International Accountant 103

INTErNATIONAl

ACCOUNTANT

JANUARY/FEBRUARY 2019

Top technology predictions for 2019 Attracting and retaining talent The stain of money laundering

Diversity in the boardroom

ISSUE 103

CONTENTS

In this issue Contributors 2 News and views

3

AIA news

6

Celebrating ten years of Accounting for International Development

22

14

Meet the team

AIA welcomes bold new vision set out in FRC independent review

8

Criminal activities Technology 14 Top predictions for 2019 From artificial intelligence to 5G, Damon Anderson (Xero) asks what technological developments accountants can expect in 2019.

Achieve 8

Money laundering What can accountants do to battle financial crime and money laundering?

Tom Townson (Grant Thornton) investigates.

22

25

18

Interactive distance learning We speak to Arthur Kaliisa, a current AIA student, about his experiences.

10

Management 25 Diversity in the boardroom Understanding the relationship between board diversity and performance can have important implications for companies, writes Princess MurefuBwanya (Northumbria University).

Students 10 Exam technique How exam technique, time management and planning can help you achieve your full potential in narrative answers.

Human resources

Editorial Information International Accountant, the bimonthly publication of the Association of International Accountants (AIA).

Editor Rachel Rutherford E: editor@aiaworldwide.com T: +44 (0)191 493 0281

International Accountant Staithes 3, The Watermark, Metro Riverside, Newcastle Upon Tyne NE11 9SN United Kingdom

Advertising For advertising opportunities advertisingsales@lexisnexis.co.uk

+44 (0)191 493 0277 www.aiaworldwide.com

AIAWORLDWIDE.COM | ISSUE 103

18

Attracting and retaining talent Jennifer Warawa (Sage) explains how businesses can win the war to attract and retain the accountants of the future.

Subscribe to International Accountant subscriptions@aiaworldwide.com

Dates for your diary Upcoming events

28

Technical 29 Global updates

Design and production LexisNexis, Quadrant House, The Quadrant, Sutton, Surrey SM2 5AS www.lexisnexis.co.uk Printed by The Manson Group Ltd, St Albans, Herts, AL3 6PZ This product comes from sustainble forest sources.

AIA does not guarantee the accuracy of statements made by contributors or advertisers or accept responsibility for any views which they express in this publication.

ISSN: 1465-5144 Š Copyright Association of International Accountants

1

Editor’s welcome

Contributors to this issue

Editor’s welcome

DAMON ANDERSON

Damon Anderson is a Director of Partner and Product at Xero, an international leader in fintech. He has has over 15 years’ experience in delivering cutting edge digital marketing and payments technology. His team works with thousands of accounting and bookkeeping partners to ensure they have everything they need to make the most of digital transformation. One of his key challenges is to make Making Tax Digital an opportunity, not a challenge, for Xero partners.

PRINCESS MUREFU-BWANYA

A

s we go to print on this issue, we are still facing uncertainty around Brexit. We know that our members, as trusted business advisors, will be facing questions from their employers, clients and businesses regarding how they are to respond and what the impact will be. We do know from interactions with government that delivering the deal negotiated with the EU remains the government’s priority; however, preparation for other scenarios including “no deal” have been made.

Guidance for businesses trading with the EU and their advisers is available at www.gov.uk, including guidance on exporting and importing, customs procedures and obtaining a UK EORI number to trade with the EU. Whilst it may not cover all eventualities, we would recommend that all our UK members in practice review these documents.

AIA will continue to provide members with relevant updates on Brexit related matters through the e-news, In Practice and website.

In this issue, we look at what technological developments accountants can expect to see in 2019 with artificial intelligence, Making Tax Digital and 5G all having an impact on how accountants

2

Rachel Rutherford Editor, IA

work. We also examine the role of accountants in the battle against financial crime and money laundering, and how everyday compliance measures and robust risk assessment can protect your firm, as well as features on attracting and retaining the best talent and understanding the relationship between board diversity and company performance.

Exam success is as much to do with good exam technique as it is to do with good technical knowledge so for AIA students, there is an article that focuses on the time management and planning aspects of approaching narrative questions. The article is written with the Financial Accounting 3 (Paper 13) in mind but many of the issues are generic and will apply to all papers at all levels.

Finally, we thought it was important to show how AIA supports members throughout their career, from a student undertaking their first steps to becoming a finance professional through to Associate and Fellow membership where ongoing training, support and recognition can assist you in reaching your own professional goals. In this issue, we were delighted to speak with AIA student Arthur Kaliisa and AIA Fellow Member Ma Yuping, who reveal how the AIA has helped them in their careers so far.

Princess Murefu-Bwanya is an associate lecturer and doctoral researcher at Northumbria University. She is currently undertaking a PhD looking at the board structures of the FTSE 350. She has a strong interest in finance and, in particular, corporate governance. She previously worked in the insurance field.

TOM TOWNSON

Tom Townson is the partner leading the financial crime team for Grant Thornton, focusing on banks, lenders, loan servicing companies and insurers. He has 20 years’ experience as a practitioner and as a consultant to financial services firms in the crime arena, covering fraud, antimoney laundering, sanctions and conduct issues.

JENNIFER WARAWA

Jennifer Warawa is Executive VP of Partners, Accountants and Alliances at The Sage Group. She has been with Sage for over nine years, and is responsible for leading its portfolio of accounting products, including launching core cloud accounting technology. She is based in Sage’s Atlanta, Georgia office in the US. ISSUE 103 | AIAWORLDWIDE.COM

News CHARITY WORK

AUDITS

Celebrating ten years of Accounting for International Development

Accountants volunteering their finance skills to support international charities

●● AfIA celebrates its tenth anniversary ●● Support for over 50 countries

Over 1,300 accountants have made an extraordinary difference to charities across the developing world by volunteering their finance skills through the UK based social enterprise.

In 2019, Accounting for International Development (AfID) celebrates its tenth year of providing invaluable support to charities across Africa, Asia and Latin America. Remarkably, accountants with over 50 different nationalities have provided financial management support

to over 500 not-for-profits in more than 50 countries in that time.

AfID’s founder Neil Jennings commented: “It’s a real privilege to look back at all that’s been achieved over the last ten years, none of which would have been possible, of course, without our wonderful volunteers.

“Their hard work and commitment has assisted the development, and in some cases the very survival, of so many organisations doing fantastic work in their communities.”

To begin your own volunteer journey visit: www.AfID.org.uk, email: info@afid. org.uk or call: +44(0)208 741 7000.

FRC

FRC issues a suite of factsheets on aspects of FRC 102 The Financial Reporting Council (FRC) has issued a suite of staff factsheets on aspects of FRS 102, including the 2017 triennial review.

These factsheets are intended to assist stakeholders by highlighting certain requirements of FRS 102 and they are all available from the FRC website.

AIAWORLDWIDE.COM | ISSUE 103

●● Fact Sheet 1: FRS 102: Triennial Review 2017 Amendments; ●● Fact Sheet 2: FRS 102: Triennial Review 2017 Transition; ●● Fact Sheet 3: FRS 102: Illustrative Statement of Cash Flows; ●● Fact Sheet 4: FRS 102: Financial Instruments; ●● Fact Sheet 5: FRS 102: Property: Fair Value Measurement; ●● Fact Sheet 6: FRS 102: Business Combinations; and ●● Fact Sheet 7: FRS 102: Transition to FRS 102.

Reforms to improve competition in the audit sector

Improvements to the independence and the quality of audits are the focus of the market study update by the Competition and Markets Authority (CMA). The CMA’s update paper outlines serious competition concerns and proposes changes to legislation to improve the audit sector for the benefit of savers and investors alike.

It is putting these proposals out for public consultation.

Following the launch of its market study in October, the CMA has identified a number of reasons why it believes audit quality is falling short: ●● Companies choose their own auditors, and as a result we have seen too much evidence of them picking those with whom they have the best “cultural fit” or “chemistry”, rather than those who offer the toughest scrutiny. ●● Choice is too limited, with the Big Four audit firms conducting 97% of the audits of the biggest companies. ●● Auditors’ focus on quality appears diluted by the fact that at least 75% of the revenue of the Big Four comes from other services like consulting.

The CMA is proposing legislation to: separate audit from consulting services; introduce measures to substantially increase the accountability of those chairing audit committees in firms; and impose a “joint audit” regime, giving firms outside the Big Four a role in auditing the UK’s biggest companies.

3

News PAYMENT PRACTICES

InBrief UK signs new Israel tax agreement to boost investment A new agreement signed with Israel is set to boost investment between the UK and the Middle Eastern country.

Financial Secretary to the Treasury Mel Stride has signed a Protocol to update our double taxation convention (DTC) with Israel.

The Protocol will facilitate investment in Israel by UK companies, including a reduction in the rates of Israeli tax payable on dividends paid from Israeli companies to the UK. Israeli investors into the UK will benefit from the same reductions on UK tax. It also introduces modern anti-avoidance provisions so that only companies engaged in genuine business activities can benefit from the treaty, and allows for the exchange of information between the UK and Israel.

Mel Stride said: “This agreement will facilitate UK investment into Israel by removing tax barriers to cross-border trade. It will also provide important protections against those who seek to use the treaty for tax avoidance purposes.”

Administrators appointed to Patisserie Valerie KPMG has been appointed as administrators to Patisserie Holdings plc. Patisserie Holdings plc is a leading café and casual dining group with over 200 stores across the UK. It operates under five different brands, including Patisserie Valerie, Druckers Vienna Patisserie, Philpotts, Baker & Spice and Flour Power City. The company employs in excess of 3,000 staff.

The joint administrators will continue to trade in 121 stores while they assess options for the business, including exploring the possibility of a sale as a going concern. The administrators have retained the management team under Steve Francis, CEO, to assist with this process. However, a total of 70 stores and concessions will close, which will regrettably result in a significant number of redundancies. The joint administrators will provide further details regarding those outlets which will be affected by closure in the next 24 hours.

4

Three-point plan needed to avoid another Carillion payment practice scandal

●● Stamp out poor payment practices ●● Three-point reform plan

Strengthening the Prompt Payment Code, adopting project bank accounts, and assigning non-executive directors for the supply chain are vital reforms needed to protect small suppliers against another Carillion payment practice scandal. The Federation of Small Businesses (FSB) is urging the government to implement a threepoint plan to stamp out poor payment practices running rife in the UK. The three-point reform plan includes: ●● The Small Business Commissioner should use his new powers to

strengthen the Prompt Payment Code. This includes introducing tougher penalties for those companies that break the rules. ●● Non-executive directors responsible for payment practices and supplier relationships should be appointed to the boards of big companies. ●● Project bank accounts should be adopted in all major public sector contracts, with proper parliamentary accountability to ensure their use.

FSB National Chairman Mike Cherry, said: “The collapse of Carillion was a watershed moment that brutally exposed the shocking ways that some big businesses treat their suppliers.”

HONG KONG

No plan to change property measures in Hong Kong The Hong Kong government has announced that it has no plans to change the property measures or the loan-to-value ratio despite the recent drop in property prices, according to Secretary for Financial Services and the Treasury James Lau. Mr Lau said the government has implemented special measures James Lau

on the stamp duty, while the Hong Kong Monetary Authority has also introduced counter-cyclical measures for property mortgage loans.

Mr Lau explained: “We have currently no plan.” And he continued to comment that there is no timetable for the implementation of these measures.

He said the government will closely watch the supply of flats and property prices, as well as the macroeconomic environment and the local economic situation.

“Based on the combination of these factors then, we will be monitoring the developments and see what will be the next step.”

ISSUE 103 | AIAWORLDWIDE.COM

News CORPORATE TAX

Corporate tax remains a key revenue source despite falling rates worldwide ●● Statistics from 100 countries worldwide ●● Corporate tax is significant source of global tax revenues

Taxes paid by companies remain a key source of government revenues, especially in developing countries, despite the worldwide trend of falling corporate tax rates over the past two decades, according to a new report from the OECD. A new OECD report and database, Corporate Tax Statistics, provides internationally comparable statistics and analysis from around 100 countries worldwide on four main categories of data: ●● corporate tax revenues; ●● statutory corporate income tax (CIT) rates; ●● corporate effective tax rates; and ●● tax incentives related to innovation.

The new OECD analysis shows that corporate income tax remains a significant source of tax revenues for governments across the globe. In 2016, corporate tax revenues accounted for

13.3% of total tax revenues on average across the 88 jurisdictions for which data is available. This figure has increased from 12% in 2000.

Corporate taxation is even more important in developing countries, comprising on average 15.3% of all tax revenues in Africa and 15.4% in Latin America & the Caribbean, compared to 9% in the OECD. Corporate tax revenues have also held up when considered as a percentage of GDP, where the average share increased from 2.7% of GDP in 2000 to 3.0% in 2016 across the jurisdictions included in the database.

The new OECD analysis shows that a clear trend of falling statutory corporate tax rates – the headline rate faced by companies – over the last two decades.

The database shows that the average combined (central and sub-central government) statutory tax rate fell from 28.6% in 2000 to 21.4% in 2018. More than 60% of the 94 jurisdictions for which tax rate data is available in the database had statutory tax rates greater than or equal to 30% in 2000, compared

New OECD report, Corporate Tax Statistics, provides data from around 100 countries

to less than 20% of jurisdictions in 2018.

The full report is available at: http://www.oecd.org.

SELF ASSESSMENT

Self assessment returns: unbelievable excuses and dubious expenses As the deadline approaches for submitting returns and paying tax for 2017 to 2018, HMRC has revealed some of the most bizarre excuses it has received for people failing to complete their selfassessments on time: ●● My mother-in-law is a witch and put a curse on me. ●● I’m too short to reach the post box. ●● I was just too busy – my first maid left, my second maid stole from me, and my third maid was very slow to learn. ●● Our junior member of staff registered our client in self assessment by mistake because they were not wearing their glasses. ●● My boiler had broken and my fingers were too cold to type.

AIAWORLDWIDE.COM | ISSUE 103

As well as unbelievable excuses like these, every year HMRC also receives some dubious expenses claims for unconvincing items, like woolly underwear and pet insurance for a dog.

Some of the most questionable excuses it has received include: ●● A carpenter claiming £900 for a 55-inch TV and sound bar to help him price his jobs. ●● £40 on extra woolly underwear for five years. ●● £756 for my pet dog insurance. ●● A music subscription, so I can listen to music while I work. ●● A family holiday to Nigeria.

All these excuses and expenses were unsuccessful!

5

AIA

NEWS INDEPENDENT REGULATOR

AIA welcomes bold new vision set out in FRC independent review QUALIFICATIONS

Ethics at centre of new AIA professional qualification The AIA annual examiner conference took place on 18 January 2019 at the Crowne Plaza Hotel in Newcastle upon Tyne with the focus predominantly on the development of the new AIA Professional Qualification, changes to the UK’s Corporate Governance Code and changes to the IFAC International Code of Ethics for Professional Accountants.

The proposed new qualification places ethical behaviour at its heart.

Public trust in the profession has been eroded by widely publicised collapses in companies such as Carillion. The new AIA examinations will aim to counteract this perception.

Professor Stuart Turley, AIA’s Chief Academic Co-Ordinator has been working on the test design for the new qualification. He commented: “The design of the new qualification is moving from choices concerning the syllabus and structure of examinations to the development of the materials needed to launch its implementation.

The conference has provided a timely opportunity to discuss best practice relating to setting the assessments for candidates, particularly regarding objective testing, which is a new feature for the Foundation level examination for the Association.”

6

The Independent Review of the Financial Reporting Council (FRC) led by Sir John Kingman published its report to government on 18 December 2018.

The review recommends that the FRC be replaced with an independent statutory regulator, accountable to Parliament, with a new mandate, new clarity of mission, new leadership and new powers. The new regulator would be called the Audit, Reporting and regulation with a statutory underpinning.

Governance Authority (ARGA) and will “The report makes extensive and have a different culture and statutory fundamental recommendations to objective to serve the interests of users improve the regulation of audit in the of accounts. It is anticipated that ARGA UK and AIA looks forward to working will also act to promote competition in with the government and new Audit, the audit market.

Reporting and Governance Authority Sir John was asked by the Secretary of to implement the conclusions of this State for Business, Energy and Industrial independent review.”

Strategy (BEIS), Greg Clark, in April to The Independent Review of the FRC lead a root and branch review of the FRC. The report sets out 83 recommendations. report comes as the CMA publishes its interim findings on competition in the Business Secretary Greg Clark said market and the government announces that the independent review “proposes the next steps in improving standards of extensive and fundamental reform” UK audit market with a new independent for the regulation of audit, corporate review into audit standards. The new reporting and governance. independent review will consider In addition, Sir John also published standards being delivered by UK auditors his response to the request to consider and what more can be done to make whether there was any case for change them more effective and reputable, in the way in which audits are currently and what the standards and procured, and audit fees and requirements should be for scope are set, particularly for the UK audit profession in the major companies of public future. It is also tasked with interest. recommending what more AIA Chief Executive, can be done to ensure audits Philip Turnbull said: “AIA meet public, shareholder and welcomes the publication of investor expectations. the independent review of the The report of the Financial Reporting Council Independent Review is led by Sir John Kingman, available from www.gov.uk. which sets out a bold vision of Sir John Kingman ISSUE 103 | AIAWORLDWIDE.COM

AIA News COMMUNITY SUPPORT

CHINA

Share your financial and professional expertise with schools in England

AIA signs cooperation agreement with Jinan University

In acknowledgement of the skills and experience of our members, AIA is delighted to partner with Governors for Schools to bring those wishing to share their financial and professional expertise to schools in England.

Schools across England need people with financial expertise to lend their time and support as school governors. In a

time of decreasing budgets and growing complexity of funding streams the need for effective financial planning and probity has never been more important to schools across the country. AIA members may be ideally placed to support education in their local communities through helping ensure schools have an excellent understanding of their financial situation, the value being added by the money being spent, and helping ensure midterm plans are in place to safeguard the school’s finances for future years.

Please visit the website www.governorsforschools.org.uk for further information and to apply to become a school governor and help drive school improvement in your local community.

GREECE

AIA becomes a recognised CPD provider in Greece The Association of International Accountants (AIA) has been approved by the Hellenic Accounting and Auditing Standards Oversight Board as a professional body for the provision of seminars under the Continuous Professional Education program for the statutory auditors/accountants as outlined in Article 12 of Law 4449/2017.

HMRC

AIA members invited to join HMRC’s agent forum All tax agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC Online Customer Forum where you can interact with other AIAWORLDWIDE.COM | ISSUE 103

agents and HMRC experts to discuss topical issues and processes.

You can register for the Forum at https://online.hmrc.gov.uk/ webchatprod/community/forums/list. page.

AIA has signed a cooperation agreement with Jinan University Education College, Guangzhou, People’s Republic of China to promote international accounting within Guangdong province.

The agreement was signed by Professor Zhang Hong, Vice President of Jinan University and Les Bradley, AIA President, in the presence of David Ould, Deputy General Consul of the British Consulate in Guangzhou, along with representatives from Jinan University’s International Exchange and Cooperation Office, heads of various departments of the College of Education, and teachers and students from the School of Education.

Following the signing of the cooperation agreement Vice President, Zhang Hong and AIA President, Leslie Bradley jointly unveiled the AIA International Accountants Training Centre in Jinan University’s School of Education.

AIA President Les Bradley commented: “AIA is a truly global membership body. We have members in a wide variety of business sectors representing some of the world’s most influential organisations. As a forward thinking, proactive, association we are always looking at opportunities to take our qualifications to new students.”

7

ACHIEVE

Achieving your goals with AIA Here we speak with Arthur Kaliisa, an AIA student who is taking full advantage of the AIA’s interactive distance learning platform, Achieve, and look at how membership has helped AIA Fellow Ma Yuping grow his private equity and investment firm in China.

A

rthur Kaliisa provides insights into how and why the AIA, and specifically the Achieve programme, works so well for a committed student trying to balance a busy professional and private life. Arthur currently works for the Qatar Airways Group QCSC as a business finance officer.

First and foremost, what attracted you to study with the AIA?

I was referred to the AIA by Dr Jeff Wooller, when I was studying for my professional exams with an alternative provider. I was struggling due to a lack of support and limited recommended study materials.

After making initial contact with the AIA, I quickly realised it was the association for me as it could offer a cost-effective study route with a strong focus on both students and customer service.

8

why did you choose to use the Achieve programme and how has it helped?

The Achieve personal study planner provides the structure that I need to continually focus on my studies, and the mock exam provides much needed exam preparation.�

The work I do is demanding, so without a wellstructured study programme it is extremely difficult for me to stay focused. The Achieve personal study planner provides the structure that I need to continually focus on my studies, and the practice questions and mock exam, which mirrors the actual exam, provide much needed exam preparation. The feedback from the e-tutors has also been very useful in terms of knowing what the examiners want and how to answer the exam questions.

what advice would you give to others thinking about joining AIA and studying on Achieve?

Go for it! The support I have received from the team at AIA has been first class. My personal circumstances changed between exam sittings due to a work relocation, but this has not had any impact on my studies. AIA quickly arranged

ISSUE 103 | AIAWORLDWIDE.COM

ACHIEVE for my exams to be moved from Uganda in November 2017 to Qatar in May 2018. Once I had moved, it was apparent that I can apply the technical knowledge and skills learnt through the AIA and transfer them around the world.

What is the most challenging task or project that you have undertaken in your role, and how has AIA helped you with this?

The overall role is challenging as it requires a full understanding of the entire outstation operation. The role covers financial accounting, treasury, accounts payable, accounts receivable, operations, risk management, taxation and compliance issues. I also provide relief to the other finance units within the company, travelling to other countries and supporting the finance function to enable business continuity.

The AIA professional accountancy qualification has introduced me to most of what I do at work today. I put into practice all that I am studying in my professional qualification and apply IFRS and other concepts in my line of work, making me more effective.

More generally, how does the AIA professional accountancy qualification and membership assist you in your daily role and responsibilities?

Primarily, it helps me meet the Qatar Airways competencies required of its staff: ●● Customer first: I must give the internal customers the same promise I make to the external customers. ●● Personal effectiveness: An understanding of time management is a key feature in the AIA professional accountancy qualification. I must prioritise my work to be effective. ●● Driven to deliver: I motivate myself daily to deliver on my promises. This is also evident while studying from the Achieve programme, where I must find time and motivation to read and study, even when I don’t feel like it. ●● Commercial focus: It is important to understand and appreciate all the facets of the business and organisation and how they impact on both the top line and bottom line.

Management accountants are now required to provide instant feedback and more support, and should engage more with commercial and operational teams. ●● Upholding standards: The best way to do this is to be a member of the AIA professional accountancy qualification, which demands that students and members conduct themselves to the highest standards of professional practice and ethics. ●● Inspiring leadership: A good leader plans his succession, while also building capacity for business continuity and delegating work to subordinates. It also includes coaching colleagues on how to be effective and efficient and deliver the set KPIs. AIAWORLDWIDE.COM | ISSUE 103

How has studying with the AIA helped you?

Throughout my time studying with the AIA, I have been able to develop my skills and apply them in my work. In my current role, it is a prerequisite that candidates are professionally qualified or are pursuing a professional qualification and I am happy to be doing that through the AIA. This is Arthur’s story, but it could be your story too. It is never too late to join the AIA and the Achieve programme. Enrol now to start your preparations for the upcoming May 2019 programme. For further information, contact the AIA Study Support Team by emailing: achieve@ aiaworldwide.com. ●

Profile: Ma Yuping Ma Yuping is Chariman of the Fengyang Foundation, a private equity and investment company based in China.

He joined the AIA in 2008, becoming an Associate member in 2012 and a Fellow in 2018 and he credits much of his success on the strong foundations he gained during his accountancy training. This enabled him to obtain an international business perspective, as well as exceptional knowledge of all the fundamental accountancy and finance skills.

Yuping was presented the AIA’s Outstanding Contribution to the Acccountancy Profession in 2018 in acknowledgement of his business skills and promotion of the AIA in China. Through his investment firm, Yuping has supported over 200 companies, ranging from multinationals to domestic start-up companies. He has a particular interest in new technologies and automation products and invited an AIA delegation, including AIA President Les Bradley to visit one of the investment firms, Ofu Electric, whilst on a recent trip.

Ofu Electric is a high-tech business that provides electrical components and solutions to its vast customer base of international companies such as Purcell and Siemens. Investment has allowed Ofu Electric to embrace new digitalisation and automation technologies, allowing it to expand and deliver high quality goods rapidly to market.

Yuping believes that industrial transformation across China will bring about many investment opportunities both at home and internationally.

His background has ensured that his investment company closely follows principles embedded into AIA membership such as due diligence, ethics and risk assessment, as well as comprehensive financial skills that have ensured that his investment firm can support businesses, generate new opportunities and develop market leading products.

Ma Yuping’s outstanding contribution to the accountancy profession led to AIA’s recognition

9

STUDENTS

10

ISSUE 103 | AIAWORLDWIDE.COM

STUDENTS

Exam technique: narrative answers We examine how exam technique, time management and planning can help you achieve your full potential.

E

xam success is as much to do with good exam technique as it is to do with good technical knowledge.

This article, the first in a series of exam technique articles, focuses on the time management and planning aspects of approaching narrative questions.

The article is written with the Financial Accounting 3 (Paper 13) in mind but many of the issues discussed are generic and will therefore apply to all papers at all levels. Most of these issues are not new. Indeed, the examiner regularly refers to such issues, within the context of Paper 13, in the exam advice issued following each exam sitting. However, the fact that they are referred to regularly means they reappear consistently in exam scripts and suggests that some candidates are simply ignoring the advice. Candidates at all levels should always read any exam advice provided by AIA based upon Examiner’s Reports – and the sooner candidates do this in their revision process the better. The Exams Advice is published in the “Document Library” of the website and can be accessed by all candidates.

Most exam papers contain questions requiring a mixture of narrative and calculations in the answers. The narrative requirement appears to present the most difficulty to candidates so the advice outlines a suggested exam strategy that candidates can employ when faced with a question requiring this form of answer.

Papers vary in terms of the proportion of the marks given for an essay or for a discussion or for the provision of advice. Therefore, you

AIAWORLDWIDE.COM | ISSUE 103

When writing narrative answers, you must exercise some control and resist the temptation to begin writing immediately, to avoid rambling and incoherent answers.”

should make sure you know the approximate percentage of the marks each paper gives for questions requiring narrative answers. For example, approximately 30% of Paper 13’s marks will be for a narrative answer. If you ignore this requirement and concentrate your exam time on those questions requiring only calculations, you are effectively trying to gain 50% (the pass mark) by attempting only 70% of the paper. This has the effect of increasing the required pass mark to 71.4%. If you do this, you are making it much more difficult to pass the exam.

Time management

When writing narrative answers, you must exercise some control, be self-disciplined and resist the temptation to begin writing immediately. Over enthusiasm to “get something down on paper” often results in rambling, irrelevant and incoherent answers which gain few, if any, marks. Certainly not enough to pass.

The starting point, as with any answer to any question on any paper, is to calculate how much time to spend on the answer. This is very simple. The available time is 180 minutes and there are 100 marks available. Each mark should therefore take no more than 1.8 minutes (180/100) to achieve. So, if you are faced with a five mark question, you should spend no more than nine minutes (5 x 1.8) trying to answer it.

In addition, where a requirement is broken down into a number of sub-requirements, calculate the amount of time you need to be spending on each separate requirement. Don’t forget that the 1.8

11

STUDENTS minutes per mark includes planning time. It is therefore a good idea to write down the finishing time per requirement on your question paper to ensure that you do not overrun.

Once you have allocated your time, make sure that you are ruthless with your time allocation. Do not be tempted to over-run on your time allocation at the expense of another question. It is well known that the first few marks of any question are the easiest to gain, whereas the last few marks are the most difficult. So, if you have 15 minutes left in an exam and have one question yet to attempt. It is far wiser to spend that time trying to answer a new question – and possibly picking up some of the “easy” marks – than it is to spend the time trying to finish another question and gaining few if any of the “hard” marks.

Timed question practice is the key to success.

As you move closer to the real exam, build up the amount of timed question practice in your revision schedule to develop this key examination skill.

Planning

Once you have calculated the time to spend on a question (as above), the first one or two minutes should be spent planning your answer. There should be four steps to this as follows: 1. Essay plan: Read the scenario slowly and carefully. Try to think: “What is the question really about?” Write the heading “Essay plan” on a sheet of paper. This shows the examiner that this is part of your workings and that you have tried to be professional and rigorous in your approach to your answer. Also, if you run out of time and don’t complete step four below, it shows the examiner the areas you would have discussed had you not run out of time. This can only be of benefit to your mark.

Underneath the heading “Essay plan” write down every issue you can think of relating to the topic and the scenario. Each issue should be described in only one or two words or phrases and no more. Some people write these issues down in a circle whilst others produce a simple list. You can do this in any form you find most useful.

2. Double check: Read the question and scenario again and: a. delete from your plan any issues you think are irrelevant to your answer; b. link together any issues which may be similar; and c. add any new issues, if you can think of any, to your plan and incorporate them.

3. Structure: Look at your

12

plan and number the issues in the order you will write about them in your answer.

Once you have allocated your time, make sure that your are ruthless. Do not be tempted to over run on your time allocation at the expense of another question.”

4. Delivery: Begin writing your answer by discussing each point in turn. Read the command word in the question. If the question asks for a report, make your answer look like a report. If the question asks for advice to be given to, say, directors then produce a heading which states “Advice to directors of…”

Advantages

Such a structured approach allows you to demonstrate that you have the requisite skills to act as a professional accountant. The above strategy has two distinct advantages: ● When writing, you can concentrate your mind solely on the issue you are writing about and your mind won’t be wandering and trying to think at the same time about what you’re going to write about next. The latter often results in rambling, irrelevant and incoherent answers. ● Your answer will be concise, will stick to the point and, as a result, is more likely to get you good marks.

Practise

During your revision periods you should repeatedly practise the first three steps shown above. Use narrative questions from past exam papers and check your plans are on the right track by comparing them with the examiner’s model answers. However, at this point an important issue arises. Some candidates may believe that they have to produce an answer which is exactly the same as the examiner’s model answer. This is NOT the case. To pass the exam, you do not have to produce the same points as the examiner; although the points do of course have to be relevant to the topic and to the scenario in the question.

As you review your answer, work on the basis that there will be one mark available for each relevant welldeveloped point that you have made as a guide to how well you have performed.

Conclusion

Do not ignore the narrative sections of exam questions since it is very difficult to pass by focusing on the numbers alone. As you become more comfortable with the technical aspects of your studies, start to develop your exam technique skills, through time question practice and answer planning. If you can practise these techniques, you will be better equipped to put these skills into practice in the real exam. ● ISSUE 103 | AIAWORLDWIDE.COM

TECHNOLOGY

14

ISSUE 103 | AIAWORLDWIDE.COM

TECHNOlOGY

Top predictions for 2019 From artificial intelligence to 5G, Damon Anderson asks what technological developments accountants can expect in 2019.

Damon Anderson Director of partner and product, Xero

2

019 is the year of Bladerunner: the setting for the original Ridley Scott movie in which Deckard, assassinfor-hire played by Harrison Ford, hunts androids, drives flying cars and skypes his synthetic girlfriend. A freelancer in lucrative demand at the mysterious Tyrell Corporation, Deckard never does his taxes, despite the advanced technology that is evident in the film.

But as we approach 2019 for real, what technology can accountants expect?

1. Digital VAT returns

As part of the UK’s drive towards a digital Britain, businesses above the £80k VAT

AIAWORLDWIDE.COM | ISSUE 103

threshold will need to file their tax through HMRC cloud platforms. This will mean fewer accounting errors, and more time for accountants to advise clients.

Highlighting the need for change, Xero’s research found that one in five accountants still use paper ledgers; and in November 2018, one in four small business owners hadn’t even heard of Making Tax Digital.

The adoption of HMRC’s initiative by 1.1 million small businesses from April 2019 will spark the beginning of the end of traditional tax submission processes and paper-based management for a range of businesses. To help, Xero has created Dexter the Digital Tax Advisor, an animated accountant advising businesses on how to file

Author bio

Damon Anderson is director of partner and product at Xero. He is an international leader in fintech, with over 15 years’ experience delivering cutting-edge digital marketing and payments technology.

His team works with thousands of accounting and bookkeeping partners to help them make the most of digital transformation.

15

TECHNOlOGY

their tax digitally when Making Tax Digital for VAT happens in 2019.

The move to cloud-based financial management is expected to usher in a new era of smarter businesses and smarter accountancy, and also elevates the role of the accountant from number cruncher to more high-level business advisor.

2. Artificial intelligence

Artificial intelligence (AI) will increasingly inform digitisation and smarten business in 2019. Thanks to advances in cloud technology, small businesses will also be able to access AI and machine learning, the algorithms enabling computers to wise-up.

Examples of small and medium sized businesses (SMBs) already deploying AI include The Hoth, which uses machine learning-powered billing, and Passage AI, which uses AI to build intelligent chat-bots. But for the full potential of AI to be realised, we’re going to need a faster internet. Enter 5G…

3. 5G

2019 will witness the gradual roll-out of 5G, the next level of superfast connectivity and data storage. With 5G being tested throughout 2018 and with Samsung, LG, Sony HTC and other phone manufacturers working with chip manufacturer Qualcomm to bring out 5G-ready devices in 2019, 5G’s infancy has begun.

5G networks are predicted to be up to 100 times faster than current networks. This increased speed will lead to accounting firms using machine learning and AI to perform audits and more complex tasks, enabling accountants to crunch data faster and supply consultancy services.

Accordingly, 2019 might also be the year when accountants move away from the billable per-hour model to reflect their broader business role.

4. Connected clouds

As 5G and cloud adoption gather pace, computer companies will be able to focus on a hybrid cloud

16

The world of work must humanise the face of AI and ensure that the technology will inform human processes, rather than remove them.”

approach in which public and private clouds are used together by one business. We are already seeing the impact of standard cloud technology in accountancy, in which cloud-based platforms enable seamless connections between clients and customers, and from any location.

Businesses will also begin to expect more from their cloud accounting software, with verticalspecific cloud platforms with business intelligence software built into them. This will enable accountants to access deep and specific data on the move, allowing them to adopt enhanced decision making.

5. Internet of things

The internet of things (IoT) revolves around devices connected to the internet which are able to share information with each other with minimal human intervention. Increasingly reliant on AI, neural networking (edge computing) will allow tech-savvy accountants to access real time transactional data and operations, to make better risk assessments.

The role of auditors could also change: IoT will create much more data, requiring enhanced monitoring and uninterrupted auditing. In 2019, expect to see auditors become data analysts, as edge computing plays a greater role in data storage, and IoT boosts budgeting accuracy, cost planning and forecasting.

As all this exciting technology develops, the world of work must humanise the face of artificial intelligence and ensure that the new technology informs human processes rather than removing them.

Business and cutting edge technology look set to become even more entwined in 2019, but what’s for certain is that staying “human” (as we have with Dexter the Digital Tax Advisor) will remain at the heart of the best technolgical developments. ● ISSUE 103 | AIAWORLDWIDE.COM

HUMAN rESOUrCES

Attracting and retaining talent Jennifer warawa explains how businesses can win the war to attract and retain the accountants of the future.

Jennifer warawa Executive VP of Partners, Accountants and Alliances, Sage

18

ISSUE 103 | AIAWORLDWIDE.COM

W

HUMAN rESOUrCES

ith job growth expected in the professional services industry, accounting practices are under pressure to compete in the war for talent, working hard to attract new, top-notch professionals – and also to keep their current employees, a charge that’s proven difficult.

Indicative of the new wave of opportunity in the industry, professional services such as accounting ranked among the highest in terms of staff turnover in 2017, according to an examination of LinkedIn data drawn from the site’s 0.5 billion international users.

As fear of a talent shortage looms, employing the right people with the right mix of skills, and providing a culture that allows them to thrive, will be the key to the success of any accounting firm. Here are three key steps that accounting firms can take to attract and retain the industry’s top talent.

Author bio

Jennifer Warawa is Executive VP of Partners, Accountants and Alliances at The Sage Group. She has been responsible for leading Sage’s portfolio of accounting products, including launching core cloud accounting technology.

1. Acknowledge industry changes with both current employees and candidates

Openly acknowledging and embracing changes in the accounting profession can help firms to attract and retain the next generation of top accountants. Now, accounting professionals serve as both a financial resource and a trusted strategic advisor. It’s officially time to say goodbye to the stereotype of accountants as desk-bound number crunchers. With this in mind, it’s important to position your firm as one that understands and supports the accountant’s changing role.

In communication with both current employees and job candidates, it’s essential to be transparent about how the profession is evolving. Your employees may be apprehensive about the redefinition of their role, so opening the door for candid conversations can help to clear the air of any misconceptions and will establish a relationship built on trust.

Make sure candidates have a firm understanding of the skills needed to thrive as a modern accountant and dedicate significant time to discussing those elements of their job function that are newer to the industry. What’s more, by discussing with candidates how technological innovation has transformed the industry, accounting firms will demonstrate that they have adopted a technologyfirst mind set, attracting digital savvy employees and putting the firm on a par with their blue-chip competitors. In a world of digital dependency, this will go a long way towards attracting and retaining digital-first colleagues.

2. Define success and equip your staff with the tools to get there

Today, accountants need a wide range of skills to succeed, with more emphasis on proficiency in personal communication and technology than ever before. New skills such as presentation, project management and relationship building are gaining prominence in accounting. Accounting professionals are coming to terms with what it takes for an accountant of the future to be successful, carefully evaluating how they fit into the bigger picture of this newly redefined industry.

AIAWORLDWIDE.COM | ISSUE 103

Employing the right people with the right mix of skills, and providing a culture that allows them to thrive, will be key to the success of any accounting firm.”

19

HUMAN RESOURCES One of the most effective ways to attract and retain top talent is to provide a clear career development and training path, such as the route to partnership. A challenge many accountancy firms come across is that mid-level employees often get disillusioned as they progress. With becoming a partner being seen as the ultimate goal, providing colleagues a clear and achievable route to this milestone – and carrying out regular reviews to monitor their progress along the way – could be the golden ticket to retaining valuable team members.

Once you clearly define an accountant’s success, see to it that your employees have access to the tools needed to get there. For example, with technology adoption taking place at a faster rate than ever before, the accountants of the future will be much more comfortable with technology than their predecessors. Invest in retraining to help employees feel confident about doing business with new technologies like artificial intelligence and bots. Alternatively, for those more comfortable with technology and delivering financial insight as opposed to building client relationships, consider developing a mentor programme, pairing individuals with those who seek guidance. In the hiring process, be particularly mindful of the varied skill set needed to succeed, and consider looking outside of the standard talent pool – beyond the traditional accountancy qualifications – to build a firm with the right mix of expertise. Ultimately, if organisations don’t set their employees up for success, and outline exactly how they can progress, they risk losing them to firms that do.

3. Ensure your workforce feels valued and motivated

The key to success for any accountancy firm will be employing the right people, with the right mix of skills, and providing a culture that allows them to thrive. Focus on bringing digital knowledge and expertise into the practice, along with strategic and critical thinking, and create the right company culture to deliver an engaging employee experience.

To promote positive company culture, communicate openly with employees to get a sense of what would motivate them in the workplace. Almost half (47%) of respondents to a Sage workforce survey said they had never been asked by their employer how they can improve their work experience. Meanwhile, 66% of respondents to the same survey believe being valued and recognised is the most important aspect of employment. What’s more, positive workforce experiences are important to 92% of employees, which highlights how imperative it is that firms take this into account if they want to hire the best and brightest – and keep them.

By providing clear development opportunities, focusing on the needs of employees and looking to recruit a new range of skills, firms can put themselves in the best position to attract, retain and develop the right talent, now and in the years to come. ●

20

ISSUE 103 | AIAWORLDWIDE.COM

CRIMINAL ACTIVITIES

22

ISSUE 103 | AIAWORLDWIDE.COM

CRIMINAL ACTIVITIES

The stain of money laundering What can accountants do to battle financial crime and money laundering? Tom Townson investigates.

Tom Townson Partner, head of financial crime, Grant Thornton

U

nless you’ve been living on an island over the past couple of years, it won’t have escaped your notice that financial crime and money laundering have been very much at the forefront of the legislative agenda in the UK and across Europe.

The UK statute book is full of fresh-out-of-thebox legislation to help make sure that UK Plc is an inhospitable environment for criminals and the proceeds of crime. Whilst the recent Financial Action Task Force (FATF) report on the UK’s financial crime framework is overwhelmingly positive, the Paradise Papers, Panama Papers, Danske Bank, 1MDB and other recent “scandals” suggest that there is still more work to do.

The Unexplained Wealth Order

One newly created “investigation tool” available to “enforcement authorities” is the Unexplained Wealth Order (UWO) created by the Criminal Finances Act 2017, amending the Proceeds of Crime Act 2002. This tool allows authorities to challenge, in certain circumstances, an individual’s source of wealth when it appears to be out of kilter with their financial circumstances.

The one high profile example we have of the use of this tool was recently publicised in the UK press. An Azerbaijani National (in the UK because AIAWORLDWIDE.COM | ISSUE 103

Author bio

Tom Townson is the partner leading the financial crime team for Grant Thornton.

He has 20 years’ experience as a practitioner and as a consultant to financial service firms in the crime arena covering fraud, anti-money laundering, sanctions and conduct issues.

of the Wealthy Investors Visa Scheme) with West End property, a Gulfstream Jet and a healthy spending habit at Harrods has been challenged, through the High Court using a UWO, as to the source of wealth that enabled their lifestyle. Of course, it is complicated, and this individual may well be able to justify the source of their wealth, but it will certainly be interesting to see how this particular case will turn out.

Non-governmental organisations (NGOs), such as Transparency International and Global Witness, are very enthusiastic about UWOs and have been holding the UK authorities to account over how infrequently the tool has been used thus far. For my part, I see enthusiasm on the part of the authorities to use UWOs and it is the stated intention of the National Crime Agency (NCA) to use them more widely. My guess is that we can expect to see more high-profile examples of the use of UWOs in the coming months.

The role of accountants

You may well ask: how is this relevant to accountants and the work that you do? I suppose the answer might lie in how you would feel if a customer of yours was subject to a high profile Unexplained Wealth Order? What would it say about the adequacy of your client take-on procedures if a customer’s activities and the

23

CrIMINAl ACTIVITIES

source of their wealth was something about which you were completely unaware?

It’s a sobering thought. It’s important to remember that accountancy and the other professions are not untainted by involvement in financial crime and, without appropriate vigilance, can become enablers of it. The antimoney laundering rules apply to accountants and plenty of industry and general guidance is available.

The topic of “professional enablers” and their involvement in facilitating financial crime has recently become newsworthy with the publication of the UK’s Serious and Organised Crime strategy. That document describes the Home Office’s intention to “target the complicit, negligent or unwitting professional enablers who are often key to moving illicit funds through the UK and global financial systems” (see bit.ly/2yMH7c3); and trails the creation of the National Economic Crime Centre which will facilitate a so-called “whole system” approach to combating economic crime.

A good sign that your financial crime framework is functioning is when you can provide evidence of your willingness to reject clients on the grounds of risk.”

A profession on notice

It’s safe to say that the profession is on notice that regulators and supervisors will be increasing their focus on accountants who fit the “complicit, negligent or unwitting” description. So how can you avoid becoming one of those unwitting

when do you need to act?

1. Your client has no valid legal or business purpose for a given structure and/or is unwilling to share previous legal or tax advice that supports the creation of a particular enterprise.

2. Your client is reluctant or unable to provide history and a full accounting for their source of wealth and funds.

3. Your client has an excessive and irrational interest in privacy, over and above the norm.

4. Your client is reluctant to engage in customer due diligence (CDD) including enhanced due diligence (EDD), for instance they: ● don’t provide CDD at all; ● are evasive in providing documentation; ● provide documentation that is of a poor quality, is inconsistent and contradictory or which is not plausible; ● are uncooperative; ● regularly place you in time pressured “pressure cooker” situations which would appear to have been unnecessary or manufactured; and ● are hostile and easily (apparently) offended when asked to provide basic explanations.

5. Your client organises their affairs so that no one professional has a complete picture, for instance through: ● multiple intermediaries; ● cross border/offshore entities involved when not necessary; ● unnecessary overuse of professionals in a transaction; and ● structuring transactions in irregular ways.

24

professional enablers of money laundering that the authorities are so keen to identify?

At an organisational level, of course, fundamental to the management of your financial crime framework is the creation of a risk assessment. What professional services are you providing to what type of clients, through what channels and in which geographies? What are the financial crime risks involved across your business and what is your appetite for risk? What controls have you put in place to mitigate risk (particularly where you want to involve yourself in high risk activities)? What customer due diligence controls do you have in place to reallyknow-your-client that aren’t based on tick-box methodology?

There is plenty of information out there about the common money laundering typologies that might involve professionals (including accountants), so you should be able to assess whether the clients you are pursuing present a greater risk of being involved in some sort of financial crime.

Indicators of irregularities

A good sign that your financial crime framework is functioning is when you can provide evidence of your willingness to reject clients on risk grounds. It’s the kind of evidence that regulators often ask to see and which, in some jurisdictions, is required to be recorded and produced on demand. Firms which struggle to demonstrate a thorough knowledge of a potential client’s business dealings, source of wealth and who don’t screen clients for negative news can expect questions to be asked by regulators should they receive a visit. Setting aside the excellent commercially available screening and monitoring tools, you would be amazed at what information about which you might otherwise be ignorant can be gleaned with a Google search.

So, what are the kinds of indicators that you should be wary of when dealing with clients that might put you on notice that something irregular is going on? The box of the left shows some practical indicators that might mean you need to act. There are plenty of others, but none of these should be a surprise. At a more personal level, there are some very basic questions that you should ask yourself about the level of professional scepticism that you employ when dealing with your clients. Criminals will target professionals who have one or more of the following characteristics: ● They do what they’re told, without thinking. ● They don’t ask too many questions ● They will sacrifice their legal obligations for fees. ● They are desperate for fees. ● They believe that “the customer is king” no matter what activity they’re involved in…

Don’t be one of them... ● ISSUE 103 | AIAWORLDWIDE.COM

MANAGEMENT

Diversity in the boardroom Understanding the relationship between board diversity and performance can have important implications for companies, writes Princess Murefu-Bwanya.

Author bio

Princess Murefu-Bwanya is an associate lecturer and doctoral researcher at Northumbria University. She is currently undertaking a PhD looking at board structures of the FTSE 350. She has a strong interest in finance and, in particular, corporate governance.

AIAWORLDWIDE.COM | ISSUE 103

25

MANAGEMENT

“W

hen I’m sitting in that boardroom, my fiduciary responsibility is to the shareholders of that company – not social engineering. I can talk about diversity. But there ought to be a business case…” - Phred Dvorak (2008)

Why diversity?

One of the most significant issues facing modern companies is the issue of diversity and it is currently the subject of discussion of many researchers, public policies and codes of best practice. In the UK, the Higgs report (2003) investigated the role and effectiveness of nonexecutive directors and noted that directors at that time were drawn from a narrow pool of people. The report recommended that the necessary qualities for an effective board can be acquired from a variety of backgrounds and complementary perspectives. Consequently, one of the main arguments in favour of increased board diversity is that the effectiveness of the board should improve with a wider mix of skills, perspectives and backgrounds, and this in turn should lead to increased firm performance.

The case for diversity in the boardroom is mainly centred on two arguments: the ethical case versus the business case. There is a big debate between those who argue that companies should be diverse because it is “the right thing to do” and others who argue that diversity increases firm performance and enhances shareholders’ wealth. The ethical case emphasises the inequality associated with excluding groups of individuals on the board based on gender, race, age or other related characteristics. The business case for board diversity, on the other hand, proposes that diversity enhances the abilities of directors to perform their board functions, especially when engaging in complex problem solving, strategic decision making and monitoring managers.

The quote by Phred Dvorak at the start of this article is taken from his piece for the Wall Street Journal, “Some things don’t change: SarbanesOxley was expected to increase the number of minority directors. What happened?” It sums up the current debates that modern companies are facing in advancing the diversity agenda. That is, the board’s fiduciary duty is to the shareholders of the company; therefore, to advance the diversity agenda there must be a business case for it.

Lessons from the past

The issue of diversity has also grown in importance globally in the aftermath of various financial scandals, governance failures and the financial crisis. The issue of groupthink has influenced many corporate boards and executives, leading to various scandals such as those of Enron in 2001, Volkswagen in 2015 and Tesla in 2017. Groupthink involves members of a group avoiding conflict and concealing or discounting

26

information to maintain group cohesion, as was the case with the executives. Historically, corporate boards have been drawn from a narrow pool of people, which created the “groupthink” effect, where directors made decisions as a group with no one to challenge them or to different perspectives. The focus of corporate governance problems that has previously focused on conflicts of interests and allocation of resources in companies has greatly shifted. There is now a much wider focus on the skills, attributes and abilities of directors who serve on these corporate boards.

A board of directors with diverse members is expected to improve the effectiveness and decision making process of the board, and avoid the groupthink effect. Therefore, board diversity has become a pressing issue globally with several developed countries now requiring listed companies to advance and disclose their diversity practices. Despite board diversity becoming a significant issue in the governance of firms, the progress in many corporate boards is still relatively slow. For example, in 2012, the UK government put gender diversity in the boardroom at the top of its agenda; however, in that same year nine out of ten board roles went to men. This poses the question of whether the slow advancement of the board diversity agenda has been because it has been based on the ethical case. To what extent can the business case speed up this process?

Looking into the business case

Overall, there are three main reasons why board diversity can improve firm performance: ●● Diversity can promote a greater understanding of the market because the market itself has become diverse. This means board diversity can help companies to penetrate the market by matching the board to the stakeholders in the market. ●● The different attributes, skills and perspectives of a diverse board can increase innovation and creativity. ●● A variety of perspectives from diverse directors can enhance the decision making process of the firm by a better understanding of the business environment and of different alternatives in the process.

The majority of government considerations and prior research has placed greater focus on gender diversity; however, board diversity encompasses a wide variety of attributes. These can be broadly defined as the different attributes that may be represented by directors on the board, including age, gender, ethnicity, culture, religion, community representation, knowledge, educational background, professional background, independence, expertise, prior commercial, industry, career, life experience and technical skills.

Findings from a study on the FTSE 350

A recent study examining the link between board diversity of companies listed on the FTSE 350 and ISSUE 103 | AIAWORLDWIDE.COM

MANAGEMENT firm performance found that there was a business case for only three attributes of board diversity.

Firstly, the study finds that gender diversity on the board positively impacts financial performance. This suggests that the presence of women on boards makes boards more effective in their roles and enhances the decision making process. In addition, such a finding provides strong support for the propositions of the European Commission that noted the progress of greater gender diversity on boards has been slow.

It proposed that the European legislation should speed up this advancement so that 40% of nonexecutive director positions on boards in publicly listed companies are filled by women by 2020.

Secondly, the study finds that the variety in prior experience of directors positively impacts financial performance, suggesting that directors with diverse experience contribute positively to the board through their diverse perspectives and skills. Traditionally, corporate boards have been composed of directors with similar levels of experience and it has been assumed that higher levels of experience are more desirable. However, if directors all have similar levels of experience, the element of diverse perspectives enhancing the decision making process is lost.

Thirdly, the study finds that the networks and external directorships of directors positively impact financial performance and such a finding dispels the “myth” that directors with external appointments are overcommitted and too busy to effectively perform their roles. In contrast to this, it can be argued that multiple directorships produce higher quality directors who are more effective in their board roles. Multiple directorships are common in listed companies in the UK; and directors who occupy board positions in other firms are able to create valuable connections for themselves and for the company.

Conclusions

The relationship between board diversity and performance can have important implications for public policy.”

AIAWORLDWIDE.COM | ISSUE 103

Drawing on the business case, board diversity has numerous benefits. It can prevent the groupthink phenomena which has led to many corporate scandals and failures; and improve the effectiveness and decision making of a board which in turn improves financial performance.

Understanding the relationship between board diversity and performance can have important implications for both companies and public policy. If board diversity does not influence or impact board processes and firm performance, then the agenda for increasing diversity in the boardroom rests on the ethical argument and is a matter of public policy. If board diversity positively impacts board processes and firm performance, the business case for diversity can be strongly considered by directors and investors in advancing the diversity agenda and perhaps can accelerate the progress of diversity in boards.

There is still more work and research to be done in advancing the diversity agenda through unravelling attributes that create successful and effective boards. ●

27

Events FACE TO FACE

WWW.AIAWORLDWIDE.COM/EVENTS

UK 5 February 2019 Cyber Security Seminar The University of London, The Garden Halls, 1 Cartwright Gardens, London 18.30 to 20.30 7 February 2019 Cyber Security Seminar AC Hotel by Marriott, Salford Quays, Manchester 18.30 to 20.30

Ireland 2 April 2019 Ethical Accounting Conference AC Hotel by Marriott, Salford Quays, Manchester 9.00 to 4.00

5 March 2019 Wealth and Pension Conference Camden Court Hotel, Dublin 10.00 to 14.30

4 April 2019 Ethical Accounting Conference The University of London, The Garden Halls, 1 Cartwright Gardens, London 9.00 to 4.00

11 June 2019 AML and VAT Conference Camden Court Hotel, Dublin 10.00 to 14.30

* Please note change of venue for the London Events in 2019.

WEBINARS

15 February 2019 AML Compliance 11.30 to 12.30

1 March 2019 Finance Act 2019 11.30 to 13.00

26 March 2019 Insolvency Webinar 11.30 to 12.30

20 February 2019 Work, Health & Wellbeing 11.30 to 12.30

18 March 2019 Making Tax Digital 11.30 to 12.30

21 June 2019 Charity Accounts 11.30 to 12.30

Ethical Accounting Conference eight key issues to address before taking the decision to sell.

2 April 2019 | Manchester 4 April 2019 | London 9:00 to 14:00 Join AIA and guest speakers in April for our Ethical Accounting Conference.

Professional Ethics and Corporate Governance will take centre stage during the morning session with Peter Montagnon, Associate Director of the Institute of Business Ethics, discussing what we mean by business ethics and how it applies to professions such as accounting.

Peter’s session will be followed

by Edward Houghton, CIPD Senior Research Advisor for Human Capital and Governance, as he investigates the so-called “gig-economy” and rising pay inequality. He asks what role good governance can play in keeping the playing field level, fair and appropriate.

The afternoon session will focus on the impending Making Tax Digital (VAT) launch and Mergers and Acquisitions. The plan for Making Tax

28

Digital (MTD) was first announced in the Spring 2015 budget and is concerned with the digitising the UK tax compliance for VAT, income tax, and corporation tax.

Mark Purdue from HMRC will outline the progress made so far, how the various pilots have progressed, and the impact on VAT compliance as the new VAT submission protocols take effect.

The conference will conclude with an interactive session on mergers and acquisitions by renowned author and speaker, David Oliver. David will cover the common mistakes which many business owners make when pursuing a sale, asking why traditional valuations of a business are fundamentally flawed, why many business owners are looking in the wrong places to find a buyer and the

Additional benefits In addition to a highly informative presentation, delegates attending the Ethical Accounting Conference will also benefit from:​ ●● the opportunity to ask speakers direct questions and receive expert advice; ●● networking opportunities with peers; ●● 6 CPD units and a certificate of attendance; and ●● refreshments provided.

Book your place at this event by visiting www.aiaworldwide.com/events, or call us on +44 (191) 493 0282, quoting the reference below!

BOOK NOW: Manchester £95.00 | AIA members (CPD764) £125.00 | Non-members (CPD765) London £95.00 | AIA members (CPD766) £125.00 | Non-members (CPD767) ISSUE 103 | AIAWORLDWIDE.COM

Technical INTERNATIONAL

Accountants must seize the opportunity to drive effective enterprise risk management Professional accountants have a meaningful opportunity to enable more effective enterprise risk management (ERM) within their organisations, according to a report published

by IFAC (the International Federation of Accountants).

Businesses face rapid change and increasing uncertainty driven by a myriad of factors, including geopolitical events, volatile financial markets, technology developments, cybersecurity, data privacy concerns, and climate change. According to the report, professional accountants can play an amplified role within their organisations to identify, measure and mitigate emerging risks through robust ERM practices.

The report underscores the reality that risk management remains underdeveloped in many organisations.

A survey of mainly US based organisations, conducted by North Carolina State University and the American Institute of CPAs, found that less than 20% of organisations view their risk process as being integrated with

strategy and objectives, and 69% of organisations do not have a comprehensive ERM process in place.

To drive more effective ERM, management must draw upon the Chief Financial Officer and finance function to ensure risk management practices provide a holistic understanding of opportunity and risk linked to objectives and value creation.

“This is a particularly uncertain time for businesses as the global economy experiences heightened volatility and rapid change. In this environment, proper risk management will be increasingly important for organisations to ensure their resiliency and success over the long term,” said Kevin Dancey, IFAC CEO. “Professional accountants are well positioned to better serve the organisations they work for by enabling effective enterprise risk management that identifies both risks and opportunities for the business.”

CFOs and accountants with clear risk management responsibilities are in a better position to make individu-

ally and functionally greater contributions to risk management. The report identifies three ways in which CFOs and finance functions can enhance their contribution to ERM: ●● align risk management with value creation and preservation; ●● drive insights and enable decisions through provision of risk modelling and analytics, data governance and identification of organisational risk appetite; and ●● enable integration and interconnectivity by breaking down siloes across the organisation to share information.

INTERNATIONAL

technical advisors are developing a series of videos that will be released with the IES. These videos focus on professional accountancy organisations, accounting firms and accountants in business perspectives.

IAESB stakeholders and those involved in the provision, measurement or monitoring of CPD can expect to see IES 7 (Revised) in the first quarter of 2019, along with the support materials.

scepticism proficiency grows across jurisdictions, the IAESB has been focused upon addressing market demand for these competencies, skills and behaviours that are needed by both aspiring and current professional accountants.

Upcoming: IES 7 (Revised), Continuing Professional Development The forthcoming International Education Standard 7 (Revised), Continuing Professional Development, introduces a number of changes relating to the standard’s requirements and structure, as well as the explanatory materials.

Improving professional competence development and maintenance through CPD serves the public interest by enabling professional accountants to provide high quality services to clients, employers and other stakeholders.

Along with the IES, a range of implementation support materials are under development. Planned support includes resources on: ●● relevant and adequate CPD; ●● measurement approaches examples; and ●● CPD frameworks.

In addition, IAESB members and AIAWORLDWIDE.COM | ISSUE 103

New global education proposals enhance accountancy profession’s technology and scepticism skills The International Accounting Education Standards Board (IAESB) has released for public comment proposed changes to International Education Standards (IESs) on initial and continuing professional development to address information and communications technologies and professional scepticism skills.

As the demand for improved information and communications technologies (ICT) skills and professional

Enabling effective ERM will require accountants to employ various competencies, including strong leadership and interpersonal skills, and to commit to lifelong learning on risk management and emerging risk issues. In the coming decades, it will be critical to better integrate risk management into professional education and training for accountants, and to improve the relevance and quality of CPD.

Proposed Revisions to IESs 2, 3, 4, and 8 – Information and Communications Technologies and Professional Scepticism speaks to strengthening professional scepticism to improve the quality of financial reporting and auditing and developing competence to meet ICT’s disruptive potential. It also reflects significant stakeholder input, including findings from the IAESB’s prior consultation on future strategy and priorities, as well as insights from surveys, academic and professional literature, roundtables, in-depth interviews, webinars and additional outreach.

The IAESB is eager to hear from those providing accountancy education, such as professional accountancy organisations, public accounting firms

29

Technical and other employers, universities and education providers. It is also eager to hear from those who oversee professional accountants’ competence, including regulatory organisations and government agencies.

Comments are requested by 4 March 2019 and should be submitted via the IAESB website.

UK AND IRELAND FRC launches consultation on changes to third country auditors (fees) instrument The FRC has launched a consultation to seek views on the proposed changes to the Third Country Auditors (Fees) Instrument.

The regulatory regime governing third country auditors (TCA) is changing because of the UK leaving the EU. If there is no withdrawal agreement in place between the UK and the EU providing for an implementation period, the UK will apply the TCA regime to non-UK auditors that audit the accounts of companies from outside the UK that issue certain securities on a UK regulated market.

Section 1251 of the Companies Act 2006 provides the Secretary of State with a power to make regulations that require registered TCAs to pay periodical fees. This power has been delegated to the FRC and was most recently exercised by the Third Country Auditors (Fees) Instrument 2018. The Third Country Auditors (Fees) Instrument needs to be updated to reflect the legislative changes.

According to the FRC’s calculations and estimates on the expected levels of work going forward, it has been decided not to change the level of fees at this time.

The FRC seeks stakeholder opinion on this position and any other comments regarding the drafting of the Instrument.

FRC issues revised auditing standard and consults on guidance for quality bank audits The Financial Reporting Council (FRC) has issued an International Standard on Auditing accounting estimates and related disclosures, covering the audit of expected credit losses in banks and which reflects the increased importance and complexity of estimates in financial statements. The FRC strongly supported the development of this standard.

30

The FRC is also consulting on updates to its Practice Note on The audit of banks and building societies in the United Kingdom, an area where the FRC has called for improved quality. The consultation reflects findings from the FRC’s audit inspection work covering bank audits, which were covered extensively in public reports in June 2018.

Mike Suffield, the FRC’s Acting Executive Director of Audit and Actuarial Regulation said: “The UK strongly supports the development and adoption of high quality global standards for corporate reporting and audit, enabling the UK to attract global investment.

“Changes to accounting standards have increased the significance of estimates in financial statements. The new standard provides a comprehensive, principles-based approach to delivering audits of estimates and related disclosures to a level that meets the needs of users and protects the public interest.”

The revised standard (ISA UK 540): ●● reflects revisions to the underlying international standard, and addresses issues arising from evolving financial reporting frameworks, particularly the move to accounting for financial instruments on an expected loss basis which is of particular significance for banks; ●● ensures the quality of auditing of management estimates and disclosures in the UK develops to meet users’ needs, as financial reporting becomes more forward looking, leading to an increase in the volume and complexity of accounting judgments; and ●● requires better risk assessment and greater work effort on the part of auditors who will also need to apply a higher benchmark in assessing the adequacy of disclosures.

Early adoption of the new standard is permitted and is encouraged. It is effective for audits of financial statements for periods beginning on or after 15 December 2019.

The feedback statement and the impact assessment can be found at bit.ly/2HoZ7Aa. The consultation period on the Practice Note (PN 19) closes at 5pm on Friday 8 March 2019.

FRC consults on client assets standard

The FRC has launched a consultation to assess the effectiveness of the Client Asset Audit Standard (CASS Standard), which was introduced in 2015.

The standard was developed both to support the Financial Conduct Authority’s regulatory activity and oversight of the CASS sector, and to provide a principles based framework to strengthen audit quality in response to some high profile and well publicised failures.

Now that the standard has been used by auditors for three years, the FRC is seeking stakeholder feedback to determine whether further measures are needed to support audit quality in this area.

The standard was developed collaboratively with the FCA. The FRC now seeks input from any stakeholders who have an interest in the client assets regime, which holds trillions of pounds of assets and is of significant public interest.

In the consultation, the FRC is also seeking views as to whether it should seek to develop a monitoring regime to provide a mechanism for better assessing the quality of CASS audit work undertaken in the UK. Feedback is requested by 4 March 2019.

Snapshot of IAASA’s financial reporting enforcement activities in 2018 IAASA has published summary information of its financial reporting enforcement activities undertaken during 2018.

The primary function of IAASA’s Financial Reporting Supervision Unit is to examine the compliance of financial reporting of those listed entities coming within its remit with accounting standards.

In 2018, IAASA: ●● examined 39 annual and half-yearly financial statements; and ●● raised 164 separate matters with those companies.

As a result, 18 companies have provided 134 undertakings to improve their financial reporting in future years.

IAASA carried out four thematic examinations of aspects of companies’ financial reporting practices and published the results of those deskbased surveys.

The outcome of 14 financial reporting decisions reached in 2018 were published by IAASA in the year.

The Snapshot document may be ISSUE 103 | AIAWORLDWIDE.COM

Technical accessed on the IAASA website.

IAASA publishes ISA (Ireland) 540 (Revised December) 2018 and consultation feedback paper IAASA has published ISA (Ireland) 540 (Revised December 2018) Auditing Accounting Estimates and Related Disclosures and related conforming amendments to other ISAs (Ireland).

In August 2018, IAASA published its consultation on the Proposal to Revise ISA (Ireland) 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures.

The purpose of the IAASA’s consultation on this subject was to obtain the views of stakeholders with regard to IAASA’s proposal to issue a revised version of ISA (Ireland) 540 to reflect recent revisions to the international standards on auditing issued by the International Auditing and Assurance Standards Board (IAASB).

IAASA has noted the points raised in the responses to its consultation. It has published a Feedback Paper and the revised ISA (Ireland) 540 (Revised December 2018) Auditing Accounting Estimates and Related Disclosures, which are both available on the IAASA website.

IAASA finds that many companies fail to provide complete information on their revenue disclosures in the 2018 halfyearly accounts.

IAASA, Ireland’s accounting enforcer, has published the results of a desk-top review into the IFRS 15 Revenue from Contracts with Customers disclosures that companies included in their 2018 half-yearly accounts.

The review covered the annual accounts of 20 companies listed on Euronext Dublin (Irish Stock Exchange).

The document is available at www.iaasa.ie.

Background IFRS 15 Revenue from Contracts with Customers became effective on 1 January 2018 and replaces IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations.

IFRS 15 sets the accounting rules an entity must apply regarding the nature, amount, timing and uncertainty of its revenues.

IFRS 15 must be applied for annual reporting periods beginning on or after 1 January 2018. The 2018 half-yearly accounts were, therefore, the first AIAWORLDWIDE.COM | ISSUE 103

accounts that companies had to prepare and publish in which mandatory IFRS 15 information was required.

Key findings IAASA’s desk-top review of this subject identified that: ●● 15 of the 20 companies (75%) included in this desk-top review indicated that the adoption of IFRS 15 had no material impact on their revenue recognition practices; ●● seven companies (35%) did not explain the timing of their revenue recognition, i.e. whether revenue is recognised at a point in time or over time; ●● eight companies (40%) did not explain in the half-yearly accounts the nature and effect of the change in their revenue recognition accounting policy following the adoption of IFRS 15 compared to their revenue recognition accounting policy that was disclosed in their most recent published annual accounts; ●● nine companies (45%) indicated that revenue is recognised when control passes to the customer but these companies did not provide a description of the criteria applied to determine when control passes to the customer; ●● seven companies (35%) disaggregated revenue recognised from contracts with customers into just two categories, e.g. some of these companies disaggregated revenue on the basis of their two operating segments. It is difficult to determine whether the appropriate level of disaggregation of revenue was disclosed given the range of products and services that these companies provide and the variety of countries where they have operations; and ●● six companies (30%) did not refer to the disaggregation of the revenue in their half-yearly accounts.

For the examination of companies 2018 full year accounts, IAASA will engage with companies to improve compliance with IFRS 15 including, for example, disaggregation of revenue, disclosure of significant judgements and the identification of performance obligations by issuers.

IAASA reminds preparers, auditors and users of financial statements of the requirements of IAS 34 Interim Financial Reporting to disclose the impact of

new and amended financial reporting standards in half-yearly accounts more generally.

This reminder is particularly applicable to the disclosures in companies’ 2019 half-yearly accounts regarding IFRS 16 Leases.

ASIA PACIFIC MASB clarifies definition of ‘business’ and definition of ‘material’ The Malaysian Accounting Standards Board (Board) has issued: ●● Definition of a Business (Amendments to MFRS 3 Business Combinations); and ●● Definition of Material (Amendments to MFRS 101 Presentation of Financial Statements and Amendments to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors).

The amendments are word-for-word Definition of a Business (Amendments to IFRS 3 Business Combinations) and Definition of Material (Amendments to IAS 1 Presentation of Financial Statements and Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors) respectively issued by the International Accounting Standards Board.

The “Notice of Issuance” can be downloaded at www.masb.org.my.

Definition of a business The amendments clarify the definition of a business with the objective of assisting entities to determine whether a transaction should be accounted for as a business combination or as an asset acquisition.

The distinction is important because an acquirer does not recognise goodwill in an asset acquisition.

The amendments, amongst others, clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs.

The amendments also add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business.

Companies are required to apply the amended definition of a business to

31

Technical transactions for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 January 2020.

Earlier application of this definition is permitted.

Definition of material The amendments refine the definition by including “obscuring information” in the definition of material to respond to concerns that the effect of including immaterial information should not reduce the understandability of a company’s financial statements.

The prior definition of “obscuring information” focuses only on information that cannot be omitted (material information) and does not also consider the effect of including immaterial information.

Other refinements to the definition include incorporating some existing wording in MFRS 101 and the Conceptual Framework for Financial Reporting.

Consequently, the amendments align the definition of material across the Malaysian Financial Reporting Standards and other publications.

Companies are required to apply the amendments prospectively for annual periods beginning on or after 1 January 2020.

Earlier application is permitted.

ACRA issues changes to the Code Of Professional Conduct And Ethics For Public Accountants And Accounting Entities ACRA has issued changes to the Code of Professional Conduct and Ethics (the Code) for public accountants and accounting entities relating to long association of personnel with an audit or assurance client.

The changes are intended to give effect to the Close-Off Document on Changes to the Code Addressing the Long Association of Personnel with an Audit or Assurance Client issued by the International Ethics Standards Board for Accountants (or IESBA).

The changes are set out in the Accountants (Public Accountants) (Amendment) Rules 2018, which can be accessed at www.acra.gov.sg.

Subject to the transitional provision, the revised provisions will take effect for audits of financial statements for periods beginning on or after 15 December 2018 and they will take effect for other assurance engagements from 15

32

December 2018.

UNITED STATES FASB issues staff a question and answer document on the WARM method for estimating the allowance for credit loss reserves The Financial Accounting Standards Board (FASB) staff have issued a question and answer document that addresses particular issues related to the weighted average remaining maturity (WARM) method for estimating the allowance for credit losses.

This process of estimating allowance is required in the Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

The credit losses standard issued in 2016 requires organisations to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts with the objective of presenting an entity’s estimate of the net amount expected to be collected on the financial assets.

The standard does not require organisations to use a specific credit loss method. However, it allows organisations to use judgment in determining the relevant information and estimation methods that are appropriate in their circumstances.

Some stakeholders, including small financial institutions, asked the staff whether it would be acceptable to use the WARM method to estimate expected credit losses.

The WARM method for estimating the allowance for credit losses uses an average annual charge-off rate as a foundation for estimating the credit losses for the remaining balances (that is, losses occurring through the end of the contractual term) of financial assets in a pool at the balance sheet date.

In the question and answer document, the FASB staff agrees that the WARM method is one of many methods that could be used to estimate an allowance for credit losses for less complex financial asset pools. The staff also provides examples of how it could be used.

The staff question and answer document to address these issues is available at www.fasb.org.

FASB proposes alternative to accounting for goodwill and certain identifiable intangible assets for not-for-profits The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU) that would reduce the cost and complexity of accounting for goodwill and measuring certain identifiable intangible assets for not-for-profit organisations. Stakeholders are encouraged to review and provide input on the proposed ASU by 18 February 2019.

In 2014, the Private Company Council (PCC) worked with the FASB to issue two private company alternatives on the Accounting for Goodwill and the Accounting for Identifiable Intangible Assets in a Business Combination.

The FASB issued both of these standards to address concerns expressed by private companies and their stakeholders about the cost and complexity of the goodwill impairment test and the accounting for certain identifiable intangible assets, among other concerns.

“Stakeholders subsequently told us that these two private company alternatives would also benefit not-forprofit organisations – as the benefits of current accounting for goodwill and identifiable intangible assets in a business combination did not justify the costs,” said FASB Chairman Russell G. Golden.

“This proposed standard simply extends the scope of the two private company alternatives to not-for-profits, which will enable them to recognise fewer items as separate intangible assets in acquisitions and to account for goodwill in a more cost effective manner.”

In this proposed ASU, instead of testing goodwill for impairment annually at the reporting unit level, a not-for-profit organisation that elects the accounting alternative would: ●● amortise goodwill over 10 years or less, on a straight-line basis; ●● test for impairment upon a triggering event; ●● have the option to elect to test for impairment at the entity level; and ●● have the option to subsume certain customer-related intangible assets and all non-compete agreements into goodwill.

The proposed ASU is available at www.fasb.org.

ISSUE 103 | AIAWORLDWIDE.COM

RISE TO THE TOP Whillans’s Tax Tables 2018-19 Accurate tables of all the new and revised tax rates incorporating all the changes from the Budget and Finance Act.

Order Now lexisnexis.co.uk/whillans2018

RELX (UK) Limited, trading as LexisNexis®. Registered office 1-3 Strand London WC2N 5JR. Registered in England number 2746621. VAT Registered No. GB 730 8595 20.

LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. © 2018 LexisNexis SA-0118-027. The information in this advert is current as of February 2018 and is subject to change without notice.

GET TO THE BOTTOM OF TAX

Tolley®Library Find the answers you need from sources you trust.

Tolley®Library gives you quick and easy online access to the UK’s largest and most trusted source of accountancy and tax information.

Get more than 100 years of experience and information (including Tolley, Butterworths, Simon’s and De Voil), the latest news, detailed expert commentary or a judgement from the archives. Our comprehensive online library puts our wealth of knowledge and expertise at your fingertips.

Contact us today for more information Visit tolley.co.uk/library

RELX (UK) Limited, trading as LexisNexis®. Registered office 1-3 Strand London WC2N 5JR. Registered in England number 2746621. VAT Registered No. GB 730 8595 20. LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. © 2018 LexisNexis SA-0418-020. The information in this document is current as of April 2018 and is subject to change without notice.

SA-0418-020 TolleyLibrary advert update.indd 1

09/04/2018 10:57 PM