PQ magazine, January 2024 by PQ magazine

Incorporating NQ magazine

January 2024

ANNUAL BUMPER QUIZ

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WHAT CHATGPT TOLD US

NOMINATE FOR OUR 21ST PQ AWARDs

SHOW ME THE MONEY! he rising cost of living means money has become more important than ever for accountancy professionals, according to the latest Hays UK salary and recruiting trends guide 2024. Most (90%) employers in the finance sector increased staff salaries over the past 12 months, and it will come as no surprise that nearly three-quarters of employers (73%) say they did so because of the rise in the cost of living. Almost two-thirds (64%) of PQs describe themselves as satisfied, or very satisfied, with their salary. However, of the 42% of PQs who say they are more inclined to move jobs due to the current cost-ofliving crisis, the majority (62%) say it is due to their current salary not covering their living expenses. So there are some mixed messages out there. Hays reveals pay within accountancy and finance over the past year has increased by an average of 5.6% – above the overall average increase across the UK (3.5%). More specifically, payroll and treasury roles (both 6.8%), accountancy support (6.5%) and PQ accountant roles (6.2%) saw the highest pay increases. Since the pandemic,

professionals have had a taste for flexible working, but now some employers are calling for a return to the office. This shift is reflected in the research findings; while 30% of PQs were based fully in the office last year, this has now increased to 37%. Similarly, hybrid working has

slightly declined, from 52% of PQs splitting their time between remote and office-based work last year to less than half (48%) working under a hybrid model today. Karen Young, director of Hays Accountancy & Finance, told PQ magazine that flexible working

patterns continue to be a crucial consideration for PQs when assessing job offers, as over half (58%) of PQs would not accept a role in the future if it did not offer hybrid working. She felt that the popularity of flexible working will persist in the next 12 months, as 56% of PQs plan to find a role that is more of a mix of hybrid working, the same figure as last year. Young stressed: “Pay remains a top priority as most (68%) PQs tell us they would not accept a lower salary for a role that was fully remote.” Skill shortages are being felt across the accountancy sector, but no more so than with PQs, where 90% of employers said they were struggling to find the right talent. And with communication and interpersonal skills top of employers’ ‘core skills’ list, many PQs were found to be keen to develop these to help drive their careers forward. The good news, Young revealed, was that employers said they were willing to recruit PQs with ‘potential’. She said: “That means you don’t necessarily have to have all the required skills for a new post, as your employer will look to help you upskill.” Check out all the latest salaries on offer across the UK on page 24.

Advance your career with a Mindful Education course or apprenticeship Discover more at at mindful-education.co.uk/learners mindful-education.co.uk/learners

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contents PQ

IN THIS ISSUE

January 2024

A note from the Editor Well, our front cover says 2024 so we must be there! Thanks to you all for making 2023 so special. This month we have the Hays Accountancy & Finance salary survey, so you can find out if you are being paid what you are worth! It is also interesting to see that 90% of employers are struggling to find the right talent. That really is good for all those finalists and newly qualifieds out there. You can also have a go at our annual bumper quiz – there are some great prizes up for grabs. Don’t forget our AAT scholarships on offer with e-Careers. You just need to put yourself forward, and you might just be studying your next level for free. And, of course, we are looking for nominations for the PQ magazine awards – our 21st no less. On top of that we have some great new events for you to sign up to in February and March. Please go to Eventbrite to sign up. We have a careers fair, an online one-day conference and an evening talking about football finance. What’s not to like? I would like to thank Francesca Cullaney, our new reporter and events assistant, for all her help putting these events together. It was her great idea to ask ChatGPT to think of 10 questions to ask itself! Graham Hambly, Editor and Publisher, PQ magazine News 4

Artificial intelligence AI set to empower accountants, not take their jobs! The workplace Young accountants go sick during busy work periods, new survey finds Big 4 firm axes jobs PwC to cut 600 jobs but pledges to keep recruiting graduates ACCA membership fees Association President defends

’modest’ 4.9% rise of the annual fee to £297 9

ACCA exam feedback Students struggled in December with ATX and APM – and especially PM

10 Inspiring Gen Z Employers adapting training methods as younger workers prove difficult to motivate 12 Tech news AI goes mobile with the launch of the Ai Pin

Features, etc 14 Have your say There’s something fundamentally unfair about ACCA options; why I take my calculator everywhere; and when will AI start affecting the exam process? Plus our social media round-up

34 CIMA spotlight How to maximise your chances of success in the case study exam

16 PQ Awards 2024 Get your entry in now, and you could be joining us for accountancy’s best night out next Spring. And don’t forget you can nominate yourself

36 Artificial intelligence How will AI affect young accountants?

19 ACCA exam feedback The good, the bad and the ugly side of December’s exam sitting 20 PQ Annual Bumper Quiz So what do you know? Test your knowledge – and you could win a fantastic top-of-the-range Lumie Bodyclock Luxe 750DAB wake-up light 22 A question for Tom Tom Clendon explains how noncontrolling interest (NCI) can be measured 24 Salary survey Are you getting paid what you should be? We’ve got all the numbers that matter 27 ACCA spotlight Your practical experience supervisor will play an instrumental role in helping you complete the PER 28 Insolvency The IFA has some sound advice on how to deal with a company in distress

35 Profile Meet Dominic Noakes, a young accountant who is making waves in corporate accountancy

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37 Careers Google tops best employers list; our Agony Aunt tackles your career dilemmas; and our Book Club review 38 Fun The lighter side of life – and accountancy The columnists Lisa Nelson Why Luca, Leonardo and the Renaissance resonate today 4 Robert Bruce By undermining the FRC, politicians are making its job harder 6 Prem Sikka Lack of audit reform betrays the public 8 Anna Kate Phelan AI is disrupting even the people who created it 10 Eddie Herbert Sustainable policies pay dividends

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29 ChatGPT put to the test Francesca Cullaney asks ChatGPT about your future, and the future of accountancy in general 30 Overhead absorption costing Karen Groves explains this important concept and tests your knowledge on the subject

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32 AAT spotlight Our AAT guru Teresa Clarke explains all you need to know about the statement of profit or loss

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PQ the

LISA NELSON When Luca met Leonardo

Something slightly different this month; it’s a history lesson, but one all accountants will find interesting! You will of course have heard of Leonardo da Vinci, the artist, scientist, engineer and inventor, famous for his portrait of the Mona Lisa. But what you might not know is that he was good friends with an Italian friar and mathematician called Luca Pacioli, who in 1494 published a book called ‘Summary of Arithmetic, Geometry, Proportion and Proportionality’. Hopefully, you’re still reading because this is the first reveal: in this book he included a section on double-entry bookkeeping, which is why he is known the ‘father of accounting’. Although he never claimed to have invented double entry, the fact that he wrote it down led to its popularity. The importance of double entry cannot be understated. It provided businesses with a systematic way to track financial activities, essential for the growth in trade and is the foundation for accurate financial statements and much of what we accountants do today. Luca wrote several other books including one illustrated by Leonardo, entitled ‘On the Divine Proportion’. And here is the second reveal: in this book he pioneered a mathematical framework blending perspective and proportion into art, both of which became distinctive features of artwork from the Renaissance period. So, the next time someone asks you about the connection between Leonardo Da Vinci, double-entry bookkeeping, the growth of international trade and art in the Renaissance period you will know the answer! Lisa Nelson is Director of Learning at Kaplan

AI to ‘empower’ next gen Finance and accounting is set to be transformed by AI, according to nearly a third (32%) of UK business leaders. In the survey, by cloud-based accounting software bluQube, finance and accountancy was one of the business areas most likely to be impacted by AI, coming second only to sales and marketing (34%). Respondents said AI will take away many of the repetitive and admin tasks associated with their role (42%), and allow professionals to be more strategic (35%). However, some of those who took part in the research weren’t as optimistic, with 29% saying that it would force them to retrain or re-skill in other areas. Concern was also echoed by 9% of business leaders, who believe the technology will replace finance staff. And 6% stated it will either

de-skill the role or have no impact at all. Simon Kearsley, CEO of bluQube, commented: “As AI continues to adapt and becomes a larger part of the accounting profession over the coming years, it is important

Win a Lumie Bodyclock It’s PQ magazine annual quiz time, and thanks to our generous sponsors (AAT, ACCA, CIPFA, CIMA and ICAEW) we have some great prizes up for grabs again this month. Last year we gave away Tefal air

fryers and grill; this year it is a topof-the-range Lumie Bodyclock Luxe 750DAB wake-up light. The Lumie is ‘a life-changing way to wake up’, rousing you from sleep gently with a gradually brightening light, helping you to feel energised,

We need your nominations Nominations are now open for the PQ magazine awards 2024, with the awards night taking place in April next year. But before we roll out the red carpet for you we need to see your entries! Check out all the details on page 16 of this issue, or go straight to our website and download the application form.

to remember that the changing nature of work doesn’t equate to the elimination of the human workforce.” To access bluQube’s ‘Age of AI’ report visit https://tinyurl.com/ y97ay5hv refreshed and ready to take on the day. At bedtime, the sleep-optimised lighting allows for a restful evening, with the fading sunset promoting a natural sleep response. If you want one of the three prizes on offer you need to find the quiz and answer the 50 questions (it is supposed to be fun!). See page20.

Then we need up to 500 words on why your nominee

should win. Remember, we actively encourage you to enter yourself, so now is not the time to go shy on us! Deadline for entries is Friday 8 March 2024, and please don’t wait until the last minute to enter! Download the nomination form at www. pqmagazine. Just click on the ‘PQ Awards’ button at the top of the home page.

move builds on the momentum generated by the ICAEW and CIPFA joint declaration in September, outlining an accelerated pathway for CIPFA and ICAEW accountants to achieve dual designation and qualify for dual membership from January 2024. It said: “We are taking it a step further.” Students can now expect joint events “bringing together the best of both worlds, fostering collaboration, learning and networking opportunities”.

Energy cost payment help If you are an ICAEW student struggling with high energy costs then caba’s means-tested £450 energy cost payment could be available to you. It can be used to pay for gas, electricity and water bills. caba said its energy cost payment is available for anyone on low income who is in need of financial support. In 2022 caba awarded more than £44,000 in energy cost payments worldwide to help chartered accountants cope with the increasing cost of living.

In brief Football crazy? PQ magazine has got together with University of Liverpool’s Kieran Maguire to host an evening next March talking about everything football. There is a twist – we will be actually talking football finance, rather than the machinations of VAR! You can sign up to ‘No accounting 4 the love of football’ and spend an evening with Maguire and friends at the Crypt on the Green, in London. Maguire hosts the popular Price 4

of Football podcast, which won the inaugural Podcast of the Year award at this year’s PQ magazine awards night. For more go to page 31. New collaboration unveiled The Chartered Accountant Student Society of London (CASSL) and the South East CIPFA Student Network are joining forces to create a dynamic platform for trainees from both bodies. CASSL explained that the

PQ Magazine January 2024

PQ news PQ

Are you faking it? More than half (54%) of young accountants in the UK say they take time off work to intentionally avoid busy dates in the work calendar, such as tax and reporting deadlines, with 21% of workers citing illness, according to new research commissioned by AccountsIQ. The research was conducted among 251 young finance professionals between the ages of 18 and 35 who have up to three years’ experience. It found that of those who have intentionally avoided the busy days, 44% have

admitted to doing so by calling in sick as opposed to booking annual leave. The issue of absenteeism is

The Accountant’s Odyssey Our annual online one-day conference with London South Bank University is back for its seventh year! This year we are calling it ‘The Accountant’s Odyssey: How do we shape the future?’ With the help of top speakers we will delve into the world of ChatGPT and the global changes happening in accountancy. Sustainability will also be high on

the agenda for discussion. We have Professor Richard Murphy signed up to speak and are hoping Lord Sikka will also be available to tell us how he sees the future shaping up for accountants. So put 21 February 2024 in your diary, and sign up at Eventbrite: https://lsbu.ac.uk/ whats-on.

perhaps not surprising, with 96% of young finance professionals claiming they get frustrated in their current roles. Of these, 41% cite the reason being that expectations are too high, and 39% are frustrated with the lack of recognition. Darren Cran, CCO at AccountsIQ, said of the results: “Poor morale, frustration with workload and lack of technological resource among younger professionals threaten to undermine the long-term vitality and performance of finance and accounting. We need to see closer attention to nurturing young finance professionals, who have a different set of attitudes and expectations of their employers than previous generations.”

Win an AAT scholarship

PQ magazine and e-Careers have joined forces to offer six AAT students a free study scholarship. Each month we will be announcing a new recipient, and the winner of our first e-Careers scholarship is Jack Hancock. Well done, Jack! That means we still have five scholarships to give away, and it means you could be studying your next AAT level for free. The cost-of-living crisis has hit many people hard and e-Careers does not want this to stop people’s ability to choose accountancy as a career, and make their lives better. All you need to do is tell us why you think you deserve the free scholarship. Send your entry to scholarships@e-careers.com. Once entered you will be kept in the draw for all the available scholarships, so if you don’t win the first time there are still other chances to land the prize. PQ magazine editor Graham Hambly will be on the judging panel to help award the scholarships. Check below for more details.

WIN AN AAT SCHOLARSHIP PQ magazine and e-Careers have joined forces to offer a free scholarship to an AAT student each month for the next six months! That’s six scholarships up for grabs! e-Careers is aware of the impact that the cost-of -living crisis is having on those trying to start or complete their accountancy qualifications, and so the scholarships were born. To be in with a chance of winning a scholarship simply tell us why you think you deserve one. Send your entry to scholarships@e-careers.com. If you are chosen then you will receive free tuition for the whole of the level you require. And if you don’t win the first scholarship don’t worry – your entry will be kept in the draw for the duration that the scholarship applies. To be eligible for the scholarship we need your application to include your full name, address and telephone number. You have up to 500 words to explain why you deserve the scholarship. PQ magazine editor Graham Hambly will be on the judging panel. The winners will be notified around the 20th of each month. PQ Magazine January 2024

PQ the

ROBERT BRUCE Politicians do the FRC no favours

The Financial Reporting Council is having a tougher and tougher time. It is doing its best to do its job effectively. But the government, in its inimitable way, is doing its best to undermine it. Yet again, the FRC has had its transformation into the Audit Reporting and Governance Authority (ARGA) pulled from the legislative calendar, but the government persists in encouraging the pendulum swing away from bringing companies to book for poor or perilous corporate governance and financial reporting. Politicians would prefer if the FRC concentrated only on one side of the story, poor or doubtful performance by auditors. An exchange of letters was published in the background papers to the Autumn Statement. The letter from the Business Secretary makes clear that the government is backing the drift from companies to auditors in the blame game. In an echo of the brief Liz Truss days, it stresses that the FRC should be “promoting the competitiveness and growth of the UK economy, embedding its growth duty across its work”. The letter says that “trustworthy reporting remains vital”, but in weasel words the FRC should also ensure that the UK is “a great place to do business when considering the requirements and expectations placed on business”. It then suggests the FRC should be getting rid of ‘rules and guidance’ that might hamper this policy. Then in a veiled threat it asks the FRC to report back on such progress in a year’s time. The pendulum is still swinging in the wrong direction. Robert Bruce is an award-winning writer on accountancy for The Times

PwC to cut up to 600 UK jobs PwC has announced plans to cut up to 600 jobs amid a slowdown in client demand. One of the main reasons for the redundancies is because the Big 4’s attrition rates have dropped from 15% to 10%, as openings in rival firms and tech start-ups fall off. PwC UK chair Kevin Ellis told the Financial Times that the firm had decided to launch the redundancy round rather than delaying or cancelling job offers to hundreds of graduates and school-leavers. Ellis told reporters this is partly a matter of fairness in not cutting off opportunities for people starting

their careers and who have not yet been trained. He also felt that slowing down hiring would also have a negative impact on the

How at risk are you to AI? A new study of whitecollar professionals by the Department of Education has looked at who faces the biggest threat from large language models (we are talking generative AI here). Chartered and certified accountants

appear at number 46 on the list, sandwiched between barristers and judges (45) and call and contact centre occupations (47). Interestingly, bookkeepers, payroll managers and wages clerks are number 52 on the list.

Gorilla accounting want you!

firm’s diversity and social mobility efforts as new hires are generally more diverse than the organisation as a whole. Many UK newspapers are reporting that the news comes just months after PwC revealed its 1,000 UK partners would be paid £906,000 each. Ellis stressed that it was important that the firm continues to offer competitive pay packets to senior staff. The cuts amount to around 2.4% of UK employees (there are 25,000) and will mainly be in the advisory business. However, tax staff will also be hit. In all, the study numbers 365 jobs and those least likely to have their job taken by AI are roofers, steel erectors and fork-lift truck drivers (we aren’t sure about that last one!). So, who is most at threat? The study says the top five professions most at risk are telephone salespersons, solicitors, psychologists, FE teaching professionals and market and street traders.

Gorilla Accounting, the Boltonbased digital accountancy firm specialising in contractors, freelancers, sole traders and small

limited companies, has announced plans to grow further after adding 1,300 new clients and making 35 appointments this year.

Gorilla was founded in 2015 and has achieved record growth over the past 18 months, including 23 new recruits and 12 promotions in 2023. To meet the demand of its expanding client base Gorilla has announced a new recruitment drive for accountants in clientfacing roles at all levels. Gorilla Accounting welcomes CVs and cover letters via email to careers@gorillaaccounting.com. Applications from people of all backgrounds are encouraged. Gorilla’s was acquired by the international accountancy firm Azets in June 2023.

David Hosking, Dawn Seddon and Richard Balogh. And Accountext ran a competition for one lucky reader to win a set of AAT textbooks. The winner here was Natalie Sandford. Don’t miss out on our great giveways each month – subscribe for the monthly magazine – it’s free! Just go to www.pqmagazine.com.

how working from home is transforming professional life, according to the Daily Telegraph. The Big 4 firm is now examining what to do with its 10-storey Moore London office, next to London Bridge, after launching a property review. Since 2021 EY adopted hybrid working and staff can work from home for at least two days a week. Pre-pandemic some 9,000 staff worked at Moore London. EY’s 25-year lease on building runs out in 2028.

Prioritising mental health AAT recently gave seven ways employers can prioritise their apprentices’ mental health. As MAAT Andy Murray pointed out online these tips are in fact valid for the entire workforce. So, what the seven? Here they are: • Provide work buddies. • Banish presenteeism. • Foster wellbeing. • Build psychological safety. • Offer flexibility. • Look out for signs of stress. • Signpost to professional help.

In brief Your PQ magazine giveaways Don’t forget that every month PQ magazine has some great giveaways! This month we have an AAT scholarship up for grabs, courtesy of e-Careers. Three lucky winners can also win a Lumie WakeUp Light Alarm Clock in our annual quiz. You can also win adult colouring books. We also recently joined up with VIVA Tuition to give away three ACCA scholarships. The winners of the Lifetime Access Scholarship were 6

EY to downsize? EY is in talks to abandon its London headquarters in what is being described as the latest sign of

PQ Magazine January 2024

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PREM SIKKA Lack of audit reform betrays the public BHS collapsed in April 2016 and Carillion in January 2018. The scandals raised numerous questions about corporate governance, accounting and auditing which have been repeated at numerous other scandals since then. We all remember that a PwC audit partner was budgeted to spend just two hours on the BHS audit and 31 hours on consultancy. Even KPMG’s CEO admitted that Carillion audit was “very bad”. Audit quality inspection reports by the Financial Reporting Council continue to show that big accounting firms don’t even meet the feather-duster auditing standards of the UK. The government promised new legislation but it has not materialised. On 19 July 2023 the government published ‘The Draft Companies (Strategic Report and Directors’ Report) (Amendment) Regulations 2023’. The proposed legislation required 700 large companies to publish another report with the aim of increasing transparency about risk-taking. It required disclosures about distributable reserves as companies continue to concoct reserves and borrow money to pay dividends. The proposals in no way addressed the abuses highlighted by scandals. There was to be no reform of auditing. The government notified its intention to Parliament to legislate and a debate was scheduled for 17 October in the House of Lords. However, on 16 October, in the face of opposition from big business, the government withdrew the proposed legislation. The press release waffled on about cutting red tape. No statement was made to Parliament. The episode provides further evidence of how government are captured by big business to the detriment of stakeholders and citizens. Prem Sikka is Emeritus Professor of Accounting at the University of Essex

The cost of membership The cost of membership and the cost-of-living crisis took centre stage at the recent ACCA agm. Outgoing ACCA President Joseph Owolabi explained that the cost of global membership will rise by “a modest” 4.9% in 2024 – so from £283 to £297. He stressed this was significantly less expensive than other professional bodies. And at just under 5% it was lower than the forecasted rate of inflation – which is 6%. Owolabi also pointed out that the rise was less than CIMA’s 6% or ICAEW’s 8.4%. The increase will help ACCA make the improvements it needs for the future, he said, and pointed out that the plan was to offer more members

the opportunity to pay in local currency. The demise of the Oxford Brookes degree also came up. CEO Helen Brand explained the ACCA is now working on “alternative solutions”. The Oxford Brookes degree ends

ISSB knowledge hub here One year on from the creation of the International Sustainability Standards Board the IFRS Foundation has launched a new knowledge hub to help companies preparing their ISSB disclosures. The hub went live at COP28’s Climate Action Day, and will be a key component of the IFRS

Foundation’s capacity building programme. ACCA has also announced it is developing a range of resources, including freely available guides and learning resources and CPD initiatives, to build capacity among its 247,000 members. The ISSB Standards will be

Grant Thornton boosts its school leaver intake Grant Thornton is set to welcome a record 213 school leavers to its apprenticeship programme this year. This is a 13% increase compared with 2022 (188) and the highest number ever welcomed by the firm in one

in May 2026, and some 35,000 students have gone through the programme. Brand said: “We are now talking to different universities worldwide to find new partners.” So there could be a good news story to come.

added to ACCA’s syllabus in 2024 to build knowledge within the next generation of accountants. A series of video explainers prepared by ACCA about IFRS S1 and IFRS S2 is already available on the IFRS Foundation’s new IFRS Sustainability knowledge hub. Check it out at https://tinyurl. com/x6v4pwsj. intake. For the first time more school leavers than graduates signed up to the audit team. As well as school leavers Grant Thornton took on 283 graduates this year. Grant Thornton’s Perry Burton said: “The fight for talent in the accountancy profession is fierce… Our focus on increasing our school leaver intake has allowed us to access a new, diverse talent pool that we would previously have been missing.”

Tax briefs HMRC service remains ‘poor’ HMRC’s latest stats for July to September show continued poor service performance, says ICAEW. In took an average of 23 minutes for a call to be answered, with 70% of callers waiting for more than 10 minutes. Just 69% of calls are answered by HMRC. The percentage of post answered within 15 working days remains at 74%, with the percentage of post handled within 8

40 days dropping to 83% in July and August. This is despite the fact that additional resource was available during the summer months, partly due to the closure of the self assessment helplines. Keeping it in the family Family businesses generated more than a quarter of the UK tax bill in 2021, says new research. The report by the Family Business Research Foundation and PwC UK, the first of its kind, found for every

£100 of turnover family businesses in the study contributed an average of £18.50 in taxes. In 2021, the family business sector as a whole is estimated to have contributed £225 billion to UK public finances. This represents 27% of government receipts from all taxes in the UK. Out of this £225bn, £74bn was contributed in taxes borne – those that are a direct cost to the company – and £151bn in taxes collected, such as income tax and

employee NICs. Shakira reaches deal over tax fraud case International pop star Shakira has reached a deal with Spanish tax authorities to settle an outstanding bill of €14.5 million. The last-minute settlement will mean the six counts of tax fraud have been dropped. It has been reported that she will receive a three-year suspended sentence and will pay a fine of €7 million. PQ Magazine January 2024

PQ news PQ

career in PM still causing heartache Aaccountancy The December ACCA exams are over, but the complaints don’t seem to change! Very few sitters enjoyed the PM exam, with one PQ saying: “Hate this exam so much!” The Open Tuition Instant Poll shows they were not alone in their thoughts. Some 22% of sitters ticked the ‘disaster’ box and another 41% admitted they found the exam ‘hard’. Just one

in three sitters said the exam was ‘OK’. Students also seemed to struggle this time around with ATX and APM. ATX was described as ‘horrific’ by more than one trainee, and APM was seen as the usual

tough test. But it wasn’t all bad news, as AA sitters generally thought the

December exam was OK. SBL also got the thumbs-up. And, as usual, when there was more than one paper on offer students seemed to have wanted the questions they didn’t get. Those Monday first-day blues returned to one UK centre, too. PQ magazine got reports that the Birmingham MTS exam centre had technical issues on the first day of the exams, with the morning session starting two-and-a-half hours late and an evening exam not finishing until 8pm. For all the feedback see page 19.

Your accountancy family is growing! Membership of the main UK accountancy bodies continues to grow, according to the twenty-first edition of Key Facts and Trends in the Accountancy Profession. The seven bodies have nearly 400,000 members in the UK and Republic of Ireland (ROI), and over 600,000 members worldwide. The growth in membership between 2021 and 2022 was 2.1% in the UK and ROI and by 2.4%

worldwide. However, after increasing slightly in 2021, the decline in student numbers that we saw in 2020 in the UK and ROI returned for 2022. Between 2021 and 2022 student numbers in the UK and ROI decreased by 3.5% and by 2% worldwide, compared with growth of 0.3% and 1.6% respectively in the previous year. That still means there are more

than 155,000 students in the UK and ROI studying a professional qualification, and over 585,000 worldwide.

anyone?

PQ magazine and Queen Mary University of London have joined forces to offer a unique insight into a career in accountancy. With the help of ACCA, AICPA & CIMA, IFA and Hays Accountancy & Finance, we have put together a programme that will shine a light on the many ways there are to become a professional accountant. Making decisions about your future can be daunting, so we are bringing together the experts to give those just starting out a real insight into whether accountancy is the right career for them. PQ magazine editor Graham Hambly said: “We believe that everyone should have an equal chance of access to the accountancy profession. We want to help to deliver real change, and will be explaining everything from apprenticeships, degrees (including Flying Start) and all the professional qualifications.” See page 23 for more.

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PQ Magazine January 2024

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ANNA KATE PHELAN AI and the chaos at ChatGPT

As we’re all aware, AI is a hot-button topic right now. There’s been a necessary focus on both the risks and protections associated with the dawn of a new AI-focused era. The AI age is not around the corner – it’s arrived, and we are scrambling to keep up. The uncertainty surrounding AI is even touching its main players. Recently, OpenAI’s CEO Sam Altman was unceremoniously fired by the ChatGPT developer’s board. While he was immediately hired by Microsoft (who have a massive stake in OpenAI), the vast majority of OpenAI’s staff signed a petition demanding his reinstatement and threatened to quit (would your colleagues do the same for you!?). Consequently, the board was fired, and Altman was rehired as CEO, all within the space of a week! It’s been a whirlwind and the reasoning for the initial firing remains unclear. There are whispers that Altman had been talking about setting up a rival company. There are rumours that the board was concerned about his approach when it comes to AI risk. Elon Musk has said that OpenAI chief scientist/board member Ilya Sutskever must have seen something that spooked him. Sutskever has championed OpenAI’s mission to achieve AGI (Artificial General Intelligence), an intelligence that if achieved is likely to surpass our own, potentially leaving us vulnerable to the whims of our cyber overlords. My hope is that legislation and reform should help shield the public against all the turbulence in Silicon Valley, but in the meantime grab your popcorn! Anna Kate Phelan is Head of Product at Eintech

Gen Z harder to motivate Many employers are finding it challenging to motivate their Gen Z workforce and are adapting their training methods to better meet the needs of their young cohort, according to new research from Grant Thornton. Over a third of businesses say it is now more difficult to motivate their Gen Z employees, compared with previous generations at the same age (16-25). Consequently, the majority (88%) of employers surveyed are adapting their training methods to help appeal and engage with the newest members of the workforce. Over a third (36%) of companies have introduced personalised training, specifically tailored to the individual’s needs. Nearly a third

being asked to study outside of working hours is unreasonable (but that’s how you gain the accountancy qualification). Over half (51%) of Gen Zs taking part in the survey said they should not be expected to take on extra responsibility without compensation.

What’s happening with ACCA timetables? When it comes to ACCA centrebased exams everyone knows it’s AA and AAA on the Monday and FM and AFM on the Friday. But things are changing – for a few sessions anyway. For December 2023, APM joined the audit papers on the Monday for one time only, and LW moved to the Friday. The big changes, however, come

in March 2024. Both the audit papers move to Thursday and FR and SBR become the first papers of exam week. Then in June 2024 it goes back to where it was. So AA and AAA return to the Monday slot and APM moves back to Wednesday. LW stays as a Friday exam. ACCA said it regularly reviews the

Reporting on instruments The International Accounting Standards Board (IASB) is proposing amendments to IAS 32 to improve the financial reporting on instruments that have both debt and equity features. The standard works well for most financial instruments. However, the instruments have evolved since

EY elects first female boss EY global has elected Janet Truncale as its first female boss. The incoming global chair and CEO joined the Big 4 firm as an intern 33 years ago (in 1991). She is in fact the first global chief of all the Big 4 firms, and will take up the top job on 1 July 2024, succeeding Carmine Di Sibio. She beat British partner Andy Baldwin, who was an early favourite, to the top slot. Truncale said: “I am absolutely honoured to have been chosen to lead EY – an organisation I’m proud to have been a part of for more than 30 years.” 10

(32%) have also moved towards more on-demand content and gamification within their training (30%). Grant Thornton found that 40% of Gen Z workers think regularly working 10 hour days should not be expected. One in three (31%) also believe that

the IFRS standard was issued – they are more complex and present new reporting challenges for companies. Companies’ solutions to the reporting challenges differ, resulting in diverse accounting practices that make it difficult for investors to assess and compare companies’

We will have to wait until next summer to discover if Trunacle wants to resurrect the spinoff plans that were abandoned last April. You need a burner! Some of the Big 4 firms have told staff to use burner phones when they visit Hong Kong because of security concerns, according to reports in the Financial Times. The newspaper said Deloitte and KPMG has advised some US-based executives not to use their usual work phones in the territory. The FT also revealed several McKinsey consultants also took separate phones when working in Hong Kong. While this is a relatively recent move, companies who work in aerospace and

timetable and will always announce changes at least six months in advance. For details go to https:// rb.gy/59lne

financial position and performance. There has been some noise coming from investors, particularly about equity instruments. Andreas Barckow, chair of IASB, said: “Our goal is to bring more transparency to investors, ensuring that they have highquality information about complex financial instruments when making investment decisions.”

semiconductors have for years told staff to use separate phones and laptops in mainland China. KPMG cuts bonuses again KPMG has slashed bonuses for its UK deals team again in the latest sign of strains facing the firm after a drop off in deal-making this year, according to the City AM. The Big 4 firm cut pay-outs for the deals division by around half in May but a source told the newspaper they had now been informed the team bonuses would be slashed further. Staff in the division were told in an email that bonuses would be lower but were not given a figure. Earlier in the year, KPMG told some of its staff that annual discretionary bonuses will be ‘down’. PQ Magazine January 2024

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EDDIE HERBERT Good ROI for good reasons

Committing to Net Zero is not only good for the planet, it also comes with other positive returns on investment. Accountancy businesses on the road to Net Zero report reduced costs, as they become more efficient and get a handle on waste, while becoming more attractive organisation to do business with (and work for). Increasingly, those that commit to net zero put themselves in a strong position to work with large companies that are now mandated to report on emissions in their value chain. This value chain includes their accountants every bit as much as it includes the people who supply their raw materials, or the customers who use their end products. Accountants have a critical role to play as the world transitions to a more planet-positive future. Not only are they important advisers that can influence business leaders, they also have all the skills and much of the knowledge to advise others about carbon accounting. This is the crux of getting to grips with emissions for most organisations. Good management of greenhouse gas emissions can only come after good measurement. To celebrate the ongoing success of The Net Zero Accountancy Initiative, Net Zero Now is offering two individuals wanting to improve their knowledge a free place on a short course from the prestigious Cambridge Institute for Sustainability Leadership. If you’re an accountant who would like to up your sustainability game click here to find out more – https://bit.ly/ nzn_sustainability_competition. Eddie Herbert, Commercial Account Executive, Net Zero Now

Humane launches Ai pin California-based company Humane has launched Ai Pin, which some experts are saying is the beginning of a new age for personal technology. Designed by ex-Apple employees, the pin is a cross between a pager, chatbot and lapel badge. The makers say that the Ai Pin marks a new beginning for personal consumer technology, offering users “the ability to take AI with them everywhere in an entirely new, conversational and screenless form factor”. The more excited reviewers have compared it with a communicator badge from Star Trek. The standalone device, which is powered by AI, is controlled by your voice or gestures, or by a projector that beams a set of controls onto

the palm of your hand. The frontmounted camera can take photos and videos. The Ai Pin can also act as your foreign language interpreter and support your nutrition goals by

Keeping it in the cloud The UK’s cloud-powered companies are confident that their return on investment (ROI) will reap dividends, according to a new PwC survey of more than 400 business and technology executives in the UK. Cloud-powered organisations are those that have gone ‘all-in’ on cloud, with adoption scaled throughout the business. However,

only 16% of UK organisations consider themselves to be cloudpowered. The remaining ones are

Xero adds new tools Xero has unveiled two new payment features for its users. The first is a new bill payment tool that offers a simple and secure way to manage, approve and pay bills without leaving Xero. Small businesses and their bookkeepers can now set up a direct bank transfer as a payment method

for bills, and use open banking to batch pay multiple bills from their bank account. Xero’s Jo Copestake said: “Paying bills is crucial for cash flow, but it’s a very manual process for many small business owners. With our bill payments feature, small businesses can avoid manual bank

assessment customers to access personal details including their Unique Taxpayer Reference (UTR), National Insurance number and any PAYE information they may need to complete their tax return.

and AccountancyManager is now BrightManager. Surf Accounts merged with BrightPay in 2021, before Bright bought AccountancyManager in March 2022.

The world is Bright! The Bright software group is rebranding some of its recent flagship acquisitions. Surf Accounts Production will become BrightAccountsProduction, Surf Accounts is now BrightBooks,

Amazon to sell cars Amazon will sell cars online from new year, says the retail giants vice-president Marty Mallick. Customers in the US will be able to pick a new vehicle and have it delivered to their home under the

identifying food using computer vision, says the husband-and-wife team who created it. The pin costs $699 plus a $24 a month subscription, and clips onto your shirt or jacket.

urgently seeking to adopt cloud to modernise core technology, with two-thirds of organisations believing they will have all operations in the cloud within two years. Of the respondents that are cloud-powered and have scaled it through their business, 58% expect enhanced customer experience, 57% expect both enhanced stakeholder trust and improved cyber resilience, 55% expect a faster time to market, and 54% expect cost savings. transfers, funding external wallets and accounts or entering credit card details.” Xero has also launched eInvoicing, starting with the ability to receive eInvoices. Hailed as the next big billing revolution, eInvoicing uses the Peppol network to enable the electronic realtime delivery of invoices between businesses and their trading partners.

Tech briefs Paying via the app? Almost 100,000 people have paid in excess of £120 million using the HMRC app since April 2023, according to the latest figures. HMRC said between April and September 2023 some 97,365 customers used the app to settle their tax bill for the 2022/23 tax year. This is three times the £34.6m paid by 36,467 taxpayers during the same period last year. HMRC stressed that in addition to making payments, using the app is the simplest way for self 12

new plans. Amazon will also offer a range of finance options. However, Amazon only has Hyundai signed up at the moment. But the partnership will enable those who buy a new Hyundai in 2025 to access Amazon’s Alexa voice assistance from their cars. Traditional and specialist online car dealers will be watching the development with a lot of interest. Amazon already offer ‘your garage’ features to help customers find parts and accessories for their cars. PQ Magazine January 2024

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Options madness The syllabuses of all the ACCA optional papers are huge, but like PQ magazine (PQ, December ’23, page 10) I find it hard to see why anyone would want to sit APM and AAA. I don’t know how they can justify the 10% gap in pass rates. Surely the ACCA should be ensuring all the optional papers have the same rigour. What measures does it have in place to ensure all optional sitters are tested with same degree of difficulty? If the ACCA says all the optional exams are at the same standard then are they saying the people who choose AAA and APM aren’t working as hard, or were just luckier to get through to this stage! For ATX it still looks like you

simply have to memorise rules. OK, there are a lot of them, but look at that lovely 48% pass rate in September. Both AAA and APM had a pass rate of 34%. Maybe too many PQs are making their choice based on how well they did with AA, PM, TX or FM.

Another problem could be with the people who were exempt PM and AA. How can they then look at the pass rates of the advanced papers and choose them as their option? I think we need to know exactly just how many people are sitting each optional exam and whether the pass rates are affecting people’s choice of exam. Name and email address supplied The Editor says: I always like it when someone agrees with me! I have been banging this drum for some time. You make some good points about exemptions and performance at the lower levels. Like everyone else I just want those AAA and APM results to move a bit closer to the ATX pass rate.

Our star letter writer wins a fantastic ‘I love PQ’ mug! What will AI bring? I noticed that practically the whole of your technical news page was dedicated to AI news (PQ, December ’23, page 12). We had the UK PM heading up a global risk AI conference, EY launching an AI platform, and ACCA saying AI only works if ethics is at the core. Generative AI is here to stay, yet none of the professional bodies seem to be highlighting how this is ‘really’ going to affect exams or even accountancy careers in the future. When it comes to exams the fast pace of change surely means continual assessment might work better than the current model of exams at a set time. AI could help the bodies with that move. AI is undoubtedly going to have a big impact on our careers, too. I am one of those optimists who think we can be ‘friends’, with AI giving me more time to spend with my family. If companies are looking for just two-dimensional cost savings then accountants will become vulnerable. The next few years are going to be massive, and we need to be having a rational conversation about this. But where

is that happening? Name and email address supplied

Where’s your calculator? I have to agree with your letter writer last month about us being a human calculator (PQ, December ’23). I like the fact that people have trust in me when it comes to the numbers and know I can make sense of it all for them. It means

my clients can get on and do the things they are good at, and leave that part of the business to me (who is good that stuff!). Just so you know, I carry a calculator in my rucksack wherever go, although I must admit I use the one on my laptop more these days. In fact, the calculator is the one I use for my exams. There’s quite a few more in a draw at home, too! Name and email address supplied

We always publish all the accountancy exam results, and in last month’s issue ran both the Q2022 and AQ2016 AAT results. The AQ2016 ones will the last set released, so we thought it was important that you saw both. When we put the results on social media they became our top-performing post of the week. In fact, after reading our post one AAT decided to sit Cash and Financial Management (65% pass rate) instead of CRDM (49%). And after seeing the Level 3 pass rate of 50% another student raised their concern that just half of students were passing. Another student simply replied: “Thank you, great magazine!” There were lots of stories about the December ACCA exam sitting, and we have all the feedback in the magazine. But our favourite one was about the student travelling to an exam by rail. They got on their train, only to be told after they pulled out of the station that there would be a delay of up to an hour because of a broken track. They manged to scramble off at the next station and rush home, so they could drive to the exam centre instead. The story has a happy ending – the PQ got there with 10 minutes to spare, and the journey was so stressful the exam itself seemed like a breeze. Another student then told their story of getting a puncture on the way to their centre. Oh the stress! Finally, something else we picked up on Facebook was the fact that the last day of 2023 will be 123123! Who doesn’t love that?

PQ Magazine PO Box 75983, London E11 9GS | Phone: 07765 386489 | Email: graham@pqmagazine.com Website: www.pqmagazine.com | Editor/publisher: Graham Hambly graham@pqmagazine.com | Associate editor: Adam Riches | Art editor: Tim Parker Contributors: Robert Bruce, Prem Sikka, Lisa Nelson, Anna Kate Phelan, Tony Kelly, Phil Gammon, Edward Netherton, Francesca Cullaney | 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 14

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PQ Magazine January 2024

The Accountant’s Odyssey: How do we shape the future? Back by popular demand, join LSBU and PQ magazine as we host our 7th annual accountancy conference on Wednesday 21 February 2024 Sign up for our free one-day online conference to hear from experts including Lord Sikka, Professor Richard Murphy, Professor Carol Adams, plus Rebecca Tiong and June Chait from AICPA & CIMA. We’ll explore: • How ChatGPT will impact you? • Why accountancy education needs to change for graduates • Global changes in accountancy • How to equip yourself for the future job market • The future of accounting in a sustainable world

To find out more visit https://lsbu.ac.uk/whats-on and follow LSBU Business School on LinkedIn

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BECOUNTED! Come on, we need those nominations for the PQ magazine awards 2024 – so download our form and get writing!

here are lots of shiny PQ trophies up for grabs, so now is the time to get nominating. It is the season of goodwill, so isn’t it time to nominate someone for an award they really deserve? Maybe you know a training manager/mentor who needs to be recognised for all their help and guidance? Or, you could nominate your favourite tutor. Many previous winners have been put forward by their partners, and even some mums have got in on the act! Or how about nominating your hard-working colleagues for Team of the Year? A shortlisting will guarantee a great free night out for everyone come April. All we need is 500 wise words from you, and our independent judges will do the rest. When you enter all we ask is that you

make sure we know which category you are entering and that we have your contact details. Remember, we also encourage selfnominations– we want to spread the love as widely as possible. You can download the nomination form at www.pqmagazine.com. You need to click on the ‘PQ AWARDS’ bar at the top of the home page and download the form from there. But you don’t need to form to enter – as we say above just make it clear what category you are entering, and when you have written your entry simply email it to us at awards@pqmagazine.com. If you want to post it then send it to: The Editor, PQ magazine, PO Box 75983, London E11 9GS. Deadline for entries is Friday 8 March 2024 – and remember, you can’t win it if you are not in it!

TOPAPPRENTICES Our reigning Apprentice of the Year is Anastasia Byard, pictured here with ICB CEO Ami Copeland. As well as winning a PQ award she was also named CIMA Student of the Year. She is now CFO of the Bishop Konstant Catholic Academy Trust. Also pictured (right) is 2022 winner Sean Lucas, from Nationwide.

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MEET THE DISTANCE LEARNING STUDENT OF THE YEAR 2023 Lillian Okolie certainly believes in putting something back! She wants to reach out and change young black people’s lives, and she is doing so all while studying for her ICB qualification. rom early in her life, Lillian possessed a natural talent for maths and a deep fascination with numbers, and her destiny as an accountant was sealed during a heartfelt conversation with her Dad about future career paths. However, a permanent exclusion from secondary school in Year 11 could have changed everything. Instead, it focused Lillian on what she wanted. She fought her way back into the educational system and bagged an impressive three A’s and five B’s at her GCSEs. This tenacity laid the foundation for her future success. She has an undergraduate degree in Accounting from the University of Kent and a Master’s degree from the University of Nottingham. She went on to gain the ACCA qualification and has worked for PwC, NatWest, Citibank and Virgin Media O2. But Lillian felt she wasn’t really doing the accountancy that mattered to her. She wanted her own practice and decided to study the ICB qualification with Training Link. She explains: “Going back to basics with ICB meant I could support young music artists and social media influencers to understand more about how to deal with their finances. And offer them the advice they do not have access to.”

Lillian Okolie picks up her award from Open Tuition’s John Moffat In 2017, Lillian co-founded The Reach Out Project in Croydon, a pioneering early intervention mentoring programme for young black boys in London. This project aimed to address the disparity in social, cultural and enriching opportunities available to them. The idea came from a Stormzy gig at Brixton Academy when it became apparent that a large part of the chaperoned audience were

young, Caucasian children, a stark contrast to the African and Caribbean young people on the streets of Brixton outside. It was at that moment the idea for a community project was born; one that would give young black people in London the opportunity to access cultural experiences that they otherwise could not afford or would not have access to. By 2019, the Reach Out Project experienced a phenomenal 150% increase in participants and established an official partnership with Arsenal legend Ian Wright. The project also garnered support from prominent figures like SantanDave, Stormzy and Harry Pinero. Lillian’s journey isn’t just about personal achievements. She added: “I want more for the young people than what I had. They are so bright and talented, but some of them come from troubled homes or environments where they’re forced to grow up too quickly. It took me 32 years just to visit a beach, but I’m determined to make sure that they don’t have to wait that long to experience all of life’s joys.” Her fantastic exam results also helped to earn her a Student of the Year shortlisting at the ICB LUCA Awards, but she went one better when she picked up the Distance Learning Student of the Year award at the PQ magazine 2023 Awards.

Advance your career with an award-winning course or apprenticeship Flexible, inspiring and engaging. Mindful Education courses are expertly designed to bring learning to life and achieve outstanding results.

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PQ Magazine PQ Magazine January January 2024 2024

FUTURE

LEADERS WA N T E D

Start your journey to the CGMA® designation with the CGMA® Finance Leadership Program. Establish your expertise in the profession with the CGMA Finance Leadership Program (CGMA FLP). A digital-first earning and assessment platform, the CGMA FLP accelerates your route to the designation with flexible learning whenever and wherever you want.

Find out more at aicpa-cima.com/flp. Founded by AICPA® and CIMA®, the Association of International Certified Professional Accountants® powers leaders in accounting and finance around the globe. © 2023 Association of International Certified Professional Accountants. All rights reserved. 2307-444079

PQ ACCA exam feedback PQ

December exam feedback How were the December exams? Can you have your cake and eat it? Well, here’s what those who sat the exam thought…

FR The FR December exam went OK for most sitters! In the Open Tuition Instant Poll OK got 52% of the votes. Some 14% said the paper was a disaster for them.

https://www.youtube.com/watch?v=uKxVcASew8 AAA Some sitters struggled with the length of Q1 and time management was key. One sitter said they were writing right up until the last second. They explained: “Didn’t get a chance to look back over anything. Insanely time pressured!” Overall, deemed a tough exam, with 20% voting on the Open Tuition Instant Poll saying the exam was a disaster, and a further 36% said it was hard.

TX ‘Was just about OK,’ is how one sitter described TX this sitting. The worry was there was a lot on IHT and group accounts. The CGT question in section B was not a favourite either! It means some thought the exam was ‘awful’. AA ‘Fair enough’ is how one sitter described the December AA exam. But for many it went better than they thought. Other PQs admitted they just aren’t sure how it went, as time pressure meant they were rushing to make as many points as possible. The worry for some is their answers are not substantive enough, as the examiner comments say students need to add more detail to get the marks. PM “The exam was really tough,” according to one sitter. Another said: “This exam was awful, definitely resitting in March. Had transfer pricing in section C, which I find extremely difficult!” Or you could be the student who said: “Hate this exam so much!” So fair to say another tough PM paper then. FM ‘Full on’ and ‘too many theory questions’ is how the December FM was described by sitters. Many PQs admitted to struggling with section A and B. However, most liked the NPV question in section C. Those who got the ratio question were not so happy.

PQ Magazine January 2024

APM This was another tough test, with just too much information to digest. “None of the past papers I saw had this much information,” said one sitter. Others describe it as ‘awful’. However, some sitters admitted they were their own worst enemy because of their bad time management. SBL Some PQs were worried that the new format of SBL doesn’t offer them the opportunity to apply the syllabus models effectively. As one explained: “The questions were quite broad and didn’t align with the SBL models.” In the Open Tuition Instant Poll some 52% of sitters ticked the OK box. Another 30% said it was hard and for 14% it was a disaster. SBR Sitters really didn’t like this one! For many time management was a problem and PQs felt too many niche topics were examined this time around. As one student said: “The 25 marks on sale and leaseback completely threw me off.” They were not alone. Another sitter felt the exam was made up of topics that only made up one page of the textbook and didn’t mention any of the key topics they had revised! Check out Tom Clendon’s hot review at:

ATX ‘Horrific’ is how one sitter describe ATX this time around. Another said it was a ‘disaster again’. And, yet another confused sitter simply said: “What the hell was that exam! I didn’t even know what the questions were asking me they were so long worded. 100% failed. Nothing like September’s exam.” Not for the first time some students wondered out loud if this exam was designed to fail them! AFM A tricky exam for many. Again students spent too long on Q1 and ran out of time. In the Open Tuition Instant Poll one in four (25%) called it a disaster and 34% found it hard. Read the unabridged version of our feedback online at www.pqmagazine.com

PQ annual quiz

PQ’s Bumper Quiz It’s back by popular demand – the PQ magazine bumper annual quiz. A big thank you to AAT, ACCA, CIMA, CIPFA and ICAEW for sponsoring the quiz. We will be giving three lucky winners a fantastic Lumie Bodyclock Luxe 750DAB wake-up light!

ENTERTAINMENT & MEDIA

Everton were handed the highest points deduction in the history of the Premier League for a breach of its profit and sustainability rules. How many points were deducted?

IN THE NEWS On 1 January 2023, which European country replaced its national currency, the Kuna, with the Euro? Leaked US documents regarding the war in Ukraine from the US Defense Department began appearing on a discord server associated with which online game?

1 2

Which country became the fourth nation to successfully land a spacecraft on the Moon – and why was this landing unique?

3 4 5

What was the name of the company whose submersible tragically imploded during an expedition to the wreckage of the Titanic? King Charles III made his first state visit abroad as King to which country?

Which country won the ICC Women’s Cricket T20 World Cup scoring a 19-run victory over their opposition, securing their sixth title? The same country also won the Men’s equivalent this year.

23 Which film starring Michelle Yeoh, Ke Huy Quan and Jaime Lee Curtis, took home the award for Best Film at the 95th Academy Awards?

Which musician was appointed the new Men’s Creative Director of Louis Vuitton?

12 13 14 15 16 17 18

After waves of people flocked to cinemas to watch two films back-to-back in July, what was this five-hour film marathon coined? This year, which legendary US country musician held a two-day music concert for his 90th birthday party? Why was the Good Vibes Festival in Malaysia cancelled?

Which musician’s fans sparked seismic activity equivalent to a 2.3-magnitude earthquake on the Seattle-leg of their tour?

Which country officially joined NATO, becoming the 31st member of the security alliance and doubling the alliance’s border with Russia?

The FDA gave Elon Musk the go-ahead to trial his latest innovation on humans. What was this?

Which Euro-Asian land-border opened briefly for the first-time in 35 years?

8 9

Scottish health secretary Michael Matheson came under pressure for the £11,000 data roaming charge he ran up whilst on holiday in Morocco, in one day alone racking up a bill of £7,000. What was the reason he gave for this enormous bill?

Which tech company fired and then rehired their CEO in the space of four days, sparking outrage with employees and venture capitalists alike?

10 20

What was the name of Prince Harry’s tell-all memoir released earlier this year?

Which actress was posthumously awarded a star on the Hollywood Walk of Fame by the Hollywood Chamber of Commerce on May 4th? Which film franchise released its fifth and final instalment this year, and was the only film in the series that was not directed by Steven Spielberg?

Which South-Korean band were given honorary MBEs by King Charles for their work supporting environmental causes?

SPORT Who won their first Wimbledon title at the 2023 Men’s Wimbledon Championship, defeating the four-time defending champion Novak Djokovic?

Which British footballer overtook Wayne Rooney’s record to become England’s all-time greatest goal scorer in a 2-1 victory over Italy with his 54th goal?

Who won the Super Bowl LVII at the State Farm Stadium, Glendale, Arizona?

25 26

Which American athlete announced their re-retirement after a 23-year career and a record seven Super Bowl titles with the NE Patriots and TB Buccaneers? Which American athlete became the first player in NBA history to surpass 39,000 career points, surpassing Kareem AbdulJabbar’s previous record of 38,387?

Spain won the Women’s World Cup 2023 Final, beating England 1-0. But which country took home the bronze medal?

The DP World Tour, Team Europe, beat the PGA of America, Team United States, 16½-11½ in Italy this year, regaining the Ryder Cup. When was the last time Team America won the Ryder Cup on European soil?

Defending champions South Africa beat New Zealand 12-11 in a nail-biting final at the Rugby World Cup 2023 at the Stade de France, Paris. Including this win, how many titles does South Africa now hold since the first Rugby World Cup tournament in 1987?

HISTORY Which Macedonian ruler’s reign, from 336 to 323 BCE, marked a decisive moment in the history of Europe and Asia, economically and culturally uniting a world that stretched from Gibraltar to the Punjab?

PQ Magazine January 2024

PQ annual quiz PQ In which year did the United States return the Panama Canal to Panama?

39 40

How long did the Siege of Leningrad last until being broken in 1944?

In what year did the Beatles split up?

GENERAL KNOWLEDGE Why is the number 2023 a special number mathematically?

In which year did Amelia Earhart become the first woman to successfully pilot an aircraft across the Atlantic Ocean?

32 33 34 35 36 37 38

41 42

The year 1987 was shortened by how much time to adjust the Gregorian calendar? When is National Windrush Day celebrated in the UK?

The Elgin (Parthenon) Marbles are controversially located in which museum?

Which country features a shipwreck on its national flag?

Who was the last Tsar of Russia?

On which remote island was Napoleon held prisoner from 1815 until his death

in 1821?

Who discovered that the earth revolves around the sun? Which English king had the longest reign? Who was the first African American author to receive a Pulitzer Prize in

1950?

PQ Magazine January 2024

Saying the name of what dried fruit used to be used to encourage people to smile before a photo in the 1800s, before the phrase ‘cheese’?

48 49 50

‘Kushim’ is considered to be the firstever name recorded, over 5000 years ago. What profession did Kushim belong to?

Send your answers to the Editor at graham@ pqmagazine.com. Put ‘Quiz’ in the header. Closing date for entries is 12 January 2024. All the correct entries will be put into a hat and three lucky winners will be sent the Lumie Bodyclock.

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Which legendary entertainer was inducted into the US army in 1958?

Which country has the most islands?

46 47

Who was the world’s first woman prime minister?

PQ NCI

A question for Tom Tom Clendon (pictured) guides you through the options of how non-controlling interest (NCI) can be measured and the consequences to the measurement of goodwill and accounting for impairment losses

o, what exactly is NCI? On the consolidation of a subsidiary, IFRS3 Business Combinations requires that where the parent has not acquired 100% of the shares in the subsidiary, then the other shares are termed the non-controlling interest (NCI). Thus, when the parent acquires a controlling interest and establishes a subsidiary by buying say 80% then the NCI will be 20%. Consequently, the postacquisition profits and losses of the subsidiary are shared in this proportion. To calculate goodwill, the NCI at the date of acquisition is introduced as a consolidation adjustment. This key ingredient in the calculation of the goodwill will also be part of the group’s equity and be increased by the NCI share of the subsidiary’s post-acquisition profits. NCI at the date of acquisition can measured at either: 1. fair value (FV), meaning the value is based on the market value of those shares and is said to give rise to full goodwill; or 2. as a proportion of net assets, meaning it is measured based on the net assets at acquisition and is said to give rise to proportional goodwill. Both methods are examinable, but it is always made clear in exam questions which measurement basis has to be used. What you need to understand, and be able to apply, is that the method chosen to measure NCI at acquisition will have a direct impact both on the measurement of the goodwill arising and how any impairment loss on that goodwill is accounted for.

NCI as used in the goodwill calculation The following workings actually set out how NCI is used to calculate the goodwill and the consequences of using either method of measuring NCI at acquisition. With NCI as a proportion of net assets

With NCI at FV FV of the consideration paid by the parent for its controlling interest

FV of the consideration paid by the parent for its controlling interest

NCI at the date acquisition at FV (a)

NCI at the date acquisition as a proportion of net assets (b)

Less the FV of the net assets of the subsidiary at the date of acquisition

(X)

Less the FV of the net assets of the subsidiary at the date of acquisition

(X)

Goodwill arising at acquisition (full goodwill)

Goodwill arising at acquisition (attributable to the parent only)

Less impairment loss (split between the group and the NCI)

(X)

Less impairment loss (wholly charged against group profits)

(X)

Goodwill at the reporting date

Let’s look at the calculations required to initially measure the NCI at the date of acquisition using each of the methods identified above and clarify the consequences when impairment losses have to be accounted for. (a) NCI measured at fair value = goodwill in full = split the impairment loss with the NCI The FV of the NCI at acquisition is measured by taking the shares in the subsidiary not owned by the parent and valuing them at their market value: 22

NCI Number of shares in the Market value (share NCI at x x = % subsidiary price) FV Because of measuring NCI at FV, the goodwill arising at acquisition is full goodwill; that is say goodwill is both attributable to the parent and the NCI. This means that when there is an impairment loss on full goodwill charged to the group profit & loss account, the NCI are impacted – so in the group statement of financial position, the parent’s share reduces group retained earnings and the NCI’s share reduces the NCI. (b) NCI measured as a proportion of net assets = goodwill attributable to the parent = charge all the impairment loss to group retained earnings Alternatively, NCI at acquisition can be measured at their proportion of the subsidiary’s net assets. NCI %

FV of the subsidiary’s net assets at acquisition

NCI as a proportion of net assets

Because of measuring NCI as a proportion of net assets the goodwill arising at acquisition is attributable to the parent only. This means that when there is an impairment loss on the goodwill, all the impairment loss is charged to the group profit & loss account – but in the group statement of financial position only the group retained earnings are reduced and none to the NCI. Conclusion So now you know the different ways to calculate NCI and the impact that it has on how impairment losses are accounted for, it is important that you go away and practice these calculations! • Tom Clendon is an online ACCA SBR lecturer and podcaster. He loves WhatsApp – message 07725 350793. See www.tomclendon.co.uk PQ Magazine January 2024

PQ the PQ

Careers in Accountancy Your career, your future! Brought to you by Queen Mary University of London & PQ magazine Supported by ACCA, AICPA & CIMA, IFA, and Hays Accountancy & Finance Making decisions about your future can be daunting, so we are here to give you an insight into whether accounting is the right career for you. Join us on Wednesday 28 February 2024 and you’ll leave with a much better understanding of all the options available to you, and what a day in the life of an accountant is really like! There will also be stands with lots of information for you to visit. We’ll explore: • What qualification and what accountancy body is right for you? • Is an Apprenticeship the way forward? • The wide-ranging career paths open to you. • What employers expect from you. • What are the ‘in’ roles – and how much will you be paid! To find out more and sign up to the day go to our Eventbrite page: https://shorturl.at/istFS Careers in Accountancy – your career, your future! Date: Wednesday 28 February 2024 Venue: The Octagon, Queen Mary University of London, 327 Mile End Road, Bethnal Green, London E1 4NS Time: 9.30am – 2pm Come early and visit the stands!

PQ Magazine January 2024

PQ salary survey

What 2024 holds for PQs Karen Young, Director at Hays specialising in Accountancy and Finance, takes us through the latest salary survey

Scotland AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ

n the past 12 months a number of factors have continued to shape the world of work, including skills shortages, cost of living pressures, the rise of skills-based hiring and the flexible working debate. The question is: how will these factors impact the professional landscape in the year ahead? New research revealed in our 2024 UK Salary and Recruiting Trends guide shines a light on all the trends affecting PQs and accountancy and finance employers today and what the next 12 months might have in store for the finance sector.

Economic optimism on the rise While economic uncertainty is ongoing, confidence that the economy will help, rather than hinder, employment opportunities is on the up. More than a third (38%) of accountancy and finance employers are optimistic about the wider economic climate and the employment landscape in the long-term, demonstrating an increase from 33% last year. On top of this, according to last year’s research, over half (53%) of PQs were concerned about the impact the economy might have on their career progression, whereas 59% of PQs this year are more optimistic about the wider economic climate and the employment opportunities it could create. Skills shortages are still a challenge Most accountancy employers (88%) faced skills shortages in the past year, showing little signs of improvement from the year before (90%). Although skills shortages have been felt across the finance sector, the skills gap has been most noticeable within credit management (92%) and PQ accountancy (90%). With the world of work continuously evolving, soft skills remain in high demand and prove invaluable for enhancing a person’s career. The core skills finance employers specifically look for are communication and interpersonal skills and an ability to problem-solve, adopt change and learn and upskill. In light of this, our research shows that PQs are particularly keen to develop their ability to learn and upskill, people management skills and critical thinking skills to drive their career forward. Hiring practices favour skills and potential Over a third (38%) of accountancy employers actively acknowledge the importance of skills and a willingness to learn, as they feel a degree is not an essential requirement. While relevant qualifications and experience will certainly help to support PQs on 24

North West their career journey, employers are less strict about making these factors a mandatory requirement at entry level. When it comes to hiring for potential, most finance employers (78%) say they are likely to hire professionals without all the required skills, with the intention of upskilling them, which is undoubtedly a positive way to create more opportunities and attract a diverse range of talent. Benefits are vital to attract PQs Although 52% of PQs say they aren’t considering a career change in the year ahead, just under half (48%) are, and the benefits an organisation offers are crucial for attracting and retaining talent. Aside from salary, an impressive benefits package, a good work-life balance and continuous professional development were rated as the most important factors for PQs when contemplating a new role. Interestingly, just over a third (34%) of PQs would be prepared to accept a lower paid job for more purpose and a better work-life balance, on par with last year. Most (81%) of PQs consider whether an organisation has a strong sense of purpose as important when assessing a potential role. Optimistically, almost three-quarters (72%) of PQs are satisfied with their job and just under two-thirds (62%) agree there is scope for career progression at their organisation. Despite the challenges organisations and professionals have to contend with today, there are still many things to be positive about across the accountancy landscape. Hopefully our research will give you some of the insight you need to shape your career in the year ahead. To see the salary guides in full go to https://www. hays.co.uk/salary-guide.

AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ

Typical £26,000 £38,000 £33,000 £38,000 £33,000 £35,000 £30,000 £38,000 £33,000

Typical £26,000 £40,000 £35,000 £39,000 £34,000 £38,000 £33,000 £36,000 £31,000

West Midlands AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ

South West AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ

Typical £26,000 £42,000 £34,000 £42,000 £34,000 £35,000 £31,000 £41,000 £34,000

Typical £27,000 £44,000 £37,500 £43,500 £34,000 £38,500 £33,000 £40,000 £35,000

PQ Magazine January 2024

salary survey PQ

North East AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ

Yorkshire & the Humber AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ

Typical £26,000 £37,000 £32,000 £38,000 £32,000 £35,000 £28,500 £35,000 £30,000

Typical £26,000 £38,000 £33,000 £38,000 £32,000 £35,000 £30,000 £35,000 £30,000

East Midlands AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ

Typical £24,000 £42,000 £33,500 £41,000 £33,000 £33,000 £30,000 £41,000 £34,000

East of England Wales AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ

Typical £26,000 £37,000 £32,000 £36,000 £33,000 £33,000 £28,000 £35,000 £28,000

AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ

London AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ

South East AAT studier ACCA Finalist ACCA PQ CIMA Finalist CIMA PQ CIPFA Finalist CIPFA PQ ACA Finalist ACA PQ PQ Magazine January 2024

Typical £27,000 £43,000 £36,000 £43,000 £36,000 £38,000 £32,000 £40,000 £34,000

Typical £30,000 £53,000 £42,000 £53,000 £42,000 £40,000 £35,000 £44,000 £37,000

Typical £28,000 £50,000 £42,000 £50,000 £43,000 £38,000 £32,000 £42,000 £34,000 25

ACCA Careers is dedicated to helping ACCA students develop their careers.

With hundreds of entry level global job opportunities and over 400 career advice articles, we’re here to help you every step of the way.

Visit jobs.accaglobal.com today

PQ ACCA spotlight PQ

Finding the right supervisor

Your practical experience supervisor will play an instrumental role in helping you complete the practical experience requirement in the role and then get a second ‘qualified’ supervisor –your employer’s external auditors/ accountants or a consultant who works with your employer, for example – to sign off the performance objectives. This may seem a bit more complicated, but it means you can still achieve the PER if access to a qualified supervisor is not there through your experience route. It’s also important to remember that if you do voluntary work or an internship this can work towards your PER if you can match the work you do to the performance objectives, log them and get them signed off by a qualified supervisor.

CCA’s practical experience requirement (PER) is a great opportunity to apply in real-life situations all of the knowledge you learn from studying for the exams. An essential part of making the most of this experience is finding a good practical experience supervisor. This is someone who not only can sign off your performance objectives and smoothen your path to membership, but they can also be a source of motivation and inspiration – like a mentor. The following are five key points to help you establish a healthy and rewarding practical experience supervisor relationship, which is especially important in these challenging times.

1. Suitability To complete your PER, you need to complete your performance objectives. So if you work in an accountancy firm or in the finance department of a business, you may be lucky to have several qualified accountants working above you who could take on the role of being your practical experience supervisor. You could seek the one who you get along with best, or whose career path or way of working most inspires you. Working for an Approved Employer helped Yani Shi ACCA, a senior data analyst in China. While doing her PER, she was working for a

platinum ACCA Approved Employer, which meant she could apply for performance objective exemptions. “Check to see if your employer is approved by ACCA or look at applying to companies that are,” she said (Access ACCA’s Approved Employer directory). 2. Availability An important aspect of a good supervisor is that they’re available for you. They can be a mentor more than merely someone to sign off the performance objectives. A good supervisor will sit down with you and help you plan your PER, map out your objectives and talk to you about identifying and achieving targets in a timeframe. “The choice of a supervisor helps a lot in having an easy ride through the PER process,” said Apollo Ekelot FCCA, who works in oversight and compliance at the United Nations High Commissioner for Refugees in Switzerland. “Someone who is not readily available may not be very helpful.” 3. Your boss isn’t ACCA qualified? Not a problem! If you don’t work under a qualified accountant you can ask your manager to sign off your time

4. Collaborate, support and respect Your supervisor can be a mentor. If possible, try to choose a supervisor who you think you will get along with and who will be supportive and respectful towards you. Why not find someone you can develop a working relationship with, who will be there for you and motivate you? “They should help you to identify which performance objectives you should be aiming to achieve and the date by which you need to achieve them,” said Shi. “A mentor helps you identify personal development, training, research or practice needed to achieve the objectives.” 5. Two-way relationship Rudy Chen FCCA, owner of Yes Accountants, commented: “Most supervisors/mentors are very willing to pass on their knowledge and experience – the more the student knows about the job, then the easier the job of the supervisor. But if a student is less than enthusiastic and lacks perseverance, then even the greatest teacher will lose patience. She said: “I always believe that the attitude/ mindset of the new member is key. This will drive you into making the most of your relationship with your supervisor. Always ask questions, ask if there are any additional courses/guidance as suggestions for improvement, be proactive and, most importantly, persevere and don’t give up easily when coming up against challenges.” Find out more You can access further details about the role of the practical experience supervisor on ACCA’s website. • Thanks to ACCA for this article

Registered Tuition Provider

PQ Magazine January 2024

PQ IFA spotlight

Insolvencies: what you need to know Sadly, the number of company insolvencies is on the rise. Here’s the IFA’s advice on how to deal with a company in distress

tubbornly high rates of inflation, the cost-of-living crisis and the lack of government subsidies have meant that things continue to be tough for small businesses. Construction, wholesale, retail and hospitality have been worst-hit, but many SMEs in other sectors are concerned about business failure. It’s no surprise, therefore, that the number of company insolvencies is at a high with October 2023 showing an 18% increase from October 2022. Representing a 13-year record, it’s essential that accountants become forwardthinking, proactive experts, offering practical, grounded advice to businesses to avoid financial hardship.

Being proactive A client with a failing business may reach out to

you about how to manage their debts and in some cases, insolvency. There are options available at this stage, so it is worthwhile refreshing your knowledge of investment practices, preparation for sale, debt restructuring, and of course insolvency, selecting expert partners that can support you and the business. Generally, businesses work retrospectively, but ideally, action needs to be taken to prevent insolvency being the only option. Now is the time to be more forward looking, offering reporting and advice that ultimately wards off potential insolvencies. This makes it possible to forecast potential issues. As the trading situation worsens, businesses with up-to-date information can take proactive measures and are far more likely to survive and thrive. Financial accounting for risk management can also play a key role.

Data-driven decisions By using tools such as dashboard reporting and cash flow forecasts, it is possible to notice patterns as they are occurring and act accordingly. They enable businesses to preempt challenges such as downward sales trends or rising costs. This proactive rather than retrospective analysis can feel intimidating for SMEs that don’t currently operate this way, so it is your job to guide them through it. By having a continuous stream of data, it is possible to make data-driven decisions that enable companies to stay afloat. This means that your clients can act quickly rather than waiting until it is too late to make a meaningful decision. Building rapport Often accountants can be the last to know that a business is in trouble, purely because the director has sought help from Google rather than you, their trusted financial expert. By ensuring that there are open lines of communication between you and the business, you can spot the warning signs before your client feels like they are backed into a corner with insolvency as the only way out. • Thanks to the IFA for this article

YOUR WELLBEING HUB Maintaining a positive mindset while studying can be challenging. Our wellbeing hub provides a range of resources and podcasts from our wellbeing ambassador to help support you throughout your ACCA journey. Explore ACCA wellbeing hub bit.ly/3ULGPdY

PQ Magazine January 2024

PQ AI PQ

The computer says… PQ magazine’s Francesca Cullaney asks ChatGPT about your future, and the future of accountancy in general

ith AI becoming more accessible and prevalent in everyday life, coupled with Elon Musk’s vision of a ‘protopian’ future comprised of universal high income and a lack of human jobs, PQ magazine thought it would be fitting to ask ChatGPT a few questions about the future of accountancy – a career often seen as rewarding, but above all, constant and secure. PQ: If you were a human considering a career in accountancy, can you think of 10 questions you would consider asking an AI language tool, like yourself, regarding the future of the profession and considering the influence of AI? Please also provide answers to each question. ChatGPT: Certainly! If I were a human considering a career in accountancy and wanted insights from an AI language tool, I might ask the following questions: 1. How will advancements in AI and automation impact the role of accountants in the future? AI and automation are likely to automate routine tasks like data entry and processing, allowing accountants to focus more on analytical and strategic aspects of financial management. 2. What emerging technologies should accountants be familiar with to stay relevant in the field? Accountants should be familiar with technologies like blockchain for secure transactions, machine learning for predictive analytics, and advanced accounting software to streamline processes. 3. How can accountants leverage AI tools for improved efficiency and decision-making? Accountants can use AI for data analysis, trend identification and forecasting. AI tools can enhance accuracy, speed up financial reporting, and provide valuable insights for better decision-making.

PQ Magazine January 2024

Are there ethical considerations or challenges associated with the use of AI in accounting? Ethical considerations include ensuring data privacy, addressing biases in algorithms, and maintaining transparency. Accountants need to navigate these issues to uphold ethical standards in their profession. What skills will be in high demand for accountants in the future, considering the influence of AI? Skills such as data analysis, critical thinking, adaptability, and a strong understanding of technology will be crucial. Soft skills like communication and problem-solving will also be important for client interactions. How can accountants adapt to changing regulatory requirements influenced by advancements in technology and AI? Accountants can stay informed about regulatory changes through continuous education. Utilizing AI tools for compliance monitoring and reporting can also help in adapting to evolving regulatory requirements. In what ways can AI support accountants in managing and mitigating financial risks for businesses? AI can assist in real-time risk assessment, fraud detection, and scenario modeling. Accountants can leverage AI to identify potential risks early and develop strategies to mitigate them. What role will data analytics play in the future of accounting, and how can accountants develop expertise in this area? Data analytics will be integral for extracting meaningful insights from large datasets. Accountants can develop expertise by acquiring skills in data visualization, interpretation, and utilizing analytics tools.

How might AI impact the client-accounting relationship, and what strategies can accountants employ to maintain strong client-connections in the digital age? AI can enhance client interactions through personalized insights. Accountants should focus on clear communication, demonstrating the value of human expertise, and providing a personalized and responsive service. 10. What cybersecurity measures should accountants be aware of to protect sensitive financial information in the age of AI? Accountants should implement encryption, secure cloud solutions, and multi-factor authentication. Regular cybersecurity training for staff and staying updated on the latest threats are essential to safeguard sensitive financial information. In summary, the future role of accountants will likely involve a shift from routine, transactional tasks towards more strategic, analytical, and advisory functions. Embracing technological advancements, adapting to new skill requirements, and addressing ethical considerations will be crucial for accountants to thrive in this evolving landscape. PQ: All in all, would you recommend pursuing a career in accountancy? ChatGPT: Certainly! Ultimately, a career in accounting can be rewarding for those with the right skill set and interests. It's important for individuals to consider the evolving nature of the profession, their own adaptability, and whether the challenges and opportunities align with their career aspirations. Consulting with professionals in the field, gaining relevant experience through internships, and staying informed about industry trends can help in making an informed decision. • Francesca Cullaney is a reporter and events assistant for PQ magazine 29

PQ AAT exams

Overhead absorption costing explained Karen Groves explains how to approach an overhead absorption exam style question and tests your knowledge on the subject verhead absorption is assessed at AAT Levels 2, 3 and 4, and is therefore a very important part of the syllabus. Overhead costs are also referred to as indirect costs. These costs need to be spread over the output of the production cost centre to ensure all costs are included. The absorption rate is based on budgeted quantities of the products and will usually be set at the start of a period. For Level 2 Principles of Costing, students are expected to be able to calculate overhead absorption based on: • Unit basis – whereby each unit gets the same amount of overhead absorbed. • Machine hour basis – whereby the overheads are absorbed based on a machine hour. • Labour hour – whereby the overheads are absorbed based on a labour hour. The most suitable method would be selected from the above, for example, a highly mechanised business would select machine hour basis, whereas a highly labour-intensive business would select labour hour basis. We will look at an example question, and the way this should be approached.

Example EC Limited are calculating the cost for one product and require calculations for an overhead absorption rate based on rate per unit, rate per machine hour and rate per labour hour as they are considering which method to select. The activity for November 2023 is as follows: Units

200,000

Machine hours

30,000

Labour hours

20,000

Overheads

£250,000

The absorption rates would be calculated as follows (absorption rate answers to two decimal places): Units

Machine hours £

Labour hours

Calculations: Overheads £250,000 / 200,000 = £1.25 Machine hours £250,000 / 30,000 = £8.33 Labour hours £250,000 / 20,000 = £12.50 EC Limited have provided you with the following information relating to making one unit: Machine hours Labour hours Material

20 minutes 30 minutes at £12 per hour 5 kilos at £4 per kilo

Using the overhead rates calculated earlier, we can now complete the total unit cost, using the data above: Units £ Material Labour Direct cost Overheads Total unit cost

20.00 6.00 26.00 1.25 27.25

Machine hours £ 20.00 6.00 26.00 2.78 28.78

Overheads Units £1.25 calculated earlier Machine hours £8.33 / 60 minutes x 20 minutes = £2.78 Labour hours £12.50 / 60 minutes x 30 minutes = £6.25 Now have a go! ABC Limited are calculating the cost for one of their products and require calculations for an overhead absorption rate based on rate per unit, rate per machine hour and rate per labour hour as they are considering which method to select. The activity for December 2023 is as follows: Units

120,000

250,000

Machine hours

18,000

Activity

200,000

30,000

20,000

Labour hours

22,000

1.25

8.33

12.50

Overheads

£290,000

20.00 6.00 26.00 6.25 32.25

Calculations: Material 5 kilos x £4 per kilo = £20.00 Labour hours £12 / 60 minutes x 30 minutes = £6.00

Overheads

Absorption rate

Labour hours

PQ Magazine January 2024

PQ the PQ Complete the table below (absorption rate answers to two decimal places): Units

Machine hours

Answer Units

Machine hours £

Labour hours

Overheads

290,000

Overheads

Activity

120,000

18,000

22,000

Activity

Absorption rate

2.42

16.11

13.18

Absorption rate ABC Limited have provided you with the following information relating to making one of their product units: Machine hours

20 minutes

Labour hours

30 minutes at £15 per hour

Material

4 kilos at £3 per kilo

Calculations: Overheads £290,000 / 120,000 = £2.42 Machine hours £290,000 / 18,000 = £16.11 Labour hours £290,000 / 22,000 = £13.18 Units

Using the overhead rates calculated earlier, complete the total unit cost, using the data above: Units

Machine hours £

Material Labour Direct cost Overheads Total unit cost

Machine hours £

Labour hours

Material

12.00

Labour

7.50

12.00 7.50

Direct cost

19.50

Overheads

2.42

5.37

6.59

Total unit cost

21.92

24.87

26.09

£ Calculations: Material 4 kilos x £3 per kilo = £12.00 Labour hours £15 / 60 minutes x 30 minutes = £7.50 Overheads Units £2.42 calculated earlier Machine hours £16.11 / 60 minutes x 20 minutes = £5.37 Labour hours £13.18 / 60 minutes x 30 minutes = £6.59 • Karen Groves is an AAT tutor and AAT Faculty Director at e-Careers

No accounting 4 the love of football — is football finance broken? An evening with University of Liverpool’s Kieran Maguire, of The Price of Football podcast fame, and friends… Brought to you by PQ Magazine & CASSL Our love of the game always comes at a price… the problem is understanding how finance and football can keep the beautiful game, well, beautiful! With Kieran’s help we will follow the money and find out what is really going on. We may be starting with Everton, but who knows where the evening will take us. Kieran’s podcast won the inaugural PQ magazine Podcast of the Year award. He was also named Lecturer of the Year in 2011. No accounting 4 the love of football – is football finance broken? Date: Thursday 21 March 2024 Venue: The Crypt on the Green, Saint James Church, Clerkenwell Close, London EC1R 0EA Time: 6pm to 8.30pm. Kick off at 6.30pm Sign up: https://shorturl.at/cikO0 Supported by

HM Enquiries RC & Powers PQ Magazine January 2024

PQ AAT spotlight

Financial statements for sole traders explained Teresa Clarke explains all you need to know about the statement of profit or loss If our business was a sweet shop, the sales revenue would be the money taken in sales of sweets. The cost of sales would be the stock of sweets sold. The expenses are costs incurred in the running of the business and vary from business to business, depending on the trade of the business. The expenses are totalled and then deducted from the gross profit to give the net profit of the business. (The net profit is the figure used to calculate the tax owed by the sole trader.) The statement of financial position The statement of financial position below shows just a few entries. Take a look at this and then read the details that follow to ensure that you understand the statement.

he statement of profit or loss is split into two parts. The first part known as the trading account giving us the gross profit. The second part calculates the net profit of the business after expenses have been deducted. The statement of profit or loss shows the performance of the business over the past accounting period, usually a period of 12 months, to the accounting year-end date. The statement of profit or loss contains the income and expenses for the business.

The statement of financial position The statement of financial position below shows just a few entries. Take a look at this and then read the details that follow to ensure that you understand the statement. The statement of financial position Non-current assets:

Cost

Accumulated depreciation

Carrying value

Machinery

£100,000

£20,000

Vehicles

£60,000

£36,000

£80,000 £24,000

£160,000

£56,000

£104,000

Current assets: The statement of financial position The statement of financial position is a list of all the assets and liabilities of the business at a given date, usually the last day of the accounting period. This will be the year-end date of the statement of profit or loss. If the statement of profit or loss is for the year ended 31 March 2022, then the statement of financial position will be dated 31 March 2022. The statement of financial position shows the business equity, closing capital or net worth at that date. It contains the assets and liabilities.

Bank

The statement of profit or loss The statement of profit or loss below shows just a few entries. Take a look at this and then read the details that follow to ensure that you understand the statement. Statement of profit or loss

Net current assets

Sales revenue

£100,000

Cost of sales: Opening inventory

£4,000

Purchases

£28,000

Less closing inventory

(£6,000)

Gross profit

£26,000 £74,000

Expenses: Office expenses

£1,500

Motor expenses

£4,600

Insurance

£2,000

Rent

£6,000

Total expenses

£14,100

Net profit

£59,900

The sales revenue is the income of the business. This could be the sales made in a shop or invoices sent out to customers. It can be referred to as sales revenue, sales or just income. The cost of sales is made up of the opening inventory (or opening stock), plus the purchases, less the closing inventory (or closing stock). This represents the cost of earning the income. It can also be referred to as the cost of goods sold. The cost of sales is deducted from the sales revenue figure to give the gross profit. 32

£3,000

Closing inventory

£4,000

SLCA

£2,000

£9,000

Current liabilities: PLCA

3,000

VAT

5,000

£8,000 £1,000

Non-current liabilities: Long term loan

£25,000

Net assets

£80,000

Financed by: Capital Plus profit Less drawings Closing capital/equity

£60,000 £59,900 £39,900 £80,000

The statement starts with the non-current assets. These are capital items and are shown at their original cost, less their accumulated depreciation. It is the carrying value that we need for this statement. Current assets are listed next, followed by the current liabilities. Each are totalled and then the current liabilities are deducted from the current liabilities to give us the net current assets figure. Any non-current liabilities are shown under this, and these are usually long-term loans, mortgages, or other long-term finance. The carrying value of the non-current assets, plus the net current assets, less the non-current liabilities will give the net assets figure or net worth of the business. The second half of this statement is the ‘financed by’ or ‘represented by’ section. This is the opening capital, plus the profit of the business (taken from the statement of profit or loss), less any drawings the owner has taken from the business. The final figure should be the same as the net assets figure from the first part of the statement. • Teresa Clarke is AAT tutor If you like my way of explaining things, you might like my workbooks, which are all available from Amazon in both paperback and as eBooks. The links to all my workbooks can be found at https://www.teresaclarke.co.uk/ PQ Magazine January 2024

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PQ CIMA spotlight

Getting your case study answer on point Nasheen Wuisman explains how you can maximise your chances of success in the case study exam

reparing yourself for the case study exam is all about practising and developing the core skills that the examiner wants to see you demonstrate on the day. So, you have been gaining confidence in your technical knowledge. You have been focusing on the skill of applying your knowledge to a given case study task – to mimic a reallife scenario. You have been attempting questions to time, to make sure you get as much experience in creating an exam standard answer in the time allocated. If you have done well with this last skill then kudos to you as many candidates simply run out of time, and don’t get to cover everything they need to in an answer. So, let’s start here – under so much time pressure, how do you attempt to cover as much as you would like in your answer?

Structure is everything Giving some thought to how you might structure your answer in the exam is another core skill which is often ignored, or assumed as something that will fall into place on the exam day. Good structure will allow you to be able to wedge more into your answer in the allowed time. It will allow you to focus your answer on the key areas identified by the examiner in the preseen, unseen and answer the actual task set. It will allow you to keep your sentences short and to the point, help add value even – something we know will attract higher level marks. 34

Creating an organised answer When you are in the answer planning stage in the exam, you are reading the un-seen, recalling the pre-seen, making links and bringing in concepts you have been revising. You read the tasks and start thinking about where to begin… Start with organising all your thoughts under headings. It will create the focus you need at this crucial time. Carefully read the task, and use the words in the task set to derive subheadings under which your answer can be structured. Let’s put it to the test Here’s a real example, from the Operational Case Study exam set in August last year. In the scenario, candidates were assuming the role of a Finance Officer in a company that manufactured tractors. In the tasks, candidates were asked to react to the news that the product development team had made a remote drive tractor which is operated by an app on the driver’s smartphone/ device. One task asked candidates to set out how “the costing of the remote drive app is different from costing the additional components of the remote drive tractor itself”. You may have identified here that the question is asking you to apply your knowledge of costing digital products (from the operational level syllabus) to the scenario. However, you cannot stop there. The question specifically asked candidates to compare the app costing with costing the traditional components. Many candidates missed this completely and wrote only about costing the app.

The trick is to read and understand what the question is asking for. Start with a heading like ‘Costing of remote-drive app versus costing additional components’. You know you need to have ‘versus’ in there because you saw it was asking for a comparison. Getting this heading right then sets you up to address the task fully. The next step is to work out your subheadings. Each of these will be an area of costing where you can make comparisons between the digital and traditional elements. These could be ‘Initial development costs’, ‘Ongoing development costs’, ‘Production material and labour costs’, ‘Maintenance’ and ‘Overheads’. Write the subheadings first, before you start making any comparisons underneath them. That way your answer will be structured and read well, so the examiner can clearly see you have systematically addressed every aspect of what they have asked for. Following this approach means you are planning your answer while writing it at the same time. That will save you precious minutes in the exam and give you the best chance of covering the whole question. Not to mention maintaining your focus on the question asked throughout. Stay in control Structuring your answer this way gives you a sense of control in the exam – it will reduce the feeling of stress that can take over when you are not sure if you are on the right track. It allows you to: • Stay focused on the task in hand – and not go off on a tangent. Keep referring to the headings/subheadings. • Help keep your points succinct as you have already set the scene with the subheading. • Address a particular issue from various viewpoints coherently. So, when you practice, read the question carefully, write a series of subheadings addressing every part, then fill in the substance. Mastering this core skill will give you a fantastic chance of not only a good solid attempt of the exam but even some of those higher-level marks, too! • Nasheen Wuisman, Senior Manager of Global Academic Progression at AICPA & CIMA, together as the Association of International Certified Professional Accountants PQ Magazine January 2024

PQ profile PQ

‘Accountants are unsung heroes’ Meet Dominic Noakes, a young accountant who is making waves in corporate accountancy Dominic Noakes of Haysmacintyre was an avid reader of PQ magazine when he was studying. He has moved onwards and upwards since then and was recently interviewed by ACCA’s Pat Delibridge. Here’s what he had to say. fter studying accounting and finance at UEA, I enrolled with ACCA, which appealed to me as I saw it as industry and internationally focused. ACCA enabled me to self-study and gave me continued direction and purpose post-formal education. I joined a small local accounting practice and worked across many areas of accounting, which was great for starting my career. I gained a solid grounding in the basics of accounting, tax, company secretarial and payroll. After qualifying within three years and working up to a Finance Manager level, I decided to continue my development and move to central London, as well as a much bigger practice – I joined Haysmacintyre LLP in 2016. At Haysmacintyre, I have worked my way through manager levels and I’m currently a director in a team of 35-plus London-based accountants, from graduates to trainees to experienced managers. I also manage a diverse and often challenging portfolio comprising predominantly small and fastgrowing companies, and I’m heavily involved with several strategic firm projects too. Last year I was personally nominated in Accountancy Age’s Top 35 Under 35, highlighting young talent in the accountancy sector. Haysmacintyre’s outsourcing team has also won several awards and we won the Large Firm of the Year award at this year’s Accounting Excellence Awards. Haysmacintyre is a very open and collaborative place to work. Whilst there is emphasis on technology and process, it is people that ultimately make a business. We strive to offer the best possible environment for our teams, knowing that clients will be in good hands if we do. Our development is as focused on soft ‘human’ skills as they are on technical – this has never been more important than now in the age of technology and AI. It’s the most topical subject for a reason. Still, I don’t think most people have fully grasped how deeply

“A

the explosion in AI will disrupt almost every facet of our lives. Technological advances have historically impacted so-called ‘low-skill’ and easily automated tasks, but AI-based technology is on an exponential curve and will impact professional services like never before. We must be cautious about privacy, security, and data accuracy risks. However, practitioners and companies that can move with pace and adapt the fastest can thrive. Beyond numbers, accountants are unsung heroes that ensure compliance with UK financial regulations, build investor trust, and

empower businesses to allocate resources efficiently and fuel growth. Overall, no mean feat! Although I’m now more specialised in my area of accountancy, every day has a new client challenge or opportunity. I love the fast pace and strong relationships I have forged and the client-facing aspect, where I have become a trusted advisor to many growing businesses.” • Pat Delibridge is ACCA sectors and communities manager. This article first appeared on ACCA UK’s practitioner profiles section.

FUTURE

Start your journey to the CGMA® designation with the CGMA Finance Leadership Program. PQ Magazine January 2024

LEADERS WA N T E D

PQ viewpoint

How will AI affect young accountants? Darren Cran explores whether generative AI tools such as ChatGPT will transform or destroy your job prospects

he assumption is that younger employees are more clued up on the tech, and more adaptable. Yet if AI applications take care of everything from data collection to drafting a financial strategy, will the majority of finance functions be surplus to requirements? That’s unlikely. We are still in the early days of generative AI. A global survey by McKinsey, published in August, found a mere 7% of business, legal and professional services organisations currently use generative AI tools for work on a regular basis. It was only a minority of respondents in strategy and corporate finance who expected generative AI to decrease jobs. Yet we know there will be significant investment in generative AI, so what do younger professionals in the UK think about the technology? AccountsIQ put the question to finance professionals at medium-sized businesses across the UK to find out how both senior and junior finance team members feel about AI, its use, its limitations, as well as any fears they have, as part of its ‘Confessions of the Finance Function’ report. The verdict is clear – 82% of young professionals believe tools such as ChatGPT will have an impact on finance teams within the next five years. Interestingly, the opinions from the senior professionals on generative AI are much more mixed, ranging from outright optimism about how AI will improve performance to the 23% who see tools such as ChatGPT as a direct threat to their own jobs.

Will automation improve office culture? The integration of automation and AI in the workplace is indeed a transformative force that 36

has the potential to significantly impact morale and improve office culture, especially among younger professionals. AI, particularly advanced AI systems, requires vast quantities of homogeneous data to effectively interpret and exercise judgment or decision-making capabilities that are practical and valuable. Individual businesses in the mid-market often have unique and relatively small datasets, making AI solutions particularly advantageous for finance teams. Younger professionals can see how AI will alleviate some of their current frustrations and make their professional lives more fulfilling. The research found that three in 10 (30%) feel undervalued because they must undertake repetitive tasks for which they feel overqualified. Three-quarters (75%) spend up to a quarter of their time on manual tasks such as data collection, while almost two-thirds (63%) toil away on Excel spreadsheets. When they were asked what could be done to reduce their frustrations, a significant proportion of younger professionals thought the culture or atmosphere in their office would improve with better software and more automation for burdensome tasks. Nurturing younger staff is becoming more critical, even in a period of slow economic growth. Talented individuals are always in short supply, but the shortage of financial skills threatens to be a significant headache. Businesses must offer careers that meet Generation Z’s desire for greater fulfilment and personal development. Long hours in return for significant salaries are no longer the sole answer. Also, it is crucial to acknowledge that

training for finance professionals needs to factor in how technology is shaping new roles. However, if those in charge are from a different demographic it can pose a mismatch or problem. This mismatch has already had repercussions in the US, where CPA sign-ups have declined. AI capabilities are available – without risk While the overall picture may appear a little downbeat, the research found that help is on its way, rescuing the more junior members of staff from their back-office backwater. Almost all respondents said their organisation plans to implement new technology, which makes a huge amount of sense, given the advanced capabilities already available. There is no reason for organisations to wait for the arrival of a revolutionary generative AI solution. At a rough estimate, 90% of the AI functionality that is of use to finance professionals is already available from financial management software providers. This has the advantage that it comes without the drawbacks of outsourced vulnerability to cyber-attacks, data leakage or copyright infringement. It also provides data and insights that are reliable and trustworthy – unlike the current versions of generative AI. AI and analytics solutions will save time and give enthusiastic new entrants to the accountancy and finance profession greater scope to contribute value through financial analysis and strategic planning. More than half of the younger professionals surveyed by AccountsIQ (53%) said these are areas where they can make a positive difference. There is little doubt that AI will have a significant impact on the work of the finance function and should help streamline many complex processes and introduce higher levels of efficiency. Integrations with current financial management packages are inevitable and have major potential. This is important for performance, efficiency and competitiveness, but also to retain younger professionals with scarce skills. AI may not be a panacea – but it will have a critical role to play. • Darren Cran, COO, AccountsIQ PQ Magazine January 2024

PQ careers PQ

Dear Karen Ask PQ’s very own agony aunt Karen Young when you need advice from a real expert. Email your dilemma to graham@ pqmagazine.com, and he will pass on the best ones to Karen THE DILEMMA I’m finding it difficult to manage my time between work and study commitments. What advice do you have for staying on top of everything?

Employees put Google first

‘Employee Satisfaction Score’ out of 100 for each company. The categories considered were salary, business outlook, recommendation to friends, approval of the CEO, ratings from different demographic groups, health benefits, financial

benefits, flexible work hours and working from home, sick pay and vacation days, transportation benefits, career opportunities, and miscellaneous benefits. Google was revealed to be the best company to work for in the UK, with an impressive employee satisfaction score of 82.88 out of 100 overall. It received 95.35 for career opportunities and 89.30 for salary. In second place was Salesforce, with a satisfaction score of 81.28 out of 100 based on ratings of employee feedback. Morgan Stanley came close behind in third and Deutsche Bank ranked fourth. Other companies that managed to make the top 10 include Cisco Systems, Dell Technologies, Accenture, Bank of America, Avanade and Microsoft.

Haines Watts joins Cooper Parry Cooper Parry (CP) has become the UK’s 11th largest accountancy firm after it swallowed up Haines Watts. The London, South-East and Midlands businesses have now officially joined the CP team. Some 12 months in the making, the deal propels CP to a £125 million turnover, adds 11 offices, 63 partners and increases the headcount to 1,150 people. It means CP has tripled in size in the past year with the help of Waterland Private Equity. Underpinned by strong 33% organic growth for the first half of the current financial year, CP is on course to double in size over the next two years.

RSM Ireland to double in size RSM UK is investing heavily into RSM Ireland, with the aim of doubling the size of the firm there in the next three years. The investment also includes RSM UK acquiring ownership of the business from the current board. The two firms will, however, operate as independent firms. RSM Ireland will now look to create at least 200 jobs in the next three years under the leadership of Niall May, who becomes the new managing partner in January. RSM Ireland began as a start-up in 1987 and it is now one of the top 10 and fastestgrowing accountancy firms in Ireland.

Study reveals the best companies to work for in the UK, according to employee reviews

A new study has revealed that Google is the best company to work for in the UK, according to employee reviews. Employee engagement experts Weekly10 analysed online Glassdoor reviews for 1,090 companies with employees in the UK, to determine which are the best places to work. Companies with more than 1,000 reviews, 20 salaries and five job openings were included in the research. The analysis took user ratings for several different categories, which were then weighted and added together to create an

In brief KAREN’S RESPONSE The benefits of being able to manage your time well are incredibly farreaching, but it’s not a skill that can be acquired overnight. It’s important to develop a range of time management techniques to help you cope under the pressure of juggling your professional and academic responsibilities, and to enhance your career in the long run. Learn to identify your main priorities and constantly reassess these, including any work deadlines and exams approaching. If your priorities are always on your radar, you allow yourself to plan your time and to avoid facing the last-minute stress of racing against the clock. It can be useful to create weekly or monthly timetables and to allocate colour-coded blocks of time to work and study, which will also help you to see if you’re balancing your time effectively. Be willing to trial different time management techniques and reflect on which work best for you. For example, if setting aside two hours to revise for a particular module on a Friday wasn’t effective, try splitting this into half-hour blocks spread across the course of the week. The saying “if you want something done, ask a busy person” goes some way in showing that getting things done is about learning to utilise the time you have, which certainly takes a wealth of tools, practice and experience.. • Karen Young is a director at Hays. She is passionate about helping people to find the right job and companies the right person PQ Magazine January 2024

Students struggling to get work experience London students are struggling to get office work experience because so many people are working from home, says the principal of the Capital City College Group, Kurt Hintz. He told the Evening Standard newspaper that work experience placements are vital for young people’s job prospects, but these placements have become more difficult to find. Hintz explained: “For some years Covid was a problem in arranging work experience. Now we find one of the things that inhibits it is working from home.” With WFH not going away the worry is that many students without ‘connections’ are not going to be able to add to their CV.

The PQ Book Club: books you should read Becoming a strategic business leader: The ultimate all-in-one guide by Adam Niazi (£11.99) Adam Niazi is a chartered certified accountant (FCCA) with many years of consulting experience in the financial services industry. His great pocket-sized book covers everything from the nuts and bolts of strategic planning to the nuances of governance. Along the way he covers eMarketing, project management and even ethics. There are 19 chapters in all and Niazi starts at the beginning with strategic planning and analysis, so you can’t get away from SWOT analysis, Porter’s

Diamond and, of course, Five Forces. We also liked the way Naizi used practical examples – such as AI enhancing fraud detection to predict and identify fraudulent activities more effectively. He said AI can also facilitate access to unstructured data, such as contacts and emails, analysis and insights that were previously challenging to obtain. When it comes to ethics, Niazi rightly points out some of the drawbacks to a Code of Ethics. There is often a lack of clear and effective punishment for code breaches, and as with any code there can be

an element of subjectivity in interpretation. Throw in technology and you get another layer on top to worry about. PQ rating 4/5 This is a neat little 160-page tome that has all the stuff you expect on becoming a strategic business leader, but it also embraces the growth of AI in our lives. In fact, Niazi admits he even used AI to help craft this book! However, he warns that using AI means inaccuracies can sneak in. 37

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

Accountants in films

I want to be free!

How free do you feel? Well, if you live in the UK then you are lucky, as according to the Fraser Institute you are in the ‘most free’ category when it comes to economic freedom. The Fraser Institute stresses that the cornerstones of economic freedom are personal choice, voluntary exchange, freedom to enter the markets and compete, and security of personal and private property. Perhaps not surprising for the latest freedom league table, Hong Kong slipped from its top position. As Hong Kong freedoms declined so Signapore’s (pictured) increased, and it has taken the top spot. The next highest scoring nations are Switzerland, New Zealand, the US, Ireland, Denmark, Australia and the UK. Interestingly, Germany rank just 23rd, France 47th, India 87th, Russia 104th and China 111th. The 10 lowest-rate countries include Iran, Syrian, Zimbabwe and Argentina.

Who doesn’t love an accountancy film? There is of course Christian Wolff (Ben Affleck), who played the hero in The Accountant. Did you know that The Accountant 2 is coming? The problem is current predictions are that it won’t be released until 2025. If you can’t wait that long we have a suggestion. PQ magazine was recently flicking through the channels and stopped on Christmas24. Up came The New Year’s Kiss (a 2019 film), and who was the love interest? Well, none other than Chris the accountant. In fact, it is Chris the singing accountant. We don’t want to spoil it for you but with the help of Santa he finds the woman of his dreams. It even means he turns down being a tax partner and moving to California – but hey, that’s love for you!

Eager beavers

Almost 250,000 Self Assessment customers filed their 2022 to 2023 tax return during the first week of the tax year, HMRC has revealed. The number of taxpayers choosing to file on the actual first day (6 April) has increased in recent years. Those opting to file in the first week of the new tax year has also increased by nearly 100,000 taxpayers since 2018. The data, which examined the number of people who filed between 6 and 12 April, also revealed the most popular day to file a tax return during that week was 6 April, and that Self Assessment taxpayers enjoy a day of rest, with the Sunday being the least popular day to file!

New ICAS logo anyone? Did you know that ICAS changed its logo in 2023? Well, it seems to have passed everyone by… and that may be because the old logo is still around. ICAS acknowledged that over the next year it would be replacing the old logo ‘wherever it appears’. It will be interesting to see how long this one lasts, as the old logo was launched as recently as June 2020. At the time ICAS said the logo is not just a means of recognising the organisation or your qualification – it is an important part of ICAS’ history. Well, it couldn’t have been that important – we have a new one three years later!

One to watch on catch-up: Payback

ITV’s new crime thriller series Payback starts off with accountancy husband-and-wife team Lexie and Jared Noble, and their picture-perfect life. But one of them, at least, is up to their neck in dodgy business. We see something you don’t see very often on a TV drama –inside a chartered accountancy practice! And while lots of the reviewers weren’t happy with all the ‘difficult-to-get financial stuff’, if you stay with it it does become a riveting thriller with a proper climax. As Max says in ‘The Producers’ film of 1967: “Accountancy must be a noble profession as they have ‘Count’ in their name!”

’ WEV E

GOT THE L OT

Amazing animals We have three copies of Amazing Animals up for grabs this month. The wonderful and relaxing animal designs in this book will allow you to leave behind the chaos in your life and plunge yourself into a land of peace and relaxation. All the illustrations are drawn by hand and the models are real animals. To win one of these books send an email headed ‘Amazing Animals’ to giveaways@pqmagazine.com along with your name and address, and we will put you into the draw.

Stay Calm This month we are giving away three copies of the colouring book Calm. It has 31 colouring pages to enjoy, all in large print. This is a perfect colouring book for adults of all ages, where nature comes to the fore. There is one illustration per page, so the ink doesn’t seep through onto other illustrations – which can be a real bugbear for those who love to relax this way. To be in with a chance of winning one of these fab books simply email us at giveaways@pqmagazine. com with your name and address and we will put you in the hat to win this prize. Head up your email ‘Calm’.

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 19 January 2024. The main draw will take place on Monday 22 January 2024.

TO ENTER THESE GIVEAWAYS EMAIL GIVEAWAYS@PQMAGAZINE.COM 38

PQ Magazine January 2024

PQ magazine, January 2024

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