PQ magazine, April 2023

TIME TO TALK TO STUDENTS DIRECTLY

AAT has admitted its needs to communicate better with its students, following the technical issues that hit some of its PQs sitting Q2022 assessments on the Atlas Cloud software.

Tutors and students alike are unhappy with the unreliability of the new assessment platform, which they claim contain widespread glitches. There is also a worry that pass rates for Q2022 are far lower than those for AQ2016.

The problems are so bad we have heard of several colleges who have cancelled their Level 4 exams until further notice.

PQ understands AAT introduced several fixes last November, and a further fix was made in

January, but this failed testing. Another attempt to permanently fix the screen jumping issue was ‘happening’ in the first half of March. The regulators have also been made aware of the issues.

Suzie Webb, AAT’s director of Education and Development, told PQ magazine that Q2022 has been live now for six months and “on the whole things are going well with over 30,000 assessments being taken already”.

However, AAT has become aware of some technical issues with the software, including screen/mouse cursor jumping. She said: “The reports we have received indicate that

these have affected only a small number of assessments, but we do of course recognise the impact they may have had on students. We are therefore applying special consideration to any students who have reported as being affected by these issues, as well as offering free re-sits to those who request it.”

Webb stressed AAT will be sending out coms to update all centres as soon as it has further news to share on the fixes. PQ magazine has also asked that this communication should include students directly, and AAT promised it will open up dialogue with PQs too when things go wrong.

A SKILLS SHORTAGE THREATENS SECTOR

Graduates’ waning interest in a career in accountancy has become a massive challenge for many firms, according to a new Intuit QuickBooks poll.

Last summer the ICAEW reported that recruitment in the accountancy sector was hitting problems as the number of candidates for each vacancy fell dramatically – indicating a growing skills shortage. The ICAEW said at the time: “There are fears that this decline could be harming the sector’s strength and stability, with reports of accounting firms being forced to turn away work due to lack of staff. Nearly half of UK accountancy firms admit to facing huge blows to their growth amid the skills shortages.”

Research by Intuit QuickBooks says the problem could be getting worse and nearly half of accountants (44%) say their biggest challenge is the fact that fewer graduates want a career in the profession.

It all means that a whopping 92% of accountants have experienced hiring challenges in the past year.

However, using technology to attract

tomorrow’s accountants could be the answer. Some 86% of respondents believe having financial technologies in place that allow more opportunities for engaging work can help attract younger talent – making this a key route to plugging the current skills gap.

The survey of over 2,000 accountants also found a third thought tech has a direct positive impact on retaining staff, and 30% say tech has

resulted in happier and more engaged staff. Intuit QuickBooks Vice President Jolawn Victor (pictured) explained: “What is clear from the data is that budding accountants are looking for interesting, engaging work. Firms that invest in technology to automate routine tasks will free up their people to perform client-facing, value-add advisory. Those are the firms that will win the talent.”

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IN THIS ISSUE

A note from the Editor

Well, the deadline for the PQ magazine awards 2023 has come and gone. The nominations are with our judges and we will be publishing the shortlist in the next issue (out 14 April). Don’t worry, if you have made the shortlist you will have been notified and sent your tickets well before then! The awards night is after all scheduled for Monday 24 April.

I have to admit some people were surprised when we said we were running a ‘Future of Audit’ event, our second with Queen Mary University of London. Well, they were wrong about audit being dull – we had a fantastic turnout and some topnotch speakers. If you missed it never fear – we are getting a video together for you. There will be more on this in next month’s issue.

We know a lot of people are also upset about how the AAT assessments are going, and we have taken your case to the AAT. One tutor I spoke to felt AAT had “understated the scale of the change”. He said Q22 was a great leap forward, but said it was a harder test for students now. However, with AAT on your CV you can “get anywhere”, and the new syllabus will make other professional qualification you take much easier. Happy reading.

Graham Hambly, Editor and Publisher, PQ magazine

found guilty of breaking rules for remote exam sitters

10 CAI initiative Irish body sets up Ethnicity Network Group

12 Tech news Intuit Quickbooks launches a slew of new products Features, etc

14 Have your say We tutors can be green warriors too; social mobility fears; and what is HMRC up to? Plus our social media round-up

17 ACCA exam feedback It wasn’t a peice of cake, some sitters have reported

18 Corporate governance

Dispelling some of the myths that surround this subject

21 Study advice Top tutor Karen Groves has some sage advice on how you can study better

23 ACCA spotlight Global Talent Trend Report highlights the reasons why accountancy is a great career choice

24 CIMA spotlight Plenty of practice certainly pays off when it comes to the objective tests

26 Accountex 2023 Organisers unveil 180+ education sessions at this year’s event

27 Tax policy HMRC’s penalties regime disproportionately hits low income earners

28 Remote learning Online platforms can continue to improve the learning experience

29 ACCA AA paper How to pass an exam that some students

seem to underestimate

30 Blended learning Cath Littler explains how you can get the best of both worlds

32 Taxing times How a Ukrainian student defied the Russian invasion to join the ranks of ADIT graduates

34 A question for Tom Our man Tom Clendon explains how NCI and goodwill interact

p22

35 CPD Continuing professional development is more than just a tick-box exercise

36 AAT level 3 How to account for goodwill when a partnership changes

37 Your career Five tips for getting your CV just right

39 Careers The best countries in Europe for women to work; Karen Young has more careers advice; and our book review

40 Fun The lighter side of life –and accountancy

The columnists

Lisa Nelson ChatGTP can help you study – but tread carefully… 4

Robert Bruce Why we need an Office for Tax Reform 6

Prem Sikka There’s no end to the chaos in the audit sector 8

Anna Kate Phelan AI is here to help us, not replace us 10

David Rothera We’re all in the fight against climate change 12

ACCA March exam feedback

Snow in March was a big problem for many ACCA students trying to get to exam centres in the north of England and Scotland, particularly on the Thursday and Friday. However, all ACCA exam centres remained open and no exams were cancelled.

This time around the FR paper stood out among the Applied Skills papers as a harder test. Sitters seemed to struggle with both the MCQs and Section B, and called it a ‘brutal’ and ‘horrendous’ exam. AA also seemed much harder than normal, and with a pass rate of 40% in December some PQs are fearing the worst.

By stark contrast, students positively loved the SBL exam. According to an Open Tuition poll, some 9% of sitters said the exam was easy, and another 69% said it was OK – that’s positive feedback indeed for any paper! As one student said: “I have a strange feeling that this was too easy and I

wrote too little.” Another explained: “It seemed too easy but I think I waffled a lot.”

The optional papers were another tough set of tests. A big worry for many AAA sitters was the paper was nothing like they had seen before in the mocks or past papers.

AFM was described as ‘tricky’ but better than December. Time

AAT’s new logo

was the old enemy for many. One PQ said that despite passing everything first time they were totally lost in this exam, mainly due to time. They also felt the questions just seemed odd.

ATX was also ‘tough’ and ‘time pressured’. It was also an exam of two halves – easy for the first half and tough for the second.

See all the feedback on page 17

It may have gone under the radar with the launch of AAT’s Strategy to 2030, but AAT launched a refreshed brand on Friday 3 February 2023. The last brand refresh was 15 years ago, and AAT explained: “This was at a time with the internet was still relatively young and smartphones and tablets were just emerging. To take us into the future and to align with our digital-first approach, as outlined in the new strategy, we felt now was the right time to revisit and update our brand.”

CIMA four-week plan

CRAIGO, one of our favourite YouTubers, takes a really interesting look at the PQ magazine interview with the youngest-ever CGMA, Grace Bayton.

He also studied CIMA in the same way as she did, and loved her four-week plan to sit your exams. Bayton said: “In weeks 1

Women

There is still time to nominate a women in your network for the Top 50 Women in Accounting 2023 list. This year the organisers are focusing on “celebrating the unique and diverse stories of women in our industry, striving towards personal and professional progress”.

& 2 I read the book; in week 3 I completed all the questions; and in week 4 she did a mock and went back and answered all the questions she got wrong the first time!”

That’s a really achievable plan, says CRAIGO. Check out his video on https://tinyurl.com/yrfehzbu

CRAIGO has also produced a really useful CIMA’s beginners guide. Check it out at https:// tinyurl.com/2f4at3da

Old logo

Additional centre exam dates for UK and Malaysia students only

For the June 2023 ACCA exam session there will be an additional Friday timetabled option for students sitting centre-based exams for ATXUK centres only and AAA-INT in Malaysia centres only.

These June changes are a oneoff, said ACCA.

This means students taking ATXUK centre-based exams in the UK will have the option of booking their

Time to enter Public Finance Awards now

exam on Tuesday or Friday. Likewise, students taking AAA-INT centrebased exams in Malaysia will have the option of booking their exam on Monday or Friday. Capacity on each day will be subject to availability, so students should be advised to book early if they have a preferred date.

ACCA explained that the rigorous processes it uses to protect the integrity of the ACCA qualification

Azets acquires Baker Tilly Ireland

Azets has entered the Irish market for the first time, following the acquisition of Baker Tilly. The firm will rebrand as Azets Ireland with immediate effect.

Azets Ireland is led by Neil Hughes, supported by a team of 100 people, including 11 partners, and serving a portfolio of 2,000 clients. It operates out of Dublin and Enniscorthy, Co. Wexford.

Azets’ investment in Ireland also marks the company’s tenth deal in 12 months, with more M&A activity

planned across all regions as the group continues to deliver against its ambitious growth strategy.

Chris Horne, Group CEO at Azets, describes Ireland as the ‘natural choice’ for international expansion, explaining: “With its membership of the EU single market, strong commercial ties to the UK and transatlantic links, Ireland is the main gateway to Europe in a postBrexit environment. There are clear synergies for Azets’ people and our clients from building a strong

allows it to deliver fair and equivalent exams across both exam dates. “Therefore, no exam performance advantage can be gained by entering on either date,” it said. The main exam timetable for remote session exams is not impacted by these changes. However, the RI contingency exam date will now be Friday of week one for both exams.

The Public Finance Awards are back, celebrating excellence across public finance and governance. Entries are now open!

Entering the Public Finance Awards gives you, your team or your project the opportunity to be recognised by the sector and your peers, showcasing best practice across the profession. Judged by a panel of distinguished sector leaders, winners of these awards are acknowledged as best in class.

With 17 categories to choose from, including three that have been updated for 2023 including Excellence in Governance and Risk Management, Outstanding Fraud Prevention, Detection and Recovery and Aligning Local Services, there are plenty of opportunities to be rewarded for your achievements.

partnership with our new Irish team – and we’re delighted to welcome them into the group.”

Click here to view the 2023 categories – visit Public Finance’s website for tips on compiling your entry. The deadline for entries is 3 May 2023.

All smiles: (from left) Neil Hughes, CEO, Azets Ireland; Linda Doran, South East Partner, Azets Ireland; Chris Horne, Group CEO, Azets; Alma O’Brien, Head of Tax, Azets Ireland.

ROBERT BRUCE

Why we need an Office for Tax Reform

In recent years there have been umpteen Budgets. Enough to ensure that sane people think that chaos seems to have the upper hand. The traditional Budget picture should not be the Chancellor of the Exchequer waving a small case aloft. In reality it is likely to be of them proudly standing with their foot firmly on the head of whichever dragon they claim to have vanquished, (and in such acts high stiletto heels would be the most effective). Such events are more about image and publicity rather than policy and achievements.

At an Institute for Government event entitled Making Tax Policy Better we were a world away from the frivolous nonsense that normally surrounds the Budget. We spend too much time on future policy and too little on what is happening now, was one view. It is absurd that businesses have no clue until the Budget what their rate of tax in the years ahead is likely to be, was another. A ten-year digital strategy is needed. The pensions system IT systems date back to the 1980s. There are too many Budgets and parliamentary scrutiny is weak. And so on. At the disaster of the Budget during the Liz Truss weeks they abolished the Office of Tax Simplification. Bizarre. A session of clear thinking about tax is now required. We now need an Office for Tax Reform.

Students in London are the happiest

Students in London are more likely than those in all other English regions to say their experience exceeded their expectations, according to a new Living and Learning in London report.

In fact, London studiers are so happy they are also joint most likely of all English regions to say they would choose the same course and institution again (61%, the same as the North West).

In answering to the question ‘Overall, how satisfied are you with your life nowadays?’ London students were significantly more likely to rate their happiness out of 10 at either nine or 10 than those in any other part of the UK.

More students in the capital also feel their courses provide good value for money, and the results are again more positive than in the other

English regions. This may be due in part to factors including the greater number of commuter students in London, as they may have different expectations of the student experience.

International students (a group comprising a disproportionately high proportion of the London student population) are more likely to view their courses as providing good value for money than those

paying ‘home’ fees, and are also more satisfied with their lives. They may arrive well prepared for the cost of living in the capital, owing in part to the need to prove they have sufficient funds before applying for a visa. London students, including international students, are however more likely than those in all other UK areas to indicate that tuition fees are a financial issue for them.

Mazars UK delivers 23% growth in FY22

Top 10 accountancy firm Mazars has delivered 23% growth in FY22, according to figures for the year to 31 August 2022. The UK firm brought in revenue of £288m.

A drill down into the numbers shows Mazars UK audit business grew by 37%,

as the firm goes looking for more market share from the Big 4. Mazars said the growth reflects its investment in talented people and headcount grew to 2,890, an increase of 18.5%. This included a record intake of 450 trainees in Q1 2022.

Phil Verity, CEO, said: “We are harnessing the firm’s positive momentum to invest in building the team of the future. From defining enhanced career pathways to creating a culture of mentorship across the firm, we are investing today to build a team with the skills, resources and support to succeed in the future.”

HMRC repayment interest rates ‘unfair’

The UK government needs to review “unfair” repayment interest rates, with taxpayers facing late payment bills from HMRC up to 17 times higher than what is returned to those who have overpaid, says the Chartered Institute of Taxation.

HMRC generally charges interest on late payment at the Bank of England’s base rate (currently 4%) plus 2.5%. However, interest

on repayment from HMRC to individuals and businesses is the base rate minus 1%. This means there is usually a difference of 3.5 percentage points between the interest charged on late payments by HMRC and that paid by HMRC on repayments.

In an extreme scenario, this could result in an individual who submits their Self-Assessment tax return for the year 2020-21

on 31 January 2022, claiming a repayment of £5,000, being returned £57 in interest if HMRC do not make the repayment until 28 February 2023. Meanwhile, another taxpayer who submits their return on the same date but fails to pay a liability of £5,000 until 28 February 2023 could be charged an additional £976 by virtue of their late payment, more than 17 times as much.

companies will be giving software demos and there will be a diverse CPD accredited education programme to explore.

“We're so excited to bring you our most diverse programme yet,” said Accountex Portfolio Director Caroline Hobden. “We want visitors to walk away feeling inspired and informed with a new passion.”

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PREM SIKKA There's no end to the audit market chaos

Azets targets 500-plus new recruits for 2023

Azets has announced plans to recruit more than 500 apprentices, graduates and school leavers in 2023.

The UK Top 10 accountancy firm currently has 650 apprentices, graduates and school leavers across England, with 331 having joined in August 2022.

Intu Properties plc. The FRC has consistently reported that big firms deliver poor audits. The most recent report stated that around a quarter of the audits by major firms were poor.

The regulator could shut down the persistently failing firms, but hasn’t. The promised post-Carillion auditing legislation has failed to materialise. Lack of professional scepticism and independence are the most common factors in audit failures. The lure of lucrative consultancy fees could be ended by requiring auditors to act exclusively as auditors. That would prohibit audit firms from selling any consultancy services.

Periodically, after a scandal big firms resurrect the possibility of the audit/non-audit split – two arms under a common ownership. It is very different from requiring audit firms to concentrate on audit only. Through such tactics, headlines are managed and crisis is mediated. Meanwhile, audits deliver little of value but audit firms continue to enjoy the state guaranteed market of external audits. Yes, there is no business like auditing business.

Azets is offering another 531 early careers opportunities for September 2023, to take the total to nearly 1,200 by the end of this year.

In 2017, Azets had just 30 apprentices, reflecting the firm’s rapid growth and ongoing investment in talent development over the past six years.

This latest graduate recruitment drive is part of Azets’ recently announced plan to add 900 roles across its UK business over the next 12 months.

The positions cover all levels, from associate through to partner,

CIMA blackout notice

CIMA is upgrading its systems in April, which could affect students’ exam schedules. No exams can be taken between 12 and 26 April. MyCIMA accounts will be ‘unavailable’ for access, including exam scheduling, between 17-26 April.

If you plan to take a Case

Study Exam in May, you must pass all the Objective Tests before you schedule the case study. You may need to adjust your scheduled exams to accommodate the available dates.

So, basically, if you want to sit an exam after 26 April you can

and service lines including audit and assurance, accounting and advisory business services, corporate finance, tax and restructuring.

David Whitson-Black, Group Head of Talent Development, said: “Our commitment to early careers and creating accessible apprenticeship opportunities is stronger than ever. We have continued to increase apprenticeship opportunities yearon-year, as we continue to invest in people and talent development.

“We are also seeing a huge spike in demand, with a record number of applications for September 2023. This is not only being driven by young people but a diverse range of ages and people looking for a career change.”

All current early careers opportunities can be found at https://tinyurl.com/yckthfx8

pre-book it between 12-16 April. But from 17-26 April you can’t book an exam or sit one.

Become a financial modeler

ACCA has partnered with the Financial Modeling Institute to offer members its Advanced Financial Modeler Accreditation.

ACCA members will have the opportunity to obtain FMI’s Level 1 Advanced Financial Modeler (AFM) exam, enabling them to differentiate themselves by demonstrating that

they have the advanced financial modelling skills most valued by employers worldwide. FMI is recognised globally for providing the most respected accreditations in financial modelling.

ACCA Chief Executive Helen Brand said: “This exciting accreditation marks the global

gold-standard for financial modelling, so we’re delighted to be working with FMI on this. Through this partnership and by offering this qualification we’re supporting our members’ career success, as well as opening the door to connections with fellow professionals.”

ACCA members interested in obtaining FMI’s AFM accreditation can find more information and enrol at the ACCA Learning website.

You have to be alone!

An ACCA student who was sitting his exam remotely has been removed from the student register after being found guilty of having another person with him when they took their test.

The remote invigilator filed an incident report against Inshaullah Khan, who was sitting the BT exam. They believed a person was in the room before and during the exam. Another person’s voice was heard, they were visible in the room and a black object, possibly a mobile

phone, could also be seen at one side of the screen.

Khan stated that the person that entered the room on the day of his examination was in fact his roommate and cousin, who was

Wescotts takes on 11 new recruits

Eleven new members of staff have been appointed to work in the Plymouth office of leading South West chartered accountants and business advisers, Westcotts.

Ben Perry, Ben Watt, Maddie Cooper, and Brooke Morey have begun their three-year AAT/ATT apprenticeship schemes with the firm, while continuing their studies at Accountancy Learning Ltd in Plymouth.

In addition, Tom Roberts recently started in the Plymouth office

as a corporate manager. Tom, a chartered accountant (ACA) joins from Dartmoor Zoo, where he held the position of head of finance and latterly director of finance for several years.

Emma Mills joins Westcotts as an audit manager and Alex Tozer has been recruited as a graduate trainee after spending the past 16 years working in the hospitality sector at a senior level. Charlotte Carroll and Maisie Watts, both AAT qualified, also join the firm. And

unaware that he was sitting a remote examination.

Khan explained he tried to alert his cousin to the fact that he was taking an examination and that he should leave the room. Khan said he did this using hand gestures as he could not alert his cousin verbally. However, his cousin did not understand the meaning of his hand gestures and so entered and left the room several times, including during the exam as well as before it started.

Khan was found guilty of misconduct removed from the student register and ordered to pay £100 towards ACCA’s costs.

Creating ‘sustainableready’ CFOs

AICPA & CIMA and the University of Oxford’s Said Business School have joined forces to offer a new executive management certificate programme in sustainability for accounting and finance professional.

part AAT qualified Liberty Gleeson and Shannon Glaysher will continue studying while working at the firm.

The programme, expected to launch later this year, is designed for professionals in mid- to seniorlevel career roles, such as chief finance officers, board members and chief accounting officers. It will be taught online through live classes, giving participants access to faculty members with worldleading expertise in sustainability issues, and an unparalleled opportunity to develop a global network of contacts with their peers. Graduates of the programme will earn a certificate jointly signed by Oxford Saïd and AICPA & CIMA.

To find out more go to https:// tinyurl.com/pvmh9azf

Welcome all: (from left) Westcotts’ Liberty Gleeson, Alex Tozer, Ben Perry, Shannon Glaysher, Emma Mills, Charlotte Carroll, Brooke Morey, Tom Roberts, Val Doyle, Adam Croney, Ben Watt, Maisie Watts and Maddie Cooper

ANNA KATE PHELAN

New Ethnic Minority Group created

Chartered Accountants Ireland

(CAI) has launched a new Ethnicity Network Group, to try to develop a more inclusive profession

AI

The Ethnicity Network Group will include a programme of events; the provision of training and resources for organisations; and the development of a mentoring programme to support members and students from Traveller, Black, Asian and other minority ethnic groups.

R

that is claiming that they could reduce legal fees by up to 75% as their software can assist lawyers with the drafting and editing of contracts. It has developed its own machine learning model which it has trained on data from over 4.5 million legal documents and combined that training with “supervisory” amendments from 30 in-house lawyers. The City tech company has raised £8.8m from backers including 'magic circle' lawyers. This funding will be used to boost Robin AI’s tech team and has allowed the firm to purchase a stake in competitor LawGeex.

The proliferation of this type of AI technology has wider ramifications for professional services in general. AI could soon be seen as a supplementary function in the accountancy space in coming years, allowing accountants to focus on matters of importance.

There are some concerns that this may lead to a reduction in the available positions in the profession. However, I for one feel the robots aren’t going to replace us just yet!

In establishing this initiative, the profession wants to encourage and facilitate the discussion of issues relevant to people in these minority groups and give them the voice and platform to identify solutions.

The move follows a survey of over 1,300 members and students of

CAI, conducted by Coyne Research, which showed that over 40% of members who claim to have witnessed/heard discrimination against others report it was based on ethnicity. And two-thirds of students reported the same.

Accordingly, among both members and students, ethnicity was cited as the primary area where the institute should place greater priority, and over half of members and 60% of students surveyed said they would be interested in attending associated training or support if offered by the Institute.

Deborah Somorin (pictured), chair of the CAI Ethnicity Network Group, said: “With this network we will aim to expand the conversation around diversity, to further strengthen the cultural intelligence within our profession and beyond, and to continually challenge biases in the highest and best way. I’m immensely proud of where we are today and look forward to seeing what we can create together.”

ILFM appoints new head of professional development

The Institute of Legal Finance & Management (ILFM) has announced the appointment of Karen Edwards as the new Head of Professional Development. She takes up the post on 3 April 2023.

The announcement comes as the ILFM grows its senior leadership team and reshuffles

the Council that supports the professional body.

Tim Kidd, Chief Executive of the ILFM, said: “As our membership and reach grows, so too do our education, training and collaborative processes.

“Protecting client money through risk management and supporting our

Inaugural standards coming

The International Sustainability Standards Board (ISSB) has agreed the technical content of its initial standards, which will be formally issued at the end of Q2 2023.

The ISSB also agreed that its initial IFRS Sustainability Disclosure Standards, S1 and S2, will become effective starting January 2024.

China wants firms to drop Big 4

Chinese authorities have urged state-owned firms to drop the Big 4 accounting firms, according to Bloomberg news.

It said that China’s Ministry of Finance is among the government departments urging companies to let contracts with PwC, KPMG, Deloitte and EY expire.

While offshore companies will still be allowed to use US auditors, parent firms have been told they need to hire local Chinese and Hong Kong accountants.

No formal deadline has been given but China wants to rein in the influence of the Big 4 firms

Given sustainability disclosure is new for many companies globally, the ISSB said it will introduce programmes that support those applying its Standards as market infrastructure and capacity is built.

ISSB chair Emmanuel Faber said: “We will work with regulators around the world as they play their

and protect data security, while at the same time boosting national accounting firms.

It has been estimated that the Big 4 generate £2.5 billion from their work in China.

EY’s split proves taxing EY has ‘paused’ its plan to split in two following a huge dispute over what should happen to the tax business, according to the Financial Times. Apparently, partners could not agree on just how much of the tax business should stay with the audit side of the firm.

EY’s US head, Julie Boland, had to tell partners on 8 March that the deal needed to be ‘reworked’. However, she is very much in favour of splitting the firm. This is not the first time that the vote on splitting the firm has been delayed.

members who are integral to law firm sustainability and cashflow, it gives the ILFM great pleasure to welcome Karen onto our Senior Leadership Team, to steer technical and professional qualifications for our existing members and members to come.

“The ILFM offers vital information, education and resources for all legal accounting and practice management professionals, together with being the backbone for COFA, AML and Accounts Rules’ resources.”

part, creating the conditions within their markets for adoption, so that investors can use comparable information about sustainabilityrelated risks and opportunities in their investment decisions without delay. We will also actively engage with the many preparers who are considering voluntary adoption of S1 and S2, to better answer their investor needs.”

Sanctions against PwC and two of its former auditors

The Financial Reporting Council has imposed sanctions on PwC and two former audit partners over the audits of Babcock International Group plc and Devonport Royal Dockyard Limited.

PwC received a severe reprimand and fined £7.5m, adjusted down to £5,625,000. An order was also put in place requiring a review and amendment of certain PwC training programmes.

Campbell Lambert was also severely reprimanded along with Heather Ancient. Lambert was ordered to pay a £150,000 fine and Ancient £48,750.

AI is here to help us, not replace us

Ann a Kat e Phelan is Head of Product at Eintech

DAVID ROTHERA

Intuit Quickbooks unveils new UK products

Intuit Quickbooks unveiled a whole swathe of new innovations to its suite of digital products at its flagship Quickbook Connect conference recently.

Nick Williams, UK product director, told PQ magazine that accounting and bookkeeping professionals help drive small business success, and Intuit QuickBooks is committed to help them navigate an increasingly challenging economic landscape. He explained: “The burden of admin can be an unnecessary drain on time and resources. We’re making it our mission to provide tools that shoulder as much of the basic tasks as possible, all while providing unmatched data insights – freeing up time for growth and informing the strategic advice that underpins

excellent client service.”

Coming soon is QB Practice Management Software, a new tool that will allow accountants to centralise client records, manage client interactions, reduce admin by automating recurring tasks, streamline workflows, increase consistency across operating procedures and manage workload across their teams.

Britcoin – a new frontier

A central bank digital currency (CBDC) could make the financial system more stable and even “open new frontiers”, according to Bank of England deputy governor Jon Cunliffe.

He told a recent Treasury Committee that the introduction of an official digital currency could also have huge benefits for the economy and for society.

Cunliffe explained: “We can configure payments to an extent

now, but it is quite clunky and they are quite blunt instruments, whereas programmable money would enable much more differentiation and variation.”

He felt concern about an increase in bank failures was overstated. “A digital pound provides another payments system in terms of resilience, but it also means if we have to deal with failed banks again, there is another asset people can go into.”

The latest update in the recently launched QB Advanced is Revenue Recognition, which supports accrual accounting by allowing users to automate the recognition of revenue on a monthly basis.

QuickBooks has also expanded its Workpapers product to include a new innovation, Books to Tax. It will soon launch Bureau Payroll too.

Diverse attacks

Cybercriminals are using increasingly advanced tools and tactics to exploit and extort victims, with state-sponsored activity growing as a concern, according to SonicWall’s 2023 Cyber Threat Report

The report found that the total volume of malware attacks was up 2% in 2022 after three straight years of decline. Europe as a whole saw increased levels of malware (+10%) as did Ukraine, which had a record 25.6 million attempts.

And Cunliffe felt that a ‘Britcoin’ would not be the enemy of cash, telling MPs: “Cash will decline not because digital options are created. Cash will decline because it’s not useable, and then digital options will be created.”

BPP Education Group acquires the Digital Marketing Institute

BPP Education Group has bought the Digital Marketing Institute (DMI), a leading provider of digital marketing training and certifications.

Following this transaction, DMI will continue to run as an independent business under the leadership and management of its existing teams and remain

Interestingly, malware was down year-over-year in key countries like the US (-9%), UK (-13%) and Germany (-28%).

You can find the report at https:// tinyurl.com/5ydtaunn

Tech superpower UK Prime Minister Rishi Sunak has launched the government’s plan to cement the country’s place as a science and technology superpower by 2030.

Sunak wants to help grow the UK economy, create high-paid

headquartered in Ireland. With its acquisition of Estio Training and Firebrand Training, BPP believes the new acquisition of DMI will help it focus on delivering a broader portfolio of programmes, providing more learners and clients with access to a leading portfolio of professional courses and apprenticeships.

Graham Gaddes, BPP CEO, commented: “The acquisition of Digital Marketing Institute introduces a new vertical of programmes into the BPP portfolio. We are seeing an everincreasing demand from our clients and customers that want to expand their skills in digital marketing.”

jobs of the future, protect the UK’s security, and radically improve people’s lives through science, innovation and technology.

Backed by a fund of over £370 million, the aim is to bring the world’s best talent to the UK, and seize the potential of groundbreaking new technologies like AI.

Sunak said: “Trailblazing science and innovation have been in our DNA for decades. But in an increasingly competitive world, we can only stay ahead with focus, dynamism and leadership.”

The drones are coming Wing, a subsidiary of Alphabet, says it will have a deliverynetwork technology ready to handle a million orders in a year’s time.

The company said operating a network of drones will transform efficiency, and trials are currently taking place ‘at scale’ in Australia. Delivery trials are also taking place in Lusk, a suburb of Dublin.

Wing is reportedly in talks with Department for Transport and Civil Aviation Authority in the UK about starting drone delivers.

Tech briefs

Climate warriors

We read with interest your lead article by Professor Ian Thomson headlined ‘Are you fuelling climate change?’ (PQ, February 2023). He correctly wants a world where accountants and decision-makers consider the financial cost and the environmental cost at every turn.

When it comes to ACCA exambased training PQs and employers have a choice: traditional classroom-based training or online training. That traditional approach comes with a larger carbon footprint as a result of journeys into college, the heating of the classroom and the printing of physical books.

By contrast, online exam-based

Social mobility fears

I was intrigued to read your lead story ‘Why the City isn’t fair’ (PQ magazine (March 2023). I come from a working-class family and have always found it difficult to be ‘one of the boys’.

It is true too that the council estate doesn’t get you ready for working with people from the posh houses! They do look down on you, and you are forced to change – even the way you talk. Wearing your class on your sleeve doesn’t help you get on. In truth it is the reason why I left practice for industry, where I am judged on my achievements.

The whole ‘must have a 2.1 degree’ thing also ensured the firms could excluded by class. The shame is I thought and have read how this is changing, yet Louise Ashley’s book was only published last year. I had a chuckle too about the ‘employed on merit’ thing, and it is true that if that was actually practiced, then why do all the accountancy firms look the same!

It’s time for real change. Name and address supplied

Why the delay?

Why has HM Treasury been allowed to just postpone the introduction

training requires no journeys no additional premises and no printing of physical books.

Nevertheless, there are some carbon emissions due to online

activity and WhatsApp.

For over two years, we have both acted and made payments to offset the limited carbon footprint of our online businesses.

We are both proud to be certified as carbon neutral. It’s not a selling point – those are the quality of courses, personalised support and feedback. Being carbon neutral is just embedded into the business. We meet that expectation factor.

So, things have not only changed (for the better) in the university sector but also in the ACCA professional exam training market.

PQ joined the AAT at the House of Commons to celebrate the launch of Strategy to 2030. AAT CEO Sarah Beale stressed that a key part of this strategy is to widen access to the profession for anyone who wants a career in accountancy. She said it was time to fight the perception that accountancy is an elitist profession.

of Making Tax Digital for the selfemployed and landlords? This was my project in the firm and now, after all my moaning and persuading, I look a fool! They aren’t pushing back one year but two – to April 2026. I am not even

sure I will be with my firm until then, and will probably have to pass the mantle to another poor PQ. We were ready and I just think HMRC were not. They should be honest and just take the hit on that. Name and address supplied

It was a fantastic chance to network with lots of people. One person we bumped into was the wonderful Libby Walklett (pictured with PQ’s Graham Hambly), from the ethical bookkeeper. Here just some of what she wrote about the event: “I don’t know where to start. On Monday evening, I attended a parliamentary event hosted by the AAT attended by MPs, peers, journalists, award winners and nominees (yes, me!!).

“To say I was a tad nervous and feeling a little out of my comfort zone would be an understatement, however I made it past security and they let me in! I needn’t have worried. Once in, I spent the most wonderful evening speaking to anyone and everyone that stood still for long enough for me to bend their ear!

“I even met the lovely Graham Hambly from PQ magazine, who told the most hilarious stories about his Dad. I ‘may’ have invited myself to his awards night, and got an invitation back, which I won’t be sharing with you quite yet, but watch out when I do, cos it’s a good one.” Walklett certainly knows how to network!

If you have any problems with delivery, or if you want to change

Our star letter writer wins a fantastic ‘I love PQ’ mug!

Tom Clendon SBR tutor, and Jo Tuffill FM & PM tutor, FME Learnonline

The ACCA March sitting

Sitters explain how the March sitting wasn’t all a piece of cake!

PM

Not too bad, was the general feedback here. Some 13% found it a disaster and another 31% hard, according to the Open Tuition Instant Poll.

FM

General felt to be an OK paper from the feedback we received.

There was a question on NPV without inflation, capital allowances and working capital. There was also an Islamic finance discussion question in section C for many, and something on fintech.

Some sitters admitted they were thrown by the examiner asking about floor value of bonds. “I’ve never seen it mentioned like this before,” said one sitter.

TX

While some found the December TX exam easier (and still failed), others felt it was hard to call it a difficult exam – just strange. The Open Tuition Instant Poll shows it was an easy exam for 9% and OK for just over 50%. Just 7% of March sitters said it was a disaster.

FR

The Open Tuition Instant Poll saw 23% of sitters calling this sitting a disaster and another 42% felt it was hard, when we looked.

Some felt the MCQs were a lot harder this time around. Section B was deemed much harder than the mocks, too. As one student said: “I am worried I may need to resit so might try to keep my memory fresh!”

Another sitter said it was a ‘brutal’ exam and others called it ‘horrendous’ and ‘dreadful’.

AA

The MCQs seemed harder than usual, when looking back at past papers. One PQ explained: “Section A was a bit complex”, and another said it was harder because there were a lot of questions that required two or more responses as the answer.

Sitters liked the ratio question and felt there was a lot on substantive procedures. The controls on corporate governance and reliance for auditor questions were deemed a bit harder.

One sitter admitted they should have practised the copy-and-paste function more as they ended up having to type stuff out. It meant they didn’t finish the exam and lost at least 14 marks!

SBR

‘Very challenging’ is how many described the March sitting.

Another exam where 50% of sitters felt the exam was either hard or a disaster, according to the Open Tuition Instant Poll.

Segmental disclosure was a surprise for Q4, too.

SBL

Students positively loved this exam, if the Open Tuition Instant Poll is to be believed! Some 9% of

sitters said the exam was easy and a whopping 69% said the March exam was OK!

As one student said: “I have a strange feeling that this was too easy and I wrote too little.” Another explained: “It seemed too easy but I think I waffled a lot.”

But students really did say they liked this exam! Others were pleasantly surprised. That said, time pressure still played a part for many.

APM

One in five sitters said this March’s sitting was a disaster for them. The Open Tuition Instant Poll also had another third (34%) calling it hard! As one PQ said: “Hated it – 50% balanced scorecard, 25% performance pyramid and 25% EMA.”

Another sitter said the exam wasn’t hard but there was so much to answer in such a short time.

There were some technical issues too for some. A PQ explained: “I had an issue for just over 15 mins and then it started to work. I have put in mit circumstances.”

ATX

‘Tricky’ and ‘time-pressured’ is how many described the March sitting.

The Open Tuition Instant Poll put the exam as hard for 41% of sitters and a disaster for another 17%.

For many the first two questions were generally

OK, the second two were pretty difficult. People seemed to like the ethical question.

One sitter said: “Hardest exam I have sat so far, praying for a scrape.”

AFM

Described as ‘tricky’ but better than December –if that makes it any easier!

In the Open Tuition Instant Poll, 18% of sitters said the March sitting was a disaster for them and another 38% found it hard.

Time was a big enemy for many. As one sitter explains: “I love AFM and quite comfortable in all areas, it’s just the time that messes me up. I start rushing and missing out on reading things properly and then cannot attempt it all. It was my second time today – last time I got 49%.”

AAA

The Open Tuition poll shows this March’s exam was felt to be a disaster for 21% of sitters and hard for another 40%. As one sitter put it: “Not sure how it went but it was the toughest I have seen for AAA to be honest.” Another sitter simply said: “Another fail, I am booking a resit for June.”

Yet another explained: “One of the toughest AAA papers I have seen, it was like the examiner was given the task to come up with the most difficult paper possible.”

A big worry for many sitters was the paper was nothing like they had seen before in the mocks or past papers.

Corporate Governance and Stewardship myths dispelled

The Financial Reporting Council wants to put an end to the common misconceptions about Corporate Governance and Stewardship

What is corporate governance? And what does the FRC means by stewardship? The accountancy watchdog has put together its answers for these frequently asked questions for you.

As FRC’s Mark Babington said: “Good corporate governance and stewardship are essential for the long-term success and sustainability of businesses. However, there is still some confusion about what Corporate Governance and Stewardship means, what they involve and how the FRC fits in.

“We hope this myth-buster will dispel some of the myths around these two important topics and prove a useful tool for everyone, regardless of their experience in this area.”

Here are those Q&As in full:

Q: What is ‘corporate governance’?

A: Corporate governance is the way companies are directed and controlled. It involves a framework of legislation, regulation, codes and voluntary action for companies and their shareholders. It includes important issues such as directors’ duties and remuneration,

audit, shareholder rights, capital structure and corporate reporting. The UK Corporate Governance Code also covers these issues as well as matters such as company purpose, strategy, culture, performance, risk and board appointments and decision-making.

Q: What do we mean by ‘stewardship’?

A: We think about stewardship in two ways: the stewardship of a company by its directors, and the stewardship of assets by investors (including company shareholdings) entrusted to them by their clients, such as pension funds. The UK Stewardship Code sets high stewardship standards for asset owners and asset managers, and for service providers that support them. High standards of corporate governance and stewardship are essential for integrity, trust, and the efficient and effective functioning of public and private capital markets.

Q: So who is covered by the UK Corporate Governance Code?

A: All companies with a Premium Listing on the London Stock Exchange’s main market are

within the scope of the Corporate Governance Code, regardless of where they are incorporated. We also know that many other companies and organisations use the Code as a guide to their own approach to corporate governance.

Q: Why is the UK Corporate Governance Code based on principles, not rules?

A: Even our largest companies come in all shapes and sizes, stages of development and different business sectors, so can’t all be governed in the same way. Principles offer flexibility for companies to apply the Code in the way that achieves a high standard of governance tailored to their individual circumstances, and demonstrate to their shareholders that they have given this serious consideration through complyor-explain reporting.

Q: But what does comply or explain mean? And what if we don’t comply?

A: The Code contains high level principles and more detailed provisions. ‘Comply or explain’ applies to the provisions. All companies are different and we recognise that there may be

circumstances where companies can achieve a high standard of governance without strict compliance with a provision. If you choose not to comply with a provision, you must say so and explain why. It’s important that any explanations are clear and appropriately high-quality. We provide guidance on our website on how to do this.

Q: Does the UK Corporate Governance Code give the FRC powers to enforce against directors?

A: No, it does not. The Code is a flexible part of a framework that allows companies to develop high quality governance practices for their own particular circumstances which shareholders should understand, engage with and approve. We do monitor reporting against the Code by selecting a random sample of 100 FTSE 350 and Small Cap companies to assess the quality of reporting, which informs our Review of Corporate Governance Reporting each year.

Q: How does the UK Corporate Governance Code support environmental and social issues?

A: In two ways:

• Through the directors’ assessment of risks facing the company.

• Decision-making related to directors’ duties (particularly the duty to promote the success of the company and the matters needed to be taken into account in doing so). Both of these involve consideration of

environmental and social factors which affect the success of the company.

The code also asks companies to report on workforce engagement and resulting board considerations, board diversity, and progress towards diversity objectives.

Q: What happens if my company is reviewed by the FRC in one of its reviews or thematics?

A: Each year, the FRC assesses the quality of corporate governance reporting from a sample of 100 companies. Our annual review highlights good practice and areas where reporting and action needs to improve. If a company is found to not comply or provide a high-quality explanation, or has not applied the code principles, the FRC may write to the company indicating how reporting can be improved.

Q: Our Chair can’t meet investors any more –they only send governance people!

A: Most strategic engagement takes place between directors and investment managers at a senior level. Our stewardship research tells us that the quality of engagement is improving. Investors use a variety of approaches to engage with companies, and engage on a wider range of themes than only those on the AGM agenda.

Q: My investors like the way we do our reporting – how does the Stewardship Code apply?

A: Stewardship is the responsible allocation,

management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society. It exists to set high standards for investors to demonstrate the effectiveness of their stewardship and allows investors to demonstrate successful engagement with companies.

Q: Just suppose our best investors aren’t signatories to the Stewardship Code –then what?

A: A large majority of them are! There are currently 179 asset manager signatories to the Code, representing £46.4tn assets under management. If, however, an investor is not a signatory, FCA rules require them to publicly state their alternative investment strategy.

Q: Isn’t this all just box ticking? What value does the Stewardship Code really add?

A: The value of the Code is precisely that it isn’t box-ticking. It involves a thoughtful approach to the governance of the company and well-informed investor management. Signatories also need to report every year to ensure that their work on stewardship is an ongoing improvement process – it isn’t a ‘one and done’ approach.

• Thanks to the FRC for this article

How do I study?

Karen Groves outlines the best way to approach your studies

One of the first questions you probably ask yourself, is where to begin, and how to approach your studies.

Many of my students over the years will have heard me discussing how you can use a SWOT analysis to help as a starting point, and then getting them to draw this out.

A SWOT analysis will help you identify:

• Strengths – what are you good at?

• Weaknesses – what are you not so good at?

• Opportunities – what career opportunities will further study provide you?

• Threats – what may stop you achieving your goal?

A ‘strength’ might be that you are really good at double entry bookkeeping, which will help you with any bookkeeping units.

A ‘weakness’ might be that you find certain topics challenging, so to overcome this you will need to allow yourself more time to study these units.

An ‘opportunity’ could be that you are looking at changing job roles, and by completing the course, will put you in a stronger position to secure that dream job.

A ‘threat’ might be family commitments you have, that could prevent you having the time to study. By preparing a SWOT analysis you would address this and look at possible solutions, for example, having a set time each day/week to study when you aren’t disturbed.

Preparing a SWOT analysis will help you to come up with a plan of action. If you are unable to attend an onsite college course, then distance learning would be a great option for you, as this is flexible and fits around your other

commitments.

Your study goals will be both short, medium, and long term and each should have a specific target, for example, this year you want to complete the AAT Level 2 qualification. As part of your goals, you will need to have effective time management in place to enable you to complete the required study hours.

It is important to re-evaluate your SWOT analysis at every level of your studies. By taking this approach, you are identifying factors that may hinder your studies, and potentially stop you achieving what you have set out to achieve. I also find it reduces stress levels, as you are identifying these factors before you commence your studies, so you must address these early on, rather than realising six months into your study course, and then wishing you had drawn up a study plan timetable to ensure you had ‘study time’ scheduled.

Once you have carried out your SWOT analysis, then it is time to actually start studying! So, where do you start … This will depend on several factors, for example, the training provider or college you are studying with, or you might be purely distance learning with no tutor support. Irrelevant of what subject or level you are studying, the approach will be very similar. Once you have completed the first exam or two, you will soon get into the swing of what works well for you, as we are all different in what suits us.

I will base my ‘how to study’, on AAT courses. My advice to our students at e-Careers is to use a mix of the resources you have access to, for example, in the tuition stage, work through our online study content, join live sessions, or

watch the recordings, refer to the Kaplan study texts, including all questions and Question Banks. When you come to the revision stage, you should be completing online assignments, joining or watching back live exam preparation sessions, and working through the AAT practice assessments. This will ensure you are exam ready, and you will know the format of your AAT assessment to be taken at the exam centre. Regardless of how you are studying, you will be able to apply the above, as you will have access to study books and the AAT Lifelong Learning portal.

For revision, I always used to make an A4 page of notes for every chapter during my ACCA studies, as I found the sheer volume of content could be very overwhelming. By condensing it right down, helped me to also establish areas I needed to re-visit. The very last thing I looked at before going to take the exam, would be the Kaplan pocket notes. You can create your own study cards, or if you do have a set of pocket notes for the course you are studying, make extra notes on these as that can also help.

I think my final word of advice would be that you must want to achieve and do well. If you are not in the right frame of mind to study, you will find excuses as to why you can’t study, which in turn will lead to not achieving. I found the ACCA FM unit very difficult, as I worked in practice at the time. I would convince myself that rather than studying, I should clean the oven, iron, garden, or anything else that would seem a reasonable excuse for not doing what I should be doing, i.e., getting my head down and studying. Needless to say, the exam took a few attempts, so lesson learnt!

View studying as a positive factor, whilst it will be very time consuming, once completed, you can then secure the job you have always wanted.

• Karen Groves is an AAT tutor and Faculty Director of Accounting at e-Careers

0203 7908674

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The smart choice

Deciding to study for an accountancy qualification is the first step on a journey towards longterm career growth and fulfilment, says Jamie Lyon

Are you looking for an interesting, varied career that will offer you long-term growth and security, along with cross-sector and cross-border mobility, in an era of economic, social, and geopolitical upheaval? If that’s what you want, then congratulations are in order – as an accountancy student, you’re already on the right track.

ACCA’s Global Talent Trends 2023 report is our inaugural study where we will track key future of work and talent trends in the workplace. Our survey of more than 8,400 professional accountants across 148 countries, highlights several reasons why accountancy is an excellent career option in today’s turbulent times. Respondents cited long-term career prospects as the top benefit of a career in finance and accountancy, followed by the opportunity to gain a recognised professional qualification, the opportunity to continually acquire new capabilities, financial rewards, and the ability to work in different countries and regions.

The research also found that working as a finance professional is a way to contribute to the greater good. More than two-thirds of respondents (69%) agreed that accountants will play a bigger part in helping organisations address sustainability and climate change issues in future. Furthermore, 43% believed that their current role helps either their employer or their clients to contribute to the sustainability and climate change agenda.

In the UK, a career in accountancy offers professionals the opportunity to benefit from hybrid working. Nearly two-thirds (64%) of respondents to the research said that they had a hybrid working pattern. Interestingly, this was a significant contrast with the international trend, since more than half (57%) of respondents globally are based in the office full time.

Challenges and concerns

While the research underlined the value of accountancy as a career option, it also highlighted some concerns that will invariably affect students, as well as qualified accountants. For starters, inflation is eating into accountants’ pay packets and it was the biggest worry for both male and female respondents in every region.

In the wake of the Covid-19 pandemic, burnout is another major issue for the profession, with 61% of global respondents reporting that their mental health is suffering because of work pressures and 88% desiring a better work-life balance. Notably, younger accountants were more likely to struggle with their mental health.

If they want to attract and retain talent,

employers must pay more attention to the mental wellbeing of their staff. Almost threequarters (71%) of global respondents to the survey said they wanted more support from their employer with managing their mental health, but 48% didn’t think their organisation considers employee mental health to be a priority.

The risks for employers of ignoring the impact of inflation and burnout on their employees are heightened by the considerable career mobility that accountants enjoy at present, due to ongoing talent shortages. In the UK, 39% of respondents expect to move to their next role within the next 12 months, and a further 21% over the next two years.

Gen Z (those under 25) are more likely to want to switch than any other generation, with 52% of respondents globally saying they would like to change roles at some point over the next year. The research found that employers looking to retain Gen Z and Gen Y staff members should prioritise career development opportunities and remuneration.

Technology is another challenge for the accountancy profession, with the research highlighting a considerable skills gap. Most respondents (86%) said they wanted more training from their employers while 42% felt overwhelmed by the pace of technological change impacting on their job. Interestingly, despite being so-called ‘digital natives’, Gen Z were the age group most likely to express

concerns about technology. This is likely because their operationally focused roles put them at the sharp end of technological change.

Finally, while the accountancy profession is becoming more inclusive, social mobility is falling behind. Almost half of respondents to the research (49%) reported that a low socio-economic background is still a barrier to progression within their organisation. Younger accountants (Gen Z and Millennials) were likely to hold this view.

What’s next?

For people who want to enjoy a fulfilling career while making a difference, this is an exciting time to be joining the finance and accountancy profession. The world is changing at a rapid rate, continually creating new opportunities for professional accountants. At the same time, there is a growing awareness of the broader contribution that accountants can make to society and the environment.

Ultimately, people are motivated to pursue a career in accountancy for a host of different reasons – from personal development and financial reward through to a desire to help make the world a better place. Few other careers offer all these benefits, as well as a high degree of long-term security. That’s why accountancy is such a smart career choice.

• Jamie Lyon is Head of Skills, Sectors and Technology at ACCA

Integrated question practice = objective test exam success

Practising objective tests early offers many benefits. But you also need some solid knowledge under your belt to get the best from it, says Nasheen Wuisman

Practising questions is a crucial part of effective exam preparation. You should test your knowledge and utilise mock exams to build your confidence and your understanding of the exam format and structure. The more questions you do, the more you will get familiar with the way a topic can be tested. This will, in time, allow you to work through a question quicker – which is a huge step towards managing your time in the exam.

Question practice allows for self-reflection. It provides insight, into which areas of the syllabus you are less confident with. This will motivate you to concentrate future studying on these weaker areas, to make sure you have a sound knowledge in as many of the syllabus areas as possible.

Mocks or practice CGMA objective tests are great tools for practising questions to ensure you retain what you have learned.

Learn before you apply

Relying solely on practice questions, however, will not prepare you sufficiently for the assessment.

To ace objective tests, having a strong knowledge and confidence in the CGMA syllabus is essential. It is key to have a solid handle on calculations, being able to understand various models and be familiar with ethical dilemmas.

Focus on learning each syllabus topic and studying the matters before practising questions. Once you finish studying a topic, you can assess your grasp of that topic by practising related questions to strengthen your understanding and test what you have learned.

Studying by integrating question practice can help consolidate the knowledge you have acquired and increase the chance you will be able to recall it later and under pressure. Practice questions do not just assess your understanding but also reinforce what you’ve learned, thus enhancing retention.

Understanding the breadth of the topic really matters

Practice questions are usually designed to test a specific aspect of the subject and may not cover all of a topic, the rest of which you could be faced with in the actual exam.

You should, therefore, not limit your knowledge to that of the practice questions you have seen but try and establish a sound overall understanding of the concepts in the syllabus. This can be especially useful to answer the problem-based questions in the CGMA objective tests.

Identify knowledge gaps

It is crucial to be well versed in all aspects of the CGMA syllabus for your level. After testing your knowledge, be truthful with yourself and

acknowledge any areas of weakness you may have.

Are there specific areas where you do not feel as confident? Focus on understanding the subject matter that is challenging to you. This can be hard, as not all topics are as easy to grasp as others – and different people have different preferences when it comes to topics. Seek help when and where you can. This exercise of building self-awareness is important to be able to progress.

Familiarise yourself with the CGMA syllabus through CIMA’s CGMA aptitude assessment, which provides exam preparation and practice tools and practice questions.

So, remember…

Practice questions and mock exams can enhance and optimise your learning and exam performance. They are valuable tools to aid your exam preparation.

Before assessing your understanding of a particular concept, you must acquire the necessary knowledge and skills to answer those questions.

Integrate question practice successfully by learning the material before you test yourself, ensuring you understand the topics and are addressing gaps in your knowledge.

Studying on a regular basis, practising

questions and utilising free one-to-one study support if you should need it, will ensure better results come exam time.

Finally

It can be demoralizing when you do practice questions and you get them wrong, it might be you got a question wrong that you previously answered correctly.

It might be you felt you understood a topic well, yet you’ve got a question in that topic wrong. Do not let this demotivate you – it is all part of the process and most people preparing for the exam experience this. It just means you need a little fine tuning; you might just be misreading the question somewhat. Or you may just need to revisit and do a brief review of that topic before coming back to more questions.

Do not allow yourself to get frustrated by this. Try and keep a calm mindset and know that every bit of effort you put in towards getting exam ready – is getting you exam ready!

To get you even more exam ready, CIMA offer a wide range of study support and many more free resources in the CGMA Study Hub for you to choose from.

• Nasheen Wuisman, Senior Manager of Global Academic Progression at AICPA & CIMA, together as the Association of International Certified Professional Accountants

Accountex London unveils 180+ sessions education programme

Accountex London is back at ExCeL on the 10-11 May 2023 for its biggest show yet. Over two days, 8000-plus accountants, in-house finance professionals and bookkeepers from all over the world will be returning to the capital for the free annual event.

“We're so excited to bring you our most diverse programme yet,” said Accountex Portfolio Director Caroline Hobden. “We want visitors to walk away feeling inspired and informed with a new passion for their careers.”

More than 250 top fintech companies will be giving software demos and there will be a diverse CPD accredited education programme to explore. There are also a range of professional associations exhibiting at the show, including AAT, ICB, ACCA, IFA, CIPP and IAB. Visitors will have the opportunity to meet the teams and have their questions answered in person.

Across the 13 theatres, there will be 180-plus different sessions on offer, with two main stages full of keynote presentations. This year, major new themes include sustainability, ESG and climate change; diversity and inclusion; practice growth and resilience; people, talent, culture and wellbeing; and much more.

Another big theme this year is the recruitment crisis, with sessions covering the wage war and why fewer young people are joining the

profession. Some speakers will even be challenging the concept of the recruitment crisis all together.

Among the theatres, the ACCA theatre will be delivering a packed programme of educational content covering everything from tech to talent, including the AAT’s Chief Executive Sarah Beale, who will be part of a panel called ‘Upskilling for the future: Tackling the skills gap’. During the session they will discuss how accountancy employers

continue to fight the effects of a skills gap within the profession. Although technical skills are critical, so too are digital skills, data literacy strategy, leadership and people management. Join the presentation as they dive into what action firms can take to support and nurture their talent and provide the necessary upskilling opportunities that support career progress and business success.

Rachael Prideaux, Founder of Figure Fairy, said following a visit to Accountex London 2022: “Wow! What a show, so many amazing speakers, a vast range of suppliers to meet, and a community of lovely contacts to network with. A real eye opener to the forever changing industry we are in.”

In addition to a packed seminar programme and floor full of exhibitors, there will be plenty of opportunities for visitors to network and connect with the accountancy and finance profession, including several post-show drinks parties. For further information and to apply for a free ticket to attend visit www.accountex.co.uk/london Use priority code ACC225 when booking your ticket.

https://bit.ly/3y27Ejk

DEVELOPING THE SKILLS OF THE SUSTAINABLE BUSINESS AND FINANCE PROFESSIONAL

Quality learning and development (L&D) equips you to serve sustainable business and finance professionals that businesses and society demand.

This report draws from the views of over 800 learners and L&D experts to help identify the features and qualities of good L&D.

Penalising the poor

The current income tax penalty system disproportionally penalises those on low income. How can it be fixed?

Did you know that HMRC dished out 400,000 penalties to people with little or no tax to pay?

Between 2018 and 2020, almost 400,000 people earning less than £13,000 received a penalty for not filing a tax return on time, says Tax Policy Associates.

It said very few of these ‘tax payers’ had any tax to pay, given that the tax-free personal allowance was around £12,000. But, by failing to submit a tax return, they were fined at least £100, and often thousands of pounds. For most of those affected, the penalty represents more than half their weekly income.

Tax Policy Associates believes that the Government, HM Treasury and HMRC have been acting in good faith, and have to date been unaware of the disproportionate impact that penalties have on the low paid.

It wants a change in the law and HMRC practice, and it is making three key recommendations:

1. Monitoring

HMRC should start monitoring late submission penalties across income deciles, (using other sources of data, i.e. not limited to those provided to the Tax Policy Association through a Freedom

of Information request) to provide a more complete picture of the impact on the low paid, including the level of penalties paid (i.e. not just the data on £100 penalties).

HMRC should also know how many penalties are never paid by these deciles and get written off? The Tax Policy Association suspects this is a fairly high proportion – in which case all that is being achieved is stress for the recipients of the penalties, and administrative cost for HMRC. It said armed with that data, HMRC should aim to reduce the disparities identified and report annually on its progress.

2. Rework processes

The data reveals that there is a significant population of self assessment ‘taxpayers’ who are being required to complete an income tax self assessment, are charged a late submission penalty, but turn out to have no tax to pay. HMRC should analyse this population with a view to determining:

• How many of these are taxpayers who in retrospect should not have been required to submit a self assessment return at all.

• Whether that could have been determined in advance, on the basis of the information HMRC possessed at the time.

• If it could be determined in advance, what additional processes should be put in place by HMRC to prevent such taxpayers being required to submit a self assessment in the future.

• If there are small changes which could impact this population’s tax compliance, for example changing envelope labelling (although it may be this work has already been done).

3. Cancellation

The final recommendation is that fixed rate late submission penalties should be automatically cancelled (and, if paid, refunded) if HMRC later determines that a taxpayer has no taxable income. Most likely that would be after a subsequent submission of a self assessment form; but no further application or appeal should be required.

Similarly, there should be an automatic abatement of penalties (by, say, 50%) if HMRC determines that a taxpayer has a taxable income but it is low (for example less than £15,000).

In both cases, an exception could be made where HMRC can demonstrate that the failure to file was intentional (i.e. for truly exceptional cases, and not applied by an automated process).

The Tax Policy Association anticipate that creating such a cancellation and abatement rule may fall outside HMRC’s “care and management powers”, and therefore may require a change of law.

• Tax Policy Associated Limited is a not-for-profit organisation. Read the full report at https:// tinyurl.com/us8x5n3u

Making learning better

James Carter discusses how online platforms can continue to improve the online learning experience for trainee accountants

The journey of a trainee accountant involves continuous learning, which can become monotonous and make it difficult to maintain motivation. When working online, this can become even more evident, as remote learning can rely heavily on the same formats if done incorrectly, and add to the monotony.

However, it’s clear that online training is here to stay, so ensuring that the experience is engaging and optimised for students is key for the longevity of the technology. For this reason, we conducted research to predict just how eAssessments will look come 2027, gaining insights from students and experts with experience in delivering professional qualifications online.

The here and now

Out of the 150 students who replied to our survey,

only 13% said that they preferred in-person exams. This is likely to be because online platforms offer flexibility in terms of location and time and seem a natural progression given we are in a digital age.

With such a positive response to the integration of online learning and remote assessment, it is important to deliver a platform that works for your online assessment strategy rather than making your strategy fit the platform.

Particularly with accountancy qualifications, the importance of exam preparation cannot be underestimated – but it isn’t always included in online learning platforms. This feature has been invaluable for learners using Rogo, and we believe it is key to improving the experience for

trainee accountants. Past papers can be easily accessed and structured in multiple formats, from multiple choice questions to questions that require a more complex answer.

Looking to the future

The advancement of online learning and assessments doesn’t show any signs of slowing down and with technology developing as fast as it is the boundaries are limitless. For example, AI could help students who struggle with technical difficulties by providing virtual solutions to problems, eliminating the need for live support and streamlining the experience.

The training for accountancy qualifications is intended to mirror the professional accountancy experience, so is deliberately diverse in its testing formats. To ensure the best online experience for trainees, Rogo works to offer continuously evolving features that put learners in the best stead to succeed.

To find out more about Rogo’s benefits for accountancy qualifications, visit www.getrogo. com

• James Carter is CEO of Rogo

YOUR WELLBEING HUB

Maintaining a positive mindset while studying can be challenging. Our wellbeing hub provides a range of resources and podcasts from our wellbeing ambassador to help support you throughout your ACCA journey.

Why students fail AA

Brigita Petrova has some sage advice on how to pass an exam that some students seem to underestimate

Always “as expected”, always “not too bad”, yet always bottom of the list for Skills level pass rates. Here is why and how you can come out successful in your next attempt.

Reason for failure

Thinking AA is a “theory” paper, due to only 30% objective testing (OT) marks, as opposed to 60% in most Skills papers.

Spending too much time trying to learn the knowledge, doing very little question practice and often starting it too late.

Focusing on Section A type of questions due to being familiar and comfortable with this type of practice from other subjects. Having some good ideas re Section B questions but not trying to put them down in writing.

Not understanding the subject matter, attempting to memorize loads of tests and sample answers. The exam result of this is often a big mess and having to re-sit multiple times.

Not understanding the question requirements and going off-tangent, providing the right answer but to the wrong question. For example, in a question asking the following: ‘Explain the steps the auditor should take to confirm the accuracy of the purchases and payables flowcharts and systems notes currently held on file.’ The number of students providing substantive procedures on purchases/payables is usually much higher than those applying it to the company’s internal controls.

Not explaining otherwise good points, resulting in scoring only half of the marks on offer. Most requirements ask to ‘explain’/‘identify and explain’ etc. and yet many students do the ‘identify’ but not the ‘explain’ bit.

Trying to explain ‘why’ but being vague or not going far enough. E.g. ‘Orders for unavailable items might be accepted and subsequently cancelled’ is not good enough, as it does not show the potential harm for the company. Or saying ‘The auditor will check documentation to confirm if development cost is correct in the FS’ does not make it clear what documentation and how exactly it will be checked, neither does it make clear what the correct treatment of the cost should be.

Poor time management, spending too long on the OT section and not having enough time for the 70 marks in the written part of the exam.

How to win

Prepare for a “written” but “practical” paper, where most (around 70%) of the marks in the whole exam come from application of core knowledge.

Learn well the core knowledge needed (tutor written condensed notes work well) but spend more time on doing past exam questions and don’t wait till revision starts to attack them.

Given the split of written to OT marks is 70:30, ensure you split your question practice at least in the same proportion. Maybe even try 80:20, if writing has always been too challenging in other subjects and you often left those marks out in the past.

Ensure you understand the audit process with its main stages, think about the meaning of what you learn and the purpose of the procedures you do. Once you understand something, it is much easier to remember and explain it, and what is critical to AA – to apply it in context. You don’t need an audit background, but if struggling with understanding, then having a good audit tutor helps a lot!

Do not rush when reading requirements. Think carefully about what is actually being asked as opposed to what you wish/expect to be asked. Pay attention to the verbs used and don’t provide a list of a few words per point, when you are required to explain something.

Think about the “what” and the “why” in your answer. For example, in a requirement asking to ‘identify and explain N deficiencies in the client’s internal control system’, so… ‘identify’ needs you to say what their control weakness is (taken straight from the scenario) and ‘explain’ needs you to say why this is a weakness (your understanding of how this could harm the company).

Be precise and specific. The deficiency explanation works if you go a tiny bit further, saying something like ‘orders for unavailable items might be accepted and subsequently cancelled, leading to upset customers and lost goodwill’. The test on development cost could say ‘Obtain a breakdown of the development cost and inspect some invoices, to assess the nature of the expenditure and confirm whether any of them relate to research and should be expensed’.

At home, practise under time pressure (one mark = two minutes), especially during revision. In the exam, watch the clock and always go for the easy marks first!

• Brigita Petrova is a tutor at LSBF

Doing blended well

Cath Littler explains how you can get the best of both worlds – in-person and online – as you progress your studies

– you study in advance of a taught session. This frees tutors so that they can focus on difficult concepts rather than wading their way through things that you could learn on your own.

In fact, one of the weaknesses of fully tutorled learning is that some tutors focus on difficult numerical tasks and concepts, often because of limited delivery time, and many students don’t realise that they have to actively learn facts and simpler concepts more independently. That’s one of the reasons accountancy students traditionally do well at numerical tasks but less well on knowledge and writing tasks – everyone is happy to practise number questions but are less motivated when it comes to learning facts and writing about them. Well-planned blended programmes ensure that all the knowledge that you need is covered in sufficient depth and with sufficient practice.

Actively engage

Many students, tutors and managers have recently embraced the benefits of online learning, some to the exclusion of in-person delivery. I even learn to play my piano via Zoom, much to my teacher’s frustration, because it saves me significant travel time in my packed Saturday morning schedule. There’s no doubt that it is more convenient to learn online, with reduced travel costs as well as time and, for some learners, the removal of issues such as childcare. But it’s not as good as learning in person. For my piano lessons, it makes it harder for my tutor to help with timings because of the short transmission delay; for subjects like accountancy, online learning limits the ability to discuss topics and share experiences. Being in the same room as other people and engaging with them improves collaboration and is vital for mental health and wellbeing.

As a result, to make the best of both worlds, a blended approach has become more and more common. However, the key to success is to do blended well.

What makes a blended programme good?

A well-planned blended learning programme

will be fully mapped out with clear plans of what topics will be delivered remotely and what will be delivered in a classroom. Confusingly however, some programmes sold as ‘blended’ are actually online lectures mixed with self-study – there is no classroom-based study.

The best type of blended learning allows you to independently study when you want to and how you want to, but still have access to a tutor and face-to-face sessions. The best planned programmes allow you to learn in a flipped way

So independent study, face-to-face sessions, a clear structure to the learning programme and a balanced approach to numerical and factual learning are the things you need to look out for when choosing a blended course. Then, to make the most of it, you need to fully engage with the learning materials and complete all the practice questions, especially the difficult ones and the written tasks.

After all, as my piano teacher keeps telling me, no practice means no progress!

• Cath Littler, Head of Learning (Accounting) at Mindful Education

Cath Littler has a wealth of experience, having coordinated the AAT’s largest FE training provider, and as a published author. A former member of the AAT’s Learning and Development Board, she has a track record of improving exam pass rates by 50%, by reviewing teaching methods and delivery order.

In her current role as a trainer and consultant for the AAT, Cath is involved in a wide range of AAT projects including External Quality Assurance and End Point Assessing.

Cath also leads Mindful Education’s accounting team, and ensures the highest standards across their accounting offering.

Mindful Education creates award-winning online courses and apprenticeships which set a new standard in the digital delivery of education. If you are interested in studying an AAT qualification using the Mindful Education Online and On Campus blended learning approach then visit the Mindful Education website to find your nearest provider.

Award-winning AAT courses and apprenticeships

Taxing times

Ukrainian student Vlad Kupriienko defies Russian invasion to join ranks of ADIT graduates

Vlad Kupriienko, a senior associate for PwC Ukraine in Kyiv, graduated from the ADIT (Advanced Diploma in International Taxation) following exams in December.

He was one of the 570 students to sit 609 online exams, despite his preparation being thrown into turmoil by the invasion in February last year.

Vlad, 27, was visiting his mother-in-law in the Dnipro region at the time and was due to return home to Kyiv on the day of the invasion. Instead, the couple stayed for several months, with the region subject to numerous missile attacks from Russian forces.

He said: “She lives there alone, not far from a combat zone. In the early months of the war, it was unclear how the events would unfold, so we couldn’t leave her for quite a long time.

“A large part of my family, including parents, currently lives in Sevastopol. It was autumn 2021 when I saw them for the last time, and I can’t say how soon I’ll be able to see them again.”

He added: “It has definitely been mentally difficult for everyone. Now almost everyone in Ukraine lives with regular missile shelling and electricity outages – yet, of course, totally unmatched to what it’s like at the front line.”

When the couple were able to return home, they still found regular reminders of the war in Kyiv.

Vlad said: “We live not far from a power plant which is regularly targeted. One day missile debris landed in the children's playground nearby our house. So, however far you seem to be from the war, you never really are.

“Being neither a combatant nor internally displaced person, I’ve never had ‘direct touch’ with the war. However, it is just a constant feeling that something has unequivocally changed, that there is no turning back to the previous life.

“Yet Ukrainians have become stronger, more mature, determined and united than ever before.

I think people are now rethinking their existence and just try to live in the moment and value simple, ordinary things.”

Despite the ongoing turmoil, Vlad continued to study, putting in many hours of extra preparation for his exams in December.

The hard work paid off when he received his results in early February, but Vlad says he is not done yet. He now intends to join the Chartered Institute of Taxation as an International Tax Affiliate and is considering studying for further qualifications to expand his professional services repertoire.

He said: “I certainly consider it a great accomplishment. I remember vividly hearing about the ADIT qualification for the first time and I thought I would consider it as a personal triumph if I managed to complete the full set.

“I feel grateful. To live on and take exams can now be considered a luxury that few can afford.”

In December’s exams, 377 students passed at least one exam, with 73 students, including Vlad, joining the growing ranks of ADIT graduates by successfully completing their third ADIT module. Eleven students also achieved the distinction grade for excellence in their exams.

The ADIT qualification is now held by 1,762 tax practitioners in 86 countries and territories around the world, including more than 300 who have chosen to subscribe with the CIOT as International Tax Affiliates.

CIOT President Susan Ball said: “The ADIT exams are not easy, so to attain the full qualification amid the continued turmoil we are seeing in Ukraine is a hugely impressive achievement. On behalf of the CIOT, I extended warm congratulations to Vlad and the many other ADIT students around the world who have passed their latest exams.”

The following candidates will also receive awards for their achievements in the exams:

• Matthew Birchall of Macclesfield, who is employed by HMRC in Salford, was awarded

the

for the best overall performance in Module 1 Principles of International Taxation.

• Chia Chiang Tan, of London, was awarded the Raymond Kelly Medal for the best overall performance in Module 2.09 United Kingdom option.

• Scott Huxford of Gerrards Cross, Buckinghamshire, who works for HMRC in London, won the Tom O’Shea Prize for the best overall performance in Module 3.01 EU Direct Tax option.

• Priyanka Dhamotharan of Chennai, India, landed the Croner-i Prize for the best overall performance in Module 3.03 Transfer Pricing option.

• Mashaal Amir Khan of Sharjah, UAE, who works for Deloitte in Dubai and sat Module 3.02 EU VAT option, is awarded the Worshipful Company of Tax Advisers’ Prize for the highest mark in Module 3 (all other options).

Heather Self Medal

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A question for Tom

Our man Tom Clendon shows how NCI and goodwill interact

Question

Please could you clarify why when NCI is measured as a proportion of net assets that the goodwill arising is only attributable to the parent company. I know this is true, but I just don’t quite understand why. Could you please explain?

Tom’s answer

Good question. Let me just reiterate. It is true that when NCI is measured as a proportion of net assets that the goodwill arising is only attributable to the parent company.

The significance of this means that the impairment loss on the goodwill will only reduce group retained earnings and none will be charge to the NCI. It also means when we are dealing with group exchange differences on the retranslation of such goodwill there will also be no impact for NCI.

Illustration

Let me illustrate with numbers to prove the point.

Let’s take an 80% investment in a subsidiary that cost $200 and where NCI was measured as a proportion of the net assets which were $100.

The correct way to calculate goodwill is as follows:

However, please consider the following explanation of how that $120 goodwill has arisen.

The parent has paid $200 for the controlling interest in the subsidiary. It has paid $200 for an 80% stake in the $100 net assets of the subsidiary. So the parent has paid $200 and in return has only got a share of net assets of $80 (80% x $200). So, when comparing what the parent paid ($200) with what the parent got ($80) we see that the premium that it has paid is $120. This goodwill therefore just belongs to the parent (read that again – it should make sense).

In conclusion

I give you this explanation to give you absolute certainty that when NCI is measured as a proportion of net assets, the goodwill is attributable to the parents only.

It still remains the case that where NCI is measured at fair value then the goodwill arising will be in full and so any impairment loss or exchange difference will impact the NCI accordingly.

I urge you always to calculate goodwill the proper way to show the introduction of NCI however it is measured.

• Tom Clendon FCCA is an online lecturer teaching SBR. He loves WhatsApp and can be messaged on 07725 350793. See www. tomclendon.co.uk

Stay ahead of the game

Zoe Lacey-Cooper has four good reasons why your CPD isn’t just a ‘tick-the-box’ activity

with live and video on-demand content readily available online to watch, listen and learn at your own convenience.

3. Up-to-date knowledge is key

Video on demand is great, so you can watch in your own time to fit around your busy daily life or even face-to-face events to network among your peers.

CPD is far more than just a tick-thebox exercise. Your CPD should be an invaluable support, helping you provide even greater value and support to your clients. And, most importantly, CPD allows you to develop your key technical skills by learning from the top experts in the industry.

So how can you make your CPD work better for you?

1. It is a vital component of your career development

There has been a massive shift in attitudes when it comes to CPD. Once seen as something of a nuisance, we’ve noticed from chatting with members that they are now placing more value on the content they complete, viewing it as a vital and valuable part of their career development.

2. Don’t lose the will to learn! Identify the way you do it best

The nature of CPD is that it is ‘continuing’, meaning it is not advisable to leave completing your annual requirement until the last weeks in December. If you do, it will become a burden, you will put yourself under immense pressure and you won’t extract the value from the content you complete.

Access to quality CPD has never been easier

Even those with the most advanced qualifications need to keep informed of new trends and products, as well as important regulatory updates that the industry needs to be aware of. These elements are constantly changing, so it’s important to remain in the loop and build on what has been learnt from the study days.

Also, accounting firms with competent and qualified staff is a far more attractive prospect for customers and is more likely to gain and retain business.

4. The content is transferable to your day job

It is hugely important that you can take away some key learnings from the activities you complete and apply it to your job.

Summary

Change your mindset and don’t make CPD a burden. Most importantly, don’t make CPD a box-ticking exercise. You have worked hard for your accounting qualification, so make sure that you are constantly building on your knowledge. Be on top of your game, know all the updates and changes that are coming up and make yourself the best accountant for your clients.

It’s simple – don’t leave it until the end of the year. Make a plan of the subjects and content that you want to complete throughout the year. Decide on the best way that you like to learn. Live online webinars are great for interaction and gaining direct access to experts to ask questions.

Plan ahead. Check out your favourite CPD provider website and look at their schedule for the year ahead. Most will have these published three to six months in advance. If you have a subscription to a CPD provider like CPDStore you can easily enrol onto all the courses that are relevant to you.

Be proud of the knowledge that you are building – it will make you a better accountant for your clients.

About CPDStore

CPDStore offers dedicated UK online CPD for Accountants. We work with the UK top accounting experts to deliver CPD ‘need to know’ core technical, compliance and practice skills online.

As mentioned before, CPD shouldn’t be a tickmaking exercise! CPDStore focus on curating the best content by working with top experts and popular names including Rebecca Benneyworth, Peter Rayney, HMRC, the organised crime department and many more.

We create interesting and interactive sessions where you can enjoy and learn and not forgetting the fact that you get direct access to ask the experts as many questions as you like.

Check out the website at www.cpdstore. co.uk and click on the CPDClub tab at the top for a very special offer of £19.99 a month for ‘allyou-can-eat’ CPD. We run live sessions twice a week and there is access to over 300 videos on demand – all CPD accredited.

• Zoe Lacey-Cooper is MD at CPDStore

Accounting for goodwill

Our AAT guru Teresa Clarke explains how to account for goodwill when a partnership changes, a topic particularly relevant to those studying AAT Level 3

Goodwill is the difference between the value of the net assets of a business and the value of the business as a whole. For example, a window cleaning business may only own a bucket and a sponge worth £3.50, but the business could be worth £5,000 to a buyer because of the customer base and reputation.

In a partnership, two partners may have spent 10 years building up a business and if another partner wants to join, they do not want to just give him a share of that goodwill. This is why we share the goodwill between the current partners before the new partner joins and the new partner buys his share of that goodwill.

The same applies when a partner leaves the partnership. They want their share of the goodwill that has built up over the years by the partnership. The goodwill is shared between the existing partners before the retiring partner leaves taking his share with him, and then the remaining partners ‘buy back’ the goodwill.

Example

Peter and Oksana have a window cleaning business, sharing the profits equally. The goodwill has been estimated to be worth £5,000. Jane wants to join the business and is prepared to invest £2,000 into the business. The new profit share ratio will be 2:2:1 when she joins with Jane receiving the lower share.

Before Jane joins the business, we must share the goodwill between the existing partners using their current profit share ratio. We give the existing partners their share of the goodwill and add this to their capital accounts. We are increasing their capital with the goodwill, so these are credit entries in the capital accounts.

Now Jane can join the business. She deposits her capital into the business bank account.

The debit entries go into the Goodwill account which is a temporary account, and no physical money is moved.

The Goodwill account is only temporary, so we need to eliminate this by sharing this between the new partners, in the new profit share ratio.

The accounts can now be balanced off.

The same step-by-step process is used for a retiring partner. Use these steps to try some goodwill questions yourself:

1. Draw up a goodwill account and debit this with the goodwill valuation.

2. Debit the goodwill account by sharing it between the existing partners using the profit share ratio and credit this to their capital accounts.

3. Eliminate the goodwill by crediting the goodwill account and debiting the capital accounts using the new profit share ratio.

4. Balance all accounts.

Remember, the goodwill account is a temporary account, no money is physically moved, and the account is always empty when the calculations are complete.

If you like this guide, you might also like my AAT revision workbooks. Available from Amazon in paperback or as eBooks – see https://tinyurl. com/5e6xatty

• Teresa Clarke FMAAT

Five CV template tips for PQs

GAAPweb has some top tips on how to land that dream role – and it all starts with your CV

With recruiters spending less than a minute on average scanning your CV, every word must earn its place on the page. Creating a bespoke CV for your specific part qualified role will ensure that it stands out. Demonstrating how your skills go beyond the desired attributes in the job advert will aid your progress to the interview stage.

Utilise your CV to highlight your relevant experience and expertise, stressing the achievements within your career. GAAPweb have curated some PQ accountant CV template tips to help those kickstarting or developing their financial career.

1. Personal Statement

Your personal statement should be four or five sentences maximum, highlighting your expertise and demonstrating how your skills align with the role. Make it short, succinct, and tailored specifically to the job advert in question to catch the eye of the recruiter.

Example

“A part qualified, ACCA student, with two years’ experience working as an Assistant Accountant for a global construction company. Supporting the Head of Finance with revenue reporting, monthly forecasts and quarterly management accounts, as well as performing intercompany reconciliation and accounting adjustments.”

2.

Skills

Your personal statement should be followed with a list of hard skills and accreditations tailored to the job advert. The skills section of your CV is for hard professional skills that demonstrate that you’re quantifiable for the job, moving away from soft transferable skills, such as ‘time management’, ‘organisation’, and ‘teamwork’.

Example

Quantifiable skills:

• Expert knowledge of BACs and CHAPs payments

• Conversational Spanish

• Advanced Excel Skills

• Experience with Sage 200C

3. Employment History

Your employment history should be listed from your current/latest position onwards. Using a uniform structure throughout, ensure that your job title, company name, the dates you worked there, and a summary of your main achievements are all included. Using active language, such as power verbs, will help your achievements catch the eye of the recruiter, for example, instead of saying ‘made’, ‘fixed’ and ‘did’,

use ‘developed’, ‘resolved’ and ‘conducted’. When discussing your role, focus on ways in which you helped your last company, whether it’s the impact you had on the company’s annual turnover or how you increased the efficiency of the finance department.

Quantifying your skills is crucial. List your skill, highlight your expertise, and back up it up with stats and figures (if possible), finishing with a link back to your desired role.

Example

Accounts Assistant | [Name of Firm] | May 2020 – Present

• Drafting quarterly management accounts, arranging monthly forecasts

• Conducting accounts receivable,

supplying invoices and weekly credit control

• Dealing with payment enquiries, processing bank receipts, arranging client payment runs and bank reconciliations

• Preparing sales invoices and purchase ledger

• Managing expenses for the business Achievements:

• Rewarded the “Finance Department: Best Employee” award twice in one year due to strong analytical skills

4. Education

Just like your employment history, start your education section with your most recent qualifications. If you’re a recent graduate, it’s worth discussing the achievements and skills acquired during your education, referencing the job advert.

Here at GAAPweb, we suggest listing your latest one/or two educational achievements, such as your degree and the professional qualification you’re studying for (if applicable).

Example ACCA – Part qualified; three papers left to study University of Southampton | BA Hons Accounting and Finance (First) | Sept. 2014 - May 2017

5. References

The go-to ‘References available upon request’ statement isn’t actually necessary on your CV; however, if you choose to include it, refrain from including any personal details, including referees’ names or contact details.

With analytical skills being a key part of an accountant role, we recommend asking a trusted friend to double check your CV before submitting it. For more CV tips go to GAAPweb careers

• Thanks to GAAPWeb for this article

Dear Karen

Ask PQ’s very own agony aunt Karen Young when you need advice from a real expert. Email your dilemma to graham@ pqmagazine.com, and he will pass on the best ones to Karen

THE DILEMMA

How do I build a network that will truly benefit my career in accountancy?

Sweden top European country for women to work in 2023

Britain in joint 12th place with Germany, with Turkey bottom of the pile

Scandinavian countries took the first three places in Reboot Online’s analysis of which European countries offer the best prospects for female professionals.

Sweden was the best place for women to work, followed by Finland and Norway.

For International Women’s Day (8 March) Reboot Online evaluated a variety of factors such as economic and leadership role opportunities, creating a pointsbased index with a top score of

300 points. Sweden scored 241.4 points.

The UK ranks in 12th place (the same as Germany) with 165.5 points. The study found that the UK has the highest number of women in leadership positions of all the European countries studied, taking into account wage equality for similar work and estimated income –that’s 317 active duty leadership positions in 2022. As a result, it scored 100 points in the index.

However, researchers said it is disappointing that the UK only has 11.6 paid full weeks of maternity leave, which equals a score of 6.9/100 for this category.

In last place is Turkey, scoring 31 points out of 300. Despite its poor performance, the country has surprisingly earned more points for women in leadership (27.6/100) than countries known to champion gender equality, such as Austria (13.8/100 points).

For more about Reboot Online go to https://www.rebootonline. com/

KAREN’S RESPONSE

Building a strong professional network is one of the most important things an accountant can do, especially if you are at the beginning of your career. What I mean by a strong network is one that is comprised of a diverse range of people from different walks of life and with varying degrees of experience.

For example, someone who has been an accountant for many years will have invaluable wisdom and problem-solving skills that you can learn from to inform your own career. As well as this, connecting with a professional who has just started out but previously worked in a completely different industry can bring their unique insights and perspectives to the table.

To effectively expand your network, I suggest you attend industry events, utilise social media platforms such as LinkedIn where you can join professional groups, join online forums and interact meaningfully with your peers and colleagues. Since so much communication happens digitally today, optimise your social profiles so that they are up to date and present you as approachable. Whilst networking successfully takes time and effort, it is well worth it.

Consider what it is specifically you want to get out of networking and adjust your goals accordingly. Overall, building a strong network will enable you to enhance your interpersonal skills, increase your visibility, gain first-hand knowledge and discover new opportunities.

• Karen Young is a director at Hays. She is passionate about helping people to find the right job and companies the right person

In brief

The female entrepreneur has arrived

Women founded more than 150,000 new companies last year despite the challenging economic environment. The resilience of female entrepreneurs is underlined by data that shows that female founders started more firms in 2022 than ever before. The figures are published in the Rose Review Progress Report 2023, which sets fresh goals to provide record levels of support for female entrepreneurs and drive up the numbers of female angel investors.

The Review illustrates the advances made since it was launched in 2019. More than

twice as many companies led by women were created last year as in 2018.

Check out the review at https://tinyurl.com/yhahpysm

The £18bn corporation tax hike

The UK’s business community will be under pressure to find an extra £18bn a year of corporation tax payments by 2025/26, following a 31.58% proportionate increase in the Corporation Tax rate due to take effect in April.

Corporation tax, currently 19%, will rise to 25% on 1 April 2023 and will raise an estimated additional £12bn in the first year, rising to £18bn

by 2025/26. UK businesses currently contribute around £68bn in corporation tax a year, equating to 2.9% of UK GDP.

Accounts correction

Insurer Beazley has been forced to republish its balance sheet after the Financial Times found a big error in its annual report. Journalists found that Beazley had overstated the value of its ‘net assets per share’ – so instead of them being 420.8c. they were actually 386.7c.

The problem is the company used this measure as a central performance indicator and top executives’ rewards were based on it!

The PQ Book Club: books you should read

The Negotiation Book: Your Definitive guide to successful negotiating, by Steve Gates (Capstone, £14.99)

As author Steve Gates explains, negotiation is fundamental part of your life and has a big impact on those around you. So, the better you get at it better it will be for you, your family and your business. Remember, being good at it means you can solve something as trivial as resolving bedtime tantrums with children or as important as delivering peace during a war!

Gates believes many great negotiations go unnoticed, so this is not the place for you if you want recognition

and gratification. He says: “Negotiations are not interested in winning and glory.” What you will need to succeed is a patience and a tenacity that is motivated by curiosity rather than competitiveness.

He stresses that negotiation is very different to selling, and the major difference is listening.

A big worry for some is the fact that there are no rules when it comes to negotiations. But there are limits, as total empowerment leads to exposure and risk. Gates also emphasises that price isn’t everything, either. You have to measure the total value of any negotiated deal.

The world of virtual negotiating has also arrived. The communication here is different and there are subtle changes in how these meetings go. Discussions tend to be more linear – your turn, now my turn, who will summarise? It is harder too to build trust in the virtual world.

PQ rating 5/5 There is an art to negotiation and in his third edition Gates ensures you don’t have to believe in the dark arts to become a good negotiator. Like all things a bit of prep and planning goes a long way.

ChatGPT can’t pass ICAEW exams – yet

At a recent meeting with a leading tutor the rise and rise of ChatGPT was a big topic of conversation. However, no matter how clever the AI is it isn’t quite up to passing the ICAEW exams! He explained when asked to sit one of the recent papers the chatbot only managed 47% – still a bit short of a pass.

We decided to ask ChatGPT if there are too many accountants in the world, and here’s it’s very politically correct reply:

“It is difficult to say whether there are ‘too many’ accountants in general, as the demand for accountants can vary depending on a number of factors such as the state of the economy, the

No chatbots here please

City firms including KPMG and JP Morgan are restricting the use of ChatGPT among their employees, as the issues around privacy continues to grow, it has been reported.

According to the Daily Telegraph, there is genuine concern over the sharing of sensitive financial information via AI chabots, particularly among traders.

Other firms have issued warnings and guidance on how staff can use the new technology at work.

’

region or industry, which could lead to increased competition for jobs and potentially lower salaries. On the other hand, there may be shortages of accountants in other areas, particularly if there is a high demand for their skills and expertise.

size and growth of businesses, and changes in financial regulations.

In some cases, there may be an oversaturation of accountants in a particular geographic

It is important for individuals considering a career in accounting to research the job market in their region and industry to get a better understanding of the demand for accountants. It can also be helpful to network with professionals in the field and seek out internships or other experiential learning opportunities to gain practical experience and make connections.”

Oh yes he is…

PwC chair Kevin Ellis recently featured in City AM’s ‘The Square Mile and Me’. So what did we find out? He was recently booed when he introduced PwC’s Pantomime in the West End. Now in its 36th year, the panto stars PwC staff and he says “is definitely not something for the easily embarrassed”.

His favourite pub is The Anchor, near London Bridge, where he started work. His favourite musician

Accountants in films

The Battle of the Sexes is a 1959 British black-and-white film starring Peter Sellers as Martin, a timid accountant in a Scottish Tweed weaving company. His world is turned upside down by a brash modern American efficiency expert, Mrs Barrows, whose ideas threaten his way of life. She wants to replace

is Billy Joel and his coffee order is a Black Americano. Oh, and he rotates his newspapers.

The one thing he wants to change is youth unemployment in London, which continues to be a challenge. He explained his firm is working with universities and colleges, including London’s Queen Mary University, to create more affordable routes into work. It’s encouraging to see the increased focus on social mobility across the City through initiatives such as Progress Together, which is led by the City of London Corporation and is focused on improving socio-economic diversity in financial services. It’s a key role of businesses in the city.

There is even a new accountancy adding machine introduced, which eventually breaks! Murder is afoot, but our accountant can’t go through it. However, he has done enough to make the American return home and he wins the ‘battle of the sexes’.

the island crofters with a factory and Tweed with synthetic fibres.

The film got great reviews and even made a small profit –£10,894.

WE V E G O T T H E L O T

The Bookkeeper Rises

‘The Bookkeeper Rises’ is a fantastic new book from Jo Wood and Zoe Whitman, of The Bookkeepers’ Podcast and the 6 Figure Bookkeeper Community fame. We have three copies to give away this month.

If you want to build a successful bookkeeping business that works for you and gives you the life you really want then this is the book for you! It full of great inspirational stories, too.

To be in with a chance of being sent one of our three copies simply email us at giveaways@pqmagazine.com with your name and address and we will put you in the hat for a chance to win this prize. Head up your email ‘The Bookkeeper Rises’.

More from the PQ Book Club

Our book giveaways are back by popular demand! We have four different books to give away to four readers this month from our Book Club. Up first is ‘Corporate Explorer: How Corporations beat Startups at the Innovation Game’. We also have ‘How the Future Works: Leading flexible teams to do the best work of their lives’, and Thijs Launspach’s ‘Crazy Busy’. Finally, there is ‘The Price Model Revolution: How Pricing Will Change the Way We Sell and Buy On and Offline’. To win one of these books in our PQ Book Club lucky dip just send an email headed ‘Lucky dip’ to giveaways@pqmagazine. com, along with your name and addresss.

Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway entries must be received by Friday 21 April 202. The main draw will take place on Monday 24 April 2023.