PQ magazine, March 2025

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

The Big 4 firm is delaying junior staff promotions, again!

Email: graham@pqmagazine.com

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A note from the Editor

Welcome to the latest issue of a world-leading accountancy magazine! You don’t have to take my word for it – we are the 11th most influential accountancy magazine on the worldwide web. Feedspot ranked us by looking at our relevancy, authority, social media followers and freshness. And fresh in the news we ask if you are studying too hard, and Lord Sikka worries about the future of Western democracy.

We haven’t forgotten it’s exam time for ACCA March sitters and have our customary tips inside.

Last orders are also being called on your entries to the PQ magazine awards. You have until Friday 7 March to get your entries to us. If you get shortlisted we can promise you an accountancy awards ceremony like no other. We have just found a fab new venue, and will reveal all next month. But by then it will be too late, you really do need to get nominating (see page 16 for more).

There is still time to sign up to our ‘power up your employability skills’ roundtable with Rogo, which takes place on 25 February. It’s totally free, and a big thanks has to go to our sponsors of this event: ACCA, CIPFA, ICAEW, IFA, and Reed in Partnership. Just go to Eventbrite –https://tinyurl.com/asyhcm9z – and we see you at 16.00 (GMT). Graham Hambly, Editor and Publisher, PQ magazine

News

4 ACCA exam changes

PQs have just one more chance to sit SBR-UK exam before it disappears

5 Careers roundtable

We’ve joined forces with Rogo so you can ‘power up your employability skills’

6 Your career

New survey finds that cash is king when accountants plot their next career move

8 AAT student conference

Record number of students participate in the three-day ‘accelerAATe’ conference

9 CIPFA pass rates

December pass rates reveal AA had a pass rate of just 46.38%

10 ACA exam pass rates

Good news for FM sitters, but not so much fun for those who took AA

12 Tech news

Is GenAI the accountant’s friend or enemy? A new survey reveals all

Features, etc

14 Have your say

There’s more to life than getting to the top; why we have to make the audit sector fit for purpose; and worries about the ATX option. Plus our social media round-up

16 PQ awards 2025

It really is your last chance to get your entries to us – so do it now!

17 Award winner

Meet Grazia Maria Pia Salcuni, our current PQ of the Year

19 CIMA spotlight

How to overcome the fear that naturally comes when the time to sit an exam is approaching

20 Student Accountant app

Student Accountant’s Victoria Morgan shares information about updates to the popular ACCA app

21 ACCA APM exam

Brigita Petrova explains how you should tackle the ACCA exam which consistently has the lowest global pass rate

22 AIA Scholarships

The application date for the AIA Scholarships programme is fast approaching

23 Artificial intelligence AI can empower young accountants rather than threatening them with extinction

24 A question for Tom Tom Clendon outlines how to account for finance raised through crowdfunding

26 ACCA AFM exam

The examiners’ report are a goldmine of information – so we show you how to start digging

27 ACCA exam tips

Loads of great tips from our experts – but please don’t forget that revision programme!

34 Contract law

Karen Groves explains a subject area that has been causing problems for many students

37 AAT exams

Nick Craggs focuses on audit outcomes from the Level 4 Audit paper

38 Ethics

Our guide to help accountants navigate the ethical challenges they face in the digital age

40 CIPFA roundtable

A discussion on the importance of optimising financial processes through technology

41 Careers

ICAEW launches free sustainability resource; our Agony Aunt’s advice on dealing with workload stress; and our Book Club review

42 Fun

The lighter side of life – and accountancy

The columnists

Lisa Nelson Stress can be a good thing – so long as you harness its power 4

Robert Bruce FRC bigwigs might as well head to the pub 6

Prem Sikka Funding of political parties has to change 8

Anna Kate Phelan Why soft skills matter more than ever 10

Hannah MacDonald Let’s help our neurodivergent trainees to thrive 12

p17

LISA NELSON

When NOT to avoid stress

In my PQ column in January, I used a gym analogy to share thoughts on building achievable goals and consistent habits. This month I am continuing the gym analogy through a different lens. In training to become a qualified accountant, stress is often perceived as the enemy. However, embracing stress, sensibly, can be a catalyst for progress and growth. Our muscles need to be stressed to heal stronger and grow.

Stepping out of your comfort zone can feel daunting. Yet it is precisely moments of discomfort that foster resilience and enhance your capability. Struggling to complete a practice exam, allows you to transform weaknesses into strengths. As with the gym, where the discomfort of lifting heavier weights results in increased strength and endurance, so does the discomfort of realising you don’t know it all (yet) or the discomfort of the uncertainty you feel in performing a new task at work. Encountering stress when faced with unfamiliar tasks or responsibilities is a signal of growth, so lean into these challenges. You’ll cultivate a mindset of continuous improvement and adaptability, essential traits for success as an accountant. Stress does not need to be the adversary avoided at all costs, it can be the stimulus that propels you forward.

One ACCA exam for all SBR students

The last sitting of SBR-UK has been scheduled for June 2025. ACCA said: “Recently, the UK’s Financial Reporting Council announced changes to FRS 102 that means there are too few material differences between the SBR-UK and SBR-INT syllabus to write separate exams.”

Students who choose to sit the final SBR-UK exam in June 2025 but do not pass will need to

resit the SBRInternational exam. Full transitional support will be provided to help students through this process.

Students intending to gain the Audit Qualification in Ireland should continue to select the SBR-Ireland exam.

The FRC has agreed that the SBR International exam meets

the required content standards of the UK Statutory Auditors (Examinations) Instrument 2008, as there are no longer material UK GAAP differences to examine. Additionally, students who have already passed the SBRInternational exam and meet the other requirements can now apply for ACCA’s UK Audit Qualification. Students and members working toward ACCA’s UK Audit Qualification can now complete either the SBR-International or SBR-UK exam as part of their requirements. Previously, only the SBR-UK exam was accepted.

Still time to nominate for awards

The clock is ticking, and you only have until Friday 7 March to get your PQ magazine award nominations to us.

We are nearly at ‘judgement day’ for what will be our 22nd awards ceremony.

We also have a new venue booked, and will doing the ‘big reveal’ next month on where you will be heading if you are shortlisted. Remember, all those shortlisted get to go to the coolest accountancy awards night for

free. Tickets for everyone else cost £150!

There are 20 shiny new PQ trophies to be handed out on the night on what is the biggest evening in the accountancy education industry calendar. Check out how to enter on page 16. And you can drop in on the chat between LSBF’s former Lecturer of the Year Paul Merison, who spoke with our current PQ of the Year, Grazia Maria Pia Salcuni (see page 17).

PwC delays promotions

PwC is reportedly making a new round of redundancies and is again delaying promotions for junior staff. This is in response to the slowdown in demand for professional services in the UK.

Some 100 middle managers have been offered voluntary redundancy. Roughly the same number of junior staff members are now facing a delay to their

Free pre-seen mock for SBL

PQ magazine has once again joined forces with top tutor Chris Cain to offer you access to a free ACCA SBL mock exam.

Tailored to the March exam, the practice paper will be uploaded on 26 February. And you can give it a go before Chris releases the indicative contents answer on 28 February.

For more go to page 13, or simply send an SMS on WhatsApp to 07973 508793.

Newly qualified Nadya Olath used the service and passed her SBL exam first time with 74%.

On LinkedIn she said: “A big thank you to First Intuition and their tutors for all the tuition, Tom Clendon for SBR, and finally Chris Cain and PQ magazine for SBL support.”

ICAEW sustainability programme

ICAEW has launched a new sustainability programme for

promotions. This happened last year, too. Basically, it means those on the graduate scheme stay as associates for an extra six months. They are then promoted to senior associates and given a pay rise. This would normally happen after they had been with the firm for two years.

A source close to the firm told the Sunday Times this was an

chartered accountants. On offer is a series of bite-sized online resources with an ICAEW Sustainability Certificate at the end.

The programme contains over 50 hours of learning and is free to ICAEW members. There are five main units covering among other topics assurance, strategy and risk management, and reporting and decision-making.

ICAEW’s Richard Spencer said: “We hope this tool provides valuable for chartered accountants and gives them the

attempt to stagger promotions, so there was not a large cohort being promoted all at once.

skills and knowledge to positively impact decision-making processes on sustainability.”

For more go to page 41

GAAPweb needs you

The GAAPweb salary survey gives you a unique chance to provide a personal take on what really is happening in the accountancy profession.

You can take part in the survey by going to

https://tinyurl.com/ux7jvh93

Lisa Nelson is Director of Learning at Kaplan

Power up you employability skills

Are you looking stay ahead in the ever-evolving world of accounting? Well, you need to drop in on our ‘Time to power up your employability skills’ roundtable!

A career in accountancy is so much more than dealing with numbers, and our speakers will explain how you develop those so-called ‘soft skills’ that have become the ‘differentiators’ in the job market.

PQ magazine and Rogo have again joined forces for this free live

online event. It kicks off at 4pm on Tuesday 25 February, and we have a great line up for you. Sign up/ register your interest at https://tinyurl.com/asyhcm9z

On our roundtable will be Daniel

Are you studying too hard?

ICAEW students were recently reminded they must not forget that there is such a thing as studying too hard and burning out by the time you get to exam day. The institute explained that as well as looking after the basics like sleep, eating and exercise, students also have to schedule in some downtime.

And although many students quickly understand the importance of question

practice, they don’t practise to time. The exam is not the place for this to happen for the first time. Students are also poor at reviewing their practice answers – you have to mark your work properly, says the ICAEW.

Another criticism is too many students waffle on in the exam – in effect, writing too much! Students were reminded that they don’t have to produce a perfect answer, just answer the question set.

Cornes, senior business manager at Reed Finance; Hazel Powling, ICAEW Head of Qualifications Development; Jamie Lyon, Head of Skills, Sectors & Technology at ACCA; and Jonathan Barber, Executive Director – UK at the Institute of Financial Accountants.

The event will be chaired by PQ magazine’s award-winning editor Graham Hambly.

Our sponsors for this event include ACCA, CIPFA, ICAEW, IFA and Reed in Partnership.

You can read ‘10 common exam mistakes – and how to avoid them’ at https://tinyurl.com/4d9sh73x

PQ magazine – a world leader!

PQ magazine has been selected by FeedSpot as one of the Top 15 accountancy magazines to read on the web.

Feedspot creates the list of best accountancy mags from thousands of magazines, ranking their web presence by relevancy, authority, social media followers and freshness. You will find us at number 11, squeezed between The Accountant Journal and Financial Accountants.

ACCA’s Accounting and Business UK comes in at number 9, and top of the list is the Journal of Accountancy. Check out the full list at https://tinyurl.com/2akuhrev

PQ magazine editor Graham Hambly said: “Our aim is to connect, inspire and entertain and it is great to see that being recognised by Feedspot.”

ROBERT BRUCE

Time for a stiff drink…

If I worked for the Financial Reporting Council I would be heading off to the pub. Forget whether they should be working from home or in the office, they should be putting their feet up, catching up with a book or two or simply loafing. Why so? Why should the people who keep the country’s audit watchdog up and running, enforcing the nation’s corporate governance regime and ensuring the audit firms’ practices are up to scratch, be in the pub instead?

The answer is simple. Because the people who set the tone from the top – in this case the government – don’t seem to give a bugger. For years successive business departments of HMG have promised that they were on the verge of upgrading the whole system, giving it teeth and ensuring audit firms work as keenly as they should and the corporate sector is kept in prime order. Business Secretary after Business Secretary have sworn to do so. The most recent King’s Speech promised a draft audit reform bill to do so. But then last month they announced that the proposals would be watered down. It transpired that they thought that having tighter rules would hamper potential economic growth.

Nonsensically, regardless who is in power, the idea that financial probity and rigorous auditing are not essential to having a healthy, growing business sector has taken root.

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

Essential maths skills

Students are being reminded that ACCA has a fantastic suite of videos to help them with their essential maths skills. There are seven videos in the series covering everything from basic algebra, percentages, liner equations and marginal and absorption costing.

ACCA stressed that these skills are fundamental to success in MA, PM and FM exams – and beyond.

Go to Essential Maths SkillsYouTube

Show me the money!

More than half (60%) of private sector professionals do not believe that their current salary and benefits reflect their true value, according to the latest survey from the Spencer Clarke Group.

However, when asked if they would stay in a role with a lower salary if there was a promise of a salary increase in the future 30% of respondents said they would.

All in all it means, irrespective of age, gender or seniority, a high salary is the key priority and driver for accountancy and finance professionals.

Meanwhile, the report found

that 36% of public sector accountants will be or are seeking a new job in 2025. Some 47% said a higher salary was the main reason (slightly lower than the private sector), with annual salary increments being the most desired perk (47%), followed by flexi time (16%) and a four-day

It’s still a case of who you know

Personal contacts and a privileged background are still a prerequisite if you want a career in business, finance and accounting, according to a survey of 1,000 young people across the UK.

The Young Minds survey, commissioned by BDO, found there is still a feeling of unequal access into the professions. It appears that young people believed they are simply not informed enough to make real careers choices.

The survey of 18–25 year olds also found almost half (44%) of respondents still believe attending university will provide more career choices.

One area where a gap still exists is apprenticeships. Over 79% of respondents said they do not think there is enough information given to them about apprenticeships when they are/were considering their career options.

Anna Draper, head of people

CASSL is having a ball

It’s time for the CASSL Annual Ball!

The Chartered Accountants Student Society of London is planning another unforgettable evening of glamour and celebration on Saturday 1 March.

This year’s theme ‘The Roaring 20s!’ will be hosted at the home of ICAEW London, Chartered Accountants Hall.

You can enjoy a sumptuous three-course dinner, half bottle of wine and good company as CASSL

Find the right course

How do you find the right course to help you get qualified? There are literally hundreds of people providing tuition, but who can you trust?

Well, PQ magazine has been around for over 20 years and we have created a Course Finder page at https://tinyurl.com/2ebtwxau

It will guide you to some of the best tutors around. Select which accountancy body you are studying with and you will see our trusted

celebrates another year. And all for just £80.

The event will feature live entertainment with music to transport you back to the Golden Age of Jazz.

The distinguished guest speakers

providers.

We have nine trainers on the AAT list, including HTFT Partnership, Ideal Schools, e-Careers, Training Link and Premier Training. We know if you choose any one of these you will get a first-class service and be one step nearer your goal of becoming a qualified accountant.

Back to basics with PQ

Don’t forget PQ magazine’s whole

Back to Basic video series one and two, for you to view via our YouTube

week (10.5%).

Nearly 90% of public sector professionals ‘agree’ or ‘strongly agree’ with the statement: “A work-life balance is a top priority for accountancy and finance professionals today and is the most important factor after salary, followed by an appealing benefits package.”

Despite the findings, the report also found that 52% of public sector professionals are satisfied with their current earnings.

Interestingly, 63% of accountants in the public sector are confident they will earn their desired salary if they just stay in their current role.

Check out the full report at https://tinyurl.com/2nrk95rt

culture and purpose at BDO (pictured), said: “Greater connectivity between government, businesses and the education system is needed to allow young people to make more informed decisions.”

on the night will include Afua Kyei, CFO of the Bank of England, and Malcolm Bacchus, President of ICAEW.

Everyone is being encouraged to embrace the theme by dressing in their best Roaring 20s attire. Think flapper dresses, dinner jackets, feathered headpieces, or any outfit that channels the glitz and glamour of the era.

And as CASSL says: “Everyone is welcome, regardless of your role or accountancy background.”

Sign up at https://tinyurl.com/5y95mu2r

channel.

In series 2, top tutor Will Boardman looks at the VAT control account and tax points, while Tom Clendon delves into provisions and impairment.

There are another nine videos in the series, looking at everything from double entry bookkeeping to cost behaviours. You will also find other great videos on the future of tax, audit and net zero. Check out the full playlist (series one and two) at https://tinyurl.com/bdebcdma

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LORD SIKKA

What is the future of Western democracy?

People vote but one party always wins. It is the ultra-rich and giant corporations who fund political parties and individual legislators to get access to policy makers, shape laws, thwart regulation, get favours and ensure that threatening issues are kept off the political agenda.

Political donations are a sport of the rich. The top 1% of the UK population has more wealth than 70% of the population combined. The top fifth of households have 63% of the country’s wealth, the bottom 50% have 5%, and the bottom fifth has only 0.5%. Whichever way you look at it, only the rich have the resources to fund political parties and sway government policies. People know that the system is corrupt and vote with their feet; in the 2024 general election eight million citizens didn’t register to vote.

Banning political donations is a necessary step in restoring confidence. Such a ban would force political parties to compete and develop publicly acceptable policies. The successful parties would attract more members and membership fees. Those unable to do so will wither. This will reduce the money available to the parties and they would need to spend it wisely, possibly by eliminating misinformation.

State-funding could also be considered, although some will object to this. But the alternative is the current corrupt situation where politics are hijacked by corporations and the rich.

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

Tax briefs

Does Abramovich owe UK Exchequer £1bn?

Sanctioned Russian oligarch

Roman Abramovich could owe the UK up to £1bn in tax after he tried to avoid tax through a series of hedge fund investments.

A BBC investigation said leaked papers show investments of £4.7bn were routed through the British Virgin Islands (BVI), but all the evidence suggests that these funds were managed from the UK. That means they should

accelerAATe ‘biggest and best’ ever

Record numbers of AAT PQs united for the three-day ‘accelerAATe’ conference, which has now become a big part of the student conference calendar.

More than 3,500 students registered, with thousands tuning in to the live sessions and hundreds more catching up on-demand in the days that followed.

One student, Emma-Louise Waple (pictured), was so inspired by last year’s conference that she went on to set up a Facebook group as a way of creating a sense of community all year round. Waple explains: “I was a hairdresser for years and then a full-time mum. After a six-year career break, this is a completely

new path for me. Studying at home has been rewarding but can be lonely. The conference last year offered plenty of opportunities to connect through

the chat box, which was brilliant.

“I launched the Facebook group to keep those connections alive. What started as a small initiative has grown to over 1,200 members in just a year, including students, tutors, authors, and honorary AAT members.”

Claire Bennison, Executive Director Customer, Partnerships and Innovation at AAT, said: “Events like accelerAATe are rapidly growing in demand. We saw a 55% increase in the number of students who registered compared with last year and many signed up to attend multiple conference sessions – we had just over 17,000 session registrations in total.”

CIMA November case study results

The CIMA November case study results are in, and they show pass rates up in two and down in one, when compared with the August sitting. The Strategic pass rate was 62% – the highest pass rate for six sittings. The Management case study pass rate also jumped three percentage points, to 65%.

Meanwhile, the Operational pass

rate slipped back to 68% – last August it had risen to a healthy 71%.

Making diversity work for lawyers

Britain’s legal watchdog is under pressure to make exams for solicitors easier in order to boost diversity in the industry, the Daily Telegraph has reported.

The pass rates stats for the Solicitors Qualifying Exam (SQE) show white students performed best in last July’s exam session, with 57% pass rate. Meanwhile, Asian candidates achieved a 42% pass rate, and of the Black

have been taxed in the UK. And some of the money used to fund Chelsea FC came from those BVI companies.

Abramovich denies he has any unpaid tax outstanding in the UK.

We need a JanuaryDecember tax year

Efforts to simplify the taxation of interest earned overseas highlight the benefits of changing the tax year to match the calendar year, and the time is right for the UK government to consider such a

trainees who took the exam just 28% passed.

change, according to the Chartered Institute of Taxation (CIOT).

Such a move would bring many benefits, including better understanding by taxpayers and greater alignment with other countries, although the CIOT recognises that the transitional period would require careful management.

In its response to a government consultation, the institute also suggests that the proposed changes should apply to all

Male candidates also outperformed female candidates by 52% to 46%.

The overall pass rate for last July’s SQE was 44%, which was the lowest pass rate since the qualifying test was first introduced.

Currently none of the UK professional accountancy bodies collect the information to release comparative figures in this way.

overseas investment income reported under automatic exchange of information agreements, not just interest.

HMRC admin costs up

An increasingly complex tax system, more people paying tax and HMRC investing in staff and IT contributed to the cost of collecting tax rising by 15% (£563 million) in real terms between 2019-20 and 2023-24, according to a new National Audit Office (NAO) report.

The CIPFA pass rates are…

The CIPFA December pass rates are in and Audit and Assurance (AA) stood out for all the wrong reasons – with a 46.38% pass rate. Both Developing Strategy and the Strategic Public Financial Management papers also had pass rates below 60% – at 53% and 58.33% respectively.

Anna Howard, CIPFA Head of Qualifications Innovation and Development, said: “AA is one of the first written, non-computational exams taken by students. As a theoretical subject introduced early in the qualification it presents unique difficulties for both examiners and students. Recognising this, the CIPFA team

has spent the past year enhancing the audit workbooks to make the content more engaging and practical, helping students bridge the gap between theory and application.

“CIPFA students tend to have limited hands-on experience in external audit, making this subject particularly demanding. The CIPFA assessment team will continue to closely monitor student performance and explore innovative ways to teach and assess this complex yet vital area.”

CIPFA DECEMBER 2024 PASS RATES: Audit & Assurance 46.38%; Business Planning & Financial Management 73.53%; Business

Reporting 64.71%; Developing Strategy & Data Analysis 53%; Financial Accounting 92.97%; Governance & Risk Management 89.3%; Implementing Business Change 82.19%; Management Accounting 95.81%; Tax & Law (UK) 98.88%; Tax & Law (international) 100%; Public Sector Financial Reporting (international) 92.5%; Public Sector Financial Reporting (UK) 74.44%; Strategic Case Study 73.2%; Strategic Public Financial Management 58.33%

HWB hires 10 as business grow

Hampshire accountancy firm HWB has welcomed 10 new starters as business demand continues to grow.

The Southampton-based firm has bolstered its team with a mixture of trainees, qualified staff and work placement students across various sectors.

Among the recruits are seven

trainees, who will undergo extensive training in payroll, accounts and audit, alongside experienced professionals who have joined the team.

Managing Director Tracy Jenkins said: “These appointments are part of our continuing policy of recruiting the brightest young talent to develop

into the future mainstays of our business and industry in general.

“Having more hands on deck and new voices and opinions around the office will help our directors and senior staff to continue to give the second-to-none customer service for which we have become renowned.”

Check where you are sitting those exams!

ACCA’s sudden change of exam venues In London hasn’t gone down well with many PQs.

It appears many students have been moved from central/east London locations out to Wembley because the venues appear full.

One PQ who had chosen the Imparando exam centre in east London has been switched to ‘somewhere in Wembley’ for the March sitting.

As the PQ said: “It would have been nice to know from them rather than finding out by mistake.”

Students think this will cause a lot of issues on exam day because of the lack of notification. And for many it was adding a lot of travel time (and stress) to their day.

One student who booked a 9am start will now have to leave home at 6.30am to make it on time.

Check out all our exam six pages of exam tips in this issue. Go to page 27

Become an Intermediate Financial Accountant

Graduates,

•

•

ANNA KATE PHELAN

Soft skills matter more than ever

In today’s ever-evolving accounting space, technical knowledge is just one piece of the puzzle. However, employers are increasingly looking far beyond the numbers and seeking professionals with strong communication, problem-solving and leadership skills. These ‘soft skills’ are now the real game-changers in career progression. But how do you develop and showcase them effectively?

That’s exactly what we’ll be tackling in our upcoming live roundtable discussion on Tuesday 25 February 2025, at 4pm (GMT). PQ Magazine and Rogo have teamed up once again to bring you a lively and insightful session featuring industry experts. This is your chance to gain a competitive edge in a job market that values the well-rounded professional. You’ll hear from leading voices in the field and get practical insights on how to enhance your soft skills, making you a more attractive candidate to employers and better prepared for career advancement.

Supported by ACCA, CIPFA, ICAEW, IFA and Reed in Partnership, this session is designed for ambitious accountants who want to future-proof their careers. The discussion will last around 45 minutes, making it a perfect investment of your time. Don’t miss out on this opportunity to learn, engage and grow. Register now on Eventbrite at https://tinyurl. com/asyhcm9z and take the next step toward becoming a standout accountancy professional.

Soft skills aren’t just ‘nice to have’—they’re absolutely essential. See you there!

ACA December professional exam results

The latest ICAEW professional level exam results show that 7,549 students sat in December, with 13,110 exams attempted.

In all, 5,595 trainees passed all the exams they took, and 1,794 students passed the professional level at this session.

The big jump in pass rates came in the FM exam, which rose from 71% last time out to 89.43% this time. However, the pass rate for AA dropped from 78% in September to just 73.4% in December.

Just over 1,000 sitters took three papers; 73% passed all three, with a further 15% passing

two out of three.

The stats also show just fewer than 3,000 PQs sat one paper,

Celebrating membership in style

FCCA’s Chengai Ruredzo recently had the honour of being a guest speaker and present certificates to the new cohort of ACCA graduates in Zimbabwe, her country of origin.

She was able to meet some of her mentees for the first time, and wanted to give a special mention to Nyarai Tinoza, who was the national prize-winner in four

subjects and received numerous awards at the graduation ceremony. She had reached out to Ruredzo in 2023 for guidance and completed an astounding 10 papers in five sittings.

Ruredzo felt the whole event was nothing short of spectacular, and there was even “impromptu singing, dancing and ululating in true African style”.

and while 73% passed their paper it meant 1,183 (15.7%) failed, and came away from the exam with nothing to show.

PROFESSIONAL LEVEL EXAM

RESULTS – DECEMBER 2024: Audit and Assurance: 73.4%; Business Planning: Banking: 61.3%; Business Planning: Insurance: 80.8%; Business Planning: Taxation: 79.8%; Business Strategy and Technology: 86.4%; Financial Accounting and Reporting (IFRS): 80.0%; Financial Accounting and Reporting (UK GAAP): 69.6%; Financial Management: 89.4%; Tax Compliance: 81.6%

AAT appoints new performance and transformation director

AAT has appointed Greg Ferrari (pictured) as its new Executive Director of Performance and Transformation in a move that completes the executive team under CEO Sarah Beale.

Ferrari will lead the AAT’s finance, IT, project management and people teams. He

KPMG reports record revenue

KPMG has reported UK revenues of £2.99bn for 2024, with profit before tax growing by 11% to £404m.

However, revenue was only up 1% yearon-year, and Group CEO Jon Holt said: “This is a good performance in challenging market conditions. While we focused on manging costs, we have positioned the business for long-term sustainable growth.”

He went on to explain that the firm has also invested in talent, bringing in around 1,000 new students and promoting 10% more people, as well as increasing the bonus pot by 20%.

comes from the charity Advanced HE, where he played a key role in modernising IT systems and embedding industryleading processes for financial and strategic planning. He has also had leadership roles at Pearson, where he established a network of multilingual teams across four continents. He said: “I’m excited to be joining AAT at this pivotal moment in its development. Its 2030 Strategy shows a clear commitment to understanding and adapting to the needs of members and students, both now and in the future.”

The average distributable profit per partner was £816,000.

Moving to Paradise

EY has announced that it is moving to new offices in Birmingham as part of its continued investment in the city and the wider Midlands region. The new office is in prime location at Three Chamberlain Square, which is part of the Paradise Birmingham development.

The move is scheduled for 2026 to coincide with the end of EY’s current lease at One Colmore Square, where it has been based for the past 20 years.

EY employs more than 1,200 people in Birmingham, including 55 partners. In 2024 it

welcomed over 50 graduates, school leavers and interns to its Birmingham offices through its student recruitment programmes.

The Real deal

Real Madrid have broken the billion Euro revenue record to top the latest Deloitte Football Money League.

The top 20 revenue generating clubs in world football made a record €11.2bn in the 2023/24 season, which is a 6% increase in cumulative revenues from the previous season.

The average Money League club generated €560m – €244m (44%) in commercial revenue, €213m (38%) in broadcast revenue and €103m (18%) matchday revenue.

Anna Kate Phelan is Head of Product at Eintech

HANNAH MACDONALD

Be the best version of yourself

Some 15%-20% of the UK population is neurodivergent and this percentage increases in industries like technology, engineering and accountancy. We don’t know the exact figure for the accountancy profession but a quarter of us could be neurodivergent.

I’m a dyslexic chartered accountant (there are more of us than you might think) and I was surprised to learn that my dyslexia has nothing to do with spelling. There is a broad spectrum of diversity even within one type of neurodivergence, so if you find you’re struggling at work or in your studies do some research and consider a diagnostic test. Believe me, you will learn so much more about yourself, including what your strengths are.

We often forget that neurodivergence is just part of being human and if you are neurodivergent your weaknesses come with significant aptitudes. If you focus on these aptitudes you can take your confidence and career to new levels.

At Accountancy Hub, we support all PQs to thrive in their early careers. Sometimes, neurodivergent trainees can find accountancy exams particularly challenging and we signpost people to coaching, private tuition and mentors for guidance and support. We are a big believer that the exams have the power to develop future business leaders, and neurodivergent individuals often naturally have the creativity, drive and impact to steer organisations to success. Let’s support our neurodivergent trainees to thrive.

Macdonald

Sage Copilot ‘minor issues’

Sage has confirmed it temporarily suspended its AI assistant, Sage Copilot, in January after it produced incorrect customer information, according to The Register. It appears when a customer asked Sage Copilot to show a list of recent invoices it pulled data from other customers’ accounts, including their own. Once this was reported to the support line Sage pulled access to the AI.

A Sage spokesperson said it

AI is making an impact

Over half (53%) of workplaces in the audit and governance sector have now implemented GenAI tools in their day-to-day tasks, according to a new survey from CareersinAudit. com

The main reason holding back adoption by the other 47% in the sector is a lack of knowledge and understanding (cited by 39% in that group).

Those who have adopted GenAI are seeing the benefits immediately, with 69% of respondents saying they have benefitted from improved efficiency in their work processes.

It is in data analysis where AI is really proving its worth. Here AI is identifying anomalies, assessing risk and generating reports with enhanced accuracy and speed. That does not mean, however,

that there are not concerns about knowledge gaps, data quality and interpretability of AI-generated outputs. Ethical and regulatory consideration remain another major hurdle.

Of the many readily available GenAI tools now out there, CoPilot proved to be the most popular, used by 38% of respondents.

ChatGPT was second (28%), while various others including large language models (LLMs) Gemini and GitHub accounted for 23% of the overall responses, and custommade tools made up the remaining 11%.

According to industry forecasts, the adoption of GenAI tools will reach near-universal levels in the next three years, with the pace varying from region to region.

To view the full findings from the survey go to

https://tinyurl.com/4kenphhj

CMA to investigate Google’s search services

The Competition and Markets Authority (CMA) has launched its first strategic market status (SMS) investigation under the new digital markets competition regime, which came into force on 1 January 2025. The investigation will assess

Google’s position on search and search advertising services, and how this impacts consumers and businesses including advertisers, news publishers and rival search engines.

CMA said that for businesses, effective competition could keep down the costs of search

Sage Copilot access extended

Sage has said that Sage Copilot, its generative AI-powered assistant, will be available to UK small and medium-sized businesses from the start of March.

Since December, customers on select plans have benefited from early access to Sage Copilot, enabling them to experience its capabilities firsthand and provide feedback to refine the experience

took Sage Copilot offline for a few hours to investigate the issue and implement a fix.

Thomson Reuters acquires SafeSend

Thomson Reuters has acquired SafeSend (in the form of cPaperless LLC) for $600 million in cash.

SafeSend is a US-based cloudnative provider of technology for tax and accounting professionals.

Founded in 2008, SafeSend automates the ‘last mile’ of the tax return, including assembly, review,

for those following behind.

Nikola McNicol-Kenney, VP Small Segment, Sage, explained: “Early adopters of Sage Copilot have told us it’s like having an extra pair of hands in the office, saving them hours each week and providing clarity on their finances. We’re proud of how Sage Copilot is already enhancing how small businesses work and

taxpayer e-signature and delivery.

Its software solves key pain points for customers and their clients by eliminating timeconsuming manual tasks.

SafeSend’s solutions are used by accounting firms of all sizes in the US, including 70% of the country’s top 500 firms.

Reuters expects its new acquisition to generate around $60 million of revenue in 2025 before the impact of fair value adjustments to acquired deferred revenue, and to grow in excess of 25% annually

advertising, equivalent to nearly £500 per household per year, in turn lowering prices across the economy. An effective, competitive market could also, it felt, allow businesses to innovate in a way which creates alternatives to traditional search services, including by, for example, ensuring that new AI start-ups can compete with Google and other existing players on an equal footing.

remain focussed in continuously improve and bring new features to help them thrive today and in the future.”

• See brief below for ‘minor issues’ story.

in the next few years.

New AI Code of Practice

The UK government is taking forward plans for a voluntary Code of Practice to help address the cyber security risk of AI. The government, in the form of the Department for Science, Innovation and Technology (DSIT), said a code focussing specifically on the cyber security of AI is needed because AI has distinct differences in software.

Hannah

is the founder of Accountancy Hub

Accountants…Time to power up your employability skills!

PQ magazine and Rogo have joined forces again to host an online roundtable on what skills accountants need to ensure a successful career in 2025!

We will gather together experts from the industry around the table to discuss the rise and rise of what were once called ‘soft skills’.

These skills have become the real ‘differentiators’ in the job market, and we can tell you exactly what employers are looking for…

It really is no longer enough just to be good at the numbers!

Join us on Tuesday 25 February 2025.

The live roundtable discussion will begin at 4pm (GMT) and run for about 45 minutes.

Places will be allocated on a first-come first serve basis.

To sign up, register your interest at https://tinyurl.com/asyhcm9z

Pre-seen is pre-warned!

Download your free SBL pre-seen mock exam

PQ magazine has joined forces with top tutor Chris Cain, and together we will be producing a free SBL mock exam based on the pre-seen for the March sitting.

To get access to download the mock exam for free simply send an SMS to WhatsApp +07973508793.

We will be uploading the practice paper on 26th February.

The indicative contents answer will be released on 28th February.

Good luck in in March!

Stressed out profession

I am not sure I want to become a CFO now I have read the AccountsIQ survey in your January issue! How can it be worth working a six-day week just to get your job done? You would be so tired on your one day off that you wouldn’t be fit for any family fun.

I pity the families who have a CFO as a parent. OK, you can afford a nanny but you will never have time to create a real bond with any of your children. No amount of money is going to get that time back. And this goes heavily against the idea that we are all moving to four-day weeks

No option to pass

I have a question that I think only PQ magazine can answer: why is the ACCA APM option paper nearly 10% lower than the ATX option?

I passed all my ACCA exams until I took APM last December. How can I pass all the main exams and then fall down at what ACCA calls an ‘option’? I passed SBL and SBR, which are deemed the core strategic papers, but failed APM by quite a few marks.

I know people will tell me to switch to the easier options –either ATX or AFM – but I now have a bit of a bee in my bonnet. I am retaking APM in March and I am determined to be one of the third of sitters who actually pass this time around. Wish me luck.

Name and address supplied

Private equity issues

Grant Thornton’s tie-up with Cinven shows the rise-and-rise of private equity in our industry has now reached even the big UK chartered firms.

I was surprised to read Lord Sikka’s comments on the subject (PQ, February ’25). He does say the alarm bells should be ringing, but he seems to feel audit is already broken with or without

you trying to tell us we have chosen the wrong profession? Apparently, 74% of accountants have experienced some form of burn-out in the past 12 months, a survey found.

– this simply won’t happen for CFOs.

Then in your February issue your lead story on page 4 is ‘Burnt-out accountants!’ Are

We must try to create a more resilient profession and I think the accountancy bodies need to do more. I know there are lots of nice sections on their websites covering wellbeing, but I think they need to be more proactive. For a start they need to create self-help groups and provide counselling services as part of those hefty membership fees. If they say they are too big for that then they need to get smaller.

Name and email address supplied

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

the emergence of private equity. I worry that he is happy to see the whole situation get worse, so the government has to finally act. But there are already massive issue with auditing local authorities, many of which can’t sign off their accounts. This is not something we can let spread into private companies, so the system we have has to be made to work.

Robert Bruce, Prem Sikka,

However, he is right to point out that you don’t have to be a pilot to run an airline, so the same should be true of accountancy firms. Maybe this is the way to reshape the industry, creating multi-disciplinary firms with professionals from all disciplines bring new ideas to reshape accountancy.

Name and email address supplied.

Top tutor Andrew Mower recently posted some great advice on LinkedIn. He said 90% of ACCA students who fail make this mistake: they don’t structure their answer based on the verb in the question.

When you answer a question, he said, you must remember to address the verb:

• Discuss – discuss both pros and cons. Give a balanced answer.

• Recommend – give advice on appropriate action. Give a clear decision and tell them what to do.

• Evaluate – consider all aspects, positive and negative. Give evidence to support your statements.

• Calculate – do calculations in the spreadsheet. Explain your logic and justify your decisions. So it’s difference structures for different verbs.

If you are sitting ACCA’s SBR then you need to follow Jo Tuffill on LinkedIn. She recently explained growth versus sustainability is the biggest economic issue facing not only governments but also business. Current economic policy talks net zero still, but is it really?

Norwegian energy giant Equinor is halving investment in renewable energy over the next two years while increasing oil and gas production. CEO Anders Opedal said he was confident that Rosebank – a giant new oil field in the North Sea – would go ahead. He said: “We are scaling down our investments in renewables and low carbon solutions because we don't see the necessary profitability in the future.” Tufill explained that, in the ACCA SBR syllabus, the “accounting regulation and environment” section of the syllabus focuses on how sustainability reporting impacts the way companies present financial information, with a key emphasis on effectively communicating the environmental impact of their operations to stakeholders.

If you have

LASTORDERS!

The deadline for nominations looms large – get your entries to us asap

This really is it – we need your nominations and we need them now!

Deadline for all entries is Friday 7 March, so if you want to be one of our PQ magazine award winners for 2025 we need your entries.

Our judges are keen to get going – it is their job to pick the shortlist and the final winner for each category. The only two awards decided by the PQ magazine team are Accountancy Body of the Year and the Editor’s Choice – the rest are up to our independent panel.

We have an exciting new venue planned this year, so pencil 28 April into your diary. And we can promise you the usual great night, with great company and

top-notch entertainment! The PQ magazine awards are like no other accountancy awards out there. But we are getting ahead of ourselves in the excitement of our 22nd awards ceremony.

Before all that we need your 500 words on why you/your nominee

should be shortlisted for one of our coveted shiny PQ trophies. Download the application form by going to https://tinyurl.com/4bdxnzwz or go onto our website and click on the ‘pq awards’ bar at the top of the home page to download the form there. When your entry is ready email your completed nomination to us at awards@pqmagazine.com

You can of course just send your entry in an email if that makes it easier, but please make sure you clearly state the category you are entering.

Once again, the deadline for all entries is Friday 7 March 2025 –remember, you can’t win it if you ain’t in it!

TOPLECTURER

Our Public Sector Lecture of the Year for 2024 was University of Winchester’s Lim Keong Teoh. In 2023 it was University of Manchester’s Jenni Rose, and in 2022 it was Ishani Chandrasekara from Queen Mary University of London.

THE 2025 AWARD CATEGORIES

 PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

ACCOUNTANCY GRADUATE OF THE YEAR

ACCOUNTANCY APPRENTICE OF THE YEAR

STUDENT BODY OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY COLLEGE OF THE YEAR – PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR – PRIVATE SECTOR

ONLINE COLLEGE OF THE YEAR

LECTURER OF THE YEAR –PUBLIC SECTOR

LECTURER OF THE YEAR –PRIVATE SECTOR

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY PODCAST OF THE YEAR

INNOVATION IN ACCOUNTANCY

BEST USE OF SOCIAL MEDIA

TRAINING MANAGER/ MENTOR OF THE YEAR

GRADUATE/ APPRENTICESHIP TRAINING PROGRAMME OF THE YEAR

ACCOUNTANCY TEAM OF THE YEAR

ACCOUNTANCY PERSONALITY OF THE YEAR

Lim Keong Teoh

Ishani Chandrasekara

Jenni Rose

Memories of a special night

Meet Grazia Maria Pia Salcuni, our current PQ of the Year

Paul Merison, Director of ACCA Courses at LSBF and a past winner of the PQ Lecturer of the Year award, caught up with the 2024 PQ Student of the Year, Grazia Maria Pia Salcuni, to share memories of awards night and get to know her in a bit more detail.

So take me back to awards night in April 2024 – what are your memories?

I was sitting on the LSBF table with some of my tutors but LSBF also invited along my managers from work, which added a bit of pressure to the occasion. But when I won it was amazing – I just stood still like a statue and had to be pushed in the direction of the stage. To have my managers from work and my tutors there made it really special and even when I went home that night clutching the trophy it still had not registered that I had actually won.

When did it hit home that you had won?

The following morning when I woke up with the trophy on my bedside table – for a moment wondered if I was having a very strange dream. I took it to the office, and when colleagues asked me how the awards had gone I just smiled and pointed at it.

How has the exam journey continued since then?

Since winning I have cleared another three exams and am down to my final two now, so hopefully another celebration is coming in the summer if all goes well.

What career path are you taking?

I work for Aspen, an insurance company, as an investment accounting analyst. I get to do a lot of accounting in my role and am learning a lot, especially when the auditors are in and asking interesting questions. I have managed to sit in

on some high-level auditor meetings and they have enhanced my understanding. I think it really helps my studies that I can see elements from class in my work.

Why did you choose accountancy and ACCA in particular?

I did a finance degree and accountancy always seemed a sensible fit because of the broad business understanding it provides in addition to the specific technical accounting skills. My employer offered me a choice of accounting qualifications and ACCA seemed the most rounded for my current and future career goals.

What advice do you have for other students to help them achieve exam success?

Accept that your social life is often going to have to take a back seat or disappear altogether and throw all your spare time and holiday allocation at your studies if you can. I have a very busy job and my employer works me very hard. As well as work, I have to fit in a lot of travel as my entire family are all back in Italy and we are very close, so I have to be super organised to get the study done. I have learned to accept that the work-life balance is often far from ideal, and not to beat myself up to much about it when it is going wrong, but everyone doing professional exams alongside work needs to keep positive and remember the rewards at the end of the process.

But also, when studying be curious. Don’t just accept the facts presented to you, demand to know why. The more you question, the more you discuss, the more you challenge your tutor, the more your brain is forced to work, the more interesting the subject becomes, and the better you will remember it and be able to apply it on exam day.

My tutors say they find me annoying for doing this, but they call it “good annoying”!

Where next?

I grew up on a farm in rural southern Italy and sustainable life is very important to me. I have been involved with my company’s sustainability reporting and I would very much like to expand my experience in that area – but for now I am laser-focused on finishing the exams and nothing else!

How to conquer exam fear

Mark Foley explains how you can overcome the fear that naturally comes when the time to sit an exam is approaching

There’s a point in every CGMA candidate’s study journey when doubts about exam readiness will lead them to contemplate rescheduling or cancelling an exam. Indeed, for some, it’s simpler just to put off exams altogether.

This article, dear reader, isn’t necessarily aimed at encouraging you to take an exam (there are many entirely justifiable reasons why it’s appropriate to delay an exam). However, it’s also true that I’ve met hundreds of candidates over the years who, in my opinion, were exam ready and just needed a little convincing.

I’ve been reading PQ magazine for many years now. I’ve lost count of the number of articles focusing on exam readiness and preparation. I find this interesting because it shows that this topic spans generations of accounting and finance candidates, a perennial issue that the majority of candidates will face.

In other words, you’re not alone.

Root causes of exam fear

It’s just human nature to reflect, review progress and feel uncertain about being entirely ready for an exam. Couple this with balancing other factors such as work, family commitments, physical health and mental wellbeing, and it’s really no surprise that, at some point, you contemplate putting off, or cancelling altogether, an exam.

Believe me, I too have had doubts (numerous times), but in my case, if I’m truly honest, my lack of exam readiness had more to do with my own fear and anxious feelings than lack of preparation.

Now if you’d have asked me at the time why I didn’t feel ready, I would have said, ‘I just don’t

have the time’, or ‘there’s a lot going on right now’. In hindsight they were all just excuses – I was afraid of taking the exam itself. There are many reasons you can feel this way. I’ve listed a few below that may resonate with you:

• You feel like you never manage to truly show your full abilities in an exam.

• You failed a previous exam.

• You don’t want to let anyone down and feel like a failure.

• The formality of an invigilated exam just makes you nervous.

Beating the fear

These root causes aren’t something that you can just ‘snap out of’ – they feel very real. However, for all of the reasons you may put off taking your next exam, there are also some simple strategies you can use to help you overcome exam fear. Here are just a few examples:

• Talk about it: exam fear feels like a singular issue that only you are going through – it’s just not true. It’d have helped me enormously when I was taking my professional exams to know that my peers were feeling the same way (something I found out after my exams!). But, if we all face the same issue then no one has an advantage over anyone else in the exam. Take comfort from this.

• Take ownership: practise exam questions and build exam familiarity. Nothing will help you beat fear better than simulating the exam style with standard practice questions.

• Have a plan: preparation is key, so you should have a revision schedule and an exam day plan. By methodically covering

CGMA syllabus topics, you will build your confidence and reduce exam fear.

• Learn effective study habits: from taking tech breaks to using the Pomodoro technique, I highly recommend that you read past editions of PQ magazine, which have plenty of articles packed with useful tips.

• Make self-care a priority: look after yourself and find time in your revision schedule to put your physical health and mental wellbeing first (I owe my personal self-care to Cadbury’s chocolate bars while studying. I will always be in their debt!).

• Stay focused on your goal: don’t forget the reasons you started your CGMA journey in the first place. What are you trying to achieve? What difference will becoming a Global Chartered Management Accountant make to your life?

Last but not least…

Keep in mind that it’s very rare for any candidate to ‘peak’ in their actual exam as the process is too artificial to tell the whole story and reflect your true potential. Always remember you don’t need to perform to the best of your abilities, just enough to pass the exam.

It’s been many years now since I took my professional exams, but I still recall, as if it was yesterday, how it felt trying to combat my own exam fears.

I want to send all of you, who are currently preparing to take an exam, my very best wishes. It’s all worth it, I promise.

• Mark Foley, Senior Director – Global Academic Progression at AICPA & CIMA, together as the Association of International Certified Professional Accountants

An essential aid to passing ACCA

Student Accountant editor Victoria Morgan shares information about the latest updates to a popular ACCA app

Whether you’ve just started out with ACCA or are close to achieving membership, there is plenty in the SA app for you.

Last year, nearly 220,000 of you accessed content in the SA app. We want to make sure all students are aware of the SA app and get the most of all its features.

The SA app remains a key source of ACCA information for all students at all stages of their studies and includes exam support, ACCA updates, access to important ACCA resources, careers and wellbeing advice, global news analysis and puzzles.

One of the app’s main features for exam taking students is the ‘My exam’ section. Here, you can select the exams you’re planning to take and get quick access to

everything you need: webinars, videos, podcasts, articles, exam updates and other free resources – all relevant to the exams you’re taking.

In addition, the ‘My exam’ section includes general information on the ACCA Study Hub and Practice Platform, as well as regular updates on all of the free ACCA resources available to help you succeed.

The SA app ensures you’re well informed about all things ACCA.

You can also sign up to receive regular push notifications to keep up-todate with what you should be doing during your exam preparation.

Recent reviews

• “Student Accountant app is the best app I have used so far. It informs me every time with the latest stories from around the world. I

recommend this app for all accountants. It is a musthave.”

• “It helps me to be on the right track of studies. I can keep tabs on what should I do time to time. Most importantly, I get inspired.”

• “Well summarised and helpful for ACCA students.”

• “Excellent content.”

• “The app is seriously amazing and helpful for exam preparation.”

Have you already started using the SA app? Your insight is valuable, so let us know what you think about it – good or bad – so that we can make it even better for you. Email the SA team at studentaccountant@ accaglobal.com

We’re always improving the app based on student feedback, so please do share any ideas you have for new features. If you’ve not used the app yet, why not download it and give it a go.

Proven to boost your exam results

Study Hub is proving to be a great success for ACCA students, increasing exam results by as much as 18%*. With online access to study chapters, practice questions, flashcards and short quizzes, it streamlines revision and enhances your understanding.

Use Study Hub as an essential part of your exam prep and boost your chances of success.

*Based on pass rates of Study Hub users vs. non-users for the September 2023 session-based exams.

Fear APM… not!

Brigita Petrova explains how you should tackle the ACCA exam which consistently has the lowest global pass rate – Advanced Performance Management

Reaching the ACCA options level, APM seems to be the least popular choice among students. Here are a few reasons why students avoid it and why you should not:

Relevance

Many are left with the wrong impression that APM is not relevant to their career, as they are not management accountants.

Did you know that… …APM is one of the most interesting and practical subjects across the whole ACCA qualification? Focusing on achieving objectives via decision making, planning and control, while managing various stakeholders, it is incredibly relevant to everyone both in a professional and in a personal context.

Don’t we all have plans for the year ahead and beyond? Don’t we aim to reduce and control our costs, improve our reputation, care about the environment and aim to maintain positive relationships? Don’t we all have to deal with subjective matters, have goals and measure in some ways our progress towards them?

Try this

Open up for the essence of the concepts and relate them to real life.

Take value for money, for example. Say you are a cyclist and need a high-visibility, waterproof jacket. Wouldn’t you:

• shop around and buy what you like in a sale, rather than pay full price (Economy);

• be unhappy if it doesn’t keep you seen and dry (Effectiveness);

• prefer to use it for a few years rather than a couple of seasons (Efficiency).

If you start spotting various APM concepts around you, you’d easily see them and their implications in exam scenarios. Plus, one day you might choose to run your own business or become a strategic level manager – then you’d be grateful you chose APM!

PM dislike

Concepts such as cost behaviour, budgeting, performance measurement and investment appraisal are introduced at the lowest ACCA level (in paper MA) and you keep seeing them as you progress through PM and even FM. You should also have the accounting knowledge by the time you get to APM.

Finally, the APM syllabus is relatively small, with little new knowledge, and most calculations are unstructured so you could do them even if not studying APM.

Try this

Use ACCA’s ‘knowledge refresh’ tool to brush up on the key topics. Ensure you understand the reasoning behind them, what they try to achieve and when they could be useful. Then take that into an APM case, read what the CEO wants from you and based on the case clues (there are always plenty) and your commercial acumen, provide the required advice.

Lowest global pass rates

APM sits at the bottom of ACCA’s global pass rates – not as a one-off, this has been a fact for the past 33 exam sittings! Scary statistics, making many students write off APM instantly, without even trying to find out what the subject is about and why students fail.

PM tends to be the least favourite subject of most students at Skills level. The fact they didn’t enjoy it makes them believe they’d hate its advanced version and be very poor at it.

Did you know that…

…despite their very similar names, APM is examined very differently to PM? The focus is on understanding those popular concepts and your ability to use them in work simulations. You are required to think strategically and are past the need to recite definitions, create payoff tables or spend ages wondering whether to select answer a) or c) in your objective test question.

Even the brought-forward knowledge in APM comes from a number of previously learnt papers.

Did you know that… …a lot of those who pass actually do so at their first attempt? And the majority of the sixty-something percent who don’t are students relying on self-study (having worked well for them with previous papers), who do not get much guidance on how to use the subject knowledge for answering questions, get no feedback on their performance and are not even able to understand what the questions in the exam were asking or why they have failed, despite writing a lot.

Try this

Don’t take the plunge on your own. ACCA offer a wealth of resources – use them wisely. Also, make sure you reach out to an experienced APM tutor, who can help with structured study, understanding and exam technique, and very importantly, give you continuous feedback on your question practice.

APM is a subject where it is hard to know whether what you are doing is what scores you the marks, and is definitely one to focus on quality rather than quantity in your answer.

• Brigita Petrova FCCA is an APM expert and former PQ Tutor of the Year

A life-changing opportunity

The application date for the AIA Scholarships programme is approaching fast, so it really is the time to sign up

If you want a career in accountancy or audit, time is running out to apply for the AIA Scholarship Programme. The deadline is March 1 2025, so act now to secure this fully funded opportunity to gain the AIA professional qualification and take a big step towards your future.

The Association of International Accountants (AIA) is committed to making accountancy more accessible by offering scholarships to talented individuals who may not have the financial means to qualify otherwise. These scholarships help break down barriers and encourage diversity in the profession.

Carl Jepson, AIA’s Director of Sales and Marketing, said: “Helping students from underrepresented backgrounds achieve their career goals is at the heart of what we do. These scholarships make a real difference, providing financial education and unlocking the potential of future accountants.”

Two scholarship options

AIA offers two types of scholarships, both covering full costs for the AIA professional qualification, including exemption fees, exam fees, and tuition through the AIA Achieve

Academy.

• AIA Accountancy Scholarship UK

Five scholarships are available in the UK, with two specifically reserved for candidates from lower-income backgrounds as part of AIA’s commitment to Access Accountancy. This initiative helps promote social mobility and ensures that financial barriers don’t stop talented individuals from entering the profession.

• AIA Commonwealth Scholarship Open to students from Commonwealth nations

outside the UK, this scholarship supports AIA’s mission as a Commonwealth Accredited Organisation to advance financial education and professional development worldwide.

Chance to shape your future

These scholarships provide more than just financial support. They open doors to valuable industry connections and set recipients on a path towards a successful career in accountancy or audit. Previous scholars have gone on to secure top roles in the sector and contribute to positive change in the financial industry.

To apply, candidates need to submit a short essay on one of two topics: ‘What would this scholarship mean to you?’ or ‘Why is a career in accountancy important to you?’

Successful applicants will show a clear vision for their future and how they want to make a difference in the profession.

With just weeks left until the deadline, don’t miss this opportunity. Visit https://www. aiaworldwide.com/study/scholarships/. For full details and application guidance.

Don’t forget, the deadline is March 1 2025. Apply now and take your first step towards a career in accountancy.

Embracing AI

Sara Abdaless shares her views on how AI can empower accounting careers, rather than threatening them with extinction

AI has the potential to transform accounting and finance, automating routine tasks and allowing professionals to focus on higher-value, strategic activities. It is being widely used in the industry, with companies including Quickbooks, Xero and Sage using AI-driven automation to streamline processes like data entry, reconciliations and financial reporting to enhance efficiency and reduce human error.

Whether we like it or not, AI is here to stay. By prioritising adoption of this new technology, with a mindset of learning how to make it work for you rather than fighting against it, you can become an in-demand translator of the data efficiencies it has to offer and distinguish yourself in a crowded job market.

Below are five key skills areas I believe will be essential for accounting finance managers of the future to develop to remain relevant:

Data analysis: It will take a strong technical knowledge of accounting to take advantage of the information AI provides and be able to interpret it correctly and spot any irregularities. Business intelligence: Developing fluency in programmes like PowerBI, Tableau and Google Data studio, paired with a solid foundation of accounting technical knowledge, can improve your efficiency and accuracy of strategic forecasting.

Programming: Strengthening your practical tech skills to be able to use programmes like Python to analyse data, and code and tailor it to the needs of various organisations you are working will offer a depth of analysis that can set you apart from the competition.

A thorough understanding of regulatory frameworks: Any AI implementation into your accounting practices must be compliant with legal, ethical, and regulatory standards and aligned with data protection regulations to safeguard sensitive financial information. This means accountants will need to have a deep knowledge of these frameworks to assess AI-generated results, and recognise potential risks and inaccuracies.

Critical thinking: AI has the potential to improve efficiency, but accounting professionals will need to develop strong critical thinking skills to appraise and audit the results of AI tools, maintaining a professional scepticism.

A degree apprenticeship

AI and other new technologies are undeniably changing\the accounting and finance industry. So, the question is, “How can accounting professionals keep up with a rapidly changing landscape and lead from the front?

The accounting finance manager degree apprenticeship offers an innovative workforce development pathway to upskill accounting finance professionals, bridging the gap between theoretical knowledge and practical application. By combining an accounting and finance degree with three years’ relevant work experience, learners are equipped with strategic decision-making abilities and the digital expertise necessary to stay technically relevant. Various government funding options are available, making degree apprenticeships a fantastic opportunity to upskill employees in a cost-effective manner.

• Dr Sara Abdaless, Associate Professor in Accounting and Finance, and Deputy Academic Director for the Centre for Apprenticeships – Northeastern University London

Northeastern University London is one of only a few providers that offer the Accounting Finance Manager degree apprenticeship. Flexible, primarily online delivery ensures that apprentices can balance professional responsibilities with their studies, and offers learners a fast-track to becoming chartered accountants with exemptions from the CIMA and the Institute of Financial Accountants (IFA). If you have any further questions about the accounting finance manager degree apprenticeship email apprenticeships@nulondon.ac.uk

A question for Tom

Tom Clendon

Question

explains the concept of ‘substance over form’ in the context of international standards

I was going over the IASB’s conceptual framework and come across the phrase ‘substance over form’. Can you explain what this means?

Tom’s answer

Well done for studying the conceptual framework! It’s really useful to understand its key aspects as it is the foundation on which the accounting standards are based.

Another way of saying ‘substance over form’ is ‘truth over law’. This means that if we are going to faithfully represent events and transactions then we should use our judgment to report the economic reality of what in essence is really going on (the truth, the substance) and not just blindly account for the legal form of events and transactions.

The principle of faithful representation (and therefore substance over form) is embedded in the IASB’s conceptual framework.

Whilst often the legal form of a transaction and its substance are in harmony, they can be in conflict. In that event we should account for the truth, the economic reality and not the legal form. Thus, substance OVER form.

There are several practical accounting examples where the principle of substance over form has to be applied but let me start with a left field example.

Mr & Mrs

A monogamous committed couple who raises their children in a loving home, but who eschew religion and tradition and so are not legally wed, can be referred to as a ‘common law husband and wife’. I would consider such a couple as in substance married, because of the way they conduct their lives, even if the state does not legally recognise their relationship as a marriage. But perhaps we should stick to accounting examples of substance over form.

IFRS15 Revenue from Contracts with Customers

Under this standard the timing of the recognition of a sale is not automatically trigged by either an invoice being raised nor legal title to the goods being sold passing. Rather, a sale is recognised when the

performance obligation under the contract is fulfilled. In other words, when what is promised under the sales contract is actually done. This is often evidenced by the actual delivery of goods, after all the customer has contracted to get the goods.

So, consider the cycle of a sales transaction where an invoice was raised in January for the sale of goods where legal title passed in February, but the goods were delivered to the customer in March and who only pays up in April. In this case it is appropriate to recognise the sale in March as this reflects the economic reality and substance of the sale.

A lawyer may disagree and try to argue that legally the sale took place earlier than that – but us accountants have to hold our ground.

IFRS16 Leases

When a lessee rents an asset, in accordance with the contract they will not legally own the asset. However, IFRS 16 Leases requires that the lessee does recognise the asset on their statement of financial position. This is because

by leasing the asset, the lessee controls the asset, has a right to use the asset and gets the benefit from using it.

A lawyer might argue that the lessee should not report the asset in their statement of financial position on the grounds that the lessee does not have title to the asset. But because of the principle of substance over form the lawyer would be wrong.

The conceptual framework gives us the definition of an asset being based on the principle of control rather than legal ownership. We can see how this definition has also influenced the accounting treatment required by the accounting standard on leases.

Conclusion

Substance and form don’t always conflict but when they do the correct accounting is to follow the truth and not the law. After all, accounts are signed off as being true and fair, not as being legal and correct.

• Tom Clendon is an online ACCA SBR lecturer and podcaster. See www.tomclendon.co.Uk

What the AFM examiner thinks…

Examiner reports are a goldmine of tips into what the markers want. Andrew Mower picks out the key messages from the September/December 2024 examiner’s report

Question 1 (Northney Co)

This was the big 50-mark question, covering risk management and treasury methods, with 10 professional skills marks.

Here are the three key messages from the examiner for hedging questions:

• Be specific and apply knowledge: don’t just discuss general concepts. Relate your answers directly to the scenario’s details (for example, Northney’s relocation, the specific country, etc.).

• Structure and clarity are crucial: use clear tables (especially for netting calculations) and a step-by-step approach for complex calculations like interest rate collars. Clearly state buy/sell decisions and contract numbers.

Sub-headings are highly recommended for longer answers (like risk assessment).

• Focus on rationale: for hedging decisions, explain why a specific method (like futures or collars) was chosen.

Don't just list pros and cons – connect them to the specific needs and circumstances of the company in the scenario

Question 2 (Mortexa Co)

This was a 25-mark question, covering equity valuations, impact on wealth and competition regulation, with five professional skills marks.

Here are the three key messages from the examiner for a valuation question like this:

• Interpret your calculations: don’t just calculate numbers; explain what they mean. For example, in acquisitions, calculate the synergy gains and explain how they contribute to the combined value.

Even if your calculations are wrong, demonstrating your method and interpreting the (incorrect) results can earn partial credit.

• Consider all stakeholders: in shareholder approval questions, analyse the perspectives of both companies’ shareholders. Don't just focus on one side. Base your analysis on the financial impact you’ve calculated.

• Apply concepts to the specific scenario:

when discussing topics like Competition Authority concerns, don't just list general principles.

Explain how those principles apply to the specific companies and market described in the scenario. Focus on relevant issues like market share and competition effects.

Question 3 (Zulla Co)

This was a 25-mark question, covering dividend and FCF valuations, discussion of methods and reverse takeovers.

Here are the three key messages from the examiner for a valuation question like this:

• Revise valuation calculations: practice calculating valuations using both dividend discount models and free cash flow methods. Specifically, revise which discount rate to use, how to calculate free cash flows from profit figures, and how to deal with perpetuities.

• Analyse and interpret your results: don’t just present numbers. Explain what they mean and why different valuation methods might produce different results.

Demonstrate critical thinking by discussing potential limitations and uncertainties in your estimates.

• Understand IPOs and reverse takeovers: while basic knowledge of IPOs and reverse takeovers is important, go beyond simple definitions.

Be prepared to discuss the advantages and disadvantages of each approach in more detail, and consider the specific circumstances of the company seeking to list.

Five top tips from the examiner

1 Practice and understand your calculations

AFM heavily relies on good calculations. Focus on key areas like valuation (FCF), hedging (forex, interest rates) and investment appraisal. And don’t just memorise formulas; understand why they're used.

2 Clearly show your workings

Yes, the markers can see the formula within each cell – but that doesn’t mean your numbers are easy to follow!

Clearly lay out calculations, explain your logic, and justify your decisions. Even if your final answer is incorrect, you can earn credit for your method and reasoning.

3 Apply knowledge to the scenario

AFM questions are context-driven, so don’t give generic answers.

Relate your knowledge directly to the specific company, industry, and circumstances described in the scenario. For example, when discussing risk provide specific examples relevant to the country or industry mentioned.

4 Develop professional skills

Demonstrate scepticism by questioning assumptions and considering alternative scenarios.

Show commercial acumen by connecting your analysis to real-world business practices and using the information in the scenario. Clearly evaluate different options and provide wellreasoned recommendations.

5 Practice and learn from feedback

Past papers are your best resource. Practice regularly under exam conditions to improve your time management and identify your weak areas.

Carefully review examiner reports and model answers to understand common mistakes and improve your approach. Pay close attention to the wording of questions to ensure you’re answering what's actually being asked.

Note: you can find the full exam on ACCA’s practice platform.

• Andrew Mower is an AFM expert tutor – see AMALearnOnline. He also helps ACCA students with his free YouTube videos (@andrewmowerAFM)

YOUR MARCH EXAM TIPS

The March exams are just around the corner. Top tutors from BPP provide their guidance and tips for the sitting.

Performance Management PM

Section A will have 15 two-mark OTQs on a wide range of topics. Expect a mix of calculation and discussion-based questions, note that there are no marks for workings in this section. Good time management is essential as it is easy to get caught up in a tough calculation, which ultimately will only be worth 2 marks. Never be tempted to spend more than 5 minutes on any question in this section.

For section B there are three separate scenarios with five objective test questions on each scenario; each question is worth 2 marks. Questions are not dependant on each other and can be answered in any order. Each scenario could be a mix of topic areas or focused on one topic and will usually consist of two/three calculations and two/three narratives.

In section C there are two 20-mark questions, which could be from, but not limited to: budgetary systems, planning and operational variances, mix and yield variances, and evaluation of the company performance (either as a whole basis, or on a divisional basis). Familiarity with the CBE software is important as you may be expected to use both a word processing and spreadsheet format for your answer. Learn standardised layouts for calculations such as variances, learning curves and limiting factors. This will save you time in the exam and mean that you are less likely to make mistakes. The split of marks tends to be approximately 40% calculations and 60% discussion, so don’t neglect the written elements of this paper. Make sure that you always fully explain your ideas too. Interpretation and application are important skills that are tested in this paper so make sure you make full use of the scenarios that you are given in the exam.

Taxation TX (UK)

In section A there will be a wide range of topics tested as there are 15 OTQs. Tutors expect at least a couple of these OTQs to be devoted to the administration of income tax and corporation tax. So, candidates should ensure they are comfortable with the following:

• Due dates for the payment of income tax (including payments on account).

• Due dates for the payment of corporation tax (including instalments for large companies).

• Filing dates for the income tax and corporation tax returns.

• Penalties and interest for late payments and returns.

Other topic areas likely to be tested in section A of the exam are:

• VAT rules on registration, impairment loss (bad debt) relief, and the SME schemes relating to cash accounting, annual accounting, and flat-rate schemes.

• Inheritance tax due on lifetime transfers both in the donor’s life and on death.

• Statutory residence tests for individuals.

• Identification of groups of companies for

corporation tax loss reliefs and gains.

• Trading loss reliefs for both companies and sole traders.

In section B the questions will be similar to those of section A, but there will be a longer scenario to deal with. You will have to tackle three scenarios each with five OTQs. This means a slightly different exam skill is necessary as you have more information to work through, and each OTQ will require you to find the relevant information or data in that scenario. It is not a difficult skill, but you must practise an extensive range of section B questions from the practice and revision kit before attempting the real exam.

In section C you will face the longer, constructive response questions with scenarios and much more open requirements. Your answers will need to show not just sound technical knowledge, but also the application of that knowledge to the question you have been asked.

At least 50% of your revision time should be spent answering the section C questions in the practice and revision kit to build confidence and speed in a way that will also maximise marks.

1. Remember to learn your income tax and corporation tax pro formas.

2. Calculations which require no more than two or three entries into your calculator can be included in the relevant cell of your pro formas (e.g. time apportioning a salary). Calculations which are more complex (e.g. company car benefits) need

separate workings which are properly referenced (W1, W2 etc) and have a heading. Use the cell formulae to link the workings answer into your pro forma – then if you change the working the main body will be automatically update.

3. Attempt the narrative parts of the requirement – aim for as many sentences as there are marks, with each sentence containing something technical. Keep your paragraphs to no more than 3 sentences long.

4. Your exam will be in the CBE software and the spreadsheets have some differences to the software you may be accustomed to, so it is crucial you practice using the CBE software, especially for section C type questions.

5. Remember you cannot insert rows into the CBE spreadsheets. So, leave plenty of space on the page (especially when setting up pro-formas). You may need to add something in and you can always go back and move workings up the page. Show workings down the page, rather than across the page as it makes them easier to mark. Wellspaced answers are also easier to mark – and you always want to keep the marker happy. We know that the two longest questions will focus on income tax and corporation tax. These are likely to include the following:

• Employment benefits.

• Property income.

• Relief for pension contributions.

• Adjustments to profit to arrive at trading Continued on page

income for both companies and sole traders – in past sittings we have seen a number of questions whereby you have to correct errors in computations included in the scenario.

• Capital allowance computations.

• Chargeable gains calculations.

Finally, remember the pass mark is 50% so you don’t need to be perfect. If you don’t know something have a guess and move on. Sometimes you have to do that in order to get follow through marks in section C questions. If you make a mistake, but then use that incorrect figure later in a subsequent calculation, then that’s fine – you can only lose the mark once. In sections A and B never leave an OTQ unanswered – have a guess if you don’t know the answer. It might be right!

Financial Reporting FR

Section A will have 15 two-mark OTQs on a wide range of topics, including areas such as consolidation and interpretation of financial statements that will also be covered in detail in section C. Expect a few questions on non-core areas (e.g. sustainability following the issue of IFRS S1).

You must read the scenario, requirement, and answer options carefully and ensure you capture the correct information from the scenario to answer the requirement.

And, don’t leave any questions unanswered –there is no harm in guessing if you are unsure of the correct answer. There is no negative marking.

Section B has three separate case study scenarios with five OTQs on each scenario; each question is worth 2 marks. Each scenario could be a mix of topic areas (for example revenue and receivables are often related, as are PPE and leases), or focused on one topic and will usually consist of two/three calculations and two/three narratives.

Remember, questions are not dependant on each other and can be answered in any order.

For section C you will sit two 20-mark constructive response questions, one covering interpretations of financial statements and the other preparation of financial statements. One question is likely to be in the context of a single company and one in the context of a group, so you could be faced with a single company interpretation and a group preparation or vice versa.

Both questions will require knowledge from other areas of the syllabus, particularly the accounts preparation question which will have a range of adjustments covering various areas.

Accounts preparation questions may require full financial statements or extracts – read the requirement carefully. Students can expect questions on statement of profit or loss and statement of financial position, but should not forget comprehensive income, the statement of changes in equity, and the statement of cash flows.

A single entity accounts preparation question could be preparation from a trail balance or

restatement of given financial statements with common adjustments being for depreciation, revaluation and current/deferred tax (including deferred tax on revaluations) plus a mixture of adjustments on other syllabus areas e.g. leases, substance over form issues, financial instruments (change in fair value or amortised cost), share issues, government grants, inventory valuation, and revenue recognition.

Group accounts preparation questions will provide the separate financial statements (or extracts thereof) of the parent and relevant subsidiary(ies) and associate. Candidates should be prepared to set out the standard workings for goodwill, non-controlling interests, movements in net assets, retained earnings as those are commonly examined. Other common adjustments are intragroup sales of goods, intragroup sales of assets, dividends, and fair value adjustments.

ACCA has previously clarified that a consolidation financial statements preparation question could include up to two subsidiaries and one associate which allows additional scope for examining the disposal of a subsidiary (including as a discontinued operation).

Candidates continue to find the interpretations question challenging. In both single entity and group interpretation questions, you must avoid making generic statements about the movement in ratios and instead focus on using the information in the question to, for example: identify key changes in the period (e.g. change in

HEALTH WARNING

and identification and explanation of direct controls and description of test of control).

• Audit procedures (substantive procedures and tests of controls).

General advice: Where questions are based on a scenario it is essential that you use the information in the scenario to score the identification marks and then develop this to score the explanation marks.

The exam often provides a table for you to complete your answer. For example, audit risk questions will have a table with two columns, one for ‘audit risk’ and one for ‘auditor’s response’ with each properly explained point being worth one mark. Using this tabular approach encourages you to answer both parts of the question, therefore maximising your marks.

appear in section B of the exam.

Questions from syllabus section C are likely to be broad ranging, so a good broad knowledge of this syllabus section is important. Candidates are sometimes exposed by a weak understanding of working capital finance.

Questions from section D are likely to feature NPV with inflation and tax, however it is important to also be able to answer questions that include risk, leasing, asset replacement and capital rationing.

Section E questions often feature the calculation and analysis of a company's cost of capital. But don’t forget evaluation of financing options (debt or equity) can also be examined –make sure you practice this type of question as part of your final revision.

These tips should only be used in conjunction with proper study. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully.

sales mix, closed down an operation, purchased a new subsidiary); identify transactions that would cause inconsistencies between periods or between balances (e.g. revaluation of assets for the first time, particularly if the revaluation was at the end of the period); identify any changes in accounting policies or estimates, or classification (e.g. one company presents expenses as part of cost of sales whereas another presents as part of administrative expenses).

ACCA has previously clarified wording to emphasise the importance of the statement of cash flows in interpreting financial statements. Be ready for a question like this!

Audit & Assurance AA

In section A there will be three mini-case style scenarios, each with five 2-mark questions based on the scenario (total 30 marks). Each mini-case question will test single topic areas of the syllabus and so will test syllabus areas A, B, C, D or E. Expect questions in section A to focus on areas A and E.

All three questions (one 30-mark and two 20-mark questions) in section B will be broken down into sub requirements and be scenario based. Most marks in each question will test syllabus areas B, C and/or D.

Areas expected to be tested in questions 16 to 18 include:

• Audit planning.

• Audit risk (identification and explanation of audit risks from a scenario and explanation of the auditor’s response to each risk).

• Internal audit.

• Internal controls (identification and explanation of deficiencies in internal control and the recommendation of suitable internal controls,

Pay attention to the verbs used in question requirements as these indicate the number of marks available. For example, the verb “explain” requires a sentence and will score one mark if properly explained whereas the verb “list” simply requires you to list out information with no further explanation and this will score 0.5 mark per point.

Finally, it is essential you read the Examiner’s Reports which are issued twice a year after the June and December exam sittings. These are an invaluable source of advice and provide a sample section A OTQ case style question as well as three constructed response questions from the March/June and September/December sittings. Not only do they provide the example questions but these are accompanied by a commentary from the examining team, which gives guidance on interpreting the question requirements and common mistakes/areas of weakness noted during the marking process. These reports can be found on the ACCA website: https:// www.accaglobal.com/gb/en/student/examsupport-resources/fundamentals-exams-studyresources/f8/examiners-reports.htm

Financial Management FM

Questions in section A will often be knowledge based (testing your knowledge of key technical terms), and will balance out the questions in section B and C of the exam to make sure that all aspects of the syllabus are examined.

It is also likely that these questions will test your understanding of financial management and objectives (ratio analysis), as well as the economic and financial environment (financial markets, fiscal and monetary policies).

Section B consists of three 10-mark mini case studies. The case study will then be broken down into 5 separate 2-mark OTQs (so 15 questions in total). Areas expected to be commonly tested in this section are working capital management (e.g. the operating cycle, the impact of a change in credit period or accepting a factor’s offer), business or security valuations (e.g. methods of valuation), and financial risk management (currency risk and interest rate risk).

Section C’s two 20-mark questions will be broken down into sub requirements and be scenario-based. These two questions will focus mainly on syllabus sections C (working capital management), D (investment appraisal) and E (business finance). Whichever of these three topics does not feature in section C is likely to

Strategic Business Reporting SBR

It is vital that you read the examiner's approach article on the ACCA website. ACCA has also published several exam technique and technical articles that you should read as part of your exam prep. These are available in the SBR exam support resources section of the ACCA website www.accaglobal.com

The exam section A will be 2 questions, worth 50 marks in total – both are compulsory.

Question 1 - 30 marks

Q1 will be based on group accounting. This question may test any aspect of group accounting, including consolidated statements of cash flows, foreign subsidiaries and associates and JVs. The question will include a pre-populated spreadsheet containing a consolidated statement which you will have to adjust for information given in the scenario. The requirement related to the pre-populated spreadsheet will be worth between 10 and 14 marks.

Usually, the spreadsheet will require adjustments for amounts you have calculated or explained earlier in the question, if this is the case, an efficient way of tackling the spreadsheet is to make the required adjustments as soon as you have calculated or explained the issue in that part of the question, rather than wait and do all the adjustments together.

In the spreadsheet, you should lay out your answer as clearly as possible. Using a separate column for each adjustment is a good idea. Rather than relying on formulas in the spreadsheet cells, it will be helpful to the marker if you type out any calculations separately so that they can easily follow what you have done and therefore award any ‘own figure’ marks available if you have made a mistake.

You also need to make it clear in the spreadsheet whether your adjustment should be added or subtracted, otherwise you will not be able to gain the marks for that adjustment.

There are no marks available in the spreadsheet for a total column, so don’t waste your time adding the spreadsheet up. Timekeeping is key to passing this question. A recent examiner report identified that students were spending too long writing detailed answers to the first parts of Q1 and then not attempting the later parts. The marker cannot award more than the allocated number of marks for each part of the

question, so to maximise your marks, you must make sure you attempt each part of the question. Make sure you work out the time you have available for each question, and for each part of the question and then stick to it.

Question 2 - 20 marks, including two professional marks

Q2 will cover the reporting and ethical implications in a given scenario. Make sure you consider any threats to the fundamental principles of ACCA's Code of Ethics and Conduct in your answer.

Two professional marks are available in this question and going forward the examiner has stated that the question will make it clear what these marks will be awarded for.

Section B will be two questions (compulsory), worth 25 marks each

Section B can deal with any area of the syllabus and may be based on a short scenario, a case study with several parts, or an essay. It will always include a question or part-question involving the analysis or appraisal of information from the perspective of a stakeholder. Make sure you have a go at answering this question. There is no 'right' answer at this level – marks will be awarded for sensible points that have been applied to the scenario.

There are two professional marks available for the question that covers the stakeholder's perspective. To gain these marks, you must discuss the issue from the perspective of the stakeholder – e.g. if asked for the investor's perspective, you must answer from the investor's perspective!

Current issues are usually examined in section B as a part of a question (not a full question). However, current issues could be examined in either section A or section B of the exam. A question on current issues may require the application of existing accounting standards to a current accounting issue – for example, accounting for cryptocurrency, accounting for the effects of a natural disaster, or global event. General advice: Make sure you plan your time at the beginning of the exam (and stick to it) to ensure you don't over-run on a particular question – it is 1.95 minutes per mark (or 1.8 minutes per mark if you allocate 15 minutes to reading the paper).

Generally, you will be awarded 1 mark for each relevant well-explained point in the SBR exam. Make sure you make enough points for the marks available – for example, if the requirement is worth 8 marks, you should aim to make 8 relevant, well-explained points.

It will be easier for the marker to award you marks if you lay out your answers clearly, leaving space between your points. You can use the spreadsheet (and spreadsheet functionality) to do calculations. If you do use the spreadsheet, make sure you cross reference to any narrative discussion, if appropriate.

Some requirements state that you do not need to refer to an exhibit to answer that particular requirement. Where this is the case, then it is recommended that you follow that advice and stick to general discussion, rather than referring to the scenario.

Use the 'cut' and 'paste' tools wisely – e.g. do not cut and paste into your answer large sections of the exhibits as the examiner has stated in a recent examiner's report that this will be obvious to the marker, and will gain no marks. If you wish to use cut and paste, the examiner recommends just copying and pasting relevant parts of sentences and then adding your own comments.

Strategic Business Leader SBL

Strategic Business Leader (SBL) is ACCA’s case study exam at the Strategic Professional level. As with all other ACCA exams, SBL is examined as a closed book exam, and the pass mark is 50%. SBL builds on the knowledge that you have gained at the ‘Applied Knowledge’ and ‘Applied Skills’ levels. However, it does also have its own distinct syllabus content.

The March 2025 exam will:

• Be 3 hours and 15 minutes in duration.

• Include pre-seen information that is issued two weeks in advance of the exam.

• Comprise of further exhibits/information, three questions with two pr three sub-requirements. ACCA has indicated that the information in the pre-seen will not be examined directly, but will provide context and background for the exam questions (for example, the industry in question, the organisation’s history and background, board structure, KPIs, and competitor information). You need to be familiar with this information before you begin the exam.

The exam will focus on one main organisation (which has been introduced in the pre-seen information), and the question requirements will relate to that organisation. The exam will contain some additional exhibits (typically four or five) and the questions will be based on these new exhibits.

The questions in the exam are referred to as ‘tasks’. There will be three tasks in the exam, although these may include sub-tasks. All of the requirements (tasks; sub-tasks) in the exam are compulsory. Question requirements in the exam could assess and link several subject areas across the syllabus and will test your ability to

construct appropriate responses to practical problems an organisation is facing.

Every SBL exam will consist of 80 technical marks and 20 Professional Skills marks. Each professional skill will appear once per exam, for four marks.

General advice: The SBL exam is demanding, and as such you need to give careful consideration to how you will manage your time to make the most effective use of it. You are recommended to spend about 15 minutes reading the exhibits and starting to plan your answers (for example, identifying the exhibit, and information, which is most relevant to each task). This then leaves you 3 hours (180 minutes) to tackle each task. Since there are only 80 technical marks, this works out at 2.25 minutes per technical mark. So, if a task has 16 technical marks, and 4 professional skills marks, you should spend 36 minutes on it (16 × 2.25). No time is allocated for professional skills marks, as you earn the 20 Professional Skills marks by virtue of the way you attempt the 80 technical marks.

It is important to note that you can spend longer than 15 minutes reading and planning your answer if you choose to. The 15 minutes – 180 minutes split is just a recommendation. However, if you choose to spend longer on reading and planning then you will need to bear this in mind when you come to writing your answers, and adjust your time allocation for each task accordingly.

Regardless of the time allocation you choose, it is crucial that you stick closely to your timings, to ensure that you do not spend too long on one task to the detriment of those you are yet to attempt.

Planning your answer: Clearly, if you have gone to the trouble of preparing an answer plan it is important that you use it when writing up your answer. To get the most from your answer plan, it is therefore important that you include as much detail as you think will be helpful when the time comes to write up your answer.

Numerical analysis: Some question requirements may require you to conduct some numerical analysis. For example, you may be asked to analyse the performance of the organisation feature in the exam, or a potential investment it is considering. When doing numerical analysis, though, it is important that you focus only on performing any calculations that are going to support your answer and provide you with something to talk about. Producing lots of unnecessary calculations for the sake of it will not earn marks, and will only serve to waste time in the exam.

Using computer software: Ensure you practise

timed exam questions using the ACCA CBE software. You need to be comfortable reading and highlighting the exhibits on the screen, as well as taking notes in the scratch pad. It will be easier if you plan your ideas and set up your answer structure in the software, in the form of headings. The exam software comprises a word processor, a spreadsheet, and some presentation software. The word processor should be used for discursive answers (e.g. reports; memos; letters) and is likely to be used for answering most of the tasks. Any calculations you perform should be in an appendix in the spreadsheet software. Tasks requesting slides should be completed in the presentation software.

Appropriate use of theoretical models: To stand the best chance of passing the SBL exam, you will need to have a good understanding of the entire syllabus. However, it is important to remember that tasks in the SBL exam will not ask you to simply regurgitate your knowledge of a particular topic or theoretical model. The task requirements test your ability to apply your understanding of the topics covered in the SBL syllabus in the context of the question scenario (for example, to provide advice to the Board about how to respond to a particular situation or issue). Furthermore, tasks will not specifically ask you to use a particular model. Whether you use a theoretical model when constructing your answer will be a matter of judgement that you need to weigh up in the light of the information presented to you in the exam. Doing plenty of question practice in the lead up to your exam is the most effective way of developing your judgement in this area.

Advanced Performance Management APM

Q1 section A: Q1 of the APM exam will focus on a range of issues from syllabus section A (strategic planning and control), section B (performance measurement systems and design) and section C (strategic performance measurement).

Section A (50 marks) contains one question broken down into sub requirements. You will often be required to link a business’s mission to its performance objectives using the concept of CSFs and KPIs. You may well also have to critique and recommend improvements to performance reports and the balanced scorecard and/or information systems could well be tested in this context.

Assessing the performance of an organisation is likely to be tested and this could include benchmarking as a theme. Financial performance measures (ROCE/RI/EVA etc) are also likely to be examined in this context, but don't neglect non-financial issues from syllabus section C such as quality management, value for management and reward systems.

Q2-3 section B: ACCA has said that one of two section B questions will come from syllabus section D (performance evaluation). This means you need to have sound knowledge of the balance scorecard, building block and performance pyramid models. You will also need to have a good working knowledge of activity based management (ABM) and value based management (VBM).

The other question can be sourced from a variety of syllabus areas including quality management, information reporting (e.g. big

data, lean information), HR frameworks (e.g. reward & appraisal systems), transfer pricing and environmental management accounting. General advice: APM is primarily a skills-based exam which tests the ability to apply knowledge to practical problems. This is now even more important as 20% of the marks are awarded for professional skills. Make sure you aware what these skills are and that you are confident in your ability to integrate these into your answer to the technical requirements of a question.

However, application of knowledge is only possible if you have a good range of technical skills in place. So, even though APM is not about reciting technical knowledge, it is vital that you ensure that you have a good broad knowledge of core technical areas.

Advanced Taxation ATX (UK)

The exam will comprise of one compulsory 50-mark question within section A. The requirements will be detailed in the manager’s email marked ‘work to be carried out’ and there will be several exhibits containing further information. The answer will need to be prepared in a specific format as set out in the manager’s email which will include mark allocations for the sub-requirements. Due to the size of the question it is possible that the scenario could involve more than one client or a personal client in addition to a corporate client. The question will comprise of 35 technical marks, 5 ethics marks and 10 professional skills marks. Each of the four professional skills will be tested.

Section B will comprise of two compulsory 25-mark questions. These will be in a more succinct, note form style, and will comprise of 20 technical marks and 5 professional skills marks. A minimum of two of the three professional skills will be tested in these questions (not including communication).

The exam will test candidates’ ability to analyse and evaluate the tax implications of various situations, numerical calculations will only be required to assist in producing an answer and no purely numerical questions will be set.

Since the introduction of the professional skills marks students have more time to attempt each question than under previous sittings. The ACCA has stated that the additional professional skills marks should not be considered as additional requirements but that the extra time they allow should be used for planning and thus to prepare a more comprehensive answer.

Topics/scenarios we would expect to see are:

• Personal income tax scenarios which could involve: investing in a pension; investing in EIS, SEIS or VCTs, share schemes; employment income possibly with termination payments; a personal service company; property income or a takeover.

• Unincorporated business – particularly including loss reliefs, partnerships or basis period rules.

• A question focussing on overseas issues –this could be income tax, capital gains tax, inheritance tax or a corporate scenario.

• Capital gains tax versus inheritance tax including availability of reliefs.

• Corporate scenarios – likely to focus in more depth on intangibles; research and development; losses; corporate groups or consortia.

• Special corporate scenarios such as liquidation; purchase of own shares; close or investment companies.

• A business transformation scenario question such as selling a sole trade business, incorporation, or, in a corporate context, the sale of shares versus the sale of trade and assets.

• Other common types of question/calculation to expect are:

• Reviewing a pre-prepared computation to spot, explain and correct errors.

• Calculations such as “tax saved through an action”, “after-tax proceeds”, “the value of a post-tax inheritance”, “net spendable income” or the “net of tax cost of something”.

Don’t forget that across the scenarios you can expect to see VAT marks available. Partial exemption rules, VAT on land & buildings, transfer of going concern, the capital goods scheme, overseas VAT transactions, and registration/group registration/deregistration tend to be frequently examined.

There will also likely be a couple of marks for stamp duty points if you remember to think about it in your planning.

Finally, don’t forget your basic administration points are also likely to be examined – when do we need to pay tax, when do we file a return and what if either of those are late?

Advanced Audit & Assurance AAA

Recent AAA exams have contained no real surprises, although you should be prepared for the look and feel of the embedded email and supporting exhibits and the split of both technical and professional skills marks.

Section A will comprise a case study, worth 50 marks, split into 40 technical marks and 10 professional skills marks, and will be set at the planning stage of the audit, for a single company, a group of companies or potentially several audit clients.

Candidates will be provided with detailed information, which will vary between examinations, but is likely to include extracts of financial information, strategic, operational, and other relevant information for a client, as well as extracts from audit working papers, which could include the results of analytical procedures. The date will be set as 1 July 20X5 unless you are told otherwise.

Candidates will be required to address a range of requirements, from syllabus sections A, B, C and D, thereby tackling a real-world situation where candidates may have to manage a range of issues simultaneously in relation to planning, risk assessment, evidence gathering and ethical and professional considerations.

Ten professional marks will be available in section A and will be awarded based on the demonstration of professional skill within a candidate’s answer, including communication, analysis and evaluation, professional scepticism and judgement, and commercial acumen.

Section B will contain two compulsory 25-mark questions, with each being predominately based around a short scenario. The marks will be split into 20 technical marks and five professional skills marks. There are no optional questions in AAA.

Continued on page 32

One question will always test syllabus section E, and candidates should therefore always be prepared to answer a question relating to completion, review, and reporting. There are a number of formats this question could adopt, including, but not limited to, matters to be considered and evidence expected to be on file, a going concern assessment, the impact of subsequent events, evaluating identified misstatements and any corresponding effects on the auditor’s report. Candidates may also be asked to critique an auditor’s report or a report which is to be provided to management or those charged with governance.

The second section B question can be drawn from any other part of the syllabus, including sections A, B, C, D and F. Syllabus section G on current issues is unlikely to form the basis of a question on its own, but instead will be incorporated into the case study or either of the section B questions depending on question content and the topical issues affecting the profession at the time of sitting the exam.

Five professional marks will be available in each Section B question for demonstrating professional skill in analysis and evaluation, plus at least one of professional scepticism and judgement and commercial acumen.

This is a technically demanding exam which tests auditing knowledge from both AA and AAA. All three exam questions will require you to apply this knowledge to the scenarios given: the professional marks will be awarded on the strength of your application of knowledge to the situation presented in each of the exhibits. Apart from poor auditing knowledge, lack of success usually comes from poor analytical skills, poor application, poor judgement. and poor timekeeping.

This subject can also test topical issues which have been covered by the AAA examination team’s technical articles (e.g. quality management in September 2022, and the impact of data analytics in September/December 2020).

Check out the examining teams two articles on quality management, two articles on planning questions and risk, plus another two articles that discuss recent developments in social, environmental and sustainability reporting. There are also ‘Topic explainer’ videos on areas such as quality management, audit procedures and prospective financial information (forecasts) that you may find of use.

The examining team has advised that certain less-frequently examined topics such as audit committees, money laundering, internal auditing and outsourcing could make an appearance, so

you should make sure you have covered a good breadth of subjects in your revision. Note that for the syllabus examinable from September 2024, there has also been an increased focus on sustainability assurance following the issue of the IAASB’s exposure draft of ISSA 5000.

Advanced Financial Management AFM

All AFM exams will have questions which have a focus on section B of the syllabus (advanced investment appraisal) and section E (treasury and advanced risk management techniques). These syllabus areas are therefore high priority areas for your revision.

Q1 (50 marks): You can expect questions to cover at least two different syllabus areas. This emphasises the importance of having a good broad knowledge of the syllabus and not targeting your final exam revision on a small number of syllabus areas.

Questions are often based on core syllabus areas such as: project appraisal (domestic or overseas), business valuations and business/ financial reorganisations; these areas often include cost of capital calculations.

Risk management may also feature in different ways, e.g. value at risk, real options, interest rate

or current hedging, and risk management (e.g. mapping).

Q2-3 (25 marks each): Areas to be tested:

• Risk management (currency or interest rate) including the functions and structure of a treasury department.

• Dividend policy and general financing issues. • Real options, including limitations of approach. • Business reorganisation.

General advice: The examining team have stressed that exams are designed to make question spotting extremely difficult for this paper, so it is important to have a broad understanding of the key aspects of each syllabus area.

Don't over-emphasise numerical analysis in your final revision – remember that this paper is not a maths exam and, in all exam questions the examiner is interested in your ability to communicate well and to give good management advice that relates to the scenario in the question. This is now even more important as 20% of the marks are awarded for professional skills. Make sure you are aware what these skills are and that you are confident in your ability to integrate these into your answer to the technical requirements of a question.

Contract law explained

Karen Groves explains a subject area that students studying the Business Environment unit often find difficult

As part of your AAT Level 2 studies you will learn about contract law in the Business Environment unit. It is important that, as an accounting professional, you are aware of the main elements of contract law, as they form the basis of most business transactions.

The law of contract determines if a promise is enforceable by a court of law (in other words, is it legally binding?). A contract is a legally binding agreement between two parties. The offeror is the party making the offer, and the offeree is the party accepting the offer.

For a contract to be valid, it must have the following:

• Offer and acceptance: An offer is a statement of willingness to be bound on specific terms without any further negotiations. An agreement is then made between two parties and accepted with no further changes required. The offer can be either written, verbal or by conduct.

• Consideration: Both parties must do something as part of their side of the contract (for example, a decorator – the offeror – must complete the office decorating and the offeree must pay the decorator once the work has been completed).

Consideration must have some value; this could be an item or a service and must also be legal. Consideration can be either executed (a promise that has been executed, for example, paying the decorator £2,000 to paint an office), or executory, for example a promise to do something in the future i.e., the decorating, in exchange for another promise i.e., paying the decorator £2,000 once the work has been completed.

• Consent to terms: Both parties must be certain of the contract terms and conditions, which should be legal and possible to complete.

• Intent to create a legal relationship: Both parties must be willing to be bound by the contract terms.

In addition to the above, both parties must be able to contract and submit themselves to the contract. For example, children are not allowed to enter into a contract agreement.

Invitation to treat

An invitation to treat means that one party has invited the other party to make an offer, and is therefore not an offer as mentioned earlier. An example of this could be a property for sale. At the stage a customer expresses interest in the item for sale, the offer is then made, which can be refused by the seller.

Termination

An offer can be terminated as follows:

• Rejection: The offeree may reject the offer, or a counteroffer could be made.

• Lapse: The offer may have an expiry limit, or the offeror or offeree may have died, causing the offer to lapse.

• Revocation: An offer can be revoked by the offeror before acceptance unless a part payment or another act has been performed, indicating acceptance of the offer.

Capacity and legality

• Void contracts: A void contract is a contract that is either illegal or impossible to carry out, and therefore void. This type of contract cannot be enforced by law.

• Voidable contracts: A voidable contract could include for example, a contract between an adult and a child (under the age of 18). The adult would be bound by the contract; however, a child is not, and therefore the contract would be nullified (made legally null and void).

Discharge of contract

A discharge of contract means that the contract is no longer legally binding and has therefore been terminated.

Discharge by performance

The discharge of contract by performance occurs when both parties are refused to perform the contract obligations.

Discharge by breach

The discharge of contract by breach refers to one of the parties failing to perform the contract obligations, hence being called a breach of contract.

Now have a go at the questions below:

1. You are in a car sales room and tell the salesperson you would like to buy the car. This creates a binding contract:

• True

• False

2. An advert in your local newspaper selling a car is an invitation to treat:

• True

• False

Answers: 1. False; 2. True

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

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Mind the (expectation) gap

Nick Craggs

focuses on audit outcomes from the Level 4 Audit paper

AAT Level 4 Audit isn’t the most popular of optional units, although I do note that it has the highest pass rate of all the AAT level 4 exams. However, I am a believer that you should choose your optional units based on what you will find useful rather than hoping for an easy exam.

Audit does carry some misconceptions in my opinion, the main one being what is known as the audit gap or expectation gap. This is the expectation that a set of audited accounts are 100% accurate. They probably are not, you can’t expect an auditor to find errors of £5 in a company that turns over hundreds of millions of pounds. It would be physically impossible to check every single transaction.

However, what the auditors do aim to do is ensure that the accounts are ‘true and fair’. This means that there could well be the odd error, but if there is they are not material. In layman’s terms this means that the errors are not large enough, or significant enough, to affect the user’s interpretation and understanding of the accounts.

The company being audited, and probably the auditors, would hope to agree that the accounts do show a true and fair view and, if so, the auditor will issue an unmodified audit report. This is sometimes known as a ‘clean audit’.

The auditors may disagree that the accounts show a true and fair picture, in which case there are a number of different outcomes from the audit, and students need to be able to identify what would be the most likely one.

The worst outcome, and simplest to spot from a student’s point of view, is when the auditor thinks that the accounts are material incorrectly throughout, or something is misstated that significantly affects a large proportion of the accounts. This is known as an ‘adverse opinion’; basically, you cannot trust the accounts at all, which as you can imagine is not a good look for the company.

A similar outcome is a qualified opinion, this is where there is a material misstatement in the accounts, but it only relates to perhaps one area. The auditor might give an ‘except for’ qualified opinion, where they agree with the accounts as a whole, except for a certain area which they will then detail in their audit report.

The above two outcomes relate to situations where the auditor has looked at all the information and explanations required but

doesn’t agree with how it is presented in the financial statements. There are situations where the auditor doesn’t receive all the information and explanations that they require, so they will give a modified opinion due to a limitation on scope. Again, this is split into two, depending on how pervasive the issue is. If the lack of information only relates to one area say, they might offer a ‘qualified except for’ opinion. They agree that the accounts show a true and fair view, but they have been unable to satisfy themselves that one area of the accounts is free from material misstatements.

The other option is that there is so much information missing that they can’t say that the accounts show a true and fair position. The auditor isn’t saying the accounts are materially wrong, but they can’t prove that there are free from misstatement. Given that the auditor’s sole goal is to check that the accounts are free from material misstatement, this is as damning as saying they aren’t worth the paper they are written on, so to speak. As a company you really don’t want this! No bank is going to lend money on the back of a set of accounts that the auditors are unable to say they are free from material misstatement.

In summary, you will have two different types of modified reports, one due to the evidence

saying the accounts don’t reflect the real picture, and one where the evidence isn’t there to say. Then these are then further split depending on if the issue affects one area of the accounts or changes the whole of the financial statements. There are two other situations that a student might need to identify. In both these situations the auditors do agree that the accounts do show a true and fair position of the company. This point is important.

The first is an ‘emphasis of matter’ paragraph. This is where there is an issue, but the accounts do correctly disclose it. The auditors do want to highlight it to the users of the financial statements.

The other is where there is material uncertainty about if the company is a going concern. Once again, the auditors feel the accounts show a true and fair view, but they want to highlight the fact that going concern might be an issue, even though it has been correctly disclosed in the financial statements.

In the exam, if you know the different outcomes it should be fairly clear cut as to what outcome you should be selecting based on the scenario you are given in the exam. In reality it isn’t as clear cut!

• Nick Craggs, AAT distance learning director, First Intuition

Facing the digital challenges of today

Rachel Spence explains how young accountants can navigate the ethical minefield that today’s technology brings

The world has evolved with the advent of the digital age, fundamentally transforming how we live and work. While the digital era brings numerous advantages, like streamlined operations and increased accuracy, it also presents significant challenges due to the proliferation of technology.

As accountants, it is crucial to delve deeply into these challenges to maintain our professional standards and ensure ethical conduct. By examining each ethical principle individually, we can identify and address the unique threats posed by the digital era, ensuring our practices remain both ethical and effective.

Professional competence and due care

Technology is advancing at a rapid pace; this necessitates continuous learning and cultivates adaptability. A key ethical principle is the need to maintain professional competence to carry out the profession to a high standard. Staying abreast of evolving trends is crucial to leveraging technology to its fullest potential.

Equally important is the responsibility to ensure that our use of technology upholds the accuracy and integrity of data. This dual focus not only enhances our professional capabilities, but also ensures that we meet our ethical obligations in a digital landscape.

Integrity

Automated accounting systems are becoming increasingly the norm making the need for manual bookkeeping somewhat redundant, making workforces more efficient and arguably more reliable.

However, this shift introduces the risk of over-

reliance on software, which can diminish the critical assessment of financial data. Therefore, it is crucial that we as accountants maintain professional scepticism and ensure that the accuracy and integrity of financial data are not solely dependent on digital tools. We must integrate our own expertise with the capabilities of technology to successfully uphold the highest standards of integrity within work produced.

Professional Behaviour

Adhering to relevant laws, regulations, and standards while respecting the profession is crucial for accountants. In the digital era, this task has become more complex due to the increased risks associated with technology and data handling. To uphold professional behaviour, accountants must implement antifraud measures. These measures include using advanced fraud detection tools, conducting regular audits, and applying effective fraud prevention techniques. By doing so, accountants can better protect their clients’ interests and maintain the integrity of the profession.

Confidentiality

Maintaining confidentiality is a major concern not only for accountants but for all professionals handling sensitive information. The digital age introduces significant risks related to data breaches and unauthorised access, making it easier for confidential information to be mishandled. To address these concerns, it is essential that data security is prioritised and that robust protection protocols are put in place. This includes utilising encryption to safeguard data, establishing stringent access

controls, and conducting regular audits to ensure compliance with data protection regulations. By adopting these measures, we as accountants can better protect sensitive information and uphold the trust and confidentiality essential to our professional responsibilities.

Objectivity

In financial reporting, it is essential that clear and comprehensive disclosures are made without any exceptions. Digital reporting has put a much greater emphasis on this, financial information must be comprehensible, relevant and not misleading. The automation and efficiency afforded by technology can inadvertently introduce bias if not carefully monitored. Therefore, ensuring full disclosures allows for a more transparent and insightful approach to accounting. By leveraging technology judiciously, accountants can uphold objectivity, fostering trust and clarity in financial reporting while mitigating the risks of bias and misrepresentation.

Conclusion

The digital age therefore presents a multitude of ethical challenges for accountants but there are strategies which can mitigate some, if not all, of the issues that we face. Maintaining ethical practices in this evolving environment not only safeguards the integrity of the accounting profession but also reinforces stakeholder trust in the accuracy and reliability of the financial information provided. Addressing these challenges proactively ensures that ethical principles remain central to our work, even as technology continues to advance.

• Rachel Spence, MAAT

Delivering change

Florence Bastos explains the importance of optimising financial processes through technology

The world is undergoing a rapid technological evolution, and the public finance sector is no exception. The sheer magnitude of recent innovation in automation technology has arrived at the right time for struggling local authorities, which are facing more complex challenges than ever before as resources strain.

To address these challenges, CIPFA and Access Paysuite recently hosted a roundtable between a range of public sector finance professionals. The potential benefits, challenges and solutions of automation adoption were highlighted in the discussion.

The case for automation

A consensus emerged: automation offers significant opportunities to enhance operational efficiency, transparency and service quality for a wide array of financial operations, from payment processing and expense management to data analysis.

One of the most compelling cases for automation is its ability to streamline workflows, reducing the time employees spend on repetitive tasks. By automating routine processes, staff can devote more energy to high-value projects

that require insightful decision-making. This shift is critical as local authorities grapple with rising demand. However, something as complex as automation cannot be adopted overnight; there are obstacles that must be overcome.

Overcoming challenges

A common struggle highlighted during the discussion was the challenge posed by legacy systems, particularly outdated Enterprise Resource Planning (ERP) systems. Many professionals agreed that some of these systems lack the flexibility required to support further automation.

On the other hand, the challenges of automation adoption go beyond technology. A key theme that emerged was cultural resistance

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– people may be unwilling to change their traditional workflows.

Bridging the gap

Considering these technological and cultural hurdles, how can automation be successfully implemented on a large scale?

The roundtable emphasized the pivotal role of strong leadership in driving successful adoption. Leaders must articulate a transparent, clear and dynamic vision that unites teams and stakeholders around a shared goal. To achieve this open dialogue is essential, as it helps address concerns, alleviate anxieties and build trust across the organisation. By fostering a culture of collaboration and continuous improvement, leaders can create a supportive environment where all stakeholders feel valued and heard.

Framework for success

Automation is not a ‘one-and-done’ initiative; it’s a continuous process that demands adaptability. Leaders must establish robust frameworks that enable ongoing feedback and engagement from all relevant stakeholders. This approach ensures resources are allocated effectively and allows for proactive decision-making to address challenges as they arise.

To further support transformation, providing personalised and meaningful training opportunities is essential. This not only equips employees with the skills they need to succeed but also helps them feel like active participants in the change. Engaged, empowered teams are more likely to embrace automation as a tool that enhances their roles rather than replaces them.

Careful transformation

Ultimately, automation offers powerful opportunities for local authorities to navigate an increasingly complex future. However, this transformation must be approached with careful planning, inclusive leadership, and effective governance to ensure long-term success. When done right, automation has the power to revolutionise public finance operations and pave the way for a more efficient and resilient future.

• Florence Bastos is a Public Finance Technical Advisor at CIPFA

Access PaySuite is a leading UK-based, FCA-regulated provider of payment solutions, supporting businesses and organisations across the private, public, and not-for-profit sectors. As part of The Access Group, a top-five UK software company, Access PaySuite is committed to delivering secure, scalable, and innovative payment solutions that give public finance professionals greater visibility of finances and cash flow.

By streamlining payment processes and improving financial oversight, Access PaySuite enables local authorities and public sector organisations to optimise resources, maintain financial stability, and continue delivering essential public services efficiently.

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Dear Karen

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

THE DILEMMA

I’m currently finding my role and responsibilities stressful and am worried about falling behind on my workload. What should I do?

KAREN’S RESPONSE

Accountancy can be a highpressured profession so you’re not alone – that’s why it’s crucial to have a toolbox of strategies to turn to when things get a bit more challenging. Recognising how you’re feeling is the first important step towards improving both your wellbeing and success in your role. If you haven’t already, the best thing to do is arrange a catch up with your manager to let them know your situation. As the saying goes, a problem shared is a problem halved and that’s certainly true in this scenario. You can discuss ways to help you feel less overwhelmed, such as receiving help with prioritising workload, getting additional support with certain tasks or introducing flexible working patterns. Once you’ve laid your concerns on the table and set out ways to prevent becoming overwhelmed in the future, you’ll be able to be more productive and happier in the long run.

Try to identify what is worrying you the most, as there may be specific areas that you would benefit from upskilling in through internal or external training opportunities. Ultimately, don’t hesitate to ask for help. Suffering in silence can lead to isolation, loneliness and even more stress. Other ways to reduce workplace stress include setting boundaries, being able to say no, taking regular breaks throughout the day and establishing a healthy work-life balance.

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

Your sustainability accelerator programme

ICAEW launches a 50-hour free sustainability resource for members ICAEW has unveiled a free sustainability e-learning programme for chartered accountants.

The Sustainability Accelerator Programme will offer a series of flexible, bite-sized e-learning resources and certificates to equip chartered accountants and finance professionals with the practical skills and technical expertise to build the case for sustainability and ESG reporting.

Developed by experienced subject matter experts in consultation with institute members, the programme contains over 50 hours of learning, broken down into manageable chunks.

It has been designed to make complex sustainability topics

In brief

Time to register for Accountex

Accountex, the UK’s premier accounting and finance expo, is heading back to London’s Excel on 14-15 May. You can now register online for your free ticket now.

Last year a record number of accountants (over 11.,500) attended. Accountex’s Caroline Hobden said: “Every year Accountex proves itself as THE one-stop-shop for the accounting and finance community. And this edition is no exception. There are lots of new features to help attendees leave with ideas that they can immediately put into practice, and boost their careers.

“As always, the education pro-

accessible and actionable for finance professionals at all levels and will empower chartered accountants to lead on sustainability by integrating it into reporting, strategy and decision making.

The programme, which also includes the ICAEW Sustainability Certificate, has five main units, each focusing on a critical aspect of sustainability:

• Introduction to sustainability.

• Building the business case for sustainability.

• Sustainability reporting and decision-making.

• Sustainability strategy and risk management.

• Sustainability assurance. These units will feature practical examples, interactive content, realworld case studies and templates for chartered accountants to integrate into their day-to-day work.

Richard Spencer, ICAEW Sustainability Director, said: “We’ve designed the Sustainability Accelerator to focus on managing risk and to provide the tools and resources businesses need to navigate these complex topics, which we believe will lead to a more resilient and prosperous future.”

gramme is packed with exclusive industry updates, and the exhibitor list is full of both established brands and up-and-coming start-ups. By this point, visitors know to expect a few surprises, and we can’t wait to see the reaction!”

PQ JOB OF THE WEEK: Assistant management accountant

An international business based in Liverpool has an exciting opportunity for an Assistant Management Accountant –suitable for a CIMA/ACCA studier or someone who has just qualified AAT.

Salary will be between £30,000 and £35,000. Study

support will cover all costs, with two days leave per exam. Hybrid working (two days working from home) is also available. Deadline for applications is 20 February 2025. For more go to https://tinyurl.com/59baz4xa Remember, there is a new ‘job of the week’ on the website every week.

Skill gap headwinds SME employers’ needs and employees’ expectations are drifting apart, according to the latest CIMA Mind the Skills Gap annual report.

A combination of rising costs, tech advances, government bureaucracy and training needs have come together to challenge economic growth.

The PQ Book Club: books you should read

The Personal Branding Playbook by Amelia Sordell (Capston, £14.99)

Is it time to turn your personality to your competitive advantage?

Author Amelia Sordell believes everyone has a personal brand – you have one with your colleagues, one with your friends and even one with the barista who serves you your coffee! Simply put, Sordell says your personal brand is your reputation.

Key to all this is taking control of the narrative – your narrative. The interesting insight in this book comes at the beginning, where Sordell talks about

the power of the personal brand verses the company brand. People, she said, have relationships with people and not necessarily the company and its reputation. Many companies will claim their people are their product, so why don’t they spend more time and money marketing those people, and by proxy their brand?

As the author says, it is actually easier to market people as they are the ones delivering the product being sold. When she took the idea to her CEO they thought it was nonsense. The big worry was good staff would be poached by competitors. But back to you, the brand. Sordell stresses that your personal brand is not something separate from who you are. That means even if you have been building a brand or not, you already have one! Ultimately, she stresses that personal branding should never be an ego-driven acitivity, but it is a strategic marketing imperative.

PQ rating: 4/5 This book is for anyone who had the audacity to be 100% themselves. It really is a great read.

Craze party culture

The University of York recently took top spot in a study ranking UK universities for the ‘craziest party culture’, according to Edumentors.

Included in analysis is the number of bars, pubs, and clubs accessible to students, as well as activity on TikTok and Reddit.

York uni’s score combined the second-highest number of hashtags among party-related TikTok posts, 47 bars, pubs and clubs, and a Reddit score of 4.5. That gave York a grand total of 98.7.

Durham University came in second with a score of 90, and University of Edinburgh was ranked third, with 88.8.

Find out more about Edumentors at https://edumentors.co.uk/

We need more power, Scotty!

The surging demand for artificial intelligence in the UK will need more than a nuclear power station’s worth of electricity, according to DC Byte’s CEO Edward Galvin. This news follows the UK’s proposals for a new AI action plan.

The demand for electricity means some of the biggest new data centres are actually being built on old power station sites, because there will be good access to the grid.

Microsoft is building a site on the former Eggborough coalfield station in Yorkshire, while Blackstone’s £10 billion facility will be built in Northumberland.

The constant need for electricity will create pressure on any move to intermittent renewables such at wind and solar. The development of better battery storage will be key to its success. It all means many of these data companies, and they include Google, Microsoft and Amazon, are not going to hit carbon neutral targets any time soon!

PAYE at 80

It may seem like it has been around forever, but Pay As You Earn (PAYE) was actually introduced on 6 April 1944.

The new, streamlined tax collection service, deducted by employers from either weekly or monthly wages, replaced annual or twice-yearly tax collections.

North Shore baddie

North Shore, an Australian mystery crime thriller, recently hit our screens on ITV. It stars Joanne Froggatt, who plays Abigail Crawford, a UK MP and ambitious secretary of state.

Not giving anything away, but her husband Simon (played by Dan Spielman) is an accountant, and not a very nice one at that!

He would definitely get into trouble with his accounting body because he is doing some insider dealing on a company he is helping to sell. His wife is trying to get a trade deal over the line and this puts the buy-out in jeopardy. In one scene between the couple Susan says: “They’re smart and you are just an accountant, Simon!” It doesn’t end well, but it’s set up for a second series.

Have you seen any dodgy accountancy characters on TV behaving badly recently? Email graham@pqmagazine.com

Your business supercharged

Xero has announced an ‘evolution’ of its brand, and is introducing a new tagline – ‘Your business supercharged’.

It believes the new tagline signals its commitment to providing small businesses and their advisors with the tools, insights and connections they need to thrive.

So, do you know what the old tagline was? Well, it was ‘Healthy business is Beautiful business’, of course! Remember the advert of the man running on sand, and then in a fun run, and finally with a jet pack on his back?

Before that the tagline was just ‘Beautiful Business’.

For Xero’s first TV advert in the UK (five years ago) the tagline was ‘Less time on accounting , more on what you love’.

James Kyd, Xero’s Executive General Manager of Brand and Marketing, said: “In developing ‘Your business supercharged’ we engaged in extensive conversations with small businesses and their advisors. This feedback played a crucial role in shaping the platform, ensuring it resonates with the needs and aspirations of our customers. They expressed a strong belief that ‘Your business supercharged’ effectively captures how Xero can help them to unlock growth and achieve the freedom they desire.”

Watch out for the new ads on TV!

The increased frequency of tax being collected also meant an employee leaving work would be given a P45 recording his/her tax code number, pay to date and tax paid to pass on to the new employer.

Ahead of the tax legislation coming into effect, HMRC – or the Inland Revenue, as it was in 1944 – had to code employees so the correct tax was

PQ’s Bumper Quiz

Here are the answers to our Annual Bumper Quiz. See pages 18-19 in the January issue for the questions.

14: Edward Fox

15: Penelope Bridgerton

16: English Teacher

17: Oppenheimer

18: Mr Bates vs The Post Office

19: Inside Out 2

20: Beyonce SPORT

21: Barbora Krejčíková

22: Cole Palmer

23: Keely Hodgkinson

24: South Africa

25: US team

26: I Am Maximus

27: Luke ‘the Nuke’ Littler

28: Four times

29: Real Madrid

30: Ben Ainslie

31: Prohibition

32: 3

33: Titus was the first emperor to succeed his biological father

34: Athena

35: Cleopatra VII

36: King Harald Hardrada

37: Yorkshire/North Yorkshire –Battle of Towton, 1461

38: Squirrels

39: Crete

40: Ra, will accept RE, Amun-Re and Amun-Ra

GENERAL KNOWLEDGE

41: Greenland 822,700 square miles

42: Canada has 879,800 lakes

deducted from their salary. By the end of January 1944, 15 million people, those earning more than £100 a year, had received notices telling them their new tax code number.

Today, more than 30.5 million people pay income tax and National Insurance through PAYE, and employers share payroll information with HMRC in realtime.

43: Cadbury’s

44: Creeper

45: A murder

46: Snow White

47: Hermione

48: Cognac must come from the Cognac region of France

49: Marie Curie

50: In the jaw

• Thanks again to our sponsors: AAT, ACCA, ICAEW AIPCA & CIMA and CIPFA