PQ magazine March 2018
uk
All the top tips you need for the
ACCA March exam sitting as
our experts tell it as it is
Labour Party’s McDonnell takes aim at the Big 4 accountancy firms
Labour shadow chancellor John McDonnell says
the large accountancy firms need to take a new
‘Hippocratic Oath’ to maximise the amount of tax
their clients pay. Speaking at the World
Economic Forum in Davos, McDonnell said the
Big 4 were not doing enough to tackle tax
avoidance. And he warned public anger over
this issue was building.
McDonnell felt the firms must change their
entire ethos and rediscover their moral purpose.
He told the BBC: “I think we need a new
Hippocratic oath for accountancy firms, where
they sign up to being committed to tackling tax
SHARING CAN BE A
DANGEROUS THING
CIMA has dished out a salutory lesson on
how not to use social media during exam
windows!
The institute has stamped down hard on
students in a WhatsApp group who shared
information about one of its operational level
case study exams. More than 30 students from
the UK, Sri Lanka, India, Pakistan and South
Africa have been disciplined over what went on
in the instant messaging group ‘OCS’ prior and
during the November 2016 exam.
Many students have had their November
exam results declared void. There has also been
a range of punishments, including reprimands,
severe reprimands and even cancellation of
students’ registrations.
In many cases where the student was
reprimanded they have been told to sit and pass
the Fundamentals of Ethics, Corporate
Governance and Business Law exam, before
being permitted to sit any further CIMA exams.
The CIMA case study exams take place over a
period of five days, so some students will see the
questions and unseen material before others
attempt the exam. To reduce the risk of
disclosure students do not all take exactly the
same exam. There are at least five ‘variants’,
www.pqmagazine.com / www.pqjobs.co.
avoidance themselves, rather than coming
up with all these bizarre schemes
to enable that to happen.”
McDonnell (pictured)
described the situation as a
cartel, and said the Big 4 are
dominating the sector. He
ventured: “If they don’t act they
will be open to real public
opprobrium.”
Meanwhile, ICAEW CEO Michael Izza says
that there is no need for an accountant’s
Hippocratic Oath specifically for tax, as
which are allocated to students randomly.
CIMA acted quickly when it discovered quite a
number of the 256 students in the WhatsApp
‘OCS’ group were exchanging instant messages
chartered accountants already ensure that
taxpayers pay the right amount of tax due under
the law. “In this way we help reduce the tax
gap by supporting good tax compliance,” he
suggested.
Izza emphasised that the ICAEW has
“been saying for years that there is no
place in our profession for anyone involved
in the creation or promotion of artificial,
contrived or aggressive tax avoidance
schemes”. He applauded McDonnell, however,
for wanting to deliver a fairer, more equitable,
more prosperous society.
with each other during the exam window.
The institute accessed all the correspondence
in the group, which was then highlighted in
many of the disciplinary cases. One student,
who was severely reprimanded and told to pay
£330 in costs, posted: “Ppl plz show some
gratitude and post whatever you get.” She also
said: “Guys as we don’t hav much time to
prepare… come up with details plz”. Then she
got more specific: “Guys the first question on
risk approach is that on maximin Or risk adverse
risk seeking those?” This student’s November
exam was voided, but she subsequently passed
OCS in May 2017 and this and other exams
were allowed to remain valid.
It appears some PQs knew that what they
were doing wasn’t right. One student asked:
“What if he reports to CIMA.” The student was
told: “Its not our fault its CIMA’s fault.” They
went on: “they [CIMA] leak all the variants within
a few day so ya”.
One reprimanded student asked just one
question: “Anyone for the evening variant?” But
that was enough for them to have to go before
the disciplinary committee and be punished.
In many of the disciplinary cases that followed
Continued on page 10
 “
This year I’ve passed 8
exams with OnDemand”

Jack Conlan, Kaplan CIMA student

Why study OnDemand?

OnDemand is a flexible online course with lots of support
from tutors - letting you fit your learning around your life.

Start studying anytime, anywhere.

Try our free OnDemand demo

kaplanfinancial.co.uk/ondemand 0333 009 5194


CONTENTS
News
06CIMA exam results Pass
rates are holding steady
08CIPFA exam results Latest
set of figures a mixed bag
10ACCA exam results Are pass
rates on an upward curve?
Features, etc
05Mind your Ps&Qs Don’t give
up – all the hard work and
heartache is worth it; why paper
is best; and AAT explains training
supplier listing changes
12CIMA syllabus review Noel
Tagoe on bringing finance into
the digital age
13Social mobility It’s time to
change the ‘male, pale and
stale’ image of accountancy
14ACCA P5 Be part of the 29%
of exam sitters who actually pass
this tough paper
15Cybercrime Don’t become a
victim of identity theft
16ICAEW HE conference Are
you ready for the fourth
industrial revolution?
18Back to basics Top advice on
how to deal with payoff tables
20Carillion fall-out What the
FRC’s Stephen Haddrill told
Parliament inquisitors
22ACCA tips What our experts
reckon will come up in March
24ICAEW spotlight How to best
tackle computer-based exams
Gain vital insights to give your students
their best chance at exam time
Powerful analytics used
by awarding bodies
Compare classes,
partners, and client firms
Live statistics
Identify weak subject areas
Flag common mistakes
Improve grades and
test times
Track student demographics
Mention PQ Magazine for a FREE TRIAL
Visit getrogo.com or call 0203 151 1331
March 2018
25Awards 2018 So who made the
short list for this year’s event?
26ACCA examiners’ reports
We put the focus on December’s
skills and option papers
27ACCA P3 Why the ‘why’ is the
key to passing this tough paper
29Careers Life at the University of
Derby; our Book Club review;
and the best of social media
30Fun stuff – and our giveaways
The columnists
Robert Bruce Carillion collapse
poses the same old questions
Prem Sikka Could Carillion crisis
be the catalyst for change?
Zoe Robinson Exercise your body
and improve your brain
Subscribe to PQ magazine
It’s FREE – go to page 28 or see
www.pqmagazine.com
ABC July 2016 – June 2017
32,625
Publisher’s statement: We send a
digital issue of the magazine to an
additional 6,772 requested readers
Free to subscribers who fulfil our
terms of control
Annual subscription: £35 (£50
overseas)
comment PQ
It pays to know the rules
Hope you ‘enjoyed’ reading
our lead story this month!
We were genuinely shocked
by how many CIMA students were
embroiled in the OCS WhatsApp
‘cheating’ disciplinary hearings. Here
at PQ we honestly believe a lot of
those reprimanded students didn’t
realise what they were doing. They
had sat the case study and just
needed to offload a bit and talk about their exam. Some may say,
however, they are lucky CIMA has allowed them to complete their
6 studies. How, for instance, will employers react if they discover their
behaviour? Could they be trusted with confidential information? This is
8
something we look at on page 15.
10 What students have to realise is that CIMA is always monitoring
social network groups. In fact, we understand it has social media
tracking! However, although CIMA does tell students about its T&Cs we
do think perhaps they should use plainer language to explain what is
and isn’t permissible. ACCA students also have to be careful. The time
differences between exam sittings across the globe mean they too fall
foul of the rules if they discuss specific questions too early.
The Big 4 are also going through the ringer at the moment. Carillion
has brought this particularly to the fore in the UK. But it doesn’t end
there. PwC has been banned from auditing listed companies in India
and KPMG accountants in the US have been charged with ‘stealing the
exam’ (see page 8). Perhaps that’s why Labour’s shadow chancellor
John McDonnell has called for a ‘Hippocratic Oath’ for accountants.
Good luck to everyone who has been shortlisted for the PQ Awards
(see page 25 for more). In next month’s issue we’ll have all the results
and photos of the winners on what promises to be another great night.
Graham Hambly, PQ magazine editor (graham@pqaccountant.com)
The
e-learning
platform
ICAEW
COMPUTER-BASED EXAMS

ACA exams are changing

GUIDANCE AND SUPPORT FOR ACA STUDENTS

All ACA exams will eventually move from paper to Here is a summary of the exams moving to computer in 2018.
computer-based, so getting to know the new exam
format in advance of your exam is crucial to success. PROFESSIONAL LEVEL
March Business Planning: Taxation
&RPSOHWHWKHƓYHVWHSVEHORZWRHQVXUH\RXDUHIXOO\ Business Strategy and Technology
prepared and have everything you need for the day
of your exam. June Business Planning: Banking
Business Planning: Insurance
1 Read the exam guidance
ADVANCED LEVEL
2 Watch the exam webinars
July Corporate Reporting
3 Use the practice exam software Strategic Business Management
4 Review the sample exams
Guidance, support and resources are available to you at
5 Read the Instructions to Candidates icaew.com/cbe

Keep on keeping on
A recent letter in PQ magazine,
headlined ‘Farewell to CIMA’, from
a student who was giving up the
qualification, struck a chord with
me. I understand the sentiment in
the letter – it can seem a long and
expensive road and at times a
lonely one. Yes, life and work does
get in the way.
I would like to encourage all
PQs to keep going. I began CIMA
in the 1990s and finally qualified
in January 2018 at the spritely
age of 47! My story began in the
1990s – three syllabus changes
later I now have membership. In
the early years of study I was very
Our star letter writer wins a fantastic PQ memory stick!
Thanks for the mag
Please could you cancel my PQ
subscription, as I am no longer
studying the ACCA qualification.
Unfortunately, I am one of the
ACCA statistics who didn’t quite
finish the last couple of exams, but
I really appreciated receiving PQ
magazine every month as it has
been an excellent resource.
I am also very grateful that you
still send a paper copy of the
magazine. As someone who
spends most of their day looking at
a computer screen the last thing I
want to do is to read the magazines
I subscribe to online as well.
I used to read the ACCA’s
magazine from cover to cover when
it was sent through the post, but as
soon as it went online I stopped
reading it completely. That probably
goes some way to explaining why I
didn’t complete the qualification!
Anne Hesketh, Essex
New listing explained
I read your article stating that some
training providers are worried about
changes we at the AAT have made
to our ‘Find A Training Provider’
website (‘Finding all AAT tuition
providers just got tougher’, PQ,
February 2018). I would like to give
more information on the changes,
and hopefully put some of the
PQ Magazine Unit 3a, Kingfisher Heights, 2 Bramwell Way, Royal Docks, London E16 2GQ | Phone: 020 7216 6444 | Email: graham@pqaccountant.com
Website: www.pqmagazine.co.uk | Editor/publisher: Graham Hambly graham@pqaccountant.com | Advertising manager: Polly Thrasivoulou polly@pqaccountant.com
Associate editor: Adam Riches | Art editor: Tim Parker | Subscriptions: dom@pqaccountant.com | Contributors: Robert Bruce, Prem Sikka, Zoe Robinson,
Tony Kelly, Phil Gammon | Origination and print services by Classified Central Media
If you have any problems with delivery, or if you want to change your delivery address, please email dom@pqaccountant.com
keen, but then children and job
promotions got in the way. I
resigned my membership after my
sister-in law died from cancer, but
I need
pqjobs.co.uk
training providers’ fears to rest.
We have invested in our new
Find a Training Provider service
primarily to give current and
prospective students the best
chance of finding the right training
provider to suit their needs.
Compared with our previous Find a
Published by PQ Publishing © PQ Publishing 2018
email graham@pqaccountant.com
a few years later I re-
applied and CIMA
welcomed me back
wholeheartedly. Just when
I was getting into my
stride my second child
was diagnosed with
autism, studies again took
a step back at the
Advanced Dip stage.
In 2010 the recession
was biting and my
company went into
administration. My studies
were not at the forefront
of my mind at that point.
I made a decision in 2016/17
that I would give CIMA another
shot and sat the four strategic
papers in 11 months.
Training Provider search, the new
one is much easier to use, provides
prospects with more accurate
information, and allows them to
easily see training provider details
and to contact them directly.
Alongside the benefits for
prospects, our new service provides
have your say PQ
So my message to all PQs is
this: do you really want to do all
the work but not be able to reap
the financial rewards your
experience and talent deserves?
Keep going. The road does
sometimes feel long, with many
twists and turns along the way.
But, as both Warren Buffet and Bill
Gates say, keep your focus. You
deserve the rewards and
recognition for your work.
Thanks PQ, I have been reading
the magazine it seems like forever,
as I was a distance learning
student, and your magazine was
invaluable.
Name and address supplied
The editor says: So say all of us –
but we do know how tough it is.
all our approved training providers
with the opportunity to showcase
their services and venues through
much improved profiles.
Secondary to meeting the needs
of our prospects, we also wanted to
give providers the opportunity to
promote themselves to prospects
through the search.
Our previous service was also
commercialised, offering advertising
space which unfortunately did not
allow for specific targeting (for
example, a distance learning
provider advert could be displayed
when a prospect may be searching
for classroom providers). But our
new packages are more relevant,
which benefits both the training
providers and the prospects. It is
important to make the point that
every provider has the opportunity
to better promote their offering but
the £10,000 quoted is solely for
distance learning providers due to
the national coverage of their listing.
Andrew Williamson, Director of
Marketing and Commercial, AAT
PQ news
ROBERT
BRUCE
Carillion
raises the
same old
questions
Who said that business isn’t cyclical?
Every five years or so someone digs
up all the old audit slogans again.
Surely it can’t be right that the
company pays for the audit? Why isn’t
it the shareholders who pay for it?
Surely the auditors should have
spotted if there was any fraud? How
come the auditors have been there 19
years, as they were in the case of
Carillion? How come there are only
four very large audit firms?
The answers to these questions are
as old as the hills. Shareholders have
no intention of stumping up for the
audit. Auditors do spot fraud but it is
the directors who should deal with it.
Auditors do rotate but the balance
between gaining expertise and
becoming too pally with the company
is a difficult one. There are four large
firms, just like there are only a small
number of global firms in many other
fields, because being financially big
enough to do it, and wanting to do it,
means that, like entering a bob-sleigh
team in the Olympics, it is the few
rather than the many who have the
ability.
The FRC can still, by law laid down
by politicians, only discipline
accountants. And there you have it.
The same questions come around. But
if a solution existed it would have
been solved by now. At the heart of
the anger and indignation about
scandals are the politicians. They are
immobile when regulators beg for
change. And in the case of Carillion,
they kept it going when others were
waving red lights.
Robert Bruce is an
award-winning writer on
accountancy for The Times
In brief
CIPFA seeks E&T chief
CIPFA is looking for a director
of education and membership. The
new director will be responsible for
driving the growth of new students
and members both in the UK and
international markets. The job ad
says the salary will be “competitive
based on experience”, and
although an accountancy
qualification is desirable it’s not
essential.
Accountancy students hurt
Accountancy students on a
6 PQ Magazine March 2018
CIMA exam pass rates hold up
CIMA’s latest set of pass rates have
now hit the streets, and apart from
a slight dip in a couple of the case
study exams everything seems to
be ‘holding steady’.
CIMA exam chief Steve Flatman
explained that the November case
study sittings were the biggest on
record, at least since the new
syllabus was introduced. He
CIMA CASE STUDY AUGUST 2017 EXAM PASS RATES
Nov 17 Aug 17
Operational 49% 53%
Management 56% 68%
Strategic 66% 62%
Social networks key to better social mobility
The collapse of Carillion put its
auditors of nearly 20 years, KPMG,
firmly in the spotlight. Now the FRC,
the accountancy watchdog, has
launched an investigation into the
firm’s audit of the construction and
services giant.
The worry for many commentators
is that the outsourcing company
liquidation comes only months after
being given a clean bill of health.
PQ magazine columnist Professor
Prem Sikka told The Times
newspaper: “The accounts for 2016
were signed off on March 1, 2017,
yet by July the company was in
serious trouble. The auditor is
visit to the Jakarta Stock Exchange
were among scores of people
injured when the building
collapsed. The students were
standing on a mezzanine floor
when it just ‘fell down’. Some
students managed to leap to safety,
although others walking below were
injured and trapped under the
promised PQ magazine his learning
CIMA OT PASS RATES
team will be working with regional
First time Total Overall
colleagues to help those who
E1 79% 75% 87%
weren’t successful in the November
P1 50% 45% 69%
2017 operational and management
F1 73% 69% 84%
case studies to have “a better
E2 88% 86% 95%
chance of passing”. He also put the
P2 58% 51% 78%
dip in pass rates just down to the
F2 55% 51% 79%
different cohort.
E3 69% 65% 83%
The first-time OT pass rates show
P3 60% 54% 80%
that students and
F3 62% 55% 81%
their tutors are
May 17 Feb 17 doing better when compares with the F2 first-time
47% 45%
it comes to P2. It pass rate of 55%.
73% 62% now has a first- P1 remains the ‘exam to beat’. It
66% 64% time pass rate of still has a 50% pass rate, the lowest
58%. This of all the OTs.
Breaking down closed professional Another driver of change would
networks with alternative networks be the introduction of more flexible
such as Slack and Coworker is key learning routes into the profession.
to improving social mobility in And, if we are to move forward on
accountancy. This is one of many this agenda, the ACCA report says
recommendations to come out of the bias in the recruitment process
the new report, called Purpose and also has to be addressed.
the Profession, from ACCA. One way of doing this is by
The report says the accountancy collecting data on social diversity
profession needs to take a more and using the results to drive
proactive approach to improving forward change. Too many young
social mobility, and this in turn will people are also still unaware of the
help transform the talent pool. benefits of an accountancy career.
KPMG in the spotlight
over its Carillion audit
supposed to satisfy itself that a the company hired EY to carry out a
company is a going concern. It must review of its finances.
look at cashflow forecasts and what It has been reported that the
kind of margin of error is built in. It company quadrupled its borrowing
is very strange that within three to from 2010 to 2013 and ran up debts
four months the chief executive of £900m and a pension deficit of
walked and the forecast was £600m.
erroneous.” The liquidators are PwC.
Carillion issued three profit • Read what FRC’s Stephen Haddrill
warnings last year, the first in July. had to say to Parliament about the
CEO Richard Howson resigned, and collapse of Carillion, page 20.
falling debris. In all, 75 people wonder why he became a limited
were injured. The students were company. Carr did tell the great
from Palembang, Sumatra. Ken Dodd joke. Dodd said he
didn’t need to pay tax because it’s
Jimmy Carr in Room 101 the Inland Revenue and he lives by
Comedian Jimmy Carr the sea! He got his way…
recently appeared on BBC’s Room
101 show, and much to the Annual Bumper Quiz winners
amazement of host Frank Skinner Congratulations to Adam
said he wanted to put tax loopholes Harwood, Ryan Anderson, Becky
into the room! He said the Paradise Edwards, Thomas O’Neill and
Papers had shown “everyone is Estelle Green, our quiz winners this
doing it, even the Queen and she’s time around. Each wins a fantastic
on money!” He said the rules really Google Mini. So how did you do?
should be clearer, but he did All the answers are on page 16
 The ACCA
Professional
Level is changing
in 2018
Does it affect you?

The ACCA is redesigning the Professional

Level qualification to give students the skills
required of modern accountants.
Through two new papers, Strategic Business
Leader and Strategic Business Reporting, the
changes aim to help students handle real
challenges within the workplace.
If you are currently sitting the P1 or P2 papers
these developments could affect you. June
2018 will be the last chance to sit the papers
under the existing structure.

Read our expert advice on these changes and

how it could affect you.

For more information

 bpp.com/professional-level
 03331 224 093
PQ news

PREM
SIKKA
Could
Carillion be
the catalyst
for change?
Carillion is the latest episode to raise
uncomfortable questions about
auditors. Carillion was assessed to be
a going concern by KPMG on 1 March
2017 for an audit fee of £1.4m and
tax advice for another £200,000. But
within four months it wasn’t. On 10
July 2017, Carillion wrote-down the
value of its contracts by £845m. The
knock-on effect of the write-down was
to reduce cash flow forecast by
£100m–£150m. This write-down
wiped outs its equity of £730m.
Another £200m write-down was
announced in September 2017.
Carillion had deep-seated financial
problems. It was operating on wafer-
thin margins of between 2%-5% and
had little capacity to absorb contract
overruns. During 2012-2016, it paid
out £394m in dividends, but had
pension liability of over £800m. Its
2016 balance sheet showed long-term
debts of £1.5bn. Out of total non-
current assets of £2,163m, £1,571m
related to goodwill, an asset of
dubious value for a distressed
business and unlikely to be accepted
as collateral by lenders. So how did
KPMG manage to conclude that
Carillion was a going concern?
The profession’s usual response is
to mediate the crisis by wheeling out
the expectations gap and blame the
public for expecting auditors to deliver
robust audits. Meanwhile, auditors
continue to play Russian roulette with
the knowledge that they enjoy too
many liability shields.
Audit reforms are long overdue and
the public is entitled to expect greater
value for money from auditors.
Prem Sikka is Emer itus
Professor of Accounting
at the University of Essex
CIPFA’s mixed bag of results
Company Financial Reporting was CIPFA JUNE 2017 RESULTS Dec 17 Jun 17 Nov 16
the ‘stand out’ CIPFA paper in
December 2017. The pass rate has
Professional Certificate
Financial Accounting 64.3% 69.0%% 80%
always been ‘up and down’ in recent
Management Accounting 89.2% 86.7% 94.9%
times, but for this sitting it was a lot
Company Financial Reporting 46.4% 82.3% 63.2%
more down – at 46.4%. By
Audit & Assurance 65.2% 94.3% 82.3%
comparison, June sitters managed
Professional Diploma
an 82.3% pass rate.
Public Service Financial Reporting 64.8% 40.5% 61.4%
Candidates struggled with the
Taxation 85.4% 88.6% 75.4%
Audit and Assurance paper this time
Corporate Governance & Law 92.3% 89.5% 84.5%
too – the pass rate slumped to
Business & Change Management 85.7% 88.6% 58.7%
65.2%. In June, the paper had a
Strategic & Policy Development 84.4% 81.3% 81.9%
94.3% pass rate, and it was 82%
Financial Management 60% 65.9% 69.1%
and 91% in the previous two sittings.
Strategic
Meanwhile, the Corporate
Strategic Public Finance 72.4% 69.2% 66.4%
Governance and Law paper moved
Strategic Case Study 82.2% 79.4% 73%
up to impressive 92%, and 89%
passed the Management Accounting paper. In June, the pass rate fell to 64.8%. The Strategic final level
paper. 40.5%. CIPFA was quick to put extra papers also had excellent pass rates
Another good news story from resources in place and this has in December. The case study rates
December is the jump in the PSFR meant the pass rate has shot up to impressed at 82.2%.
Flesh and blood beats HMRC computer
A judge has warned HMRC that a fine. Judge Richard Thomas said:
tax official rather than a computer “In my view the requirement… is
programme should make for a flesh-and-blood human being
assessments for any fines. who is an officer of HMRC to make
The surprise judgement comes in the assessment and decide to
the case of Khan Properties Limited, impose the penalty and give
and there is real concern that this instructions, which may then be
ruling could lead to a surge in executed by a computer.”
successful appeals, costing the RSM’s George Bull said that the
public purse millions of pounds in general view was that automatic
lost revenue. fines were valid, so the decision has
Khan Properties appealed against taken the tax community by
a £100 late company tax return surprise.
Free ACCA P1 and P3 webinars
If you are planning to sit P1 and/or
P3 in March or June this year, then
you need to sign up quick to
ACCA’s FREE webinars. resources on offer. and P3 revision webinars and these
The new Strategic Leader exam You can join Dr Constatine are available on demand. The
replaces P1 and P3 come Kiritsis for his live and interactive series advises students on how to
September 2018, and there are mini revision series on: answer questions effectively and
only two more exam sessions • P1 – two-part revision series, 20 covers the ‘Do’s’ and ‘Don’ts’ when
before the change. and 21 February, noon–2pm GMT. answering questions.
ACCA is strongly encouraging • P3 – two-part revision series, 26 There are lots more resources
anyone planning to sit P1 and/or & 27 February, noon–2pm GMT. available for PQs – go to the ACCA
P3 to access the free webinar Dr Kiritsis has run previous P1 website to sign up.

PwC’s India ban
PwC’s Indian unit has been
banned from auditing listed
companies for two years. The
ban, by the Indian Market
Regulator, surrounds PwC’s
audit of Satyam Computers, where earnings
and assets were inflated for many years. The
collapse of Satyam Computers in 2009 cost
shareholders more than $2bn. PwC has said it
will appeal the decision, although the ban is
due to come into effect on 31 March.
Deloitte targets legal services
Deloitte wants to convert part of its UK practice
into a law firm. Senior partners at the London
office have confirmed that they are in talks with
the Solicitors Regulation Authority over an
application for a licence. Deloitte is the last of
the Big four firms to enter what is considered
to be an increasingly competitive market. PwC,
EY and KPMG all won their licences in 2014.
‘Stealing the exam’
Six US accountants have now been charged by
the US Securities and Exchange Commission
over alleged participation in a scheme to
misappropriate and use confidential
information on the Public Accounting Oversight
Board’s (PCAOB) planned inspections of
KPMG. The SEC says that unauthorised
disclosures enabled KMPG partners to analyse
and revise audit work papers in an effort to
avoid negative findings by the PCAOB. At the
time, nearly 50% of KPMG’s inspected audits
were deemed to be ‘deficient’. Three former
PCAOB officials, Brian Sweet, Cynthia Holder,
and Jeffrey Wada have all been charged, along
with three former KPMG accountants David
Middendorf, Thomas Whittle and David Britt.
The SEC’s claims the misconduct began in
2015 and went on until February 2017.
EY Parentaship
EY has launched Parentaship, a parental
advice campaign to help families understand
how modern apprenticeships can offer a
valuable route into a professional career. The
hope is that it can help to overcome misgivings
about apprenticeships being a real alternative
to university that many parents still have.

8 PQ Magazine March 2018

Be ambitious.
January and September start dates available
• Applied Accounting MSc
• International Accounting and Finance MSc
• International Finance MSc
• Accounting and Finance BA (Hons)
• Accounting and Entrepreneurship Top-up BA (Hons)

• You’ll be joining an international business school, which develops

practical and digital skills through software such as bloomberg.
• Taught by outstanding academics who are research active in the field
• A strong emphasis on student experience and employability, whereby we
develop skills for future careers in accounting and finance
• On completing these courses, you will be on a fast track to becoming Accountancy
ACCA qualified, and exempt from a number of exams. college of the year

No 4 in the UK Overall and No 2 No 1 UK university for

for ‘Satisfied with Teaching’ in the ‘Student Experience’
area of Accounting and Finance Sunday Times League Table 2017 in
(Guardian league table 2018) the area of Accounting and Finance

0800 923 88 88 | Course.enquiry@lsbu.ac.uk | www.lsbu.ac.uk

Numerous accreditations and professional links
PQ news
ZOE
ROBINSON
Exercise
your body
and improve
your brain
Like millions of people around the
world, I’m sure many of you pledged
to get more exercise in 2018. It’s no
surprise – once the clocks go back,
dark nights make exercising more
difficult and, let’s face it, as soon as
we get to December we’re all too busy
eating and drinking to worry too much
about our fitness. January is therefore
an ideal point to kickstart a new you.
But I wonder how many of you have
kept your resolve? In particular, if
you’ve started studying for exams it’s
hard to find the time and motivation to
hit the gym or go out for that jog.
However, neuroscientific research
has identified many benefits of
exercise, proving that the exact time
you should ramp up your exercise is
when you’re trying to learn new
things. To start with, studies have
shown that exercise improves our
ability to focus attention. Brain
functions are improved, allowing you
to not only pay more attention but also
to shift it around from topic to topic.
Exercise combats stress. It
releases chemicals such as serotonin
and dopamine that are often depleted
through anxiety or depression.
And the clincher – it has been
demonstrated that your memory can
even improve with increased levels of
exercise! Yes, exercise actually helps
you grow new and maintain existing
brain cells, helping you process new
thoughts and remember things for
longer. So if you’ve already given up
on those New Year resolutions you
might want to think again!
Zoe Robinson is Learning and
Programmes Director at
Kaplan Financial
ICAEW PQs must ‘mind UK GAAP’
Business Strategy remains the
‘easiest’ paper to pass for
Professional Level ICAEW PQs. The
December pass rates, just out,
show that 89% of sitters passed the
exam at their first attempt.
And the hardest paper for first-
timers? That would be Financial
Accounting & Reporting (UK
GAAP), with a pass rate of 67.5%.
The stats continue to show that
students sitting two papers have
the best chance of passing all the
papers they sit. Some 70.1% of
10
The ACCA says the December
2017 pass rates were ‘impressive’,
and who are we to disagree!
True, the P3 pass rate was a
healthy 56%, and even P7 had a
success rate of 35% this time
around (that’s high!). The P6
advanced tax paper pass rate also
rose to 36%.
THE ACCA DECEMBER 2017 PASS RATES
Dec 17 Dec 16 pass rates, and the P3
F1 Accounting in Business 77%
F2 Management Accounting 65%
F3 Financial Accounting 71%
F4 Corp & Bus Law 77%
F5 Performance Management 42%
F6 Taxation 51%
F7 Financial Reporting 49%
F8 Audit & Assurance 40%
F9 Financial Management 48%
P1 Governance, risk, ethics 51%
P2 Corporate Reporting 52%
P3 Business Analysis 56%
P4 Adv Financial Management 33%
P5 Adv Performance Management 29%
Continued from page 1
students were reminded that they
are bound by the Code of Ethics at
all times. Students also agree to the
exam terms and conditions as part
of the process of scheduling an
exam. Those exam conditions state:
“The exam is CIMA confidential
and is protected by law. It is made
available to you the candidate,
solely for the purpose of being
assessed by CIMA. You are
expressly prohibited from
disclosing, publishing, reproducing
Get yourself a new career – become a money mule!
Santander recently conducted a
‘fake job advert’ experiment to
discover how many of us would
apply for a job as a money mule!
In the advert a company called
Money Spark was offering
prospective employees a role as a
Financial Transaction Control
Analyst. This exciting technology
December sitters who opted to sit trainees who passed the one paper
two papers passed both. This they sat. One PQ sat four papers
compares with the 66.9% of ACA and managed to fail them all.
ICAEW PROFESSIONAL LEVEL RESULTS
Dec 17
Business Strategy 89.0%
Business Planning: Banking 72.3%
Business Planning: Insurance 77.5%
Business Planning: Tax 79.8%
Financial Management 77.3%
FA & Reporting – UK GAAP 67.5%
FA & Reporting – IFRS 74.8%
Audit & Assurance 73.2%
Tax 84.9%
Are ACCA pass
rates on the up?
However, the P5 pass rate
dropped to 29%, when compared
with the September
82% pass rate fell to 33%.
Sitters had said P4,
63%
71% F3 and P6 were the
tough tests this time
82%
40% around, but this wasn’t
52% particularly reflected in
49% the pass rates.
40% After taking F4
45% (which has a pass rate
49% of 77%) out of the
51% equation, it continues
49% to be F8 that has the
33% lowest Skills pass rate,
30% at 40%.
F5 is never far
Sharing is dangerous
or transmitting the assessment, in
whole or in part, in form or by any
means, written, electronic or
mechanical, for any purpose
without the prior written permission
of CIMA.” It also specifically says
you may not… “share or discuss
the question or answers seen in
your exam with other candidates”.
Interestingly, the disciplinary
committee said that students
start-up company was looking for
responsible, hard-working people
who could “dedicate 3-5 hours per
day to work on administrative and
financial support activities across
the wider financial and cost teams”.
Details of the role included
“receiving and processing of
incoming cash funds” and
In total, 5,880 PQs
Sep 17 sat 9,737 papers in
90.5% the December session
74.6% – 1.65 per PQ.
64.5% PwC students
77.1% picked up the first five
65.8% places in the
71.3% international order of
80.3% merit, and top student
86.1% this time around for
73.5% them was Mihir Patel.
behind, either. This time the pass
rate was 42%.
ACCA’s executive director, Alan
Hatfield, emphasised: “We’re
delighted with the improvement in
the many pass rates at December
2017 sitting.”
The Essential exam pass rates
were strong, he explained,
especially P3. He pointed out that
the ACCA is carrying out extensive
‘Train the Trainer’ sessions across
the world in preparation for the
Strategic Business Leader study
exam being introduced later this
year.
Some 139,039 students sat
exams in December, an average of
1.37 papers each.
asking other sitters to share or
discuss questions and answers are
not a direct breach of the exam
conditions, but it is a direct breach
for other candidates to answer the
questions. However, by inciting
other students to break the
conditions candidates were seeking
an unfair advantage in taking the
exam and breaking the Code of
Ethics big time.
“transferring of funds to accounts
indicated by our manager”.
A staggering 32% of Brits said
they would apply for the job that
would have helped criminals to
launder money! And 7% said they
would still apply for the job even
after they were told it involved
criminal activity.
PQ Magazine March 2018
TRY A BETTER
WAY TO ACCA

Choose AVADO for your next

ACCA paper and save 30%
Experience learning that works:

ACCA pass rates up to 95%*

Award winning tutors, available online, by

phone and email to get you exam ready
Engaging, bite-size content at your fingertips,
study whenever and wherever you want
“I never expected online learning would
give me so much support. I really like the
course structure - from day one the exam
questions are built in - it makes the
revision so much easier”

Full package with tuition, revision and Doreen Liu

mock-exams all included

Finalist for Best Online Distance Learning

Programme 2017

Experience a better way to ACCA with AVADO and save 30% this month**
Call today on 020 7173 5685 | www.avadolearning.com/pq

*Save 30% on the full ACCA pathway and papers F5, F6, F7 or F8. New AVADO students only, book by 28th February.

** Based on results from the ACCA F1 paper at the March 2017 sitting.
PQ CIMA syllabus review

Bringing finance into the digital age

PQ magazine sits down for one of accountants today need to understand and
embrace technology. There is no avoiding it and
its regular chats with the man in Tagoe believes it will create great opportunities
charge of the ongoing CIMA for finance people and what they do. If CIMA
can give them the right skills they will be able to
syllabus review, Noel Tagoe do the things CEOs want – to enable, shape and
tell the story.

D
r Noel Tagoe is in no doubt about the
task ahead. His job is to launch a new
CIMA syllabus this summer, which
among other things must bring finance into the
digital age.
He was keen to stress he wasn’t calling it
digital finance. Like Deloitte, he prefers to say it
that way. Tagoe emphasised: “I am not digital, I
am a human being who is navigating and
thriving in the digital age!”
Currently, though, he is putting the final
touches to the competency framework. This will
outline what a financial professional needs to be
able to ‘do’ from cradle to grave. And, he says,
this will be “nothing revolutionary”. We aren’t
looking at a root-and-branch change here, Tagoe
confirmed.
What these competences should do though is
ensure the syllabus is totally in tune with the
world students operate in both today and
tomorrow. Tagoe stressed employability is key
(he said it quite a lot) and he promised he won’t
be leaving students high and dry.
What is not in doubt is management
He was quick to stress that accountants don’t
need to collect the data or even process it. What
they will need to do is ensure the right data is
collected, and increasingly this will be non-
financial data, too. Tagoe stressed that it doesn’t
mean accountants will be leaving the financial
data behind, they just need to create a more
joined up picture for businesses.
This neatly led him onto another area that is
high on his agenda – value and trust. There is a
huge move from a tangible to intangible world.
He knows he needs to answer the question:
what do we do with that?
Trust is a major part of all this. A lack of trust
can be a barrier to entry into markets, and if you
have it it means you can be given a bit of leeway
when disruptors appear.
This all means that Tagoe will want CIMA
students to think differently right from the start.
They will be asked to think about digital
enterprises and digital consumption. PQs also
need to understand intangible value and how
they can generate future value. PQ
• Read more from Tagoe in the coming months.

Good luck for

your upcoming
March exams!
Do you need more support for your exams?

Prepare to pass with the ACCA Exam Club Hub,

where you can download exam-specific resources,
find information about tuition providers, get practical
advice from ACCA staff and members as well as view
live and on-demand webinars.

Register now:
accaglobal.online-event.co/registration/acca-headstart-job-fair

12 PQ Magazine March 2018


Y Accountancy must lead
ou would have all seen
February’s edition of PQ
magazine with two conspicuous
words jumping out from the front page –
‘Social mobility’. It is certainly the
buzzword of the moment, with
government, professions and educational
institutions being asked to do more to
create an open access environment for
people of all backgrounds. But what
exactly does it mean? According to the
Collins English Dictionary it is “a person’s
ability to move to a different social class,
usually from a lower to a higher social
class”.
At ACCA, ‘social mobility’ isn’t just a
catchphrase. For the past 114 years we
have been committed to opening up
routes to the profession that were not
previously available. In 1904, ACCA was
founded as a result of the ‘closed shop’
attitude to the accountancy profession. It
is no coincidence that our first core value
is ‘opportunity’, which falls right at the
heart of our organisation. Diversity,
innovation, integrity and accountability
make up the remaining four values,
which signify a dedication to creating a
strong, fair society for all.
ACCA recently conducted some
research around social mobility and the
profession. Purpose and the profession, a
global report which surveyed almost
14,000 respondents (53% ACCA PQs,
the rest ACCA affiliates and members),
found that the potential talent pool of
professional accountants is changing.
However, despite this change, the
profession as a whole has a long way to
go in raising the standard to continue to
attract and support a diverse global talent
pool through their careers.
Aspirational and accessible
The survey also found 52% of
respondents came from backgrounds
where neither parent nor guardian had
gone to university. An overwhelming
number of respondents felt that social
mobility really did matter, with 92% of
those asked believing individuals should
have access to career opportunities
regardless of their social background.
The report highlighted a great area of
optimism around social mobility, with
accountancy remaining an aspirational
and accessible route for many in
developed and developing nations.
What was also really positive to see was
that 74% felt ACCA was more accessible
than other professional accountancy
qualifications. ACCA’s qualification does
not require a university degree and its
flexibility extends to multiple annual exam
sittings, to allow learners to choose an
exam time that fits with their
commitments. The online learning
programme ACCA-X also provides free
and affordable on-demand courses.
designed to help individuals gain financial
literacy skills.
However, it is clear there is still some
PQ Magazine March 2018
the way when it comes to
equality of opportunity
The UK’s accountancy profession needs to change so it reflects the society it
services – and a new ACCA survey highlights this point, says Maggie McGhee
ground to cover in making accountancy,
as a whole, even more approachable.
Similar tones were set by a piece of
research conducted by the Bridge Group,
cited in last month’s PQ. It found that
trainee accountants were more likely to
be successful in their applications if they
were privately educated. The study also
said firms should not solely rely on A-
levels and online-tests being sole
indicators of future professional
performance.
‘Male, pale and stale’
Is everyone familiar with the accountancy
profession and what it does? ACCA’s
report highlights the importance of the
profession working harder to engage
young people with the opportunities and
benefits it offers. Across the board, we
social mobility PQ
need to instil the
confidence in individuals
that the world of
accountancy welcomes
those from diverse
backgrounds and different
academic levels.
ACCA research also
revealed that only 13% of
respondents were
influenced by a career
advisor or by a school or
university teacher. This low
number proves there is a
large gap to fill in the
profession being
proactively offered to
students. Commenting on
the research, ACCA’s
director of professional
insights, Maggie McGhee,
said: “The perception that
‘this is not for me’ is a
dangerous stigma to be
attached to a profession.
Many still see the
profession as middle aged,
white and male… while
this is no longer true, it is
likely that only those with
prior knowledge will
appreciate the diversity of
the profession and
flexibility of access.”
It is evident the social
mobility puzzle will not be
pieced together overnight,
but until then we all have a part to play
in breaking down barriers and opening
up the doors to talent irrespective of
background. The accountancy profession
needs to recognise the pivotal role it has
in facilitating a holistic approach between
business, education and government.
Encouraging better data collection and
interpretation on social mobility will
enable an intervention which could make
a difference and highlight where existing
initiatives are failing.
As the profession continues to evolve
within this new digital era it will open up
opportunities to those with a different
skillset and interest – those who may not
have previously considered accountancy
as a potential career. PQ
• Maggie McGhee is ACCA’s director of
professional insights
13
PQ ACCA P5

How to be part of the 29%

Mustafa Muchhala offers some sound advice on how to pass the Advance Performance Management paper

I
want to share with you a typical email I
received from a student last October:
“Hello Mustafa, I was just wondering
whether you could give me any tips on retaking
P5 this December. What steps would you
suggest I take to ensure I pass?”
P5 continues to see a very low pass rate (29%
in December 2017). The examiner’s comments
repeatedly spell out the reasons why students
are not crossing the line, but it seems these
comments are being ignored.
So how did I respond to this student? Well, I
advised them to:
1. Start by reviewing the P5 syllabus to ensure
that your knowledge is up to speed. Examiner’s
comments have repeatedly mentioned that rote
learning of P5 knowledge and then regurgitating
it in the exam will score no more than 20-30%
of the marks. As you know, this is not sufficient
to pass the question – so that showing you
understand the concepts is more important than
rote learning.
2. Revising the assumed knowledge from F5
and F9 is critical to exam success. The
examiner continually examines these and gets
very annoyed when students can’t do basic
calculations, which is understandable. Read the
article ‘Bringing forward F5 knowledge and skills
into P5’ from the ACCA website.
3. Question practice should take up over 50% of
your study time. You should practise as many
past exams as you possibly can. Plan your
answers, even if you don’t write out all of them in
full, before reviewing the solution. Use the
P-E-A approach (Point, Explain and Apply) to
each scenario. Do not fall into the trap of auditing
the answers: in the exam this will not be a
relevant skill as you’ll have no answer to turn to.
4. Get some of your full written answers marked
by your tutor, or by someone who is taking or
has passed P5. Get constructive feedback and
improve your answers.
5. Finally, attempt a mock exam to time, and get
it marked. Feedback will help you work on your
time management and exam technique. This
final step is a must-do rehearsal before the
actual exam.
Ensure you read the examiner’s comments to
the previous exams and so avoid the mistakes
that others have made. If you practice enough
questions, and focus on understanding and
analysis, success will be yours. Best of luck!
I was pleasantly surprised when I received an
email after the December results: “Hi Mustafa, I
passed with 56 marks. This was my fourth
attempt (45, 49, 39 marks in previous
attempts).Your tips really helped to obtain those
extra brownie point marks to get me over the
finishing line. Many thanks for all your help.”
To pass you must learn from your mistakes.
We all make them. The key is not to let them get
you down, but to learn and grow from them. And
then not to repeat them! PQ
• Mustafa Muchhala is a freelance
professional tutor and writer

Our qualification
is evolving.
Get ready for the first sitting of Strategic Business
Leader (SBL), going live in September 2018.

SBL will give you the opportunity to:

• Carry out an innovative case study exam.
• Respond to real world challenges accountants of the future will face.
• Study a syllabus that incorporates essential professional capabilities:
leadership, governance, strategy, risk, technology, organisational
control, finance and innovation/change management.

• Demonstrate your communication, commercial acumen, analysis,

scepticism and evaluation.

Find out more: accaglobal.com/sbl

14 PQ Magazine March 2018


Don’t fall prey to the
Corporate identity theft is on
the increase so it falls on us
all to be vigilant. The case
identity thieves
study here outlines a fictional
scenario involving identity
theft and offers some talking
points and courses of action
The scenario
Accounting firm employee K has recently
completed her training contract and is
now being contacted by recruitment
consultants. One of these calls outlines a
job that sounds too good to be true. The
discussion quickly turns to K’s client
portfolio and the structure of her firm.
The headhunter seems to know (and be
on good terms with) a number of K’s
colleagues. He promises to call back
soon with more details of this fantastic
opportunity.
In the pub that evening a member of
the finance department (who received a
recruitment call similar to K’s) can be
heard bragging to colleagues about a
great new career opportunity that is
coming his way – that is when he’s not
complaining noisily about the firm’s
‘woefully inadequate’ IT systems.
Not long after, some of the firm’s
clients start to receive correspondence
from someone purporting to be K telling
them that certain transactions on which
K’s firm has been advising now need to
go ahead quickly and that they must
make the necessary bank transfers
urgently. Some clients have already made
their transfers and are now contacting the
firm to check on progress.
It soon emerges that the firm’s
systems, including its customer ledger
information, have been hacked over the
weekend. The transfers made by clients
were in fact diverted into a fake client
money account set up by the criminals.
The money has now disappeared.
Discussion points
1. In what ways, if any, was this crime
‘enabled’ either by the firm or individual
employees? K and her colleague in
finance are not only victims. Having been
convinced by a fraudster to reveal
sensitive information, they have become
For the latest issue see issuu.com
NQ magazine is an e-mag for newly
qualifieds who want to get ahead
All the back issues are available too – type NQ magazine into www.issuu.com
Sign up today via the PQ magazine website – www.pqmagazine.com
PQ Magazine March 2018
unwitting enablers. Without the
information they provided the criminal
plan may well have failed.
Any firm could find itself in a situation
like this purely because of simple lapses
in IT or information security and a failure
to monitor client activity. Many cyber-
attacks are launched at the weekend in
the knowledge that there will be no one
around to notice the untoward activity. By
Monday morning it is often too late.
2. Which fundamental ethical principle
is K likely to have breached?
Confidentiality.
3. How would you stop this happening
again? Many cybercrimes include an
element of old-fashioned, one-to-one
deception (now called ‘social
engineering’). Professional accountants
have skills which are often in high
demand and they can receive many,
sometimes flattering, calls from
recruitment consultants. Of course
cybercrime PQ
employers and clients alike are owed a
duty of confidentiality. But the sharing of
detailed information about the firm and
the affairs of its clients, as happened
here, can easily become much more
than a breach of confidentiality by
actively enabling a fraud or cyber-crime
that might otherwise have fallen at the
first hurdle.
All employees should receive regular
training on the ethical requirements of
their role, the nature of the fraud risks
that threaten the firm and its clients, and
what they can do to help prevent these
kinds of crime. They should also be
actively encouraged to think carefully
about what information – especially work
information – they share on social media,
and to question the professionalism of
their motives for doing so.
Meanwhile, the firm should:
• Ensure that documents carrying
sensitive information are destroyed
securely.
• Monitor online references to itself – this
can help identify imposters.
• Carry out a systems health-check –
which could include tasking a consultant
to attempt unauthorised entry to critical
systems – and get professional advice on
data security.
• Educate staff on IT security and how to
spot cybercrime red flags.
• Follow the latest expert guidance (from
GCHQ) on secure passwords – at least
eight characters long, no dictionary
words, change them only after a
suspected or actual security breach.
• Ensure that firewall and anti-virus
software is up-to-date.
• Use data encryption software in
correspondence.
• Make special efforts to protect access
to applications like searchable databases
– these can give criminals a way in.
• Remember: weak controls make crime
possible. PQ
• Thanks to the CCAB for this article
15
PQ ICAEW HE conference

Ready for the fourth

rather than employers.
Climbers: Permanent people who want
rapid career progression and expect to
put in the hard graft to get there.

industrial revolution?
However, they still want greater control
over where and when they work.
Balance seekers: Permanent people of
all ages who wants the benefits of a
permanent job but might be looking to
reduce their hours or gain more control
over when, where and how they work.
Rotators: Experienced employees who
like to continually take on new projects
and challenges to keep work interesting,
but don’t aspire to become senior
leaders. PQ

PQ dropped into the ICAEW
HE conference to hear how
the future might look for
today’s trainee accountants
a year, and Stillwell admitted people are
the firm’s biggest cost and greatest asset.
Embracing AI will, she said, mean that
EY’s full-time numbers won’t grow as fast
as they have in the past 15 years (it
currently has 65,000 FTEs). The type of
employees EY needs is also changing

T
he factory of the future will have
just one human and one dog in
it. The human is there to feed
the dog, and the dog is there to stop the
human interfering with the machinery!
That’s the tongue-in-cheek story EY’s
managing partner for Talent, Maggie
Stillwell, told when opening her talk on
the future relationship between robots
and accountants.
Stillwell revealed that the robots are
already ‘plugged in’ at her firm. It has
around 400 robots for clients and 270
working for the firm’s employees. That’s
nearly 700 up and running.
Using tools such as its Capital
Allowance Asset Review Tool (Caart)
makes PQs’ lives very different today. A
job that used to take 15 hours to do now
takes three seconds. More tools like this
are coming, too!
Currently, EY takes on 1,600 students
(see below).
The upside to all this could be a
downward pressure on the average age
of partners. It was suggested last year
that it could fall to as low as 27-30.
Stillwell said that currently 40 is more
likely to be the age of becoming a
partner, but she wasn’t ruling out that
dropping dramatically. Virtual reality in the classroom
She said there were five key personas Swansea University is leading the way in using virtual
that describe the talent EY need today reality to help its accountancy students learn.
and tomorrow. Tutor Terry Filer teamed up with colleague Marc Holmes
So, what are one of these five are you? to create a virtual reality world to help taxation students
Side Hustlers: Portfolio workers who split learn about capital allowances. Using Google cardboard
their time working for EY with another headsets at just £5 a pop made it all very affordable.
Students simply has to download the app on their phone
job, project or learning experience –
and they were away in a virtual world.
whether that’s to upskill, start another
Students said they wanted to see more of it, although
career or create their own business.
one said “it makes me feel dizzy”! Another student felt VR
Hummingbirds: Workers with specialist helps relieve students from boring study and enriches their
skills and experience who have earned experience – strong praise indeed.
the freedom to choose their ‘gigs’ and • We’ll have more on this story in next month’s PQ
see companies as partners/vendors,

Bumper Quiz: the answers

Here’s the answers 2011-12 season
10) Men’s 4x100 metres
to our annual relay team
quiz – how many 11) Donald Trump
did you get right? 12) Gavin Williamson 23) Liam Gallagher 33) ‘Women and children 42) Hydrogen
13) Harvey 24) The Tick first’ 43) Kazakhstan
1) Huddersfield Town 14) Bruce Forsyth 25) Aston Merrygold and 34) 36 44) Sumatra, Indonesia
2) Mexico 15) Colin Kaepernick partner Janette Manrara 35) Saint Matthew, he 45) Sir Frank Whittle
3) Lebanon 16) Fake news 26) George Clooney started life as a tax collector 46) The mantle
4) Joe Root 17) Chase Carey 27) Robert Catesby 36) Italian 47) The Nile
5) Corry Evans 18) Belgium 28) One Direction 37) 2007 48) A Terabyte
6) It was a draw (1-1) 19) Bono 29) Jodie Whittaker 38) Isaac Asimov 49) The moon
7) Mark Samson 20) Cassini Huygens 30) Chris Hughes 39) Cynophobia 50) Madagascar
8) Houston Astros 21) Army Officer 31) Carousel 40) Y 51) Venus
9) Manchester City in the 22) Moonlight 32) A3 41) Hansard 52) Keratin

16 PQ Magazine March 2018

Use your achievements
to become an ICB Member
Your qualifications with AAT, ACCA, CIMA or another
professional body could qualify you for membership
with the world’s largest bookkeeping organisation.
If your qualifications were achieved within the last
2 years you can apply for exemptions with ICB and
become an ICB bookkeeper gaining access to:

Professional recognition
ICB’s extensive National Branch Network
The world’s largest bookkeeping community
The opportunity to apply for an ICB
Practicing Licence
Free legal and technical advice

For more information please call

0207 856 2567 or email us at achievemore@ICB.org.uk The Institute of
www.bookkeepers.org.uk Certified Bookkeepers

AVAILABLE NOW!

Are you
exam ready?
You need
PQ-GO!
Take our series of free online
tests – and get that exam pass
PQ payoff tables

Live life to the max

In the latest of our occasional Back to Basics series,
AVADO lecturer Tom Bulman offers advice on how to
deal with payoff tables

B
usiness risk is the possibility that a business may have lower than
expected profits, or may even make a loss. Where there is a
range of possible outcomes and a range of possible responses,
the business may use payoff tables to represent the different options and
select the most appropriate one.
It is worth noting that business leaders will interpret payoff tables
according to their own risk attitude:
• Risk seeker – they seek the maximum return regardless.
• Risk neutral – they will consider the most likely outcome.
• Risk averse – they are concerned about the worst possible outcome.
In using payoff tables, it is important to understand the three types of
decision criteria:
1. Maximax – want the highest return under the best-case scenario.
2. Maximin – want the highest return under the worst-case scenario.
3. Minimax regret – want the option with the lowest maximum regret.
Step 2: From those three outcomes, now select the decision that
Example MAXIMISES the payoff. Clearly $750 is the best result and therefore the
Let’s say we are running an ice cream business and we know that sales business will place a large order. This follows the principle where the risk
vary according to the weather. The hotter it is, the more sales we make seeker will seek the maximum return regardless – in this case, regardless
and vice versa. of the weather.
We need to decide how many litres of ice cream to buy and we vary the
size of the order according to the different weather conditions. If it’s hot we 2. Maximin i.e. MAXImise the MINimum payoff
want to have lots of ice cream in stock to make lots of sales, and therefore Using the same payoff table as before, this time we want the highest
increase profits. But if it’s cold we don’t want to end up with lots of unsold return under the worst-case scenario.
ice cream. Step 1: Select the MINIMUM payoff for each decision criteria.
Accordingly, we can draw up a payoff table showing the results of the TABLE 3 COLD WARM HOT
different options as follows: SMALL ORDER $250 $200 $150
TABLE 1 COLD WARM HOT MEDIUM ORDER $200 $500 $300
SMALL ORDER $250 $200 $150 LARGE ORDER $100 $300 $750
MEDIUM ORDER $200 $500 $300
LARGE ORDER $100 $300 $750 Repeating the same process as before we can look at the results for small
orders: Cold $250, Warm $200 or Hot $150. We want to minimum (worst)
It is worth pausing for a moment to consider the decision we are making is of those and that is $150 (hot). For medium orders the worst outcome is
about what size of order to place and not what the weather will be. In $200 (cold) and for large orders the worst outcome is $100 (also cold)
answering these questions remember to evaluate the options for each Step 2: From those, select the decision criteria that MAXIMISES the payoff
decision. For example, a small order might result in $250, $200 or $150 i.e. medium. Remember, we wanted the highest return under the worst-
depending on the weather. Take care that you understand which way you case scenario.
need to “read” the table before trying to answer the question.
We can now use this table to help us make decisions under the different 3. Minimax regret i.e. MINImise the MAXimum REGRET
types of criteria. Step 1: Construct a table of REGRETs.
a) Find the optimal decision for each of the order criteria (as per Table 1).
1. Maximax i.e. MAXImise the MAXimum payoff b) Calculate the regret for each decision by deducting each of the possible
Step 1: Select the MAXIMUM payoff for each of the decision options. This outcomes from those optimal decisions. For example, the regret for placing
is often the trickiest part but the key is to focus on the decision that the a small order when the weather is cold is $250 – $250 = $0, whilst the
business is trying to make. Here the business wants to know what size of regret for placing a medium order when the weather is cold is
order to place so we need to select the best answer for each of those $250 – $200 = $50, and so on.
options: TABLE 4 COLD WARM HOT
TABLE 2 COLD WARM HOT SMALL ORDER $0 $300 $600
SMALL ORDER $250 $200 $150 MEDIUM ORDER $50 $0 $450
MEDIUM ORDER $200 $500 $300 LARGE ORDER $150 $200 $0
LARGE ORDER $100 $300 $750
Step 2: Select the MAXIMUM regret for each decision criteria. For small
Starting with small orders, we read across the table and find the best result orders, this is $600 (hot), for medium orders it is $450 (hot) and for large
under each of the weather conditions. The options are Cold $250, Warm order it is $200 (warm).
$200 or Hot $150. We can see that with a small order the best result is Step 3: From those, select the decision criteria that MINIMISES the regret
$250 (when the weather is cold). and this is $200, so we should place a large order.
Repeating this process for the other two possible decisions, if we place a As always, understanding the theory is an important first step. You
medium order, the best result is $500 (when the weather is warm) and if should then go on and test your knowledge by doing plenty of practice
we are considering a large order the best outcome is $750 (when the questions. PQ
weather is hot). • Tom Bulman is an ACCA F5 tutor for AVADO

18 PQ Magazine March 2018

 JOIN NOW!!
CALL: 02072529331
T COURSES ACCOUNTING SHOR
Saturday Classes & Work Experience Available
Short Courses
Starts - Sage Payroll
March 2018
- Sage 50 Accounts1,2 &3
JOIN NOW!
- Management Accounts
- Value Added Tax (VAT)
- Excel Spreadsheet and others

March 2018 DISCOUNT

Daytime/Evening Courses/Saturday:
AAT Level 2, 3 & 4 / Distance Learning Available
**Payment Plan**
WORK PLACEMENTS AVAILABLE FOR ALL OUR COURSES

Free Apprenticeships Available

For more information:
Call: 020 7252 9331
Email: admin@thetrainingplace.org
Address: Carlton Cottages,
12 New Cross Road
@Training_Place of Excellence
London SE14 5BE 07496141960 where quality trainings & practical work placements take place
PQ Carillion collapse
The FRC’s Stephen Haddrill
recently answered questions
from the Business, Energy
and Industrial Strategy and
Works and Pensions
committees. Here are extracts
of the best bits…
Chair: Thank you very much for coming
to give evidence on the collapse of
Carillion to our two Select Committees
this morning. I will start by asking you to
provide us briefly with an update of your
investigations into Carillion.
Stephen Haddrill (SH): We announced
yesterday [29 January 2018] that we will
have a formal investigation into the audit
by KPMG of Carillion and we are looking
at the three years from 2014 to the
present day. We have said that the scope
of the investigation will include the going
concern matter, pensions matter and how
the contracts were being assessed, and it
will look into other matters as well.
There is also the question of whether
we launch an investigation into what we
call members in business, the
accountants who were in the company.
That is under different regulations and
has a different test for launching the
investigation, a misconduct test rather
than a breach of regulations test. It is
going to take us a little longer to work
through whether there is a proper basis
for launching the investigation, but we
hope to do that very soon.
Chair: What does “very soon” mean Mr
Haddrill?
SH: I would hope certainly within a
matter of a few weeks. We have managed
to launch the investigation into the audit
very quickly and that would be our
intention with that as well.
Chair: How long would you expect your
investigations into KPMG and then
potentially into the accountants at
Carillion to last?
SH: I fully understand that the public,
and in particular those people who have
been heavily disadvantaged, lost their
jobs and so on, as a result of this, want
the most rapid possible conclusion to this
investigation and, if it points that way, any
prosecution thereafter. I think it would be
wrong of me to set a firm timetable on
this because, first, the scope of the
20
MPs grill FRC
what Stephe
investigation is very wide, going back a
number of years, and secondly, it is
absolutely vital that we do this
thoroughly. We have the resources we
need. We have expanded the resources
of our enforcement team considerably
over the last few years and I have made
it clear to the executive counsel that if
she needs any further resources we will
provide them…
Chair: I ask because it is 19 months
since the FRC announced that it will
investigate PwC’s audit of BHS and we
have still had nothing from the FRC. The
FRC investigation of audit failures at MG
Rover, audited by Deliotte Touche, was
announced in August 2005 and the
outcome was not finalised until April
2015. Might we have to wait 10 years to
get the outcome of this inquiry?
SH: No certainly not. The Rover one was
deferred while other inquiries we going
on. We are starting this one absolutely
now and, as I said, we will do it much
faster than those timescales.
Chair: When might you expect the work
on the audit of BHS to be completed?
SH: It is close to completion.
Chair: It might report within two years,
might it? that the report that you announced
SH: I think we will see a report faster yesterday, ahead of coming to our
than that. Committees to give evidence, might be
Frank Field (FF): One year? published in a timescale that allows
Chair: No, it has already been 19 learnings to be made and also to have
months. some resolution for people who worked
SH: I really must not be drawn on things. there and received pensions from
Chair: No, Stephen Haddrill, the point of Carillion.
a Committee hearing is for us to try to There was then some discussion on the
draw out evidence from you and there is expansion of the FRC’s enforcement
a public interest here. BHS was a huge team and Haddrill explained he now has
collapse that cost jobs, people’s pensions 32 lawyers and forensic accountants at
and livelihoods. It has been 19 months his disposal. Two years ago that number
and there is still no report. We are trying was 24.
to find out whether there is any chance Peter Kyle (PK): Mr Haddrill, to what
PQ Magazine March 2018

C chief:
en said
extent did poor corporate governance
lead to the collapse of Carillion?
SH: It is something that I hope will
emerge through the investigation.
PK: You have been watching them for a
while now. Did they break the code of
conduct of corporate governance at all?
SH: I think I would draw a distinction
between what we have been doing in
looking at the auditing and the
financial statements. We set
the corporate governance code Stephen
but we do not enforce the Haddrill
corporate governance code.
That is enforced by the
shareholders. What we will want
to understand is how the
directors reached the decisions
that they took, particularly
towards the end of the last
financial year, how they took the
decision in relation to going
concern and whether that was
soundly based. That is the sort of
thing that would underpin any
investigation that we conduct into
the directors.
PK: In your opinion, at these early stages,
PQ Magazine March 2018
do you feel that there is cause for
concern about the way the company was
governed?
SH: I think there must be enormous
cause for concern about how the
company was governed. That is not a
conclusive point of view because we
need to look into these matters.
PK: What action have you taken that
could have in any way altered the
direction of Carillion in the last two years?
SH: What we do not have the ability to
do is to see into the way the company is
running, is developing its business model
and so on.
Antoinette Sandbach (AS): Your
chairman made an announcement that
the FRC had been actively monitoring the
situation at Carilliion for some time.
When did that monitoring start?
SH: The monitoring of the audit I think is
what was being referred to there. That
started after the profit warning in July.
AS: 10 July 2017?
SH: Yes.
AS: But as you have referred to, you
have already gone in and raised
concerns with KPMG about the audit in
2015-16.
SH: I was talking about concerns we had
with the company about their report and
accounts rather than with the audit. I
think the last time we reviewed the audit
was 2012 with KPMG.
FF: Two of the last three finance directors
of Carillion came from KPMG. KPMG has
conducted the audit for the last 19 years.
Did that not sound a warning to you?
Given the oligarchy that now exits among
the accountancy firms, shouldn’t we be
considering a recommendation to the
government to break them up?
SH: We feel there should be more
competition in the major accounting and
audit area. We asked the Competition
Commission in 2012 to do a review and
they did. They made a number of
recommendations that have been
implemented. To some degree, there is
more competition among the big four
themselves but there has been no entry
to the market by
other firms at
that top end of
the corporate
sector.
FF: There
would be if you
broke the
companies up.
SH: I think the
Competition
Commission –
the CMA now
– at some
point will
need to
review the
effectiveness of what they
recommended and look at it again. There
are rules about the extent to which
auditors can join companies. I think
Carrilion collapse PQ
there is a two-year cooling off period. I
would have to check what the situation
is.
FF: But they are all mates, aren’t they?
There are four companies dominating the
scene. They appear in all papers in one
guise or another. You are going to
recommend that the relevant body looks
at breaking up these companies?
SH: We are going to propose to the CMA
that they look again at whether there can
be more competition in the sector. What
the remedy is I think is for them. We
have strengthened what we call the
independence rules in relation to the
extent to which an audit firm can be
engaged with a client to provide non-
audit services and the extent to which
auditors and company directors can
move between those institutions. They
were changed in 2016 and they are
certainly much stronger than they were.
Chair: KPMG has been the auditor of
Carillion since its inception, for 19 years,
and had earned £30m worth of fees
during that period. Is it FRC’s view that it
is appropriate or good practice to have
the same auditor for almost 20 years?
SH: The law requires the audit to be re-
tendered after 10 years. The incumbent
can keep that role for 20 years. That is
what the law says.
Chair: Do you think perhaps that law
needs revisiting with fresh eyes?
SH: Those regulations came in only less
than two years ago. I think we need to
review them to see how they are working.
One of the things that is happening is the
combination of rotation and the
independence rules means that in some
sectors we may well end up with even
fewer than four people competing for the
job. There are things that we need to
review.
Chair: Do you know what the biggest
asset was on Carillion’s balance sheet?
SH: Goodwill, I think.
Chair: Goodwill was worth £1.57bn. That
seems quite surprising. Is it good
practice to have goodwill as the biggest
asset on your balance sheet? Without
goodwill the liabilities would have been
greater than the assets. It was only the
goodwill that kept the assets higher.
SH: It is not untypical. What is
happening is that increasingly
companies’ balance sheets are made up
of goodwill. They are made up of
intangible assets rather than bricks and
mortar and all the rest of it.
FF: Can you tell us what goodwill is,
Stephen?
SH: I can’t give you the strict accounting
definition, but it is…
FF: It is an item that disappears once the
company is in trouble, isn’t it?
SH: Absolutely. I think this whole issue
about how to account for intangible
assets and whether too much of the
proportion of the balance sheet is in that
sort of asset is something that, frankly,
we are all struggling with. PQ
21
PQ ACCA exam tips

ACCA EXAM
The March exams will soon be
here. So what advice do top tutors
at BPP and LSBF give to sitters?
BPP
F5
• For section A and B learning the whole
syllabus appears to be the only tip in town!
• Sitters are ‘strongly advised’ to plan answers to
section C before starting to write. And when
writing make sure you make reference to the
scenario in your answer. Section C expected
areas are budgetary systems, planning and
operational variances, mix and yield variances
and evaluation of the company performance
(either as a whole or on a division basis).
• Expect the unexpected – since the
introduction of MCQs this advice is even more
critical because more topics are tested.
• Expect the exam to be 40% calculation and
60% discussion. That means its not sufficient to
just be able to perform all of the calculations.
• Interpretation and application are crucial,
especially in section C.
F6
• Section A: expect a couple of the OTs to be
devoted to the administration of income tax and
corporation tax.
• You also have to be comfortable with quite a
lot of other stuff too, including:
– Due dates for payment of income tax
(including payment 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.
• Also 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 – Property income. statement of changes in equity, statement of
to cash accounting, annual accounting and flat- – Relief for pension contributions. cash flows extract, earnings per share
rate schemes. – Adjustments to profit to arrive at trading calculation or linked written topics.
– IHT due to lifetime transfers both in the income for both companies and sole traders; in • A consolidation question would include one
donor’s life and on death. past questions you had to correct errors in subsidiary and often an associate with
– Statutory residence tests for individuals. computations. adjustments, eg fair values, deferred/contingent
– Identification of groups of companies for – Capital allowance computations. consideration, PUP on inventories/PPE,
corporation tax loss reliefs and gains. F7 intragroup trading and balances, goods/cash in
– Trading loss reliefs for both companies and Section A transit.
sole traders, • Expect questions to include several on • A single entity question could be preparation
• At least 50% of your revision time has to be consolidation and interpretation of financial from a trial balance or restatement of given
spent answering section C questions. statements. financial statements with the usual adjustments
• Remember to learn your income tax and • When it comes to non-core areas think for depreciation, revaluation and current/
corporation tax pro formas. inflation and specialised entities. deferred tax (including deferred tax on
• Calculations which require no more than two • Long form questions – one will cover revelations), plus a mixture of adjustments on
or three entries into your calculator can be interpretations and the other preparation of other syllabus areas, eg leases, substance over
included on the face of your proformas (eg time financial statements. form issues, financial instruments (change in fair
apportioning a salary). Calculations that are • One question is likely to be in the context of a value or amortised cost), share issues
more complicated (eg company car benefits) single company and one in the context of a government grants, inventory valuation, revenue
need separate workings that are properly group, so you could have a single company recognition or construction contracts.
referenced (W1, W2, etc) and have a heading. interpretation and a groups preparation, or vice F8
• Aim for as many sentences as there are marks versa. • In Q16 and 18 expect:
with each sentence containing something • An accounts preparation questions may – Audit planning.
technical. include extracts or standalone calculations or full – Audit risk (identification and explanation of
• Keep your paragraphs to no more than three statements of profit or loss and other audit risks from a scenario and explanation of
sentences long. comprehensive income and/or statement of the auditor’s response to each risk.
• The two longest questions will focus on financial position. – Internal audit.
income tax and corporation tax. They are likely • Both questions will cover items from other – Internal controls (identification and
to include the following: areas of the syllabus. explanation of deficiencies in internal control
– Employment benefits. • There may be a short separate part, eg with a and the recommendation of suitable internal

22 PQ Magazine March 2018

 ACCA exam tips PQ

M TIPS
evaluation of financial options (interest coverage • Incorporation of a business and relief for
and gearing ratios), or a cost of capital and trading losses made by a sole trader/partnership
analysis. at the end of the trading cycle.
• Investment in a VCT/SEIS the theory versus
LSBF investing in a registered pension scheme.
P4 • EMI and CSOP share option
• International investment
appraisal.
HEALTH schemes.
• Property business profits,
controls or description of test of control).
– Audit procedures (both substantive
• Financial reconstruction.
• Mergers and acquisitions
WARNING including rent a room relief
and the advantages of
procedures and tests of control). (including corporate furnished holiday letting
• Try to use a tabular format in your solutions valuations). properties.
where relevant as the examing team have stated • Hedging foreign exchange • Ethics.
that candidates who do this score better. risk. P7
• Understand your verbs: ‘explain’ requires a P5 • Risk of material
sentence and will score one mark; ‘list’ simply • Evaluation of KPIs. misstatement, including ratio
requires you to list out information with no • Breakeven/financial impact calcs.
further explanation and this will score 0.5 marks of strategic decisions. • Business risks.
These tips should
per point. • Improving business • Assurance on forecasts.
only be used in conjunction
F9 processes. • Forensic investigations.
with proper study. We cannot
• Section A questions will often be knowledge- • Types of information • Audit report scenarios,
guarantee that these topics
based and will balance out questions in section required. including MURGC, KAM, other
will appear in the actual
B and C. That means you should expect to see P6 information.
questions on ratio analysis, the concept of • IHT with the death estate,
exam as we have not seen • Quality control.
shareholder wealth, as well as the economic including BPR and APR and the exam papers. Examiners • Advertising.
environment and financial institutions topics lifetime gifts. Gifts with are not predictable so it is • Tendering.
(financial intermediation, fiscal and monetary reservation and relief for a fall vital that all core syllabus • Money laundering.
policies). The efficient market hypothesis is likely in value. Domicile including areas are revised fully. • Laws and Regulations/
to be tested here, too. deemed domicile and election NOCLAR.
• For section B, the commonly tested areas are to be treated as UK domiciled and deed of • Big data and data analytics.
working capital management (eg the operating variation. • Subsequent events.
cycle, the impact of a change in credit period or • Lifetime gifts into a trust. • Audit evidence. PQ
accepting a factor’s offer), business or security • Takeovers and mergers.
valuations (eg methods of valuation), and • Group question, sale of shares versus sale of For all the tips go to
www.pqmagazine.com. There’s lots
financial risk management (currency risk, the trade and assets, including SSE and the
more advice in our ACCA study zone.
interest rate risk). degrouping charge.
• Section C will focus mainly on syllabus • Overseas aspects of corporation tax including Help from PQ magazine is never more
sections C, D and E. So think either an branch versus subsidiary. than a click away

THE TROUBLESHOOTER IS GUNNING FOR...

Calculation of goodwill
PQ magazine’s troubleshooter Equity comprised Share Capital £10m and
Retained Earnings £5m.
Philip Dunn explains a troublesome The calculation of Goodwill at the point of
issue for F3 studiers, which may acquisition using the proportion of net assets
method we find:
also cause problems for AAT and £m
ICB Level 4 students Fair Value of consideration 22
Fair Value of non-controlling interest 3*
------
Problem: I am an ACCA student currently 25
studying F3 and do not fully understand the Less Fair value of net assets at acquisition 15
calculation of Goodwill in a business ------
combination in relation to consolidated financial Goodwill at the date of acquisition £10m
statements. *the non-controlling Interest (NCI) is 20% of
£15m.
Solution: Goodwill is measured according to A further way of calculating the Goodwill is:
IFRS 3 Business Combinations as the difference £m
between the consideration transferred in the Consideration 22
transaction and the fair value of the acquiree’s Less: 80% of the Share Capital 8
identifiable assets and liabilities. 80% of the Retained Earnings 4
A non-controlling interest often referred to as -------
minority interest is equity in a subsidiary that is 12
not attributable directly or indirectly to the -------
acquirer. In the case below this will be the 20%. Goodwill £10m
Example: Dunn plc acquired 80% of Artist Ltd • Dr Philip E Dunn is a freelance author and
for £22m when the fair value of Artist Ltd’s technical editor for Kaplan and Osborne Books

PQ Magazine March 2018 23

PQ ICAEW spotlight

ACA exams are changing

A Make sure you are ready to tackle
ll six Professional Level and two of the
Advanced Level exams – Corporate
Reporting and Strategic Business
Management – are now computer-based. This
means it is essential that you familiarise yourself
with the new exam format in advance of your
next exam.
To help you prepare for this, ICAEW has
created a five-step checklist that will ensure you
walk into the exam feeling confident and
prepared.
1. Read the exam guidance: The exam guide
will prepare you for what to expect on the day of
your exam, an explanation of the key
functionality within the exam software, FAQs and
exam top tips.
2. Watch the exam webinars: Short webinars
have been created for you to watch on-demand.
A selection of eight webinars will prepare you for
the new exam format. This includes: an
introduction to computer-based exams, an
overview of the software, the exam experience
from start to finish, the guidance and support
available, and top tips.
3. Use the practice exam software: It is crucial
that you practise with the exam software in
advance of your exam. Being unfamiliar with the
functionality and formatting may impact you in
the live exam. Questions from the ICAEW
question banks are available within the practice
the new computer-based exams
exam software two months before the first exam
sitting. You can download these so you can
revise on the go.
4. Review the sample exams: Sample exams
are available with a blank version of the software
so you can practise answering questions as you
would during an exam. Sample answers are also
available from our examiners to offer guidance
and support on exam technique.
5. Read the ‘Instructions to Candidates’: The
Instructions to Candidates contain important
information regarding the administration of your
exams and they have been created specifically
for computer-based exams. Read them carefully
and familiarise yourself with all the processes
and procedures before the day of your exam.
Exam top tips
Here are some more top tips to help you with
your exam preparation.
• If you insert a row or column, interrupting a
formula, you will need to reset your formula to
include the new cells.
• The examiner can only see what you have
written on screen, and not any formulae that are
used to arrive at totals. Therefore, ensure there
is an audit trail for numerate answers.
• All exams will follow standard rounding rules to
the nearest whole number by default, with the
exception of Financial Management which will
round to two decimal places.
• Standard keyboard shortcuts are not
supported within the software – make sure you
discover the key functionality within the practice
software.
Share your exam top tips with ACA students at
icaew.com/studentcommunity.
Find more guidance, support and information
at icaew.com/cbe. PQ
• Thanks to the ICAEW for this article

ACCA revision sessions led by

PQ Magazine’s Public Sector
Lecturer of the Year
• Courses in April and May for June 2018 exams
• All ACCA modules
• F4-F9 & P1-P7
• Learn on-campus from experienced professionals

Find more information online or speak to programme

leader Nagin Lad directly: n.lad@derby.ac.uk

derby.ac.uk/ACCA

24 PQ Magazine March 2018

 PQ Awards PQ

Who made the 2018 short list?

Thanks to all you lovely readers • Paul Robbins, PACA Adult Learning ACCOUNTANCY PERSONALITY
• Lisa Wakefield, DMU To be announced on the night
who entered our awards –
• Fiona Williams, Sutton Coldfield College
unfortunately not everyone can Private Sector EDITOR’S SPECIAL AWARD
make the short list. See next • Carly Barnes, 3aaa Apprenticeships, Norwich To be announced on the night
• Donna Curling, CBK
month’s PQ magazine for all the • Andrew Mower, Kaplan APPRENTICE OF THE YEAR
winners and the action pix! • Mary Ofili, The Training Place of Excellence • Raisa Ahmed
• Sue Thistlethwaite, Kaplan • Charlie Atkins
STUDENT BODY OF THE YEAR • Amber Gibbs
• Accountancy Student Network Facebook STUDY RESOURCE OF THE YEAR • Rahil Mahmood
Group • Becker Study School by Becker Professional • Preena Raja
• Birmingham Chartered Accountant’s Student Education
Society (BCASS) • CIMA Study Planner NQ OF THE YEAR
• Northern Chartered Accountant Students’ • LSBF ACCA Live Online • Kelly-Marie Besley
Society (NCASS) • Mindful Education • Christina Christoforou
• North West CIPFA Student Network (NW: • Premier Training (Premflix) • Craig Coda
CSN) • Naomi Jackson
INNOVATION IN ACCOUNTANCY • Michael Scott
ACCOUNTANCY BODY OF THE YEAR • ACCA’s Ethics & Professional Skills module
The usual suspects! • CIPFA Learning DISTANCE LEARNING STUDENT
• Joanne Holt – Manchester Metropolitan • Toby Austin
ACCOUNTANCY COLLEGE OF THE YEAR University • Elena Brown
Public Sector • University of Derby • Kelly Crawford
• Belfast • West Yorkshire Community • Kerry Parkinson
Metropolitan College Accounting Service (WYCAS) • Tamara Salter
• CIPFA E&T Centre
• University of BEST USE OF SOCIAL MEDIA PQ OF THE YEAR
Derby • Accounting Student Network • Jeanette Barlow
• Gower College Facebook Group • Eliott James
Swansea • Avado’s Caron Betts – ACCA exam • Gemma Lowe
• London South countdown • Syahira Md Nor
Bank University • CIMA – Five steps to case study • Tyson Nsimbe PQ
Private Sector success
• First Intuition, • Kashmob – Kaplan
Leeds • North West CIPFA Student Network
• HTFT Partnership
• Kaplan, Leeds TRAINING MANAGER OF THE YEAR
• Kaplan, Norwich • Brunilda Aliaj, The Training Place
• The Training Place of Excellence • Samantha Hannigan, Premier Training
• Vale Financial Training • Priya Kourtis, LSBU
• Melanie Wright, training manager, Lovewell
ONLINE COLLEGE OF THE YEAR Blake
• Avado
• BPP Online Classroom ACCOUNTANCY TEAM OF THE YEAR
• Kaplan OnDemand • Concession Finance at Balfour Beatty
• LSBF Online Investments
• Premier Training • Finance Team at Robert Woodhead Limited
• Greater Manchester Mental Health NHS
LECTURER OF THE YEAR Foundation Trust Finance Team
Public Sector • St Mary’s Accountancy Services
• David Oakes, LSBU • Student Experience Tutors, Manchester
• Alan Parkinson, UCL Metropolitan University

PQ Magazine March 2018 25

PQ ACCA examiners’ reports
Straight from the
horse’s mouth
Do you measure up to examiners’
expectations? We look at the
December skills and option level
papers with the worst pass rates
P5 Advance Performance Management
December 2017 pass rate – 29%
The examiner says you need the ‘right attitude’
to pass P5, and to remember that the exam
standard is intended to be at a post-graduate
level. In the December report the examiner
voices concern that candidates have been
taught that they should define in their answer
any jargon in the question requirement. But they
are wrong to assume (usually) that this alone will
provide them with a passing answer at P5. This
paper is all about application and evaluation in a
business scenario.
To pass P5 candidates need to be capable of
analysing and evaluating the situation in the
scenario, using their technical knowledge. The
marker needs to see a competent accountant on
the paper. That means justifying your opinions
and going beyond mere calculations by
explaining the implications of the results.
In December, candidates were particularly
weak when it came to the questions on the
introduction of the balanced scorecard at a
manufacturing business, the threat of new
entrants and the value for money framework.
So what was in the December exam? Well, Q1
required candidates to consider issues around
the introduction of the balanced scorecard at a
manufacturing business. Q2 dealt with issues of
performance measurement and management at
a retailer. Q3 examined performance
measurement and management at a not-for-
profit hospital. This was the most popular
question in section B. Q4 considered the issues
around risk and uncertainty at a manufacturer
on the size of a new factory.
P4 Advanced Financial Management
December pass rate – 33%
So why did candidates perform less well in
December? The examiner says it doesn’t help
when they leave whole or parts of questions
unanswered because of their lack of detailed
knowledge. And too much time in the exam
room is spent carrying out relatively simple
calculations.
The examiner said Q1 in section A tested a
candidate’s ability to provide sound advice,
supported by relevant computations, in a
coherent report on the impact of a change in the
company’s capital structure by increasing the
proportion of debt. It asked candidates to
perform calculations of the debt instruments,
estimate the impact on earnings and financial
position of the company, and discuss the impact
26
on the company and the key stakeholders. This
shows the level that candidates are expected to
be at by P4.
For Q2, candidates were asked to use net
present value, internal rate of return, modified
internal rate of return and value of risk. There
was also some Monte Carlo simulation method
and assumptions involved.
The length of December’s Q3, on financial
performance evaluation using ratios and trends,
meant this was the least popular question.
However, the performance of candidates who
attempted this question was good.
By contrast, Q4’s currency hedge using future
contracts and looking at option contracts was a
popular choice. That didn’t mean students didn’t
have difficulty calculating the profit/loss on the
futures market.
F8 Audit & Assurance
December 2017 pass rate – 40%
F8 students sitting the CBE exam have been told
by the examiner they need to write longer
answers, especially in the provided pre-
formatted tables. For December 2017 we are
told candidates tended to submit answers that
were often ‘quite brief, almost note like’.
The examiner said that while bullet points are
acceptable answers must be sufficiently detailed
to maximise marks.
Sitters were reminded that 70% of the
F8 exam marks will be for written
answers. So lots of exam practice is a key
to success here.
The examiner was pleased to see many
students structure their answer in
columns, especially for audit risk and
internal control questions. This makes
papers easier to mark and easier for
students to review their answer, it was
suggested.
However, as in September, many
December 2017 sitters did not attempt all
the question requirements. This tended to
be in knowledge areas, substantive
testing questions and some auditor’s
report questions.
Some exam answers were also too
generic, particularly those requiring a
description of substantive procedures.
The examiner wants to see exactly ‘how’
the procedure should be performed. And
there must be an appropriate number of
procedures. A four-mark question should
have at least four well-described procedures to
maximise candidates’ marks.
For section A, it is imperative you enter the
exam with knowledge of all the International
Standards on Auditing (ISAs) and important
areas of the syllabus such as audit procedures.
The Examiner’s Report explains that section A
in December 2017 included questions on the
following areas:
• Professional ethics and application of ACCA’s
code of ethics and conduct.
• Substantive testing, including testing on wages
and salaries, revenue and tangible assets.
• Subsequent events.
• Audit finalisation and the final review.
• Auditors’ reports.
The constructive response questions in
section B tested candidates’ understanding of:
• Audit framework and regulation.
• Planning and risk assessment.
• Internal control.
• Audit evidence.
• Review and reporting.
F5 Performance Management
December 2017 pass rate – 42%
The examiner picked out two areas that students
seemed to have difficulty with in section A –
calculating the margin of safety and a target cost
and cost gap.
The range of topics covered in section B in
December were: costing; pricing; learning curve;
short-term decisions; and budgeting.
The examiner stressed that the list above
shows just how large the F5 syllabus is. For
section B, it is also vital that you can apply the
logic of the concept or theory to the problem you
are presented with.
In section C, candidates were presented with
questions drawn from the following areas of the
syllabus:
• Performance management and measurement
(in two questions in December).
• Divisional performance measurement and
transfer pricing (two questions on this area).
• Budget and control (again, two questions
covering this area).
• Risk and uncertainty.
The F5 examiner is worried
about the number of
candidates who couldn’t
calculate a percentage
accurately. The report says
students often provide too
many calculations for the
marks available and have a
pre-determined list of ratios
they try to trot out on every
occasion.
There also appears to be a
lack of knowledge of the
requested variances –
candidates often prove price
and volume variance instead of
mix and quantity. They also
use selling prices when asked
for profit variances.
The examiner told CBE
sitters that it takes a little more
effort to make sure that
requirements are properly
broken down when reading
them as they can be split over several screens.
The advice is to do a small plan and ask yourself
how many things you are being asked to do.
However, it was felt that it is easier to be more
focused when answering questions using word
processing skills and spreadsheets. It is also
easier to go back and insert missed points in the
correct place, too! PQ
PQ Magazine March 2018

Why the ‘why’ is the
key to passing P3
Paul Anderson explains what
you need to do to get
through this tough paper
T
he ACCA P3 exam requires key
skills and techniques that you
will need to develop to be
successful. Here I’ll explain my five most
important techniques.
1.Use models to provide answer
structure
The P3 syllabus includes over 40 models
and you need to be familiar with all of
them. The examiner does not always ask
for them by name so you need to know
which model fits with each part of the
syllabus and when to use them. For
example, the examiner may ask for you
to ‘assess the macro environment’.
Even though it is not explicitly asked
for, there is an expectation you will use
the PESTLE framework. Using the
syllabus guide and an official text can
help you understand where each model
may be relevant.
There are no marks for academic
answers that explain a particular model.
At this level you are expected to use the
models as a framework for your answer;
to create the structure. An easy way to
think about it is to use the model to
provide the subheadings in your answer.
If you avoid using models you will
struggle to cover the depth and breadth
required to score sufficient marks to
pass.
2. Make your answers relevant and
specific
Regurgitation of the scenario or your
study notes will not score well in P3.
Instead, to score the necessary marks for
analysis your answer needs more
relevance and specifics.
A key to making answers relevant is to
use the scenario and match your
knowledge to it. For example, let's say we
have an owner managed business where
the owner is risk averse and wants to
grow slowly and we are asked if the
business should grow via an acquisition.
When studying acquisitions, one of the
first things you will have learned is that
they are a quick way to grow, which is
normally seen as an advantage. But we
must match our knowledge to the
PQ Magazine March 2018
scenario. In this scenario, acquisition is
not appropriate as our owner manager is
risk averse and wants to grow slowly.
Answers must also be specific. In
question 1a of the December 2017 paper
the examiner commented: “Some
candidates… reproduced a fact from the
scenario without analysis. For example,
‘the production process is patented’.”
These candidates have identified
something important but it won’t score
marks as there is no analysis. We are not
told whether the patent is a strength or a
weakness or why it has been categorised
as such. The candidate could have
added some specifics, such as stating
that the production process can’t be
copied and therefore it makes the
business stand out from the competition.
This analysis, the why, is essential for
scoring marks.
3. Include quantitative data when
relevant
Questions will often include some
numbers, perhaps extracts of financial
statements or a table of data. You are
expected to use these numbers to
complement the qualitative analysis, to
help explain the point you’re trying to
make. Not using data will result in you
losing a considerable number of marks.
For example, if in a question asking you
ACCA exams PQ
to analyse an organisation’s strengths and
weakness you are given a set of financial
statements you might be able to see that
debt is falling, or revenue is growing.
These are both strengths that can be
used to form good points in your
answers.
You may have to create some of the
numbers for yourself through
calculations. But these shouldn’t be
technically difficult and will have been
studied in earlier papers. The test is
whether you can calculate them quickly
and use them to give advice or analyse
an organisation.
4. Ensure broad syllabus coverage
In this paper question spotting doesn’t
work. Relying on tips is very dangerous.
Anything can be examined. In December,
the examiner stated that many students
failed the paper because, despite having
a strong attempt at part a of a question,
they lacked the requisite knowledge to
attempt part b, which came from a
different syllabus area. Before starting to
write an answer to an optional question
you must have read all parts of the
requirement to ensure you can have a
good go at all parts of the question.
5. Manage your time well
There are a few key rules when it comes
to managing your time.
● Only answer the question that has been
set. For example, in December 2017 Q3b
the examiner set a question on the
disadvantages of outsourcing. However,
some candidates gave the advantages of
outsourcing. This was not asked for,
would not have scored any marks and
therefore wasted the candidate’s time.
● Set a deadline for each question – 50
minutes for a Section B question, 100
minutes for section A. Stick to it. When
your time is up move on to the next
question.
● Use the number of marks to help you
understand how much you need to write.
For example, if you were given a Five
Forces question for 15 marks you are
looking at around three marks per force,
so you need to write perhaps three to five
sentences. Don’t write two-and-a-half
• Paul Anderson, pages about each element just because
P3 content you know lots about Five Forces; you are
specialist and wasting your time. You can only score 15
tutor at Kaplan marks no matter how brilliant your
Financial answer is. PQ
27
 Theeasiest
The easiestway
waytotoget
get your
your free monthly copy copy isis to
togo
goonline
onlineatat
PQ magazine www.pqmagazine.co.uk,ororyou
www.pqmagazine.com, youcan
canfill
fillinin the
the form
form below and send send itit to:
to:
PQ,PQUnit
Magazine, 4th Floor,
3a, Kingfisher Central2 House,
Heights, 142Way,
Bramwell Central Street,
Royal Docks,London, EC1V
London E168AR 2GQ

About you Study please tick a box in 1A or 1B

1A Please indicate accountancy body you belong to and tick the box of the next set of exams
Title...................................................... you are hoping to sit
ACCA ▫ CAT ▫ F1-3 ▫ F4-F9 ▫ P Papers
First name............................................ CIMA ▫ Certificate ▫ Operations ▫ Management ▫ Strategic ▫ T4
CIPFA ▫ Certificate ▫ Diploma ▫ Strategic
Surname ..............................................
ICAEW ▫ CFAB ▫ Professional ▫ Advanced
Company name .................................. ICAS ▫ TC ▫ TPS ▫ TPE
Tax ▫ ATT ▫ CTA
............................................................
AAT ▫ Level 2 ▫ Level 3 ▫ Level 4 ▫ Member
Department.......................................... 1B Studying for an accountancy degree/MBA/MSc ▫ Year 1 ▫ Year 2 ▫ Year 3

Full postal address Home ▫ Work ▫

............................................................
............................................................
............................................................
Postcode ............................................
Phone ..................................................
* Email ................................................
............................................................
Do you work in accountancy and finance ▫ Yes ▫ No
If yes, what is your job title? ..........................................................................................................
* How do you want to receive your PQ magazine?
Please tick your preferred mode of delivery for your free monthly magazine.
▫ Online (please supply email address) ▫ By post (UK only)
Sign below to receive your monthly PQ magazine totally free
Sign here ............................................................................Date...........................................................
▫ Please tick here if you do not wish to receive direct marketing promotions from other companies.
PQ magazine reserves the right to refuse a free copy of the magazine if the applicant does not comply with the terms and
conditions of circulation.We will use your details to send you a copy of the magazine and any further information we feel
would be of use.

social media
ROUND-UP
We love a pass rate at PQ magazine.
Just check out our news pages – we
have them for ACCA, CIMA, CIPFA
and ICAEW in this issue. The AAT
ones are coming soon, too. We think it
is important that PQ regularly
publishes these rates, as it’s a way of
bringing more transparency to the
process. But the magazine isn’t the
first place you will find them!
Immediately we get them we tweet
them straight out @pqmagazine, and
put them on Facebook and our
website.
The December ACCA results got
lots of retweets. Rebecca Pope said:
“These pass rates highlight just how
difficult it really is to qualify as an
ACCA.” Sam Vater was a happy lad:
“Woohoo one of the lucky 29% for P5.
Passed first-time and blown away as
completely unexpected. Only
completed 80% of the paper as well.”
Fakhrullah Mohamed saw the pass
rates and said: “Pass rates for P6 and
P7, so scary.” Afifi Hasan tweeted:
“Feel so lucky I passed my P4.” And
Claire Braddick summed up many
people’s thoughts: “I do find it
shocking how low the pass rates are
even with a 50% pass mark. Is there a
reason for such low marks or is it just
they are hard exams?” Bloody hard is
what they are!
The PQ Awards, our 15th, loom
large, and we hope you will all be
checking out
the winners
on the night.
We will be
using
#PQawards
and have
our fingers
crossed
there
aren’t too
many
‘PwC
Oscars’
moments! We should have cameras
there too so we will be posting up the
‘highlights’ – watch out for them.
We also helped to spread the good
news that radiation from your phone
should not cause tumours. We
explained: “The rats and mice
exposed to radiation at the frequency
emitted by your phone for 9 hours a
day for two years are mostly fine!”
Although Keith Breckenridge wasn’t
totally happy: “Mostly fine. Is that –
they’ve grown an extra ear, but apart
from that all is well?”
PQ Magazine March 2018
Life at the University of Derby
Nagin Lad is the university’s Professional Programmes Lead. He has a BA in Accounting
(UKC) and an MSc Accounting and Finance (DMU), as well as being AAT and ACCA
quualified.He was PQ magazine’s Public Sector Lecturer of the year in 2017
What time does your alarm
clock go off on a working
day? It never goes off – I always
wake up before it goes off and
switch it off.
What’s the first thing you do
when you get to your desk?
Water the plants and put the
coffee on.
What’s on your desk? Phone,
desktop pc, keyboard and
Cartman “I’m not fat just big
boned” mouse mat.
What’s the best thing about
where you work? The people in
our team.
Where’s your favourite place
to go for lunch? Papa John’s on
campus.
What (or who) can you see
when you sit at your desk? My
flags from places I have taught at
around the world and a Bob
Marley poster which reads ‘Don’t
worry, be happy’.
What are your favourite
In brief
Bad bosses, bad employees
Scientist say they have
worked out that it is possible to
work for a psychopathic boss, but
only if you too are a psychopath!
This is primarily because they are
not easily upset by being treated
badly. The University of Notre
Dame’s Charlice Hurst said:
“People who score high in
primary psychopathy lack
empathy and are cool-headed
and fearless. They don’t react to
things that cause other people to
feel stressed, fearful or angry.”
The PQ Book Club: books you should read
The Science of Intelligent
Achievement by Isaiah Hankel
(Capstone, £14.99)
For those wanting to take
ownership of their life and learn
the art (and science) of positive
change, this book explores how
to overcome distractions,
misinformation and over-
commitment, and become
selective in order to achieve
goals. Author Isaiah Hankel
explains how unlike ‘fake
success’, in which realism and
personal responsibility are
sacrificed, intelligent
achievement is “a collection of
values that are aligned with who
websites and why? Leicester
Tigers.com. I am a mad Leicester
Tigers fan.
Which websites do you use
for work? ACCAglobal.com and
FT.com.
How many
hours a week
do you spend
in meetings?
A couple too
many. I prefer
to spend time
with my ACCA students
What time do you leave the
office? Some people think I have
a sleeping bag under my desk.
Usually 8.30–9pm.
How do you relax? Watching
Leicester Tigers.
What’s your favourite tipple?
JD and Coke.
How often do you take work
home with you? Apart from
when I am sleeping I am on my
emails and social media,
Face blindness
Have you ever struggled to
identify a work colleague without
their suit on, or when you meet
them outside work? If so, then
you may have face blindness.
People suffering with
prosopagnosia (face blindness)
are unable to recognise people by
their facial features alone, and
there are more of them around
than you think – it could be as
high as one in 50 people. Among
known sufferers are Brad Pitt and
Duncan Bannatyne.
you are” – and this comes from
within.
Divided into three parts, the
book begins by discussing
‘Selective Focus’, including
chapters on why mental energy
is your most valuable asset and
how to deal with negative
people without becoming
negative.
It then goes on to look at
‘Creative Ownership’, where
millennials and baby boomers
meet; finding your voice and
letting the right audience pick
you; and why a good story will
make you more money than a
great product.
careers PQ
responding to students from all
over the world – so all the time.
My wife even caught me
answering emails on holiday – I
thought she was asleep!
What is your favourite
TV programme? Suits.
Summer or winter?
Summer.
Pub or club? Pub.
Who is your hero? Has
to be my mum – she has
been gone more than 45
years but she is a lasting
influence.
If you had a time machine,
where would you go?
To the future so I can see my
grandchildren. Hint to my son: I
would like to see them without the
need for a time machine, so get a
move on!
If you hadn’t chosen
accountancy, where might
you be right now? Probably
working in a factory or redundant!
Deloitte misses top 100
Deloitte
was again
conspicuous
by its absence
from the
Stonewall Index of top employers
for 2018. The definitive list of the
most LGBT-inclusive employers in
Britain found PwC at equal 33rd,
KPMG at 35th and EY down at
79th (equal). The National
Assembly for Wales and law firm
Pinsent Masons took first and
second place in this year’s list.
The final part looks
at ‘Pragmatic Growth’
– avoiding drama,
‘FOMO’ and blind spot
ignorance; and how
‘decision fatigue’
reduces willpower are among
the topics here.
Containing smart strategies
for pragmatic, science-based
growth and sustainable
achievement, The Science of
Intelligent Achievement teaches
readers the process of finding
success.
PQ rating 3/5 This book will
help you focus, create and
grow – every day.
29
PQ got a story, funny or serious, you want to share? Email graham@pqaccountant.com

I WRITE THE SONGS TAX SLIPS

colleagues weren’t totally enamoured with the song. One wrote: “Made it to Dublin office today,
we were all embarrassed for him.” Another said: “As far as songs go made by an accountant it’s
not terrible”. Go to YouTube to hear Hansen’s tune. We thought Eurovision straight away.
WHAT’S YOUR EXCUSE?
Every year around self-assessment time
HMRC releases a ‘fun’ press release
about people’s excuses for not
completing tax returns and some of the
wildly optimistic expenses claims it
receives. We are told one taxpayer told
Deloitte’s Stefan Hansen became an internet
sensation after he recorded a song about the firm as
a thank you for giving him a job. He sent it to his
superiors and it is now being ‘shared’ by a much
wider community. The song, ‘Making an impact that
matters’, includes the chorus: “Deloitte is calling, is
calling, Is calling out your name”. Hansen had
obviously seen the Deloitte video ‘Make an Impact
that Matters’ and was inspired. Some of his
HMRC STRIKES STRIKER
Brighton footballer Glenn
Murray and his wife
Stacey were recently
arrested as part of an
HMRC investigation into
a suspected £1.1m tax
fraud. The Seagulls
striker’s home was
searched and
computers, business and personal records all seized.
The arrested pair were quickly released under
investigation. HMRC would only confirm it was
investigating two people for income tax and VAT
evasion, and cheating the public revenue. Who said
it was lucky if a Seagull poops on you?
DON’T LIE
Pop star Shakira is the latest
celebrity to find themselves
under investigation by the
Spanish authorities. It is
being claimed that she failed
to pay any income tax while
living in Barcelona between 2012 and 2014. She is
living in the city with her footballer partner Gerard
Piqué. It has been reported that Shakira has hired
PwC for the investigation. She was among those
named in the Paradise Papers too, along with U2’s
Bono and Madonna.
THREAT TO DEMOCRACY
Billionaire investor George Soros has said the tech
monopolies such as Facebook and Google
are a threat to democracy. He told guests
at his annual dinner at the World
Economic Forum in Davos that these
social media giants were “obstacles to
innovation”. He predicted that their
days were numbered because tax
policy and regulation would catch up
with them. He said: “Internet monopolies
have neither the will nor the inclination to protect
society against the consequences of their actions.”

WOMEN MORE HONEST

HRMC: “I couldn’t file my return on time
as my wife has been seeing aliens and
won’t let me in the house.” Another
claimed: “My ex-wife left my tax return
upstairs, but I suffer from vertigo and
can’t go upstairs to retrieve it.” But our
favourite was: “My business doesn’t really
do anything.” Among the questionable
items taxpayers tried to expense were vet
fees for a rabbit, hotel room service for
candles and Prosecco, and the same
sausage-and-chips meal expense for
£4.50 for 250 days. Or what about “a
three-piece suite for my partner to sit on
when I’m doing my accounts”? The
answer to all these requests was a big fat
‘no’.
WHEN IT COMES TO TAX
Men are more likely than women
to try to dodge tax. A study of
people in the US, the UK,
Sweden and Italy found that
given the opportunity men are
more likely to under-report their
income. Yet the same study
found that men were more willing
to pay their full share of tax if
they knew what the money paid
for! The University of Exeter’s
John D’attoma ran the research.
FOLLOW
YOUR NOSE
Worried that you are
overdoing the revision?
Well, scientists claim
that you just need to
touch your nose! If it is
cold then you probably need to take a
break. A cold nose is a sign that all your
blood has rushed from your face to help
your brain work that little bit harder.
Researchers using thermal imagining
cameras found that the temperature of
their noses dropped by about 1C when
they felt overwhelmed.

’
WEV E GOT THE L OT
Ladybirds for grown-ups I love PQ mug
We have three books from the Ladybird We can’t believe it! We were moving some
‘grown-ups’ collection to give away this furniture around the office when we found
month. The titles are Red Tape, The Meeting a whole box of ‘I Love PQ’ mugs. To
and The Student. Do you, for example, celebrate we are giving away not one but
provide a laminated list of your achievements five mugs. We will also throw in a PQ
for your annual appraisal? Don’t tell us you memory stick as well to the lucky winners.
haven’t thought about doing that! To be entered for this draw just email ‘I
To win this set of books just email love PQ’ to graham@pqaccountant.com to
graham@pqaccountant.com with a be entered into the draw.
‘Ladybird’ header and we will do the rest.

Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway entries must be
received by Friday 9 March. The main draw will take place on Monday 12 March 2018.

TO ENTER THESE GIVEAWAYS EMAIL GRAHAM@PQACCOUNTANT.COM

30 PQ Magazine March 2018
Your jobs board
I need to find
pqjobs.co.uk now!

PQ jobs pqjobs.co.uk
 BOOK ACCA REVISION & TUITION COURSES
FOR MARCH & JUNE EXAMS!

Sitting your ACCA exams Book classes now to sit

in March? the June exams
Increase your knowledge and boost your • Free revision for F1-F4 papers
prospects of passing with LSBF’s On-campus • Award-winning tutors
and Online revision courses • Pass 1st Time Guarantee™*

REVISION EXAM REHEARSAL DAYS TUITION REVISION

Join classes as early as Study from 21st Classes start in London Book as early as 7th
17th February 2018 February 2018 campus 3rd March 2018 April 2018

*LSBF Pass 1st Time Guarantee™ ensures that if you do not successfully pass your paper on the first sitting, you will be able to attend a free resit course.
The nature of the free resit depends on the preferred study mode.

BOOK ONLINE AT Classes at Moorgate,

2 Bunhill Row,
LSBF SHOP London EC1Y 8HQ