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Incorporating NQ magazine

IDE TS
May 2024 www.pqmagazine.com/www.pqjobs.co.uk
w.pqjjobs.co.uk

AUDIT AT THE CROSSROADS

No one it appears, neither current
audit professionals nor prospective
entrants, sees audit being a proper
career choice unless they can
achieve a work-life balance, are
paid proper money and work in a
supportive environment.
Audit professionals also want to
see transparent career pathways
and inclusive work environments.
Hardly surprising then that many
young audit professionals plan to
leave their current employer either
within the next 12 months or within
a few years.
A new extensive study by ACCA
and the Chartered Accountants
Australia and New Zealand found
audit at a pivotal junction, with
professionals expressing concerns
about both a lack of career
satisfaction and the prevailing
practices currently found in audit
firms.
It is achieving a work-life balance
that mattered most. Survey
respondents suggested that there
was also an urgent need to address
at times unsupportive cultures
within firms, which can impair
wellbeing and work-life balance.
The study said firms may be
taking steps to address these
problems, but their initiatives may
lack ‘visibility’.
Remuneration ranked as the
second-most important factor in
the study, reducing the attraction
and retention of talent in the audit
profession in most regions.
Auditors felt that the intensive
workload during busy seasons was
not adequately compensated for.
This was in turn demotivating, and if
it remains unchecked could further
impact the attraction and retention
of talent in the future.
And, as the authors of the report
said, pay will always be considered
inadequate if the impact of a poor
work-life balance is not addressed.
There is also a perception of a
lack of variety of work for auditors.
The rise in regulatory requirements
and standards has heightened
the demands of the job, often
causing audits to feel more like a
compliance exercise rather than a
value-adding service.
However, the authors of the study
said the interest in sustainability
reporting and assurance presents
opportunities to attract, develop
and retain staff.
Technology can also play a part in
attracting people to the profession.
Survey findings reveal a strong
interest in advanced technologies
among individuals considering
entry into the audit profession.
Read the full report at
https://tinyurl.com/57fsscm2

TOO ANXIOUS TO TAKE YOUR ANNUAL LEAVE?

Women working in the accountancy sector may
not be getting enough time off work to recharge
and relax, with new research from caba showing
that over a third of female accountants (41%)
say they’ve avoided taking annual leave on
more than one occasion because they were
anxious about handing over their to-do list.
The study of over 200 female chartered
accountants in the UK found that almost nine
in 10 (88%) women regularly sacrifice their own
work-life balance to accommodate the needs of
others.
A similar percentage (85%) said they struggle
to set boundaries with colleagues and their
manager regarding their time, workload or
personal priorities. When asked why this is, two
in five (40%) said that keeping people happy is
more important. Over one in three (36%) said
they worry they’re not deserving of their place at
the company if they don’t push themselves.
Meanwhile, almost two in three (62%)
respondents said they regularly experience
feelings of self-doubt regarding their abilities
within their role. As a result, one in eight (80%)
said they find themselves seeking validation from
others for their work or decisions.
Two in five (40%) said they’re uncomfortable
telling their manager about areas they feel less
confident in, while four in five (80%) said they
often feel like they need to work harder than
their peers to prove their worth.
When respondents were asked about which
strategies and resources they think would be
helpful in combatting feelings of work-related
self-doubt, the most common responses were
flexible working arrangements (34%), regular
feedback and recognition from their manager
Continued on page 5

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 contents PQ

IN THIS ISSUE May 2024

Features, etc 34 CIPFA spotlight
A note from the Editor 14 Have your say Local authorities struggle to
Lord Sikka is right to question balance the books as funding
Our 21st PQ magazine awards night is here! The role of Post Office accountants pressures increase and demand
shortlist can be found on page 16, and there are lots – and your responses to his for services grows
of shining PQ trophies looking for a new home. Make YouTube video. Plus our social
media round-up 35 Careers
sure you follow all the fun on 22 April. I can promise
Sorry may no longer be the
our finalists and guests are going to be wowed by this 16 PQ Awards 2024 hardest word; our Agony Aunt
year’s venue – Lio London. The red carpet is being rolled
tackles your career queries; and
I don’t have a vote for our awards – independent out for all the finalists for the PQ
magazine awards night. Who our Book Club review
judges do all that – so it was great to be a judge for
the AAT Training Provider awards. After a four-year absence it was nice made it onto our shortlist this 36 Fun
year? The lighter side of life – and
to see everyone in Nottingham enjoying themselves, and I even got
to say hello to my old friend Paul Sizer from Gower College. A perfect 18 New ICAS syllabus accountancy
night then. ICAS explains what the new
The columnists
Our YouTube video of Lord Sikka talking about the Post Office syllabus will look like and how
it is changing the way students Lisa Nelson How to lose that fixed
Scandal has really taken off. Some 5,000 people have already watched
learn mindset 4
it, and it makes for great viewing. Check it out at https://youtu.be/
jkCWvJt0l6A. 19 ACCA podcasts Robert Bruce How diversity
We will have a podcast of our ‘No accounting 4 the love of football’ Association launches podcast shapes UK auditing 6
ready for you next month. We got a great turnout at the Crypt on the series designed to help its PQs
deal with the common issues Prem Sikka State getting new
Green, and big thank you goes to CASSL, ACCA, ICAEW and HMRC
confronting them powers to spy on you 8
Enquires, Investigations & Powers magazine for supporting that one.
Keep reading, and we will keep trying to create content you want to 21 AAT Training Provider Anna Kate Phelan AppIe’s US
read and things you want to listen to! conference special case is one worth watching 10
Graham Hambly, Editor and Publisher, PQ magazine Four pages of conference news
and pix, kicking off with advice Eddie Herbert Helping
News 8 Apprenticeship reform about improving your writing organisations achieve SBI targets 12
Small businesses to benefit from skills. Plus all the winners at the
4 Equality, diversity and
association’s awards; and we p22
inclusion increased apprentice funding
profile a special student with an
Are EDI policies now becoming inspiring story
10 FRC updates standards
‘tick box’ exercises?
Watchdog issues
26 IFA spotlight
5 PQ Awards 2024 ‘comprehensive improvements’
Have you got fit-for-purpose anti
The short list is out now! to FRS 102
money laundering safeguards
6 Accountancy and STEM 12 Tech news in place?
CIMA backs MPs’ call to make Apple sued over
27 AAT exams
accounting a STEM subject. ‘monopolisation’ of US
Budgeting and variances
STEAM, perhaps? smartphone market
explained
29 A question for Tom
Tom Clendon explains the
difference between a subsidiary
and an associate – it’s all about
control
30 CIMA pre-seen
Saddle up for the latest OCS pre-
seen exam
31 ACCA AFM exam
How to pick up the easy marks
in the discussion part of the
AFM exam
32 CIMA spotlight
How to gain understanding of
p18 the subjects that, initially cause
you real a headache

To subscribe for FREE go to www.pqmagazine.com

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PQ the
LISA
NELSON
I don't
understand
this – yet!
Carol Dweck’s concept of a ‘growth
mindset’ has changed the way many
people think about themselves and
their abilities.
At the heart of her idea lies the
belief that abilities and intelligence
can be developed through dedication
and hard work. Dweck contrasts this
with a ‘fixed mindset’, where
individuals believe their abilities are
innate and unchangeable. This idea
alone is hugely motivational.
One of the pivotal terms Dweck
uses is ‘yet’. This small word holds
immense power in shifting perspective
towards a growth mindset and away
from a fixed one. When faced with a
learning challenge you might find
yourself saying, “I don’t understand
this”, which of course may be true.
However, adding the word ‘yet’
acknowledges the difficulty but
expresses optimism that you will figure
it out.
The inclusion of ‘yet’ is a catalyst
for resilience and perseverance. It can
encourage you to embrace challenges
rather than shying away from them,
understanding that they are only
temporary setbacks that can be
overcome. ‘Yet’ reframes failure as a
stepping stone to success and
supports the view that mistakes are
valuable learning experiences rather
than indicators of incompetence.
It is sometimes difficult when
talking about these sorts of theories to
leave people with a clear practical
application, but this is an easy one:
give it a go, unless of course you don’t
believe me ‘yet’.
Lisa Nelson is Director of
Learning at Kaplan
In brief
Watch Lord Sikka in
action on YouTube
We have turned Lord Sikka’s talk
on the Post Office scandal into a
26-minute YouTube video. Where
were the accountants, he asks,
and he believes there should be an
inquiry into their role in the whole
debacle.
PQ columnist Lord Sikka
emphasises that the scandal
shows technology does not solve
many of our problems , and in fact
may actually create more.
He feels accountants need to be
4 PQ Magazine May 2024
Time to go beyond the buzzwords
While equality, diversity and
inclusion (EDI) initiatives are
increasingly commonplace, there
is growing scepticism among
professionals that these have
now become mere ‘tick-box’
exercises, bringing few tangible
improvements.
The worry is that, as a result,
support for EDI efforts seems to
be on the wane.
Research by the Young
Foundation, which included
ACCA, CIPFA and ICAS among
the 12 professional bodies who
took part, found that navigating
professional life clearly comes
with challenges for the vast
majority of professionals from
minority backgrounds. Almost
three-quarters of those surveyed
said they had experienced
barriers to progression in their
Destructive times await!
The world is falling dangerously
short of the ambition that is needed
to secure a safe future climate,
says Emma Cox, PwC UK’s Global
Climate Leader.
Commenting on the WMO ‘State
of the Global Climate in 2023’
report, she added that the world’s
collective failure to get to grips
with climate change leaves us on
UK and Australia sign audit agreement
The UK’s Financial Reporting
Council (FRC) and the Australian
Securities and Investment
Commission (ASIC) have announced
a Memorandum of Understanding
on Reciprocal Arrangements
(MOURA) making it easier for aud-
itors to work between both coun-
tries.
The agreement allows auditors
ready to deal with these challenges
– and should remember IT is
not flawless and can never be a
substitute for human assessment
and judgement.
Check out his talk at:
https://youtu.be/jkCWvJt0l6A.
Are you ready for
Accountex?
Accountex London is returning this
Spring, on 15-16 May 2024.
London’s Excel is expected to
welcome over 10,000 accounting
and finance professionals through
careers, and felt they had
experienced discriminatory or
exclusionary behaviour in the
workplace.
In the report ‘Beyond the
the cusp of an unpredictable and
economically destructive time.
Cox said: “We must now bend
who have obtained professional
audit qualifications as a statutory
auditor in either the UK or Australia
to more easily apply for recognition
of their qualification and audit rights
in the other nation.
FRC said this latest move will
improve the quality of the UK
audit market by increasing the
number of skilled statutory aud-
its doors. The education
programme offers up to 16 hours
of free CPD, and will be held
across 13 theatres and 250-plus
sessions.
Among the speakers are former
Chancellor of the Edxchequer Lord
Hammond, who will be looking at
what the future looks like for the
UK economy and public finances.
On his list is the part the tax
system can play in delivering the
solutions.
Mhari Aitken, ethics fellow at
the Alan Turing Institute, will be
buzzwords’, author Alice Bell said
the findings contradict claims
that professional experiences
are rooted in a meritocracy.
Researchers found access
and entry routes into many
professions remain challenging
for people from minority
backgrounds.
The implications of this
uncomfortable reality must be
taken seriously, said Bell, as more
than half (53%) of professionals
surveyed say they have considered
leaving their employer or profession
because of issues related to
EDI. Most commonly, this is
because they feel overlooked or
undervalued, with further concerns
around progression, management,
workload, pay and culture. They
also feel excluded from informal
networks.
the curve on emissions growth and
urgently seize the opportunity to
realign our global economy and net
zero pathway with a 1.5°C future
climate.”
PwC’s latest Net Zero Economy
Index shows that a year-on-year
decarbonisation rate of 17.2%
is now required to limit global
warming to 1.5°C above pre-
industrial levels – seven times
greater than what was achieved
over the past year (2.5%).
itors able to practise in the UK
over time and make it easier for
UK audit firms to export their ser-
vices to Australia.
Similar audit arrangements have
recently been signed with New
Zealand and Switzerland, and the
FRC is continuing to explore other
agreements subject to rigorous
qualification standards being met.
addressing the real risks of AI in
her session.
PQ magazine is a partner of
Accountex.
Great leap forward
ICAS believes its new syllabus
and new way of learning represent
the biggest shake-up in how it
trains its students in its 170-year
history.
ICAS CEO Bruce Cartwright
explained that ICAS has constantly
reinvented itself to remain
relevant. See page 18 for more.

The finalist are…
Lio London, next to Leicester
Square in the heart of the West
End, is rolling out the red carpet
for the 21st PQ magazine awards
on 22 April.
But who are our finalists, we
hear you cry. Well, they can all be
found on page 16 of this issue.
As always the shortlist has
some familiar and not-so-familiar
faces on it. The town of Stockport
will be well represented this
year. Bee Motion (finalist in Best
Use of Social Media) and Tim
Mickleburgh (up for Graduate of
AAT scholarship still on offer
There is still time to grab an AAT
scholarship, to help you get to the
next level of your journey.
PQ magazine and e-Careers have
so far given away five sponsorships
to AAT students. There is now one
scholarship left to claim.
To be in with a chance to win
this last one you need to tell us
why you should be awarded the
free scholarship. Send your entry
PQ Magazine May 2024
the Year) both hail from there.
In a similar vein, Nottingham
College and the Nottingham
Chartered Accountant Students’
Society have also made the cut.
The awards will also have a real
international flavour too, as one
of the finalists for Lecturer of the
Year, Ahmed Shafi, will be flying in
from Pakistan.
It’s great too to see Bethany
Duffy (pictured) on the NQ of the
Year shortlist. She won PQ of the
Year, but was unable to attend
because she was in Australia. She
promises she will be travelling
down from Carlisle this year.
A special night is planned for all
the winners and finalists.
to scholarships@e-careers.com,
along with your full name and the
level you want to study. You could
be studying a whole level with
nothing to pay!
Rebecca Guy, Jack Hancock,
Khatra Ali and Hannah Walklett
have already received their
scholarship offers. And we have
now notified our fifth recipient of
their good news.
news PQ
Continued from page 1
(33%) and access to training and
development programmes (30%).
Commenting on the findings, Ola
Opoosun, Head of Support Services
at caba, said: “The study findings
show that there are still significant
challenges for women working in the
accountancy profession and that the
industry still has some way to go if
it’s to become a truly inclusive space
for women. Many female chartered
accountants are struggling with a
lack of confidence in their role and
this, in addition to other factors
such as gender bias and a lack of
representation at a senior level, is
stopping them from reaching their
full potential.
“We urge employers to reflect
on the strategies and resources
highlighted by many of the women
who participated in our study and
ensure that they’re doing everything
they can to support and empower
their female employees.”
As part of its ongoing commitment
to the welfare of the ICAEW
community, caba has launched
its new Women in Accounting Hub,
a dedicated online space where
female ICAEW members can find
support, development courses and
other helpful resources.
5
PQ the
ROBERT
BRUCE
Profession
must
embrace all
sorts
Many think accountants are the
same the world over. But in fact
they are not, far from it. Take the US
accounting profession. Accountants
in the US are very different from
those in the UK, and it is down to
the culture that shapes them.
In the UK people come into
accounting from a range of
disciplines. Imagine what it would
be like if the only people who could
become accountants were people
with accounting degrees. It would, I
suggest, tend to be a much duller
world, and it wouldn’t necessarily
attract the brightest and the best.
They are not going to be people who
always have brains that are bulging
with ideas and the excitement of
youth. But that is what happens in
the US. You want to be an
accountant? You have to have done
a degree in accounting.
Raymond Chandler, writer and
creator of the private eye Philip
Marlowe some 70 or so years ago,
started life as a bookkeeper. If such
people cropped up in his books they
were orderly folk amidst the
gangster mayhem, wearing a row of
different coloured pens in their
breast pocket. Culture makes all the
difference. And it is in the UK that
accountants spread out all across
the business disciplines. Small
wonder that in a free-form world the
UK profession is burgeoning and in
the US it is dwindling.
Robert Bruce is an
award-winning writer on
accountancy for The Times
In brief
Time to swap planes
for trains
BDO has told staff that they must
swap planes for trains for short-
haul business trips so they can
help the firm meet its net zero
targets.
It is also telling workers to fly
economy for journeys under seven
hours and is also encouraging
them to opt for premium economy
class over business class on all
longer flights.
BDO also wants everyone to
travel less, and try to have fewer
6 PQ Magazine May 2024
STEM definition needs updating
AICPA and CIMA says MPs are
right to call for accounting to be
considered a STEM (science,
technology, engineering, maths)
subject in the UK.
A report by the All-Party
Parliamentary Group (APPG) on
Accounting for Growth, which CIMA
provides the secretariat for, found
that including accounting in STEM
would give the grouping a more
commercial focus, and guide young
people towards developing high-
end skills relevant to the modern
workplace.
The report stresses that the
understanding of what STEM is
supposed to achieve would benefit
from clarification, and the grouping
would benefit from a stronger focus
on its commercial application. If
accounting were considered a STEM
subject, it would raise the status of
the profession and recognise the
It should be the same
Why, asked top tutor
Chris Cain (pictured), are
ACCA students in exam
halls treated differently to
those sitting their exam
at home?
He said students sitting
their exams in an official
exam hall get pen and
Time to tax capital gains fairly
Capital gains should be taxed at
the same rate as income, says
accountant and academic Richard
Murphy in his Taxing Wealth Report.
He said the arguments are
straight-forward – capital gains
are profits that people make from
selling land and buildings, or pieces
of art, or stock and shares, or
anything else of that sort, that by
staff travelling together on trips.
The firm is aiming to become a
fully net zero business by 2050,
and has an aim of reducing its
emissions from business travel by
49% by 20230.
Outstanding
balances
ACCA has reminded students that
now is the time to pay any
outstanding balance on their
account.
ACCA said it is not too late for
you to continue your journey – you
vital contribution it makes to the
functioning of modern organisations.
Andrew Harding, FCMA, CGMA,
Chief Executive – Management
Accounting at AICPA & CIMA, said:
“We welcome this report, and I
hope it stimulates further debate on
designating accounting as a STEM
subject. In recent years, accounting
has developed many high-level
technical aspects, including the
paper to write and plan
their answers. However,
those sitting online get
nothing and are subject
to very strict rules about
everything – they can
barely move during the
exam.
He said it was time
and large, wealthy people own.
Murphy stressed: “I can’t see any
reason why they should pay a lower
rate of tax on the money that they
make from this activity than you
and I do on working for a living.”
He added: “It is also very costly.
We could raise at least £12 billion
of extra tax revenue a year if the
rates were equalised.”
just need to remember to pay your
annual subscription. If any student
is having financial difficulties or
need further help, they should
contact ACCA direct.
Siblings made up
movies for £1m tax
fraud
Brothers who tried to steal £1
million in a ‘staggering and
audaciously dishonest’ film tax
fraud have been jailed for a total of
14 years.
Craig Rees, 50, and his 52-year-
use of data analytics and advanced
forecasting tools. It is right that this
technical component is recognised
through the STEM designation.
“Young people choosing
their career paths should fully
understand that if they train as
accountants, they will be using
cutting-edge technology to influence
organisational decision-making at
the highest level.”
for a level playing field and for the
ACCA to relax the rules on those
sitting online at home. Let them
have paper, he said.
Cain, an approved trainer at
PwC Academy, and PQ magazine
are planning to work together to
provide ACCA SBL students with
a free, pre-seen mock, which can
be marked for a small fee (£25).
There will be more on this in the
next issue.
Richard
Murphy
You can read the Taxing Wealth
Report 2024 at
https://taxingwealth.uk/
Watch his video at
https://tinyurl.com/mr2b2atc.
old brother Carl, submitted
fraudulent Film Tax Relief (FTR)
and VAT claims to HMRC. The pair
submitted inflated or made-up
claims to HMRC for three separate
films: Whispers, The Eight, and
Violence.
HMRC proved the pair’s claims
were fraudulently inflated for the
first film, which was moved to the
United States. The second film was
entirely made up, and the third
movie was produced in the US
purely to submit further fraudulent
claims.
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PQ news
the
PREM
SIKKA
New Bill
targets the
old, sick
and poor
The Data Protection and Digital
Information Bill going through
parliament will change the relationship
between state and citizen.
The Bill empowers the state to snoop
24/7 on the bank accounts of recipients
of welfare benefits, including the state
pension. The government claims that
surveillance of the old, sick and poor
will check benefit fraud, which in 2023
was estimated to be £6.4bn. No
evidence of fraud by pensioners has
been provided.
Currently, the government can
request bank information on a case-by-
case basis on suspicion of fraud only.
Under the Bill there is no such bar.
By snooping on bank accounts the
government hopes to identify
individuals who have more savings or
income than permitted for means-
tested benefits, and deny them
payments. The government claims that
mass surveillance would reduce fraud
by £600 million over the next five years.
For 2023-24, the government’s total
expenditure is £1,200bn.
So, if you give a gift to a friend that
pushes them over the savings or income
limit, they may lose their benefits. If
housing benefit is paid directly into a
landlord’s bank account, then s/he also
becomes subject to surveillance.
Despite the rhetoric of fraud
prevention, no powers are being taken
to snoop on the bank accounts of tax
dodgers, money launderers or anyone
overcharging the NHS.
Under the Bill, the right to financial
privacy will only be available to the rich.
Prem Sikka is Emeritus
Professor of Accounting at
the University of Essex
Tax briefs
The childcare
tax trap
Working couples with children face
an “absolutely insane” financial
penalty once their income goes
above £100,000, says Stuart
Adam, a senior economist at the
Institute of Fiscal Studies.
Adam has criticised Chancellor
Jeremy Hunt’s move to withdraw
all free childcare entitlements
and tax-free subsidies for working
parents after their income crosses
£100,000. He says this has
created a childcare tax cliff-edge.
8 PQ Magazine May 2024
Reform package for apprenticeships
The UK government has said it will
fully fund apprenticeships in small
businesses from 1 April by paying
the full cost of training for anyone
up to the age of 21 – reducing
costs and burdens for businesses
and delivering more opportunities
for young people to kick-start their
careers.
This will remove the need for
small employers to meet some
of the cost of training and saves
time and costs for providers like
further education colleges who
currently need to source funding
separately from the government
AAT Training Provider Awards
The AAT Training Provider awards
came back with a vengeance (in a
good way), and there were lots of
great stories on the night.
Peak Accountancy Training’s
Stephanie Goodsell won AAT
Apprentice of the Year, and
she brought both her mum and
grandma onto the stage to collect
the award with her!
Training Link’s Katie Robinson
walked off with the Student of the
ACCA signs exam deal with Uzbekistani body
ACCA and the Association of
Certified Finance Professionals of
Uzbekistan (ACFP) has agreed a
joint examination scheme (JES)
designed to enhance accountancy
education and knowledge in the
country.
Adam stressed that individuals
also start to lose their personal
tax-free allowance (£12,570) once
their income crosses £100,000,
pushing up their marginal tax rate
to 60%.
The IFS has calculated that a
parent who earns £134,000 with
two children could be worse off
than someone earning £99,000.
HMRC quick U-turn
on closing
telephone lines
HMRC halted its proposed
and businesses.
From the start of April, the
government also increased the
amount of funding that employers
who are paying the apprenticeship
Year award. She is also nominated
for the PQ magazine awards later
this month.
The coveted Tutor of the Year
trophy went to e-Careers Karen
Groves (pictured) and the Distance
Learning Training Provider of the
Year was Premier Training.
Large Training Provider of the
Year was awarded to New City
College, and Apprenticeship
Training Provider of the Year for
The JES is focused on ACCA’s
Advanced Diploma in Finance
and Business in Russian (ADFBR).
The ADFBR comprises seven
exams and the Professional
Ethics Module. As part of the
JES individuals will have the
changes to its helpline services
barely 24-hours after making the
announcement on big, permanent
cuts!
It said this is in direct response
to immediate feedback, and
now promises to engage with
stakeholders about how to ensure
all taxpayers’ needs – including
small businesses – are met as
HMRC shifts more people to online
self-service in the longer term.
This means the phone lines for
Self Assessement, VAT and PAYE
will remain open between April and
levy can pass onto other
businesses. Large employers who
pay the apprenticeship levy will be
able to transfer up to 50% of their
funds to support other businesses,
including smaller firms, to take on
apprentices.
Prime Minister Rishi Sunak
(pictured) said: “Growing up in my
mum’s pharmacy, I know first-hand
how important small businesses
are. Not just for the economy,
but as a driver for innovation and
aspiration, and as the key to building
a society where hard work is always
recognised and rewarded.”
2024 was Riverside Training.
Check out all the winners on
page 22..
opportunity to take examinations
in taxation and law in compliance
with Uzbekistan’s legislation.
In addition, after completing the
ADFBR, students will be eligible
to transfer to ACCA’s Strategic
Professional level.
Mumin Ashurov, Director of
ACFP, said: “We look forward
to seeing students start to
study the joint qualification. We
are confident it will increase
accountancy knowledge and
expertise and will contribute to
economic growth in the country.”
The JES is expected to run for
an initial five-year period.
September, for this year anyway.
HMRC’s CEO Jim Harra
admitted that the pace of change
in services needs to match the
public appetite for managing their
tax affairs online.
NI cuts are here
The National Insurance rates
fell from 10% to 8% for 27 million
workers across the UK, the second
cut in a year.
It means anyone earnings a
salary of £35,000 will have an
extra £450 in their pockets.
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PQ news
the

ANNA KATE
PHELAN
Apple
facing a
sticky time
in the US
There’s a big story developing in the US
that may have a worldwide impact on
the handheld device space.
The US Department of Justice (DOJ)
is suing Apple for monopolising the
smartphone market. They argue that
Apple’s “exclusionary conduct” makes
it difficult for people to switch phones,
undermines industry innovation and
imposes unnecessary costs on
businesses, software developers and
consumers alike.
Apple have been accused of
blocking the growth of ‘super apps’,
with functionality that would allow
users to easily move between different
smartphone platforms, diminishing the
quality of cross-platform messaging
apps so that consumers continue to
buy iPhones. It is also accused of
supporting limited functionality to drive
purchases of both Apple Watch and
iPhone, and limiting third-party digital
wallets by preventing apps from
developing their own cross-platform
tap-to-pay.
The practice of enhancing a
product’s ‘stickiness’ (the degree to
which users have to return to the
product time and time again) is well
established in the tech industry. It
appears that Apple may have hurtled
towards increasing this metric without
proper consideration of the potential
legal ramifications.
It’ll be interesting to see how this
case pans out. We have already seen a
regulatory win for consumers, with the
EU mandating that from the end of
2024 all portable electronics should
use a USB-C charger, which will lessen
the product ‘stickiness’ induced by
Apple’s lightning charger cable. Watch
this space!
Anna Kate Phelan is Head of
Product at Eintech
FRC revises accounting standards
The FRC has issued what it says are
“comprehensive improvements to
financial reporting standards” for
the UK and Ireland, which are used
by 3.4 million businesses.
The changes follow extensive
stakeholder engagement and
consultation on the proposals with
the FRC required to undertake a
review of FRS 102 every five years.
The most significant changes
apply to leases and revenue
recognition to align with recent
changes to international financial
reporting standards. The changes
Record year for Grant Thornton
It was another year of record
performance for Grant Thornton,
with net revenue up over 7% to
£654m and operating profits up
Bahrain recognises AAT qualifications
Bahrain has recognised all seven
of AAT’s qualifications, with the
country’s education and training
quality authority (BQA) aligning
them with its domestic training
framework.
Claire Bennison (pictured), AAT’s
Executive Director of Customers,
Partnerships, and Innovation,
said Bahrainis completing an AAT
qualification would rightly feel pride
in their government’s affirmation
of their new skills and knowledge.
will provide better information
to users of financial statements,
including current and potential
investors and lenders. In response
to stakeholder feedback, the FRC
said it has made improvements to
the proposals for lease accounting
and revised the recognition
18% to £146m, according to the
2023 annual report.
For the 12 months to 31
December 2023, the firm took on
More than 6,000 Bahrainis have
studied the AAT qualifications since
it began offering them to learners in
the Middle East in the 1980s.
She said: “This recognition by
exemption for leases of low-value
assets to clarify that the focus is
to ensure that the most significant
leases are recognised on the
balance sheet.
The FRC has also made a
number of improvements and
clarifications that are designed
to make it easier for preparers
to apply and understand the
standards.
The FRC will also be hosting
a webinar to discuss the new
standards at 11am on 15 May
2024.
5% more employees, including
over 1,200 new joiners and 25 new
partners. Partner pay was up 11%
to £644,000.
Grant Thornton’s CEO,
Malcolm Gomersall, said: “2023
was another standout year for
our firm and that’s down to the
contributions of the more than
5,500 people who make up Grant
Thornton. Whilst uncertainty,
inflationary pressures and overall
trading conditions continued to
impact our markets, our firm’s
resilience meant we are able to
continue investing in our people
and operations to remain a top
choice for clients.”
Bahrain’s qualifications watchdog
will be welcome news for the
thousands of Bahrainis who already
have AAT qualifications, but also
for those who are aspiring to join
our dynamic, global profession.
Learners now have the clear
assurance that with AAT they will
gain a qualification of the highest
standard.”
AAT is now hoping more
countries across the Middle East
will follow Bahrain’s move.

Female senior
partner anyone?
Who wants to be PwC’s new
UK boss? There are three
candidates for the job: Marco
Amitrano, head of clients &
markets; Laura Hinton, head of tax; and
Hemione Hudson, head of audit.
This is the first time women have appeared
on the ballot, and there has never been a
female boss of the PwC’s UK arm in its 175-year
history.
The vote among partners takes place in April,
and the winner will be unveiled at the end of the
month.
Outgoing boss Kevin Ellis has spent eight
years at the helm.
Deloitte expand office space
in London
Deloitte has taken on more office space in
central London less than two years after making
drastic cutbacks, according to the Financial
Times.
The Big 4 firm added 70,000sq ft of space in
Shoe Lane, near its New Street Square HQ, and
this means more staff will be returning to the
office.
Deloitte told the FT: “In February we opened
three floors in 66 Shoe Lane, with a fourth
to follow later in the year – they are a mix of
workspace and client space and increase
our overall London campus space by 18%
to support our growing business and ways of
working.”
KPMG’s Jon Holt elected for
second term
KPMG in the UK has confirmed that, following a
partnership vote, Jon Holt has been re-elected
with overwhelming support to serve a second
term as the firm’s Chief Executive and Senior
Partner.
Holt was appointed as CEO in April 2021,
following KPMG in the UK’s move to a new
governance model, which created separate
roles for its Chair and Chief Executive.
Holt said: “2024 will see us make some big
changes – combining our deals and consulting
businesses into one practice called advisory –
and exploring a potential merger with KPMG
Switzerland to give us more collective power to
invest and build new services for our clients.”

10 PQ Magazine May 2024

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PQ tech
the news
EDDIE
HERBERT
Crucial
partners
in setting
SBTi
targets
Accountants are emerging as vital partners
for companies seeking to set ambitious
emissions reduction targets through the
Science Based Targets initiative (SBTi).
The SBTi enables organisations to align
their climate strategies with the latest
scientific consensus on limiting global
warming to 1.5°C above pre-industrial
levels, as outlined in the Paris Agreement.
By setting ambitious yet achievable
emissions targets, companies can
become climate leaders. This proactive
approach enhances brand reputation in an
increasingly eco-conscious marketplace
and future-proofs businesses against
potential regulatory risks.
Accountants’ expertise in stakeholder
engagement can be invaluable in the
SBTi journey. Their ability to understand
current practices, future ambitions and
feasible emissions reduction pathways
helps ensure targets align with operational
constraints and financial objectives.
Climate specialists such as Net Zero Now
can turn these insights into actionable
plans.
Net Zero Now’s end-to-end services
equip companies to effectively set and
meet ambitious emissions targets, from
accurately measuring baseline emissions
to conducting stakeholder consultations,
reviewing reduction models and,
ultimately, submitting targets for SBTi
validation.
Ariel Edesess, ESG Senior Analyst at Hill
Dickinson, said: “Working with the team at
Net Zero Now to set acceptable science-
based targets has been a powerful driver
for us to make real, impactful changes.”
Using carbon accounting platforms,
accountants can streamline the SBTi
journey for their clients, fostering
impactful sustainability efforts while
contributing to the global fight against
climate change.
Edward Herbert, Sales &
Business Development
Manager, Net Zero Now
Tech briefs
Google to charge
Google is believed to be
looking at charging users for
‘premium’ internet search results
powered by artificial intelligence
(AI).
The tech giant’s main search
engine would remain free to use,
with additional content available to
those who pay a fee, sources told
the Financial Times.
Adverts would still appear
alongside search results, even for
subscribers, says the FT. However,
charging would be the first time
12
US justice department sues Apple
A civil antitrust lawsuit has
been filed against Apple over its
“monopolisation or attempted
monopolisation of smartphone
markets in violation of section 2 of
the Sherman Act”.
The US Justice Department
and 16 other state and district
attorneys are alleging Apple
illegal maintains this monopoly
over smartphones by selectively
imposing contractual restrictions
on developers. It is also claimed
that Apple withholds critical
access points into the market.
That means Apple undermines
apps, products and services that
would otherwise make users less
reliant on the iPhone, pushing
Intuit Quickbooks launches Bureau Payroll
Intuit Quickbooks has
launched a standalone
Bureau Payroll product for
accountants, which is says
will accelerate payroll for UK
businesses.
Nick Williams, UK
Product Director at
Intuit QuickBooks, said:
“QuickBooks Bureau
Payroll was developed to
alleviate the pain points that
accountants face on a daily
basis. Our research shows that
payroll consumes up to one hour
per client per pay cycle, which can
Wolters Kluwer launches AML module
Wolters Kluwer has released an
anti-money laundering module
(AML) within its CCH iFirm
platform.
A cloud-based solution, CCH
iFirm AML provides accounting
practices with the flexibility to
manage AML compliance from
anywhere at any time. In addition,
it will offer biometric KYC – using
Google has made people pay for
enhancements to its core search
product.
Of course, Google already
charges for some features such as
storage space and for access to
Gemini AI assistant in Gmail and
Docs.
KPMG and Databrick
join forces
KPMG UK has formed a strategic
alliance with Databricks, a leader in
data and artificial intelligence. The
alliance will help the firm’s clients
up costs for customers and
developers.
The lawsuit emphasises it
wants to restore competition to
the markets “on behalf on the
American people”.
Attorney General Merrick B.
Garland said: “Consumers should
not have to pay higher prices
impact other critical tasks.
“The automation introduced
by Bureau Payroll really makes
facial recognition to identify and
authenticate individuals. This
will remove the need to scan
and email documents and check
photos, helping to ensure secure
and efficient identity verification,
alongside a standard AML check.
Natasha Chryssafi, director of
product management at Wolters
Kluwer explained: “We realise that
get the most out of their data and
AI and empower them to innovate
at a faster pace.
Generative AI could add an
additional £31bn to the UK
economy per year, according to
KPMG estimates.
It said that KPMG’s technical
expertise, in combination with
the Databricks Data Intelligence
Lakehouse Platform, will help
clients innovate using an open,
scalable platform to meet all their
data-driven requirements.
KPMG’s Audit practice is also
because companies violate the
antitrust laws.”
He continued: “We allege
that Apple maintains monopoly
power in the smartphone market,
not simply staying ahead of the
competition on its merits, but
by violating federal antitrust
law. If left unchallenged, Apple
will only continue to strengthen
its smartphone monopoly. The
Justice Department will vigorously
enforce antitrust laws that protect
consumers from higher process
and fewer costs.”
Meanwhile, Apple has rejected
the allegations in the lawsuit and
says it threatens the company’s
core operations.
our solution unique.
For instance, the
automation of director-
only pay-runs has
been met with a lot of
enthusiasm from our
accountant customers,
who see the opportunity
to reduce time spent
on payroll accordingly.
By boosting efficiency
without sacrificing
accuracy, accountants
will have more time to focus on
work that directly benefits their
clients.”
compliance with AML and know-
your-customer (KYC) requirements
is vital for accounting firms,
especially in light of continuing
shifting regulations. CCH iFirm
AML helps to transform the way
companies manage their AML
duties, helping them mitigate the
risks associated with poor AML
and KYC practices.”
embedding the Databricks Data
Intelligence Platform with KPMG
Clara, KPMG’s global audit
technology platform.
Drones – a power for
good!
One of the announcements in the
Spring Budget that might have
gone under the radar was the
Government’s investment in drones
for the emergency services.
However, PwC stressed an equal
focus should be given to integrating
drone data with existing systems.
PQ Magazine May 2024
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 email graham@pqmagazine.com
Lord Sikka is right
At first I thought that Lord Sikka’s
call for an independent inquiry
into the role of the accountants
and auditors in the Post Office
scandal was another way for him
to ‘stick it to the establishment’.
But after reading your front-
page article (PQ, April ’24) and
listening to his recently uploaded
video on YouTube, I have to say
I have come over to his way of
thinking.
We should know the name of
the person at the Post Office who
sacked the forensic accountants
at Second Sight in 2013. I also
see new evidence shows (in
leaked recording) that officials
knew of instruction for Fijitsu to
remotely change sub-postmaster
2XUVWDUOHWWHUZULWHUZLQVDIDQWDVWLFo,ORYH34pPXJ
Lots of people have
been watching Lord
Sikka on YouTube talking
about the Post Office
Scandal. Here are some
of your comments…
“A coherent and succinct
overview. As Lord Sikka
highlights, on the face of it this
seem like an egregious failure
by the internal and external
auditors. Time after time with
these major scandals we see that
the external auditors prioritised
their cosy financial relationship
with the company over their
broader legal obligations to the
shareholders and the public
interest. Arthur Andersen
at Enron is the most salient
example, but EY must surely
bear some responsibility here.
They have somehow managed
to keep a low profile during
these proceedings. As the good
Lord says, time for an enquiry
to examine their role! They
should surely be contributing to
the compensation of the SPMs,
alongside Fujitsu and the POL?”
“Don’t go to market with a
prototype with the expectation
that bugs can be addressed on
a live system. Classic failure of
PQ Magazine PO Box 75983, London E11 9GS | Phone: 07765 386489 | Email: graham@pqmagazine.com
Website: www.pqmagazine.com | Editor/publisher: Graham Hambly graham@pqmagazine.com | Associate editor: Adam Riches | Art editor: Tim Parker
Contributors: Robert Bruce, Prem Sikka, Lisa Nelson, Anna Kate Phelan, Tony Kelly, Phil Gammon, Edward Netherton,
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accounts 10 year ago. All this was
suppressed.
And the tapes reveal CEO
Paula Vennells was also told
about the serious issues in
July 2013. It does all seems to
project management no doubt
caused by senior management
demanding early results to get
their bonuses. Bonuses drive
short-term thinking and really
ought not to be a feature of
remuneration packages on
taxpayer funded projects, ever.”
“What evidence besides a
computer system did the PO
have that the shortages were in
fact real (none)? The computer
should have been the first
thread indicating as the PO saw
it as theft. The next step should
have been to discover where
Francesca Cullaney |
Published by PQ Publishing Ltd © PQ Publishing 2024
be unravelling for Post Office
executives.
Finally, can I say that
chartered accountant Rebecca
Benneyworth (PQ, April ’24, page
36) just goes up and up in my
estimation. It is interesting that
her mum was a subpostmistress
because she really understands
how the scandal would have
affected her. Her free website
to help with the tax implications
of compensation payments is a
godsend for sub-postmasters and
she should be made a dame!
Name and email address supplied
The Editor says: You can check
out Lord Sikka’s arguments for
an inquiry at https://youtu.be/
jkCWvJt0l6A. As our reader says,
it is well worth a listen.
the money went. They checked
bank accounts, etc., but did not
discover any missing money.
In fact they discovered the
opposite, that SPMs were taking
out loans, borrowing money from
friends & family to make up the
shortfalls. Why would anyone
who was stealing money arrange
for loans (ending in bankruptcy,
suicide, etc.) to pay back that
same amount of money, doesn't
sound logical.”
Watch the video at https://
www.youtube.com/
watch?v=jkCWvJt0l6A
@hmtreasury sent out a post on
X (formerly Twitter) explaining:
“Small businesses are the
backbone of the UK economy.
That’s why we’re cutting tax for
small businesses, taking 28,000
out of paying VAT altogether.
Another long-term decision
to grow our economy.” Let’s
just say it didn’t quite get the
reaction it was expecting! Oh,
and it put this out on 1 April.
David Pearce said: “Hmm.
It’s not the business that pays
it, but their customers. The
business just passes it on.” Dean
Maisey agreed, saying: “Small
businesses don’t pay VAT – their
customers do. If the business
de-registers they can no longer
reclaim the VAT they pay to
suppliers for services/materials.
So unless de-registering
generates more business to
cover the lost reclaimable VAT,
the business will be worse off.”
Dan Richards said: “Surely
a bad taste April Fools’ joke,
as small businesses currently
have the highest tax burden
in years…” And Graham (not
the editor) tweeted: “£5,000
is dwarfed by the increase in
energy bills, interest rates, cost
of living and commencement of
bounce back loan repayments.”
Hud Pug wondered: “Is this
another party election broadcast
on behalf of the Tory Party?”
Interestingly (well, we were
interested), the Electoral
Commission answered this
tweet. It said: “Communication
from government departments
providing information on a policy
typically does not fall under
electoral law. Electoral law
covers such things as spending
and donations by political
parties and candidates, and
the transparency of election
material.”
All sorted then! Well, at least
the tweet got 23.1K views. There
are 456,200 people following
@hmtreasury.
PQ PQ Awards 2024

OUR 2024 FINALISTS

The red carpet is being rolled out for all the finalists for the PQ magazine ACCOUNTANCY
awards night. Who made it onto our shortlist this year? Well, here they are: PERSONALITY
THE YEAR
OF
Sarah Ghosh
Grace Hardy
Gareth John
BEST USE OF
SOCIAL MEDIA
Bee Motion
Career Goals by Kaplan
Will Boardman (YouTube EDITOR SPECIAL
@willboardman) AWARDS
(announced on the night)

PODCAST OF THE ACCOUNTANCY

YEAR APPRENTICE OF
Exam World Meets Business World, THE YEAR
Paul Merison, LSBF Diana Hume, Department of
STUDENT BODY OF Kaplan’s Learn Better Podcast Business and Trade
THE YEAR Marty Windle SBL Guru Podcast Armanda Nazuiri, London Borough
Chartered Accountants’ Student The First Intuition Podcast of Newham Council
Society of London Tomos Rees, Clay Shaw Butler
Northern Chartered Accountant
Students’ Society ACCOUNTANCY
Nottingham Chartered Accountants LECTURER OF THE
Student Society YEAR
PUBLIC SECTOR TRAINING DISTANCE
Dr Samar Gad, Kingston University, MANAGER/ LEARNING
London MENTOR OF THE STUDENT OF THE
Dr Faisal Sheikh, Nottingham Trent YEAR YEAR
University Marina Frost
Zeeshan Ahmed, Future Connect
Lim Keong Teoh, University of Katie Robinson
ACCOUNTANCY Training & Recruitment
Gayane Voskanyan
BODY OF THE Winchester Dr Ishani Chandrasekara, Queen
YEAR PRIVATE SECTOR Mary University of London
(announced on the night) Karen Groves, e-Careers Libby Walklett, the Ethical
Ahmed Shafi, Mirchawala Hub of Bookkeeper
Accountancy
Maria Yearsley, Kaplan
ACCOUNTANCY
ACCOUNTANCY GRADUATE OF THE
COLLEGE OF THE YEAR
Corina Birca, London South Bank
YEAR STUDY RESOURCE ACCOUNTANCY University
PUBLIC SECTOR
OF THE YEAR TEAM OF THE Tim Mickleburgh, University of
Manchester Metropolitan University
Accountext+
YEAR Manchester
Newcastle University Business Newcastle University Business
Corporate Reporting Revision Alhaam Noer, University of
School School
Preparation Session, First Intuition Leicester
University of Winchester St Mary’s Accounting Services
Premier Training’s ‘Every1Welcome’
PRIVATE SECTOR The Financial Systems Team at
series
Accountancy Learning Limited Christie NHS Foundation Trust
The Little Book of Secrets from
Future Connect Training & AICPA & CIMA
Recruitment NQ OF THE YEAR
Kaplan Bethany Duffy
Lyndsay Falconer
Arthur Kaliisa
INNOVATION IN Aishani Sinha
ACCOUNTANCY GRADUATE/
Creative Accounting, a collaboration APPRENTICESHIP
between academics from QMUL, TRAINING
Coventry University and Monash PROGRAMME OF
ONLINE COLLEGE University, Australia THE YEAR
OF THE YEAR First Intuition Accountancy Buzzacott LLP
First Intuition Academy First Intuition Apprenticeship PQ OF THE YEAR
FME Learn Online Icarus accounting simulation App, Training Programme Luke Carter
Training Link UCL & Lynsie Chew KPMG Grazia Maria Pia Salcuni
Nottingham College’s AAT delivery Morgan McIntosh
Declan Stoppard

16 PQ Magazine May 2024

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PQ new ICAS syllabus

Redefining accountancy training

ICAS explains what the new syllabus will look like and how it is changing the way students learn
he Institute of Chartered Accountants of

T Scotland (ICAS) has unveiled the biggest

shake up in how it trains accountancy
students in its 170-year history.
ICAS has launched both a new syllabus and
a new way of learning for students. The new
syllabus will make sure that the qualification
remains relevant in an evolving global business
landscape and ICAS students will learn through a
UK first training model.
The new syllabus includes future-focused
themes of sustainability, technology, and
business ethics, alongside the core technical
accountancy skills that the CA qualification is
globally renowned for.

Great leap forward

Gail Boag, Executive Director of Learning at
ICAS, said: “The introduction of the new syllabus
and learning delivery model is the biggest leap
forward yet in the way we train CAs. It allows
us to keep pace with the influence of global
socioeconomics and technology on business
today. Firms were calling for greater flexibility in
how we train students, and now thanks to our
new model this is possible.
“While we have always updated our syllabus
to reflect global developments to make sure
that each generation of CAs remains relevant,
this change is more significant, reflecting
technological and other geopolitical factors that
both enable and disrupt the profession.
“The qualification focuses on so much more
than finance and equips students with the skills
that they need to be business leaders of the
future, incorporating ethics, sustainability, and
use of technology as part of the syllabus.
“The method in which we deliver the CA
training has evolved dramatically, creating
the best possible learning environment which
combines remote digital learning with in-person
classroom and community events. But we also
know that the true barometer of our success is
the impact that our students will go on to make
throughout their careers with the skills that
we equip them with now. The CA designation
remains a badge of quality and trust, something
that can be seen in the fact that CAs hold senior
positions in 83% of FTSE companies.”
The new syllabus was created in response to
demands from the accountancy profession for
a qualification that meets their challenges and
helps them attract the best talent.
Sustainability and the impacts of technologies
like AI are rapidly driving changes in the business
environment and shaping the next generation’s
career expectations.
The new ICAS syllabus empowers CAs by
providing them with practical skills and knowledge
to collaborate, communicate and provide
leadership on sustainability issues. Helping
boards and management understand the link
between those issues and financial performance.
Reshaping the role
New courses cover topics such as data analytics
and business intelligence, and students learn
directly on the digital platforms, such as Xero
and Power BI that are currently reshaping the
role of the accountant, something that has not
been done before.
Bruce Cartwright CA, CEO at ICAS, said:
“Throughout our 170-year history, ICAS has
constantly reinvented itself to remain relevant
in an ever-changing world. The introduction of
this new syllabus represents one of the biggest
changes we’ve ever made. We believe it goes
beyond the numbers, to foster the ethical
mindset, technical skills, professional knowledge
and practical experience that will establish CAs
as the business leaders of the future.”
Scheduled across four terms each year, there
are now more enrolment options and greater
control over the paths students can follow.
Employers can also choose how quickly their
students’ progress and how often and when
they’re in the office focused on work and clients.
Three years’ time
Unique to ICAS, employers and students can see
their course schedules three years in advance,
and new electives provide opportunities for
specialisation and role-relevant learning. All
this is delivered while still maintaining the high
levels of challenge and integrity for which the CA
qualification has long been known.
The syllabus also features additional
touchpoints that maximise students’
engagement with tutors and peers. These
include in-person workshops, pre-assessment
drop-in sessions and ICAS’ first-ever UK-national
induction event, which will be held at the
Edinburgh International Conference Centre on 9
September.
For the first time in the UK, accountant
trainees and their employers can see what they’ll
study for the entire three-year period at the start
their studies. They will also be able to choose
when they study certain subjects and specialties
meaning that both the student and the employer
can plan when they will study and when they’ll
learn on the job, servicing clients and working in
the business. Training with ICAS will also mean
that students can study online, but also access in
person workshops and tutor time.

BUSINESS
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18 PQ Magazine May 2024


On Your Marks…
ACCA launches podcast series designed to help to PQs
deal with the common issues confronting them as they
look to get qualified
re you putting off booking your first
A exam, or struggling to get back into
studying after a failure?
A new podcast series launched by the ACCA,
called ‘On Your Marks’, explores techniques to
help students tackle any potential challenges
head on, wherever they are at in their journey to
qualification.
Hosted by ACCA’s Krutika Adatia (pictured),
podcast guests include experts ranging from a
life coach to a neuroscientist, to help students
understand what can hold them back when
setting out to achieve their goals – whether
that’s preparing for an exam or training for a
marathon.
From the importance of hanging out with your
mates to the neuroscience of procrastination, the
series explores how to get going when the going
PQ Magazine May 2024
gets tough – including techniques for building
resilience for when life doesn’t go our way.
The episodes
Episode one – Preparing to start: Why can it
be so hard to start something new, even if we
want to? What might help us take the first step?
We sit down with Michelle Elman, a five-board
accredited life coach, author, broadcaster and
public speaker, and all-round expert in helping
people face their demons and rise to personal
challenges. From coping with pre-exam nerves
to dealing with envy when people post their
wins on social media, we look at how we can
clear the path ahead and get working on our
goals.
Episode two – Setting great goals: In this
episode we’re talking goal setting. We sit down
Registered Tuition Provider
ACCA podcasts PQ
with cognitive behavioural therapist Sarah D
Rees to understand why some of us struggle with
setting, and achieving, our goals. From breaking
down big plans to calming your inner critic,
and rewarding yourself along the journey, we
look at strategies to help keep us all on track –
both practically and emotionally, while working
towards our objectives.
Episode three – Building resilience: Pushing
on towards our goals is great, but as we all know
life can have a way of messing with even the
best laid plans. In episode three it’s all about
becoming more resilient. We sit down with Josh
Wintersgill, Great Britain’s Young Entrepreneur of
the Year in 2019 and founder of AbleMove, to dig
into the topic of resilience. From tips on facing
up to failure to an honest look at coping when
we’re feeling low, we talk about strategies to
keep us all going when the going gets tough.
Episode four – Nourishing relationships: When
we’re pushing towards a goal, or just generally
having a tough time, many of us will instinctively
turn to our friends, family, colleagues or even
pets for support. Why? In this episode we’re
talking relationships. We sit down with Dr Anna
Machin, an evolutionary anthropologist who has
spent her career studying the science of close
human relationships. From the neurochemicals
underlying your tightest friendships to tips for the
best social activities for your brain when you’re
facing down deadlines, we dig deep into how our
connection with others helps us get where we
want to be.
Episode five – Beating procrastination:
Procrastinating over tasks, even ones we care
about, is a normal if painful part of life for
most of us. We sit down with Dr Julia Ravey,
a neuroscientist, author and self-confessed
procrastinator. She’s an expert in understanding
what’s happening in our brains when we put off
tasks – from conflicts between the logical and
emotional centres of our brains, to tricks for
creating sustainable revision habits.
Episode six – Exploring ACCA resources:
In this final episode we sit down with Paul
Kirkwood, ACCA’s Regional Head of Education
and Learning for ACCA in the UK. Paul is
joined by new ACCA member Shaun Fenwick,
who works in the accounting team at Brixton
Brewery and recently completed all his exams.
We talk about starting the qualification and the
decisions you need to make, the common fears
and struggles, resources available through your
ACCA journey and how to push yourself to take
that first step.
View now or listen through wherever you get
your podcasts. And don’t forget to subscribe!
• Thanks to ACCA for this article
19
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 AAT Training Provider Conference PQ

How are your writing skills?

It’s time to write your way to your success, says Cath Littler
had the pleasure delivering a workshop to

I tutors and managers at AAT’s face-to-face

training provider conference, something
that I have done so often that none of us can
remember a TP conference when I wasn’t
running a workshop!
While the topics over the years have changed,
the single thread of teaching accountants writing
skills has remained constant and, whether
English is a first or second language, there are
three main points you should remember:
• Confidence and skill are built through
repeated practice.
• You can learn how to structure an email
to a client or an exam answer by learning
the right phrases and including the right
information.
• It is important to understand what you are
being asked.

The yin and yang of practising writing

The really great thing about practising writing
is that it helps you to understand what you are
writing about. This is because if you write about
something you must understand it enough to get
your point across. You probably find writing to a
friend about something that you are passionate
about easy – because you know what you want
to say and have probably said it repeatedly.
However, the first time you write about
something your brain is not ready, so it is hard
to find the right words. The more you write,
the more you understand, and everything gets
easier. This is because you have arranged the
information in your brain ready to be shared.
So if you go into an exam and have to write
about something that you have never written
about before, you will struggle to do it well. If you
have had a lot of practice, you will find it easier
and quicker to answer questions and to get a
good mark.
The right words and phrases
One of my roles is to end-point assess AAT
apprentices who often discuss how difficult they
found answering the phone or writing emails to
clients when they started. Once they understand
what words and phrases to use it becomes
easier. After all, accountants must repeatedly
email clients for information and the information
required is usually similar, so the main section
of the email will also be similar. The first email
to a client will take a long time to put together
and will be checked by a manager, but over time
trainee accountants learn the right phrases to
use and the right information to ask for.
The same principle can be applied to
answering exam questions. When you start
practising it is hard, but over time and with
regular practice you will learn the right words
and phrases to use, and it becomes easier.
At the conference workshop I also encouraged
tutors to use a range of different scenarios for
learners to practice on. That is because it widens
the learning experience; the more you must
apply your knowledge to different situations, the
better you understand it and can apply it at work
and in an exam.
The right information
It is also always important to include a good
amount of detail when communicating with
clients or answering an exam question. For
example, if you are emailing about an overdue
invoice, you will include the invoice number,
date, amount and when payment was due. If
you are writing about changes to profit margins
you should not just say that the margin has
improved – that is not going to help the client or
get marks in an assessment. Instead, you should
say something like ‘Profit margin has increased
from 10.2% to 11.4%, showing that for every £1
of income, the organisation is now earning an
extra £0.012 profit.’ That helps the client, and
the examiner knows that you understand the
principle.
So include details and explanations, even
if it seems too obvious to you. The client and
examiner need to see the information.
Understand what you are being asked
This is where answering client questions can be
different from answering exam questions. Clients
are often not sure what they are asking so some
backwards and forwards is usually required
before understanding is reached.
In exams you only get one shot at answering,
so examiners use command verbs such as
‘state’, ‘explain’, or ‘describe’. You need to
understand the differences between the verbs
and what they are asking. AAT has lots of
e-learning on command verbs – much of which
I have written, so go and have a look so that you
understand what examiners are asking.
• Cath Littler, head of learning and
development at Mindful Education

PQ Magazine May 2024 21

PQ AAT Training Provider Awards

And the award winners are…

The AAT recently unveiled the winners of its Training Provider Awards 2024 – back after being
away for four years. So who walked off with the coveted trophies?
pening the 2024 awards in Nottingham, Small, Medium, and Large Training Provider dealing with VAT returns in foreign currencies

O AAT CEO Sarah Beale, said: “Our

Training Provider Awards recognise the
life-changing excellence evident in the work of
so many of our training partners. And this year’s
calibre of nominations was exceptionally strong.”
AAT first held these awards in 2016, but this
year was the first opportunity providers had to
come together since the onset of the pandemic.
Addressing the room of 150 finalists, Beale
stressed: “I want to congratulate each and
every training provider, student and tutor who
has been shortlisted for these prestigious
awards. Each one of you has shown outstanding
performance in the classroom, online or in the
workplace.”
She went on: “Whilst being a finalist for an
AAT Training Provider Award is an achievement
in itself, the small number who clinched the
top prizes can now rightly claim to be industry
leaders.”
Beale thanked the judges for volunteering
their time to shortlist the dozens of stand-out
nominations, and who made the final call on
the night’s winners – among them was PQ
magazine’s very own Graham Hambly.
In all, 10 AAT awards were up for grabs. Prize
categories for training centres included best
Of The Year, New Provider, Distance Learning
Provider, and Training Provider of AAT’s highly
regarded apprenticeship programme.
Exceptional educators were also
acknowledged on the night. The award for
AAT Tutor of the Year went to Karen Groves
of e-Careers. Meanwhile, learners Stephanie
Goodsell and Katie Robinson received AAT’s top
awards for best apprentice and best student,
respectively.
The night’s first heart-stealing moment
went to AAT Apprentice of the Year Stephanie
Goodsell, who collected her award on stage
supported by her positively beaming mum
and nan, supremely proud of their Steph’s
achievement.
Guests were told that Steph, who studies
with Peak Accountancy Training, excelled in
everything she does. She displayed serious
commitment to both her academic studies and
workplace responsibilities, having achieved
first-time passes on all her AAT assessments
and excellent grades in the process. Steph
also received outstanding feedback from her
placement employer, with the firm’s leadership
noting the winning apprentice excelled in a
variety of workplace challenges, including
and even playing a teaching role in helping
senior managers navigate new accounting
software.
The evening’s host, television personality
Scarlette Douglas, said for many students
taking the apprenticeship route balancing
work and study is not always straightforward.
She explained: “The world of work can be a
challenging environment to adjust to, especially
for those fresh out of school, but some
apprentices excel and thrive. Steph, our AAT
apprentice of the year, is clearly one of them.”
Douglas also announced AAT’s Student of
the Year as Training Link’s Katie Robinson,
the second ‘heart steal’ of the evening. “A
remarkable student in every single aspect,”
Douglas told the audience, “Katie overcame
adversity when her dad became seriously ill early
into her studies, requiring a three-hour round trip
to visit him in hospital. She did this every day, on
top of her study and work commitments. Despite
the challenges, Katie achieved impeccable
academic results in her AAT studies – even
sharing her journey to motivate and inspire
others.”
You can read more about Katie on page 26.

THE 2024
WINNERS
IN FULL
Small Training Provider of the Year:
University of Gibraltar
Medium Training Provider of the Year: Future
Connect Training and Recruitment Ltd
Large Training Provider of the Year: New City
College
Best New Training Provider of the Year: 3 Stephanie Goodsell (Peak Accountancy Training) – AAT apprentice of the year
Counties Accounts Training Service Ltd
International Training Provider of the Year:
MAS Education: Management & Accountancy
School (Myanmar)
Apprenticeship Training Provider of the
Year: Riverside Training
Distance Learning Training Provider of the
Year: Premier Training
AAT Tutor of the Year: Karen Groves
(e-Careers)
AAT Apprentice of the Year: Stephanie
Goodsell (Peak Accountancy Training)
AAT Student of the Year: Katie Robinson
(Training Link)
AAT Special Recognition Award Winner: First
Intuition
First Intuition – AAT special recognition award

22 PQ Magazine May 2024

 AAT Training Provider awards PQ

3 Counties Accounts Training Services – best new training provider of the year University of Gibraltar – the small training provider of the year

Time to wave your napkin in the air, like you just don't care Riverside Training – apprenticeship training provider of the year

Future Connect Training & Recruitment – the medium training provider of the year Karen Groves (e-Careers) – AAT tutor of the year

MAS Education: Management & Accountancy School (Myanmar) – international

training provider of the year Katie Robinson (Training Link) – AAT student of the year

New City College – the large training provider of the year Premier Training – distance learning provider of the year

PQ Magazine May 2024 23

PQ AAT Training Provider Conference

Meet the wonderful Katie Robinson

Katie was recently awarded Student of the Year by the AAT. Here, she tells her story…
rowing up, I didn’t know what I wanted

G to do once I had left school. Although

school work came easy to me, no career
path felt right. I feel that I took my A-Levels
because I should do them rather than part of a
grand plan. I opted not to go to university and
instead fell into administration roles.
By late 2018, I was working as a Stock
Administrator, but then two of my colleagues in
the accounts team announced that they would
be going on maternity leave within weeks of each
other. My manager approached me with the idea
of taking on some of the accounts work in that
time, mainly costing work, as this would tie in
with my main job.
It was during this time my manager suggested
I do an AAT course to improve my knowledge.
I took him up on this, and in June 2019 I
registered with Training Link to do AAT Level 2
Accounting. I knew that I wanted to do distance
learning so I could learn at my own pace.

Life can change in the blink of an eye

However, on Saturday 23 November 2019 – one
week prior to my penultimate exam – life as I
knew it changed forever.
My father was taken seriously ill in hospital
having suffered a rare type of stroke. Previous
thoughts of revising for an exam went towards
learning complex medical terms and making
three-hour round trips to visit my father in a
specialist hospital. He had been my biggest
cheerleader and I was going to return the favour
by being there for as much of his care and
therapy as possible.
Despite the poor outlook for my father’s
condition, I eventually managed to sit my
postponed exam in February 2020 and then
focused on learning my final unit. I felt that I
had a new purpose for completing my Level 2.
In early March 2020, my father was placed into
a nursing home and I got myself into a position
where I was given the go-ahead to sit my final
exam.
How the pandemic changed everything
I felt very much in limbo during this time as I
had no idea when I could sit an exam and was
not able to see my father due to the visiting
restrictions for care homes. Nevertheless, I
eventually passed AAT Level 2 with an overall
mark of 98% (Distinction) in August 2020. That
same week, I was also approved by the Court of
Protection to be my father’s financial deputy (as
he had lost capacity before a Power of Attorney
could be put in place).
The next year was spent getting my father’s
affairs in order. But I found I was relishing in the
challenge of ensuring that my father’s finances
were properly recorded on the Office of the
Public Guardian’s (OPG) system. For the first
time, I was seriously thinking about making a
career change from admin to accounts. Having
seen my father struck down having barely
retired, I wanted to make the most of my working
life. I resolved to look for new employment once
my personal life was more stable.
The start of a new chapter
In February 2022, I started applying for entry-
level accounts roles and I started my current
employment that April as an Accounts Assistant.
The company knew that I had experience
of costings, but my general bookkeeping
knowledge was minimal. That did not stop them
from throwing me in at the deep end, but I felt
that helped me learn at a faster rate. Before long,
I was not only logging purchase invoices and
reconciling the bank, but I was also moving on to
processing month-end journals, putting together
cash forecasts, and liaising with customers and
suppliers worldwide.
At the start of my employment I made a
promise to my new manager that I would study
AAT Level 3 Accounting. In September 2022,
just after AAT launched their new syllabus, I
signed up with Training Link again. Everything
was as I remembered it and it made my learning
experience a lot easier, even though the course
was a lot harder than Level 2.
My initial goal had been to pass all four exams
on the first attempt. Just over 12 months after
signing up I was awarded an overall mark of
90% (Distinction), having indeed passed all four
exams the first time.
What’s next?
My short-term aim is to start studying AAT Level
4 so I can take on even more responsibility in my
job. Management accounting is what appeals
most in the long term, but for now I am just
embracing the chances I have been given and
enjoying finding my way through my new career
path.

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24 PQ Magazine May 2024
Advance your career
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PQ IFA spotlight
What is money
laundering?
Have you got anti money laundering policies in place? If not, you
need to make this your top priority!
oney laundering
M is a menace to
businesses and
society, costing the UK economy
billions each year, according to
the National Crime Agency.
Money laundering is a process
whereby criminals turn the
proceeds of crime into funds that
appear lawful and can then be spent as if they
were from legitimate sources.
As accountants we have a responsibility to
act as gatekeepers and there is an unavoidable
requirement to build anti-money laundering
(AML) policies and procedures into our
professional practice.
This is not just a nice to have, but rather a
legally enforced requirement where you must
demonstrate compliance with the regulations with
your respective supervisory body. It may appear
ACCA Careers is dedicated to helping
ACCA students develop their careers.
With hundreds of entry level global
job opportunities and over 400 career
advice articles, we’re here to help you
every step of the way.
Visit jobs.accaglobal.com today
26
to be another administrative
burden, but with a disciplined
approach and the support
of your Institute the process
needn’t be too difficult. AML
is the responsibility, in some
capacity, of all employees in
a firm. If you spot something
suspicious you should make an
internal report to the money laundering reporting
officer (MLRO) which then devolves you of your
responsibility.
AML regs you must comply with
In the accountancy sector, the regulations
apply to those engaging in public practice by
way of business, providing services such as tax
compliance, bookkeeping, payroll, as well as
accountancy and assurance services.
Trust and company service provision such as
company formation and registered office services
are also under the scope of the regulations.
Broadly speaking, accountancy firms must
have in place appropriate tailored AML policies
and procedures, a firm risk assessment of the
clients and services it provides along with any
steps to mitigate risks, conduct ongoing customer
due diligence on all clients, including ‘know
your client’ documentation and a client risk
assessment, as well as ensuring relevant staff
receive annual AML training.
Firms should also have clear reporting lines in
place to enable you to make disclosures to the
National Crime Agency, where appropriate. These
are known as suspicious activity reports or SARs.
Keeping up-to-date
The Institute of Financial Accountants (IFA) has
a team of knowledgeable, experienced AML
reviewers and compliance officers who are on
hand to guide their member firms through their
AML responsibilities, queries, and AML reviews,
but it is important to incorporate good practice
before inspection becomes necessary.
On 21 May 2024 the IFA is holding its first AML
conference online. This will be a great way to
bring your understanding of AML up to date with
insight from expert speakers and real-life case
studies from practitioners.
Find out more and to book go to
https://tinyurl.com/mnax7njj. Watch the YouTube
video at https://tinyurl.com/53b8x6ny
• Thanks to the IFA for this article
PQ Magazine May 2024
 AAT exams PQ

Budgeting and variances explained

Karen Groves explains how to approach a budgeting and variance exam-style question and tests
your knowledge on the subject
udgeting and variances are assessed at AAT Levels 2, 3 and 4. At

B Level 2, only a basic level of knowledge is required; however, you

will still be required to calculate variances and identify if these are
adverse or favourable.
Budgeting helps a business to manage sales and costs and helps
managers control the business. The budget is based on what you expect
to happen in a future period, for example, next month. The budget is then
compared with the actual amounts and any difference, or variance, can
be investigated to identify the cause. For example, an increase in material
cost could be due to a shortage nationally of materials, which in turn, has
increased the purchase price.
A favourable variance occurs when our costs are lower than expected
or our sales are higher than expected. A favourable variance will increase
profits.
An adverse variance occurs when our costs are higher than expected or
our sales are lower than expected. An adverse variance will decrease profits.
As an AAT tutor, I get many questions on how to calculate the variances,
with students getting confused on which figures to base their calculations.
We will look at an example question, and the way this should be
approached.

Example
The following information has been provided for the month of April 2024, Note: In an exam question you may also be asked to show the
detailing budgeted and actual costs for the month: percentage variance as calculated above, so be sure to take the variance
amount and divide by the budget amount.
Cost Budget Actual Variance Significant?
£ £ £ Yes No Now have a go!
Direct materials 33,580 35,690 The following information has been provided for the month of May 2024,
detailing budgeted and actual costs for the month. Any variance greater
Direct labour 20,000 21,500
than 5% is deemed as significant and should be investigated further.
Overheads 25,000 25,000 Calculate the variances and identify if the variances are significant or
Admin costs 12,000 12,700 not.
Cost Budget Actual Variance Significant?
The first step is to calculate the variances as follows, being the difference £ £ £ Yes No
between the budget amount and actual amount, for example: Direct materials 46,270 42,560
Direct materials £33,580 - £35,690 = £2,110
Direct labour 30,000 29,000
Cost Budget Actual Variance Significant?
Overheads 20,000 24,000
£ £ £ Yes No
Admin costs 15,000 16,500
Direct materials 33,580 35,690 2,110
Direct labour 20,000 21,500 1,500
Overheads 25,000 25,000 0 Answers:
Admin costs 12,000 12,700 700 Cost Budget Actual Variance Significant?
£ £ £ Yes No
We are advised that any variance greater than 6% of budget is
Direct materials 46,270 42,560 3,710 √
considered to be significant and should be investigated further.
The next step is to calculate the variance percentage, as follows, being Direct labour 30,000 29,000 1,000 √
the variance amount divided by budget x 100, for example: Overheads 20,000 24,000 4,000 √
Direct materials £2,110 ÷ £33,580 x 100 = 6.28%
Admin costs 15,000 15,500 500 √
Direct labour £1,500 ÷ £20,000 x 100 = 7.5%
Overheads – 0%
Admin costs £700 ÷ £12,000 x 100 = 5.83%
Direct materials £46,270 - £42,560 = £3,710
Cost Budget Actual Variance Significant?
Direct labour £30,000 - £29,000 = £1,000
£ £ £ Yes No Overheads £20,000 - £24,000 = £4,000
Direct materials 33,580 35,690 2,110 √ Admin costs £15,000 - £15,500 = £500
Direct labour 20,000 21,500 1,500 √
Direct materials £3,710 ÷ £46,270 x 100 = 8.02%
Overheads 25,000 25,000 0 √ Direct labour £1,000 ÷ £30,000 x 100 = 3.33%
Admin costs 12,000 12,700 700 √ Overheads £4,000 ÷ £20,000 x 100 = 20%
Admin costs £500 ÷ £15,000 x 100 = 3.33%
• Karen Groves is an AAT tutor and AAT Faculty Director at e-Careers

PQ Magazine May 2024 27

 FIN A
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 company law PQ

A question for Tom

Tom Clendon explains the difference between a the extent that the
subsidiary and an associate – it’s all about control parent does not hold
all the equity of the
subsidiary then a non-
Question company’s financial controlling interest is
What’s the difference between a statements using recognised.
subsidiary and an associate? acquisition accounting The rationale
to produce the group behind the full
Tom’s answer accounts. Goodwill consolidation of
Understanding the difference between a will arise. All assets, the subsidiary is
subsidiary and associate is important. You liabilities, income, stewardship. Group
need to know how they are each accounted and expenses of accounts ensure that
for in the groups accounts, but also to be the subsidiary are there is a reporting on
able to apply their definitions in classifying combined with those assets and liabilities
investments. of the parent company that are under a
to form the group single control and
Define the terms! accounts. To the performance
A subsidiary is an entity controlled that those net assets
by another entity, known as the generate. Through consolidation, the parent
parent company. Control means company effectively presents itself and its
having the power to direct subsidiaries as a single economic entity.
the operating and financial This reflects the economic reality.
activities, having exposure to Associate undertakings are accounted
variable returns by owning for using the equity method. Under this
shares in the company method, the investor initially records the
and having the ability to investment in the associate at cost and
exercise that power. Control subsequently adjusts it to reflect its share
is normally evidenced by the of the associate's profits or losses and any
parent holding a majority of the distributions received.
shares.
An associate Consider
undertaking is an Kirk owns 40% of the equity
entity over which of Spock. The other
the investor shareholders of Spock are
has significant owned by a large number
influence but of investors who are not
not control. connected and each own
Significant less than 1%. There are
influence is three directors of Spock
presumed and two of these were
when the nominated by Kirk. The
investor holds issue is whether Spock
in excess of should be classified
20% of the and accounted for an
equity but associate or a subsidiary
not a majority. in the Kirk group accounts.
Good evidence There is a rebuttable
of significant assumption that a 40% holding
influence is having board would give significant influence
representation. and therefore associate status.
It is important to However, when the size and the
note that the definition dispersion of the other shareholders
of a subsidiary and an are considered together with the
associate is not strictly composition of the board the
speaking a numerical correct conclusion is that Kirk
one. What matters is controls Spock. Spock is therefore
whether there is control a subsidiary of the Kirk group and
or significant influence. should be fully consolidated using
And this can be a matter acquisition accounting. The NCI will
of judgement. be 60%.
Strange but true!
Accounting • Tom Clendon is an ACCA SBR
Subsidiaries online lecturer and podcaster
are aggregated who loves WhatsApp –
with the parent 07725 350793

PQ Magazine May 2024 29

PQ CIMA OCS
Saddle up for the
latest pre-seen
CIMA’s latest pre-seen is here for the OCS, so saddle up as tutor
Andrew Mower picks out the key examinable topics from Kanann
anann is a company that designs,
K manufactures and sells saddles for horse
riding. The company is based in Keeland,
a country in mainland Europe.
Kanann has a well-established brand and
reputation for high-quality, value-for-money
saddles, but lacks innovation, which had led them
to ‘falling behind the times’.
So, what topics could be examined?
Core Activity A
Activity based costing (ABC)
Kanann currently uses a standard absorption
costing system, with a single overhead absorption
rate based on labour hours.
Although the product range is not currently
complex, there is potential for Kanann to launch
new specialist saddles. Fixed costs are significant
within the business, so a more accurate costing
system such as ABC could be tested.
Revise the key differences between ABC and
absorption costing, and the pros and cons of
switching. Both are commonly examined in OCS.
Core Activity B
Stress-testing budgets
Kanann’s budgets rely on several factors
30
running smoothly in order for them to be
accurate for 2024 – including sales, material
costs and production rates.
You may be asked to discuss stress-testing
the budgets – what could change that would
affect the budgeted figures?
Major disruptions for Kanann could include
the loss of a major retailer, an issue with a key
supplier, or staff illness.
Stress testing would then involve predicting
these scenarios, and seeing how budgets
would be affected. Know how this could work
in this scenario.
Core Activity C
KPIs and Variances
This is the most predictable one – KPIs and
variances come up in nearly every OCS exam.
The pre-seen doesn't give us any KPIs
for Kanann, so you may be asked to discuss
suggested KPIs presented to you, or generate
some brand new KPIs.
The key with these is to ensure they are
SMART (specific, measurable, attainable,
relevant and time-bound), and also justify why
they are important to Kanann. This could link
to the lack of innovation, sustainability targets
or new saddle ranges, for example.
You often get given a variance report, so be
prepared to explain what the variances mean,
and discuss what could have caused them.
The most important tip with variances is
to relate them to the scenario given – the
answers will often be in the question, so use
that to support your points.
Core Activity D
PPE and Leases
Kanann is looking to become more innovative
and sustainable, and the average time to
produce a saddle is a massive 28 hours.
It would make sense to invest in new,
innovative manufacturing equipment to help
make saddles faster and in a more energy-
efficient way.
This would involve knowing which costs to
recognise initially under IAS16, and then how
to depreciate the assets and deal with any
subsequent expenditure.
Given Kanann doesn’t have huge amounts
of cash, an alternative could be to lease
assets instead, to avoid the upfront costs and
allow them to update the equipment more
frequently to stay innovative in future years.
Kanann doesn't lease any assets currently,
so you could be asked to explain right of use
assets and lease liabilities under IFRS16.
Core Activity E
Expected Values
There are several clues that Kanann will
launch a new saddle range soon, potentially
focusing on specialist saddles rather than just
their existing general purpose models.
If this happens, Kanann will want to forecast
demand – and how this would be affected by
different marketing campaigns or by differing
states of the economy in Keeland.
Know how to explain expected values,
potentially as part of a decision tree. Other
statistical tools such as standard deviation
and coefficient of variation could also be
tested.
Remember, if the examiner asks for a
recommendation, make sure you do one, or
you will slip down in the marking grid and
throw away several easy marks.
Core Activity F
Inventory Management
Kanann holds a reasonably high level of
inventory (K$590,000 at 31st December
2023), which we are told is very labour-
intensive to manage in the warehouse.
Inventory days have dropped from 64 in
2022 to 56 in 2023, which could suggest
Kanann has already started the process of
becoming more lean with their inventory levels.
A move to a Just in Time (JIT) system,
or introducing the use of Economic Order
Quantity (EOQ) could be suggested. Revise
how each of these systems works, and the
benefits and drawbacks of adopting each
approach – including the assumptions behind
EOQ.
• Andrew Mower has just launched a brand
new online course for OCS, available now at
vivatuition.com. You can also follow him on
LinkedIn for exam tips and more
PQ Magazine May 2024
 ACCA AFM exam PQ

Beyond the numbers

Steve Chen explains how to pick up the easy marks in the discussion part of the AFM exam
hroughout my years of experience

T teaching the ACCA Advanced Financial

Management exam, being an official
marker for the largest accountancy body in the
world, and being the official exam marker at
ICAS, I’d like to share some tips regarding how to
pass this paper.
There are two vital things to bear in mind:
1. Understand your role – to present analysis
to the board rather than simply jumping to
the conclusion.
2. Work hard on the discussion requirements.

Calculative and discussion requirements

Calculation in the AFM exam seems to be
difficult for many students; however, the
discussion requirements usually contain many
easy marks. Examples:
• Comment on or discuss additional matters to
consider when making investment decisions.
• Comment on or discuss the factors to
consider when considering potential
financial options.
A weak answer tends to focus on:
• Appropriateness of the current company’s
strategy, such as commenting on whether it
should leave this industry.
• Whether the company should proceed with
the decision, such as by advising the board
not to proceed with the investment.
• Appropriateness of the current financial
decision, such as simply advising the board
not to go ahead with the debt finance
option.
Misinterpretation
The student answers mentioned previously
completely misinterpret the AFM exam’s
requirements. These types of answers usually
do not earn any marks because the questions
are designed to assess the students' ability to
demonstrate critical thinking, not simply to arrive
at a conclusion.
Therefore, I would highly recommend my
students follow the below approach to answer
the discussion requirements in the AFM exam.
Example of requirement:
Discuss the factors to consider when making
investment decisions.
Your answer could include:
• Calculation: Make sure you comment
on the calculation. It is highly likely that
Analysis and Evaluation professional marks
will be awarded.
• Cash flows: Comments regarding the
potential investment options should be from
a cash flow's perspective; indeed, this is the
key element of the AFM syllabus. Things to
mention could include sensitivity analysis,
option value analysis, and simulation
analysis.
• Pros and cons: If you are given more
technical areas, such as ways to finance the
business, make sure you also comment on
the pros and cons of each method.
Writing style
Unlike in other SP-level papers, the writing style
of the AFM exam questions should adopt ‘the
simple sentence’ approach. There is no need to
further expand the answer if the point is touched
on in the answer. I would teach my students to
use the ‘Point + So what’ style in the discussion
question.
It’s important to note that the AFM exam does
not allow for partial marks; that is, there are
no half marks in the discussion requirements.
Each discussive point made can earn one full
mark or none at all, depending on the marker’s
assessment of the explanation’s clarity.
• Steve Chen, FCCA, ACA, is the founder
at GlobalAPC and an exam marker for two
professional accountancy bodies

PQ Magazine May 2024 31

PQ CIMA spotlight
Embracing that
dreaded topic
Nasheen Wuisman explains how you can gain understanding of
the subjects that, initially, cause you real headaches
ou read it once, it doesn’t make
Y sense… you read it again, still no
sense. You have now read it multiple
times and other than getting frustrated you
have not moved on!
Sound familiar? It should. I felt like this about
Statements of Cash Flow when I was studying. I
couldn’t see how or why or even what the point
was. This wasn’t the only topic that caused my
exasperation when I was studying – but I will
spare you the list.
Every subject you face has areas that are
logical and straightforward. However, every
subject also has topics that can stop you in
your tracks; you can’t get past them and you
just don’t know how to move forward. It can
feel like if you don’t understand this one topic
you are not going to be successful in the exam.
Let’s look at the bigger picture first. Every
subject is balanced – even the subject you
dislike the most (there might be more than
one) is balanced. There are straight forward
topics and there are hard ones, it is the nature
of the syllabus. So don’t panic, everyone is with
you.
What we need to do is to be able to move
on, see past it, get the essential information
from it to progress. So what do we do? Rather
than let the problem fester, try some of these
techniques to work through it.
Identify your bugbears in advance
Doing this means you have time to be in
control and plan to tackle it head on. Realising
you have a problem topic two weeks before the
case study exam limits your options and will
cause unnecessary stress. So plan your exam
preparation time well in advance, allow time
for hurdles and contingency and then try your
best to stick to the plan.
Go with the flow
Work through the topic, accept it is hard and
spend a little longer on it on the second read.
Try to keep an open mind, as there will be
elements that do make sense, usually the
32
foundation. Once you feel a little confident
then tackle the trickier elements.
Come back to it
The worst thing you can do is get caught up
with a tough topic and then allow it to stop you
from progressing. Whether you are preparing
for a case study exam, objective test or working
through the Finance Leadership Programme
competencies, remember that you can always
leave a topic for now and come back to it later.
Firstly, this allows you to move forward and
complete more of the level you are studying
for, which will give you a psychological boost;
furthering your general subject knowledge
may even shed more light on the topic you
were stuck on. Secondly, it means one tough
topic doesn’t become an overwhelming barrier
in your head. This emotion can make you
question whether the CGMA qualification is
even for you, whether giving up is the answer…
but you’d be wrong! Everyone who has studied
CIMA has experienced these emotions. So
leave it, move on, come back to it later – this
topic is not going to stop you.
Find a tangible example
Worked examples to support theoretical
explanations help your brain to visualise the
concept and can enhance your learning, even
with complex or abstract concepts.
For this reason, try to seek out worked
examples of the topic you are struggling with.
You never know when you will find the one
which makes the concept ‘click’ in your head.
Vary your learning source
When you get stuck, and realise that a topic is
vexing, the temptation can be to go over the
same page in a textbook or FLP module again
and again until you get it.
After a while this becomes counter-
productive. Instead, take a break, then try to
find another source that explains the same
concept. Is there a video on YouTube that
can help? Maybe a podcast? Just hearing the
same thing explained in a different way or
by somebody new might help you make the
connections you have been missing. Check out
the key topic support on the CGMA Study Hub,
which focuses on tricky topics. You might just
find exactly what you need.
The power of revisited learning
In order to be topic comfortable or even
confident, remember to come back to
it. Revisiting what you have learned over
time boosts your brain’s capacity to store
and retrieve the information. Giving time
for learning to settle allows the perfect
environment for storing information, as well as
recalling it.
Ask any CGMA designation holder and they
will tell how they did not need to be confident
in every topic in every subject syllabus. They
will tell you how even when they came across
hard topics in the exam, the ones they feared
all along, they still passed. They will tell you
to be as comfortable as you can be with as
many topics as possible, and they will tell you
that now they are qualified they are relieved
that they’ll never have to be examined on that
dreaded topic again!
• Nasheen Wuisman, Senior Manager of
Global Academic Progression at AICPA
& CIMA, together as the Association
of International Certified Professional
Accountants
PQ Magazine May 2024
PQ CIPFA spotlight
Fostering financial
resilience in a
chaotic climate
Jennifer Bevan looks at how local authorities can balance the
books as funding pressure increase and demand for statutory
services continues to grow
afeguarding sustainable service delivery
S for future generations demands robust
financial resilience. But what does this look
like amid the frenzied financial landscape that
local government finds itself in?
Since the 2008 financial crash, financial
resilience has undoubtedly become increasingly
pertinent, yet more and more challenging for
authorities to achieve. Financial resilience refers
to the ability to respond to unexpected changes
in demand or resource without placing the
organisation at risk of future financial failure.
With service demand pushing past the brink
of workforce and funding supply, maintaining
financial resilience is no mean feat in today’s
climate.
A legislative function
In England and Wales, financial resilience is
nevertheless tied to a legislative need. Local
authorities must meet a balanced budget by law
under the provisions of the Local Government
Finance Act (1992). Existing as a buffer to prevent
authorities from spending beyond their means,
this legislation aims to foster a foundation for good
34
financial resilience. In practice, this looks like an
ability to evenly match income with expenditure.
In theory, this additionally involves fostering a
sustainable and stable financial state over a long-
term period.
While authorities are allowed to use reserves
as part of their budget calculations, this resource
can only be used once. Where reserves are
used to plug revenue gaps, CIPFA advises that
authorities maintain a sufficient level of reserves
beyond this immediate activity. Otherwise,
depleted reserves run the risk of unforeseen
circumstances threatening financial stability.
Warning signs
To help stop financial instability in its tracks, there
are key warning signs to watch out for among
local authorities. Common risk areas include:
• Undelivered savings without a robust plan for
delivery.
• Widening budget gaps, leading to unplanned
overspends.
• Unchallenged increased risk appetites.
• Debt.
Financial struggle can be further identified by
a decrease in the tools and controls that help
a local authority mitigate against financial risk.
These factors include:
A rapid decline in reserves.
• A shortened medium-term plan and lack of
horizon scanning.
• Reduced capacity within teams.
The combination of growing risk areas together
with weakening resources to alleviate pressures
concocts a perfect storm for financial instability.
This can leave an organisation in a weak position
to cope with peaks and troughs in demand, or
unexpected occurrences of one-off expenditure.
Fostering financial resilience
CIPFA’s work in examining the warning signs of
financial instability reveals underlying themes and
causes that can help authorities to pinpoint their
risk areas. These financial risk pressures include:
High levels of debt and risk: A shifting focus on
income generation sees some authorities enter
commercial strategies, sometimes leading to
greater than expected levels of risk for the local
government organisation. This high level of risk
exposure can result in commercial strategy
failure, and an unsustainable level of debt
compounded by a lack of financial return to
manage it.
Legacy issues: In some circumstances, financial
issues arise from historical costs that have run
riot. An example of insufficiently controlled
costs lies with Birmingham City Council, where
pressures arose from historic equal pay claims
and issues with the installation of a new IT system.
Broad pressures: A low council tax strategy or a
lack of direction for delivering savings can build
up broader pressures that threaten financial
resilience.
Governance and scrutiny: As financial
sustainability becomes increasingly challenging, it
is essential to maintain strong leadership coupled
with good financial management. This demands
transparent and honest monitoring of reports
to allow financial issues to be both identified
early and acted upon in good time. In additional,
strong governance arrangements include the
ability to speak truth to power. Where authorities
experience financial difficulties, there can be
issues concerning a lack of oversight from audit
and governance committees. It is important for
governance teams to exercise their functions
effectively and to maintain a strong understanding
their roles and responsibilities.
Recognising these issues and reflecting upon
lessons learned can enhance a local authority’s
ability to foster financial resilience for the future.
CIPFA has further responded to discussions
surrounding financial resilience by recently
updating the Treasury Management Codes
and Prudential Borrowing Codes to tighten
requirements, with a further review to take place
in 2024.
Following a frugal Spring Budget for public
service funding, and as we look ahead to the pre-
election whirlwind, it is increasingly important for
local authorities to get financial resilience right.
Start scrutinising risk areas and resources now
to place yourself in the best possible position to
deal with the ever-increasing demand amid our
frenzied financial climate.
• Jennifer Bevan is an Advisor for CIPFA’s
Financial Advisory Network
PQ Magazine May 2024

Dear Karen
Ask PQ’s very own agony aunt
Karen Young when you need
advice from a real expert. Email
your dilemma to graham@
pqmagazine.com, and he will pass
on the best ones to Karen
THE DILEMMA
I’ve been told different things about
whether to include my hobbies on
my CV. Do you think it’s a good idea?
KAREN’S RESPONSE
Many CV templates have space to
mention your personal interests
and hobbies, such as creative
pursuits, sports or volunteering.
While you want to paint a picture
of who you are as a person, so
an employer can assess whether
you’d be a good fit for the team, it’s
important to reflect on how relevant
your hobbies may be to the job
you’re applying for.
It is worthwhile highlighting
hobbies that illustrate your
transferable skills, whether that’s
working well with other people in a
team sport or having strong technical
skills from online gaming. Think
about the hobbies that demonstrate
and enhance your problem-solving,
communication and project
management skills to really impress
your prospective employer.
Hobbies can illustrate the
personality traits that will help to
depict you as a suitable candidate
for the role in question. So consider
whether you would be comfortable
speaking about your hobbies in an
interview, then make sure you tailor
that section accordingly.
If you have space towards the end
of your CV, and you have come to
the conclusion that they are relevant,
appropriate and interesting, there’s
no harm in including your hobbies.
Keep any mention of your personal
interests brief, as the bulk of your CV
should reflect your experience and
transferable skills and your studies
and qualifications, and you want your
CV to be eye-catching and concise.
• Karen Young is a director at Hays.
She is passionate about helping
people to find the right job and
companies the right person
PQ Magazine May 2024
How do organisations say sorry?
Making it easier for organisations to apologies could give victims more
chance to find closure, says a new consultation
The UK government is looking
to update the law to make
it easier for organisations
to offer sincere apologies
to those who have been
wronged.
The Compensation Act,
which became law in 2006,
made it easier for public
institutions, private companies
and their employees to apologise,
without admitting liability in civil
proceedings.
Yet almost 20 years on,
there is little evidence this has
encouraged businesses to
use apologies more as form of
reparation – leaving many victims
without proper closure and a
sense they are unable to move on
In brief
New flexible
working laws
The UK government’s new flexible
working regulations have now
come into force, giving employees
the right to request flexible working
arrangements from the first day
they are employed.
Under the old laws workers
had to employed for 26 weeks
before they could ask to work
more flexibly. The changes mean
staff can now ask to go part-
time, have flexi-time, term-time
working, compressed hours, and
even adjust their start and finish
times, as well as ask for the right
to work from home.
And before rejecting any
such requests employers will
now need to consult with the
The PQ Book Club: books you should read
Career Confidence: No-BS
Stories & Strategies for
Finding Your Power by Robynn
Storey (Wiley £23.99)
Robynn Storey is the CEO of
Storeyline Resumes, so right
away from that word ‘resumes’
you know that we are listening
to an American voice, but it
is a voice worth listening to
nevertheless.
Over two decades Storey
has helped more than 300,000
people find their dream job,
employs 60-plus staff and
brought in $10 million in
revenue. So fair to say she
knows what she is talking
about.
with their lives.
Often, organisations and
individuals remain reluctant to
apologise because of concerns
it may be interpreted by the
aggrieved party, or insurers, as
an admission of fault. Changing
the law to make this clearer could
remove barriers – perceived
or real – to apologising, while
employee. Employees will also be
able to make two requests every
year.
If want promotion
don’t work from
home
Men who work entirely from home
are more likely than women to be
passed over for promotions and
pay rises compared with their male
colleagues in the office, says new
research.
A study by the University of
Warsaw’s Agnieszka Kasperska
found UK bosses were 15%
less likely to promote men who
worked from home than their
office-based peers, and 10% less
likely to see a pay increase.
They are also much less likely
Chapter 1 is called ‘Life’s
a gamble’ and the take away
is don’t be afraid to bet on
yourself. As she says: “I
am suggesting that taking
a chance, in life, in work, in
relationships often leads to the
greatest wins of all.”
And, like all the chapters in
her book, it is short and sweet
– but that works. Some of the
chapter titles also brought a
smile! Like ‘Want loyalty? Get a
Dog’, ‘Fake it ’Til You Make It’,
and ‘A Guy Walks into a bar’.
In that last chapter the author
stresses the importance of
always being on the lookout for
new friends, new connections
careers PQ
broadening the scope of
the law would allow people
to express regret and offer
more earnest apologies.
As part of the
consultation, ministers are
also considering how best to
refine current laws following
a recommendation from
the Independent Inquiry
into Child Sexual Abuse (IICSA)
that apologies could and should
be offered by employers for the
actions of current or former
employees – known as vicarious
liability. This would encourage
the likes of schools, care facilities
or hospitals to offer apologies for
abuse carried out by an individual
at these institutions.
than their female colleagues
to be overlooked, with bosses
saying they were 7% less likely to
promote home-working women
than those in the office and 8%
less likely to give pay rises.
Failures over the
national minimum
wage
As the national minimum wage
reaches its 25th anniversary, there
continues to be a high level of non-
compliance among employers,
warns BDO.
Since the introduction of the
national minimum wage in 1999,
HMRC has carried out 87,000
investigations, issued £86m in
fines and enforced £117m of
arrears.
and new
opportunities.
People are
always landing
jobs because
they talked to
someone in a
lift, plane or
even a bar.
PQ rating:
5/5 What this
really readable
tome gives you is a sense
of how important it is to do
something you love. She says
everyone deserves to find the
right fit and wake up feeling
excited to get to work. Without
that you can’t flourish.
35
PQ the
got a story, funny or serious, you want to share? Email graham@pqmagazine.com

Your favourite accounting jokes

Senegal elects tax
collector as president
A year ago no one knew who Bassirou Diomaye
Faye was. Now, the former tax collector has
become Africa’s youngest elected president.
He became Senegal’s new president in late
March, after spending 11 months in jail with
his ally Ousmane Sonko (also a tax collector,
now the country’s Prime Minister). Faye has the
nickname ‘Mr Clean’, and has just turned 44. Top
of the agenda now is the fight against corruption,
injustice and poverty.
He is looking to renegotiate gas, oil, fishing and
defence deals so they benefit the Senegalese
people. He also wants to create a new currency,
and move away from the current set-up where
the currency linked to the Euro.
Here’s our top 10, in no particular it’s a place where everyone
order: counts!
Why are accountants so cool, What do you call an accountant
calm, and collected? They have without a calculator? Lonely.
strong internal controls. How does Santa’s accountant
How many accountants does it value his sleigh? The Net Present
take to screw in a lightbulb? How Value (too early?).
many did it take last year? What do accountants suffer
What do you call an accountant from that ordinary people don’t?
without a spreadsheet? Lost. Depreciation.
What do you call an accountant
with an opinion? An auditor.
Why do accountants seem to
lead a happy life? Because they are able to
What does an accountant say when getting on a achieve balance most of the time.
train? Mind the GAAP. Thanks to LHH and Taxdome for these. If you have a
Why do you always get a good welcome when better one please send it to graham@pqmagazine.
you visit the accounting department? Because com
When you need a photographer…
After an absence of four years the AAT Training Provider Awards and
conference came back with a bang in Nottingham. The entertainment for
the awards night was supplied by a special delivery pizza man (and his
friend)! The pizza was delivered to FI’s Nick Craggs, who appeared to have
stolen one of colleagues Gareth John’s shirts. It all ended happily, as the
pizza guy turned out to be a fantastic singer (but we knew that was coming).
PQ magazine was there, of course, and it was great to see CEO Sarah
Beale seems to be able to turn her hand to everything. She even helped out
with the photos. For the record, there was also a professional photographer on hand, too.

Don’t get fooled again leave it to others to have the fun.

In the past, PQ magazine
would have been there on 1
April with its April Fools’ Day
prank. We caused an outcry
when we said PQs would
have to wear their suits
to the exam hall because
the professional bodies
said they looked too scruffy and were bringing
the profession into disrepute! The accountancy
bodies were inundated with complaints, and we
had to buy the receptionist at CIMA flowers to say
sorry for giving her such a terrible day. Now we
For his April Fool, top tutor Sunil Bhandari
explained he had signed up for revolutionary
right knee replacement surgery (his left has been
replaced by a more traditional method). It would
mean connecting his knee to a power source
every day, and would cut his recovery time in half.
Didn’t sound that far-fetched to us!
Meanwhile, Tom Clendon claimed accounting
students were going to be allowed to use the
internet (including AI’s ChatGPT) in a forthcoming
special exam. A nice touch in his story was the
link to those wanting to know more –
https://lnkd.in/dmHmFp9. Again, that April Fool
may become a reality one day.
Smoking costs Smoking is
not good for your health, we all know that, but
did you know how much you could save by not
smoking? Well, online vape retailer Go Smoke Free
has worked it out. It found a 20-year-old woman
on 10 fags a day could save £163,702.50 over
her lifetime if they quit smoking! That has been
worked out on a pack of 20 cigarettes costing
£13. Because men don’t have such a long life
expectancy, a 20-year-old man would only save
£156,585. Middle-aged people were also revealed
to have significant potential savings from going
smoke-free. A 50-year-old woman had potential
lifetime savings of £87,782.50, if she lived the
expected 37 remaining years.

’
WEV E GOT THE L OT
Amazing animals
We have three copies of Amazing Animals up
for grabs this month. The wonderful animal
designs in this book will allow you to break away
from the chaos of everyday life and plunge
yourself into a land of peace and relaxation.
All the illustrations are drawn by hand and
the models are real animals.
To be in the draw to win one of these books
send an email headed ‘Amazing Animals’ to
giveaways@pqmagazine.com, along with your
name and address.
Fiendish Su Doku
We have three copies of The Times Fiendish
Su Doku Book 10 best-seller to give away this
month. You can immerse yourself in 200 of
the most super fiendish puzzles. Remember,
these aren’t just fiendish puzzles these are
super fiendish ones!
The claim is that these Su Dokus will be
enough to exercise the grey matter of even
the most experienced enthusiast.
To be in with a chance to win one of these fab books simply email us at
giveaways@pqmagazine.com with your name and address and we will put
you in the hat. Head up your email ‘Su Doku number 10’

Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway entries
must be received by Friday 17 May 2024. The main draw will take place on Monday 20 May 2024.
TO ENTER THESE GIVEAWAYS EMAIL GIVEAWAYS@PQMAGAZINE.COM
36 PQ Magazine May 2024