PQ magazine, April 2021

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April 2021

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IN THIS ISSUE

April 2021

A note from the Editor Welcome to the April issue of PQ magazine. You will notice we have had a shake-up of our columnists this month. We now have not one but two women in our regular slots. I want to say a big thank you to Zoe Robinson, who is stepping down as one of our regular contributors. She has just been made MD of Kaplan Professional Qualifications, so is going to be a bit busy!

Stepping into her shoes is Kaplan’s new director of learning Lisa Nelson, so welcome Lisa. Also say a big hello to Eintech’s Anna Kate Phelan, another new columnist.

The PQ awards deadline for nominations is just days away – 19 March.

Everyone shortlisted will get a goodie bag, and of course the chance to win a much-coveted PQ trophy. So do get nominating. You can download the nomination form at https://tinyurl.com/2o9y3xmx Finally, remember that sometimes it’s the small things that make you smile. I hope you read the story about Shoe Zone announcing its new finance boss. Terry Boot is replacing a certain Peter Foot. Boot joins the Shoe Zone from Jones Bootmaker – of course he does!

Graham Hambly, Editor and Publisher, PQ magazine News 04 ACCA March exams Time management still the major concern for students 05 AQ2022 Students given more time to complete AQ2016 06 Audit separation FRC issues fresh advice to Big 4 firms 08 International standards IAS 1 and IAS 8 are amended 09 Xero offer Become a Xero Certified Advisor – for free!

10 CIMA exams Institute offering free resits to students who fail the Operational level exams 12 Tech news Business leaders are putting their trust in the robots, says new survey

Features, etc 14 Have your say ACCA could offer more help to those sitting CBEs; one PQs ACCA exam nightmare experience; plus our social media round-up 16 Gender equality As the recovery from Covid begins, ACCA is campaigning against the inequality that is hampering businesses across the world

21 Remote exams Check out Oxford Learning’s great guide on how to successfully sit remotely invigilated exams

37 Careers Life at Eintech; our Agony Aunt Karen Young has more wise career advice; and our Book Club review

22 ICAEW spotlight Institute launches its new range of digital learning materials

38 Fun The lighter side of life; and more great PQ giveaways

23 The revision phase How to revise effectively in just 30 days

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25 ACCA’s FR exam To impair or not to impair? Leading lecturer Sarah Ardiles explains all 26 Performance management Why the ‘People’s Car’ broke down: lessons in target costing and non-financial indicators 27 Viewpoint CIMA’s Andrew Harding explains how the role of the finance leader is changing 29 IR 35 What is a Personal Service Company (PSC)? Neil Da Costa explains all – and keeps it simple 30 Study advice How to develop that all-important work ethic 32 AQ2022 We explain how the AAT syllabus is changing, and what it all means to AAT studiers 33 AAT Level 4 How do you score marks in the narrative written tasks? Gareth John knows

17 PQ Awards 2021 Time is running out – so you really need to get your entries in now

34 Ethical dilemmas How you should act when contract confidentiality is at stake

19 Xero offer PQ has joined forces with Xero to offer you the chance to add to your CV

35 Test bank Testing your knowledge of Year End and other adjustments

20 Study advice How to bounce back from exam failure

35 Home study Top advice on how to stay focused and motivated

The columnists Lisa Nelson Our new columnist focuses on different ways of learning – so how do you do it?

4 Robert Bruce Pandemic inspires bold new ways of thinking 6 Prem Sikka Why financial regulators need to develop their own standards 8 Anna Kate Phelan Our new columnist explain how ‘alone time’ can help you deal with lockdown 10 Mike Day Business is evolving at a faster pace than ever before 12

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To subscribe go to www.pqmagazine.com

PQ Magazine April 2021

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LISA NELSON Learning styles and you

My name is Lisa Nelson and I’ve recently taken over from Zoe Robinson as Kaplan’s Director of Learning. Consequently, I’ve been given the privilege of taking on this column. A different perspective perhaps but the brief remains the same: to share with PQs what’s happening in the world of professional education, and what that means for you.

For my first outing I thought I’d take on the often misunderstood subject of learning styles. A quick internet search will reveal a raft of guidance trying to put you into one of three categories of learner: visual, auditory or kinaesthetic. The good news is that any reflection about yourself as a learner is positive, it’s called metacognition, or thinking about thinking. In this context, thinking about learning.

But now the bad news: you are no more a visual learner any more than an auditory one. This is where the misunderstanding arises. There is no ‘quick quiz’ that can diagnose your learning style. Some people have a better visual memory but that does not mean you should focus your learning solely on looking at pictures or drawing mind maps.

All learners take information in through each of their modalities – sight, hearing, touch, taste and smell – and you should study using all of them. If you want to know more, search out ‘Why learning styles don’t exist’ by Professor Daniel Willingham.

Lisa Nelson is Director of Learning at Kaplan

Time management still the key to exam success Time management is still the biggest problem for ACCA March exam sitters, according to a poll from Open Tuition.

Some 44% of more than 2,000 respondents said this was the top challenge of the first exam of 2021.

Next biggest problem was ‘unclear language’, at 15.6%. In third place was ‘syllabus coverage’ – 12% said this was their biggest gripe.

Interestingly, ‘I had no problems’ came in fourth with 9% of the vote.

Problems with remote invigilation (5%) and centre/location (3%) came near the bottom of the list.

Check out the poll at https:// opentuition.com/acca/.

When it came to the RI exams, most went without a hiccup.

However, when things went wrong, they really went wrong for that individual! The lucky ones were able to rebook the following week, but some were devasted that they would have to resit in June. As one PQ told us: “My exam has been cancelled after 2 hour wait! They said they couldn’t see my video

even though I could see it at my end. I was left waiting for ages before someone even joined the chat. I spoke to ACCA and they’ve just said to rebook for next week.”

Another sitter said: “I’ve been waiting for 90 minutes, so pissed off right now. It says I’m next, then have a connection issue, then it takes me back 70 odd spaces. No communication from Pearson Vue, this is unbelievable.”

Then there were the students

who loved the experience: “Much preferred remote. Relaxed morning with no drive and no parking issues. I had a lie in, shower. Lazy breakfast and quick scan of notes and then start…” They were joined by another happy PQ: “Done three remote exams with no issues. Don’t want to use a centre again. Love using the bigger screen and my own keyboard and mouse. As well as not having a 140-mile round trip.”

Calculator rule problems

exams were then generally allowed to use it.

Unfortunately, not everyone was a brave enough to front it out with the invigilator, and one PQ admitted she put her calculator on the sofa behind her and used the screen calculator instead.

Students felt ACCA really need to brief the invigilators properly.

One said: “It’s really unfair to be worried about your calculator just as your exam is starting.”

Another suggested: “This is clearly a miscommunication between OneVue and ACCA.”

Calculators became a big issue for ACCA March sitters at the start of exam week.

Social media was awash with pictures of calculators as students tried to discover if they had an approved one. This was because when some students were asked to show their calculator, the

invigilator told some scientific calculators were “not allowed”.

However, students who held their nerve and simply wrote back in the chatroom that it did not store texts and that they had always used it for their ACCA

In brief Pap Outlawing essay mills Concern is growing that essay mills are now using influencers on campus to exploit and blackmail students into using their services. The former universities minister, Chris Skidmore, wants essay mills banned. He said that there are now over 1,000 companies offering students ready-made written essays. That is an increase of 50% in three years.

It is already a crime to operate such companies in Ireland and 4

Australia, and Skidmore wants the UK to follow suit.

Pap Bitcoin not so green Bitcoin uses more electricity annually than the whole of Argentina, according to analysis from Cambridge University. The computer calculations to verify transactions (called ‘mining’) consumes 121.36 terawatt-hours (TWh) a year. And as the price increases so will the energy consumed. This has led some critics to call out Tesla’s claim to

be environmentally-friendly, as it has heavy investment ($1.5 billion) in bitcoin.

Pap Free AAT revision sessions First Intuition is again offering free AAT revision sessions for many of the Level 2, 3 and 4 papers during March and early April. These short sessions run on a weekly basis and aim to help students to iron out any technical issues they might have with key syllabus areas. Book a session at https://tinyurl.com/p54fbcf2

Pap Do the right thing CIPFA has created a new e-learning module for members and students. The module is free and provides a modern understanding of the principles of ethics along with practical insights into how ethics can influence public finance professionals. The training includes case studies, Q&As, videos and background reading. The principles are crucial for students to learn as they begin their careers. For more see next month’s issue of PQ magazine.

PQ Magazine April 2021

Diversity guru steps down in bullying row Deloitte’s diversity champion and deputy CEO, Dimple Agarwal, is stepping down from her leadership roles after allegations of bullying from more than a dozen staff. She is now facing an internal investigation.

Among the accusations is she ‘communicated aggressively’ and forced staff to attend extremely early meetings.

Deloitte’s UK chief, Richard Houston, told staff: “I can confirm that Dimple is stepping down from her leadership roles both in the UK and NSE. The media coverage will attract scrutiny of our firm and I fully expect that you will have questions or concerns.

“I cannot comment on any of the allegations contained in the article. But, as I have consistently made clear, I’m absolutely committed to ensuring that everyone in our firm is treated with respect.”

AAT’s new AQ2022, due to replace AQ2016 next February, will have fewer exams and no synoptics (unless you are an apprentice).

The old Levels 2, 3 and 4 will return and out goes foundation, advanced and professional stages.

The AAT is also allowing those studying the current syllabus more time to complete their levels before moving on to the new syllabus.

Students now have until 30 June 2023 to complete the level, instead of 28 February 2023. That’s an extra four months’ grace period.

Students may also need that time as some of the transitional arrangements could mean they

AAT PQs given more time to pass AQ2016

could lose assessments/units they have already passed (see our

feature on page 32).

The synoptic assessments are being replaced with the Business Environment exam at level 2, Business Awareness at Level 3 and Internal Controls at Level 4. Other assessments have amalgamated and the Using Accounting Software unit is being dropped altogether.

There will, however be much more emphasis on technology and communication in AQ2022.

KPMG chairman ‘falls on sword’ KPMG UK boss Bill Michael became the centre of a media storm recently after he told staff in a Zoom meeting to ‘stop moaning’.

On top of telling staff to ‘stop playing the victim card’, the chairman reportedly revealed he was still holding client meetings over a coffee despite

lockdown, and said unconscious bias was “complete crap”.

After first ‘stepping aside’, a few days later he resigned.

Michael (pictured left) became chairman in 2017, but felt the scandal over his comments had made his position at the Big 4 firm untenable.

He said: “I love the firm and I am truly sorry that

my words have caused hurt among my colleagues and for the impact the events of this week have had on them. In light of that, I regard my position as untenable and so I have decided to leave the firm. It has been a privilege to have acted as chair of KPMG. “I feel hugely proud of all our people and the things they have achieved, particularly during these very challenging times.”

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5

ROBERT BRUCE Pandemic inspiring bold new ways of thinking Ah. The joys of pandemic thinking.

We may have been locked down but our minds find other ways of coming up with the ‘what-ifs’, even if they are born out of grim desperation.

Friends in the NHS talk of the awful times they have been through.

But they also talk of their new-found ability in the midst of chaos to streamline the way things are done.

Bureaucracy can be swept away out of sheer desperate necessity. And good ideas can also come from more frivolous corners.

An old favourite, Brewdog, the Scottish purveyors of beer that is always somewhat stronger than you expected, have transformed BOGOF into BOGOT. Instead of buying one to get one free they have launched a scheme where, if you buy one, they will plant a tree. Admittedly the trees are being planted in Madagascar rather than the heart of Midlothian but that again is part of a greater willingness to think global in these routine-uprooting times. In fact, overall new tree planting this year is expected to be many hundreds of millions more than last year. I suspect it is part of a general rethinking of where we all are now and will be, possibly, post-pandemic, if that is not getting too far ahead of ourselves. The continuing speculation of how far we will all remain working at home, or resolutely be heading back into offices, or somewhere in between, is part of it. But it is much wider. All manner of new ways are open to us all. Think. And then go for it.

Robert Bruce is an award-winning writer on accountancy for The Times

FRC issues new guidance on separating audit practices The Financial Reporting Council (FRC) has made some changes to its principles for operational separation of the audit practices of the Big 4 firms. Following the analysis of the firms’ implementation plans the FRC has: • Confirmed that the audit practice should not receive fees for introducing business to other parts of the firm and that partners in the audit practice should not be incentivised for sales passed to other parts of the firm.

• Increased the minimum proportion of revenue within the ring-fenced firm that must be derived from audit.

• Clarified that services provided by non-audited entities should be commissioned by those charged with governance at the entity or be

assurance services for third party recipients.

FRC explained that the objectives of operational separation, which is world leading, are to ensure that audit practices are focused above all on delivery of high-quality audits in the public interest, and do not rely on persistent cross subsidy

from the rest of the firm. Its desired outcomes are: • Auditors act in the public interest and work for the benefit of shareholders of audited entities and wider society.

• The culture of the audit practice prioritises high-quality audit by encouraging ethical behaviour, openness, teamwork, challenge and professional scepticism/ judgement.

• Audit practice governance prioritises audit quality and protects auditors from influences from the rest of the firm that could divert their focus away from audit quality.

• The total amount of profits distributed to the partners in the audit practice does not persistently exceed the contribution to profits of the audit practice.

Back to Basics Video Series – the trial balance PQ has joined forces with Training Link’s Michele Baker to help you get to grips with the trial balance as part of our free Back to Basics Series. In just six short minutes Michele will explain how to create the trial balance and why you are doing it. She will let you know

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IASB proposes to extend support for lessees accounting The International Accounting Standards Board (IASB) has published, for consultation, a proposal to extend by one year the application period of the amendment to IFRS 16 Leases The original amendment was issued in May 2020 to make it easier for lessees to account for Covid-related rent concessions,

such as temporary rent reductions and rent holidays, while continuing to provide useful information about their leases to investors. The practical relief currently applies to rent concessions that reduce only lease payments due on or before 30 June 2021.

In response to calls from stakeholders and because the

country that topped the list of cash-paying countries was China.

The universities of Essex and Manchester had taken the most cash since 2015, in excess of £5 million each. University officials have said that rigorous checks are carried out, and some had said they have stopped accepting cash payments.

practice are looking to recruit a full-time bookkeeper to work with a variety of clients. The successful applicant will have previous experience working in a practice or multi-client environment and in return will receive a salary between £26k-£30k. They also offer a flexible working environment.

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Covid-19 is still at its height, the IASB proposes to extend the relief to cover rent concessions that reduce only lease payments due on or before 30 June 2022.

Trustees of the IFRS Foundation have approved a shorter-thannormal comment period of 14 days for this consultation due to the urgent nature of the proposal.

In brief Pap Unis’ money laundering fear Universities have been accused of inadvertently facilitating money laundering following an investigation by The Times. The problem is the amount of cash universities still accept from students coming from ‘high risk’ countries. The Times found that at least 49 UK universities allow students to use cash to pay their fees – this amounted to £52 million over the past five years. The paper’s freedom of information requests found the 6

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Pap Deloitte told to investigate The Chinese government

has told Deloitte to investigate alleged serious violations in audits carried out by its Beijing office.

The allegations come from an anonymous whistleblower. A 55-page Powerpoint presentation involving five clients has been circulated on social media.

Purported to have come from a Deloitte employee, the presentation alleges, among other things, that Photoshop was used to change inconsistencies in financial statements. Deloitte has promised to investigate any new allegations.

PQ Magazine April 2021

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PQ news

IAS 1 and IAS 8 amended

PREM SIKKA When the numbers have no meaning

The Financial Services Bill is going through parliament. Among other things, it is implementing measures to ensure that banks have adequate buffers to absorb losses. Under the Basel III Accord, the minimum capital adequacy ratio that banks must maintain is 8%. Most of the capital will be in the form of equity.

However, there are pitfalls.

Firstly, there is no legal definition of equity. In financial reporting, it is simply the arithmetical residue arrived at after deducting liabilities from assets. In balance sheets, equity or shareholder’s funds includes realised and unrealised reserves, share premium and a variety of book-keeping entries.

Equity is a hotchpotch of random book-keeping entries. So, if banks write off goodwill, the equity base shrinks. If they don’t, the equity base appears larger even though goodwill may be worthless.

Secondly, accounting standards have no discernible notion of capital maintenance. Assets and liabilities are shown at historical cost, amortised cost, net realisable value, present values, fair value and numerous other bases. The addition or subtraction of these numbers does not yield any recognisable measure of capital maintenance.

Banks are neither maintaining money nor any variety of real capital. Yet they are supposed to be a guide for regulators. Rather than relying upon conventional financial reports, regulators need to develop their own standards.

Prem Sikka is Emeritus Professor of Accounting at the University of Essex

The International Accounting Standards Board (IASB) has issued narrow-scope amendments to IFRS standards – IAS 1 and IAS 8.

Following feedback that more guidance was needed to help companies decide what accounting policy information should be disclosed, the IASB has issued amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements. The amendments to IAS 1 require companies to disclose their material accounting policy

information rather than their significant accounting policies. The amendments to IFRS Practice Statement 2 provide guidance on how to apply the concept of materiality to accounting policy disclosures.

Separately, the IASB issued

amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. That distinction is important because changes in accounting estimates are applied prospectively only to future transactions and other future events, but changes in accounting policies are generally also applied retrospectively to past transactions and other past events.

Get your PQ award nominations in now!

The door is still open (just) for nominations for the PQ magazine awards 2021.

Now in their 18th year, we have our independent judges lined up ready to read through every single nomination form.

So, we need those entries. What about nominating yourself and your colleagues for our Accountancy Team of the Year? It’s a great way of telling everyone how much you love working with them. Or maybe there’s a training manager/mentor who needs to be thanked. There is no better way than getting them

shortlisted for the PQ magazine awards!

There’s lots of categories to choose from, so lots of chances to win a much-coveted shiny PQ

Is it time to Zoom out?

There really is such a thing as ‘Zoom fatigue’, say academics at Standford University.

For many the rise of video calls has replaced classroom lectures, business meetings, conferences and even telephone calls. This all means spending more time staring into webcams.

Researchers discovered four

things that can exhaust us: the need for constant eye contact; the ability to see oneself on the video calls; the need to sit still for long periods of time; and the struggle to interpret or communicate via body language.

Professor Jeremy Bailenson said: “In the real world, if someone was following you around with a mirror

lead to a clampdown on Uber across Europe. He explained: “If they have got a VAT liability in the UK they have a tax liability in every country in the EU as well.”

from their ‘obligations’. Anyone who earns over €300,000 in Spain must pay 47% tax, compared with a 10% flat rate in Andorra when they earn more than €40,000.

Pap Targeting the influencers Spain is introducing new tax avoidance measures to counter the bragging of online influencers who revealed they were moving to Andorra to pay less tax. Spain’s tax professionals said they would be using ‘big data’ to hunt down wealthy individuals who run away

Pap Sin taxes need wider roll out Surcharges on products considered to be unhealthy, such as tobacco and sugar, only work well if applied on a large geographical scale, says research from Imperial College Business School. In its paper ‘The Impact of Soda Taxes: Pass-Through, Tax

trophy. All you need to do is download the nomination form – go to https://tinyurl.com/2o9y3xmx The deadline for entries is Friday 19 March. constantly – so that while you were talking to people, making decisions, giving feedback, you were seeing yourself in a mirror, that would be crazy. No one would ever consider that.” His advice is to sometimes opt for an audio-only approach.

Turn the camera off and move away from the screen, maybe even walk around while you are talking and listening.

Go to https://tinyurl.com/ku5fym8 for more.

Taxwatch Pap Uber facing £2bn VAT bill Uber could be facing a UK VAT bill in excess of £2 billion following its defeat in the Supreme Court, which ruled its drivers are not self-employed. Everyone is now waiting on HMRC’s move to reclaim the outstanding monies.

Uber did not pay VAT on fares because it claimed its drivers were independent contractors and not workers. Richard Murphy of Tax Research UK said the implications for Uber’s bottom line could be even greater, as the ruling could 8

Avoidance and Nutritional Effects’, researchers found that when faced with a large enough levy consumer are prepared to travel further in order to avoid the tax. Professor Stephan Seiler said: “Regardless of how one feels about the goals of sin taxes, a local tax that many consumers avoid is always undesirable. Tax avoidance through cross-shopping leads to lower revenue, less improvement in nutritional intake and burdens consumers who now have to travel further for their purchases.”

PQ Magazine April 2021

news PQ

Become a Xero Certified Advisor – and all for free GAAPweb wants your thoughts How have the lives and livelihoods of finance and accountancy professionals been impacted in the last 12 months? Our partners at specialist job board @GAAPweb are looking for you to take part in their annual audience survey. It only takes a few minutes to have your say: http://bit.ly/SurveyGW2021.

With your help, GAAPweb are hoping to create a unique picture of how you have coped with all the changes. Did you get the salary rises and bonuses you were promised? Were you furloughed?

The survey closes on 17 March, so get online now.

PQ Magazine April 2021

PQ magazine has teamed up with Xero to offer you the chance to become a Xero Certified Advisor – for free! All you need to do is create a simple Xero login, and when you are asked to choose your ‘organisation’ just scroll down to PQ magazine. One click and you are away.

When you register you will be taken to the eLearning pack. It will

take between eight and 10 hours to complete, and has assessments running throughout. Once done,

you will be awarded a PDF certificate that you can add to your CV and LinkedIn profile! It really is that simple.

No matter where you are in your accountancy journey you can benefit from this great tie-up. Once you become a Xero Certified Advisor you can continue on to Payroll Certification, App Advisory Badges, Hubdoc and Xero Tax. This pack of eLearning takes about 10 hours and the details can be found on page 19.

If you can’t wait then go to https://tinyurl.com/2fb65ncm

Transparency key to good governance The Financial Reporting Council (FRC) has issued advice on how to report transparently and effectively when departing from certain provisions of the UK Corporate Governance Code.

The code sets high standards for corporate governance, said the FRC. It recognises that companies have differing circumstances and so offers flexibility through its ‘comply or explain’ approach to reporting.

The FRC encourages companies

to embrace the flexibility offered by the code so that investors and wider stakeholders benefit from reporting that clearly demonstrates a commitment to good governance, and clearly sets out a company’s circumstances.

The FRC stressed it is important that companies: • Embrace the flexibility offered by the code and develop bespoke governance processes and practices which raise standards.

• Make it easy for readers to find

out which provisions of the code they have departed from in their annual report.

• Ensure that they provide full, clear and meaningful explanations for any such departures.

• Explain how any alternative approach is more efficient and appropriate than that prescribed by the code, and how this is helping the company achieve good governance.

For more go to https://tinyurl. com/pyr3c83k

9

NatWest to shut Irish operations

ANNA KATE PHELAN ‘Alone time’ can help you deal with lockdown Recently, a wanted man surrendered himself to Sussex police rather than spend a minute more in lockdown with the people he was living with.

Actual prison was preferable to the situation millions of us now find ourselves in where our children, partners, parents and flatmates (as wonderful as they are) are our only source of human interaction. How many conversations about banana bread or Peppa Pig reruns can one endure before prison seems like a viable option?

The unusual predicament we find ourselves in during these extraordinary times presents unique challenges, and even with light at the end of the tunnel and a lockdown exit roadmap now in place, it’s important to look after yourselves and others so no one ends up in prison.

Making sure you carve out a piece of ‘alone time’ is key to maintaining your peace of mind, even if it’s only a 15-minute reading or meditation session.

Make an effort to reach out to your friends, extended family and fellow students; you never know how even seemingly the strongest of your network may be affected by this strange time.

Allow yourself to acknowledge how you feel about the current situation; remember you’re a human being and it’s okay not to be okay.

Additionally, if close quarters get too much, it is vital to remember you are free to exercise outdoors in places other than under Her Majesty’s supervision.

Anna Kate Phelan is Senior Product Manager at Eintech

CIMA free resits offer to Operational sitters CIMA is offering free resit exams for any of its students sitting and failing the Operational level OT exams or the OCS exam.

To receive the resit PQs must have attempted and failed these exams between 1 February and 31 July 2021.

However, no-shows are not included in the offer.

For OTs, the free resit must be scheduled and sat within 90 days from the original sitting. No extensions will be given.

For the OCS, the free resit must be scheduled by the following deadline dates 2 – 27 April for

Peer assessment comes to ACCA ACCA is introducing peer assessment to Unit 8 of the Ethics and Professional Skills module from 31 March 2021.

That means anyone registering for the Ethics and Professional Skills Module from this date will be asked to prepare and submit a presentation with accompanying notes. Once you have submitted your presentation it will be reviewed against a set-marking criteria by

Audit split: small steps for Deloitte Deloitte has set up an audit governance board, which will now be responsible for ensuring the split of the audit unit goes smoothly, and provides independent oversight of the UK audit practice. The Big 4 have until June 2024 to split their audit businesses from the rest of the firm, but have to explain how this will be achieved by October this year.

Managing partner Stephen Griggs said: “While governance changes to audit businesses are a key element of audit reform, they must also be considered alongside a wider package of

10

the May exam and 27 July for the August exam. The offer excludes Cert BA, Management and Strategic OTs and case study exams.

If you have been unsuccessful in your exam and are eligible for a free resit, you will receive an email from CIMA around five to 10 days after your exam confirming an exam credit has been added to your MyCIMA account.

CIMA is asking PQs to wait until they receive the email confirming the credit before scheduling their resit in the usual way.

For the full terms and conditions go to https://tinyurl.com/5xmb2j6f

NatWest has confirmed plans to exit the Republic of Ireland as the banking giant looks at ways to cut costs.

The group started a review of its Ulster Bank business last year, concluding it cannot achieve ‘acceptable returns’ in Ireland.

CEO Alison Rose explained: “We are to begin a phased withdrawal from the Republic of Ireland over the coming years which will be undertaken with careful consideration of the impact on customers and our colleagues.”

Ulster Bank has 88 branches and 2,800 employees. It accounts for 15% of the mortgage market in Ireland and has a loan book of £17 million.

The bank, which remains over 60% UK state-owned, reported an annual loss of £350 million for the year. This compares with a profit of £4.2 billion the previous year.

NatWest has put aside £3.2 billion for toxic loans, but plans to a dividend at 3p a share. This means the government will receive £225 million.

five fellow students. At the same time, you will be asked to assess five other students’ presentations.

Once both parts of this process have been completed you will receive a score on your presentation and relevant feedback.

If your presentation achieves a pass you will be able to advance onto the next part of the module. However, if you are deemed to have failed you will be asked to complete the peer assessment task again. You will only be able to advance once you achieve a pass.

change, including in areas such as corporate reporting, the role of directors, the evolution of the audit product and the regulatory environment in which we operate.”

decreased from £640,000 to £572,000. The firm also announced £44 million investment in technology and its office estate as it prepares to roll out hybrid working in 2021.

KPMG partners take pay cut KPMG UK has cut partner pay by 11% to help protect other jobs and support the hiring of graduates and apprentices, according to its annual report. The results, delayed by two months, show a 2% fall in like-forlike revenue in the year to September 30 of £2.3 billion. Underlying profit decreased by 6% year-on-year, from £307 million to £288 million, as a result of the impact of the pandemic on the second half of the financial year. That meant average partner distribution

Women’s progress set back Progress for women in work could be back at 2017 levels by the end of the year as a result of the pandemic, according to analysis for PwC’s Women in Work Index. For nine years, all countries across the OECD made consistent gains towards women’s economic empowerment. However, due to Covid-19 this trend will now be reversed, with the Index estimated to fall 2.1 points between 2019 and 2021. It will not begin to recover until 2022, where it should gain back 0.8 points.

PQ Magazine April 2021

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MIKE DAY A pace of change like no other

As businesses around the world have had to pivot to survive, we’ve seen mass-scale adoption of digital tools: the McKinsey Quarterly shows 10 years’ growth in three months in US e-commerce. In particular, small businesses have taken huge advantage of the latest technology.

Take an app like Shopify, an e-commerce platform that has seen its share price shoot up as a result of selling its much-needed service to an increasing number of businesses.

What does this mean for the world’s accountants, who have faced their own set of challenges?

Accountants also had to adapt quickly to be able to do their jobs from home. They had to work fast to support their clients – many of whom have been in huge financial distress.

Small businesses needed their accountants’ help fast to access capital and manage cash flow.

The digital transformation of the last decade has been a catalyst for growth for many new businesses – with sole traders, freelancers and gig workers all taking advantage of digital business models. More of these models have emerged during the pandemic. These businesses need flexibility, quick access to financials and specialist advisory support anchored in technology.

There is no doubt that Covid-19 has been hugely challenging. It has also been a catalyst for extraordinary change. Accountants are in greater demand than ever before, and this will only amplify in the coming months as businesses survive, reset and recover.

Mike Day, Director, UK Education Sector, Xero

Trusting in the robots The pandemic has increased financial anxiety, sadness and fear among people around the world, according to a new study by Oracle. But the big news for accountants is it has also changed the ‘who’ and ‘what’ people trust to manage their finances.

A new study found business leaders are totally rethinking the role and focus of corporate finance teams. Did you know, for example, that 77% of business leaders put more trust in robots than their own finance teams to manage their

organisation’s finance needs?

Some 89% of these business

Bitcoin – like Tesla but without cars

So what is bitcoin? According to Agustín Carstens, president of the Swiss-based BIS bank, bitcoin is not money – it’s merely a speculative asset that lacks any value. To explain he said think “Tesla without the cars”.

Carstens believes the cryptocurrency may well break down altogether when it reaches its maximum supply of 21 million bitcoin. So far around 18.5 million have been released.

Carsten explained: “Bitcoin is a decentralised payment system that relies on ‘miners’ to verify transactions. Miners are rewarded

in new coins, but the incentives diminish the closer to 21 million coins they get. The fewer they are the more the system will be vulnerable to ‘majority attacks’ that are plaguing the smaller cryptocurrencies.”

A majority attack happens when a group of miners have 50% of the network’s computer power. That allows them to halt transactions, recall payments and even use their bitcoin more than once.

The analogy all became ironic too, when Telsa invested $1.5 billion in bitcoin, pushing up the price to a new record high!

move to cashless. This news comes as experts warn that half of the UK’s cash machines could close within two years, unless the banks are forced to support them.

Xiaomi’s 43 million.

Apple’s sales jumped 15% after the release of its iPhone 12 (it has 5G connectivity). Figures compiled by Gartner show Apple has 21% of the market, with Samsung on 16% and Xiaomi on 11%. The big loser has been Huawei, which suffered a 41% decline after the ban on the use of the Google apps. It saw sales fall to 34.3 million.

leaders believe robots can improve their work by detecting fraud, creating invoices and conducting cost/benefit analysis. And 56% of those surveyed believe robots will replace corporate finance professionals in the next five years.

The good news for those working in the UK is that less than half (49%) of UK business leaders believe robots will replace finance professionals by 2026. However, it is a different story in China and India, where 72% and 67% see this happening by then.

Cyber thieves go in for ‘silent stealing’ during pandemic The shift to working from home has seen a rise in cyber criminals targeting people’s personal bank accounts, sometimes conning them out of as little as £10 a time. This is then multiplied thousands of times, and is known as ‘silent stealing’.

A Royal United Services Institute (RUSI) report explained the thieves are going downmarket to make their money. RUSI said individual victims are less likely to report the loss of a small sum of money. For the police and banks it then becomes difficult to understand the sheer size of the scam.

The report said: “Are you going to call Action Fraud or your bank in the case where you lose £10?”

Tech briefs Pap Going cashless The move to a cashless society has been intensified by the pandemic, and a quarter of Brits (26%) say they would favour a cashless society. This ranks the UK 14th in a recent poll by MoneyTansfers.com. Interestingly, India was the country most willing to go cashless, with 79% of respondents saying they believe this would have a positive impact on their country. In second place was Malaysia, where 65% of those surveyed said they supported the 12

Pap Apple on top again Apple has regained its number-one slot as the bestselling smartphone, after four years. In Q4 of 2020, Apple sold 80 million iPhones, well ahead of Samsung’s 62 million units and

Pap Netflix and chill As lockdown became tighter one company just grew and grew.

Netflix added 8.5 million paying subscribers to its database, ending 2020 by breaking the 200 million barrier for the first time. The new series of The Crown and other debut shows such as The Queen’s Gambit and Bridgerton saw the streaming company end the year with 203.66 million subscribers. It is also expecting to add another six million subscribers in the first quarter of 2021.

PQ Magazine April 2021

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Pick HTFT for AAT Starting March, we have live courses for AAT Level 3 and AAT Level 4.

HTFT live: pre-recorded syllabus videos that lead into scheduled live online interactive Masterclasses (with expert tutors), all designed to support your mastering of knowledge – accompanied with computer based tests and mock exams For more information visit www.htftpartnership.co.uk/courses/aat/

Think ACCA, think HTFT We have a full suite of ACCA Applied Skills and Strategic Professional courses for June 2021 exams starting March.

Membership of our vibrant Online Learning Community and access to a dedicated tutor

HTFT Partnership student notes and ACCA authorised study text, exam kit and pocket notes

Full syllabus, Topic by Topic recordings supported by timetabled ‘live online’ Tuition sessions – recorded, downloadable and playable on all devices

Scheduled ‘live online’ Revision sessions – recorded, downloadable and playable on all devices

HTFT computer based tests and mock exams, marked, with answers and video debriefs

For more information visit www.htftpartnership.co.uk/courses/acca/

Study CIMA, choose HTFT Studying CIMA? Our HTFT live, HTFT on-demand and HTFT play resources are all here to help you prepare for, and pass, your exam.

HTFT live: join our expert tutors live online for interactive Masterclasses, designed to support your application of syllabus knowledge.

HTFT on-demand: drive your learning, with full flexible resources that you control HTFT play: Boxsets of topic recording and Proficiency exam-style practice assessments For more information visit: www.htftpartnership.co.uk/courses/cima

CIMA F1 live starts 23rd March, CIMA F2 live starts 1st April and CIMA F3 live starts 6th April

Online College of the Year 2017

Personality of the Year 2018

Private Sector College of the Year 2020

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A request to ACCA I am writing to raise an observation relating to the last set of ACCA AFM sample exam answers that were published in January 2021. The answers were for selected questions extracted from the September and December 2020 exam sittings.

Being an ACCA AFM tutor and having spent a lot time in 2020 preparing CBE answers for 55 past exam questions using the ACCA’s Practice Platform (which I very much like), I am aware that the use of the CBE ‘spreadsheet’ is both substantial and key to exam success. In my opinion, the ACCA have clearly recognised

this fact by including specified short-cut functions within the CBE spreadsheet software.

These allow an ACCA AFM CBE candidate to complete certain calculations very quickly. The two

most popular ones are the NPV and IRR functions. Hence, when reviewing the latest published exam answers, I was surprised not to see any reference made to these functions on the appropriate pages.

I fully recognise that currently there is a split population of students between those sitting the paper exam and those already on CBE. However, the latter proportion is getting larger.

What I am kindly requesting from the ACCA is a few extra lines be added to certain sections of the official answers that state/show the CBE variant to the relevant calculation.

Sunil Bhandari, ACCA AFM and FM Tutor – FME Learn Online

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

March madness I was scheduled to sit ACCA paper Advanced Audit and Assurance (INT) via remote exam at home at 8:30am on Monday 1 March.

I logged into the exam and had taken and submitted all the required photographs by 8:25am, and was placed into a queue on the Pearson Vue system for 20 minutes. Then a message appeared saying there was a technical problem and I was being placed back in the queue. Five minutes later a chat box appeared with a message of ‘Hi’ from support services. I responded and then a moment or two later was told they could not see me on their screen (even though I could see myself via my webcam on the holding page).

I asked if I needed to do anything, like unplug the webcam and try again, but did not get a response.

A couple of minutes later the same person responded with ‘Hi, are you there?’ to which I replied ‘Yes, is there a problem?’. The chat box then closed itself down.

By now it was 9:44am (over an hour and a quarter since I logged on). I could now no longer log onto my exam and my only option was to go to ACCA global where I could obtain a refund for the exam or

rebook for June’s sitting.

I have spent every day and night for the last two months studying for this exam and for this to happen is a kick in the teeth and feels like a total waste of time. As someone studying the ACCA qualification via

an apprenticeship scheme I now have to explain this incident to my employer and learning provider.

I have already booked to sit SBL, what I hoped was my final exam, in June 2021.

Name and email address supplied

The story of Bill Michael telling KPMG staff to ‘stop moaning’ went virtual last month. On the FT comment board one reader said: “For normal accountants like my humble self the Big 4 are becoming a Big Embarrassment.

It was bad enough to qualify with John Cleese mocking us without now having overpaid bullies ignoring their conflicts of interests and harassing staff.”

Others disagreed and felt Michael was “just saying what plenty of other leaders also think. It’s just the other leaders are more verbally dextrous.

Judge on actions not words I think.” Another said: “Shocking!

Can’t imagine old Mr Peat saying that.” An ex-employee said: “Ah! Good old KPMG. Hasn’t changes in decades. I saw this culture at the turn of the century.”

It was also Budget time in the UK. The big news was the proposed rise in corporation tax from 19% to 25% by 2023. We tweeted it out as it happened, as always. It was good to hear that small businesses with profits under £50,000 will be protected from the rises. In fact, they will continue to pay the 19% rate.

There will also be a taper on rates up until £250,000. The rise to 25% is expected to raise £17 billion a year by 2025/26. Many of you in the UK will also have received confirmation of the new basic income tax threshold. That will rise to £12,570. For higherrate payers the threshold will be £50,270. The story here was that these rates will stay the same until 2026. It all added up to the biggest tax rise for 50 years.

PQ Magazine PO Box 75983, London E11 9GS | Phone: 07765 386489 | Email: graham@pqmagazine.com Website: www.pqmagazine.com | Editor/publisher: Graham Hambly graham@pqmagazine.com | Associate editor: Adam Riches | Art editor: Tim Parker Contributors: Robert Bruce, Prem Sikka, Zoe Robinson, Mike Day, Tony Kelly, Phil Gammon, Edward Netherton | Subscriptions: subscriptions@pqmagazine.com | Origination services by Classified Central Media If you have any problems with delivery, or if you want to change your delivery address, please email admin@pqmagazine.com

Published by PQ Publishing Ltd © PQ Publishing 2021

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PQ gender responsive budgeting

Equality matters ACCA is campaigning for gender equality in the economic recovery from Covid-19, says ACCA chief executive Helen Brand his year, International Women’s Day felt different from previous celebrations. The last time we marked the occasion, who could have predicted that every country worldwide would have been exposed to a pandemic that has caused immeasurable human tragedy and loss; and has forced governments to impose constant national lockdowns, pushing the global economy into recession?

But it’s not just about the obvious economic and health impacts of Covid-19, it’s also the already-prevalent inequalities that have been exposed and exacerbated by it. According to the UN, 47 million more women will be forced into extreme poverty because of the pandemic.

And recent research published by McKinsey found while women make up 39% of the global workforce, a disproportionate majority (54%) had lost their jobs due to the Covid-19 virus.

So while it’s important to celebrate women and their achievements at this time of year, we must also speak up and challenge the inequalities half of the population is continuously facing – and not just in the world of business. That’s why this year, ACCA is urging more governments to adopt the use of Gender Responsive Budgeting (GRB) to ensure women and men alike benefit equally from the economic recovery out of Covid-19.

security.

In its latest report, ‘Gender-responsive budgeting and the Covid-19 economic recovery’, ACCA provides a toolkit on how accountants can place GRB into their everyday roles and duties.

In order for GRB to work, governments around the world must: • Collect and analyse sex-disaggregated data to identify where problems lie so policies can be targeted effectively.

• Ensure institutional capacity, including offering staff training and development, with

What is GRB? According to the UN, “gender-responsive budgeting is the process of assessing the implications for women and men of any planned action, including legislation, policies and programmes, in all areas and at all levels.

The objective is to ensure that women and men benefit equally and that inequality is not perpetuated.”

The UN also found that, while 164 countries have GRB in some form, just 25 – including India, New Zealand and Trinidad and Tobago – have demonstrated an holistic approach by applying measures that span unpaid care, violence against women and women’s economic

management buy-in so that women have decision-making roles and have an equal seat at the table.

• Have an ‘all-government approach’, with strong coordination between the Ministry of Finance and the relevant line ministries to ensure the process is carried out at each level.

• Engage with wider public institutions, such as Supreme Audit Institutions and the Legislature, to ensure the approach has been properly scrutinised and audited.

ACCA believes that public sector finance professionals have a vital role to support governments and policymakers by providing

T

16

them with the necessary data and tools to implement GRB effectively. GRB can be applied in all sectors of the economy and society including transport, health, education and employment. The role of finance professionals in the public sector is crucial at every stage of the cycle – from initial analysis and budget design to the invaluable role of auditing in the final stage.

The accountancy profession can play a key role in ensuring policymakers commit to gender equality and use GRB as a tool of effective implementation.

Marginalised groups While the pandemic has disproportionately harmed women, those in marginalised communities have been greatly affected too.

In the UK, research from the Fawcett Society et al recently found 42.9% of BAME women said they would struggle to make ends meet

over three months in the middle of 2020. Also work-related anxiety for those working outside the home was highest among BAME people, with 65.1% of BAME women reporting anxiety as a result of having to go out to work during the coronavirus pandemic.

Globally, minority women make up a higher percentage of employees in the informal sector; these jobs are highly vulnerable to disruption and often do not provide health care or paid leave (OHCHR 2020). Also, women with disabilities in low-to-middle income countries are more likely to be unemployed or work in the informal sector and live in poverty, with the pandemic likely to exacerbate these inequalities and push them further into hardship (MeaneyDavis 2020).

The global theme for International Women’s Day in 2021 was #ChooseToChallenge and while we continue to champion women’s rights, we must also stand together challenge all biases and stereotypes faced globally by marginalised groups on a daily basis. And so while we celebrate all we’ve accomplished, we need to remember that the work towards genuine equality – something ACCA has championed since its creation – is still urgently needed.

To hear how ACCA celebrated International Women’s Day, please tune into our global event on our website.

• Helen Brand is ACCA’s Chief Executive PQ Magazine April 2021

awards 2021 PQ

LASTORDERS It really is time to get your nominations in – our awards judging day is fast approaching!

Remember, you too could be a proud owner of a much-coveted ‘PQ’ trophy ur independent judges are starting to sharpen their opinions as we move closer to ‘Judgement Day’ for the PQ magazine awards 2021! To get onto this year’s shortlists we need to receive your entry by Friday 19 March – so get writing, sharpish!

These will be our 18th awards ceremony, and although the Café de Paris became our permanent home recently, the awards have moved around London, taking place at Quaglino’s, Floridita, Sirocco and The Cross nightclub in King’s Cross. One year they even took place in the Crypt of St Etheldreda’s in Ely Place,

O

where Henry VIII held a three-day wedding feast in 1531.

This year’s venue is a secret and while you can’t join us in person it will be a live show!

We have always tried to put on a show too and our entertainment has included Stephen K Amos, Barry from EastEnders (Shaun Williamson), Richard Blackwood, Nathan Caton and Paul Sinha.

One year we even had a magician – but unfortunately no one was sawn in half!

We plan to announce the shortlist in early April, with our live online awards show taking place on the evening of 29 April.

Everyone is invited!

Each year we have some wonderful individual winners, but don’t forget we are also looking for the Accountancy Team of the Year and Student Body of the Year. And we have a new award this time – Accountancy Graduate of the Year. Do you know someone who deserves to be our inaugural winner?

There is still time, just, to get your nomination to us. All we need is 250 words on why you think your nominee should win (and yes, it can be you you are nominating). Please state clearly on your email which category you are entering, and we are happy for you to supply supporting evidence separately if 250 words is not enough.

You can download the nomination form at https://tinyurl. com/2o9y3xmx If you want to risk it at this late stage you can also send your entry to PQ Magazine, PO Box 75983, London E11 9GS. The final deadline for all nominations is Friday 19 March.

AWARDS CATEGORIES

0 PQ OF THE YEAR 0 NQ OF THE YEAR 0 DISTANCE LEARNING STUDENT OF THE YEAR 0 ACCOUNTANCY GRADUATE OF THE YEAR* (*New category) 0 APPRENTICE OF THE YEAR 0 STUDENT BODY OF THE YEAR 0 ACCOUNTANCY BODY 0 ACCOUNTANCY COLLEGE – PUBLIC SECTOR 0 ACCOUNTANCY COLLEGE – PRIVATE SECTOR 0 ONLINE COLLEGE OF THE YEAR 0 LECTURER – PUBLIC SECTOR 0 LECTURER – PRIVATE SECTOR 0 STUDY RESOURCE OF THE YEAR 0 INNOVATION IN ACCOUNTANCY 0 BEST USE OF SOCIAL MEDIA 0 TRAINING MANAGER/ MENTOR 0 ACCOUNTANCY TEAM 0 ACCOUNTANCY PERSONALTY 0 EDITOR’S SPECIAL AWARD

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PQ Magazine April 2021

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Get the Xero Advisor Certificate and stand out from the crowd.

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Unlike other accounting software, Xero offers a mix of education opportunities that benefit PQs, training providers and, ultimately, employers.

Our mission is and always has been to help you become the best you possibly can, as efficiently as you can Getting ahead with Xero Certifications and Badges, for FREE In last month’s PQ we announced that for the first time it’s now possible to take the well known Xero Advisor Certification for free.

It’s the core way for accountants and bookkeepers to demonstrate their knowledge and understanding of using Xero in practice and industry.

Taking around eight hours to complete, the course consists of a complete pack of self-paced e-learning modules, helping you get to grips with cloud fundamentals and it includes an introduction to the Xero platform. Of course it covers functionality such as setup, sales and purchases but

PQ Magazine April 2021

also covers modules not included in qualifications such as banking, inventory, expense claims, fixed assets and advanced reporting.

Completing this certification

doesn’t just show a commitment to working in the industry, it saves employers hours in training new joiners on unfamiliar software – it’s good all round.

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PQ study advice

Bouncing back from exam failure Flunked an exam? Tom Clendon explains how you can get back on the path to exam success a pass therefore is better exam technique. You can build that by doing exam practice under exam conditions.

If, however, there is a lack of knowledge, then the solution is to go back to basics and to study the full syllabus. It’s not possible to pass the exam unless you have the knowledge. ot all students pass their exams first time. When failure happens, there is a need for you to get back on track.

I was recently a guest on an ACCA podcast with Paul Kirkwood, Head of ACCA learner experience, and we discussed what you should do to get back on track after a setback.

The core messages that came out of our discussions was to encourage a reflection on why you had not succeeded and to encourage you to do something different next time around.

Between us we had plenty of suggestions up our sleeve: doing

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mocks to time; playing with ACCA’s practice platform; having a ‘study buddy’; and reading examiner’s reports.

Let me consider three ‘classic’ questions that I have been asked by students who are looking to get back on track.

Question: “What are the main reasons for failing the exam?”

In a general sense there are two. One is time and the other knowledge. If you were given an indefinite amount of time to do the exam and you feel confident that you would pass it, then time is the issue. What is needed to ensure

Question: “I am demotivated having failed an exam for a third time. What should I do to get my motivation back?”

Being frustrated and annoyed when you first hear that you have failed an examination is a natural emotion. It needs to be worked through. Getting back that motivation to study is key to passing because it is tough to study for a resit alongside working. So, think about what completing your professional qualifications would mean to you and why you started studying in the first place.

Question: “I just don’t understand why I failed. My theory was perfect in the exam. My time management was fine, too. In fact I nailed it!”

Clearly, though, your script was not a pass. And so it’s necessary to reflect on why that has occurred.

This is so that you can do something different to avoid the same outcome recurring. Perhaps that is getting a mock marked by a tutor. This exercise should reveal the nature of the issue. Through discussions with your tutor you can hopefully identify resources and a strategy that enables you to pass next time.

Podcast In the podcast we talked a lot about types of strategies that you can adopt to get back on track. Check it out here • Tom Clendon is the online SBR lecturer with FMElearnonline.

His podcast all about SBR can be found on Spotify, Apple and Google and can be found here

Leading Inclusion The latest professional insights report from ACCA, Leading Inclusion, discusses the important subjects of diversity, inclusion and equity. Ensuring that accountancy is a profession that is open to everyone.

bit.ly/leading-inclusion

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PQ Magazine April 2021

remote exams PQ

Surviving ACCA’s 8 remote exams

with blinds or curtains it wouldn’t be allowed.”

Oxford Learning Online recently put together a fantastic real-life student guide to the remote invigilated (RI) exams. Here’s their 10 top tips on getting through them

1

Be prepared As soon as you start the checkin process be prepared to start the exam (you can’t leave your allocated room or have anyone come into the room).

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You are being watched Don’t expect to see or communicate with the invigilator. They may be able to start your exam without asking any questions and if they do have any questions they will just type them into a chat box.

3

Your mouth Resist covering your mouth with your hands at any point, even if it is a habit.

4

Looking around Try not to look away from your screen for any length of time when concentrating – the invigilator may believe you’re looking at something.

5

Drinking Definitely don’t drink too much beforehand, assuming the ACCA are going to allow just one five-minute toilet break again!

PQ Magazine April 2021

6

Noisy neighbours Tell your neighbours that you’re sitting an exam so they keep the noise down.

7

Glass rooms One student said: “I was not allowed to sit my exam in a glass room because it’s half-glass like a conservatory. I called the helpline and they said even

Scratchpad The scratchpad retains what is written on it and makes it visible for all questions. If anyone has anything that they’ve crammed before the exam to remember, it might be worth taking a minute at the very beginning to write it on the scratchpad to avoid forgetting it.

9

Finishing If you finish with time to spare and have completed a review of all answers you don’t need to tell the invigilator you are leaving – you can just click the button to finish the exam and off you go!

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Your nan calling A student said: “My house phone bleeps every 30 seconds when a message is left and my nan, bless her, called to say good luck 10 minutes into my exam. So I could hear that in the background for the whole exam! For the next one I unplugged it!”

You can check out Oxford Learning Online at: https://oxfordlearningonline.co.uk/about/

Ensuring ACCA RI exam success ACCA has reiterated that there are three things you must get right prior to exam day: 1 Connectivity Poor connectivity or internet interruptions can lead to problems. To help reduce the chances of this students should use a wired connection if possible. All pop-up blockers should be disabled to prevent interruptions and internet cookies should be enabled.

2 The technical requirement PQs must check that their computers/laptops meet the minimum technical requirements and pass the system test. If your machine fails to meet the technical requirements you should not book a remote exam.

3 Corporate firewalls Work computers often have more restrictions, such as corporate firewalls, that could prevent successful delivery. If you are using a work laptop you must check the network configuration.

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PQ ICAEW spotlight

ACA launches digital learning materials Always keen to innovate, the ICAEW recently digitised its learning materials. Here we look at what’s new, how it works and why the changes have been made any students may already be familiar with digital textbooks from their further education, so it was a natural next step for ICAEW to publish all of its learning materials for 2021 exams onwards in digital format.

As well as being better for the environment – saving 262 tonnes of paper each year – the ICAEW Bookshelf is more convenient and

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accessible for students, with the study manual, study guide, syllabus, and skills and technical knowledge grids all within one workbook that, together with the question bank, can be accessed anywhere in the world and from any device.

It’s intuitive and easy to highlight text, make notes and quickly search for words and phrases.

You can adjust settings such as text size and

background colour to suit your needs and there is even a read-aloud ‘text to speech’ option. The digital learning materials have been integrated into the exam software, so during open-book exams, you can access your own learning materials, notes and highlights using the ICAEW Bookshelf. For other exams you will be able to access clean, unannotated copies of permitted texts, too.

“There were lots of reasons to go digital,” says Shaun Robertson, Director, Education and Qualifications at ICAEW. “The key thing for students is that the exam is digital, so if you’re practicing questions ready for the exam, you should be using learning materials from a digital platform too. It’s reflective of the workplace too: most information now is accessed online.”

As with all ACA developments, the digital learning materials have been introduced following a meticulous process of consultation with students, employers and training providers, as well as testing and live pilots. The feedback has been positive and supportive.

Find out more about digital learning materials here.

• Thanks to the ICAEW for this article

It’s time to

build a new future Give your career the ultimate flying start with the business qualification that takes you where you want to go.

accaglobal.com/pq

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PQ Magazine April 2021

study tips PQ

How to revise in 30 days Helen Pretty shows you how to get the revision phase right

evision is about smart practice. Doing the right thing at the right time. When I say smart, I mean feeling aligned, prepared and empowered.

You know that feeling of when you’re so smart (and smug) and having those lightbulb moments #pingpingping.

When you have the confidence and self-belief in your ability to recall that formula or to sit a mock to time or achieve your weekly plan.

The confidence you bring to your revision phase is what will give you that exam pass!

Confidence in your exam technique.

Confidence in your preparation.

And, most importantly, confidence in your exam journey.

Do you have to revise the same way as Sue Smith or Joe Bloggs? No – of course not.

You don’t even need to revise the way your tutor or I tell you to! #shock.

I am here today as your coach to tell you – ask you – to flex both muscles, your knowledge muscle and your confidence muscle.

For knowledge + confidence = success!

When you focus on both muscles you will feel strong, empowered and happy. That’s my secret coaching formula, too!

As a qualified accountant, I started coaching qualifying accountants (just like you), giving structured, motivating exam advice (that the tutors don’t tell you!).

I coach ACCA and CIMA students to pass their exams with confidence.

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Knowledge vs confidence As a PQ your knowledge is the syllabus – the subtopics, the key formulas and knowing how PQ Magazine April 2021

to recall them in order to answer real exam questions on them.

Remember, ACCA is testing you on how to re-engineer the subtopic, not how to regurgitate the study text.

Of course, you won’t pass an ACCA exam if you don’t know the right knowledge. But trust me, you absolutely will not pass these exams if you don’t believe you can.

Confidence (and self-belief) is all about how you feel about your revision. Flex the confidence muscle, every single day, especially in your revision phase. So that you boost your motivation and prepare smartly.

I am here to coach you through how to revise smartly in 30 days.

Obviously, I know you want some practical tips and tactics (yes, these are below). But I would encourage you to embrace the confidence you need from revision first.

Okay? Give me a #YesHelen!

Climb every mountain I love an analogy. My favourite is a mountain climb. Imagine being stood at the bottom of a beautiful mountain, looking up and preparing to climb. If you’re in flip flops then the climb is going to be hard. If you have the right boots, your anorak and a map then you will be in a great position to climb with confidence.

You get where I’m going here… your revision journey is a classic mountain climb. When you have the right preparation, your climb is lighter, easier and more fun.

Your journey up the ‘revision mountain’ could be full of trips and stress if you don’t plan the route properly (i.e. – use a revision plan). And if

you’re trying to run up the mountain (aka cram with one week to exam day) then you are going to trip, crash and burn.

A smart accountant will plan and prepare a smart route up their mountain, to increase motivation, boost confidence and take consistently strong steps up (one step up at a time please guys!).

I’ve talked you through some confidence tricks you need in order to revise successfully in 30 days. Now here you go with some juicy tactics that you need: 1. Write a plan – and stick to it.

2. Always focus on small, bite-sized revision slots.

3. Like-for-like exam condition practice is your best friend.

4. Put the study text away.

5. Repeat after me, every day: “I am a smart accountant because I love revision.”

This article is about how to revise in 30 days.

Here is your reminder with how and what to do: flex both muscles every single day.

Work out, strengthen and powerup your knowledge and your confidence muscles. That’s what will give you the biggest transformation to your successful ACCA exam.

If you’ve liked what you’ve read, then connect with me on LI or IG. If you want to have and use the revision plan that my clients use – then ask me.

If you want weekly coaching, then I’ve got the perfect Revision Club for you – just ask.

• Helen Pretty is an Accounting Revision Coach. She coaches qualifying accountants to successfully pass their exams… with confidence! Email her on hello@ prettysuccessfulcareers.co.uk 23

PQ with AAT, ACCA, ICAEW or CIMA? Why wait?

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For more information and to receive 15% off your ICB Exemption application, call ICB HQ on 0203

405 4000 and quote ICBPQ

Email us at exemptions@bookkeepers.org.uk

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The Institute of Certified Bookkeepers

ACCA FR exams PQ

To impair or not to impair?

Sarah Ardiles explains a concept that those taking the Financial Reporting exam really need to know about

value in use and keep the asset for use in the business if the opposite were true.

Prudence Essentially, by not allowing an asset to be carried at more than it can recover for us we are being prudent. This means that if we have correctly applied the rules in the standard the financial statements should not overstate the reported value of assets (although it is perfectly acceptable for an asset to be carried at below its recoverable amount).

Debits and credits If an asset’s carrying value is higher than its recoverable amount then the asset is impaired and must be written down to its recoverable amount in the balance sheet. But what about the other side of the double entry? Well, this could be a charge to P/L or a charge to OCI (and the Revaluation surplus) or a bit of both! Where this charge will go depends on which of IAS 16’s models is used to measure the asset: the cost model or the revaluation model.

Let’s work out the impairment and show the double entries in these two scenarios: Scenario 1: Asset is held under Cost Model Asset’s carrying value is £1,000 Recoverable amount is £700 The impairment is £300 (1,000 – 700) Dr P/L

£300

Cr Asset’s carrying value

£300

Note that all of the impairment is expensed to P/L under IAS 16’s cost model.

Scenario 2: Asset is held under Revaluation Model mpairment will almost certainly be examined in the Financial Reporting (FR) exam and you are likely to see it in the objective test questions or in the published accounts question. So it is vital you can recognise when an asset has been impaired and know how to calculate the impairment charge, as well as be familiar with the correct accounting treatment.

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Objective of the standard The accounting for impairment is set out in IAS 36 Impairment and it relates to most tangible and intangible non-current assets (there are a few assets which fall outside the scope of the standard, such as Financial Assets). The objective of IAS 36 is to ensure that assets are carried at no more than their recoverable amount. In other words, the asset’s value in the books must not exceed what the business expects to recover from it.

Recoverable amount A business can recover cash from an asset in one of two ways: from using the asset in the business to generate profit or from selling the asset. For example, a pizza oven in a restaurant could either be used to make pizzas to generate income for the business or it could be sold.

There are a couple of technical terms you need to know about these two ways of recovering cash from an asset. The selling value of an asset (for impairment purposes) is known as fair value less costs of disposal – in other words, the net cash you would expect to receive from selling it.

The term value in use is the net cash the business expects the asset to generate through its use and it is measured at present value to take into account the time value of money. It follows that the recoverable amount of an asset is the higher of the fair value less disposal costs and the value in use.

The reason it is the higher figure should be obvious: any rational person would sell the asset if its net selling value was higher than the PQ Magazine April 2021

Asset’s carrying value is £1,000 Revaluation gains to date on asset are £200 Recoverable amount is £700 Impairment is still £300 (1,000 – 700). However, not all of this is charged to P/L. Because the asset was previously revalued, and there is a corresponding gain in the revaluation surplus of £200, we must charge £200 to OCI (and the revaluation surplus) to reverse the previous gain and the remaining £100 charge is expensed to P/L: Dr OCI & Revaluation surplus

£200

Cr P/L (300-200)

£100

Cr Asset’s carrying value

£300

Impairment reviews So do we have to carry out impairment reviews on all of our assets every year? Thankfully not! The standard says that for tangible assets, an impairment review is only triggered if there is an indicator of impairment.

Indicators may come from the asset itself (e.g. damage) and are called internal indicators or they may be external to the asset, such as a global pandemic.

Covid-19 is an external indicator of impairment and unfortunately it will have caused the recoverable amount of many assets in businesses across the globe to fall – think about all those pizza ovens lying idle while diners have to stay at home!

Hopefully you now understand the basics of impairment and you can apply it with confidence in your FR exam.

• Sarah Ardiles is a freelance lecturer specialising in FR and SBR 25

PQ performance management

Why the ‘People’s Car’ broke down T Jo Tuffill offers a lesson in target costing and non-financial indicators

he Tata Nano was a compact car manufactured by Tata Motors, primarily for the market in India. As an inexpensive hatchback it was intended to appeal to riders of motorcycles and scooters. It had the tantalizing launch price of ‘one lakh’ (100,000 rupees/$2,500).

Owning a car was suddenly within the reach of more of India’s population.

This is a great example of target costing. The market price had to be ‘one lakh’ and so the cost of production had to come down to allow for a margin on a sale.

The cost of this no-frills car was brought down by dispensing with most non-essential features, reducing the amount of steel used in its construction, and relying on low-cost labour. Dispensing with the nonessential features is an example of focusing on what the customer values or removing non value-added features. This led to cost reductions, like the passenger’s side wing mirror, one wiper blade, having only three lug nuts per wheel, and the removal of the fuel filler cap from the tank.

The techniques used here are Value Engineering (design and development) and Value Analysis (audit of product and production). These techniques look at every aspect of design, production and product, with the objective to reduce costs whilst satisfying customer requirements.

Target Cost – a four-step process Step 1: A Target Price is set, based on the customers’ perceived value of the product.

Target Price is 100,000 rupees Step 2: Target Cost is calculated by using a margin % or mark-up % Required margin of 20% With margin you minus 20% from 100% to get to the cost, so 100% - 20% = 80%

Require a mark-up of 25% With mark-up you add 25% to 100% to get to the sales price, so 100% + 25% = 125%

Margin 20% Sale Price 100%

Cost 80%

Mark up 25% Sale Price 125%

Cost 100%

The Target Cost is calculated by: Target Price multiplied by the Cost % and divided by the Sales % Margin Target Cost = 100,000 x 80%/100% = 80,000 rupees

Mark-Up Target Cost = 100,000 x 100%/125% = 80,000 rupees

Step 3: The Cost Gap = Estimated or Budget Cost – Target Cost Assuming the estimated or budget cost was 95,000 rupees then: Cost Gap = 95,000 – 80,000 = 15,000 rupees per Nano Step 4: Close the Cost Gap through Value Engineering

Non-Financial Indicators - so what happened to the Nano?

At the launch in 2009 the Nano received 200,000 orders even before the first Nano had been produced. It was set to be revolutionary, India’s answer to Ford’s Model T and VW’s Beetle. Several international awards were bestowed on the tiny car for features such as fuel efficiency, low emission levels, adhering to all the regulations of the time and yet bundled 26

at an affordable price.

It all started so well. Autocar’s Tata Nano review described the vehicle as “cheap and undeniably cheerful. Unbelievable value, if only you could buy one in the UK.” They planned to sell 250,000 cars a year, however, the best annual sales level achieved was only around 75,000 cars, and in June 2018 just three Nanos were sold and production ceased.

The sad demise of the little Nano can be attributed to various reasons: • Safety record: crash performance tests in Germany were given ‘zero stars’ and in Mumbai a Nano caught fire (with more to follow).

• Quality ratings: customers complained of poor ride comfort and stability issues due to its lightweight body. Some reported their Nano cars had basic functionality failures, like the starter motor, speedometer and horn.

• Customer perception: the stigma of buying the ‘cheapest car’ proved to be its undoing. It was considered a poor person’s vehicle. To avoid being associated with a ‘cheap car’ some Indian consumers were witnessed buying a used car from a higher segment rather than buying a new Nano.

• Market penetration: the dealer network was situated only in urban areas while the target market was situated in towns and villages. This made it difficult to market the Nano to their target market, who were not familiar with the car buying experience.

Non-financial indicators The non-financial aspects indicated the car’s demise: safety, quality, customer perception and market penetration. In the PM exam you will be expected to appreciate that it is the non-financial drivers of performance that are critical and that it is these drivers that determine the financial results.

A lesson learned The Tata Nano’s problems started right at the beginning with its target price. It seems that the ‘one lakh’ price tag was just too cheap for a car.

• Jo Tuffill is the PM Tutor with FME Learn Online. Please note that sources for this article came from publicly available information and have not been fact-checked.

PQ Magazine April 2021

viewpoint PQ policies to force change. For example, Germany’s extensive climate package to reach 2030 climate targets consists of the Climate Action Law and the Climate Action Programme 2030. The latter contains action measures for all sectors — such as the coal exit, renewables expansion and support for e-mobility — and cross-sector policies, including a pricing system for carbon emissions in transport and buildings.

Morphing into chief value officers Ethical business is good business.

Businesses are more likely to perform well over the long term — and generate profits for their shareholders — when they look after their customers, employees, suppliers and communities.

As a result, CFOs are not only responsible for overseeing the short-term financial performance of their organisation, they are increasingly monitoring the other ways it creates long-term value.

CFOs are involved with setting and measuring non-financial key performance indicators (KPIs) relating to areas such as customer satisfaction, employee engagement and innovation – in addition to the financial KPIs they would have tracked in the past.

Organisations are increasingly aware that the non-financial KPIs of today are effectively the financial KPIs of tomorrow. CFOs are also encouraging their finance teams to act as value partners to other functions and use their business and management accounting skills to manage the organisation’s relationships with all its key stakeholders.

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The emergence of the

chief value officer How has the finance leader’s role changed as a result of the pandemic, asks Andrew Harding ven before Covid-19 struck, the role of CFO had grown to encompass many responsibilities beyond finance.

CFOs helped lead their businesses with strategic decision-making and often acted as the principal business partner to the CEO. They were also involved in discussions of how their organisations could generate and measure the longterm value they were creating for their stakeholders, as well as reporting on their achievements.

According to members of the Europe Regional Advisory Panel for the Association of International Certified Professional Accountants, the pandemic has further accelerated this evolution of the CFO’s role. In a recent discussion, they highlighted that CFOs are:

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Playing a critical role in business decision-making CFOs and their finance teams are now using their data and insights to support everyday decision-making right across the

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PQ Magazine April 2021

business. Their input is actively sought by colleagues in different functions. They are helping to develop new partnerships, manage risk, restructure the business and respond to evolving customer expectations so that their organisations can thrive in a post-COVID world. Finance teams are also being proactive about showcasing the work they do to other departments.

Overseeing a digital transformation within finance Covid-19 has hastened the digital transformation that was already happening in finance. Many CFOs are investing in technology to automate their organisation’s finance processes. This enables their finance teams to play a more strategic role within the business and support the senior leadership team and board with complex decision-making.

By investing in technology, CFOs not only improve the efficiency of their processes, they also give their

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people the opportunity to perform more rewarding work and add more value to the organisation in the future.

For finance to truly capitalise on the potential of digital transformation, upskilling is essential. Finance professionals must be able to understand meta data and IT systems in order to convert their business and financial requirements into technical requirements that will be understood by IT developers.

Helping their businesses to achieve sustainability targets Finance teams are already familiar with the concepts of budget milestones and cashflow milestones. Under the guidance of their CFOs, they need to start translating their organisation’s environmental, social and governance goals into sustainability milestones. This will involve prioritising the metrics on their board’s top-level scorecard.

Finance’s involvement in helping the business to achieve its sustainability targets will increase further if governments introduce

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The end of the CFO? This is a challenging yet exciting time to be both a finance professional and a CFO. It’s also a time of transition for business. As we move into the post-Covid era, we will find the world has changed and the role of the CFO must change with it. The term ‘chief financial officer’ may even become obsolete sooner than we think – replaced by the ‘chief value officer’, who joins the chief executive, the chief people officer and the chief sustainability officer in the c-suite.

Now that is food for thought.

• Andrew Harding, FCMA, CGMA, Chief Executive – Management Accounting at the Association of International Certified Professional Accountants. This article was first published in CIMA Insights in January 2021.

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IR 35 PQ

Personal Service Companies simplified!

In the latest in his ‘Keep it Simple series’ Neil Da Costa shows you how to deal with Personal Service Companies, currently a hot topic any UK employees have set up personal service companies (PSC) to invoice their employers, to reduce their PAYE tax liability.

In so doing, they could deduct a lot of trading expenses in computing the company’s trading profits and extract the profits via a dividend, so benefiting from lower income tax rates and saving national insurance contributions.

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In deciding whether or not the company is a personal service company, HMRC use the ‘Mutuality Of Obligation’ (MOO) test. They carefully look at the contract to determine if both parties have certain expectations that amount to a de facto employment relationship.

BBC presenter Crista Ackroyd In a well-known case, which was decided in HMRC’s favour, the courts looked at the TV presenter Crista Ackroyd and found that the BBC controlled exactly what services her company could provide. She was also restricted from engaging with any competitors.

Ms Ackroyd was obliged to provide services to the BBC, who paid her PSC the same fee each month. Under the MOO test, she was for all intents and purposes, a BBC employee. HMRC assessed her PSC on unpaid tax of £420,000.

IR 35 rule Under IR 35, the PSC is responsible for paying the PAYE on the deemed or assumed salary. The company gets a 5% deduction for expenses. In addition, any salary paid by the PSC and employer’s NIC can also be deducted.

However, the PSC is not allowed to claim the employment allowance as it only has a single employee. The amount is treated as inclusive of employer’s NIC of 13.8%.

The individual has to pay income tax and employee NIC on the deemed salary. To avoid double taxation, the individual can make an election to treat the dividend as coming out of the deemed salary.

Simple Example (Jack and Jack Ltd) Jack is a TV cameraman. He only works for the TV company and must do all the work himself. The TV company provides him with the camera equipment and pay him monthly.

To reduce his PAYE, Jack sets up Jack Ltd to invoice the TV company.

The TV company pay Jack Ltd a fee of £100,000 a year. Jack Ltd has expenses of £15,000.

Jack Ltd has paid Jack a salary of £20,000 and has employer’s NIC of £1,569.

In addition, Jack has taken £60,000 out of the company as a dividend.

Jack Ltd is a PSC. Compute the deemed salary that the PSC is responsible for paying PAYE on under IR 35.

PQ Magazine April 2021

Solution To Jack and Jack Ltd Jack Ltd is allowed a 5% deduction for expenses – £100,000 x 5% = £5,000.

In addition, Jack Ltd can also deduct the salary and the employer’s NIC as PAYE has already been accounted on the salary. £100,000 – £5,000 – £20,000 – £1,569 = £73,431.

The £73,431 is inclusive of employer’s NIC at 13.8% so represents 113.8%. The deemed salary is therefore 100/113.8 x £73,431 = £64,526 The PSC is responsible for accounting for PAYE on the £64,526 on 22 April following the tax year. To avoid double taxation, Jack can make an election to treat the dividend of £60,000 as coming out of the deemed salary of £64,526.

Extension of the PSC legislation Public sector employers such as the BBC and the NHS are already IR 35 compliant and would deduct PAYE at source to any consultants as the responsibility has now been passed to the end client instead of the PSC. As a result of this, it is estimated that 80% of government IT projects suffered delays due to contractors leaving.

HMRC have now decided to extend the rule to the private sector and instead of the owner of the PSC declaring that the company is a PSC, responsibility has been put on the end client. These rules were meant to come into place from 6 April 2020, but have been delayed due to Covid.

Small companies that satisfy at least two of the following three conditions are exempt from the rule: • Annual turnover of not more than £10.2 million • Balance sheet total of not more than £5.1 million • Not more than 50 employees Planning It is still possible to avoid the PSC rules through umbrella companies and the right of substitution and it is important to seek the correct tax advice to avoid a nasty tax bill.

• Neil Da Costa is a Senior Tax Lecturer with Kaplan. He believes in keeping things simple and making tax fun 29

PQ CIMA study

The work ethic of winning students Clancy Peiris has some top advice on how to develop that all-important work ethic

ork ethic is a set of values based on the ideals hard work, self-discipline and self-regulation. Having a strong work ethic will be an essential part of being successful in both your CIMA studies and your career.

Forming good habits such as focusing, staying motivated, or finishing tasks immediately will contribute to creating a good work ethic, but that’s always easier said than done. So here are our five top tips to transform yourself into a self-disciplined learner and attain your learning (and career) goals smarter and quicker.

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Tip #1 Focus on ‘why’ you do what you do. As an adult learner, you will be more motivated if you can understand how the potential outcome can benefit you. Therefore, keep reminding yourself of the purpose of your CIMA studies and what you want to achieve with it in life.

Actions: Write down ten reasons you want to complete your CIMA exams and place this list a visible spot on your study desk.

You may initially find it difficult to come up with more than a couple reasons but stick to this task and the inspiration will flow. When you get distracted or discouraged, remind yourself ‘why’ you are doing this and it will give you the power to refocus on the critical task at hand.

Tip #2 Control the present. You only have control over the present moment, which is a reflection of the overall direction and nature of your destination.

To pass your CIMA exams tomorrow, you need to study and prepare for your exams today. You can ensure that you stay on track reaching your planned goal by focusing your energy on the right tasks.

Actions: Plan your week in advance (say, every Sunday evening) and have a dedicated calendar (not a to-do list) where you clearly allocate day, time and length for your study sessions among your other activities for the week.

Your calendar will help you say no to everything that does not support your goal (saying yes to one things means saying no to many). Having a meaningful routine will help you block distractions. Remember that each productive day contributes to a productive week, a productive month is a collection of four productive weeks, and so on. Each step counts for reaching your goal.

Tip #3 Clean up your space. Working in a clean and clear area can help improve focus and give you some peace of mind. Having a dedicated space with minium distractions is ideal for doing efficient and focused study sessions, and will help you keep things organised.

Actions: Turn off all push notifications on your computer and keep your mobile phone away, either put it on silence or switch it off. Let your family and friends know you are studying so that so that they won’t disturb you – your priorities are not necessarily their priorities.

A change of scenery could be all it takes to get you into study mode. If you can’t do it at home, think about booking a meeting room in the office or going to a library for a few hours. If you prefer to have some background music while you study, instrumental music is best.

lovely bits of life over the challenging and tedious – it’s entirely rational, understandable, and makes perfect sense. However, procrastination is often followed by a series of negative emotions such as guilt, doubt, inadequacy and self-loathing, which results in creating more stress and anxiety.

Actions: Use procrastination as a personal diagnostic tool as it usually tells us something about ourselves. You need to identify what causes you to experience a gap between your intention and action, and address the underlying issue. Check the table at the end of the article for help with this task.

A perfect storm of procrastination usually occurs when an unpleasant task meets a person who is highly impulsive and lacks self-discipline.

There will never be a right time, mood, vibe, or place – start now.

Tip #5 Stay consistent. If you want to boil water, you need to keep heating it until it fully boils. If you keep heating it in intervals, it will take more time for the water to boil, or it may never boil at all. The same applies to your studies.

Start initially with a 30 minutes study session then take a short break, increase the length of your study session by five minutes every day until it reaches 50 minutes. Keeping this rhythm up will benefit you throughout your studies.

Actions: Differentiate between leisure and learning. Set aside time to reward yourself after completing a specified amount of studying. Go for a walk/run/swim, watch TV, listen to music – do anything that makes you relaxed and happy.

Reward yourself after the session of studies (not before!). You may be tempted you to play a video game, call a friend to catch up, browse social media for five minutes and then start studying – this stragegy will prove detrimental in the long-term.

Finally, remember that you may not reach the destination overnight, but you can change the direction of travel overnight. Being productive is about energy and focus (not the amount of time you spent on one task) – so for maximum productivity and motivation, think about sprints, not marathons; and then rest.

Why do we usually procrastinate?

What may we do about it?

Worry, fear or a belief that you don’t have the essential skills and ability to do a difficult or challenging task.

Face the fear, control it, and get on with the work in hand. Success does not come from finishing, it comes from starting.

Perfectionism – perfectionists fear being unable to complete a task perfectly, and tend to put it off as long as possible.

Focus on completion over perfection. Just trying and doing it OK is better than not starting at all. Celebrate micro-moments of achievement.

Negativity, cynicism or blaming of others.

Claim responsibility for and own your success, achievement, and failure. Most people fail because they don’t start.

Take a small step and move forward consistently.

Confusion around priorities and the inability to distinguish obligations from options.

Identify tasks that are important to achieve your goals. Use the 80/20 rule, also known as the Pareto Principle, when appropriate.

Laziness, lack of energy or motivation

Remind yourself of the consequences of procrastination. Try to complete several small tasks to give you a feeling of accomplishment. Make sure to reward yourself after you complete a task.

• Clancy Peiris, Senior Learning Development Manager, Association of International Certified Professional Accountants

Tip #4 Address procrastination head on. Procrastination is a series of avoidance behaviours and failure of self-regulation. You choose the pleasant and 30

PQ Magazine April 2021

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“Taxpayers need to have confidence that HMRC is exercising its powers proportionately and that appropriate safeguards are in place.

A degree of external scrutiny is required” - ICAS

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Send us an email info@hmrctaxinvestigation.co.uk

PQ AAT AQ2022

AQ2022: what

you need to know We spoke to First Intuition’s Nick Craggs about the latest announcements on AAT’s new syllabus – AQ2022 AT PQs will now have until 30 June 2023 to complete any outstanding level under AQ2016, First Institution’s Nick Craggs revealed in a recent Facebook post.

AQ2022 is due to be launched on 1 February 2022, and AAT had previously said that students would have until 28 February 2023 to complete AQ2016. So PQs have now been given an extra four months.

Under AQ2022, the AAT is reintroducing levels. Gone are the foundation, advanced and professional stages, and back come Level 2, 3 and 4.

AAT is also trying to end duplication in the new syllabus, and students will be pleased to hear that there will be fewer exams and no synoptics. “I cannot stress how good that is, it’s like the promised land,” said Craggs. The only proviso to this is for apprentices – they will still have to sit a synoptic.

He said four themes that run throughout the new syllabus are technology, communication, ethics and sustainability. “There will a lot more focus on technology,” explained Craggs. And rightly so, he said.

Level 2 AQ2022 will change with the Introduction to Bookkeeping (effectively Bookkeeping Transactions, and a like-for-like

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Nick Craggs

swap), which will now test digital bookkeeping systems. You won’t have to use Xero or Sage 1, but students need to be aware of the advantages and disadvantages of bookkeeping systems.

The next unit is Principles of Bookkeeping Controls – pretty much a straight replacement

for Bookkeeping Controls. Elements of Costing will become Introduction to Costing.

The Foundation Synoptics has been replaced with a unit called The Business Environment.

This is looking at real-life business issues such as contract law, the economic environment (think interest rates here), the government, tax and business structure. So, just four exams for Level 2 – gone is Using Accounting Software.

You also have to wait six weeks for the results of The Business Environment exam, and Craggs advice is not to do this one last as you can sit another unit while you are waiting for that result.

At Level 3 there will be big changes.

Advanced Bookkeeping and Final Accounts Preparation have not really changed. However, under AQ2022 they become one huge unit and one huge exam! The new Management Accounting Costing unit will have spreadsheets in it, and as there is an element of human marking you will again have to wait six weeks for the results. The new Principles of Taxation will include payroll.

The synoptic at this level is replaced by a Business Awareness paper. It will look at the business environment: the internal versus external environment, types of business, legal framework and risk management. The major change in this paper, however, is the technology content. We are talking block chain, AI machine learning, data analytics, cloud accounting and real-time data.

Again, you can sit papers in any order.

At Level 4 there isn’t so much change, suggested Craggs. You have got the same units and content. However, Budgeting and Decision Controls are now one unit – which might cause some problems. Financial Statements has no change whatsoever, and Internal Controls is the new big unit here (replacing the synoptic).

Craggs said the option units are pretty much the same, too. He explained BTAX will have no R&D and any duplication with PTAX will go.

With PTAX there will be no IHT calculations, and Audit will now include internal and external auditing.

AQ2016 PQs need to be aware of the transitional rules. Those who pass BTRN, BKCL and ELCO at Level 2 will get the equivalent papers under AQ2022. The complications come if you have not passed the Synoptic and Using Accounting Software unit. If by 30 June 2023 you have not completed these you will need to sit the new Business Environment paper. You will also have to sit the Business Environment paper if you have passed every paper except the Using Accounting Software unit. The nightmare scenario is if you passed BTRN, BKCL, FYSA and UACS, but failed ELCO. In this case you would have to sit the Introduction to Costing and the Business Environment paper.

Craggs said Level 3 is complicated. As two units are being put together you need to pass both AVBK and FSAPR to get the new, bigger paper exemption.

Level 3 students also have to have passed MMAC and the AVSY to get the exemption from the new Costing unit.

Level 4 is a more straightforward, but you will need to pass MABU and MDCL to get an exemption to the new bigger unit.

• Find out more at https://tinyurl.com/2n6tykhf PQ Magazine April 2021

AAT Level 4

PQ

Show them what you’ve got Gareth John explains what you need to do to score the marks on the narrative written tasks you need to get that pass evel 4 is the final hurdle that AAT students face before they earn a qualification that can have a dramatic impact on their career. A qualification that is so valuable and well recognised is going to be challenging, particularly at the last level. As I often say: “Nothing worthwhile is easy, and nothing easy is worthwhile!”

One particular aspect that students tend to find difficult are the narrative written tasks that are introduced at Level 4, and the Management Accounting: Decision and Control assessment is no exception.

In the Decision and Control assessment, students might be asked to explain a few variances in the context of a scenario. Many students will answer this sort of written question with a detailed explanation of how to calculate each of the variances mentioned, to which my first thought is, “Why are you telling me this? I know you can calculate variances”.

In the assessment you will already have been asked to calculate variances in another task.

These sort of numerical tasks are automatically marked by the exam software as it’s easy to identify if the number entered is correct or not.

So why would the AAT pay real human markers (which are expensive) just to test students again to see if you can calculate variances? Why would they waste a second task in the assessment testing the same knowledge?

The answer is that they don’t and they won’t! You have to ensure that your answer demonstrates to them the additional knowledge that they want you to show, not simply repeating knowledge you have already proved you have.

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So what should you do?

In the written questions on variances you will PQ Magazine April 2021

need to be able to calculate some variances, but the figures themselves are not what the marker is going to be interested in. They will be looking for you to suggest what might have caused the variances, and what effect they will have on the business. You need to demonstrate a thorough understanding of how variances can improve the way we run the business.

So, for example if you calculate that the labour rate variance for a company is adverse, you need to be able to suggest possible causes for this. Sometimes the detail of the scenario will allow you to identify a possible cause, but sometimes it won’t. If it doesn’t give you any clues you need to suggest possible causes. You don’t need any proof to back it up, it just needs to be sensible.

Looking at our adverse labour rate variance scenario, the first step is to understand clearly what this variance means. The labour rate variance shows the difference between the actual labour rate paid per hour compared to the standard that was expected. An adverse labour rate variance means that we actually paid more per hour than anticipated. This is why you can’t just learn how to calculate variances by rote, without knowing what they are actually showing. Knowing exactly what each variance shows about the business will greatly help you in answering the written questions with relevant points.

So, if the labour rate variance is adverse, you don’t want to say that you employed cheaper labour as this is clearly is wrong; this would in fact cause a favourable variance. A more appropriate answer could be that you had to pay for overtime working during the period. You need to assume the marker doesn’t know that overtime is often paid at a premium so you need

to state this fact in your answer.

While it is obvious to you and you may think it ‘goes without saying’, it would earn you valuable marks in your answer. It could also be that you have employed more experienced, highly-trained staff who are paid at a higher rate per hour than normal workers. You don’t need to know this for certain, it just needs to be a sensible, possible cause for an adverse labour rate.

How do you get top marks?

If you are looking for top marks in the written questions and that elusive Distinction grade, you can add real value to your answer by linking variances to each other. Showing these sorts of inter-relationships will really excite the markers!

For example, if the adverse labour rate variance is because you did employ more experienced, highly-trained staff you would probably expect them to work faster. This means that the labour efficiency variance is likely to be favourable.

You do, however, need to look at the bigger picture, and consider what the overall net effect is. If the labour efficiency variance is £500 favourable but the labour rate variance is £700 adverse, the overall profit will be down by £200.

The move to recruiting better workers might not have been worthwhile.

Finally, don’t just assume that if overall costs are up profit is definitely down. If a business uses better labour or better materials this may mean that the quality of the product is better.

This could mean that the selling price charged is higher than expected so that the extra costs might be offset by extra revenue.

The Decision and Control exam is not easy so you want to get as many marks from the written questions as possible! Make sure you practise questions that force you to identify and explain these sorts of commercial insights.

• Gareth John is chief executive of First Intuition Cambridge 33

PQ ethical dilemmas group compliance officer.

Can you share the contracts?

Ethics in action

Bryony Clear Hill outlines a workplace dilemma to set you thinking about how you would – or should – act when contract confidentiality is at stake

he modern workplace can be an ethical minefield. This article will help you tackle the thorny but very real challenges that management accountants face in the workplace.

Written by the CIMA professional standards team and based on realistic situations, the following is a practical guide to using the CIMA Code of Ethics to guide good decision-making.

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The scenario You work at WeMakeStuff, a large manufacturing company that makes all types of gadgets and widgets for the modern family. As the financial director for the widget division, you have overall responsibility for signing off on contracts with a value above £100,000.

You are approached by the group compliance

officer, who tells you that a report has been made via the confidential Speak Up hotline that members of the procurement team have been colluding with suppliers to increase the value of contracts, with both sides taking a cut of the additional profits.

The group compliance officer asks you to help with the investigation by providing a list of all contracts signed in the last year and contracts in the process of negotiation within your division.

However, several contracts are highly confidential, related to a new area of business development. Only you, key members of the finance and procurement teams, and the CEO are aware of the details of these contracts.

You are unsure as to whether you can share the information about these contracts with the

Ethical issues and guidance The key issue here is what information you can and should share with a member of staff to support an internal investigation into possible misconduct and fraud.

Under the fundamental principle of confidentiality in the CIMA Code of Ethics, you have a duty to “maintain confidentiality of information within the firm or employing organisation”. The Code specifies that you may disclose information which would normally be kept confidential when required by law, or to comply with an inquiry or investigation by a professional or regulatory body.

However, this specific example involves an internal investigation. You should consider the risks of disclosure as well as the implications of refusing to disclose the information.

Refusing to disclose the details of these contracts could jeopardise the ability of the compliance team to investigate the reports.

Colluding with suppliers could constitute serious fraud, and it is certainly possible that legal action will be taken against the employees should the internal investigation substantiate the claims.

If you refuse to share the information with the group compliance officer or provide an incomplete list by leaving out the confidential contracts, you could create the risk that the alleged fraud may continue, putting the organisation at greater risk of losing money and future legal action being taken.

You should also consider that handing over the information does mean disclosing confidential information to a wider group of employees.

However, the group compliance officer and their team will be well aware of the importance of maintaining confidentiality, given the nature of their roles. You should specify when providing this information that it should be shared with only essential members of staff, explaining that it is commercially sensitive.

You may also wish to alert the CEO that you are sharing this information, although you should consider discussing this with the group compliance officer first to ensure that this would not compromise the investigation if, for example, the CEO is in any way implicated in the wrongdoing.

• Bryony Clear Hill, Associate Manager – Ethics Awareness at the Association of International Certified Professional Accountants. This article was first published in FM Magazine in October 2020

Registered Tuition Provider

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PQ Magazine April 2021

test bank PQ

Marking your card Dr Philip E Dunn tests your knowledge of Year End and other Adjustments

his Test Bank issue will be of relevance to those trainees on the Assistant Accountant Level 3 Apprenticeship.

The Administration Expenses Account of Davenport Ltd showed opening accruals of £510 and opening pre-payments of £800. During the year the bank summary showed payments of £17,500. At the end of the year accrued expenditure amounted to £650 and expenses pre-paid were £750.

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Q1: What was the amount to be charged to the Profit or Loss Account for the year?

You are responsible for the Accounting Function at a golf club. At the start of the year the Subscriptions Account showed opening subscriptions in arrears of £1,500 and subscriptions in advance of £2,000. During the year the bank summary showed receipts of £50,000. At the end of the year subscriptions in arrears amounted to £3,000 and those in advance £4,500.

Q2: What would be the amount of subscriptions shown on the Income and Expenditure Account for the year?

You are responsible for the Sales Ledger and Credit Control Function in a SME. At the end of the year the Total Receivables was £150,000 and it was decided to provide an allowance for Doubtful Debts of 2% of the total.

Q3: To which side of the Allowance for Doubtful Debts Account would an amount be posted?

Q4: What figure would be charged to the Profit or Loss Account for the year?

The following year end the Total Receivables amounted to £200,000 and it was decided that the Allowance for Doubtful Debts would remain at 2%.

Q5: What amount would be credited to the Allowance for Doubtful Debts Account following this revision.

Q6: What amount will have been offset against Total Receivables on the Statement of Financial Position?

The following year end Total Receivables amounted to £175,000 and the allowance was to remain at 2% Q7: What amount would be credited to the Profit or Loss Account for the year?

Q8: To which side of the Allowance for Doubtful Debts Account would the relevant amount be posted?

Q9: What would be the amount stated for Receivables on the Statement of Financial Position at the year end?

Q10: Which International Reporting Standard deals with Inventories?

You are dealing with the Inventory Valuation for a client and the Inventory has been valued at £90,500. It was discovered that four items of stock had recently been slightly damaged and the detail is shown below.

Cost £

Selling Price £

Net Realisable Value £

C1

420

560

350

C2

550

720

560

C3

600

780

500

C4

700

900

650

Q11: What adjustment needs to be made to the Closing Inventory?

You are working on a client’s year end accounts.

An amount of £3,500 has been posted to the Administration Account and this amount was for school fees for the client’s daughter.

Q12: How would you correct the previous posting for this transaction?

A VAT registered trader takes goods for his own use that normally have a selling price of £900 including Vat. Q13: What would be the entries required to deal with such a transaction?

You work as an Accounting Assistant for a SME. One of your duties is to prepare the Bank Reconciliation Statement. It is the month end and your Cash Book shows a Debit Balance. The balance on the bank statement shows a Credit Balance of £1,500. However, you note that there

were three cheques entered in the Cash Book not yet presented to the bank for a total of £450.

There were bank charges of £120 shown on the statement not yet in the Cash Book.

Q14: What would be the adjusted Cash Book balance at the month end?

Q15: From the following figures what would be the closing balance on the Sales Ledger Control Account? Opening Receivables £75,000, Sales on Credit during the year £200,000, Sales Returns £10,100, Discounts Allowed £7,500, Bank receipts from Receivables £190,000, Bad debts written off £1,200.

Q16: From the following figures what would be the closing balance on the Purchase Ledger Control Account? Opening Payables £40,000, Purchases on Credit during the year £130,000, Purchase Returns £12,100, Discounts Received £8,100, Bank Payments to Payables £95,000.

At the start of the year the Plant and Equipment at Cost Account showed a Debit balance of £180,000 and the Provision for Depreciation on Plant and Equipment Account showed a Credit balance of £72,000. During the year Plant to the value of £80,000 (net of VAT) was purchased.

The business depreciates its assets in the year of purchase but not in the year of sale at a rate of 20% Straight Line basis.

Q17: What would be the charge for Depreciation for the year?

Q18: What would be the carrying value of the Plant and Equipment on the Statement of Financial Position at the year end?

• Dr Philip E Dunn is a freelance author and technical editor for Kaplan and Osborne Books

THE ANSWERS Q1: £17,690; Q2: £49,000; Q3: Credit; Q4: £3,000; Q5: £1,000; Q6: £4,000; Q7: £500; Q8: Debit; Q9: £171,500; Q10: IAS 2 Inventories; Q11: A reduction in value of £220; Q12: Debit Drawings £3,500 / Credit Administration Account £3,500; Q13: Debit Drawings £900, Credit Sales £750, Credit VAT £150; Q14: £1,050; Q15: £66,200; Q16: £54,800; Q17: £52,000; Q18: £136,000.

PQ Magazine April 2021

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PQ home study

How to stay

motivated Learning at home can be tough. So how can you stay motivated to study? Cath Littler has some pointers for you

otivation is hard when you are working on your own, so the news that schools and colleges are opening up again is welcome to all. However, there is still a long way to go before we are back to normal, whatever the new normal will be.

Whether your usual method of studying is classroom based, distance learning or blended (a combination of online and classroom learning) you will always have to study at home as part of your course. This article

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tomorrow. The trouble is that tomorrow tends to go the same way and then, before you know it, a whole week has passed and you still have not got going. So, you need to break out of any negative cycles quickly. You can have a word with yourself and that often helps, but not always.

Think about needing to do some gardening. The first thing to do is to walk out of the back door and go into the garden.

Then maybe wander around for a bit, perhaps sit on a bench and look around. Soon enough you will find a small, quick task to do, fetch the tools and you have started.

If you need to work on your computer then the first thing to do is switch it on. We can do that.

While it is firing up, get a cup of tea. Then go back to the computer and log on to your Virtual Learning Environment or check for messages. Maybe you could watch a video lesson or answer a question. That is not too big a target.

Then it is easy to do another

question or two. Then another.

Before you realise it, you are deep into your studies.

So, very small, achievable targets help to draw us in.

Of course, there will be the tasks that you find difficult or simply cannot be bothered with.

That can be harder to deal with as there are many distractions that we can allow to divert us from studying, so this is where rewards come in.

Rewards do not have to be big.

In fact, it is often the little things that work best. Make the reward fit the achievement. Maybe a hot drink or a snack or a call with a friend after 20 minutes of study.

Perhaps set milestones which, when reached, mean that you buy yourself a little present. We respond to different things, but rewards help us to stay on task.

Finally, if you are stuck, ask for help from a friend, fellow student or colleague – reach out and get some support.

• Cath Littler is Head of Learning and Development (Accounting) at Mindful Education

aims to give you some simple tips to motivate yourself and get back on track with your studies.

When things are hard, and you are not in the mood, then longer-term targets such as ‘think about how you will feel when you get your certificate’ seem too far away to be motivating.

When feeling bad you may think that you will never get there (you will!).

It is better to deal with the here and now.

Today you might be fed up, wanting to postpone tasks until

PQ Magazine April 2021

careers PQ

Dear Karen Ask PQ’s agony aunt Karen Young when you need expert advice. Email your dilemma to graham@pqmagazine.com, and he will pass on the best ones to Karen THE DILEMMA I’m due to re-start my role having been on and off furlough for the past year. My self-confidence has dipped considerably as a result, so have you got any advice on what I can do to improve this?

Life at Eintech Anna Kate Phelan is a Senior Product Manager at the company, which specialises in education software. She has degrees in Digital Design, Technology and Innovation, and Communication Studies What time does your alarm go off on a work day? 7.30am and usually every five mins until 8.

What is on your desk? Computer and accompanying bits, water bottle, and the occasional cup of tea.

How long is your commute to that desk and is it better now?

It’s a two-minute commute and naturally.

Do you have a favourite lunch?

Nothing beats a ham and cheese toastie.

What can you see when you sit at your desk? My computer.

Which websites are your favourites during lockdown?

Netflix, YouTube and the BBC; all pretty boring. I would recommend checking out radio.garden for

when you’re working/studying – you can access radio stations throughout the world via a really cool interactive map.

How many hours a week are spent in online meeting rooms?

Too many.

Are you spending more time working now than normal? Very hard to tell – isn’t this the new normal?

How do you relax? Baths and too much food.

What is your favourite tipple?

Baileys, roll on Christmas 2021!

What’s your favourite TV show?

RuPaul’s Drag Race (UK and US).

What is the best film you have watched recently? Soul, the new Pixar film, so lovely.

Summer or winter? Summer – sunny times are the best times.

Think back, do you prefer pubs or clubs? Pubs, I love a good chinwag.

Do you have a hero? After this last year, the answer has to be all the amazing people at the NHS. What is the first thing you are going to do when lockdown is over? Visit my family in Ireland.

If you had a time machine where would you go? Ancient Egypt, it would be amazing to see the pyramids in their prime.

of capable, experienced women is full to overflowing. It is now for business to fully utilise a talent pool of educated, experienced women to their own benefit and that of the UK economy.”

invests some of the country’s oil revenues for future generations, owns an estimated 1.5% of all listed shares worldwide.

In brief KAREN’S RESPONSE I’m pleased to hear your employer is bringing you back from furlough – and hopefully they will have support in place to make you feel comfortable. The good news is that self-confidence is a skill. It’s something we can all master with learning, and a bit of practice.

There are lots of ways you can train yourself to be more confident as you return to the workplace. A lot of this will come from finding your feet again, and establishing new routines and rituals. So: 1. See challenge or failure as an opportunity to learn.

2. Appreciate what you’re good at.

3. Be self-aware regarding your negative self-deprecating thoughts, and keep your inner-critic in check.

4. Always set daily goals, broken down into smaller tasks, and work towards achieving these each day.

5. Celebrate any small wins or positive feedback.

6. Always be honest about how you’re feeling with your close network.

7. Step outside your comfort zone and challenge yourself.

8. Learn new skills and looking after your wellbeing.

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

PQ Magazine April 2021

Pap Women in the workplace One in three FTSE 350 board positions are now held by a woman, according to the government backed HamptonAlexander Review. The number of women on boards has risen by 50% since 2015. However, there are still just 17 women CEOs in the FTSE 350 and some 28 companies still have all-male executive committees. The call has now come for increased female representation in boardrooms to be replicated in other senior management positions. Head of the Review, Denise Wilson, said: “The supply

Pap Norway wants diversity One of the world’s biggest investment funds has said it will start voting against companies that have fewer than two women on their boards. Norway’s $1.3 trillion sovereign wealth fund said it expects companies to set gender diversity targets if they have less than 30% women on their boards. The fund, which

Pap Apprenticeship slow down Two-thirds of UK firms have not invested in new apprentices over the past 12 months, according to a new survey from In-Comm. It discovered the pandemic is (not surprisingly) having a dramatic impact on vocational training.

Apprenticeship starts dropped by nearly a fifth in 2020, and the survey also found half of firms have cut their training budgets.

The PQ Book Club: books you should read Go Live! Turn virtual connecting into paying customers, by Jeffrey Gitomer (Wiley, £15.99) Self-styled ‘King of Sales’ Jeffrey Gitomer says the best time to start a podcast was 10 years ago. The second-best time is now! We like that positivity.

He also says: “Live, virtual, video, distance presenting, distance learning, and distance selling are here for at least the next decade and will intensify as years pass.”

For him the new normal means we all have to take a virtual and live path. He says you must also record virtual meetings and watch yourself

every single time you record. It may sound weird but works.

Gitomer believes broadcasting live really works, too. Live streaming lets you create a stronger, more personal relationship with your audience (potential customers). Also, most platforms give priority algorithms to live video.

According to Facebook, people spend triple the amount of time watching live video because it’s exciting, in the moment, compelling and interactive.

He acknowledged that a lot of people would rather record a video and have it professionally edited than to do a live video.

And that’s fine to do once in a while. However, you lose the authenticity factor.

We liked his five secrets to success: don’t give up if you don’t get an audience straight away; just be you, no need to be all cool and trendy; deliver value; deliver your message with passion; and try to include your audience – acknowledge people on your live stream.

PQ rating 5/5: As Gitomer says, going live is no longer an option. It’s essential.

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PQ got a story, funny or serious, you want to share? Email graham@pqmagazine.com

Someone has a sweet tooth A UK government official is under investigation after spending over £6,000 on chocolates just before Christmas. An employee with the Information Commissioner’s Office (ICO) used a corporate credit card to buy £6,248.40 of luxury chocolates from Hotel Chocolat. The transaction, made on 21 December, was spotted when the list of the ICO’s corporate charge payments in excess of £500 for the 2020-21 tax year was published for the public record.

The ICO has confirmed the payment is subject to an internal investigation, and that the transaction has been made ‘contrary to ICO policies’.

Time to rise and shine

Accountancy’s a joke Top tutor and friend of PQ Paul Sizer was recently tidying up his desk when he came across an old piece in the Daily Mail on accountancy jokes. He was wondering if we should put out the challenge for our readers to improve on some of these! It shouldn’t be hard…

As Keith Morgan told the Mail: “As a former accountant I always enjoyed accountancy jokes and TV sketches. My favourite is the Monty Python sketch in which chartered accountant Mr Anchovy (Michael Palin) visits a vocational guidance counsellor (John Cleese), only to be told his ideal job is – accountancy! “Well, er, yes Mr Anchovy, but you see your report here says you are an extremely dull person.

Our experts describe you as an appallingly dull fellow, unimaginative, timid, lacking in initiative, spineless, no sense of humour, tedious company, and irrepressibly drab. Whereas in most professions these would be a drawback, in accountancy they are a positive boon!” Check it out at https://tinyurl.com/yhx6k8r9 Morgan added his favourite joke: A patient was at her GP’s surgery after undergoing an examination. The GP tells her: “I’m afraid you only have six months to live.” The patient asks: “Oh, doctor, what should I do?” The doctor replied: “Marry an accountant.” “Will that make me live longer?” asks the patient. “No, but it will seem far longer,” said the doctor.

Meanwhile, Charles Worsley’s joke was: “What do an accountant and a rhinoceros have in common? They are both thick-skinned, shortsighted and charge a lot.” We liked that one better!

’ WEV E

In the can?

You can fit all the Covid virus in the world in a single Coke can, according to British mathematician Kit Yates. He has worked out that there are two quintillion (that’s two billion billion to you and me) virus particles flying around the globe at any one time. Yates said: “It’s astonishing to think that all the trouble, the disruption, the hardship and the loss of life that has resulted over the last year could constitute just a few mouthfuls.” The Bath University man used the diameter of SARS-CoV-2, which has an average of 100 nanometres (100 billionths of a metre), and then calculated the volume of the spherical virus. That all adds up to less than a single 330mm can, he said.

Waking up at the same time each day helps you maintain a good mood and reduces your risk of long-term depression, according to a new study. Those who go to sleep at different times and have no regular wake-up time are as likely to be in as bad mood as those who sleep too little or stay up late. A team at the University of Michigan used student doctors (lots of them) for their study. The young doctors were fitted with Fitbits, asked to report their moods on a smartphone app, and took quarterly test for signs of depression. Lead researcher Srijan Sen said: “These findings highlight sleep consistency as an under-appreciated factor to target in depression and wellness.” He also felt the work underscores the potential of wearable devices in understanding sleep patterns.

No beating the taxman The author of the book ‘The

Taxpayer Strikes Back’ has been given a suspended sentence after being found guilty of not paying his taxes! Martyn Arthur has been ordered to repay £63,000 by the end of April or serve nine months in prison. A recent proceeds of crime hearing was told that Arthur had repaid some of the money, but not all of it. The prosecution said former Inland Revenue man submitted inaccurate tax returns in order to avoid paying the tax that was due. He then covered his tracks by “deliberately keeping incomplete records, using multiple accounts and moving money between them”

GOT THE L OT

Train Tracks We have three copies of The Times Train Tracks puzzle books (Book 1) to give away this month.

A train is departing from town A and travelling to town B, but the track has not been completed.

Your job is to find out where the rails must go.

You have some 200 challenging visual train track puzzles to compete. This could help to take your mind off the countdown to the beer gardens opening.

To be in with a chance of winning one of these books simply send your name and address to giveaways@pqmagazine.com. Head up your email ‘Train Tracks’ and we will do the rest.

Butterflies & Blooms There are over 100,000 dots in Christina Rose’s Dot to Dot Butterflies and Blooms book. With this prize you can relax and unwind as you gradually join the dots to reveal striking scenes of beautiful butterflies and flowers which once completed can also be coloured in if you wish.

It can be your way to reconnect with the beauty of nature and take some relaxing time for yourself.

To enter this great giveaway send your name and address to giveaways@pqmagazine.com. Head up your email ‘Butterflies’ and we will put you name into the hat for the draw for one of the three books up for grabs.

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 16 April. The main draw will take place on Monday 19 April 2021.

TO ENTER THESE GIVEAWAYS EMAIL GIVEAWAYS@PQMAGAZINE.COM 38

PQ Magazine April 2021