST Dont offer the world when
only the UK is possible. Dont make
promises that sound empty. With your
qualifications and experience well have
no problem finding you a job. How many
times have I heard that remark?
OFFER ADVICE Be constructive in terms
of what could/should be done while still a
PQ. Additional reading/training/contact
points.
KEEP IN TOUCH Maintain regular
contact and feedback but dont sound as
though you are ticking a box.
PQ
What do you want from recruitment consultants? Heres what our readers say
Adam Pearce, head of Part and Newly Qualified
recruitment at Howett Thorpe, writes...
The response to this survey is interesting and
highlights two recurring areas for improvement.
Firstly, it is obvious that proper understanding
of a candidates specific needs is critical. This
has more to do with the environment the
candidate is looking for than with matching
specific skills to a job specification.
Clearly it is important to assess an individuals
knowledge and expertise, as well as any areas for
development, although of equal if not more
importance is an understanding of a candidates
preferences including type of business and
culture. It is vitally important, therefore, to listen
to requirements, set realistic expectations and
treat candidates as individuals.
Secondly, communication is an area agencies
need to improve upon. Candidates should expect
a level of care from a consultant, including the
returning of calls and emails. In depth, honest
feedback from interviews should be provided,
good and bad, towards the development of
interview skills and to help with preparation for
the ongoing interview process.
At Howett Thorpe we have a team of highly
experienced consultants, all of whom have over
five years service within our business and we
strive to exceed our candidates expectations in
terms of service levels. By doing the basics
correctly long-term relationships can be forged
between consultant and candidate, and we pride
ourselves on the candidate network we have
developed. However, we acknowledge there are
always areas we can improve on. There has been
a dramatic increase in candidate registrations
over the past two years owing to the downturn in
the market and it is all too easy to let standards
of service drop. As an industry we need to
remind ourselves that our survival depends on
candidates wanting to use our services and so
the process must be a positive one.
The professionals view
Pearce: long-term
relationships can be formed
PQ Magazine June 2011
25
CIPFA TPC PQ
Strategic Business
Management Paper
1
Try not to panic. In terms of SBM the
amount of research you have to do can be
overwhelming, but try to work in study groups. At
college, the lecturer suggested that we should
write our names and email addresses on a sheet
of A4 that then got copied and handed out so we
could communicate easily. It started off with one
person sending a where on earth do we start
email after our miserable progress test results,
then we set up a Google group for the SBM
class. This had numerous discussion threads.
2
Share every article you find on the Google
group. Dont do what our group did and
share the work; we agreed that a week before
the exam we would share our research. Instead,
post the link to any article you have found; this
will encourage others to do the same and you
should have access to far more articles than you
would have found on your own.
3
Read the textbook. This may not be
everyones cup of tea but I took a week to
read that thing and some of the examples were
really easy to remember, and made memorising
the theory a lot easier. Sometimes the textbook
repeats itself. Dont skim over this, its to
hammer home an important point or issue. Make
sure you thoroughly understand it and dont just
think it is a waste of your study time.
4
Practice the A4 sheet well in advance of the
exam. Dont leave it until the morning of the
exams to print off your one and only copy of the
sheet, because you just know youre printer will
break down. Have a few iterations of your sheet.
As you get to know your articles and the syllabus
better you will be able to increase the amount of
material (while remaining legible).
5
Attack it from a number of different angles.
When doing your research you need to
ensure you have covered all the angles. Once
you have got the Pre-seen material and know the
focus of the exam, you could break down the
NSF chair Jane Cika provides hints
and advice to fellow students on
how to pass those final two papers
All in this
together
9
PJI: Point, Justify, Illustrate. In your answers
make sure you make a point, justify it and
illustrate it with an example and article if you
can. Then make the next point, justify it and
illustrate it. Then make the next point, justify it
and illustrate it
10
Understand the marking scheme. Once
you know the way the paper will be
marked, namely on the number of points made,
you will know what to provide in your answers.
Finance & Management
Case Study
1
Practise, practise, practise whatever youre
not comfortable with. I was happy with the
calculation side of things (make sure you have
gone back and memorised those formulas and
done a few examples) so I concentrated on
report writing. Some people feel the opposite
whatever you feel youre not comfortable doing
under pressure thats what youll need to practise
(sorry, stating the obvious I know).
2
Split you time up. When I got into the exam
I would look at the mark allocation for
questions 2, 3 and 4 and pro rata the exam time
per question. In the morning, I would spend an
hour reading the materials and then the
remainder of the morning was split between 2, 3
and 4 for calculations only. Once I came back in
the afternoon I would again have split the time
up between the questions, leaving a 30-minute
slot at the end for finishing off longer parts of
questions. I would start off writing the reports or
briefing notes and would make assumptions if
necessary under the time restrictions.
3
Remember that if youre writing a report to
the Director of Finance the difference
between overspending by 11,623,978.67 and
12m will not change the decision to cease a
programme or stop funding a project.
4
When reading the Pre-seen look at the
different data youre given and try to find
ways to interpret the data with the formulas you
have learnt in your studies.
5
Dont underestimate question 4 its very
easy to get carried away doing the lengthy
questions 2 and 3. Dont forget you have to score
at least 15% in all questions or you will fail. Set
time restrictions for all questions and stick to it
as mentioned above.
6
Sort the information given to you. In the
exam, when you read the pack of materials
you are given you need to have a method of
highlighting which parts of the materials relate to
which of the four questions. Different people
develop their favourite methods for this. Some
people take out the staple and put the pages into
a pile for each of the questions; all very well until
you find a page which has some information for
Q2, Q3 and Q4, and possibly Q1. Some people
use coloured highlighters all very well until
under exam pressure you use the wrong colour
highlighter! I ended up using Post-It tabs all
pages are kept together and you can flick
between them easily, and if you initially thought a
paragraph related to question 4 but you change
your mind then you can change the tab and still
read the information.
7
Read a couple of reports at work. If youre
not in a job where you write these
frequently, get hold of a couple of high-level ones
and become familiar with the writing style.
PQ
Pre-seen into paragraphs and ensure you have
an article for each paragraph; then you could do
a mind map around the topic and find articles
relating to each item on your map. Make sure
you dont forget the smaller parts of the public
sector; if you can find an article related to the
topic add it to your research.
6
See if you can find someone who knows the
Pre-seen topic well to talk to, as they may
give you a new angle to research.
7
Dont realise at 6am on the day of the exam
that the exam starts at 10am and not 2pm
as you had assumed! Still cant believe I did this.
8
Book plenty of annual leave even during
closedown. Negotiate early and try to get as
much as you think you need dont
underestimate the amount of work required for
these exams. Your manager may tell you that
they cant do without you in this period but so
long as you organise yourself well and ensure
you meet all your deadlines they should
understand that youre requiring their support
for, fingers crossed, the last set of exams.
26
PQ Magazine June 2011
PQ CIMA examiners conference
The F2 examiner looks at the
verbs and explains what needs
to be done better
E
xaminer Luisa Robertson spent a lot of
time on her discussion of F2 Financial
Management talking verbs. She went
through the various sections and pointed out
what type of verbs students will see in her
exam papers. For section A, candidates can
expect level 2 explain and level 3 verbs
prepare, demonstrate and apply. For
section B, she will use level 4 discuss. In
section C, expect to see explain again and
level 4 verbs produce, analyse and discuss.
There might also be evaluate from level 5.
Finally, for section D you will need to explain
and discuss.
With this in mind Robertson said it was
tutors responsibility to equip students to be
able to handle the level of verbs thrown at
them in the exam.
The use of language has an impact on how
these areas are tested. For example, she said
for financial instruments candidates will have
to articulate accounting treatment, although
they are often given the numbers to help
illustrate the dilemma.
FINANCIALMANAGMENT:
MINDYOURLANGUAGE
Robertson then went on to identify the
problems in the various sections. Here is what
she saw as the areas that need improving the
nearest you will get to tips from the examiner:
Section A consolidation
NCI % x total group profit.
Preparing full income statement for associate.
Proportionately consolidating subsidiary.
Intra-group transactions associate/sub/
parent.
Preparing workings not required for question.
Section B complex transactions
Generally explain poorly answered.
Pensions: no understanding of how reflected
in SOCI and SOFP.
Financial instruments: OMG!
Section C financial analysis
Improved but relevance still an issue.
Not reading the scenario.
Ratios for 8 marks.
Weighting: not prepared for 10 marker.
Section D developments
Standard answers being prepared.
Not being specific to required section.
Robertson felt there was no evidence of time
pressure in the exam papers. She felt that
Section B (complex transactions) was an area
where tutors can really add value, helping
students learn the five main technical topics
SYLLABUS WEIGHTINGS
Group financial statements 35%
Issues in recognition and measurement
20%
Analysis and interpretation of financial
accounts 35%
Developments in external reporting 10%
LEARNING OBJECTIVES
Section A
Prepare full set of group financial
statements.
Explain the principles of accounting for
foreign exchange and capital schemes.
Section B
Discuss accounting principles and relevance
to accounting issues of contemporary interest:
- Financial instruments.
- Pensions.
- Share-based payments.
- Substance over form.
- Valuation methods.
Section C
Produce a ratio analysis from financial
statements and supporting information.
Evaluate performance and position.
Section D
Discuss contemporary developments in
financial and non-financial reporting.
WORDS
COUNTTOO!
You cant pass P1 by numbers, explains the examiner.
Heres why you need to be prepared to get writing
F
rom the outset, P1
examiner Mira Steven
emphasised that any of
the learning outcomes can be
examined in any section of the
paper. Material included in the
syllabus for any of the papers
within the CIMA Certificate in
Business Accounting Qualification
can also be assessed in the
operational level of the syllabus.
Some 60% of the P1 syllabus is
new from P2 and P7. This
makes it a wide-ranging syllabus.
Added to this is the fact that
100% of the questions are
compulsory.
Steven said candidates have in
the past found management
accounting more difficult. There
is a clear balance of discursive
and computational marks. The
numbers will range from 65% to
70%. The rest is words.
Pass rates for the last three
sittings have been 46%, 53% and
52% in the UK and she admits
she is disappointed in the rates.
Her key concern is the poor
performance in key areas.
She is curious to know why so
many candidates do not attempt
the discursive parts of the 25-mark
questions. There is no evidence to
suggest that this was due to a lack
of time, so she puts it down to poor
basic exam technique.
Steven wants to see better layout
of computational answers.
When is comes to the words bit
of the paper, many sitters answer a
different question. They also make
general rather than specific points
showing their lack of knowledge.
Others are just not applying the
correct verb.
The examiner then listed her
areas for improvement; here are
some from the 2010 exams:
Calculation of mix/yield variance
and planning/operational variance.
Dealing with batch level costs
(ABC).
Relevant/irrelevant costs.
Working capital.
Decision trees.
Regret tables.
Value of prefect information.
Calculation of market value and
yield to maturity of bonds.
Working capital ratios.
On top of these are the
understanding of verbs, a lack of
understanding of theoretical aspects
and poor answer layout.
Finally, she stressed it was vital
that PQs dont rely on passing the
P1 exam based on computational
questions alone. It wont work, she
promised.
SYLLABUS WEIGHTINGS
Cost accounting systems 30%
Project appraisal 25%
Managing short-term finance
20%
Dealing with uncertainty in
analysis 15%
Budgeting techniques 10%
ASSESSMENT STRATEGY
Section A (20 marks) A variety
of compulsory OT questions, each
worth between two and four
marks. Mini-scenarios may be
given, to which a group of
questions relate.
Section B (30 marks) Six
compulsory short answer
questions, each worth five marks.
A short scenario may be given, to
which some or all questions relate.
There is a mix of discursive and
calculation questions in this
section.
Section C (50 marks) One or
two compulsory questions. Short
scenarios may be given, to which
questions relate. There are
normally two 25-markers and the
examiner said she has no
intention to include a 50-mark
question.
PQ Magazine June 2011
27
CIMA examiners conference PQ
THEEYESAND
EARSHAVEIT
The P2 examiner said its time you came to your senses and used your eyes and ears
P
erformance Management P2
continues the analytical theme of P1,
said examiner Colin Wilks. He felt the
paper should help PQs apply information in
the management processes of decision making
and control to optimise performance.
Section A and B deal with the key
contributors to operational performance
revenue (decisions of what to produce at what
price) and costs (how to manage them to
maximise profitability).
Sections C and D look at the role of control
in monitoring and improving performance,
dealing with budgeting and principles and
practices in the use of responsibility centres.
The papers assessment is split evenly
between section A and section B, both worth
50 marks each.
Section A consists of five compulsory
medium answer questions, each worth 10
marks. Short scenarios may be given here, to
which some or all questions relate. For section B
students can expect one or two compulsory
questions. Again, short scenarios may be given,
to which questions relate.
Wilks said what lets candidates down in the
exam hall is poor knowledge of basic concepts
and poor calculations. He is also concerned that
PQs cant see the bigger picture and how topics
link together in the larger questions.
When it comes to marking, he said marks are
awarded for the correct calculations and
approach. Typically, it means half to two marks
per valid point and markers use the own figure
rule.
He pointed out that verb levels also go up in
P2, so rather than explanation he is expecting a
discussion. He advised all CIMA PQs to read the
David Harris article on Verb Hierarchy. It might be
nine pages long, but after you have read it you
will be in no doubt about what is being asked.
One thing students dont seem to do is
practise questions, Wilks ventured. Sometimes
it seems the first time they have sat one of his
questions is in the exam hall. Why arent they
practising? he asked.
Wilks pointed out that management
accounting is not as black and white as
financial management. That means candidates
biggest assets are their eyes and ears. Why is it
cheaper to travel on the trains after 9.30am?
Why would someone pay $12bn for Twitter?
His final parting piece of advice is to pay for
a revision programme. That is, of course, if you
are serious about passing.
SYLLABUS WEIGHTINGS
A. Pricing and product decisions 30%
B. Cost planning & analysis for competitive
advantage 30%
C. Budgeting and management control 20%
D. Control & performance measurement of
responsibility centres 20%
CALCULATING
SUCCESS
Margaret Stewart explains how to manage the P3 syllabus and get that pass
U
nderstanding how the
examiner ticks when it
comes to management of
financial risk (MFR) is vital to
getting a pass at P3. The
examiner is Margaret Stewart and
she said MFR will always be in Q1
and another question. Generally
speaking, however, she was happy
with what students were doing in
the exam hall in November
2010 candidates who did Q4 were
excellent at the small calculations
and scored high marks. Keep it
up, she said. Her only word of
warning was for students to learn
those calculations.
The performance of students
when it comes to risk and internal
control can be more variable. They
are good at the various models and
categories of risk but their answers
lack structure, and Stewart pleaded
with candidates not to answer
questions that ask for a discussion
with bullet points.
Answers to the review and audit
control part of the syllabus can be
weak and students have to think
about what the aims of an audit are
here. Knowledge of the interaction
between internal and external audit
is poor, as is the planning of various
types of audit based on scenarios.
A particularly weak area for many
PQs is the risk and control in IS.
She didnt even want to talk about
how badly students did with
November 2010s Q2b. What she
wants is candidates to concentrate
on issues that affect IS, not manual
systems.
When it comes to the smallest
part of the syllabus, management
control systems, Stewart felt there
were no particular problems.
She then reiterated the
importance of management of
financial risk. It is difficult to pass
the exam if you are weak in this
area, she said. The risk here is
mainly currency risk. Candidates
also have to remember as it will
always be in Q1 and therefore
compulsory, candidates can no
longer avoid this topic.
Turning to the most recent main
exam she was perplexed about
why candidates avoid calculations.
They also seemed to have very
poor knowledge of economic risk.
It comes up in most exams but
candidates do not know what it is.
Not using the specifics of the
scenario in their answers was
another major failing.
Looking ahead, she stressed the
exams will follow the same format.
That means scenario-based
questions. Most questions will
require a discussion and she
again said bullet points will not
achieve high marks (please take
the hint!). She stressed that main
calculations will examine currency
risk, which could be in Q1. And, if
candidates do the calculations
well they can get very high marks.
Expect them in most diets.
SYLLABUS WEIGHTINGS
Management of financial risk
35%
Risk & Internal control 25%
Risk & control in information
systems 15%
Review and audit of control
systems 15%
Management control
systems 10%
28
PQ Magazine June 2011
PQ practical tax
Looking to further your tax knowledge or progress
your career in tax?
The ATT has the answer with its new exam structure
offering a choice of seven subjects.
Gain a Certicate of Competency or continue to
full membership of the leading professional body
dealing with UK tax compliance.
The choice is yours!
For further details please visit the ATT website at
www.att.org.uk or call the Association of Taxation
Technicians on 020 7340 0551
Reached the top?
The Association of Taxa TT tion Technicians TT
T
he vast
majority
of UK
citizens pay their taxes, leaving a minority
that deliberately do not, and it is these
tax evaders who are taking money that
could be spent on vital public services.
HMRC has launched a programme
called Managing Deliberate Defaulters
(MDD) in order to monitor the tax affairs
of individuals and businesses who have
deliberately tried to evade tax. The
programme aims to ensure that those
who have defaulted in the past change
their behaviour and pay their fair share of
tax. It also aims to reassure honest tax-
payers that we will penalise tax evaders.
Weve worked closely with the tax
Brian Redford of HMRCs
Business Customer Unit
explains its new hands-on
approach to tax evasion
HMRCgetshands
on withtaxcheats
agent community to develop this
programme. The message we want to get
across is: Play by the rules or face
greater scrutiny.
As of February this year, sole traders
and small businesses who have
deliberately tried to pay less tax than they
should could find their businesses
singled out for extra inspections by
HMRC, for up to five years. Deliberate
evaders identified since 6 April 2009 will
also face additional scrutiny.
The level of monitoring will depend on
the seriousness of the tax evasion. We
will continue to check that returns are
filed on time and that any tax that is due
is paid on time. But there will also be
regular reviews of a deliberate defaulters
tax affairs, to check that they have put
right any errors or failings.
HMRC can monitor a deliberate
defaulters tax affairs in a range of ways,
including by:
Announced or unannounced inspection
visits to check business records.
Requesting certain records.
Asking for additional information or
documents to accompany a persons tax
returns.
Conducting in-depth compliance
checks into any part of a persons tax
affairs.
Observing or recording a persons
business activities and cross-checking
details in their accounts. HMRC may
make test purchases or inspect the
records of suppliers or customers.
For VAT-registered customers HMRC
may also take the following action to
monitor compliance:
Require submission of quarterly or
monthly VAT returns.
Require the same accounting periods
for VAT and income tax or corporation
tax.
Withdraw the use of certain schemes
such as flat-rate scheme, cash
accounting, annual accounting or retail
schemes, if its considered necessary to
enforce compliance.
Evaders who fail to keep their tax
affairs in order will face increasingly
intrusive intervention from HMRC. If
deliberate evasion continues, HMRC may
start criminal proceedings. If a deliberate
defaulter starts a new business, this may
also be monitored.
For more information about managing
deliberate defaulters see www.hmrc.
gov.uk/about/tax-defaulters.htm
PQ
PQ Magazine June 2011
29
practical tax PQ
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F
or VAT specialists one of the most
loved topics is the VAT liability of
food and drinks, demonstrated by
the infamous Jaffa Cakes, teacakes,
Pringles and Innocent Smoothies
cases. Now a recent case of the
European Court of Justice (ECJ) has
stirred up something of a hornets nest for
HMRC yet again.
Under UK VAT legislation cold take-
away food is zero-rated. However, if
take-away food is heated above
ambient air temperature it no longer
qualifies for zero-rating and 20% VAT must
be charged. This is because the UK
regards the supply of hot food as catering
services rather than a supply of foodstuffs
(which is a supply of goods). There have
been numerous cases on whether food
has been heated above the ambient air
temperature to enable it to be served hot,
or whether it is heated to demonstrate that
it is freshly baked (see the recent
Takeaways a
VAThot potato
Deliverance case).
However, the recent ECJ case of Bog
and Others has thrown considerable doubt
over whether hot take-away food should
be standard-rated at all. In the appellants
case, hot food was prepared and supplied
to customers from premises that did not
provide tables from which food could be
eaten. Specifically, the venues involved
were stalls, mobile snack bars and cinema
foyers. The ECJ held that the provision of
hot foodstuffs without the supply of any
additional support services cannot turn the
supply from one of goods into one of
services. Therefore the supply of hot food
should be taxable at the same VAT rate as
cold food.
HMRC have already published their
interpretation and maintain that the UK
(which has a special dispensation or
derogation to charge VAT at the zero rate
on food) specifically excluded hot food
from its zero-rate and so there was never
an intention to allow it to be zero-rated.
The Bog case has therefore created a
lot of both anticipation and confusion
among interested parties in the UK, and
suppliers of hot food have already begun
to submit claims for overpaid VAT.
PQ
Sin Beusch,
associate VAT
director, Baker
Tilly
30
PQ Magazine June 2011
PQ exam technique
W
hen you are studying for an
exam most of your energy is
given to understanding the
subject and getting the information into
your head, which, of course, has to take
priority. However, as the exam gets
closer you need to shift your attention
and begin to think about what you need
to do to pass the exam itself. This is
where exam skills help.
One key exam skill is the ability to
read the question and understand what
the examiner wants you to do. It sounds
very easy, yet on the day, with the
pressure of the exam, the simplest of
tasks can seem daunting and mistakes
can be made.
CIMA, like many examining bodies,
recognise that this is a problem and so
to help students better understand what
to do in the exam they have developed a
verb hierarchy, a list of verbs (actions)
that examiners use when setting exam
questions. At the recent CIMA
conference, examiners again stressed
the importance of understanding the
verbs to help students improve chances
of passing.
Different verbs, different levels,
different thinking
The verbs are different dependent on
the level you are studying. What many
students may not appreciate is that by
changing the verb you are not only
changing what needs to be done, you
also change the level of thought
Howverbs can
helpyoupass
Stuart Pedley-Smith cant emphasise enough why its vitally important
you identify the verb in the question, and tailor your answer accordingly
required to answer the question. For
example, there is a different thought
process behind a question that asks you
to define (to give the meaning of
something) compared to recommend
(to advise a course of action). To define
something you have to do little more
than memorise the definition and
reproduce that definition in the exam,
whereas to recommend you need to
consider all the information in a given
context, possibly having undertaken
some analysis and then advise on a
course of action. This requires a far
higher level of thought and as a result
you will not have to deal with these
types of questions until you get to the
final levels, Managerial and Strategic.
These verbs build, each supporting
the other and each requiring a different
thought process. When you get to
Strategic level all of the verbs can be
used, not just the ones at the higher
levels.
Some verbs are easier than others
CIMA even highlight the verbs to make
them stand out, see this extract from the
March 2011 F3 exam.
(c) Advise the directors of TM on an
appropriate financing structure for net
current assets and explain the benefits
and potential problems of using euro
denominated finance. (7 marks)
But some verbs are easier to
understand than others. Take the verb
calculate; this clearly requires you to
produce some numbers, a mathematical
solution. But what about the verb
describe? CIMA suggest that this
means to communicate the key
features. But how do you go about
describing something, how do you
communicate key features? Well, why
not use your minds eye to visualize what
it is you are trying to describe. Imagine
that you are in that situation. What can
you see? Now just write it down.
Then there are the very difficult ones.
In the question above you are asked to
explain. CIMA suggest that to explain
you should make clear, or intelligible,
state the meaning of. To help explain
something it is a good idea to define
some of the more technical words. So in
this question start by defining what euro
denominated finance is, then identify
what the benefits and problems are of
using euro denominated finance. And if
that is not clear or if it requires a more
in-depth answer, indicated by the
number of marks, consider giving an
example to illustrate your point.
There are 25 verbs in total and
although you dont need to spend a lot
of time looking at all of them, when you
next attempt an exam question
underline the verb and take a second to
think what the examiner is asking you to
do, it could mean the difference
between passing and failing.
PQ
Knowledge
Comprehension
Application
Analysis
Evaluate
How you are expected to use
your learning to evaluate, make
decisions or recommendations
How you are expected to
analyse the detail of what you
have learned
How you are expected to
apply what you have learned
What you are expected to
understand
What you are
expected to know
THE VERB HIERARCHY
A full list of the CIMA verbs can be found on the CIMA website
Stuart Pedley-
Smith is a senior
tutor at Kaplan
Financial and
former
PQ magazine
Lecturer of
the Year
to advertise call 020 7216 6444
on the
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32
PQ Magazine June 2011
PQ ICAEW focus
PQ Manchester students
T
he IASB has issued an exposure draft
that will impact the current accounting
of leases. The Exposure Draft Leases
proposes to replace the current Standard IAS
17, which distinguishes between two
approaches, finance leases and operating
leases. The result of the new standard will be a
single approach to lease accounting. So lets
explore the why, how and implications of the
new approach.
Summary of current treatments
Finance leases recognise a non-current asset
and a liability in the lessees statement of
financial position due to considerations like risks
and rewards having been transferred to the
lessee. This results in the asset being
depreciated and the liability being accounted for
under amortised cost. For operating leases,
however, the lessee does not show the asset or
liability on the statement of financial position but
simply account for the lease payments as an
expense over the lease term.
Problems with the current system
Firstly, the accounting of an operating lease is
conceptually flawed, since the entering into an
operating lease both meets the definition of an
asset and liability. On entering into the lease the
lessee obtains the right to use the asset and
therefore get the economic benefit. Additionally,
the lessee assumes the obligation to transfer
economic benefit by way of contracted rental
payments. Operating leases therefore result in
off-balance sheet finance that impacts ratio
calculations and comparability between
companies. This means that the users of
financial statements have to estimate the effect
Anewleaseof life
of operating leases on financial leverage and
earnings. Finally, the judgement required to
classify the asset correctly opens the door for
financial statement fraud, where leases can be
structured and designed to achieve a particular
accounting outcome, (namely operating leases
have no impact on gearing).
How would the new standard
change things?
Since the lessee in an operating lease has
acquired the right to use the asset and pays for
that right over a lease term, the lessee would
record an asset and liability (see table, left).
Implications
Although this new approach will rectify some
problems it also creates some new ones. The
commercial implications of recognising all
current operating leases onto the statement of
financial position will substantially increase the
assets and liabilities balances. This will have a
huge impact on key ratios such as gearing. This
in turn could impact on bank covenants and
loan agreements. It may also add to the cost of
preparing the financial statements. The exposure
draft includes questions on the proposal and is
available to read at www.ifrs.org. A new standard
is set to be published later this year.
Ryan Hill, Financial Reporting and Audit
Tutor, First Intuition, Reading
PQ
Ryan Hill explores the implications of a new approach to lease accounting
A good time was had by all at the MCASS Annual Dinner and the King put in an appearance, too!
I
t had to be a worthwhile occasion to get
Elvis along, but even The King himself
knew that this event would be worth
attending. He came, he saw and he certainly
conquered.
No one could accuse the Manchester Student
Accountants of the age-old boring stereotype
when some 430 people attended the Las Vegas
themed MCASS Annual Dinner in March, to
acknowledge and reward those leading the way
in the professional stage exams.
The iconic Midland Hotel received a touch of
Vegas glamour as guests were greeted by the
famous Las Vegas Showgirls and a champagne
reception. A magician mingled with the guests,
displaying his astonishing trickery before dinner
was called. Guests were seated at their famous
hotel themed tables while the showgirls
performed an opening dance routine, complete
with high leg kicks. Elvis then provided the
perfect backdrop as he crooned his way through
the delicious starters and main courses.
During dessert the MCA President, Su Rai,
presented prizes to those who obtained the
highest marks in the professional stage exams.
During coffee the raffle was drawn, raising over
1,200 for the NSPCCs Childs Voice Appeal,
equal to answering over 300 calls.
Of course, no Vegas themed event would be
complete without casinos and so gambling
commenced straight after dinner (with fake
money, of course). However there was still
everything to play for as a prize remained for the
person who turned their 100 starting money in
to the most. One lucky winner won a day trip to
France, courtesy of Ace of Diamonds Casinos,
for making over 5,000!
MCASS would like to thank everyone for
attending and for the continued support of all the
sponsors throughout the year. A special thank
you goes to the sponsors of the evening:
Training-By-Eos, Evuna, Think Global
Recruitment, Vertigo Restaurant and Bar and
Michael Page Finance, as well as the generous
raffle prize donors.
We look forward to seeing you at our next
events!
PQ
FUTURE EVENTS
Coming soon... the AGM your
opportunity to join the MCASS committee!
For more information please visit
www.mcass.org
VIVA LAS VEGAS!
Asset
Liability
Initial recognition
At the present value of the
lease payments discounted
using lessee incremental
borrowing rate
Initial recognition is the
same value as the asset
Subsequent recognition
The asset is depreciated
over the shorter of the
lease term and economic
life
The liability is accounted
for under the amortised
cost approach
Presentation
Presented within PPE
category but separate
from assets that lessee
owns
Split between current
and non-current
liabilities
PQ Magazine June 2011
PQ careers
Khurrum Beg, 32, has worked as a decision support business analyst, based in Bromley,
for nearly four years. He has an economics degreee and is our current NQ of the Year.
His claim to fame is that he was once the victim of an Ant and Dec TV wind-up!
Life at RBS Insurance
What time does your alarm
clock go off on a working
day? 6am.
Whats the first thing you do
when you get to your desk?
Check my e-mails then get a full
English breakfast.
Whats on your desk? Churchill
Insurance dog.
Whats the best thing about
where you work? Working in
the central finance team allows
me to view the business from the
bigger picture.
Wheres your favourite place
to go for lunch? Local kebab
shop.
What (or who) can you see
when you sit at your desk?
Financial accountants, cupboards
and NCP car park.
Which websites are your
favourites and why? BBC as it
contains latest news, economic
updates and sport.
Which websites do you use
for work? CIMA, ACCA, BPP and
PQ magazine (for my additional
role as study coordinator).
How many hours a week do
you spend in meetings? Two.
What time do
you leave the
office? Can be as
late as 10pm
during month-end;
however, no later
than 6pm outside
of month end.
How do you relax? Lying down
on the sofa watching football,
boxing or cage fighting.
Whats your favourite tipple?
I dont drink alcohol.
How often do you take work
home with you? Very rarely.
What is your favourite TV
programme? Only Fools and
Horses.
Summer or winter? Summer.
Pub or club? Pub, as Im too
humble to show off my dancing
skills.
Who is your hero?
Mike Tyson.
If you had a time
machine, where
would you go? Back to
2005, as thats the last
time Arsenal won a
trophy.
If you hadnt chosen
accountancy, where might
you be right now?
Land surveyor (not as glamorous
as accountancy).
Market report: retail on a roll
James Priestley, UK Head of Part
Qualified recruitment at Hays
Accountancy and Finance, provides
candidates with an update on PQ
demand in the labour market
The demand for PQ professionals across all sectors
is strong at present. Whereas vacancies declined
during the recession, as businesses looked to cut
cost, demand is picking up again as
confidence begins to return
to the majority of markets.
Retail, for example, has
shown increased interest in
employing PQs that can
strengthen their market
proposition in a new and
challenging trading world.
Typical key skill areas that
are in demand at present are analytical, cost control
and forecasting. This is because businesses want to
take stock of what they have now and understand
what budgets they have to work with in the future.
PQs will need to be able to look at data, and
interpret and advise on future markets and budgets.
SMEs are well aware of the benefits a PQ can
bring to their organisation. As well as advising on
future markets and looking at new ways of reporting,
PQs also bring an element of commitment. Many
professionals will be keen to stay with an employer
during their studies, particularly if the organisation
supports them through to qualification.
Large companies are also keen to snap up top
talent and in a bid to attract the best many are
offering competitive packages, with study support
and commitment to support professionals qualify.
This means many talented PQs are given time off to
revise for, and sit, exams and their employer
also supports associated costs such as buying
textbooks and paying for training.
While the market is looking strong
organisations still prefer to wait until they find
someone who has the right skills and
experience for the job role. To secure a
position professionals need to be able to
demonstrate that they have the skills a
company needs, taking into account market changes
and current trends. Gaining an understanding of how
a company has fared during the recession, what
decisions and cutbacks they made, including their
plans for the future, will help to demonstrate to the
employer that they are eager to understand their
market positioning and drive business forward.
See www.hays.co.uk/accountancy for more details.
The PQ Book Club
EVERY MONTH WE REVIEW THE
BOOKS YOU SHOULD BE READING
Whoops! Why
everyone owes
everyone and no one
can pay, by John
Lanchester (Penguin,
9.99)
RE-ISSUED last
October, this critique
of modern banking
tackles a subject
that is hotting up again in 2011
in the light of the recent Vickers report
into UK banking. Sir John Vickers (as
you know) led the commission into
banking reform that reported in April.
So while you wait with bated breath for
the full report in September, enjoy this
searing indictment of a sector that
many believe exercises great power
without showing concomitant
responsibility. Lanchester is one, and
he argues his case with clarity and wit
and a dazzling array of statistics that
leave the reader shaking their head in
disbelief. Heres one: in April 2008,
then chancellor Alistair Darling
thought the projected deficit for the
next year would be 38bn; in April
2009, it had grown to 175bn. Or: In
2003 the size of the world economy
was $49 trillion; the size of derivatives
being traded was $85 trillion. Or: after
the Icelandic banking crash, the
countrys debt was equivilent to
116,000 per man, woman and child.
Someone sneaked in the back door
and took all our savings while we
snoozed in our favourite armchairs.
Have we forgotten to lock up again?
Hugely enjoyable and funny,
its terrifying, too
Capitalism 4.0: The
Birth of a New
Economy, by Anatole
Kaletsky
(Bloomsbury, 20).
YOU ARE at a
dinner party and
someone says that
we could go the
same way as the Greeks and become
nationally bankrupt. Well, Kalesky is
quick to explain countries with their
own currencies do not go bankrupt.
And financial markets do not have the
power to force them to reduce public
borrowing. However, voters do! He is
predicting Britain will cut public
spending and privatise parts of the
NHS because voters will reject the
enormous tax burdens implied by the
present structure of the welfare state.
Seek this out.
Easy to read, insightful and
provocative. Kalesky is prepared to say
from the off that markets are often
wrong
34
Too much booze
The average Briton hits the
bottle at 7.11pm on a weekday
night, with the typical working
adult reaching for an alcoholic
beverage just an hour and 25
minutes after arriving home, a
study by Benenden Healthcare
Society has found. The survey of
3,000 people found that three-
quarters conceded that they
needed a drink to unwind and
one in five admitting that they
drank too much. Brits need to
ensure that they are not reliant
on alcoholic drinks as part of a
day-to-day routine, warned
Lawrence Christensen, head of
communications.
Not networking
Despite what we hear about
social medias role in recruitment,
recent research suggests it is not
being adopted by recruiters and
jobseekers as widely as expected.
According to figures from Robert
Half, around half of recruiters
(52%) and jobseekers (49%)
havent used social media as part
of the recruitment process. Still,
be careful what you post on
Facebook just in case!
In brief
Business Analyst
Twickenham, Middlesex Ref: HG1276/39
To 35,000
This highly reputable organisation is currently seeking a Business
Analyst to provide detailed nancial support and assistance to the
companys Standards division, under the direction of the Divisional
Finance Manager. The Business Analyst will be responsible for
the monthly management reporting and provide support to the
quarterly forecasting process and annual budget process. The ideal
candidate will be an ACA/ACCA/CIMA part qualied accountant with
experience gained in a commercial environment.
Corporate Accountant
Walton On Thames, Surrey Ref: HG66/24
45,000 + Benets
My client is seeking a Corporate Accountant. The Corporate
Accountant will be responsible for preparing monthly management
accounts for corporate companies including balance sheet
reconciliations and analyses of key accounts as well as accounting
for foreign exchange and treasury transactions. You will also be
responsible for leading the forecast, budget and planning process
for corporate companies. The ideal candidate will have a sound
technical accounting competence including knowledge of accounting
standards and treasury activities including hedging.
Fund Accountant
Epsom, Surrey Ref: HG880/16
To 38,000
My client is seeking a Fund Accountant, responsible for preparing
annual and interim nancial statements for a wide range of funds
within the different legal status. This role will entail preparation of
Board papers for the investment trusts; revenue forecasts and yields
as well as production of quarterly VAT returns. The ideal candidate
will have previous work experience in the Financial sector and an
understanding and knowledge of the investment management
business.
Business Support Accountant
Teddington, Middlesex Ref: KB35/4
To 25,000
My client is seeking a Business Support Accountant. The primary
role of the Business support function is to assist the business in the
application and compliance of new and existing Accounting Policies.
You will be responsible for administering and ensuring compliance
with the current business controls projects, including accurate
tracking of weekly cash performance, maintenance of a monthly
controls pack and development. The position is a developmental role
for a graduate or early studier who will learn systems, accounting
methods and gain insight into the business model.
For more information please contact
Hylton Gunter hyltongunter@walkerdendle.co.uk 020 8408 9982
or Kelsie Bufton kelsiebufton@walkerdendle.co.uk 020 8408 9983
To discuss current temporary/contract opportunities, please contact
Charles Phipps charlesphipps@walkerdendle.co.uk 020 8408 9980
Walker Dendle Financial Recruitment
Swan House, 51 High Street, Kingston KT1 1LQ
T: 020 8408 9999 www.walkerdendle.co.uk
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Howett Thorpe Recruitment Consultants Ltd
The Courtyard, 16 West Street
Farnham, Surrey, GU9 7DR
Call us on 01252 718777
recruit@howett-thorpe.co.uk
Where Individuals Count
Financial Accountant - Woking
40-45,000
Full study support, pension, bonus
Due to continuous growth at this global market leader
the need has arisen to recruit a technically strong part
qualified accountant. Working within one of their
larger business units you will work closely with the
Financial Controller to provide timely financial
reporting and analysis and ensure the smooth running
of the month end process. The expectation is that you
will be in the role 18 months before moving on
internally within the business.
Management Accountant - Woking
32,000
Pension and full study support
A fantastic opportunity at an instantly recognised
business for a Part Qualified Accountant. This role will
give exposure to all aspects of the management
accounts process and enhance your commercial skills
as you will have extensive involvement with senior
non finance staff, influencing key business decisions.
You will also work closely with the Finance Manager
reviewing current controls and implementing change
when required.
Finance Manager - Guildford
40,000
Full study support and bonus
Bucking the trend and exceeding all expectations this
innovative SME now need a focused Finance
Manager. Supporting the Financial Director you will be
responsible for all aspects of the management
accounting process and statutory reporting
requirements for the company. This role will have
direct interaction with the business, suiting a part
qualified/finalist looking to develop and enhance their
commercial skills.
Assistant Accountant - Nr Farnham
27,000
Study support and free parking
With aggressive expansion plans in place this
innovative SME now need to recruit an additional
head within their finance team. You will have direct
involvement with the production of the management
accounts as well as working closely with the FC to
ensure that the right controls are in place to
accommodate the next phase of growth. Its an
exciting time to join a business such as this as the
future career options are limitless!

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hays.co.uk/accountancy
ACCOUNTING OPPORTUNITIES
INVEST IN YOUR FUTURE
Management Accountant
Marlow, Buckinghamshire (moving to Victoria, London early 2012)
To 30,000
Reply is one of the UKs most successful and fast growing IT
consultancies, with an organisational model that combines the
capacities of a large entity with the exibility and specialisation
typical of small structures. As a key member of the nance function,
you will be responsible for full monthly accounts preparation and
review with company partners for three individual companies.
You will be asked to manage ledgers, nancial reporting including
VAT and administration of payroll, pension and benets schemes.
Reply is seeking an ambitious individual to move forward with their
organisation. Ref: 1401581
To discuss this role in more detail, contact Dean Williams at
dean.williams@hays.com or call 0118 959 1751
Assistant Management Accountant
Northallerton
To 25,000
This leading waste management organisation is currently undertaking
a transition of business improvement and is implementing strategies to
ensure future growth. As a result, they require an experienced assistant
management accountant to support the nance team. Daily duties may
include preparing management accounts, assisting with cashow and
budgeting, reconciling cash accounts and cost centre management.
Looking after specic business units, you will be responsible for the day
to day duties that allow the management accounts to be eectively
produced. Ideally studying CIMA or ACCA, you must have a commercial
background within management accounting. Ref: 1369702
To discuss this role in more detail, contact Lisa Bird at
lisa.bird2@hays.com or call 01642 226716
*
*
*Terms and conditions apply
* *
Job opportunities for you..
What you win
Apply for positions now at part.qua||ed@reedg|oba|.com
National winner Regional winner
Reed Spec|a||st Recru|tment Ltd. is an employment agency and employment business
We're on the look out to fnd the UK's No.1 PQ Accountant of 2011
and the rewards are huge! App|y now at www.reedno1pq.co.uk
Ass|stant F|nanc|a|
Controller
London - 40,000
Analysis of P&L expense codes
and cost centres
Multiple account reconciliations and
accrual reconciliations overview
Monthly management accounts,
P&| and cash fow ro|||ng forecast
Reconciliation and Review of all
balance sheet accounts and
bank accounts
Ma|nta|n fxed asset reg|ster,
leased assets register, calculate
depreciation
Working closely with auditors
in preparing year end statutory
accounts
Annual budget process
Management Accountant
Midlands - 32,000
Preparation of monthly management
accounts, investigating variances
and providing commentary
Financial analysis, budget setting,
forecasting and cost control
Production and review of balance
sheet account reconciliations
Undertake and support ad hoc
accounting projects
Prov|de fnanc|a| adv|ce to
budget holders and assist in their
understand|ng of fnanc|a| data
To assist in the investigation of and
completion of internal / external
audit requirements
To assist and mentor the Assistant
Management Accountant
F|nanc|a| Accountant
North East - 27,000
Purchase / Sales Ledger
Management
Managing control accounts
Overseeing Payroll
Assisting with budget preparation
& variance analysis
Nominal Ledger set up &
maintenance
Maintenance of all accounts systems
Providing spend reports to
assist budget holders with the
management of their cost centres
Financial year end and preparation
of aud|t f|e
Advanced Excel and Systems
maintenance experience essential
PQ got a story, funny or serious, you want to share? Email graham@pqaccountant.com
ENTRY FORM
Name: ..............................................
........................................................
Address: ..........................................
........................................................
........................................................
........................................................
........................................................
Qualification/stage ............................
Congratulations to
Paul Smith, a PQ
based in London,
who was the first
out of the PQ hat
with last months
correct solution.
He wins a great
Carol Vorderman
electronic sudoku
puzzle game
the one million
puzzles it
generates should
keep you busy,
Paul! Next month
it could be you,
so get that pencil
sharpened and
get on with it!
Prize Sudoku
M
a
y

s
s
o
l
u
t
i
o
n
1 7 6 4 2 5 9 3 8
4 3 8 9 6 7 1 5 2
5 9 2 1 3 8 6 4 7
8 1 3 7 5 9 4 2 6
2 4 7 8 1 6 5 9 3
9 6 5 3 4 2 8 7 1
7 8 4 6 9 3 2 1 5
6 5 9 2 7 1 3 8 4
3 2 1 5 8 4 7 6 9
6 3 7 1 5 2 9 8 4
5 4 2 9 6 8 1 7 3
8 9 1 3 7 4 6 2 5
2 8 9 4 1 3 5 6 7
7 5 3 8 9 6 2 4 1
1 6 4 7 2 5 8 3 9
4 2 6 5 3 9 7 1 8
3 7 5 2 8 1 4 9 6
9 1 8 6 4 7 3 5 2
Return to PQ Magazine, Sudoku Competition, 4th floor, Central House,
142 Central Street, London EC1V 8AR. Deadline for entries is 06/07/11
PQ Magazine June 2011
FUNANDGAMES
The AAT 2011 conference was the place to discover, share and
ask! The AAT sets the standard for fun and this years event
lived up to its normal billing. Each table at the dinner were
asked to create a new country. PQ magazines Graham Hambly
was on Table 4 and to its surprise made it to the final sing-off,
where it came an honourable second.
So what did we come up with, bearing in mind the CBA
debacle (see last months letters and news pages)?
Name your country: WHAAT!
National dish: Humble Pie thats what AAT people will be
doing
Drink: Arsenic And Tonic an AAT
Country Motto: Try, try, try again, or get it right first time
National Holiday: 1 April CBA gone right day
Four-line national anthem:
(To the tune of the US national anthem)
Oh, AAT
What have you done?
I loved you once
But you never loved me.
Best joke of the evening: One NVQ in the hand is worth
two CBAs in the bush.
Really, you had to be there.
OUR MAN IN CHICAGO
Kieran Maguire, our PQ magazine Public Sector
Lecturer of the Year, finally got his award (he sent
us proof left). He is also currently MMUs
Lecture of the Year and was picking up an
Innovation in Teaching and Learning prize in
Chicago when he should have been with us. Now
hes a bit of a media darling is our Kieran and has
even been on The One Show; he is also a regular
on Radio 5 Live with Steve Nolan. However, he is
prepared to admit that he is the kiss of death
when it comes to TV. He was on ITV digital (gone),
he was Channel Ms Mr Finance (gone), and
starred on Accountancy TV (wheres that now?).
GIRLS ON
THETOWN
Back in 2003 PQ got
together four PQs and
sent them out on the
town in Bristol. We
were contacted recently
by one of the girls, Mel
Horne. She has moved
from Swindon and now
lives and works in Londons Canary Wharf
for HSBC. So how has her world
changed? Well let you judge...
THEN (2003) & NOW (2011)
LIVES
NOW London.
THEN Swindon.
PERFECT NIGHT OUT
NOW Free drinks and plenty of laughs.
THEN Starting off at a girlfriends house
for a few drinks (and drinking games),
then going into town and meeting up with
everyone.
MUST HAVE MAGS
NOW Look magazine.
THEN Heat, for the gossip.
ESSENTIALWARDROBE ITEM
NOW Leggings!
THEN Jeans for every occasion.
IDEAL MAN
NOW Same as last time professional
footballer/Brad Pitt look-alike.
FAVOURITE DRINK
NOW White wine (as long as its not
Chardonnay).
THEN Vodka and Red Bull.
ENJOYS
NOW Socialising with friends, visiting
Londons parks and other attractions.
THEN Meeting up with friends and
shopping. Ive got good intentions about
keeping fit but they never last.
UMISSABLETV
NOW I have Sky Plus:-).
THEN EastEnders and Friends.
WEALL
LOVETAX
Jemma Hill, pictured, was a
finalist at the PQ awards earlier
this year. This Deloitte girl loves
tax and to prove it she put on
one of our t-shirts! Dont forget,
you too could be the proud
owner of one of our I Love Tax
t-shirts. They cost just 12.99
including P&P. Just contact
dom@pqaccountant.com and
he will tell you what you need
to do.
OILINGTHE WHEELS
OF ACCOUNTANCY
PwC has signed a deal
for the largest-ever
office supply of
recycled chip fat,
from restaurants
and bars across
London. It will be used to generate low
carbon energy for the firms new HQ on
the South Bank. PwC will pick up 45,000
litres every month for refining and, once
delivered, it should help provide 25% of
the electricity needed for the building.
A CRISP DEAL
So how much would you
say the Pringles brand
is worth?
In truth it
doesnt
matter
what you think
because someone
(Diamond Foods) was prepared to pay
Procter & Gamble a cool 1.5bn for the
name. Diamond can now add Pringles to
its Kettle Chips, Emerald Nuts and Pop
Secret Microwave popcorn. Pepsi-co still
rules the crisp/snack world with Walkers
and Doritos, but its 25% market share is
under threat.
Now all products made from potatoes
(crisps) are VAT-able. Its best you dont
know how Pringles are made, just to say
they were invented in 1968 and contain
less than 50% potato. That means they
only became liable to VAT (in 2009) after
some lengthy court cases.
Pringe fact 1: P&G executives choose
the name of their new snack after
searching the Cincinnati telephone book
and coming across Pringle Drive.
Pringe fact 2: The designer of Pringles
distinctive hyperbolic paraboloid
(cylinder) packaging was buried in his
invention (well, his ashes were).
Do you ever wonder what
happened to Colin, the AATs
superhero? No, nor do we.
However, we did hear that the
star of the campaign is now
the DJ in the Yellow Pages ads.
SUPERHERO TO DJ
M
a
rb
le
A
rc
h
C
a
m
p
u
s
L
o
n
d
o
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Singapore
Campus
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ew
C
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rt C
am
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Churgate House Campus
Manchester
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hancery
Lane
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am
pus
London
Toronto
C
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pus
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anada
Benefit from first-class
resources at LSBF
Shaping Success
In Business and Finance
Study in a way that best suits you:
` LSBF Global Campus allows you
to transition between campuses
seamlessly at no adittional cost for up
to 6 months!
*
` You can fit your studies into your
lifestyle with online, part-time,
weekend and evening courses.
` Succeed with current and industry
focused programme content, with a
growing list of specialised pathways.
` A tailored career service will give you
a sought after competitive advantage
demanded by the worlds top
employers.
Choose LSBF for:
ACCA, CIMA, ICAEW,
AAT, CFA

, IMC, CIM,
MBA & MSc.
FOR MORE INFORMATION VISIT
LSBF.org.uk/PQ
LONDON
LSBF.org.uk
0207 823 2303
BIRMINGHAM
FBT-Global.com
0121 616 3370
MANCHESTER
LSBF.org.uk/Manchester
0161 713 1777
INTERACTIVE
StudyInterActive.org
0207 099 0077
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