SEPTEMBER 2013
SOFT SKILLS The ‘must-haves’ for finance professionals NEW CHALLENGES, NEW OPPORTUNITIES? Stepping up to the skills gap
PERSONAL BRANDING
HOW TO MARKET YOURSELF
editor’s choice Welcome to the SEPTEMBER issue of Student Accountant In last month’s issue we looked at the increasing importance of creating your own personal brand to put you in the best possible position to land the job of your dreams. This month we look at how best to market that brand to help you stand out from the crowd to prospective employers. Read what our experts have to say. We also consider whether the profession is currently experiencing some kind of skills gap and, if so, what are these missing skills – and could you take advantage by upskilling? We continue our skills theme with a comprehensive A–Z rundown of the must‑have soft skills for accountants. Find out the qualities deemed essential to help you get ahead in the profession. In Learning Centre, we meet the winners of this year’s Simpson Scholarship, who reveal why they decided to apply for it and how winning it will help them to realise their potential and career aspirations. Also,
don’t miss our profile of new ACCA member Danielle Sebire, who reveals all about how she met ACCA’s practical experience requirement – including her top tips on approaching challenge questions. This month’s crop of technical articles are relevant to Papers FAU, FTX, F6, F8, P2, P4, P6 and P7. Finally, if you haven’t already done so, make sure to personalise your issue of Student Accountant so that you are kept informed of all the latest articles and exam technique videos relevant to the papers you are studying. Full details are on page 38. If you have any feedback about this issue, please email us at studentaccountant@ accaglobal.com Victoria Morgan Editor, Student Accountant magazine
Published by the Certified Accountants Educational Trust in cooperation with ACCA. The Council of ACCA and the publishers do not guarantee the accuracy of statements made by contributors or advertisers, or accept any responsibility for any statement which they may make in this publication. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without prior written permission of the publishers. © CAET 2013 ISSN 1473‑0979
3
WELCOME | CONTENTS FEATURES | COMMUNICATION
08
dispatch
features
06 GRAPHIC NEWS
24 PERSONAL BRANDING and marketing yourself
08 PICTURE NEWS 10 NEWS ROUNDUP 12 NEWS IN FOCUS 24
12
learning centre
28 A-Z of soft skills 32 ACCA careers: is there a skills divide?
16 SIMPSON SCHOLARSHIP WINNERS 2013 19 being assertive 20 PER: MY journey to membership 28
22 THE right attitude to take to work
19
SA technical article archive
All technical content from Student Accountant is on ACCA’s website ▶
PRACTICAL EXPERIENCE
32
Why not log into your myACCA account to record your experience using the online recording tool My Experience?
Student Accountant | SEPTEMBER 2013
JOIN A Faceb CCA’s oo page k Fi n d o ut how s
tuden othe Join a ts plan the r ACCA ir stud t www ie .f ACCA acebook.co s. .O f fic m/ ial
NEW FEAT URES!
CONTACTS Barry Cooper | President Martin Turner | Deputy President
44
Anthony Harbinson | Vice President Helen Brand | Chief Executive Editorial Team Victoria Morgan | Editor
technical 35 TECHNICAL RESOURCES Access the technical article archive at: www.accaglobal.com/ en/student/accaqual-student-journey/ student-accountant/ sa-archive.html
resources
Glen Patterson | Deputy Editor Jackie Dollar | Design Manager 44
Jane C Reid | Designer 43
www.accaglobal.com Jamie Ambler | Digital Editor
ACCA CAREE Upload RS your C glo V,
29 Lincoln’s Inn Fields London WC2A 3EE
acces bal ca and fin reer opportu s d advic nities in acco e untanc on careers y at www .accac and finance areers .com
United Kingdom tel: +44 (0)20 7059 5700 email: info@accaglobal.com email: info@accaglobal.com www.accaglobal.com www.accaglobal.com
41 NOTICEBOARD ESSENTIAL INFORMATION ABOUT ACCA AND YOUR STUDIES ACCA Connect, exam entry, subscriptions, recording your PER, and the December 2013 exams schedule
publishing and Advertising Adam Williams | Publisher Anthony Kay | Production Manager For all advertising-related matters please contact Nick Willmer: tel: +44 (0)20 7902 1673 email: nickw@educate-direct.com 43
email: nickw@educate-direct.com
5
FEATURES || GRAPHICS DISPATCH COMMUNICATION NEWS ACCA Qualification pass rates
F1
72%
F2
64%
F3
54%
F4
37%
F5
44%
F6
52%
F7
45%
F8
40%
F9
45%
P1
49%
P2
49%
P3 P4 P5 P6 P7
JUNE 2013 pass rates achieved by students for paper-based exams and computer-based exams
51% 34% 31% 45% 31%
Foundations in Accountancy pass rates
74%
FA1 MA1
73% 58%
FA2 MA2
51%
FAB
55%
FMA
55%
FFA FaU
49% 68%
FTX FFM Student Accountant | SEPTEMBER 2013
exam results
50% 48%
Candidates around the world took almost 358,000 papers, with more than 7,700 successfully completing their final ACCA exams
7
DISPATCH | NEWS IN PICTURES
TANZANIA TANZANIA US president Barack Obama and Tanzania’s president Jakaya Kikwete greet Tanzanians in Dar Es Salaam in July. Obama is seeking to build a new US economic partnership with Africa CHINA July saw the opening of the world’s longest and widest multi-pylon, cable-stayed bridge in Shaoxing
CHINA
INDIA India’s telegraph service was discontinued in July after 162 years of operation due to declining revenues
Student Accountant | SEPTEMBER 2013
INDIA
ZIMBABWE ZIMBABWE Voters in Harare wait to cast their votes during Zimbabwe’s general election. The ruling Zanu-PF party won two‑thirds of the seats ITALY The founders of fashion house Dolce & Gabbana, Domenico Dolce and Stefano Gabbana, received suspended prison sentences for evading tax on income of around €1bn
ITALY
UK
UK China’s Ping An Insurance has bought London’s iconic Lloyd’s building for £260m from German lender Commerzbank. The insurer is the first from China to buy into London’s finance quarter GREECE In a bid to boost tourism, the Greek government has reduced VAT on food in restaurants, bars, tavernas and hotels. The 10% cut will remain until 31 December
GREECE
9
DISPATCH | NEWS ROUNDUP
PwC wins HSBC audit PwC has won the audit for HSBC after a competitive tender. The contract had been held by KPMG. PwC also won the Hargreaves Lansdown audit from Deloitte. However, the firm is poised to lose the Unilever audit, which is going out to tender with the express intention of changing auditor to comply with best practice in corporate governance. Meanwhile, EY has won the audit contract for Spanish airline Iberia, previously audited by Deloitte. EY already conducted the audits of sister company BA and parent International Consolidated Airlines. EY recently won the audits of BG Group and Land Securities from PwC. Audit report remodelling Audit reports will be transformed under a fundamental reform, the International Auditing and Assurance Standards Board (IAASB) has announced. There will be more information about going concern, the auditor’s independence and, for listed companies, disclosure of the auditor’s engagement partner. ‘We expect the proposed new and revised standards will result in substantive changes to how auditors contemplate and approach communication to users of their reports,’ said IAASB chair Arnold Schilder. Breakthrough hailed The apparent willingness of China’s securities watchdog to
big business to move out of TAX PLANNING as smes move in One in three large UK businesses is engaged in tax planning, compared with fewer than one in five SMEs, a YouGov study has found. Adverse media coverage of corporate tax management is expected to discourage large businesses from efficient tax planning over the next five years – but also encourage more SMEs to engage in the practice.
Large businesses using tax planning 34% 24% Key
Patricia Cornwell Now
Five years’ time
SMEs using tax planning 18% 21% Key
Now
Five years’ time
hand over audit documents of a US-listed Chinese company to the US Securities and Exchange Commission is being hailed as a breakthrough in a two-year dispute. According to local media reports, the China Securities Regulatory Commission is now ready to transfer the audit papers, paving the way for fraud investigations to begin. William McGovern, a partner at Kobre & Kim law firm in Hong Kong, told Reuters that if this occurs, ‘the capital markets will be safer for investors and a new era of cross-border comity between the world’s leading economies may have dawned’. Para 47 too fuzzy The UN’s sustainable development targets need to be clarified to be effective, an ACCA report has concluded. A survey of 49 sustainable reporting experts found
Student Accountant | september 2013
trends
EY rebrands Ernst & Young has been rebranded as EY. The firm also announced that Mark Weinberger has taken over as global chairman and CEO. He has been global and Americas head of tax, and served on the global and Americas executive. He was also assistant secretary for tax policy of the US Treasury under President George W Bush.
differing interpretations of what was meant by the sustainability commitments contained in paragraph 47 of the outcome document from the UN’s Rio conference last year. The report, Paragraph 47: International Perspectives One Year On, is available at www.accaglobal.com/ accountability Confidence boost Both business confidence and optimism about the global economy rose in the second quarter of 2013, building on the significant gains in the first quarter, according to the latest Global Economic Conditions Survey by ACCA and IMA (Institute of Management Accountants). Almost half of respondents – 47% – felt that the state of the economy was improving or about to do so, up from 43% in the first quarter. This is the highest level of optimism in two years and is supported by a stream of improving economic data.
11
DISPATCH | NEWS IN FOCUS
FOOD FOR THOUGHT We Look at supermarket giant Tesco’s forays into China, Japan and the US and ask what lessons can be learned for retailers looking to expand their operations internationally. ALEX MILLER reports British supermarket giant Tesco has announced that it is entering into joint venture talks with Hong Kong‑based investment company China Resources Enterprise (CRE), in an attempt to expand its presence in China. Analysts say the joint venture would allow Tesco to reduce the amount of capital it commits to China, while still having a presence there. However, a number of observers are questioning whether the JV development in fact represents an honorable way of admitting that expansion in the country hasn’t gone according to plan. It is proposed that the combined CRE/Tesco company would be 80% owned by CRE, which has a stated aim of becoming the largest consumer goods company in China. Tesco would hold the remaining 20% stake. CRE would combine its 2,986 stores across China and Hong Kong with Tesco China’s 131 stores and shopping mall business. A statement from Tesco says: ‘The partnership would bring together CRE’s deep understanding of local customers, established nationwide infrastructure and proven track record as a partner with Tesco’s global retail expertise, international sourcing scale and supply chain capabilities.’
However, at the time of writing, it wasn’t clear what the new combined stores will be called, or whether the Tesco brand name will disappear altogether from the country. But what has happened to Tesco in China? The prospects were exciting when Tesco arrived in China in 2004, following a joint venture with the Ting Hsin food company, mainly operating hypermarkets and shopping malls containing Tesco stores. While the likes of Wal-Mart and Carrefour targeted Shanghai, Beijing and other major cities, Tesco initially located to the likes of Qinhuangdao, China’s largest coal port, and Anshan, an industrial town. Tesco executives were convinced they had found the winning formula for the Chinese market and, as a result, began building huge 400,000+ square feet Lifespace malls including restaurants, cinemas and small retail outlets alongside the Tesco hypermarkets. Tesco opened its first branded shop in January 2007 in Beijing, and by 2008 it had 56 stores nationwide. It now has 131 stores in nine Chinese provinces, but it closed five stores during the last year and according to Yicai, a Chinese
Student Accountant | SEPTEMBER 2013
financial news website, Tesco has failed to turn a profit from its China operation. Building a retail chain in a country as large as China is difficult and expensive – doing so around huge multi-storey malls is even more expensive and time-consuming. Retail analysts believe that, ultimately, Tesco failed to adequately adapt their offerings to suit local tastes. It is not the first time Tesco has encountered expansion problems either. While it continues to operate in 12 countries including Thailand, Ireland and the Czech Republic, and boasts 350,000 employees, the retailer recently announced the closure of its markets in Japan and the US. Again, the alleged reasons for this included a failure to meet local needs. Tesco launched its US venture in 2007, but observers suggest Tesco made the mistake of treating all the country the same and overlooking the importance of understanding more about local markets. Tesco repositioned the brand as ‘Fresh and Easy’. But rather than focusing on convenience and price, the idea was to focus on convenience and fresh organic food. However, while organic stores and lifestyles are a well-known trend in
13
DISPATCH | NEWS IN FOCUS
Japan’s choosy shoppers simply had too many choices – the country has a huge network of 24-hour convenience stores, one every 50 metres in many parts of Tokyo Europe, it appears this trend has not yet spread to the US beyond California and New York. Fresh and Easy never made a profit and, following a strategic review in 2012, Tesco confirmed it was closing down its 199 stores. In order to exit Fresh and Easy, Tesco was forced to book a £1bn write down on the value of Tesco’s assets in the US. In all, the US venture wiped £1.2bn from its profits. It was a similar story in Japan. Tesco entered in 2003 with the acquisition of C2 Network, which at the time owned 78 convenience
stores. However, Tesco was dogged by ongoing trading losses at half of the 129 stores it owned when it made for the exit. The retailer invested £250m in the Japan project, but simply could not establish itself in the market. ‘Tsurakame’ (the Japanese name for Tesco) only had a market share of 1% of the Japanese grocery market. Tesco didn’t appear to fully consider the cultural subtleties of the country. Although Japanese customers love to buy western products from Europe and the US, it is still important to present them
Student Accountant | SEPTEMBER 2013
in a way that will appeal to the Japanese mindset. Japan’s choosy shoppers simply had too many choices – the country has a huge network of 24‑hour convenience stores, one every 50 metres in many parts of Tokyo. These overseas expansion difficulties explain why, in January 2012, Tesco issued its first profit warning in decades. Its full-year pre‑tax profits for 2012 more than halved, representing the worst performance in the company’s history. But while the JV talks in China continue, if lessons have been learned from Japan and the US, then Tesco – the world’s third largest retailer in the world – will bounce back to further cement its status, while other businesses can learn from their experiences.
c
V id sl
Q
Graduate Recruitment – Job opportunities for graduates, along with loads of information about grad schemes at major firms, including the Big 4, how to tackle the application process, and the whys and hows of studying ACCA
Page as yet to be decided
s
We have thousands of accountancy/ finance jobs, grad schemes and trainee positions worldwide
Hundreds of employers search our CV database daily looking for quality candidates
Jobseekers Newsletter – sign up to our newsletter to be the first to hear about all the latest jobs, get great articles offering all kinds of careers and professional advice, and our latest interviews with ACCA members, to give you a little inspiration and help you choose your career path
,
rs CACaree
ar
tic
nd adv le s a ice
Student Accountant | MAY 2013
A C C A C ar ee rs n
AC
t
ws
Fin
us on Twi
Ne
Sha
@
d
r te
re c o n t e n
t
We host 1,000+ vacancies from over Profiles – read about the varied career paths 1000+ employers and recruiters that are open to ACCA members, and gain insight into a new sector from all over the world
Ne w
te r
n
Are you interested in a job in accountancy? Are you a job-hunting student? Then we’re what you need. We are the ACCA’s official careers website
et
g I n t e r n a ti o
t
e o a n d au di o
te n
k in
ly
on
or
al
W
XXXXXXX | XXXXXXXXXXXXXXXX
ow
on
yo ur
m o b il e
LEARNING CENTRE | SIMPSON SCHOLARSHIP WINNERS 2013
This year’s Simpson Scholarship winners hail from Saudi Arabia, South Africa, Sri Lanka, Vietnam and Zimbabwe. Student Accountant meets the winners and finds out how the scholarship will help them achieve their potential The Simpson Scholarship was set up in 1997 after ACCA member Muriel Simpson bequeathed in her will a scholarship to recognise the achievements of high-calibre students. It has been running in its current form since 2008 and has so far helped 30 ACCA students from 21 different countries. For the chance to be awarded the scholarship, applicants must have
excelled in the exams they have already sat, and submit a 1,000-word essay on how the scholarship would help them achieve their full potential. As part of their prize, the five winners that are selected each year will have their exam fees, annual student or affiliate fees, and membership admission fees paid for them by the scholarship fund for up to five years, or until ACCA membership
is achieved – whichever happens sooner. BPP Learning Media, ACCA’s Platinum Approved Learning Partner – content, also provides the winners with study materials for every ACCA paper they are studying.
More information about the scholarship ▶
the 2013 winners are: realise that nothing will hold me back.
country, which has given me so much. I want to help create a platform for women in Saudi Arabia, with equal opportunities for all for further study.
Q
RAMSHA KHAN SAUDI ARABIA
Q
What made you want to become an accountant? A love for numbers and limited career options, to be quite honest!
Q
How will the scholarship help you realise your full potential? The Simpson Scholarship will help me to make a real impact in my career and
When do you hope to become an ACCA member, and what plans do you have for your future career? I do not want to rush the experience; I would rather proceed at a steady pace, working around my family obligations and other responsibilities. I feel duty‑bound to serve my
Q
What advice would you give to other ACCA students? Patience and perseverance are vital; don’t ever give up just because you may not pass every exam at the first attempt.
‘I want to help create a platform for women in Saudi Arabia, with equal opportunities for all for further study’
Student Accountant | september 2013
become more competitive and demanding, but a more vigorous level of professional qualifications and skills are now required from finance professionals. Having the ACCA Qualification will bring me into the rank of global accountancy professionals.
Q
TINASHE ASHWORTH MATAMBO SOUTH AFRICA
Q
What made you want to become an accountant? My childhood dream was to become a professional accountant and I admired the career progression of many influential business leaders. Today’s accountancy profession has not only
What plans do you have for your future career? Gaining the ACCA Qualification will mean that I am not limited to the auditing and assurance profession, but that I have control over my future career. I see the ACCA Qualification as creating the entrepreneurs
and achieve better results in my future studies, and this will lead to a successful and fulfilling career in the accountancy profession. Receiving this prestigious scholarship will be a stepping-stone to achieving my goals and making a positive contribution to my career and community.
Q
Q
How will the scholarship help you realise your full potential? Aside from the financial benefits, winning the scholarship will motivate and inspire me to work even harder
Q
Have you had to overcome any challenges on your path to ACCA membership? I grew up in Zimbabwe and decided to move to South Africa to further my studies. Leaving my family and friends behind and settling in a new country was difficult while preparing for my first exam sitting. Also, keeping motivated is not always easy and you must be prepared to often sacrifice your social life with friends and family, but it will be worth it eventually.
‘ Gaining the ACCA Qualification will mean that I am not limited to the auditing and assurance profession’
RAIHANA MAHROOF SRI LANKA What made you want to become an accountant? The passion I had for accountancy during my A-level studies made me want to pursue it as a career. Being an accountant will help me diversify and further my knowledge and skills in the different fields and enable me to deal with different business situations.
of the future and tomorrow’s business leaders, which is something that I aspire to.
Q
Have you had to overcome any challenges on your path to ACCA membership? The biggest challenge I have had to overcome so far is the lack of time to start revision well ahead of the exams, as I have had to take on part-time work to fund my education. Therefore, I have had to manage my time effectively as the
ACCA Qualification requires significant commitment and focus.
Q
What advice would you give to other ACCA students? Try and plan when you want to complete your ACCA Qualification even before you begin studying. It is important to give priority to your studies regardless of what situation you are in. Aim to pass your exams at the first attempt, as it would be a waste of your precious time to have to resit. However, if you do have to resit, pick yourself up, assess your weaker subject areas and work hard on those. Believe in yourself and keep going. Aim high and work hard, and success will come.
‘Aim high and work hard, and success will come’ 17
LEARNING CENTRE | SIMPSON SCHOLARSHIP WINNERS 2013 | ASSERTIVENESS ‘The scholarship will enable me to obtain a solid knowledge base, which is essential for my career aspiration’
Q
Why did you decide to enter for the Simpson Scholarship? I wanted a source of financial support so that I could concentrate on my studies.
HOANG THI NGUYET CHINH VIETNAM
Q
What made you want to become an accountant? I became an accountant purely by chance. However, I have since grown to really enjoy my role and I am proud to see the significant role played by an accountant and financial consultant in adding value to a business.
as nuturing a principles-based approach through networking and best practice sharing via ACCA’s network. I hope to build a sustainable career in finance and also to help develop a strong finance community in Vietnam and, ultimately, support the transformation of our financial market.
Q
How will the scholarship help you realise your full potential? Thanks to the scholarship, I am more confident of reaching my goal of becoming an FCCA. It will enable me to obtain a solid knowledge base, which is essential for my career aspiration to become an international finance expert. It will also help improve my professionalism through completing personal performance modules, as well
Q
What advice would you give to other ACCA students? ACCA is a tough qualification, but I have enjoyed it so far. It is very satisfying whenever I learn something new or complete a paper. It is a demanding but rewarding journey.
Q
How will winning the scholarship help you realise your full potential? Winning the scholarship is an outstanding accolade, which gives me a competitive advantage now and in the future as it acknowledges my performance as a student.
Q
MEMORY MUDZI ZIMBABWE
Q
What made you want to become an accountant? An inner drive to help and work with small and medium enterprises and a desire to show young females that there are equal opportunities for all in many sectors.
What do you hope to do in the future? When I become an ACCA member I plan to work with SMEs in my country. Working with and helping them to establish sound ethical policies will enhance the profession’s credibility. It will allow the public to appreciate the role played by the accountant in nurturing small businesses and seeing them grow and compete with larger enterprises. Winning the scholarship as a Zimbabwean will also increase
Student Accountant | september 2013
ACCA’s profile and will help my fellow countrymen discover more about the qualification and what it has to offer.
Q
Have you had to overcome any challenges on your path to ACCA membership? My finances meant that I couldn’t always afford the study materials that I needed. But thanks to the scholarship, I can now set aside more resources to join various study programmes now that the funding of my study materials is being met.
Q
What advice would you give to other ACCA students? The ACCA Qualification is not easy: much study planning and exam preparation is inevitable. It is important to maintain your focus if you want to achieve.
being assertive We speak to Suzanne Hazelton, A leadership coach and positive psychologist, to find out why assertiveness in the workplace is more than just a business skill
Q
Why does assertiveness matter? Assertiveness is both a business skill and a life skill. In business it is useful to remember that you are paid to do a job. You will have a particular insight about the task at hand, and a particular perspective based on your familiarity with it. It is important that you develop your skills to be able to raise a point, a question or a concern, even with someone with more seniority. The best way to do this is to practise the skills of assertiveness. I say ‘to practise’ because, for most of us, these are skills that develop with use, and are not installed like an app, ready to go out of the box. If you already consider yourself assertive, then take a moment to consider how much you take into account other people’s opinions. Check you are not likely to become a bully. In the short term, bully tactics might work to get what you want – but very quickly you are likely to find others not wanting to work with you, support you, and might find yourself more isolated.
TAKE A LOOK AT SUZANNE’S BLOG for six ways to increase your assertive language ▶
Suzanne shares a chapter on working with others from her new book Great Days at Work published by Kogan Page ▶
The role of leader doesn’t start with the title – it starts with your attitude
Q
What is assertiveness? Assertiveness is the ability to put forward your needs, rights and wants and, at the same time, recognising that the other person will also have a set of needs, rights and wants that may be different from yours. How you reconcile any differences is more the art of negotiation. However, in my experience, many people often struggle with putting across their wants in business and in life, while others put out their opinions with little regard for others. Neither is assertiveness in action!
My boss/partner should ask me more questions to know what I think Assertiveness is your responsibility. While a good leader or facilitator can do a great job of eliciting
thoughts and opinions, you can become more pro-active and more assertive and not rely on the skills of your manager. Tips to develop assertiveness If you are more on the passive side, it helps to know what you want (note: this is what you want rather than do not want). And knowing what you want is just the first step; others are not mind readers. The next step is to be willing to state what you want. If you are more on the aggressive side, ask others so that you are not bulldozing people with your thoughts and opinions. The role of leader doesn’t start with the title – it starts with your attitude. I believe assertiveness is an attitude. Develop yours today for more success and happiness in both your professional and personal life.
19
LEARNING CENTRE | practical experience requirement
My journey to ACCA membership We meet Danielle Sebire from Guernsey, who recently transferred to membership. She reveals all about completing the practical experience requirement (PER) – and what it feels like to finally be an ACCA member
Q
What made you first choose a career in accountancy? The main reason I opted to become an accountant was the empowering choice I felt it could give me on how I wanted to live my life. I knew it would offer infinite possibilities on being able to take up roles anywhere in the world. Consequently, the core set of skills and knowledge that I have gained means I can work in a variety of sectors – for example, banking, private equity, working in practice or as a management accountant in other industries. My skills also provide a great foundation for working for myself and being my own boss – not only in an accountancy role, but in any given workplace scenario. These factors, coupled with the mental stimulation and my personal development, complement what I want out of a career. Also, I was aware that it would financially recompense me sufficiently to lead the life I want.
Q
Why did you choose ACCA? Studying for the ACCA Qualification was a simple decision. It was the most popular qualification to have when entering the finance industry in Guernsey when I was starting out. For me, it was the qualification that appeared to have the highest status and recognition among people within the profession – not just locally, but globally too. It was
also – very importantly – the qualification my employer wanted me to achieve and to finance on my behalf.
Q
How did you approach the PER and answering the challenge questions? In the beginning I created a PER file, into which I detailed the criteria of each performance objective for quick referencing. The ACCA website proved a useful resource in accessing this information, and I set about filing the content into different sections so that I could read through all the paperwork thoroughly. I also set up a diary that helped me to monitor my PER progress.
My manager acted as my workplace mentor, and the plan was to schedule in half-yearly reviews during which we could focus on my performances towards meeting each objective and think about setting new tasks to help me complete more. In preparation for these meetings, I would read through all the material relevant to each performance objective, and record details of any experience I may have attained towards meeting any objectives since the previous review. Not only did this provide more insight into my progress, it also allowed me to document the experiences I had undertaken while they were still fresh in my mind. This document became the foundation for my approach to answering challenge questions and proved a valuable source to which I would refer constantly. I found the Answering Challenge Questions guide on the ACCA website really useful. It provides example answers to the challenge questions for 10 different objectives, which gave me more of an idea of what I
‘ I found the Answering challenge questions guide on the ACCA website really useful in my approach’
Student Accountant | september 2013
was aiming to achieve. It also helped me when writing up my answers. Once I had recorded my challenge question answers in My Experience I submitted them to my mentor for review.
Q
How did you go about finding a workplace mentor? Choosing my workplace mentor again was easy. The company I work in is small and there was one official training manager.
Q
Do you have any advice for students who are currently trying to find a workplace mentor? Yes. I would say to them it is hugely beneficial to pick a mentor who is in a position to tailor the work you carry out because you need exposure to a wide variety of activities, especially when attempting the four option objectives. It helps if your mentor is someone who can actively monitor your performance as well – a line manager, or someone in a similar position, would be ideal. If you are fortunate enough to have the choice of a few candidates, I would strongly advise you to select one who is genuinely interested in helping you succeed, has a good temperament and can set aside sufficient time to help you progress with your PER.
Q
Would you consider being a workplace mentor in the future? Yes, I definitely would. I personally feel it would be rewarding and a privilege to help an individual develop into a well-rounded finance professional and achieve their full potential.
Q
What was your experience of the transfer to membership process and how did you feel when you finally became an ACCA member? Once I had passed all my exams, completed the Professional Ethics module and signed off my PER, I applied for membership via the ACCA website. The moment I discovered I had been admitted to membership still puts a smile on my face. The first clue was seeing a letter addressed to me with the ACCA letters after my name. I opened the envelope and discovered I was officially professionally qualified. I was literally beaming! I let it all sink in slowly and kept returning to the letter to make sure I had read it correctly. I even phoned ACCA to confirm that I was definitely now a member and that I could tell everyone the good news! I then went out to dinner to celebrate.
Q
Since becoming a member, what impact has this had on your career and what benefits has membership brought you? It is too soon to see any major impact membership has had
on my career to date as I have only recently qualified. However, there is no doubt that, now I am qualified, my career will progress to a new level. Being qualified means that my clients can be assured of my capabilities. In addition to this, when they come to the office to have papers certified for compliance purposes, for example, I am now able to carry out this task rather than having to defer to a colleague. Also, I can assist friends and family when they need items certifying.
Q
What are your future career plans/objectives? My future plan is to keep building on the experience and knowledge I have attained. I plan on doing this by maintaining my technical knowledge through ongoing courses and putting myself forward for opportunities that allow me to advance my current capabilities. I have no intention of standing still. I look forward to gaining extra responsibility and challenges to keep me stimulated in my career.
Answering challenge questions: my tips
¤ The three challenge questions for each objective are often related to each other. I would find that my answer to the first question would be relevant to the second question, and both answers again, in turn, relevant to the third question. To save time, and make sure I could provide answers that would link in appropriately across all three, I read the questions first and gave an example that could be discussed over all of them. ¤ Write up your challenge question answers in Microsoft Word before inputting them into My Experience. Doing this allowed me to keep an eye on my word count and provided an opportunity to check my spelling and grammar. ¤ Re-read your answers before submission. My initial drafted answers seemed fine, but they did not make as much sense when reading them through again a few days later. Some of the specifics needed further explanation and there were mistakes I had originally overlooked.
21
LEARNING CENTRE | PROFESSIONALISM
What is the right attitude to take to work? Bringing the right attitude into the office will help your career prospects. We share some dos and don’ts While it may seem obvious, displaying a positive and proactive attitude towards your work is absolutely vital for a healthy career progression. It can even be considered as a promotional tool in the workplace. It is sometimes said that the world can be divided into two sets of people – those who are positive and provide energy and those who are negative and drain energy away. The same rubric can be applied in the office environment – we all know the names and faces of those who are team players and work to the common good, but we are also only too aware of colleagues who have an adverse effect on staff morale. Does it matter which broad group you belong to? Does being positive in the office involve major changes to your personality and is it even possible to change your behaviour if you are a natural shrinking violet?
It certainly does matter what group you belong to. A can-do, positive attitude can often result in a more enjoyable and efficient working environment. It is important to remain positive, even in stressful situations. This trait will be especially useful around month-end and more pressurised periods, when accountants are expected to perform within tight deadlines. Phil Sheridan, managing director of Robert Half UK, says: ‘The truth is that having a positive attitude is fundamentally key to success in today’s collaborative and team-based work environment. The days when everyone got on with their own work tasks and were measured simply by the efficiency with which those tasks were completed have long gone. ‘Instead, groups of people are brought together to share tasks – and those who react positively with a can-do attitude are those who
Student Accountant | september 2013
are regularly chosen for the most interesting challenges. This doesn’t mean changing your personality and putting on an act – with a few small adjustments you can affect the way that people view your role in the office.’ A positive, can-do attitude is also one of the keys for building relationships at work. If there is a group meeting you are interested in, volunteer to get involved and speak up if you have something to contribute. Expressing your ideas will help you build new connections with colleagues as well as showing that you are keen to be a part of the wider team. Another tip for forming new relationships as a trainee is to make yourself noticed – ask questions and show an interest in what others do in your department, as this will help you discover the right contacts to assist you with projects going forward.
It is important you don’t become too relaxed around your peers, however. Always adopt an appropriate level of friendship with colleagues and try to avoid office politics. Resist the temptation to gossip and spread negative news about colleagues – it is far better to be known for your ability to be fair and as someone who doesn’t take sides. You can even take this stance one step further by finding something pleasant to say about your colleagues when you see them – but it has to be genuine. Positive feedback can encourage a colleague to reach their full potential and you will have contributed to that, a fact that will be noted. Nicholas Kirk, senior managing director at Page Personnel Finance, says: ‘First impressions count, so don’t be overly confident or pushy, choose the right time to ask questions
Top tips:
developing the right attitude at work
ask questions and show an interest in what others do in your department and make a conscious effort to introduce yourself to colleagues. ‘In some cases it may even be beneficial to set up a meeting so you can properly introduce yourself, and don’t forget to bring some prepared questions along to get the most out of the time.’
Volunteer Don’t wait to be asked to take on extra work – instead, keep your ears and eyes open for opportunities to support your team. Look for improvements How could the office environment or your team’s processes be enhanced? Good ideas are always welcome, no matter what the source. Take responsibility Be known for a particular skill or even for arranging team social events – you will be valued by your team as someone who cares and wants to make a difference.
23
FEATURES | Personal COMMUNICATION Branding
Because you’re worth it
Once you have created your personal brand you need to learn how to market yourself to future employers in much the same way as businesses market themselves to customers Student Accountant | SEPTEMBER 2013
It may have taken the accountancy profession a little longer than some others to understand the importance of a good marketing strategy but, nowadays, even the smallest of firms know that defining who they are and what they offer through things like mission statements and brand management, and using social media marketing to both socialise and connect with a variety of different companies and services – as well as, crucially, potential clients – is all important in the competitive accountancy marketplace. But what about personal marketing? We have seen the importance of creating a personal brand when it comes to positioning yourself as a frontrunner for the job of your dreams or the promotion you are after, but how can you effectively market that brand so that people sit up and pay attention?
‘Marketing has become part of business life for all the national firms and strong regional firms and, to an extent, most forward thinking smaller firms’ Gordon Gilchrist is marketing director for The 2020 Membership Group, an organisation for helping progressive accountants and tax professionals throughout Europe, North America, Africa and Australasia. He says that technological progress has made it ever more critical to market your personal brand effectively. ‘It is more important to be different than it is to be better,’ he says. ‘With the ever advancing strides in IT, the role of compliance is becoming ever more redundant. Paperless auditing already exists and the need to grind manually over the clients’ records has changed greatly. This means that you cannot differentiate yourself by being the best compliance accountant. The key is to demonstrate that you
understand and have the capability to advise a client as to their future rather than just being able to report on their past. We are talking about tax planning, profit improvement, wealth management, asset protection and strategic planning, rather than accounts preparation, tax returns and auditing, certainly for the SME sector of the community.’ While Gilchrist agrees that there has been significant progress in accountants’ willingness to embrace marketing, there is still work to do. ‘Marketing has become part of business life for all the national firms and strong regional firms and, to an extent, most forward thinking smaller firms – the process of “satisfying an unsatisfied market uniquely well” is the endless task of marketing
25
FEATURES | Personal Branding and we never reach the end of the rainbow,’ he says. ‘Yet, rarely do we see an individual trained to be an accountant successfully change to be a marketer. We do see accountants successfully becoming networkers
driven down the cost and time to deliver these (and will continue to). What young blood can do better than most is embrace the IT ahead of the competition, help release the firm from its shackles of only
and good listeners – in other words, “proper salesmen”. This normally means that, at an early stage in an accountant’s career, somebody has pointed out that the customer will “always win” in a business model and only by listening to what the clients want can you ever be a really successful accountant.’
providing historical reporting services and leverage this to provide more futuristic services.’ But what if you haven’t the confidence or been equipped with the skill set to market your brand? As Gilchrist advises, it isn’t rocket science but it does require research. ‘Marketing is about satisfying customers’ needs,’ he says. ‘In this case, the customer is the potential employer. The rules of marketing stay firm. By listening to their concerns and anticipating their future issues (even if they have not worked them out for themselves yet), the job of the potential employee is to communicate this knowledge and understanding. ‘If possible, try to have some work experience in the marketing department of accountancy firms, go to networking events, accompany partners to client networking events – this will give you an insight into the world outside the traditional compliance services and make you different out there.’ Once you have mastered the art of marketing yourself you can take those skills into the workplace and
Necessary commodity Should you choose to develop these skills as you embark on your career in accountancy, you have the wind behind you as far as the expectations of future employers go. You are a necessary commodity for many, if not all, businesses, and therefore – in a sense – the job of your dreams is there for you to lose as much as win. ‘Young blood is always good for any business, especially a business that has had the luxury of hiding behind regulation as its main source of income. Accountants have been very lucky to have had a range of services that are required by law and are annually or even monthly or quarterly recurring,’ says Gilchrist. ‘These historical reporting services will still exist but technology has
‘What young blood can do better than most is embrace the IT ahead of the competition, help release the firm from its shackles of only providing historical reporting services and leverage this to provide more futuristic services’ Student Accountant | September 2013
make them work for the benefit of the firm as a whole, or the organisation if you decide to work in industry. ‘Marketing is the key to a successful firm – the really smart firms increase their commitment to marketing in a recession because, as we come out of the recession, they will grow so much faster than the competition,’ says Gilchrist. ‘It has been argued that market share is the key to a business being successful (and this applies even in a small geographical market such as a town), but I would temper that with “as long as it is economically sustainable”. ‘If this is true, marketing can be measured as the number of new clients won, accompanied by those that have been lost and, most importantly, how many new services have been bought by existing clients (futuristic services). The best marketing results are measured by the highest average number of client referrals per client – let nobody tell you otherwise! ‘Advertising, mailshots, emails, telemarketing, databases, seminars, webinars, PR are all tools to be used to help implement the marketing focus, but the real key is “satisfy an unsatisfied market” uniquely well.’
11 27
FEATURES | SOFT SKILLS
OF SOFT S Student Accountant | SEPTEMBER 2013
SKILLS
To succeed in the accountancy profession, you need to develop and master a range of ‘people’ skills and qualities. Iwona Tokc-Wilde explains everything you need to know
A daptability
Being able to adapt to change is crucial, both in your personal life and at work. ‘If you are adaptable, you will be perceived as being effective, optimistic, supportive and proactively seeking solutions,’ says Emma-Sue Prince, author of The Advantage: The 7 Soft Skills You Need to Stay One Step Ahead.
B ody awareness
First impressions count, especially when it comes to job interviews. The right body language itself will not get you a job, but the wrong body language can ruin your chances even if your qualifications and experience match the interviewer’s specifications.
C ritical thinking
In today’s tech-enabled world, we are used to making snap decisions, eager to tick things off on our to-do list. ‘Yet, the ability to think critically is vital because, as the huge growth and abundance of information increases on a daily basis, managing this amount of information has become much more difficult,’ says Prince.
D iplomacy
You will always encounter people you don’t like at work.
29
FEATURES | SOFT SKILLS However, you must be able to get along with everybody, expressing your views tactfully, and respecting the opinions and dignity of others.
E mpathy
It is the capacity to recognise emotions that are being experienced by others, and putting yourself in their shoes mentally. ‘Matching – using the power of empathy – creates a bridge. The result is rapport, the holy grail of communication,’ says Mark Rhodes, author of How to Talk to Absolutely Anyone: Confident Communication in Every Situation.
F ocus on clients
‘Acquiring the technical skills needed to become an accountant and getting through the exams is the easy bit. The most difficult part is getting on with clients and focusing on their needs,’ says Judith Miller, partner at accountancy firm Sayer Vincent.
G ratitude
It is easy to fall into the trap of complaining about the annoying co‑worker, the demanding manager and the department that just cannot get its act together. But what about all those little things they do get right? Start over by saying ‘thank you’.
H
onesty
Do you always mean it when you say ‘Everything’s under control’? If you have hit a rough patch at work, admitting it to your manager and asking their help in solving the problem is a sign of maturity and strength, not a weakness.
I nteraction
‘Finance professionals are increasingly expected to be able to interact with the wider business,’ says Tony Stevens, regional manager at Hays Senior Finance. The profession is becoming more consultative and accountants now need to be commercially-minded ‘business partners’, helping clients achieve their wider strategic business goals.
J
udgment
‘Judgment is about weighing up issues and solutions to make appropriate decisions,’ says learning and development specialist Sue Cohen (suecohen.co.uk/blog). You can learn to exercise good judgment – thinking before you act is the first step.
K indness
Doing something nice for your colleagues can go a long way towards improving your work relationships. But it goes beyond giving in or being nice for the sake of it, says Cohen: ‘To me, being kind also means telling them what needs to change – before it gets to a point where it’s detrimental to them, their career and the business.’
L istening
What makes a good business adviser? ‘The often forgotten element is listening – you have to listen first, to understand what is being said. You can’t create effective solutions unless you know what your client is really looking for,’ says Andrew Falconer, director of careers and employability at GSM London.
‘Forming lasting connections with both junior and senior colleagues can make all the difference to your future promotion or job prospects‘ Student Accountant | SEPTEMBER 2013
M entoring
Hone your coaching skills and you will help others further their careers. ‘Time and effort given to developing junior staff will also benefit you,’ says Stevens. ‘Training a junior team member to do part of your job can give you a chance to take on more senior responsibilities.’
Networking
‘Forming lasting connections with both junior and senior colleagues can make all the difference to your future promotion or job prospects – you never know when you’ll need that recommendation,’ says Stevens. Make connections over their personal interests, too: ‘Even if that just means knowing how well their football team did that weekend,’ he adds.
O ptimism
‘Optimism in the workplace can help with the exploration of possibility, innovation and collaboration because optimism feeds into being more open to more opportunities,’ says Prince. ‘Generally, if you are perceived as being optimistic, you are more likely to get on well with your colleagues, be seen as a solutions person and someone others want to be around.’
P ersuasiveness
At various stages in your career, you need to be able to persuade people of power or influence that what you have to offer matches their needs. ‘For example, at a job interview, your exam passes and technical expertise could go to waste if you don’t convince the prospective employer that you can motivate a team,’ says Stevens.
Questioning
Not everyone coming to business networking events is socially confident, so it can be
What are the key soft skills you use on a daily basis? Email us at studentaccountant@ accaglobal.com and you could feature in a future article ▶
work, without showing off, is key to raising your profile.’
W ork ethic The ability to work collaboratively with a group of people under any circumstance should have pride of place on your CV difficult to maintain a conversation after the initial introductions. ‘A great way to build a connection and get the other person to open up more is to ask questions like “How did you do that?”, “Why did you do that?” or “How did it make you feel?”’ recommends Rhodes.
R
esilience
Throughout your career, you may not get every job you apply for. There will be times when your request for a promotion or a pay rise will be denied too. ‘If you can’t bounce back fast, you will have problems,’ says Rhodes.
S mall talk
Small talk rules and topics differ widely between cultures, and the topics of conversations (like the weather) are less important than their social function. Small talking is for bonding and a strategy for lubricating our social interactions with others.
T eamwork
The mother of all soft skills and a goal in itself. The ability to work collaboratively with a group of people under any circumstance should have pride of place on your CV.
Understanding
In business interactions, we need to understand what is important to the other person. But we also need to ensure that we are being understood. ‘We tend to process information in different ways,’ says Rhodes. ‘When we understand how others process information – from a visual, an auditory, or from a feeling or kinaesthetic perspective – we can use this to connect and engage with them.’
Value
Know your value and what you contribute to your organisation. ‘Don’t be too modest,’ says Stevens. ‘Taking credit for a good piece of
‘The main soft skill that employers answering our 2013 Page Personnel Finance Salary Survey think job seekers lack is the right attitude to work,’ says Nicholas Kirk, managing director at Page Personnel Finance. ‘It can sound clichéd, but going above and beyond your day‑to‑day responsibilities is the most important factor in progressing your career.’
X factor
An X factor is a quality, often indescribable, that makes one job candidate more desirable than another. Have you got it?
Yes, please!
Although it is important to learn to say “no” to unreasonable demands, a can-do attitude of saying “yes” to new challenges is even more desirable. Career-wise, you are unlikely to get far without it.
Z Zzzz
Are you getting enough sleep? ‘Look around your office and you will probably find others who aren’t as engaged at work as they should be, who are vulnerable to every bug going as they are run down,’ says Cohen. Go on, switch off and have a rest.
31
FEATURES | ACCA CAREERS
IS THERE A SKILLS DIVIDE? Skills shortages, gaps, divides – whatever you call them – have long been a feature of the accountancy and finance profession. In this article, we consider whether there is actually a skills gap, what the skills are and how you can get them In 2012 chatter about a commercial skills gap was audible among recruiters and employers. In a study from last year, Badenoch & Clark found that 71% of employers believed commercial awareness to be an accountant’s most important skill, and over half found it difficult to attract the right talent. However, 80% of employees surveyed said they were looking to move job, bemoaning a lack of diverse, commercial exposure. Somewhat ironically, 81% of employers believed their retention strategy to be successful. What are the missing skills? In the wake of the global financial crisis, many firms went into lock down: cost cutting and falling headcounts were de rigueur. Now organisations are committing to growth and require professionals with broad skill sets. ‘Demand has increased for finance professionals with strong process analysis, change management and project implementation experience, as well as those who can contribute to the ongoing commercialisation and transformation of organisations,’ says Phil Sheridan, UK managing director, Robert Half. ‘Companies are also creating more finance business partnering
roles to help drive efficiencies across multiple departments, and 70% of companies will be looking for this experience outside of their existing organisations. That said, individuals with this skill set are in short supply.’ A shifting of corporate gears has lead to a demand for professionals with wide-ranging qualities and experience, geared towards business development and transformation. More than a demand, it is a scramble for top talent, with attractive packages on offer that appear out of kilter with the wider job market. But why are people like this so hard to find? Nicholas Kirk, managing director of Page Personnel Finance UK, says there are two reasons for a commercial skills shortage: ‘First, being truly commercial requires a particular mindset that only really develops through the right kind of experience. This means being customer facing and having a holistic view of how the different parts of the business work together to deliver results – it takes most candidates time to grasp this. Secondly, in the recent climate many organisations have been focused more on cutting costs than on growth, and so have not been
Student Accountant | SEPTEMBER 2013
looking to hire these skill sets into their organisations.’ As highlighted in ACCA’s report The Changing Role of the CFO, the breadth of priorities post-crisis for the finance function is significant. Finance teams are expected to have greater involvement across organisations with increasingly globalised work processes and responsibilities. Furthermore, as Kirk points out, finance teams have become much leaner since the crisis, and ‘generalists who are versatile enough to fulfil a variety of roles are often in a stronger position for employment prospects.’ New challenges = new opportunities ‘Employers are looking for accounting and finance staff with a comprehensive skill set,’ says Paul McDonald, senior executive director, Robert Half International. ‘Technical expertise is just the first part of the equation for today’s professionals. They also must be excellent communicators, possess
Register you r CV on ACCA Caree rs and start your jo b search ▶
business savvy and understand finance beyond the numbers. It’s no longer enough to simply report the data. Professionals today must know the story behind the data, be able to decipher and communicate what the findings mean for the company, and make sound strategic recommendations based on the information.’ This sounds a tall order, for prospective candidates and HR alike. Yet, therein lies the opportunity. So how to make the most of it? Whose responsibility is it to create these ‘super professionals’? Do professional qualifications prepare people for such a market? Are employers providing staff opportunities to acquire diverse exposure? Are professionals seeking out the market’s desired skills? Yes to all the above needs to be the answer. Sheridan sees a need for both ‘specialists and generalists – individuals who can focus on core accounting skills while also offering detailed financial and strategic analysis.’ A broad professional qualification, such as ACCA, can prepare people to tackle a range of business scenarios. It can help you specialise, while affording you a broader picture of the finance value chain and a holistic view of a business – exactly what CFOs are seeking, according to ACCA’s CFO survey The Complete Finance Professional 2013. Upskilling – meet the demand But real commercial awareness is gained on the job. This is where ACCA students can really make the most of their PER. While working towards membership, be aware of the skills needed in current and future markets, seek them out in your work, give yourself a head start. This is also true of senior professionals. You need to be proactive in stepping up to these skills shortages.
‘Developing a relationship with a mentor, whether within the organisation or externally, is an excellent way to not only identify areas for skills development but also assist in career planning overall,’ says Sheridan. ‘Employees should share their goals and aspirations with their managers to develop a career planning strategy and calendar, while also staying abreast of new regulation and areas of demand to ensure that their skills development meets market needs.’ Kirk has this advice for those looking to equip themselves: ¤ Keep an ear to the ground and listen out for what the business needs. Having open conversations with your line managers about what opportunities are available is key, particularly around appraisal season. ¤ Ask for feedback and take it in the spirit that it is meant. Understanding whether or not you have a skill shortage is the first step towards overcoming it. ¤ Ask the right questions – the next time a query arises on an account you are working on, pick up the phone or, better yet, go and see the person concerned face-to‑face to understand the issue and see how it fits in with the bigger picture. Always ask questions like: How does what I am working on relate back to the bottom line? ¤ Don’t be afraid to take risks. Ambitious people shouldn’t be afraid to push themselves out of their comfort zone and take on new opportunities, be they secondments, projects or even new roles. Getting your hands dirty is the best way to learn and grow.
Follow the ACCA Careers bloggers ▶
the CFO. It is vital that ambitious employees are listened to, and given the opportunity and freedom to develop the skills a company needs. ‘Developing a strong finance team is a combination of hiring the right people, recognising their potential and then providing the right experiences and education to help them thrive in their roles and careers,’ says Sheridan. ‘Job rotation and international secondments will also prepare accountants for more senior leadership roles within the organisation as they develop a greater understanding of the business as a whole,’ continues Sheridan. ‘This is especially important as a recent survey conducted by Robert Half found that 55% of UK CFOs have failed to identify a successor, should they unexpectedly have to leave their role.’
USEFUL LINKS: ¤ Exam results, new job or a promotion?▶ ▶ ¤ How to make it in the Big Four ▶
Finance leaders CFOs are increasingly involved with the sourcing and retention of top talent, one of the challenges identified in The Changing Role of
33
how can you study and work?
At ACCA, passing exams and getting the relevant training are equally important. But it’s up to you how you achieve the ACCA Qualification. It’s really flexible. You decide how and when you study and receive your training.
Find out more at accaglobal.com The global body for professional accountants
+44 (0)141 582 2000 info@accaglobal.com
TECHNICAL 36 technical articles • The audit of wages Relevant to ACCA Qualification Paper F8 (INT) and (UK) and Foundation level Paper FAU (INT) and (UK) • Hedge accounting Relevant to ACCA Qualification Paper P2 • Aspects of Islamic finance Relevant to ACCA Qualification Paper P4 • International project appraisal Relevant to ACCA Qualification Paper P4 • Finance Act 2013 Relevant to ACCA Qualification Papers F6 (UK) and P6 (UK) and Foundation level Paper FTX (UK) • Paper P7 (UK) and (IRL) exam style Relevant to ACCA Qualification Paper P7
ACCESS THE TECHNICAL ARTICLE ARCHIVE ▶
Access videos to help support your studies in Papers F4, F5, F7, F8, F9, P1, P2, P3, P4, P5, P6 and P7. Cannot use YouTube? If so, you can access these videos here
Paper F4
Paper F7
Paper P1
Paper P6
Paper F5_1
Paper F8_1
Paper P2
Paper P7
Paper F5_2
Paper F8_2
Paper P3
Paper F5_3
Paper F9_1
Paper P4
Paper F5_4
Paper F9_2
Paper P5
35
TECHNICAL | LISTINGS
The audit of wages Relevant to ACCA Qualification Paper F8 (INT) and (UK) and Foundation level Paper FAU (INT) and (UK) The most common payroll frauds can affect even those companies that appear to have good internal controls. This article sets out to help Paper F8/FAU candidates better identify significant deficiencies in internal control, explain the implications of the deficiencies and recommend appropriate controls. It considers the different stages in a typical wages system – for example, what tasks should be undertaken during both the interim audit and final audit stages – as well as the link between control objectives, controls and audit tests.
access the article here
▶
Hedge accounting Relevant to ACCA Qualification Paper P2 The article explains the basic principles of hedging and the current accounting regulations as set out in IAS 39, Financial Instruments: Recognition and Measurement. It concludes by considering the weaknesses of IAS 39 and how those weaknesses are addressed by the proposed changes issued by the International Accounting Standards Board in September 2012.
access the article here
▶
Aspects of Islamic finance Relevant to ACCA Qualification Paper P4 Islamic finance has been a recent addition to the Paper P4 syllabus. Any future exam question on this topic could range from a focus on the developments and understanding of Islamic finance to the application of Islamic finance as an additional source of finance, assessing its benefits and drawbacks in different business scenarios and situations. This article provides a general overview of the different aspects, issues and developments of Islamic finance and extends the explanations provided in the article ‘Islamic finance – theory and practical use of sukuk bonds’.
access the article here
▶
Student Accountant | SEPTEMBER 2013
International project appraisal Relevant to ACCA Qualification Paper P4 International project appraisal is an integral part of the Paper P4 syllabus. This article suggests a methodical approach to answering any exam question that may arise on this topic, with the first article of two looking at how to tackle a Section B, 25-mark question using materials from your Paper P4 studies.
access the article here
▶
Finance Act 2013 Relevant to ACCA Qualification Papers F6 (UK) and P6 (UK) and Foundation level Paper FTX (UK) This article summarises the changes made by the UK Finance Act 2013, and is relevant to those sitting Paper F6 (UK) in either June or December 2014. (Those planning to take the exam in December 2013 should refer to the Finance Act 2012 article instead). There are additional articles on the new act written by the examining teams for Paper FTX (UK) and Paper P6 (UK).
access THE ARTICLE here
▶
Paper P7 (UK) and (IRL) exam style Relevant to ACCA Qualification Paper P7 This article provides candidates preparing for Paper P7’s (UK) and (IRL) exams with information on question styles and the wording of exam requirements. It reiterates and builds on the guidance given in previous examiner’s articles.
access the article here
▶
SA technical article archive All technical content from Student Accountant is on ACCA’s website ▶
37
FEATURES | COMMUNICATION TECHNICAL | LISTINGS
Do you want to receive personalised resources from Student Accountant? Tell us what you are studying now and we will send you personalised ezines and updates relevant to the papers that you’re working on. The all-new version of Student Accountant also comes in mobile and desktop-friendly versions and you will be able to customise your editions by region, your career aspirations, and your media preferences. COMPLETE OUR CUSTOMISE YOUR EDITION PAGE NOW
▶
ALSO, don’t forget to take advantage of these other valuable resources: ACCA’s Competency Framework ▶ Student planner app for Android and iPhone ▶ Tuition providers directory ▶ Exam technique videos Student Accountant | september SEPTEMBER AUGUST 20132013
▶
EXAMINER FEEDBACK Reports from examiners on the overall performance of candidates in June 2013
FOUNDATION LEVEL PAPERS Paper FA1
▶ ▶
Paper MA1 Paper FA2
▶ ▶
Paper MA2 Paper FAB
▶
▶
Paper FMA Paper FFA
▶
Paper FAU
▶
Paper FFM
▶
Paper FTX
▶
ACCA qualification PAPERS Paper F1
▶
Paper F5
▶
Paper F9
▶
Paper P4
▶
Paper F2
▶
Paper F6
▶
Paper P1
▶
Paper P5
▶
Paper F3
▶
Paper F7
▶
Paper P2
▶
Paper P6
▶
Paper F4
▶
Paper F8
▶
Paper P3
▶
Paper P7
▶
EXAMINERs’ ANALYSIS INTERVIEWS The examiners’ analysis interviews available to view on ACCA’s website look at student performance in the June 2011, December 2011, June 2012 and December 2012 exam sessions, highlighting where students are performing well, where they are performing less well, and how they can improve their performance. These interviews are an invaluable resource for you in your revision. The content of each interview has been prepared by working closely
with the examiner, although the voices you hear are those of actors playing the roles of an interviewer and the examiner in discussion. The voiceovers accompany a visual presentation which you can watch while you listen to the exam advice. Visit the online resources for the papers you are studying on ACCA’s website to access the new examiners’ analysis interviews.
39
A DEGREE of confidence ‘Gaining the degree shows employers that you have the key graduate skills of self-reflection and communication.’ Affan Ali
Gain a BSc Degree in Applied Accounting from Oxford Brookes University while studying for your ACCA Qualification, and get two qualifications without doubling your workload.
For more information visit www.accaglobal.com
XX 40
RESOURCES all you need to know From exam entry to recording practical experience, the following pages contain essential information for your journey to membership
42 staying connected
ACCA Connect: contact us 24/7
42 fees
Exam fees and ways to pay
43 RULES AND REGULATIONS
Information about ACCA’s Rulebook
43 MY EXPERIENCE
Your online tool for recording practical experience
43 EXAM exemptions
Could you be eligible to claim exemptions?
43 EXAM ENTRY
Find out about our flexible exam entry process, and how you could save money
44 OXFORD BROOKEs UNIVERSITY bsc (hons)
Information about the BSc (Hons) in Applied Accounting from Oxford Brookes University
44 Keep on track with ACCA’s student app
Student Planner app is updated to include push notifications
45 DECEMBER 2013 exam SESSION
Exam dates for the December 2013 session
APPROVED LEARNING PARTNERS
▶
Search for a tuition provider using ACCA’s Tuition Provider Directory
41
RESOURCES
acca connect
FEES Annual subscription – 2013 Please note, as a student, you are required to pay an annual subscription for each year you are registered with ACCA. The payment enables ACCA to provide you with services and support to assist you with your studies and training as you work towards gaining your qualification. Students who fail to pay fees when due (including exam/exemption fees) will have their names removed from the ACCA register. The following fees and subscriptions apply: Initial registration £79 Re-registration *£79 Annual subscription £79 *plus unpaid fee(s)
students@accaglobal.com +44 (0)141 582 2000
For all enquiries, simply contact ACCA Connect – our global customer service centre. However you want to contact us – by phone or email – one of our expert advisers will be happy to assist you.
stay connected ACCA Connect is available 24 hours a day, seven days a week, 365 days a year providing global support at times convenient to you. You can also access your myACCA account and the ACCA website for answers to many queries.
Contact details ACCA Connect tel: +44 (0)141 582 2000 email: students@accaglobal.com myACCA: https://portal.accaglobal.com Student Accountant | SEPTEMBER 2013
Exam fees for DECEMBER 2013 (per exam) FOUNDATION LEVEL QUALIFICATIONS Papers FA1, MA1, FA2 and MA2 Early (8 September 2013) Standard (8 October 2013) Late (8 November 2013)
£43 £50 £201
Papers FAB, FMA, FFA, FTX, FAU and FFM Early Standard Late
£64 £73 £224
FUNDAMENTAL LEVEL SKILLS MODULE EXAMS Papers F4, F5, F6, F7, F8 and F9 Early £81 Standard £92 Late £242 Professional level exams Papers P1, P2 and P3 (and any two from Papers P4, P5, P6 and P7) Early £94 Standard £106 Late £259
Rules and Regulations
EXAM EXEMPTIONS
ACCA’s disciplinary procedures cover matters such as professional misconduct, misconduct in exams and breaches of regulations which include any actions likely to bring discredit to you, ACCA, or the accountancy profession.
If you already have some qualifications, you may not have to take all of the exams in the ACCA Qualification or Foundation level awards. These are called exemptions and mean that you will start your studies at the right level
READ THE ACCA RULEBOOK online
▶
Practical experience
SHOULD I CLAIM? ▶
My Experience is ACCA’s tool for recording your practical experience. Its launch followed a consultation with trainees globally, the aim of which was to improve the process of recording practical experience and, therefore, make the journey to membership easier. FIND OUT MORE
Computer-based exams
HOW DO I CLAIM? ▶
▶
Computer-based exams (CBEs) are available for the first seven of the Foundation level exams – Papers FA1, MA1, FA2, MA2, FAB, FMA and FFA (but not the specialist papers) – as well as for the Knowledge module exams (Papers F1, F2 and F3) of the ACCA Qualification. Sitting CBEs provides the following benefits: ¤ Flexibility – You are not restricted to June and December paper-based exam sessions as you can sit CBEs at any time of year. CBEs also offer flexibility for re-sits, which you can take at any time. There is no restriction on the number of times you can resit the exams by CBE. ¤ Instant results – Your result is displayed on the computer screen at the end of the exam. ¤ Results – Your results are uploaded by the licensed centre and will be transferred to your ACCA account within 72 hours. FIND OUT MORE
EXAM ENTRY information ACCA’s exam entry process offers you flexibility and can save you money. You can: ¤ submit an exam entry at any time of the year ¤ save money by entering for the December exams by 8 September ¤ enter for one of the next two exam sessions ¤ make amendments to existing exam entries up until the standard entry closing date – including changing exam centre, variant papers or entering for exams
FIND OUT MORE
▶
▶ 43
RESOURCES
oxford brookes bsc (hons)
Eligibility The degree must be completed within 10 years of your initial registration on to ACCA’s professional qualification, otherwise your eligibility will be withdrawn.
Check your eligibility STATUS ▶ Professional Ethics module In order to qualify for the BSc (Hons) in Applied Accounting, all students must first complete the nine Fundamental exams as well as the online Professional Ethics module. The Professional Ethics module is accessed via myACCA, but you
will only be given access to the module once you are eligible to sit Paper P1. The module does not need to be completed in one go, and you may therefore find yourself re-visiting the module as it takes approximately two to three hours in total to complete. Once you have fully completed it, you are required to write a completion statement, and a certificate will subsequently be sent to you. By completing this module, you will be gaining a better understanding of ethical issues in accounting, while giving you a chance to reflect on your own behaviours.
ACCESS myACCA ▶
KEEPING YOU INFORMED The quickest way for us to send you important information such as changes to exam entry and exam results is by e-communication (such as email or text message) but we need you to give us your permission – it’s the law.
UPDATE YOUR DETAILS AND COMMUNICATION METHOD ▶ Student Accountant | SEPTEMBER 2013
KEEP ON TRACK WITH acca’s STUDENT APP
ACCA is constantly making changes to its Student Planner app to keep it fresh and to ensure that it remains a useful tool for our students. The latest features just added include push notifications (or alerts) and contacts. The push notifications function will enable ACCA to push important messages to you that are relevant to your studies. In order for us to be able to do this, you will have to enable this function on the app and then enter your country and the qualification you are studying. You can now also contact ACCA Connect through the app. You can email any query you may have or, if you prefer, you can phone ACCA Connect directly or phone your local ACCA office as these numbers have now been included. If you haven’t yet downloaded the app, what are you waiting for?
DOWNLOAD THE IPHONE APP ▶ DOWNLOAD THE ANDROID APP ▶
DECEMBER 2013 exam session The following dates have been confirmed for the next exam session:
exams will take place over an eight-day period with one session of exams each day
Friday 6 December F1 Accountant in Business P6 Advanced Taxation F9 Financial Management Monday 9 December F4 Corporate and Business Law P3 Business Analysis Tuesday 10 December F3 Financial Accounting P2 Corporate Reporting Wednesday 11 December F2 Management Accounting P1 Governance, Risk and Ethics FOUNDATION LEVEL QUALIFICATION Monday 2 December FTX Foundations in Taxation
DECEMBER 2013 Week 1 2 to 6 December Week 2 9 to 11 December Exams will take place over an eightday period with one session of exams each day. The exams will be held concurrently in five different time zones. The base starting times in each of these time zones will be: ¤ Zone 1 (Caribbean) – 08.00hrs ¤ Zone 2 (UK) – 10.00hrs ¤ Zone 3 (Pakistan and South Asia) – 14.00hrs ¤ Zone 4 (Asia Pacific) – 15.00hrs ¤ Zone 5 (Australasia) – 17.00hrs. Local starting times will be set falling out from these base start times for every centre. Details of local start times can be found against each centre on the Examination Centre List
accompanying your Examination Entry Form. Papers F1 to F3 are two‑hour exams, and Papers F4 to F9 and P1 to P7 are three‑hour exams. ACCA QUALIFICATION Monday 2 December F5 Performance Management P7 Advanced Audit and Assurance Tuesday 3 December F6 Taxation P4 Advanced Financial Management
Tuesday 3 December MA2 Managing Costs and Finances FFM Foundations in Financial Management Wednesday 4 December FA2 Maintaining Financial Records Thursday 5 December MA1 Management Information Friday 6 December FAB Accountant in Business Monday 9 December FAU Foundations in Audit
Wednesday 4 December F7 Financial Reporting
Tuesday 10 December FFA Financial Accounting
Thursday 5 December F8 Audit and Assurance P5 Advanced Performance Management
Wednesday 11 December FA1 Recording Financial Transactions FMA Management Accounting
45