PQ magazine, January 2019

PQ magazine www.pqmagazine.com / www.pqjobs.co.uk

January 2019

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‘WATCHDOG IS LIVING ON BORROWED TIME’ The Financial Reporting Council (FRC) has outlived its usefulness and needs to be scrapped, according to Professor Prem Sikka.

Sikka, a star turn at our recent joint conference at London South Bank University, said the regulator had become “a cheerleader for the profession”, and in a post-Carillion world was totally compromised. In his view it can’t be rescued as there are too many fault lines.

Sikka felt that the FRC is still dominated by big corporations and auditing firms and is, worringly, funded by the same people. Where, he asked, was its independence, a pre-requisite for good corporate governance?

The watchdog also takes too long to complete its investigations. “It takes years and years to get anything done,” he said. He felt some investigations were merely started to appease public opinion and are then simply abandoned.

Sikka pointed to the fact that he is not alone in his condemnation, either. The FRC has been

“

FRC has become a cheerleader for the profession Professor Sikka

described as “fatally flawed” and “toothless” by others.

He said the FRC has never been able to make up its mind about whether it was a public or private

body. And Sikka emphasised that it was not open to effective scrutiny.

When he asked how many complaints it had received about audits, and how many had been

rejected, the FRC did not respond.

It was only after these questions were raised in the House of Commons that he got some of this information.

He also castigated accountancy educators who were “churning out obedient robots” not ready to question how the watchdog works or how audits are undertaken.

He stressed that if people want to see a change to auditing in the UK then the FRC has to go in its current form. Sikka is, of course, leading a major review of the accountancy profession for the shadow government, and his proposals for an alternative should be published very soon.

Leading commentator on the accountancy industry Robert Bruce felt the FRC has been dealt a poor hand. While the Financial Conduct Authority (FCA) has 300 enforcement staff the FRC has just 30. It is under-resourced and has no statutory powers.

Bruce, on the same platform as Sikka, pointed to the fact that Continued on page 6

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comment PQ

CONTENTS News 06ACCA exam Put your ear

plugs in – it’s feedback time!

08ACCA study Public sector praised for its inclusivity

10Audit survey What the public

really thinks of British auditors Features, etc 04Mind your Ps&Qs Generation Z and their aspirations; a pat on the back for EY; and the best of social media 12Payroll Why not add another qualification to your CV? 13ACCA EPS How the ethics module is shaping up 15 months after its introduction

14PQ resources We visited the

IFRS Foundation, home to a great range of resources for PQs

15CIPFA spotlight Why we need more women in the top jobs

17PQ awards With the deadline

looming now’s the time to enter

19Annual Bumper Quiz Test

January 2019 25ACCA SBL exam It’s time you

built up your ‘exam stamina’!

26Conference report The opening presentation from our ‘Dark Side’ one-day event 28Your career Coaching could be key to your success 29Careers Life at Danone; and our Book Club review 30Fun stuff – and our giveaways The columnists Robert Bruce Some accountancy mergers are made in hell 6 Prem Sikka CEO should be reined in – but don’t hold your breath 8 Zoe Robinson Why technology is not the be-all and end-all 10 Subscribe to PQ magazine It’s FREE – see page 18 or go to www.pqmagazine.com ABC July 2017 – June 2018

31,954

yourself – and win a fab prize

20CIMA OTs Conquering the

objective test challenge; and ICAEW’s advice on calculators

22Agony Aunt Helping you

towards a successful new year

23Interview ACCA’s Catherine Edwards on SBL and SBR

24ACCA P7 Tackling Question 1 without running out of time

Publisher’s statement: We send a digital issue of the magazine to an additional 7,192 requested readers Free to subscribers who fulfil our terms of control Annual subscription: £35 (£50 overseas)

Another year beckons…

So that’s another year nearly done. I hope we have helped all you PQs out there to move a step closer to becoming NQs! It is, of course, the season of goodwill and the top four accountancy bodies (AAT, ACCA, CIPFA and ICAEW) have all come together to sponsor our prizes for the annual bumper quiz. With five Urbanears wireless headphones up for grabs it really is worth giving it a go. I would also like to thank all the accountancy bodies for their help in making PQ the ‘must read’ magazine for all part qualified accountants. Most understand that we won’t be nice to them all the time, but they also know they can speak to their stakeholders through our pages and online/social media presence.

Conference call A big thank-you also goes out to all the people who made our ‘Dark Side of Accounting’ conference with LSBU such an unprecedented success. One PQ really did tell me it was the best conference they had ever been to. I must admit I did tell them that they needed to get out more, but in truth it was a top-drawer event. We aren’t stopping there.

We have a ‘Careers In Accountancy’ conference planned for 23 January 2019. We have lined up some top recruitment consultants and lots of ‘real life’ AAT and ACCA PQs who will give a unique insight to what a day in the life of an accountant really looks like (see page 27). You can book a place at https://careers-in-accountancy.eventbrite.co.uk.

Where’s your nomination?

Finally, I wanted to remind you that we have extended the deadline for our awards nominations to 11 January. Download the nomination form at www.pqmagazine.com by clicking on the ‘pq awards’ bar on the home page. What’s to lose?

Have a great Christmas and we will see you all in 2019!

Graham Hambly, PQ magazine editor (graham@pqaccountant.com)

derby.ac.uk/ACCA

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PQ email graham@pqaccountant.com

HAVE YOUR SAY Generation gap I was interested to read your front page story headlined ‘All Generation Z wants is stability’ (PQ, December ’18). So these upcoming young accountants want a stable career and job security – surely the motivation for many a previous generation, too.

I’m a so-called ‘millennial’ – although I hate these pigeonhole categories – and I was attracted to accountancy for precisely those reasons, not the “desire to live the dream at any cost”, as you state in your article. You make us ‘millennials’ sound like some wild rock and rollers!

How much

stability there will be in our chosen career path remains to be seen, of course. The report states that

accountancy is one of the top three professions with the greatest potential for growth through new technologies. Surely some of those developments will mean a reduction in the number of jobs available? And just exactly how many strategic-thinking accountants does the world need?

According to your story, Generation Z’ers put ‘driving business strategy’ very low on their list of priorities when it comes to their work, so there seems to be some contradiction there.

Name and address supplied The editor says: Just to be clear, all the quotes and statistics were taken from the IFAC report – their words, not ours.

Our star letter writer wins a fantastic PQ mug!

Well done, EY It’s good to hear that EY is ditching the final interview – and not just because I personally hate them! I hope everyone else follows suit.

There’s nothing more nervewracking in my view, and I know I’ve messed up a couple of really good opportunities because my nerves got the better of me at the final hurdle – jobs that were well within my capabilities.

I’ve always felt the final interview favours the more confident among us – but just because you’re confident at interview doesn’t mean you’re the best person for the job.

Well done to the firm, too, for cutting the process of application to offer down to just five weeks. I’m sure EY will reap the benefits of such forward-thinking.

Peter Norman, by email

I need pqjobs.co.uk

A backwards step While I don’t always agree with your columnist Robert Bruce, he’s always got something interesting and thought-provoking to say. But I had to applaud his latest article, lambasting the “old farts” at Grant Thornton for their role in the female CEO’s departure from her job (PQ, December ’18). It seems incredible that in 2018, as Robert says, “women are not part of the plan”.

So much for equality in the workplace!

J Simms (female), by email

A great event I’d like to say a big thank-you to London South Bank uni and PQ for putting on a great one-day

conference recently. The quality of the speakers was first-class, the topics relevant and interesting – it was a day well spent. My only beef was that with three sessions running at the same time I couldn’t get to see everything I wanted to.

Name and address supplied

social media ROUND-UP This month we tweeted a popular story from the magazine: “How many calculators do you take to your exam desk? Well, top tutor Paul Kirkwood says it should be two!” It really got you talking.

Daniel Addison said: “To my desk I take one. But in my bag I have an extra three.” Geoff Chapman was not impressed. He pointed out: “On-screen exams? Answer should be zero.” But Mike Webster replied: “At least two and they should be the same model.”

On Facebook Tahsin Chowdhury explained: “I carry two because if any one of them fails…” Sue Willis follows Paul’s advice: “Two, one scientific and the other a basic one with big keys.” For Tzoes Nzima it’s also two, as “I once experienced a situation where a day before the exam my calculator ran out of battery and that was too close a call.”

There were some wonderful exchanges on the UK (only) ACCA distance learning students Facebook group this month. Amie posted: “First ACCA exam in less than 2 weeks and I feel utterly deflated with it all! How do people do it? AAT was a walk in the park compared to this! Anyone out there with 2 kids who both have hectic after-school schedules, working full time and keeping on top of the housework?

Want to share how you revise? I feel like it’s barely sinking in and I’m only just scrapping passes in assignments.” The support that came back was fantastic.

Veronica explained she has three jobs but sometimes leaves an hour early from work so she can sit and study in her car. Ruth admitted to “watching revision sessions online and just falling asleep. I’m so tired.” Sarah’s top tip was to hire a cleaner, if you can afford to, as something has to give. And Kate? Well, she revises before the kids get up. Paul does the same. He’s up at 5 o’clock so he can get in 45 mins before his daughter is wide awake!

PQ Magazine Unit 3a, Kingfisher Heights, 2 Bramwell Way, Royal Docks, London E16 2GQ | Phone: 020 7216 6444 | Email: graham@pqaccountant.com Website: www.pqmagazine.com | Editor/publisher: Graham Hambly graham@pqaccountant.com | Associate editor: Adam Riches | Art editor: Tim Parker | | Subscriptions: dom@pqaccountant.com | Contributors: Robert Bruce, Prem Sikka, Zoe Robinson, Tony Kelly, Phil Gammon, Edward Netherton | Origination and print services by Classified Central Media If you have any problems with delivery, or if you want to change your delivery address, please email dom@pqaccountant.com

Published by PQ Publishing © PQ Publishing 2018

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PQ news

ROBERT BRUCE Mergers made in hell

It always amazes me. Accounting firms are, they like to tell their clients, the best advisors around. Then they start merging with each other. I suppose it is proof that all those ‘Chinese walls’ do work.

All the figures show that the percentage of mergers or takeovers that work – ‘create value’ – are tiny.

Yet here they are again suggesting that mergers of accounting firms will somehow help the competitive nature of the market. They could look at the history of their own profession. The great merger of Price Waterhouse and Coopers & Lybrand is a case in point.

It is the behemoth PwC now. But when the partners put the two together originally they lost their bottle. No one ruthlessly eradicated the redundant senior chieftains. They appointed two of each, and it was bloody for years before anyone got a grip and shoved people out of the firm.

In the end, accounting firms had no better clue about trying to make two merged firms into more than the sum of their parts. And so it goes on and on, to this day.

I can recall the senior partner of Ernst & Whinney desperately spinning a globe round for the benefit of photographers when they intended getting together with Arthur Young to create what is now EY. The amount of effort and hours of work it took over the years to turn the merged outfits into reasonably effective global businesses has been extraordinary.

And now the politicians and pundits want them to put the process into reverse. What wasted years!

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

Can you keep the noise down please!

Ear plugs will be on most ACCA exam sitters’ Christmas present lists following more complaints about loud keyboards.

Many of those sitting CBEs for the first time in December were shocked how ‘very off-putting’ the sound of typing can be. One sitter said they had to “read the scenario three times due to the volume of typing from the person next to me. Not a fan!”

Another PQ wondered: “There are soundless keyboards on the market. The ACCA needs to use those.” A quick look online by PQ discovered there are noise reducing keyboards, but there aren’t any soundless ones – sorry!

Many PQs’ heads were still spinning after sitting the Audit and Assurance (AA) ‘test’. Part A was

deemed difficult when compared with past papers, and many admitted to spending too long on it. The general consensus on the Open Tuition noticeboard was: “Section A was tough and my section B had a lot of substantive procedures.”

While the Advanced Auditing and Assurance (AAA) exams was deemed a ‘do-able paper’, sticking to timings was still key. APM was also said to be a ‘fair’ paper.

Interestingly, quite a few PQs said that four hours for the SBL exam still wasn’t enough time to give the case study a proper read. One sitter tweeted us: “It was a very time pressured exam and just like me many fellow students didn’t finish in the allotted time.”

Raising brand awareness at CIMA CIMA recently launched a new advertising campaign to increase brand recognition with employers, wider business and industry. It believes the ‘Beyond Numbers’ campaign reflects its future in finance and the growing role management accountants play in creating value for their organisation in today’s digital world. It also paves the way for celebrations in 2019, when CIMA marks its 100th anniversary.

The campaign literally kicked off at the Wales v Scotland rugby

international and featured on billboard advertisements in Leeds, Birmingham, Manchester and London.

CIMA is encouraging members

‘Watchdog on borrowed time’

Continued from page 1 corporate governance was taken extremely seriously in the UK and the FRC was leading the way on this.

Bruce also felt that auditors have become the fall guys when things go wrong. For him, not enough is being done to punish company directors. He stressed: “Shooting the messenger doesn’t create change, we need to change culture.” For him it was time to

focus more intently on companies and the role of these badly behaving company directors.

Remember, they sign off the accounts as fair, balanced and understandable, he said.

Bruce wasn’t convinced about following the French two–auditor approach for top companies, either.

That just brings about even more conflict.

• Read more from the ‘Dark Side of Accounting’ conference, page 26.

and students to share the advertisements across social media. Details about the campaign can be found at cimaglobal.com/ beyondnumbers PQ highlighted the threat to the FRC after the collapses of BHS and Carillion in our May issue. We pointed out that the Local Authority Pension Fund Forum (LAPFF), an influential pension body, had called on the FRC to be put into special measures. It suggested that commissioners should be put in place until a fully independent agency can replace it. The LAPFF went on to claim that the regulator was too cosy with the Big 4 and the CBI.

In brief Careers in Accountancy PQ magazine has joined forces with LSBF to offer a unique insight into the working world of part qualified accountants. Working with both AAT and ACCA, our halfday careers conference will lift the lid off what a day in the life of a PQ looks like. We will be looking at the rise and rise of apprenticeships and the current state of the marketplace with experts from Hays and Pro-recruitment. See page 27 for how to sign up for this free event.

6

Women do better Getting a degree gives women a bigger salary boost than men, says new research from the Institute of Fiscal Studies. In fact, women with degrees earn £6,700 more by the age of 29 than their peers without one. This 28% premium outstrips the 8% (£2,700) bonus male graduates can expect.

• More career news, page 29.

KPMG to donate fees The South African branch of

KPMG has said it will ‘redistribute’ the fees it earned from the country’s scandal-hit Gupta family.

Some £2.7m will be given to civil society organisations that promote ethical leadership and good governance, along with some notfor-profit educational charities.

KPMG’s Wiseman Nkuhlu said: “The funding is an important step in ensuring redress for the actions of the past.”

New global proposals Accountancy syllabuses need

to beef up their professional scepticism and IT content, say the International Federation of Accountants. It believes technology advances across the financial reporting supply chain are impacting the ICT and professional scepticism competencies, and hence the skills and behaviours needed by aspiring and professional accountants to do their roles. It is now planning to change its International Education Standards (yes, they do exist) to address these shortcomings.

PQ Magazine January 2019

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PQ news

PREM SIKKA CEO pay should be reined in – but don’t bet on it Just how much should company chief executives be paid, and can society do anything about it? The debate is reignited as the CEO of Bet365 collected £220m in remuneration and another £45m in dividends. The government policy of leaving it to shareholders would not have made any difference as the CEO holds 50% of the shares in the family-run company.

If companies are awash with cash they could increase wages and/or make additional payments into employee pension schemes, but that did not happen at Bet365. Over two million people are addicted to gambling. Some 450,000 children aged 11-16 bet regularly. Bet365 is a beneficiary of the addiction and could have used its resources to help individuals and families, but has not done so. Whatever happened to corporate social responsibility?

The pay at the top is indicative of inequalities that have consequences for access to education, healthcare, housing, food, pensions, security, life expectancy and social stability. A fairer distribution of income is also a necessary condition for a thriving economy, as without purchasing power people cannot buy the goods and services produced by businesses.

Leaving it to shareholders will not deliver equitable distribution of income. The government has to intervene. One possibility is to deny tax relief in corporate tax computation to executive pay of more than say £1m per executive. This does not limit the amount of executive pay but penalises firms for contributing to inequalities.

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

Public sector ‘inclusive’ Finance professionals working in the public sector are more likely to come from disadvantaged backgrounds, says a new study from ACCA. ‘Purpose and the Profession: Social Mobility and the Public Sector’ discovered accountants in the public sector had parents who had typically lower educational attainment and did not work as professionals or managers. In all, some 80% of the public finance professionals questioned hailed from comparatively disadvantaged

pursue their ACCA qualification aged between 18 and 22.

ACCA vice present and CEO of St Elizabeth Hospice, Mark Millar, says he has worked exclusively in the public sector. He said: “Coming from a blue collar rather than white collar/professional family I studied, qualified and spent a career working in the public sector. In my case I joined from school aged 18.

“My own observation is that many who join the public sector do so with a sense of service for their community. And in many cases it is not until they have been there some years that they see the possibilities for advancement that come with a professional qualification.”

BDO merges with Moore Stephens After four months of discussion BDO has announced it is merging with smaller rival Moore Stephens in a move that would make the combined firm the UK’s fifth biggest in terms of total revenues.

The merger will see BDO leapfrog Grant Thornton, with a new combined revenue of £560m, 264 partners and 5,000 staff.

BDO’s Paul England will lead the

combined firm and he said: “We are not chasing the Big 4 and don’t want to become a version of those businesses.”

PQ magazine columnist Professor Prem Sikka said that the merged entity is just 39% the size of KPMG. He is quoted as saying:

“Even if all of the firms ranked fifth to tenth were to merge they would still be smaller than the smallest Big 4 firm, and won’t be able to wrestle significant portions of the market from them.”

The question now is whether this is the start of more deals among the mid-tier accountancy firms.

Trainee guilty of £30,000 VAT fraud Blackburn-based trainee accountant Keiron Edmondson received a suspended sentence at Preston Crown Court recently after he pleaded guilty to creating fake invoices to fraudulently reclaim VAT. An HMRC investigation found Edmondson had submitted 12 phoney invoices from his company Block Toy Store to his wife’s business, Cakealicious Cakes, for non-existent work.

Lloyds wants Deloitte After 153 years Lloyds Banking Group decided it was time for a change of auditor. That’s how long PwC (in its various guises) had been the auditors. Now, after a formal review, the group is proposing to replace PwC with Deloitte. Lloyds confirmed the move in a stock market statement, and the move will take place in 2021 after a shareholder vote if all goes well.

The end of non-audit add-ons?

Two of the Big 4 look set to agree to put a self8

backgrounds.

ACCA’s Alex Metcalfe said: “These results suggest that, globally, the public sector function is providing a more effective route into the profession for those from comparatively lower social-economic backgrounds.”

Those working in the public sector also start their qualification later – when they are 26 or older. This compares with respondents in non-public sector roles who are much more likely to

The PQ then reclaimed £30,952 VAT through his wife’s business.

In order to cause confusion the court was told Edmondson then transferred the stolen money between his and his wife’s account on ‘multiple occasions’.

HMRC’s Tim Atkins said: “Edmondson abused his financial knowledge, his employer’s trust and the public purse. He cooked up a batch of fake invoices to steal…

imposed ban on selling extra services to their audit clients. KPMG and Deloitte have backed the idea of stopping non-audit work for FTSE 350 clients if they are already auditing them. A KPMG memo from chairman Bill Michael told partners this would “remove even the perception of a possible conflict” of interest. If KPMG phases out all but essential non-audit services for the 90 firms it audits this will put pressure on the other firms to follow suit. Sources close to Deloitte say it has had similar discussions at senior levels. The moves

and now has a criminal record to show for his greed.”

Edmondson admitted VAT fraud and money laundering and was sentenced to 12 months for the VAT offences and eight months for money laundering. Both were suspended for 18 months. He must also complete 200 hours of unpaid community work in the next 12 months. Proceedings have started to reclaim the stolen money.

are in response to the Competition and Markets Authority review, which is looking at whether the sector is competitive and resilient enough.

It’s on the website In a move that it hopes will encourage greater transparency PwC has published its parental leave pay policies on its website. This is the latest move by PwC to try to ensure its culture is as inclusive as possible and shows opportunities are open to all. The firm said that shared parental leave polices, for example, will only have an impact if more fathers feel comfortable using the policies in place. Current statistics show that over 300 of its dads have taken shared parental leave since the policy was introduced in 2015.

PQ Magazine January 2019

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PQ news

ZOE ROBINSON Technology is not the be-all and end-all in education On the evening of 21 November, the great and the good gathered at the Learning Technology Awards to celebrate the success of those using technology to improve learning.

As Kaplan had been shortlisted for our OnDemand course – in the Best Online Distance Learning Programme category – I had the privilege of attending. What I found inspiring was the variety of companies involved and the energy and level of investment now in this sector. It’s worth adding that this was not an accountancy event; a multitude of industry sectors were represented, ranging from retail to wind-farms.

Most were large companies who see these new technologies as essential in helping grow their talent pool. The awards categories give some idea as to what is considered important and potentially exciting new areas. They included best use of: social and collaborative learning technologies; simulations or virtual environments; and blended learning.

Others included the best learning game and best use of mobile learning.

At an event like this it’s easy to come away feeling as if a new world is upon us, and that much of what we have been doing before needs to change. But there is a fundamental here: technology is ultimately only a tool. Learning is a human experience that requires students to be engaged, inspired and motivated. When lauding the technological achievements in learning it’s important the bright lights of the ‘Oscars’ don’t blind us to what we are actually trying to achieve.

Zoe Robinson is Learning and Programmes Director at Kaplan Financial

Closing the expectation gap Auditors beware: a new poll from ACCA shows 48% of the UK public believe it is the job of auditors to ensure companies don’t fail. The same poll discovered that 41% of these same people expect auditors to always detect and report any fraud.

The current state of audit was also questioned, with 65% of those surveyed agreeing that audit needs to evolve to prevent company failures.

The problem is that only a quarter of respondents were able to accurately identify what an auditor does – give an opinion on whether the financial statements of a company give a true and fair view and do not include material misstatements due to fraud or error.

This all comes as Sir John Kingman is reviewing both the role and remit of the regulator, the FRC.

The Competition and Markets Authority (CMA) is also probing the audit sector, and on 12 November the Business, Energy and Industrial Strategy Select Committee also announced an inquiry into the future of audit.

ACCA’s Andrew Gambier said the profession has long talked of the

expectation gap in audit, and this research shows it has failed to close this gap.

ACCA wants to see a two-year cooling off period for auditors, following the end of an audit before any further form of consulting service is undertaken.

Tax scam targets university students

HMRC is warning university students that scammers are heavily targeting them to steal their money and personal details with the promise of a tax refund.

The scammers are using seemingly legitimate university email addresses (eg ‘@uc.ac.uk’) in order to avoid detection. The taxman said that it has received thousands of fraud reports in just a few weeks from students at colleges across the UK. This is the first

time HMRC has seen a tax scam attack directly targeting university students in such high volume.

Financial Secretary to the Treasury Mel Stride said: “HMRC will never inform you about tax refunds by email, text or voicemail. If you receive one of these messages it is a scam. Do not click on any links in these messages, and forward them to HMRC’s phishing email address.”

Haddrill to quit in 2019 Stephen Haddrill (pictured) has informed the board of the Financial Reporting Council (FRC) that he intends to step down from his role as CEO of the FRC in late 2019, putting an end to speculation about his future.

The exact date of his departure will depend on a number of factors, including the outcome of Sir John

Kingsman’s review of the FRC, the search for a successor, and any agreed transition period associated with that appointment.

Haddrill said: “I am incredibly proud to have led the FRC for

The teaching team include a PQ magazine Tutor of the Year, Joe Adomako, and Sara Abdaless and Ivor Pingue.

business before chairman Luke Johnson pumped in £20m to save it. Parent company Patisserie Holdings has begun hunting for a new auditor to replace Grant Thornton.

nearly nine years, However, I believe that it should be the job of a new CEO to lead the FRC when the way ahead is decided.

“In the meantime I remain fully committed to taking forward the FRC’s important programmes on audit reform, investor stewardship, corporate reporting and preparing the FRC for European Union exit.”

In brief SBR and SBL revision LSBU’s top team of tutors are offering ACCA exam revision sessions for the SBR and SBL exams. Their 10-week revision courses started on 3 December, but there is still time to sign up for the weekend revision phase. SBR revision classes will run from 10am to 5pm on Saturday 23 February and 2 March. Those sitting SBL can book revision classes on Sunday 24 February and 3 March.For more details simply email accalearning@lsbu.ac.uk.

10

Grant Thornton scrutiny Patisserie Valerie’s auditor, Grant Thornton, is to be investigated by the FRC. The watchdog will look at the chain’s financial statements for 2015, 2016 and 2017. Ex-finance chief Chris Marsh is also being investigated. The company was just three hours from going out of

Bring your own In direct response to student feedback the ICAEW is updating its calculator policy. From 1 January, PQs will need to take their own calculators to the exam. The institute has published a full list of ‘allowed’ models. An online

calculator is also available. Check out the list on page 20.

PQ shortlisted for award PQ magazine was nominated for a LUCA award recently – we made it to the shortlist in the ‘Bookkeeping Media Source of the Year’ category. The awards, which took place on 26 November, are always a glam affair. Unfortunately we lost out, but still have good memories of picking up the Best Use of Social Media award last time out.

PQ Magazine January 2019

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PQ payroll

Add another string to your bow with payroll expertise The ICB’s Garry Carter outlines the importance of payroll for sound financial management

P

ayroll is an important element of financial management. Accounting students often forget the importance of payroll and, far too often, fail to see it as a career in its own right.

Payroll isn’t just a calculation based on a predetermined tax code. It’s far more personal than that, and increasingly encompasses human resources and employment law. Payroll management, as an extension of bookkeeping, demands the same high level of detail and accuracy.

Getting paid on time and accurately might be motivation in itself, but employees now want more from their payslip. They know their top line salary, but leave it up to their payroll manager to ensure that their deductions are correct. They don’t always appreciate how they fit into the ‘bigger picture’, but recent revelations at the BBC and other larger employers has highlighted the previously unseen differences between pay and benefit scales. New legislation being introduced will make compulsory the release of

figures to show comparisons between people doing the same job, whether in terms of gender, ethnicity or seniority, bringing new focus to the payroll function. Although currently targeted at larger firms, it is highly likely that the focus will move further down the list of companies until everyone is covered. This demands new levels of professionalism from those Garry Carter who manage payrolls.

Wages clerks are a thing of the past. Step up the certified payroll manager.

So why is it that so many professional bodies shy away from offering a stand-alone payroll qualification? I believe this is partly down to the annual changes that invariably take place each financial year in the Budget and Finance Act. Trainers struggle to keep up, particularly as most changes happen halfway through the traditional academic year.

Rewriting training materials is costly and time consuming and having to change tuition halfway through a course of study can be problematical, not least for the tutor. But times are changing.

With the advent of cloud technology and online e-learning, training has the means to be more

up-to-date, more flexible and more relevant.

In recent years we’ve seen the introduction of new rules on maternity and paternity leave and paid absence for a range of other personal reasons; extended working lives; the disappearance of the expected job-for-life; zero hours contracts; real-time information; and auto enrolment pensions. So many changes that demand increased knowledge, but which make payroll a dynamic and exciting career opportunity. Add to this the influence of GDPR and the emergence of online payslips and the enhanced compliance element of payroll, and you will see why some see this as the career of choice.

Payroll is an integral constituent of sound financial management.

Even if your end goal is to be a qualified bookkeeper or accountant, payroll is a worthy additional string to add to your bow. The future for whole swathes of the profession is up for debate, but one thing has never been in doubt: the more you know, the more employable you are. So when everyone else comes out at the end with the same qualification, those who have taken the initiative and added further certificates and qualifications to their CV are more likely to be offered the opportunity. PQ • Garry Carter is President and co-founder of the Institute of Certified Bookkeepers

We hope you enjoyed your festive break and have come back recharged for 2019 The role of the professional accountant is becoming more important than ever.

That’s why we’re evolving the ACCA Qualification to keep it current and maximise your employability to give you the professional edge in a changing world.

Key changes include: Session CBEs Available now Ethics and Professional Skills module Available now Strategic Professional Available now

Find out what this means for you: accaglobal.com/examchanges

12

PQ Magazine January 2019

EPS module PQ

An ethical success Gareth Owen charts the progress of and reaction to the EPSM module, which was introduced by the association 15 months ago

M

ore than a year on from its introduction, ACCA’s Ethics and Professional Skills module (EPSM) has been proving its worth for students, members and affiliates globally.

Out went the Professional Ethics Module (PEM) and in came EPSM, back in October 2017. Its main aim is to provide students with a full spectrum of advanced ethical and professional skills employers need from their accountants, set in realistic business situations.

An online pass or fail module taking an estimated 20 hours to complete, EPSM comprises seven units and has been made available to affiliates and members in a bid to supplement their knowledge, and as a means for members to meet their CPD obligations. It is also been designed to harness candidates with skills for ACCA’s strategic professional exams (SPE).

To measure its impact, let’s start by looking at those who recently sat their SPEs. More specifically how it affected the results of another ACCA newcomer – Strategic Business Leader (SBL). This replaced the P1 and P3 exams in September 2018.

Of those who had successfully completed EPSM before attempting SBL in September, 73% of these were successful. Overall, SBL achieved a 45% global pass rate.

A January survey of more than 270 people around the world who had completed the EPSM module within three months revealed a strong response. It showed 76% of students, 78% of affiliates and 82% of members surveyed found

the module to be either good or very good.

When asked how EPSM compares with its predecessor PEM, 78% of students, 82% of affiliates and 76% of members reported it to be an improvement. The survey also set out to explore whether it enhanced the ACCA qualification, 76% of students, 87% of affiliates and 89% of members found this to be the case.

Delighted with success We at ACCA are delighted that EPSM has been such a success and that it has been received so well by those students and members who have accessed it since its launch last year and to hear how it has further enhanced and improved the ACCA qualification.

It is also encouraging to report that those who had completed the module before taking the SBL examination had such a high pass rate in the first SBL examination, but it is worth emphasising that by taking EPSM before

attempting any examination at Strategic Professional, students should perform better in all these exams, not just SBL. While we are happy with progress so far, an innovative product can soon become obsolete unless it is continuously reviewed, enhanced and developed.

We are currently working on this so that EPSM retains its relevance as a key element of the ACCA qualification.

So what’s next for the module? As with any great innovation, ACCA needs to keep EPSM at the forefront in professional accounting education, so we are planning to enhance and improve the content by bringing in new and emerging areas into the module. We will continue to do this periodically so that EPSM remains relevant for all our future students and members. PQ • Gareth Owen is ACCA’s Qualification Development Manager

THE UNITS EXPLAINED… UNIT 1: ETHICS AND PROFESSIONALISM – The learner is faced with a situation where they are expected to identify ethical dilemmas and take ethical decisions.

UNIT 2: PERSONAL EFFECTIVENESS – The learner is faced with a challenging task with insufficient resources and a tight deadline and has to develop tactics and strategies to ensure that the task can be completed.

UNIT 3: INNOVATION AND SCEPTICISM – The learner is presented with a situation where there are clues or evidence of control weakness or other business risks such as potential internet fraud or cyber crime, where the learner has to identify what these are and offer innovative solutions to rectify the weakness or to help detect and prevent the situation being repeated.

PQ Magazine January 2019

UNIT 4: COMMERCIAL AWARENESS – The learner is presented with a large and diverse amount of data/information and must decide which data to use, how to analyse and evaluate it to make a recommendation to senior management.

UNIT 5: LEADERSHIP AND TEAM WORKING – The learner is a leader who is trying to manage a diverse group of individuals to achieve a task within a team and the learner must identify the type of manager they are and the style they are adopting and the potential issues with their approach to achieving the task. The tasks will involve tracking the progress of the leader in making and communicating decisions to the team and advising on whether the decisions and behaviour adopted were appropriate at each stage.

UNIT 6: COMMUNICATION AND INTERPERSONAL SKILLS – The learner has to coordinate a specific task with several colleagues with different skills, where there are resource and personality issues and where potential conflicts exist. The team must be persuaded to achieve the objectives using a suitable approach, or in such a way as to motivate the individuals to successfully achieve the task collectively.

UNIT 7: END OF UNIT ASSESSMENT – In this unit, the professional skills developed in the previous six units will be tested. You will be put in the position of a qualified accountant applying for a role as the Head of Accounting at another organisation. That organisation faces a range of new environmental threats, which you as Head of Accounting have to analyse and evaluate.

13

PQ resources

PQ recently visited the new home of the IFRS Foundation is Canary Wharf and discovered the wealth of great resources to be found on its website for the knowledgehungry accountancy student

T

here is one website (apart from PQ’s, of course) that every accountancy student should be familiar with – www.ifrs.org. It is the home to the IFRS Foundation.

Standard help One of the best of the resources is the dedicated section supporting IFRS implementation – go to https://tinyurl.com/ya4n69hm.

Say, for example, you want to look at IFRS 3: you can look at the ‘about’ section, ‘translations’ and ‘news’. You should home in on the ‘news’, where you will see the IASB issued an exposure draft in April 2016, some narrow-scope amendments to IFRS 3 and 11 in June 2016, an annual improvements to IFRS standards at the tail end of 2017 and, finally, amended the definition to business on 22 October 2018.

IFRS 1 to 17 are covered, as are IAS 1 to 41.

The International Accounting Standards Board issued the revised Conceptual Framework for Financial Reporting in March 2018. The IFRS has also created a quiz to help test your knowledge and understanding. You are asked eight randomly selected questions from a pool of

IFRS to the rescue more than 50. Each question corresponds to a different chapter of the document and you can repeat the quiz as many times as you like, with a new set of questions each time.

Take a quiz How good is your knowledge of the conceptual framework? Go to https://tinyurl.com/y8vw37uc The IFRS has also devised an IFRS Standards quiz. You are asked to answer 10 true/false questions selected randomly from a pool of over Talking shop: Sue 200 questions. These questions are based on the information in the 2017 edition of ‘Pocket Guide to IFRS Standards: The Global Financial reporting Language’. You can take the test at https://tinyurl.com/yb3a2v4u Podcasts and YouTube It doesn’t end there; every month the IFRS Foundation produces a podcast after the monthly meeting of the International Accounting Standards Board. These summarise the discussions and some of the key decisions taken, and provide a bit of context: why the

Lloyd and Hans Hoogervorst in podcasting mode board is working on a particular project and what the next steps will be. The podcasts are typically 10 to 15 minutes long and more often than not feature the chair and vice-chair of the board, Hans Hoogervorst and Sue Lloyd, together with education director Matt Tilling.

There is also a YouTube channel. All the podcasts are here too, and you can create your own playlist and upload them to your phone or tablet. Go to https://tinyurl.com/y6wccpme You should also be following the organisation on twitter – @IFRSFoundation. PQ

Start 2019 strong Plan ahead and book your exams.

Standard entry for March exams closes on 28 January 2019.

Find out more: accaglobal.com/bookexams

14

PQ Magazine January 2019

CIPFA spotlight PQ

I

f you look across the globe you will find there is persistent underrepresentation of women in public administration. While central and Eastern Europe lead with relatively high rates of female representation in public administration institutions, underrepresentation of women in leadership or senior decision making positions still remains high. For example, Ukraine may have 75% representation of women within the ranks of its public administration, but only 13% of women are represented in senior leadership levels.

South Africa and Botswana have recognised this and driving forward an approach to parity in terms of overall representation of women in leadership positions. In the case of South Africa, this is largely due to affirmative action policies and, in Botswana, investment in education and public administration. In other places like the Middle East, the role of women in paid employment is restricted or even prohibited due to sociocultural and religious mores.

Gender segregation The lack of female representation in public administrations reveals vertical and horizontal occupational gender segregation. Vertical occupational gender segregation is often referred to as ‘glass ceilings’, where women struggle to reach leadership and senior decision-making positions. In many public bureaucracies, women tend to be concentrated in lowerlevel and lower-paid positions within the public sector hierarchy with paucity in career trajectories to the upper echelons.

Horizontal occupational gender segregation is when women are concentrated in specific sectors or professions of public administrations, such as education and health sectors.

This is referred to as ‘glass walls’, with women stereotypically associated with feminine professions such as caring roles. There is also intra-professional gender segregation. For example, in the medical profession women tend to be concentrated in general practice careers, while men in careers perceived to be more prestigious such as surgery. The result of occupational gender segregation is often the under-valuing and underemployment of women.

Data reveals scarcity of female career progression to leadership positions, despite the fact that the overall number of female employees in UK public administration since 2001 has exceeded men. Female employees account for 68% of the UK public sector workforce, but continue to face barriers to attaining leadership positions. Many of the barriers to women’s vertical and horizontal career progression in public administrations stem from the social construction of the biological categories of sex, with masculinity being valued.

PQ Magazine January 2019

Getting the right balance Karen Johnston argues that the more women there are in senior levels in the public sector, both in the UK and overseas, the better it will be for all of us

legitimacy and performance, there remains a persistent lack of women and other minorities in public institutions, despite legislation such as the UK Equality Act (2010) and EU gender equality policy directives.

Research is needed on the mitigating impact of public sector reforms on representation of women and minorities.

In the UK, the Scottish First Minister (a woman) has appointed a genderbalanced government with a female permanent secretary. There are lessons to be learned across devolved politics of whether passive representation has resulted in active representation and the implications for women. The outcomes for women employed, and as beneficiaries of types of public sector organisations would offer valuable comparative data.

What are the outcomes of unrepresented public administration on public policy? A related outcome of unrepresented public administration is poor policy-making. If policy-makers do not include a broad spectrum of the population, then societal interests as a whole will not be included in the policy process. The quality of decision-making suffers, resulting in poor policy outcomes, service delivery and public sector organisational performance.

Although the benefit of representative public administrations is evident from research, with implications for trust,

Stand up: Gillian Wearing’s statue of Suffragist Millicent Fawcett in Parliament Square, London

Look at the outcomes As CIPFA President Sarah Howard has said: “The public sector is faced with the challenge of delivering sustainable and efficient services within dwindling budgets and with significant spending pressures from rising demand. Working in public services finance, we need to look not just at the numbers, but ultimately at the outcomes for the people we serve.

Having more diverse leadership, including more women in leadership, will not only make the public sector more reflective of the communities it serves, but will help drive innovation to meet that challenge.”

Globally, policy or knowledge transfer on ways in which to improve representation in public administration is needed. The data on women in public administration reveals the persistence of gender inequality in public sector employment. This has implications for public administration institutions. The research argues that the lack of representation of women and other minorities has policy outcomes for the legitimacy, trust, integrity in public institutions, and public policy productivities and performance. PQ • Karen Johnston is Professor of Organisational Studies at the University of Portsmouth 15

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Sign up for NQ magazine –it’s free!

NQ magazine is written specifcally for newly qualified finance professionals. You can sign up for this e-magazine via PQmagazine.com

Go to issuu.com for back issues. Search for NQ magazine –they’re all there!

The new issue of NQ magazine is out now –go to our website for all the details

Awards 2019 PQ

LASTORDERS AWARDS CATEGORIES

• • • • • •

PQ OF THE YEAR NQ OF THE YEAR DISTANCE LEARNING STUDENT OF THE YEAR STUDENT BODY OF THE YEAR APPRENTICE OF THE YEAR ACCOUNTANCY BODY OF THE YEAR

•

ACCOUNTANCY COLLEGE – PUBLIC SECTOR

•

ACCOUNTANCY COLLEGE – PRIVATE SECTOR

• • • • • • • • •

ONLINE COLLEGE

•

LECTURER – PUBLIC SECTOR LECTURER – PRIVATE SECTOR STUDY RESOURCE INNOVATION IN ACCOUNTANCY BEST USE OF SOCIAL MEDIA TRAINING MANAGER/MENTOR ACCOUNTANCY TEAM ACCOUNTANCY PERSONALITY OF THE YEAR EDITOR’S SPECIAL AWARD

Right here, right now is the time to enter the PQ awards. See you in February?

T

he deadline for the 2019 PQ magazine awards has been extended to Friday 11 January, so come on PQs, you still have time to get your nominations to us!

Everyone’s favourite venue, Café de Paris, is ready, our judges are ready, even the PQ magazine red carpet has been given a clean. Now are you ready to make your mark?

This really is a chance to showcase your achievements and receive the accolades your hard work deserves!

The awards will take place on Tuesday 26 February, so get your 250 words together, and you could be putting the date in your calendar.

There is more than one way to win a coveted PQ. Remember, you can nominate your team or even a fellow PQ. Just go to www.pqmagazine.com and click on the ‘pq awards’ bar on the home page to download the nomination form. Once you have your nomination ready send it to us at awards@pqmagazine.com. All we ask is that you make it clear what category you are entering.

You can also post your entry to The Editor, PQ magazine, Unit 3a, Kingfisher Heights, 2 Bramwell Way, Royal Docks, London E16 2GQ. All entries will be seen by our five independent judges. Last year the judges looked at every entry

before even deciding the shortlists and eventual winners.

So come on boys and girls, get those entries in to us asap and hopefully we will be sending you one of our special invites to cheer you up on a dreary January morning. PQ

OUR SPONSORS

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ACCA & CIMA Exams Visit OpenTuition.com to benefit PQ Magazine January 2019

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Happy Christmas from all of us at HTFT Partnership Thank you for all your support during 2018, and here’s to an amazing 2019!

info@htftpartnership.co.uk 0121 745 8842

PQ magazine About you Title......................................................

Theeasiest easiestway wayto toget get your your free monthly copy The copy isis to togo goonline onlineatat www.pqmagazine.co.uk,ororyou youcan canfill fillinin the the form form below and send www.pqmagazine.com, send itit to: to: PQ Magazine, 4th Floor, Central House, 142 Central Street, London, EC1V PQ, Unit 3a, Kingfisher Heights, 2 Bramwell Way, Royal Docks, London E168AR 2GQ Study please tick a box in 1A or 1B 1A Please indicate accountancy body you belong to and tick the box of the next set of exams you are hoping to sit Applied ▫ Knowledge F1-3

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annual quiz PQ

ANNUAL BUMPER QUIZ We decided to get our quiz prizes this year from the Scandinavian collective producing the Urbanears headphones, so we have five Urbanears Plattan Advanced Black wireless headphone sets up for grabs. There’s no hunting for buttons as these Urbanears have built-in swipe interface, letting you cycle through your playlist and pick up calls with a simple swipe and tap of the ear cup. You can also keep your headphones clean – simply remove the headband and toss it in with the wash!

SPORT IN 2018

1 2

Who scored the goal that knocked England out of the football World Cup? Harry Kane scored a hat-trick against Panama in the World Cup, becoming one of only three players to do so for England. Who are the other two?

3

Who became the first European player to score what is now the maximum possible five points in a single Ryder Cup?

4

Which British Olympic sprinter, a European 4x400m relay gold medallist, was banned from all sport for four years after failing a drugs test?

5 6 7

Who retired from international cricket after scoring an England record 12,472 Test runs?

Which team won rugby’s Heineken Champions Cup?

IN THE NEWS IN 2018

11

A report by MPs said that Richard Adam’s sale of shares worth £776,000 was “the action of a man who knew exactly where the company was heading once it was no longer propped up by his accounting tricks”. To which company was the report referring?

12 13 14 15

Which Northern city overtook London as the top city for growth?

In November, which firm was fined £385,000 for losing UK customers’ data?

Who heads up the European Research Group?

In a eulogy, Barack Obama said: “President Bush and I are among the fortunate few who competed against John at the highest levels of politics. He made us better presidents.” Who was John?

16 17

Name the female CEO who was ousted from the top job at Grant Thornton UK.

Mark Johnston broke the record for British winners for a racehorse trainer. Name the horse that took him to this landmark.

There is much discussion about who should appear on the new £50 note, but who appears on the current £50 note?

In American Football, which team failed to win a game, finishing 0-16 in the 2017-18 season?

On 15 November, who resigned as Brexit Secretary?

8

9 10

Who confirmed his retirement from boxing 12 days after his defeat by Oleksandr Usyk?

Who did Mark Williams beat to win snooker’s World Championship?

18 19

Who said: “I have never seen such a conflated story in all my life, yeah, we had two lunches with the Russian ambassador and passed on a business contact. So what?”

Thanks to our fabulous sponsors…

PQ Magazine January 2019

20

Sir Philip Green was ‘named and shamed’ by which Lord in Parliament?

ENTERTAINMENT

21

EastEnders star Rita Simons was in this year’s ‘I’m a Celebrity…’ line-up, but who is her famous uncle?

22 23 24 25 26 27

Who won their second Best Actress Oscar this year, her first since 1997?

Which computer game enjoyed the biggest opening weekend in entertainment history?

Which director quit the forthcoming James Bond film in August?

Which film was named Best Picture at the Oscars?

Which actor gained 40 pounds to play ex US Vice President Dick Chaney in ‘Vice’?

One of the co-creators of Spider-Man, the X-Men, Iron Man and the Hulk (among others) died on 12 November 2018.

Name him.

28 29 30

Who wrote the soundtrack for the film Suspiria?

Which band won the 2018 Mercury Prize with Visions of a Life?

The ‘Queen of Soul’, born 25 March 1942, died on 16 August 2018. Name her.

GENERAL

31

When was the first book on double-entry accounting published?

32

When wiring a plug in Britain, what colour is the live wire?

33

What personal item did entrepreneur Elon Musk launch into space this year?

34

Which country is the origin of the cocktail Mojito?

35 36 37 38 39 40 41 42

Who was the first woman to win a Nobel Prize?

What organ is affected when one is suffering from hepatitis?

What was the name of the accountant who brought down Al Capone for tax evasion?

Two brothers invented the hot air balloon. What was their surname?

In what year was Google launched?

With which fruit is Kriek beer (a Belgium brew) flavoured?

In computing what is RAM short for?

What is a female peacock called?

43

How many trips round the Earth does the average person walk in their lifetime?

44

What is the deepest lake in

England?

45 46 47 48 49 50

Which is the world’s smallest ocean?

What is the hardest bone in the human body?

Who invented the alternating current?

Plans are in place to build the largest tower in the City of London? What will it be called?

What is the largest Frenchspeaking city in North America?

In 2018, who won the Women’s Prize for Fiction, for her book Home Fire?

Send your answers to:

The Editor, PQ magazine, Unit 3a, Kingfisher Heights, Bramwell Way, Royal Docks, London E16 2GQ. Or email them – putting ‘Quiz’ in the header – to graham@pqaccountant.com.

The closing date is Monday 14 January 2019.

19

PQ CIMA exams

Exam-day strategy will VIVA Financial Tuition’s Thomas Newman guides you through the challenge that is the OTs

T

he Objective Test exams challenge CIMA students in a number of ways.

Exam pass rates for the objective tests over the past year go as low as 48% of students passing (https://www.cimaglobal.com/Aboutus/Examinations/) and students are surprised to hear that it often isn’t lack of subject understanding that trips many candidates up, but rather a lack of good exam day technique.

Even the best-prepared students fall short if their exam-day approach is not up to scratch.

This article discusses the specific techniques you can utilise on the day of the exam to maximise the probability of achieving a pass mark.

Like the best sports teams, all the talent in the world counts for little if the coach does not have an effective game-day plan. The CIMA student is his/her own coach and nailing down the right exam-day approach really can be the difference between a solid pass mark and a fail.

There are five components of an effective exam day strategy and they are as follows: 1. Manage your time.

2. Answer the easiest questions first.

3. Review incomplete questions.

4. Use the ‘flag’ function.

5. Attempt all questions.

Let’s take a look at each of the five elements:

1. Manage your time The objective exams are undoubtedly timepressured. You have 90 minutes to answer 60 questions of varying length. That equates to just 1.5 minutes per question, or 10 questions every 15 minutes. Check the time frequently (every 10 minutes or so), to make sure you’re aware of the time remaining and whether you’re spending too long on certain questions. If you follow the advice outlined in the next four points, you’ll be making your life much easier from a timemanagement perspective,too.

2. Answer the easiest questions first All questions carry the same marks, regardless of how long or detailed they are. However, certain questions are far more difficult than others and will take up longer than the 1.5 minute per question allocation mentioned in the previous section. The more difficult questions require more concentration and time, and the probability of being incorrect is higher as they generally comprise of more moving parts.

For the above reasons, it makes sense to pick the low-hanging fruit first. Spend the first 10-15 minutes of the exam skimming through all of the questions using the ‘Next’ button located in the bottom-right section of your screen. You will quickly identify the questions you are sure you know the answers to and after this first runthrough, you may be surprised at the number of questions you have completed. This first run will calm your nerves and give you confidence to move onto the more challenging questions.

3. Review incomplete questions Once you have completed your first run through and answered the least taxing questions you should utilise another exam tool – ‘Review Incomplete Items’. You can access this functionality by clicking the ‘Review Screen’ button located in the bottom-left of the exam window.

You will then be presented with an overview of the questions that remain to be completed – that is the more difficult questions you left unanswered during the initial 10-15 minute sprint. The idea at this stage is to tackle the questions that are likely to be longer, but you will still be confident of answering them correctly.

Such questions might include those requiring analysis of a short scenario or may include a set

PQ ICAEW spotlight

All change for 2019 The ICAEW outlines changes to the CFAB and ACA Certificate Level exams

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rom 1 January 2019, ICAEW are implementing some exciting changes to their ICAEW CFAB and ACA Certificate Level exams. There will be no changes to the exam questions or the exam delivery software, but the colours used will reflect the new ICAEW brand. There are also improvements that will help you prepare for and complete your exams.

In response to feedback from students asking if they can use their own calculators, ICAEW has updated the exam policy to allow this. From 1 January 2019, you will need to take your own calculator to the exam. The following scientific calculators are permitted: • Casio FX models • Sharp EL531X • Texas Instruments TI-30X 20

• Hewlett Packard HP 10S or HP 300S+ The following financial calculators are permitted: • Hewlett Packard – HP 10bII • Texas Instruments – TI BA II Plus • Sharp EL733A • Casio FC 100V

Reproduced with the permission of ICAEW, this article was first published in Vital (December 2018)

An on-screen calculator will be available if you need it.

As well as the current identification and admission requirements, when you arrive at the exam centre and at the start of the check-in process, you will be asked to provide a digital signature. This helps ICAEW to identify you and also confirms that you agree with all the candidate rules.

A high-quality digital photo will also be taken, to produce a standardised passport-style photo. The invigilator will then compare your signature and photo with your ID and previous exam data. All student data will be securely stored and protected by Pearson VUE in line with GDPR. You will also receive a reminder email 48 hours before your scheduled exam time. Please ensure that all details are accurate. If your plans have changed, you must reschedule or cancel your exam up to 24 hours before you are due to sit to be eligible for a refund. Please ensure you read the exam guide and candidate rules before you attempt an exam.

For further information visit icaew.com/examchanges PQ PQ Magazine January 2019

CIMA exams PQ

get you through the OTs and don’t spend too long on any one question (remember: they all carry the same marks!).

Another handy tool that CIMA includes in its computer-based assessments is the ‘Flag’ functionality, located in the top right of the exam screen. It may be that you are unsure of some of the answers you are selecting for these more challenging questions. If that’s the case, ‘flag’ these questions after your best attempt and move on. Then, if you have time left at the end of the exam, you can locate these flagged questions using the review screen button at the bottom-left of the exam window. This will take you to the entire list of questions again. You can quickly jump to these flagged questions selecting the ‘Review Flagged’ icon at the bottom-right of the review screen. of data or calculations where you know what those calculations need to be.

4. Use the ‘flag’ function Once you have tackled the incomplete questions that you are relatively confident of getting right, you may well still be left with the most difficult questions. These questions are likely to be longer and more detailed and will take maximum concentration and more time to complete.

Having said that, be aware of the time remaining

5. Attempt all questions It’s important to point out that there are no negative marks for incorrect answers. This means that there is no reason whatsoever to leave any question not answered. With five minutes left, a window will pop up to alert you.

At this point, you should return to the review screen to tackle any incomplete questions you have not been able to tackle.

If there are questions remaining that you are

unsure about and you are going to guess the answer there are a few things you can do to improve the odds of selecting the correct answer: • Eliminate any obviously wrong answers. This might narrow down the range of possible answers from four to two for example, thus altering your probability of being right from 25% to 50% • Once you’ve narrowed down the range of potentially correct answers, you can further narrow the range of options: – do any of the remaining options contain misspellings or are any grammatically incorrect?

This can be a clue that they are wrong.

– are there any very general answers; these are often wrong.

If you have gone through the above steps and are still unsure then go with your gut feeling!

Finally, it’s important to include the following caveat: even the best exam technique in the world is futile if you have not spent time building the theoretical knowledge that is so thoroughly examined in these exams, so make sure you’ve done the work before you start focusing on your exam technique. PQ • Thomas Newman is the founder of VIVA Financial Tuition. Go to https://vivatuition.com

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The Institute of Certified Bookkeepers 21

PQ Agony Aunt

MAKE 2019 YOUR YEAR Ask Caron With the New Year upon us, you may be thinking about your study plans for 2019.

Our Agony Aunt is on hand with some useful advice Where should I start?

Dear Caron, I have been a bookkeeper for many years but don’t have any formal qualifications. I have decided that 2019 is the year when I want to remedy that. I have been looking at the AAT and ACCA qualifications, but I just don’t know which is the right one for me. What do you advise?

Yours faithfully, Lost and confused

ACCA. I can claim lots of exemptions, which would mean I can qualify much earlier. I am just worried that in doing so I may not be able to cope with the Strategic Professional Level exams.

Should I claim the exemptions or sit the ACCA equivalent exams?

Yours faithfully, Done the degree Caron writes: ACCA award exemptions for relevant degrees as they see no value in testing areas that have already been assessed. I would suggest you take the exemptions as it means you can progress through the ACCA qualification more quickly. It’s worth noting that even students who’ve studied all of the earlier applied skills and knowledge papers discover that when they get to the Strategic Professional Level they have forgotten some of the topics, and need to recap them. At that level there is always some assumed prior knowledge. and your tuition provider should include some course materials so you can refresh your knowledge.

Caron writes: There are two considerations here: where do you feel comfortable starting? And where do you want to get to? The AAT is a great introductory level qualification that takes a steady pace through double entry, costing, VAT, financial statements and, depending on your preference, the choice of specialising in things like tax or audit. ACCA covers the same skills but in greater detail and greater depth. It’s worth noting that if you did the AAT qualification and then chose to move on to the ACCA you would be exempt from the first three ACCA exams.

That may help to give you an idea of the more advanced skills you will be learning at ACCA. You should hopefully be able to see why the roles available to ACCA qualified accountants command a higher salary. If you are unsure about whether you could cope with ACCA, then start with the AAT as it will provide a recognised professional accountancy qualification and you can always decide to study ACCA at a later date.

Is classroom or online best for me?

Dear Caron, I have just changed jobs and my new employer has given me the choice of how I study. I have been looking around and can either do a weekend classroombased course or enrol on an online course. How can I decide what’s right for me?

Yours faithfully, Computer or classroom

Should I claim my exemptions?

Dear Caron, I have completed my degree in accounting and am registering with the

Caron writes: It’s great that you have a supportive employer who has allowed you to choose the study method that works best for you. Having taught both styles,

22

there are pros and cons for each.

The classroom course is likely to cover a number of key areas of the syllabus on set days, with a combination of teaching and question practice. The tutor should be on hand for any queries you might have, and you’ll be studying with likeminded students. The benefit of a shared learning experience cannot be ignored.

Do expect the sessions to be intensive, and it’s unlikely you’ll be able to cover the whole syllabus in the classroom sessions, so be prepared for significant additional study and question practice at home.

A good online course should have a combination of online reading, video tutorials, live classes, question practice and email/phone tutor support. Look for a course that is interactive rather than just an online text book, and check that you can have one-to-one advice and support from the tutor. While you do need to be self-motivated, your course should include some form of community forum to allow peer-to-peer learning, or simply provide a chance, to chat to the rest of the group. One of the key advantages of online learning is the flexibility it offers for you to fit your studies around your work-home life. With the ability to access courses on mobile devices you can study on the go without the need to carry around heavy text books!

Create a checklist of what matters to you, and speak to the tuition providers to see which one most closely matches your needs.

I don’t work in accountancy Dear Caron, I have just enrolled on an ACCA course and the first exam is Accounting in Business. I don’t actually work in accountancy and am worried I may have started studying too soon.

Yours faithfully, Wannabe Accountant Caron writes: The ACCA is a great qualification for anyone wanting to work in accountancy, but it also includes a number of other skills that make it useful for people working in any time of business. The Accounting in Business paper covers a breadth of topics such as marketing, HR, IT, etc, so it really doesn’t matter that you don’t work in accountancy yet.

As you progress through the exams your skill set will increase, and it will look good on your CV as you apply for accountancy vacancies. PQ • PQ’s Agony Aunt Caron Betts is an ACCA tutor with AVADO PQ Magazine January 2019

interview PQ

PQ editor Graham Hambly sat down for a chat about SBR and SBL with ACCA director of skills and assessment Catherine Edwards

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Q had to get up bright and early recently to catch the ACCA’s director of skills and assessment, Catherine Edwards. We were at ACCA at 8.30am, but had to remind her it was a Tuesday in the UK! She had just flown in from New York and was getting ready to jet back out again for the World Accounting Congress in Australia. The ACCA is, after all, a truly global body.

We were there to talk to her about how the first-ever sitting of the strategic profession essentials exams had gone. That’s SBR and SBL to you and me. The SBR September pass rate was an almost impressive 47% and for SBL, it was 45%. Edwards (pictured) admitted that numbers were lower than a normal sitting for both papers, but nevertheless she was pleased with the pass rates. Some 6,500 students sat SBR. However, there were just 3,300 candidates at SBL and the ACCA expects five times more sitters this December.

A ‘no brainer’ There is some big news here, too. Edwards has now drilled down into the figures and can reveal that the pass rate of SBR sitters who had sat the ethics and professional skills module beforehand was a whopping 73%! That must tell every ACCA PQ out there that the minute they finish the FM paper they must log on to that ethics module – it’s a ‘no brainer’.

Edwards is rightly worried, though, that some students are using the ethics and professional skills modules as something to get through as quickly as possible. But this isn’t merely another exam to tick your way through. She (and PQ) believes it is there to help develop your professional skills and behaviour.

It is not surprising that the SBL and SBR pass rates are as good as they are – remember, it’s the first sitting. ACCA developed a whole series of resources for tutors and even created subject gurus who went around the world teaching the teachers. The specimen papers were written by

Essential

information

Edwards: pass rates are higher in the optional papers if they are taken 12-18 months after the underpinning exam

Your links to SBL resources Pilot exam and related examiner’s report – tested on students in July 2018: • https://tinyurl.com/y8gy6u8m • https://tinyurl.com/ybjr9atz September 2018 exam and examiner’s report Exam (Q&A) attached as PDFs (on website as such rather than links): • https://tinyurl.com/y9ze3kwr The following article is also worth a read – 10 things to learn from September 2018 exam (for SBL): • https://tinyurl.com/ya99y6uq There are quite a few tutor resources in relation to marking and this was a big focus in the Train the Trainer events the ACCA did (reaching over 2,000 tutors). They have access to these via the Education Hub.

PQ Magazine January 2019

the examining team and the specimen and actual September exams are now available on the ACCA website for students to see.

Also watch out for the webinars coming your way, which will help shed light on the right way to get a pass at these essential papers. There are already some great ones ready for downloading. Don’t forget to read the Examiner Reports, either.

The ACCA now allows its PQs to sit the strategic professional level in any order.

So you can sit the optional papers before the essential ones. Edwards confirmed that pass rates are higher in the optional papers if they are taken 12-18 months after the underpinning exam.

There is, of course, no choice of questions now in the option papers. The 50mark case study also requires slightly different skills.

Edwards confirmed that the ACCA had a solid look at all the syllabuses and tidied them up. “Some trimming took place,” she said. The exam team have also tried to provide a bit more guidance here, too. PQ

Additionally students have this guide to marking and the following one to professional skills: •https://tinyurl.com/ydyzf83y • https://tinyurl.com/yb2ty4ft This and other focused exam guidance are found from the following link, scrolling down to ‘Exam techniques’: • https://tinyurl.com/ybm9sxz3 There have been many webinars to date. Here is a list of them all: • https://tinyurl.com/y79xpvpq

Your links to SBR resources For SBR a number of webinars can be found here: • https://tinyurl.com/yakjcmtb As with other exams, the exam team guidance for SBR is critical and can be found here: • https://tinyurl.com/y9oas488 23

PQ ACCA P7

Make time pressure a thing of the past

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ow we have a new format Q1 many students are complaining that the scenario is too long, making the question a time management nightmare. It’s impossible, they say.

Anyone thinking this has either got poor exam technique or has done no proper practice (probably both).

Let me show you how easy it is to pass September 2018 Q1 without drowning in all the detail.

For now, just read the Intro page and the Requirements.

1. Professional marks Set up the Briefing Notes format, write your introduction and make sure there are headings throughout your answer.

Easiest marks on the exam.

Time taken so far – 5 minutes Marks earned – 3 2. Analytical procedures Find the Accounts. Get the figures to calculate any five of the following: • Gross or operating profit margin.

• Interest cover.

• Effective tax rate.

• Current ratio.

• Gearing.

• Inventory days, Receivables days, Payables days.

• ROCE. Set up these calculations, for both years, as columns/table at the start of your audit risks answer. Should take no more than 10 minutes.

Time now taken – 15 minutes Marks earned – 8 3. Audit risks The Intro says a new overseas sub has 24

been bought, with its own overseas auditor. That means there is goodwill, but then the audit procedures part b tells you that, if you had not realised.

I have seven audit risks immediately. Do you? Risks that occur whenever this scenario arises.

• Goodwill over or understated due to Fair Value in initial calculation being subjective.

• Goodwill overstated if no y/e impairment review done, or it is done but too optimistically.

• Retranslation of subsidiary’s FS uses wrong exchange rates.

• Gains or losses on retranslation miscalculated or taken to wrong place.

• Split of pre v post acquisition results of subsidiary not done, meaning full year results of sub consolidated in error.

• Errors throughout, if different accounting policies of subsidiary not adjusted on consolidation.

• Detection risk increased because subsidiary is new, and because if we rely on work of another audit firm, especially overseas, where quality of audit might be weaker, we might not detect that errors have been missed.

I will assume 1.5 marks average per risk if you follow the usual technique for explaining them and two minutes per risk to write them. It should be possible to be a bit quicker, and I will get the full two marks per risk because my technique is on the money.

But I am showing you how a reasonable student can pass; you do not have to be perfect. Seven risks adds 10.5 marks to our running total.

Time now taken – 30 minutes Marks earned – 18.5

Paul Merison explains how you can tackle Question 1 of this paper without running into time trouble

4. Material calculations In risk questions, there are typically two or three marks for materiality calculations of key FS figures in your risks. If you can find them fairly quickly, calculate the materiality of these (as we know they are risks): • Goodwill re new acquisition.

• Fair Value of new subsidiary’s assets (to see if it is material to group).

Time now taken – 32 minutes Marks earned – 20.5 5. Audit procedures on goodwill We are told not to do impairment or forex tests. But that is no problem. Here are some standard tests on new goodwill: • Bank statements and Cashbook to verify cash paid, and date it was paid, and to whom.

• Purchase agreement to verify date, seller, % bought, and other t+c.

• Due diligence report of whoever did the Fair Value exercise on the assets acquired to agree amounts, calculations, methods, assumptions reasonable.

• Experience, independence and qualifications of DD provider to assess how reliable they seem.

Those four tests take me six minutes maximum to write down.

Time now taken – 36 minutes Marks earned – 24.5 6. Part C – audit strategy I cannot get anything on (c) without reading the scenario. That takes time. So for now, let’s leave it.

7. Part D – Ethical/professional issues Giving advice sounds like a management threat to me. So management must accept written responsibility for final decisions made, not just do as we suggest. Might be better still not to sell them this advice.

Two more marks scored, one for explaining threat and one for the action.

Time now taken – 38 minutes Marks earned – 26.5 PASS I still have read no more than the Intro and the Requirements. No time pressure.

8. Now read the scenario Read it in small chunks. Scenarios 2, 4 and 5 are all short and provide quick, easy marks. Scenario 3 is long. Leave until last.

Conclusion The above approach will get you to a pass on Question 1 within 40 minutes. It will get you 30-35 marks within an hour.

You can leave Q1 after one hour, 37 minutes (half the exam time) knowing you have a clear pass on it, and allocate the proper exam time to Q2 and Q3.

Now go practise it! PQ • Paul Merison is London Director of ACCA at LSBF PQ Magazine January 2019

ACCA SBL exam PQ

Build your strength You need to build up your ‘exam stamina’ to be successful in this paper, says Gary Leyshon

I

t is always difficult for all involved when a new exam and associated syllabus is introduced. In that context the Strategic Business Leader (SBL) is no different. However, there are key aspects of the process to study for this exam which, if followed, will greatly assist success.

Preparation Background reading: ACCA have been very diligent with its published literature to support the new exam. Unfortunately, experience so far indicates that many students have not been equally as diligent and not read (or even accessed in some cases) any or all of the excellent background references on SBL. I would strongly suggest that you undertake this background research as your first step. Do not assume anything for this paper.

Gaining the knowledge: This paper is all about the application of knowledge rather than the regurgitation of bookwork.

Having said that, to enable the student to satisfy this need it is critical that they harness the knowledge in the first instance. SBL is a very large syllabus so students must be sure to plan and allocate sufficient time to achieve this knowledge.

Exam technique Skim read the exhibits: During the first five minutes of the exam scan the pages and get a feel for the business and the industry being examined. This provides you with context when planning your answers and allows you to compile a ‘big picture’ of the organisation and the issues it is currently facing.

Understand the requirement: There is no substitute for clearly understanding the requirement before reading the exhibits in detail. Ask yourself a question: if your boss requested that you prepare some work, would you leave the office without clearly understanding exactly what it was that he/she wanted? So why not apply the same principle for SBL? Use the reading, planning and reflection time (RPRT) effectively (40 minutes).

Make this time ‘active’ rather than ‘passive’. You should highlight and annotate those areas of text that you consider to be useful to answering the PQ Magazine January 2019

questions, linking them to the different requirements.

Plan your answers – ‘stop and think’: Inextricably linked to the above discussion is the need to plan. This is a new skill for many students facing SBL and will only be perfected by practice.

It is clear that if you fully understand the requirement then the structure of your answer will follow the guidance that this provides. If we continue the same analogy, once you have clearly understood what the boss requires it is guaranteed that you will take some time to ‘stop and think’ about how best to answer and present your response… or, to put it another way, plan.

For September 2018, the examiner’s guidance clearly indicates that “stronger candidates integrated and used the case study materials throughout their answers to this exam, selecting relevant technical knowledge to support the applied points they were making”. You can’t do this unless you plan.

Time management – practice makes perfect: There is nothing new in students having to follow a strict time management regime. What is new for SBL is the duration of the exam (namely, it’s now four hours).

Most, if not all, students facing this exam will not have experienced this time scale before and stamina is required.

The examiner’s guidance said that “it was noticeable, however, that the quality of some candidates’ answers tailed off towards the end of the exam, with indications that they had run out of stamina”.

It is therefore critical that students sit practice exams under strict exam conditions to ensure they are prepared

for the challenges that a four-hour examination presents.

Professional skills: Professional skills are 20% of the marks available. It is fair to say that if the professional marks are not earned there is a significant chance that the candidate will be unsuccessful. To achieve these marks the answer must be in the format required, showing clear and uncluttered presentation by the use of sub-headings and short ‘punchy’ requirements.

The tone of content must reflect the recipient’s needs, so for example the CEO will be different to a lower-level manager, and so on. This can be harnessed by practice, reflecting on work completed and, as a result, an understanding is developed as to the content required and the context in which it should be presented.

From the recent sittings (September 2018) it would seem that the most challenging of these professional skills is ‘professional scepticism’.

Professional scepticism is an attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of information presented.

This means not taking things at face value – for example, looking for weaknesses in strategy or internal control, questioning data and how it was put together and identifying what additional information is required.

In summary, to be successful in SBL you will need to dedicate time to practise the above so that the process becomes second nature. PQ • Gary Leyshon is an SBL content specialist at Kaplan Financial 25

PQ one-day conference

FUTURE FINANCE

The recent London South Bank University/PQ magazine conference – entitled ‘The Dark Side of Accounting’ – included a number of fascinating sessions on the future of the profession.

Here we focus on Peter Simons’ presentation on digital technologies’ impact on accountancy

T

he world of work is transforming at pace and we could be forgiven for failing to keep up. Technology, demographic shifts, market upheaval and evolving customer expectations are impacting business models and forcing organisations to rethink how they operate. Standing still isn’t an option – businesses need to adapt and finance professionals need to redefine their roles.

In the digital age, the finance function is being given a mandate to go beyond its core accounting role and become more influential, acting as a guardian of the business model and an enabler of value maximisation for stakeholders.

As technology takes over more routine accounting processes, finance professionals must step up to the plate and make sure they have the mindset and skills needed to succeed.

After all, this change calls for a move from being a technical function, focused on financial reporting and budget control, to a more commercial one working with colleagues across the business to apply the discipline of management accounting to decision-making and performance management.

The finance function has a unique end-to-end view of an organisation as every business activity has a financial consequence, and management accounting already provides a suitable performance management framework.

So how can finance functions adapt? They need to complement the technical skills and rigour they use to produce accounts and analysis with the influencing skills and acumen needed to develop solutions.

There is an inherent challenge in shifting from core accounting being your central focus to a foundation to add value, moving from producing answers to asking questions. Finance professionals will need to broaden their skills and be recognised for questioning constructively, guiding strategic decision-making, partnering with peers, managing risks and implementing

projects, as well as providing trusted management information.

Finance professionals have been seen as technical experts, but they now need to become commercially minded problem-solvers who handle ambiguity and speak the language of their business fluently. And they will need enhanced commercial and social skills to collaborate effectively with colleagues from diverse disciplines and external stakeholders.

In fact, they need to become adaptive learners constantly acquiring new skills. They need to learn, unlearn and relearn. This highlights the importance of lifelong learning and continuing professional development in the quest to find out what we don’t (yet) know.

Our Future of Finance research – which included more than 300 interviews and 50 roundtable events with organisations across the world, as well as a global survey of nearly 5,000 finance professionals – can provide some guidance. Businesses must use technology to release the full capacity of its finance professionals. They must widen the remit of finance to cover a broader range of management information, generating new insights and business solutions. And they must provide and empower finance professionals with new skills to create and preserve value.

So how can you – and your employers – define which technical, business, people and leadership skills are needed? This is why we have created the CGMA Competency Framework, a tool designed to help finance professionals and employers understand the knowledge requirements and assess the skills needed for both individual and business success.

Management accountants have a comprehensive view of their organisations’ finances and operations, which is why they will play a critical role developing their strategy in the digital age. To fully seize this opportunity, however, they need to fully embrace the Fourth Industrial Revolution.

The Future of Finance research papers are authored by Peter Simons and Dr Martin Farrar, Associate Technical Director, Research and Development – Management Accounting at the Association of International Certified Professional Accountants. Further insight is available at https://tinyurl.com/y7fycon9 PQ • Peter Simons is Associate Technical Director of Research – Management Accounting at the AICPA

One of the World’s Largest CIMA KďũĞĐƟǀĞ dĞƐƚ YƵĞƐƟŽŶ ĂŶŬƐ ^ƵďƐĐƌŝďĞ ĨŽƌ ĨƌĞĞ YƵĞƐƟŽŶƐ Ăƚ ŚƩƉƐ ǀŝǀĂƚƵŝƟŽŶ ĐŽŵ ƐƵďƐĐƌŝďĞ 26

PQ Magazine January 2019

CAREERS IN ACCOUNTANCY YOUR CAREER, YOUR FUTURE Join the LSBF conference, brought to you in association with PQ magazine

Discover how to have a successful career in accountancy from ‘real’ part and newly qualified accountants.

When: Wednesday 23 January 2019 Time: 9.30am to 2pm

Get a unique insight to what a day in the life of an AAT and ACCA accountant is really like!

Where: London School of Business and Finance 2 Bunhill Row, London EC1Y 8HQ 5-10 minutes from Liverpool Street Station

Booking:

Information:

https://careers-in-accountancy.eventbrite.co.uk

+44 (0)207 823 2303 professional@lsbf.org.uk

PQ the workplace

COACHING COUNTS Here is Part 2 of Ashim Kumar’s article on the importance of coaching for accountants. Check out Part 1, which featured in last month’s issue of PQ

S

o how does the magic of coaching happen? This is a frequently asked question, but before discussing the process and its inherent power we need to understand some basic principles, namely: • The ability to achieve great things resides within us.

• We must take personal responsibility for our growth.

• We agree, as part of the coaching process, to be held accountable for our behaviour.

Nothing will change unless the coachee truly commits to the process. They are charged with investing effort, energy and time to achieve the results they seek. They cannot delegate responsibility to the coach; change must come from within the client.

What does a coach actually do?

The coach’s role is to encourage the client to think deeply about their reality and what can be done to improve it. It explores the fundamental drivers of an individual’s behaviour and their impact on outcomes. For example, it examines self-limiting beliefs, and how to overcome them.

It will also delve into what the coachee really wants in their life and explore actions to get there. Coaching will work on tactical and strategic goals to ensure that there’s coherence between them; our short-term goals become stepping stones towards the desired long-term transformation.

The coach is not a professional advisor, nor is it their role to judge whether an action was right or wrong. The coach will help the coachee evaluate the consequences of an action and modify their approach for the future; generating behaviours that the individual aspires to.

Perhaps most importantly, the coach will be a constant companion on this journey of growth.

They will be on hand, even outside formal sessions, to help reinforce the client’s commitment to goals they have set for themselves.

“Can you be more specific? What can I talk to the coach about?” you ask.

At the start of the relationship the coach will help the coachee identify priority areas; this will be the starting point for future interactions. As the process matures the interventions extend in many directions as we move towards a holistic view of the coachee’s current reality and ambitions. It is fundamentally important to recognise that the agenda is, at all times, driven by the client.

Areas where coaching can help, include (but are not limited to): 28

“Until you make the unconscious conscious, it will rule your life and you will call it fate” Carl Jung

• How can I set my long-term goals?

• How can I overcome the obstacles to growth?

• How can I manage my time better to get everything done?

• How can I focus on the important stuff rather than fire-fighting all the time?

• What should I do next in my career?

• How can I achieve a better balance between work and home life?

• What skills do I need to grow and develop further?

• How can I make my relationships more productive?

A typical coaching session will be 60 minutes in duration. We recommend a minimum of six sessions. Yet most coachees find such interactions so valuable they continue indefinitely.

Remember, all coaching interactions are strictly confidential.

I was recently asked: “I can find a friend to talk through all this stuff with me. What’s so special about a coach?” Well, a certified executive coach has undergone rigorous training. They’ll be intimately familiar with the complex methodology necessary for an effective intervention including: • Ethical and professional standards.

• Techniques for establishing trust.

• High level communication skills.

• Formulating powerful questions.

• Creating awareness of the coachees reality.

• Designing actions.

• Planning and goal-setting.

• Managing progress and accountability.

• Understanding the stages of the learning journey.

The coach will also often be a seasoned business professional. Although they will not (usually) make suggestions, there will be a

rapport based on mutual understanding of the commercial reality. Rapport is fundamental to any successful coaching intervention.

Finding a good coach The value that executive coaching adds has been increasingly recognised for many years.

Consequently, there has been an explosion in global supply of these services. I recommend that you select a coach who’s been certified by an internationally recognised body, such as the John Maxwell Group or the International Coaching Federation (there are other reputable certifying bodies). These organisations will have members’ directories which can be accessed on-line to find a local coach.

That said, the availability of Skype and similar technology allows effective coaching interventions to be delivered wherever the coach may be. We at AKA Sp.zo.o. regularly participate in cross-border coaching sessions, and find no diminution in value of the process.

Another question I get asked is: “I believe that coaching will add substantial value to me, but what about my teams? Can they benefit from coaching too?” The answer is that coaching is often used in a group or team context. Here, individual contribution and learning is orchestrated for the good of the team as whole; to ensure that a shared purpose is recognised and achieved.

As with individual coaching, the aim is to raise awareness and develop new skills, but it also allows issues to be communally addressed by drawing out a collective wisdom. This reinforces joint commitment to a unified purpose and can transform the results produced. PQ • Ashim Kumar is John Maxwell Group Certified Leadership Coach, consultant, trainer and tutor at fmelearnonline.com PQ Magazine January 2019

careers PQ

You’re FIRED!

Being sacked is a real fear for many, with 15.6% of accountants in a recent poll admitting that’s exactly what happened to them in a previous role!

And over a quarter (28.6%) said they never saw it coming. With this in mind, CV-Library asked accountants what they think the top signs are that someone is about to get the Alan Sugar treatment. Here’s their top 10: 1) Raised concerns about performance (80%) 2) Getting formally disciplined (62.2%) 3) Making a big mistake at work (37.8%) 4) Hearing rumours from colleagues (37.8%) 5) Being avoided by managers (33.3%) 6) Workload being reduced (31.3%) 7) Senior staff having lots of meetings (26.7%) 8) Upsetting a manager and/or co-workers (24.4%) 9) Manager is training up a colleague (15.6%) 10) Shifts have been reduced (13.3%) CV-Library’s Lee Biggins said if any of the above sound familiar it’s best not to panic right away. He said: “Just because your colleagues are having extra training or managers are having regular meetings, it doesn’t mean you are about to be fired. That said, a formal disciplinary or concerns raised about your performance is a surefire sign you need to make a change.”

Fear of failure...

Almost two-thirds of accountants (64%) admit that certain elements of the job hunt scares them, according to more research from CV-Library. One in 10 accountants also said they even avoided going to an interview because they were “too scared”.

So what frightens accountants the most about job hunting? Here’s the top five fears: 1) Being rejected for a role they wanted (56.3%) 2) Attending interviews (43.8%) 3) Having to take time off to attend interviews (43.8%) 4) Having to do an interview test or task (37.5%) 5) Video interviews (31.5%) PQ Magazine January 2019

Life at Danone Esther Leung, 27, is a financial control manager based in Bristol. She has worked for the firm for 20 months. ICAEW qualified, she is now Chair of ICAEW Student Council.

Esther has a degree in Accounting & Finance from the London School of Economics What time does your alarm clock go off on a working day? I have several as I like to snooze, 5:45am is my first one.

What’s the first thing you do when you get to your desk?

Set up my laptop then go for a cup of tea with my colleagues. Or start creating my to-do/must-do list for the day if I’m early.

What’s on your desk? We hot desk so it’s empty when I arrive, but by the end of the day snacks, a notepad and pen (I have to write things down as I have the memory of a sieve) and my laptop.

What’s the best thing about where you work? My colleagues and free yogurts.

Where’s your favourite place to go for lunch? The office doesn’t have much nearby, so we typically go to the canteen. If I’m at our Chiswick office there are often yummy food trucks in the

business park, and the Italian is fab, too.

What (or who) can you see when you sit at your desk?

Half the office (it’s all open plan) and a couple of meeting rooms including ‘the nursery’, which also has a rocking chair and plastic elephants in it.

What are your favourite websites and why? BA is great for browsing for short breaks, and I can happily kill time scrolling through Instagram – it’s great for browsing travel spots, food ideas and cute puppies.

Which websites do you use for work? Workplace (it’s Facebook for work) and Google (always useful for Excel formulas).

How many hours a week do you spend in meetings? It varies – 19 hours this week but it probably averages around 10.

What time do you leave the

office? Between 6–7pm, but later around month end and deadlines.

How do you relax? I bake, socialise with friends and travel whenever possible. I aim to visit at least one new country every year.

What’s your favourite tipple?

Gin and tonic.

How often do you take work home? I work at home once a week, but otherwise I try to keep evenings and weekends work-free.

What is your favourite TV show? You can’t beat an Attenborough documentary – I’m currently watching Dynasties.

Summer or winter? Summer, but I also love sunny winter days.

Pub or club? Pub. Who is your hero? My gran. We used to call her Super Gran – she was still doing thai chi in her 70s.

If you had a time machine, where would you go? To the 1920s, it looks like fun!

In brief Action plans needed AAT members believe that simply reporting ethnicity pay gaps is not enough to engender change. Two-thirds of AATs surveyed said the time is right for the government to introduce a legal obligation to publish an action plan for ethnicity pay figures. The AAT said rules on the gender pay gap simply require companies to report pay gaps. While more enlightened companies produce an action plan, the AAT believes it would

be foolish to repeat this mistake for ethnicity pay reporting.

look to generate every-increasing fees through increasing numbers.

Who should pay?

Business should pay a levy for each graduate they employ, says the Higher Education Policy Institute. The education think tank believes the time is right to shift the burden of tuition fees from students to companies. The institute said the change would mean that universities would work harder to maximize job prospects, rather than simply

Welsh income tax coming...

HMRC has written to two million ‘customers’ in Wales ahead of the introduction of the new Welsh Rates of Income Tax (WRIT) in April next year. Income tax will continue to be collected from pay and pensions through PAYE and self assessment in the same way. But from 6 April WRIT taxpayers will receive a new tax code starting with C for Cymru.

The PQ Book Club: books you should read Why Social Media is Ruining Your Life, by Katherine Ormerod (Octopus Books, £12.99) There’s nothing wrong with striving for perfection. The problem comes when we don’t achieve it and believe that everyone else has. How do we know? We look at their social media, that’s how! Whether social media is a force for good or evil is a hot debate, making the publication of this book a timely one. In it, the author uncovers how our relationship with social media has “rewired our behavioural patterns, destroyed our confidence and

shattered our attention spans”.

Ormerod spoke to academics, psychologists and even plastic surgeons, as well as ‘users’, while researching this book. It is divided into seven main chapters, each starting with ‘Why social media is ruining your…’ – the ‘your’ being identity, body image, health, relationships, motherhood, career and politics. The author carefully explains why, but also offers ‘takeaways’ – ways of dealing with the ‘traps’ (which, she notes, affects women much more than men). And these are issues that will not go away; it is

thought that, by the end of 2019, 277 billion people will be using social media.

The big message here is that if social media is making you miserable you are not alone – others are in the same boat, and together we can deconstruct the online fantasy world on which we place too much importance.

PQ rating 5/5 An insightful and important book that could help you change your life.

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

ASK AND WE SHALL GIVE

VATICAN FACING €4BN TAX BILL

The Vatican could be facing a €4bn bill for unpaid taxes on its Italian hospitals, schools and hotels, following a European Court of Justice legal ruling. Italian law allowed the Vatican and other religious orders to avoid property tax on commercial activities as long as the premises contain a chapel. Between 2006 and 2011, the Vatican used the loophole to avoid around €4bn of tax on hundreds of properties. However, the Italian tax law was reported to Brussels by a Montessori school in Rome, which felt it faced unfair competition from untaxed church schools.

DOES YOUR MOTHER KNOW? A Chinese university has realised every student’s worst nightmare in an attempt to motivate its alumni.

Shenzen University now sends the grades of its students straight to their parents, as opposed to the students themselves. The idea, apparently, is to scare the students into working harder. The move is seeing a big divide among the Chinese

students and their parents. The former admit to being ‘a bit nervous’ about the whole thing, while some of the latter claim it’s a great move; they say they spend so much money on their children’s education that they have a right to know how it is going. It all begs the question, how would you feel if your results were leaked to your parents first? Calm and collected, or fear and fretful?

IPPR IDEA COULD WIN YOU £100K!

SCREEN BREAK It has long been ventured that the use of mobile phones and tablets cause sleeplessness among users, as glaring at screens affect their circadian rhythms.

Well, you can forget that! According to a recently published study of 50,000 people, the difference between the nightly sleep of ‘young people’ who used no technology and one who spent eight hours a day on devices was just half an hour. For every extra hour spent looking at screens the reduction in sleep was between three and eight minutes.

’ WEV E

‘I love PQ’ mug

Economists, students and anyone who is up for it are being offered the chance to win £100,000 by competing for a new economics prize. The Institute of Public Policy Research is offering the cash for the best idea “to transform the UK’s disappointing economic performance”.

You have to submit an essay answering: “What would be your radical plan to force a step change in the quality and quantity of the UK’s economic growth?” You have until 6 January to submit your outlined proposal (no more than 5,000 words).

The shortlisted will then be asked for all 20,000 words. The prize is being funded

by Brexit supporter John Mills, the home shopping magnate and Labour donor.

PAID TO STAY AT HOME Stay-at-home spouses can now put a price on the valuable work they are doing, thanks to the Office of National Statistics.

The ONS claims the value of cleaning the home and mowing the lawn is worth an estimated £3,037 per person.

Feeding the family was put at £2,400, doing the laundry was another £1,355, and caring for children added up to £5,358. The total value comes in at £12,150. The ONS said this total ‘household service work’ was valued at £1.24 trillion, which is more in economic terms than the entire non-financial business sector.

Westminster Council had revealed that its wealthiest residents contributed an extra £400,000 to its coffers in the form of a voluntary council tax top-up. The money will be used to pay former rough sleepers to help and advise homeless people, and to tackle isolation among young and old.

Residents made contributions ranging from a few hundred pounds to £5,000. It is now thought that the success of the ‘mansion tax’ scheme, seven months after its launch, could inspire other London boroughs to follow suit.

EAT PASTA AND DITCH STRESS Pasta could help cure stress, claims a recent study by Professor John Cryan.

The professor, from University College Cork, has discovered that a gut bacterium has a strong link with physiology and behaviour. It is thought that pasta, and other high-fibre foods, react in the gut to form short-chain fatty acids. These acids in turn stops the gut from leaking chemicals into the rest of the body, thus lowering the risk of depression, anxiety and IBS. More research is being carried out, but it looks fairly certain: cook pasta if you need to relax.

GOT THE L OT

The laptop is turned on, the study manual open, so what else do you need? A lovely hot cup of tea, of course! But what mug to use? If you had an ‘I love PQ mug’ that would be the one. Well, now you have a chance to own one of our coveted cups. We are even throwing in a PQ memory stick for our three winners this month, too.

To be in with a chance of winning this great giveaway just head up your email ‘PQ mug’.

Please provide your full name and address so we can send you your prize if you win. Email graham@pqaccountant.com.

Colour yourself wild

We have a new and unique colouring experience for you this time around. ‘Colour Me Wild’ is a fun, colour-by-numbers books of amazing animals, from the humble tortoise to a ferocious lion. You can choose to colour each animal in its natural shades or unleash your wild side. There is even a chance to create your own animal masks.

We have three books to give away. Send your name and postal address to enter. Remember to head up your email ‘Colour me wild’ and ping it over to graham@pqaccountant.com. It really is that easy.

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 11 January. The main draw will take place on Monday 14 January 2019.

TO ENTER THESE GIVEAWAYS EMAIL GRAHAM@PQACCOUNTANT.COM 30

PQ Magazine January 2019

Your jobs board I need to find pqjobs.co.uk now!

PQ jobs pqjobs.co.uk

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