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4 cOntents
dispatch
06 GRAPHIC NEWS Tesco’s expansion plans and
corporate tax rates around the world
08 News roundup Global finance and accounting news
10 News feature An A to Z of 2011 – what to look out
for this year
features
20 All Abroad!
Find out what you need to know if you’re
interested in working in another country
22 beginning in bookkeeping
Many ACCA students will start
their accountancy careers working
in entry-level roles in accounts
payable or accounts
receivables. We take
a look at where
these roles
can lead
learning centre
12 study tips Studying abroad 14 Per Getting started
12 accountancy futures Access to finance 16 russian perspective Anatoli Karlovski, St Petersburg
13 Young and ambitious Bano Sheikh, UK 18 talking technology Integration matters
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Welcome to Issue 01/2011 of student accountant
Mark Gold
Please email studentaccountant@accaglobal.com with your feedback on this issue President
Dean Westcott
Deputy President
Barry Cooper
Vice President
Helen Brand
technical Chief Executive
Editorial Team
27 technical articles
Victoria Morgan
new syllabus for Editor
paper F5
Jamie Ambler
Relevant to ACCA
Editorial Consultant
Qualification Paper F5
Jackie Dollar
corporation tax
Art Editor
Relevant to ACCA
Qualification Paper P6 (UK) Richard Gooding
Designer
international
travelLers
Relevant to ACCA www.accaglobal.com
Qualification Paper P6 (UK) Glen Patterson
change of syllabus Online Editor
for paper P7
Relevant to ACCA 29 Lincoln’s Inn Fields London
Qualification Paper P7 WC2A 3EE
United Kingdom
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Student Accountant
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students/acca with ACCA.
RESOURCES The Council of ACCA and the publishers

do not guarantee the accuracy of
statements made by contributors or
31 noticeboard advertisers, or accept any responsibility
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Essential this publication.
information
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ACCA Connect or transmitted in any form or by any means,
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timetable, exam results ISSN 1473‑0979
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Why did you want to become an accountant, and OBU BSc (Hons)
what do you hope to be in the future? Email your
story to us at studentaccountant@accaglobal.com
6 DISPATCH
TESCO TARGETS CHINA
Tesco aims to quadruple China revenue in five years
by doubling the number of its hypermarkets to 150,
and building more ‘lifespace’ malls with a ground-floor 82 150 4 50
Tesco and other shops. NOW 2015 NOW 2015
FASTEST
GRAPHIC NEWS
UNITED ARAB EMIRATES

1 MALDIVES 0
2 UNITED ARAB EMIRATES 12
3 BAHRAIN 36
SAUDI ARABIA
QATAR 36
HONG KONG
4
SINGAPORE
MALDIVES
IRELAND
BAHAMAS 58
CANADA
KUWAIT
5
QATAR
OMAN
6 LUXEMBOURG 59
1 2 3 4 5 6 7 8 9 10
7 OMAN 62
8 SWITZERLAND 63
16 UK 23 MALAYSIA 114 MAINLAND CHINA
9 IRELAND 76
FROM ZERO TO GROSS: 10 SEYCHELLES 76
TAX COMPLIANCE BURDENS
Some jurisdictions make paying business taxes a breeze, but in others
it’s painfully complicated (as the diagrams above and below of best SLOWEST
and worst show), according to PwC’s Paying Taxes 2011 survey of
183 countries. The listing on the right orders countries according to 174 UKRAINE 657
the number of hours it takes to prepare, file and pay business taxes.
The Maldives tops both rankings because it has no business taxes. 175 SENEGAL 666
176 MAURITANIA 696
CENTRAL AFIRCAN REPUBLIC
177 CHAD 732

REPUBLIC OF CONGO
178 BELARUS 798

179 VENEZUELA 864
VENEZUELA
180 NIGERIA 938

BELARUS
UKRAINE
JAMAICA
PANAMA
BOLIVIA
GAMBIA
181 VIETNAM 941

CHAD
182 BOLIVIA 1,080

174 175 176 177 178 179 180 181 182 183 183 BRAZIL 2,600
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8 DISPATCH
01 BELARUS AUDIT FIRM
JOINS BDO MACAU’S GAMING
The largest accountancy firm REVENUE SURGE
in Belarus, previously part of The gross gaming revenue
KPMG, has joined BDO as BDO of Macau’s casinos reached
NEWS ROUNDUP
Belarus. The firm, which has 65 US$2.17bn in November,
partners, is based in Minsk. The according to Reuters,
former ORFICO accountancy firm representing a 56.9%
in Algeria has also joined the year‑on‑year increase. Many
BDO network, as BDO Algeria. It casinos are celebrating their
has three partners and 20 staff. change of luck following
‘These are significant additions a disastrous period during
that further the strategic growth the economic downturn.
plans of BDO in these regions,’ Among them was Melco
said Jeremy Newman, CEO of Crown Entertainment,
BDO International. ‘Given its co‑owned by Hong Kong’s
well-earned reputation, it is not Stanley Ho and Australia’s
surprising that BDO Belarus is James Packer, which in Q3
now the largest accountancy firm 2010 returned its first profit
in Belarus. The addition of BDO in 10 quarters. Ho told
Algeria allows us to expand our Bloomberg that a corner
presence in Africa, a continent had been turned. ‘Macau is
that is increasingly important to firing on all cylinders, and
clients of our member firms.’ we are fully participating in
this growth,’ said Ho.
02 ACCA RESEARCH
INTO EMISSIONS
Accounting practices on emissions from Barclays Bank. The revised and deposit holders. The Central
allowances vary substantially, version is intended to be easier Bank also intends to improve
according to research from to use, contains a free training bankruptcy procedures.
ACCA. Almost half of surveyed course handbook and a simple
companies (11 out of 26) Excel-based accounting system. 05 ISLAMIC FINANCE
treat emissions allowances More than 14,000 people a year STRENGTHENS
as intangible assets, so their – operating from 194 countries – Liberalisation and the
allowances are measured in have downloaded the guide since development of international
company accounts ‘at cost’. it was first published in 2005. Islamic financial infrastructure
Consequently, allowances The latest one is available free at has been the driving force behind
obtained free are shown as having www.mango.org.uk/Guide. the growth of Islamic finance, said
nil value, while those that have Bank Negara Malaysia governor
been purchased are valued at cost 04 CRIMINAL Dr Zeti Akhtar Aziz. ‘This trend
price. Only 15% (four companies) SANCTIONS TIGHTEN has prompted Islamic financial
are accounting for emission Detailed proposals are being drawn institutions to venture beyond
allowances at fair value, with the up by Russian criminal authorities their domestic borders. Today,
difference between fair value and and financial regulators to increase there are more than 600 Islamic
cost recognised as a governmental criminal sanctions on accountants financial institutions that operate
grant and presented as deferred and bankers for false accounting. in more than 75 countries,’ she
income on the balance sheet. New sanctions are expected told delegates at World Congress
to be introduced from 2012, of Accountants (WCOA) 2010.
03 MANGO REVISES GUIDE amending Russia’s criminal code Despite the turmoil in the global
FOR NGOs and making it illegal to knowingly financial system, Islamic finance
Mango, the adviser to NGOs, provide false or incomplete data has expanded at an average
has published a revised Guide with the intention of hiding a real annual rate of 20%, representing
to Financial Management for financial position. This is intended one of the fastest-growing
NGOs, with financial backing to increase protection of creditors segments in the financial industry.
STUDENT ACCOUNTANT ISSUE 01/2011
The latest on the global economy
9
www.accaglobal.com/economy
06 VODAFONE FACES 09 GRANT

INDIAN CLAIM IRELAND PRESERVES THORNTON
India’s tax authorities CT RATE PROFITS UP
are examining several Ireland is holding its Grant Thornton’s
multibillion-dollar merger and corporate tax rate at 12.5%, pretax profits in the UK grew
acquisition cases, following even though France and by 40.2% to £77.6m in the
their success in obtaining a Germany had pressed it to financial year ended June.
legal judgment in their favour raise it as a condition of the This was despite revenues
over a US$2.52bn tax claim. €85bn rescue funds from falling in both assurance (6.2%)
Telecoms company Vodafone the EU and International and tax (4.8%). Revenues
claimed that as a transaction Monetary Fund. Other in the advisory practice grew
between it and Hutchison had conditions were imposed, by 11.1% to £151.2m. During
taken place in the Netherlands including an obligation on the year, advisory overtook
and did not involve an Indian Ireland to produce regular assurance to become the largest
company, no tax was due to India accounts on income and part of the firm’s operations
on the transaction. Subsequently, expenditure, and to report by revenue.
the Dutch authorities have on the financial position
claimed that the Indian court’s of state‑rescued Irish 10 AADB
decision was in breach of banks. The US Chamber INVESTIGATES FIRMS
international agreements. of Commerce in Ireland The Accountancy and Actuarial
welcomed the current Discipline Board (AADB) is
07 ASIA STOCK corporate tax rate and the investigating PwC, KPMG, Baker
EXCHANGES UNITE publication of a four‑year Tilly and RSM Robson Rhodes.
The stock exchanges of Malaysia, austerity plan designed to PwC is being investigated regarding
Singapore and Thailand will link strengthen the country’s its audit of collapsed social
via an electronic trading system fiscal position. This provides housing company Connaught.
that will give investors access to all reassurance to corporations The KPMG investigation relates
three markets simultaneously by intending to invest in Ireland, to its audits of BAE Systems
the second half of 2011, according said Joanne Richardson, and commissions that may have
to officials. The move is part of a CEO of the US Chamber been paid by BAE and related
proposed single securities market of Commerce. companies. The investigation into
that will provide easier access for Baker Tilly regards its audit of the
investors and boost market liquidity Tanfield Group and the recording
in South-East
ast Asia. The Philippines of impairments. Robson Rhodes
Stock Exchange will join the alliance and its partner, Glyn Williams,
in the first half of 2012; however, are being investigated regarding
it is unclear if Indonesia, Brunei revenue recognised in the
and Vietnam will also join. accounts of iSOFT Group between
2003 and 2005.
08 NEW E&Y TAX CENTER
Ernst & Young is launching a new 11 PwC MALAYSIA NAMED
Asia-Pacific Tax Center (APTC). TAX FIRM OF THE YEAR
This is part of the firm’s global PwC Malaysia was named Tax
investment initiative (US$1.2bn Firm of the Year by leading tax
has been invested), which focuses industry publication International
on improving presence and service Tax Review at its annual Asia Tax
offerings in emerging markets. Awards. The firm also took home
The APTC adds to the existing the award for Transfer Pricing Firm
centralised virtual tax service of the Year. Other PwC firms in
hubs globally and will have 100 Australia, China, India, Singapore,
tax professionals from across the Thailand, Taiwan, Indonesia, Hong
region. It has ambitious growth Kong, New Zealand and Vietnam
plans and hopes to triple over the also took home awards for their
next 18 months. respective territories.
10 DISPATCH
A Audit
The momentum for
audit change sped up
and early snowfall.
2011 could bring
us an equal dose of
and non‑financial
performance) would
become the norm.
K Kids
Also known as
Generation Z, these
considerably last year. environmental change. The International digital natives, born
The EU’s green paper, Integrated Reporting after 1990, will start
one of a number of
probes on the subject,
contained some
F Fair value
A completed
version of a new
Committee aims
to create a globally
accepted framework.
entering the jobs
market. Having never
known an IT‑less
radical ideas. Expect international world, they have an
to see more this year. standard on fair value
measurement is J Julian Assange
Whatever the
ease and expectation
with technology and
B Bolshoi Theatre
Due to reopen
in 2009, a series of
expected in the first
quarter. If accepted,
the proposals will
outcome of any
criminal proceedings,
Assange is likely to
social media that
may challenge how
you work.
setbacks have forced create a single, unified continue to entertain
a postponement
of the reopening of
definition of fair value. some and embarrass
others by leaking L Leasing
A new international
the Moscow theatre
to 2011. G Growth
The global recovery
will continue to move
secret diplomatic
cables. The Wikileaks
founder was forced to
standard will tighten
rules on lease
accounting this
C Currency wars
Currencies have
become a source of
at two speeds, with
the IMF forecasting
the BRICs hitting 6.4%
switch operations to a
Swiss host server after
several US internet
year, forcing some
corporates to bring
billions of pounds
tension among the but the developed service providers in liabilities on to
AN A-Z OF
biggest economies, nations struggling to refused to handle their balance sheets.

especially the US and keep up, with 2.2% the site. Retailers are expected
We look ahead to some of the major trends and
China. Countries are GDP growth.

accusing each other
of manipulating their
currencies to make
imports expensive
H Hans
Hoogervoorst
Currently chairman
M MMOs
A massively multiplayer online game
is a multiplayer video game capable
and domestic of the Dutch
goods cheaper in a markets regulator,
of supporting hundreds or thousands
beggar‑thy‑neighbour Hoogervoorst will of players online simultaneously. Most
effort to create jobs. succeed Sir David of the newer game consoles, including
Tweedie as chairman Nintendo DSi and Wii can access the
D
events of the forthcoming year
Debt of the International

As national debt Accounting Standards
internet and may, therefore, run MMO
mushrooms and the Board in June 2011. games. Watch out in particular for Planet
public sector shrinks, Michael, inspired by Michael Jackson.
growth will have to
come from businesses
(and that means you).
I Integrated
reporting
At the World Congress
Roll your sleeves of Accountants in
up for a year of very 2010, International
hard work. Federation of
Accountants chief
E Environment
The environment
gave us much to
executive Ian
Ball said that
integrated reporting
battle with in 2010 – (the combined
erupting volcanoes, reporting of a
landslides, flooding company’s financial
11
W Wedding, the Royal One

Prince William is to marry his
long‑term girlfriend Kate Middleton of value
added tax in the UK
on 29 April. Kate and William, second rises from 17.5% to
in line to the throne, will marry at 20%. Other countries
Westminster Abbey. The British get are also looking at
an extra bank holiday to celebrate increasing their
sales taxes to fund
the wedding. government coffers
under pressure.
to be among the readers to pay to view
hardest hit. their online content. In
early 2011 The New X XBRL
Tax and
N Numerology
A numerologist’s
delight, this year will
York Times will ask
readers to pay for
the first time, joining
regulatory authorities
across the world
are stepping up
provide patterns on the UK’s Times and their demands
the 11th of each Financial Times. that companies
month except October use the internet
and December. The
number 11 will be
everywhere in 2011.
Q QE 3?
As the Bank of
England’s monetary
tagging language
to file accounts and
tax returns.
For example, the policy committee
11.11.11 sequence
that marks the 11th
hour of the 11th
held its last meeting
in 2010, analysts
were predicting
Y Year of
the Rabbit
The Chinese Year of
day of the 11th that the BoE would the Rabbit starts on
month of 1918 when not be pumping up 3 February. A rabbit
the armistice was the economy with year is supposed
proclaimed to end quantitative easing. to be a quiet one,
World War I in Europe But US Federal giving respite after
can now have another Reserve chairman Ben the current Year of
11 added to mark Bernanke has hinted global population hit celebration given the the Tiger. Hopefully
the year. he may yet resort six billion but, say the eurozone debt crisis. we can all breathe
to more QE: ‘It’s experts, by the end a sigh of relief
O Obama hits 50
US president
certainly possible.’ of 2011 there will be
another billion people U UK GAAP
The Accounting
after the past two
tumultuous years.
Barack Obama will
celebrate his 50th R Revenue
recognition
in the world. Standards Board
has taken the first
Z Zen
birthday as the
world’s most powerful
man this year. A year
New rules on revenue
recognition in 2011
are likely to have
T Tallinn
The Estonian
capital city of Tallinn
definitive step towards
the elimination of UK
generally accepted
As the age of
austerity is further
entrenched it’s clear
before presidential a significant effect will enjoy a double accounting principles that accountants,
elections in 2012, it on some industries celebration this in a new draft policy not to mention the
is hoped that Obama including automotive, year as it becomes that sets the stage rest of the country,
birthday parties will engineering and European Capital for a future where will need all the
re‑activate millions of construction, and of Culture 2011. ‘UK GAAP will cease Zen sentiment they
his 2008 supporters. pharmaceutical. The nation is also to exist’, having been can muster.
poised to embrace replaced by IFRS.
P Paywalls
More newspapers
are expected to ask
S Seven billion
It may seem only a
short while since the
the euro in January
– perhaps with
somewhat less V VAT
In January the rate
Michelle Perry
is a freelance writer
and journalist
12 LEARNING CENTRE
ACCOUNTANCY FUTURES
STUDY TIPS
STUDYING ABROAD
The ACCA Qualification is a passport to
global employment opportunities – but even
before you qualify, studying ACCA abroad
can accelerate career prospects, income and
personal development. ACCESS
TO FINANCE
Taking the first step, however, can be
daunting. Comprehensive research is vital,
and many different factors will influence your
final choice of destination – whether family
connections, available budget, language skills, ACCOUNTANCY FUTURES IS A
or climate. You’ll also need to know about
visas, work permits, passports, inoculations
PROGRAMME OF RESEARCH,
and any other regulations which might affect COMMENT AND EVENTS
your travel plans. FROM ACCA. IT HIGHLIGHTS
If you hope to study full-time then start
by researching ACCA’s network of Approved CRUCIAL ISSUES FACING THE
Learning Partners, looking at both tuition and INTERNATIONAL ACCOUNTANCY
the support offered to international students –
social networks, advice and guidance services
PROFESSION. ONE OF THESE
and so on. Also consider college location. It ISSUES IS ACCESS TO FINANCE.
may seem exciting to study in a capital city,
for example, but not if you’re faced with a long Access to finance is one of the most important
commute to college every day. issues facing business today. At the global
Combining work with study is another level, the ‘wall of money’ spoken of a few
option. If you can find a good job, with a years ago – cash flowing from resource-rich
reputable employer who pays you to finish your economies to indebted developed nations – is no
studies, then you’ll gain career advancement more, with the world economy enduring a slow,
and economic benefits, even though exam tentative recovery.
progress may be slower. Many employers Leverage, the extensive use of debt, as the
also handle the administrative side of moving easiest way to gain access to finance, has gone.
abroad. Start by looking for job opportunities Banking institutions are still living in fear of
with ACCA Approved Employers, or contact lending, and distrust each other. At the more
international recruitment consultants for a prosaic level, for the entrepreneur or for local
global perspective. government providing physical infrastructure,
access to finance is no longer a routine matter.
It has become a tangible barrier to getting
things done.
For accountants acting as trusted business
advisors, understanding and devising routes
to access finance is one of the most valuable
services they can provide. Not only must they
‘keep the books’ and maintain control over
cashflow but, like doctors, accountants must
increasingly be able to assess when they should
refer effectively to the right specialists.
You can access a range of research, opinion,
reports and articles on issues surrounding
access to finance at: www.accaglobal.com/
af/finance
13
YOUNG AND AMBITIOUS

BANO SHEIKH, UK
BANO SHEIKH
ASSISTANT MANAGER, INVESTMENT MANAGEMENT, ERNST & YOUNG LLP, SCOTLAND
Q WHAT WOULD YOU BE IF YOU WERE Q WHAT PART OF YOUR JOB DO YOU
NOT AN ACCOUNTANT? ENJOY MOST?
A I have developed an interest in A I enjoy interacting with the people and
photography. I would love to be a the networking aspect of my job. I work
professional photographer, taking with a great group of people and get a
pictures all day long. chance to network with a diverse range
of professionals.
Q WHAT’S IN YOUR INBOX?
A My inbox is full of emails from Q WHAT IS AT THE TOP OF YOUR
various sources. As part of my job, TO‑DO LIST?
I deal with a wide range of audit A At the moment, my top priority is
clients, specialised projects and to ensure that the audit planning
other operational roles that include: work for my key clients is completed
instructing as part of the learning ahead of the actual field work,
and development group; being which starts in mid-January.
a counsellor for new joiners in my Currently, I am busy meeting clients,
department and also being a member organising staff and providing them
of the Accelerated Leadership with relevant update training, and
Program (ALP). meeting audit partners to discuss
Outside Ernst & Young, I am an technical issues that are important
active member of the ACCA Scotland to our audits.
Committee and the Edinburgh Panel.
I am also involved with Edinburgh Q WHAT IS YOUR MAIN
Connections, which is a cross-sector CAREER AMBITION?
networking forum. A My long-term career ambition is
Given all this, my inbox is filled to progress within the firm to a
with audit-related queries, client leadership position, such
correspondence, technical updates and as a director or
information on networking meetings. audit partner.
FAST FACTS
Lives: Edinburgh, Scotland
Hobbies: Cooking and reading books
Career history: I started my career at Ernst & Young in Pakistan,
relocated to Dubai with KPMG and have since moved to Edinburgh
with Ernst & Young
If you would like to tell us about your day or life at work,

email your details to us at studentaccountant@accaglobal.com
14 LEARNING CENTRE
PER
GETTING STARTED
IF YOU’RE A NEW ACCA STUDENT OR HAVEN’T YET
CONSIDERED YOUR PRACTICAL EXPERIENCE
REQUIREMENTS, WE HELP YOU GET STARTED
The period after an exam session – or work towards at the same time. It is
any other quiet time during the year – also a good idea to tie your objectives
provides a perfect opportunity to think to recently taken exams or to the
about how you are going to fulfil your exams you are going to take next –
practical experience requirements and practical application will also help
(PER), and get to grips with the tools improve your exam performance.
that will help you.
In order to become an THE RIGHT ROLE
ACCA‑qualified accountant you If your job includes only a small
will need to complete the practical amount of accountancy and finance
experience requirement (PER) as work, it can still count towards your
well as passing your exams and the 36‑months’ practical experience as
professional ethics module. long as you pro rata the time you spend
The PER is a key component of the on these activities. You can also use
ACCA Qualification and will help you to: experience from previous roles to help
¤ apply in practice the knowledge and you claim a performance objective,
techniques gained through your including experience prior to registering
studies towards the ACCA exams with ACCA – although whoever
¤ observe and be involved in real‑life supervised your work at that time
work situations that help you to must be able to review and sign off the
develop the skills, attitudes, and answers to your challenge questions,
behaviours that you will need to and confirm that you achieved the
possess as a qualified accountant performance objective at that time.
¤ develop your judgment, encouraging
you to reflect on the quality of your GET STARTED
work and how you may improve your MAKING A START PER provides a framework for
work performance in the future. If you are in an accounting or achievement, confirming effective and
finance‑related role then you are ready sustainable workplace performance,
Employers expect ACCA members to start recording your practical making you a more valuable employee.
to show high levels of knowledge experience and work towards achieving Think about how you will get your
and ability in the workplace, and to your performance objectives. You need practical experience and achieve
behave ethically. to get acquainted with the trainee your 13 performance objectives. Start
The PER provides a framework for development matrix (TDM), find today by accessing your personal TDM
ACCA trainees to gain this knowledge yourself a workplace mentor, and make through myACCA and find out more
and ability. It does this by setting you a decision about which performance about what you have to do.
a range of performance objectives to objectives you are going to target. To find out more, visit www.
achieve and ensuring you gain enough These performance objectives could accaglobal.com/students/acca/
experience in one or more relevant be part of your work, or could be per/ to access a host of resources
roles, demonstrating that you have business‑related objectives. So when you and information to help support you
the abilities and maturity required to are setting your work objectives with in getting your practical experience
become a member – making you a your manager, try and agree the requirement and move closer to your
more valuable employee. performance objectives you could ultimate goal of ACCA membership.
Enrol Early and Save
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16 learning centre
a russian perspective
AnatolI Karlovski, St Petersburg
head of PwC’s office in st petersburg, russia, anatolI karlovski tells
Student Accountant about A typical day, why he pursued a career in
accountancy, and gives advice for those students just starting out
How would you describe a and opportunities to promote our firm. What made you pursue a career
typical day? With the economy now starting to in accounting after graduating
As a rule, my working day is well recover, we’re seeing increased interest with a technical degree?
planned out. A typical day for me and more demand for our services. People often change their profession
involves lots of client meetings and after graduation. A technical education
calls, as well as planning and taking What’s your number one ambition? provides a solid foundation for many
part in various events. Altogether, to I’d like to make our local PwC office other professions. It’s not surprising
maintain high visibility in the market, the best place to work, at least in that some technical graduates, such as
I would say that you need play an St Petersburg. me, switch to the financial sector after
active role in various industry events. starting their careers.
Another essential aspect of my What’s your advice for achieving PwC has a large number of
daily routine is working with human a work/life balance? partners and staff with technical
resources colleagues, since we have I’m constantly striving to achieve that. degrees. And a technical background
a staff of 200 people at the PwC A healthy work/life balance is a must can be a big advantage, especially
office in St Petersburg. You have to for both your personal and professional when you’re working with clients in
constantly monitor things to make life. It’s what allows you to live life to certain tech‑intensive sectors. Think
sure they run smoothly. the max. about it: for example, some top
As a partner, you’re a role model for managers in the industrial sector
How will you gain from the colleagues. So it’s really important to studied chemistry and their skills
recovering economy? have the same sense of responsibility and knowledge allow them to have a
I plan to continue being active in the towards maintaining a healthy balance deeper understanding of the business
market, working with our current in life as you do towards your work. they’re in.
clients and winning new ones. Right We’re all very familiar with concepts Plus, on top of their formal university
now, we’re not only responding to our such as ‘overtime’, ‘busy season’, and training, all PwC staff members
clients’ immediate needs but ‘client emergency’, but we also have to are constantly upgrading their
also constantly on the be good at planning. Proper planning is knowledge of accounting methodology
lookout for new a critical tool that can help us all avoid throughout their entire career within
contacts unnecessarily stressful situations both the firm through internal training
for ourselves and our staff. That’s a programmes and obtaining professional
fas
t fa good part of what achieving a healthy qualifications, including ACCA.
Live
s
cts work/life balance is all about. Combined, these educational
St P experiences ensure that we can
eter
sbu
rg If I wasn’t an accountant, I provide our clients with the highest
Ave would be ... quality services.
rag
per ew
My week
ork
ing
… a rocket scientist. Before becoming There’s no doubt, however, that an
t hou
Onc arget i rs an accountant I earned a degree in accounting degree is also important.
s
per e you g 50 hou rocketry and missile engineering and, Those who studied accounting in
w
very eek in o beyo rs per w frankly, I really enjoyed my studies university have an initial edge when
n
hea difficu the offi d 50 h eek. in that field. I could easily imagine it comes to studying for the ACCA
l lt o
bala thy wo to ma ce, it b urs
rk/li i e building a career in that industry. Qualification. But, I would say that
nce
. fe ntain a come
s
student accountant issue 01/2011
17
after a year with PwC, the knowledge The fact that you are professionally they can access all the necessary
gap between technical and accounting qualified is something that is definitely knowledge and expertise from
graduates who joined at the same respected and appreciated. the modules covered at the
time is quite minimal. The ACCA Qualification gives you Fundamentals level.
a solid grounding, from which you An accountant must be qualified,
How has your career progressed, have the opportunity to grow and even know the material in depth and
from your initial move into achieve senior positions in the field have the right attitude to doing
accountancy to your position of finance and economics. All PwC business, which includes things like
today as head of PwC Russia’s partners went through similar training. ethics, professionalism and business
St Petersburg office? We all know how difficult it can be and analysis. They should give top
The firm provides a clear career how important it is. priority to gaining IFRS, audit and
development path for each team In addition, the firm needs to assurance knowledge.
member. Exact requirements are have enough ACCA-qualified people As well, there are certain core
outlined for each grade, so each on staff to provide services to our competencies and personal skills
employee understands what he or clients. Plus, the law requires the that every accountant is expected
she is expected to do and learn firm to employ a certain number of to have, such as attention to detail,
so they can earn promotion to the certified staff. And, we make sure to customer care and teamwork skills,
next level and, ultimately, to key spell out in our proposals exactly how and the ability to work with large
managerial posts. many specialists with international amounts of information, strong
PwC’s culture uses a structured and local qualifications we have on time management and the ability to
approach to setting personal staff, because this is one of our key set priorities.
development objectives. This includes competitive advantages.
a structured personal study plan I mentioned that the ACCA How do you think the
that shows specific objectives, goals, Qualification is important for our accountancy profession
actions, metrics and timescales that clients from the point of high-quality will change in the wake of
should be met. service provisioning. We care about the global recession? And
our clients from all perspectives what role will accountants
What’s your advice for ACCA and the PwC Client Training play in the future
students who are just starting Academy is starting delivering ACCA financial landscape?
out in their careers? Qualification training for clients from Year by year, the role that
I would strongly recommend to each January 2011. accountants play is becoming
student that they complete their more and more important.
ACCA studies. In your view, what are the key Given that many companies are
From a practical perspective, it gives skills you must have to be now transitioning to IFRS, the
you the basic knowledge you need a successful accountant? earning potential of qualified
to do your job. And, from a personal All the questions covered in ACCA finance professionals is steadily
development point of view, ACCA modules are the core skills for increasing in the domestic
broadens a student’s outlook. ACCA is our business. And, if we’re talking economy. Being a qualified
not just about accounting; it teaches about young people who have just accountant is a very prestigious
you a whole other way of thinking. started their professional studies, and lucrative profession.
18 LEARNING CENTRE
TALKING TECHNOLOGY
INTEGRATION MATTERS
THE TECHNOLOGY INDUSTRY HAS A TENDENCY TO USE TERMS THAT MEAN
DIFFERENT THINGS DEPENDING ON WHO IS USING THEM AND THE IMMEDIATE
CONTEXT IN WHICH THEY ARE BEING USED; ‘INTEGRATED SOFTWARE’ IS ONE
If you want to understand what’s resources, and the exchange of data Microsoft Office – sometimes they
meant by integrated software you between them. Because there is a come as a series of ‘modules’ which
need to go on a journey. The best widely used ‘standard’ that makes will integrate with each other, in various
place to begin is by trying to think it easy for hardware devices to combinations, as selected by the end
of individual software applications communicate with computers, which user – think NetSuite – and which
and the processes they help you with you know as USB (universal serial could include accounting, customer
(such as bookkeeping and payroll and bus), billions of devices are ‘plug and relationship management, ecommerce,
word processing) in the same way as play’. But no single standard has been payroll and so on.
you might think of devices (such as a similarly widely adopted for software With integrated software these
computer printer and a mouse and a applications, so getting them to discrete applications and/or modules
smart phone), and then remember that communicate with each other is more can communicate consistently and
in order for these pieces of software of a challenge. transparently, without any effort on the
and hardware to communicate with Hence the popularity of integrated part of the end user (whether that is
each other, they need to ‘connect’ in a software, the term of reference which you as an individual or an organisation).
way that enables them to share data. is used to describe any system (or But an ‘integrated system’ is not the
In most cases this is done via package) that combines two or more same as ‘integrating a system’: the
a computer, which uses operating individual software applications. former brings applications together
system software (such as Microsoft Sometimes these integrated systems in a way that generally means less
Windows and Linux), specially designed wrap a number of applications up work and less effort on the part of the
to manage hardware and software into what is termed a ‘suite’ – think user (less re-keying and duplication
of data, for example), while the latter
INTEGRATED SOFTWARE, THE TERM OF brings applications together in a way
that generally means more work for
REFERENCE WHICH IS USED TO DESCRIBE somebody (either an external software
ANY SYSTEM (OR PACKAGE) THAT developer or the IT department).
Integration is getting easier though,
COMBINES TWO OR MORE and if you want to know how, you can
INDIVIDUAL SOFTWARE learn more by doing an internet search
on the following terms of reference:
APPLICATIONS. Application Programming Interface
(API), the Extensible Markup Language
(XML), mashups, Service Oriented
Architecture (SOA), the SPI model,
Web services and the Web Services
Description Language (WSDL). But
don’t expect immediate enlightenment
(this stuff is at least as complicated
as International Financial Reporting
Standards), and don’t expect to wake
up any time soon and find the software
equivalent of a USB plug attached to
every piece of application software.
Aim High
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accreditations, and is not approved or endorsed by ACCA. †London and Birmingham campuses.
20 working abroad
all
abroad!
We take a look at the most
crucial issues to be aware of when
considering a move to another
country – and an insight into
where demand is greatest for newly
qualifieds. Alex Miller reports
21
T
here is nothing quite like the adventure of living and working in another
country to broaden your horizons, boost your career experience and
prospects, explore another culture and learn another language.
By moving abroad, you can be sure you will be boosting your CV by showing you
have the capacity to be flexible and take on a different set of challenges than
your peers who have remained in their home country.
Despite continuing economic challenges, a wide variety of international

work opportunities do exist around the world and by studying for an ACCA
qualification, you have a ticket to travel, as the qualification is recognised
globally. So if you are potentially interested in finding opportunities overseas,
where do you begin?
Before you even begin your job search, it is a good idea to think it through
thoroughly. It is important to consider how a move abroad will affect your
long‑term career aspirations. Ask yourself if now is a good time to relocate or
whether you should wait until you become more established within your field.
Also, are your skills in demand in the country you wish to work in?
Consider whether you will enjoy living within the culture of the country you are
moving to. Such things as dietary habits, climate, housing, media and local
customs will all be different from what you are used to. Instead of acting on a
whim, consider taking a period of leave or a holiday to visit your target country if
you are unfamiliar with it.    
> READ MORE

On a practical level, if you rent your home, will you have to see your lease
through to its end? If you own a house will you sell it or rent it? Also consider
your family. Most overseas assignments or moves fail if immediate family
members are unhappy with the move or the separation.
If your native tongue is not be the primary language of the country you are
moving to, consider whether you know enough to get by, or if enrolling on
a course may be a sensible option before you depart.
In addition to getting used to your new surroundings, you will likely

have some issues learning new regulations and laws, and dealing with
cultural‑crossovers and unusual working practices – another reason not to
be trying out a new career path or job description.
Richie Holliday, Morgan McKinley’s chief operations officer for North Asia,
advises: ‘Those ACCA-qualified candidates and accounting technicians
who have assimilated and settled in best to new surroundings are those,
in our experience, that have moved to do a very similar role initially. If you
would like to consider alternative roles, it is often better to do this once
you are more established and familiar with your new location.’
Moving to a lower income tax city such as Singapore or Hong Kong will
net you a greater percentage of your gross salary and bonus, but be wary
of the cost of living in your new target hometown, especially for everyday
expenses and accommodation.
Once you have considered these important aspects, you are ready to find
the job you desire. Mark Pamplin, manager at Hays, says: ‘A good place to
start your search is by contacting a global recruiter, as expert consultants
will be able to offer you the most up-to-date advice on salaries, the current
job market and how to tailor your CV for international employers.’
Careful consideration needs to go into writing your CV as the format

requirements may differ from country to country. It is also important to
remember that employers in other countries may not be familiar with
domestic companies, therefore, providing a brief overview of who your
previous employers are and what they do, including industry sector and
company size is a good idea.
Pamplin adds: ‘Another advantage of working with a global recruiter is that

your details can be transferred with ease to the relevant country and quite
often give you access to jobs before you even step on a plane.’
Increased competition is making it harder to secure a job offer before

leaving home, but which countries have the greatest demand for
> READ MORE

> BACK TO MAIN ARTICLE
newly‑qualifieds? ‘In Australia, newly qualified candidates through to
those with five-years’ experience across both management and financial
accounting are sought after. There is demand for internal auditors, IT
auditors, tax accountants, product controllers, fund accountants and
accountants with multinational or publicly listed company experience.
Commercial accounting, forecasting and modelling skills are also sought
after,’ adds Pamplin.
There is also a strong demand for finance professionals in Dubai, including

part-qualified and qualified general accounting positions, and more
recently in specialised roles such as risk and compliance, audit and strategy
and business planning positions.
Once you receive an offer, there are several other issues to consider before
you travel. Check if prospective employers will cover the cost of relocation.
Have a thorough look at the terms of your contract before signing – paying
attention to employment terms, accommodation, healthcare, transport,
single/married status, leave and holiday entitlement, working offshore,
relocation, salaries and any escape clause.
Consider whether your salary will be paid into a domestic bank account or
will you have to open an account in your country of temporary residence.
A top tip is to also look carefully at annual leave allocations, as these can
be vastly different depending on the country and its public holidays. This
is especially relevant for those moving from a comparatively generous
‘European’ level of vacation allowance to somewhere like the US or China
where holiday entitlements are – in the main – much lower.
On arrival, be open-minded. ‘It is a good idea to never turn down any

invitation to meet new contacts, friends of friends or referrals in your new
home town... even if you may not usually have accepted such invitations
back home. You need to get ‘out there’ and explore the new place as best
you can,’ adds Holliday.
Don’t be fooled. Finding work abroad can be a long process, but one that
is definitely worth pursuing – do not give up – when you have your job
your experiences abroad will stay with you for the rest of your life. Travel
through work is an adventure to be savoured and enjoyed.

case study
Click here to read what
22 entry-level roles Rita Yan’s role in a purchase
ledger department entails
beginning in
bookkeeping
We all have to start somewhere, and
though not always fairy tale jobs,
entry-level roles in accounts payable
and accounts receivables are common
places for ACCA students to begin
their careers. We take a look at the
options available for your first step on
the accountancy ladder
bookkeeping
fast facts
Click here for
useful explanations
23
A
lthough there are many different areas in
which to specialise as well as the chance
to work in practice or business across
dozens of sectors, a large number of ACCA
students start their careers with positions such as
bookkeepers or in purchase ledger roles. But what
exactly is a bookkeeper – or should it really be called
a ‘spreadsheetkeeper’ these days – and where can
it lead on your accountancy journey?
Laura Gent, consultant, Accounting and Finance,

Badenoch & Clark, says: ‘Many accountants begin by
working for large companies in the accounts payable
(AP) or accounts receivable (AR) department and
are then financially supported by their organisation
to study and progress further in the business. At
Badenoch & Clark, we find that ACCA students
typically undertake ‘transaction processing’ roles,
including inputting invoices on to various systems,
completing monthly supplier reconciliations and
dealing with client queries’.
> READ MORE

Attention to detail
There is a certain amount of checking of data and
box ticking involve with these roles, but attention
to detail is what will stand you in good stead for
more advanced roles within the same organisation.
These days bookkeepers are often referred to as
accounts assistants.
Marios Georgiou, manager at Hays Accountancy &

Finance, says: ‘A purchase ledger clerk will usually
place orders with suppliers for goods/services, make
sure they have the right purchase order numbers and
correct level of authorisation signature, open all the
bills/invoices for goods/services ‘bought’ and then
raise cheques to pay the bills. An accounts assistant
will usually match batching and coding invoices, look
after all the month end reports/analysis, regularly
produce management information and deal with
overdue payments as well as various other tasks such
as processing the expense claims.
Pressure is part of working life in finance, especially

at month end, however a good finance manager will
support more junior staff through pressured periods.
transferablE skills
Often skills are transferable from between sectors
and industries, although there are some occasions
experience in one area may be beneficial as you move
on in your career.
Georgiou says that some employers are very specific

about previous experience. ‘For example, if candidates
have experience in manufacturing or FMCG
(fast‑moving consumer goods) they will have had
exposure to terms that aren’t always relevant to other
industries and a working environment which might
not be comparable. The same can be said of financial
services or the legal sector; students with exposure
to these industries will have specific experience and
will tend to stay working within the sector. Therefore,
we advise new graduates to consider which industries
they would like to work in for the long-term before they
embark on their careers.’
> READ MORE

To give yourself the best chance against other
candidates, it’s a good idea for college/university
students to spend some time in their holidays as an
opportunity to undertake work experience in finance,
whether this is voluntary work in practice or paid
work within a commercial environment.
‘The experience gained in these placements will

stand the students in good stead by the time they
start looking for a job,’ says Georgiou. ‘With an
increasing number of students entering the job
market every year, it helps students to differentiate
themselves from the crowd. Students should also
make sure their CVs are up to date and that they
prepare fully for all interviews.
Gent agrees. ‘When applying for roles in

transaction processing, students would benefit
from any experience of working within an accounts
environment where they have gained knowledge
of purchase/sales ledger,’ she adds, and she
continues: ‘Our clients are increasingly taking on
candidates at an assistant accountant level, for which
exposure to management or financial accounts
is desirable. For these roles, where study is often
supported, candidates should be well versed in bank
reconciliations, posting journals, completing VAT
returns and balance sheet reconciliations, and have an
advanced knowledge of Excel.’
In fact, knowledge of technology and appropriate

applications is crucial to success, and as a general
rule the same types of software are used across these
jobs whichever sector you find yourself working in.
But it’s always worth doing your homework before
an interview.
In particular, a working knowledge of Excel (preferably

pivot tables and V-look-ups – see ‘Fast Facts’ pop-up
panel) is an advantage. The most common IT systems
used by finance departments include SAP, Sage,
Oracle, Navision and JD Edwards.
> READ MORE

Generally, the skills (and software knowledge) are
transferable. ‘However, some employers, such as the
construction or travel industries, favour candidates
with experience of using specific systems,’ says Gent.
Employers tend to looks for candidates who have

strong communication skills as well as the ability to
learn and evidence of progression. As with many
accounting roles, the ability to explain in simple
terms, financial concepts that other people in the
organisation might find difficult to understand, is very
important. As an accountant, the phrase you are likely
to hear more than any other in your career is: ‘Oh, I
hated maths at school,’ and yet you need to be able
to explain the fundamentals to these same people.
sociable office environment

And what of the image of a lonesome bookkeeper
stuck in a room on their own behind three feet
of ledgers, never seeing the light of day? Times
have changed.
‘We find that most companies operate a sociable

office environment and often organise communal
activities outside of work hours. Very rarely will
somebody be left in a room alone!,’ reassures Gent.
‘The sociability of the role is entirely dependent on
the size of the finance department in the business
in which they are working and the physical layout of
the office. For example, in large organisations, an
accounts assistant could be one of 25 in a finance
department in an open plan office. In contrast, a
smaller company may have a finance team of just four.
Smaller finance teams can sometimes sit in an open
plan office alongside other departments, such as
marketing, IT and sales.’
What can a role in bookkeeping lead to?

Simply because these roles are entry level doesn’t
mean that you career will always be hover at the
bottom rung of the career ladder. Bookkeeping
can lead to a variety of positions, including senior
accounts assistant roles with supervisory responsibility
or an assistant accountant role with study
support included.
> READ MORE

‘You can work your way up to financial controller/
financial director in the long run, although this would
depend on the individual and the route you take in
your career,’ says Georgiou. ‘For example, would
you like prefer to go down a more analytical route or
become a financial accountant. Typically an accounts
assistant would first progress into a financial analyst
or assistant accountant.’
‘It is essential throughout your studies that your

experience complements your progression in order to
reach your career goals,’ Georgiou adds.
Beth Holmes is a freelance journalist

bookkeeping fast facts
Pivot tables and V-look ups are functions within Excel and are both
analytical tools. A pivot table is created from a large amount of
data that has been prepared as a list. The main purpose of pivot
tables is to be able to look at your data in a more dynamic way,
as opposed to a static list.
V-lookups are essentially way to reference a value from a table.
case study: rita yan

Rita Yan works in the purchase ledger department of a Hong
Kong-based company.
She completed her studies in Canada and became an ACCA

fellow (FCCA) in Hong Kong and says that the main driver for her
commitment to study was ‘job prosperity in accountancy’.
Through Michael Page International, Rita won her current role,

and she credits the ACCA Qualification as being key in making her
suitable and capable.
Her job, she explains, involves ‘all round accounting duties

including taking care of accounts receivable, accounts payable,
payroll, monthly and yearly financial statements preparation, annual
audit, and so on. I enjoy being able to provide financial advice
to the management such as evaluation of profitability of new
business project.’
Rita warns that study does not stop when the qualification
is under your belt, and that the role is a constantly evolving
one that requires her to keep up the date with the latest
regulatory changes.
‘The on-going changes of business environment make it necessary

for me to update myself through self-study, otherwise I cannot
provide accurate analysis. Accountancy is a ‘life-time’ study
as the rules and regulations of accounting and auditing always
update according to change of business conditions.’
As for the future, Rita wants to fulfill her potential and make the
most of her qualification. ‘Persistence is very important in making
my role successful,’ she says, ‘and I can fully utilise my accounting
experience and knowledge as time goes by.’

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LCA_Advert_Artwork_Single_Page_Jan11_v2.qxd 5/1/11 09:16 Page 1
technical
all you need to know
Articles on key examinable
topics to support your studies
28 computer-aided
audit techniques
Relevant to CAT Paper 8 and
ACCA Qualification Papers F8
and P7
international
new syllabus for travelLers
paper f5 Relevant to ACCA
Relevant to ACCA Qualification Qualification Paper P6 (UK)
Paper F5
change of
corporation tax syllabus for paper p7
Relevant to ACCA Qualification Relevant to ACCA
Paper P6 (UK) Qualification Paper P7
foundations in accountancy
Learn more about ACCA’s new suite of entry-level qualifications –
Foundations in Accountancy at www.accaglobal.com/fia
changes to the acca qualification from june 2011

Read more at www.accaglobal.com/students/student_accountant/
archive/2010/108/3333957
28 TECHNICAL
TECHNICAL ARTICLES
12 JANUARY 2011 RELEVANT TO ACCA AND CAT QUALIFICATION STUDENTS
NEW SYLLABUS FOR PAPER F5 ACCESS RESOURCES RELEVANT TO COMPUTER-AIDED AUDIT

RELEVANT TO ACCA ACCA QUALIFICATION PAPER P6 (UK) TECHNIQUES
QUALIFICATION PAPER F5 www.accaglobal.com/students/acca/ RELEVANT TO CAT PAPER 8 AND ACCA
The purpose of this article is to set exams/p6/ QUALIFICATION PAPERS F8 AND P7
out the syllabus changes that will take This article covers specific aspects of
place from June 2011 for Paper F5. The auditing in a computer-based environment.
changes have been made largely due to INTERNATIONAL TRAVELLERS
updates to the occupational standards RELEVANT TO ACCA ACCESS RESOURCES RELEVANT
that have taken place. Paper F5 has QUALIFICATION PAPER P6 (UK) TO CAT PAPER 8 AND ACCA
been carefully aligned, once again, Liability to tax in the UK depends on QUALIFICATION PAPERS F8 AND P7
to sit between Papers F2 and P5. There an individual’s residence, ordinary www.accaglobal.com/students/cat/
have been several deletions from the residence and domicile status, together exams/t8/
syllabus and a number of additions. with the location of their assets and the
sources of their income. It is a tricky www.accaglobal.com/students/acca/
ACCESS RESOURCES RELEVANT TO area and can be confusing. This article exams/f8/
ACCA QUALIFICATION PAPER F5 aims to clear up any confusion you
www.accaglobal.com/students/acca/ may have. www.accaglobal.com/students/acca/
exams/f5/ exams/p7/
ACCESS RESOURCES RELEVANT TO
ACCA QUALIFICATION PAPER P6 (UK)
CORPORATION TAX www.accaglobal.com/students/acca/ ACCA QUALIFICATION
RELEVANT TO ACCA exams/p6/ TECHNICAL ARTICLES
QUALIFICATION PAPER P6 (UK) PAPER F1
This article follows a company as it www.accaglobal.com/students/acca/
begins trading, acquires an additional CHANGE OF SYLLABUS FOR exams/f1/technical_articles/
business, and eventually invests PAPER P7
overseas. It sets out the commercial RELEVANT TO ACCA QUALIFICATION PAPER F2
decisions taken by the company and its PAPER P7 www.accaglobal.com/students/acca/
shareholders at the different stages in the The syllabus and study guide for exams/f2/technical_articles/
company’s development and summarises Paper P7, Advanced Audit and Assurance
the tax implications of those decisions. has been revised, and changes will be PAPER F3
effective from the June 2011 session. www.accaglobal.com/students/acca/
This article aims to highlight the nature exams/f3/technical_articles/
of these changes and the impact on the
exams that will be set. PAPER F4
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ACCESS RESOURCES RELEVANT TO exams/f4/technical_articles/
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PAPER F6
29
PAPER F7 PAPER P6
exams/p6/technical_articles/
CHANGES TO THE ACCA
QUALIFICATION FROM
PAPER F8
PAPER P7
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exams/f8/technical_articles/ exams/p7/technical_articles/ Read more at www.
PAPER F9 CAT QUALIFICATION accaglobal.com/students/
TECHNICAL ARTICLES
PAPER 2
student_accountant/
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exams/p2/technical_articles/ PAPER 4 Learn more about ACCA’s
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PAPER 10
30 TECHNICAL
EXAMINABLE
DOCUMENTS
CAT QUALIFICATION Paper F3 (UK) Tax
Paper 3 www.accaglobal.com/pubs/students/ Papers F6
www.accaglobal.com/students/cat/ acca/exams/f3/examinable/f3uk_ www.accaglobal.com/students/acca/
exams/t3/examinable_documents examdoc2011.pdf exams/f6/exam_docs/
Paper 6 Paper F7 and P2 (International Paper P6

www.accaglobal.com/students/cat/ and UK) www.accaglobal.com/students/acca/
exams/t6/examinable_documents www.accaglobal.com/pubs/students/ exams/p6/exam_docs
acca/exams/f3/examinable/f7p2int_
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www.accaglobal.com/pubs/students/ acca/exams/f8/examinable/
Paper 9 acca/exams/f3/examinable/f3f7p2hkg_ examnotesHKG2011.pdf
www.accaglobal.com/students/cat/ examdoc2011.pdf
exams/t9/exam_docs Papers F8 and P7 (International
Paper F7 and P2 (Malaysia) and UK)
www.accaglobal.com/pubs/students/ www.accaglobal.com/pubs/students/
ACCA QUALIFICATION acca/exams/f3/examinable/mys2011_ acca/exams/f8/examinable/
Financial reporting examdoc.pdf IntUK2011examnotes.pdf
Paper F3 (International)
www.accaglobal.com/pubs/students/ Paper F7 and P2 (Singapore) Papers F8 and P7 (Malaysia)
acca/exams/f3/examinable/f3int_ www.accaglobal.com/pubs/students/ www.accaglobal.com/pubs/students/
examdoc2011.pdf acca/exams/f3/examinable/sgp2011_ acca/exams/f8/examinable/f8p7mys_
examdoc.pdf examnotes.pdf
CBE (International) Papers F8 and P7 (Singapore)

acca/exams/f3/examinable/cbe_ acca/exams/f8/examinable/f8p7_
J08examdocs.pdf sgpexamdocs.pdf
CBE (UK) Guidance Notes for Irish Stream students

acca/exams/f3/examinable/f3uk_ acca/exams/f8/examinable/irish_
J08examdocs.pdf notes.pdf
Guidance Notes for Irish Examinability of the Clarity

Stream students Auditing Standards
acca/exams/f3/examinable/irish_ acca/exams/f8/examinable/clarity_
notes_v2.pdf audit_standards.pdf
RELEVANT TO CAT QUALIFICATION PAPER 8 AND ACCA QUALIFICATION
PAPERS F8 AND P7
SPECIFIC ASPECTS OF AUDITING IN A

COMPUTER-BASED ENVIRONMENT
Information technology (IT) is integral to modern accounting and management
information systems. It is, therefore, imperative that auditors should be fully
aware of the impact of IT on the audit of a client’s financial statements, both in
the context of how it is used by a client to gather, process and report financial
information in its financial statements, and how the auditor can use IT in the
process of auditing the financial statements.
The purpose of this article is to provide guidance on following aspects of

auditing in a computer-based accounting environment:
• Application controls, comprising input, processing, output and master
file controls established by an audit client, over its computer-based
accounting system and
• Computer-assisted audit techniques (CAATs) that may be employed by
auditors to test and conclude on the integrity of a client’s
computer-based accounting system.
Exam questions on each of the aspects identified above are often answered to
an inadequate standard by a significant number of students – hence the reason
for this article.
Dealing with application controls and CAATs in turn:
APPLICATION CONTROLS
Application controls are those controls (manual and computerised) that relate
to the transaction and standing data pertaining to a computer-based
accounting system. They are specific to a given application and their objectives
are to ensure the completeness and accuracy of the accounting records and
the validity of entries made in those records. An effective computer-based
system will ensure that there are adequate controls existing at the point of
input, processing and output stages of the computer processing cycle and over
standing data contained in master files. Application controls need to be
ascertained, recorded and evaluated by the auditor as part of the process of
determining the risk of material misstatement in the audit client’s financial
statements.
Input controls
Control activities designed to ensure that input is authorised, complete,
accurate and timely are referred to as input controls. Dependent on the
complexity of the application program in question, such controls will vary in
terms of quantity and sophistication. Factors to be considered in determining
these variables include cost considerations, and confidentiality requirements
with regard to the data input. Input controls common to most effective
application programs include on-screen prompt facilities (for example, a
request for an authorised user to ‘log-in’) and a facility to produce an audit
© 2011 ACCA
2
SPECIFIC ASPECTS OF AUDITING IN A COMPUTER-BASED

ENVIRONMENT
JANUARY 2011
trail allowing a user to trace a transaction from its origin to disposition in the
system.
Specific input validation checks may include:
Format checks
These ensure that information is input in the correct form. For example, the
requirement that the date of a sales invoice be input in numeric format only –
not numeric and alphanumeric.
Range checks
These ensure that information input is reasonable in line with expectations. For
example, where an entity rarely, if ever, makes bulk-buy purchases with a value
in excess of $50,000, a purchase invoice with an input value in excess of
$50,000 is rejected for review and follow-up.
Compatibility checks
These ensure that data input from two or more fields is compatible. For
example, a sales invoice value should be compatible with the amount of sales
tax charged on the invoice.
Validity checks
These ensure that the data input is valid. For example, where an entity
operates a job costing system – costs input to a previously completed job
should be rejected as invalid.
Exception checks
These ensure that an exception report is produced highlighting unusual
situations that have arisen following the input of a specific item. For example,
the carry forward of a negative value for inventory held.
Sequence checks
These facilitate completeness of processing by ensuring that documents
processed out of sequence are rejected. For example, where pre-numbered
goods received notes are issued to acknowledge the receipt of goods into
physical inventory, any input of notes out of sequence should be rejected.
Control totals
These also facilitate completeness of processing by ensure that pre-input,
manually prepared control totals are compared to control totals input. For
example, non-matching totals of a ‘batch’ of purchase invoices should result in
an on-screen user prompt, or the production of an exception report for
follow-up. The use of control totals in this way are also commonly referred to
as output controls (see below).
Check digit verification

This process uses algorithms to ensure that data input is accurate. For
example, internally generated valid supplier numerical reference codes, should
© 2011 ACCA
3

ENVIRONMENT
JANUARY 2011
be formatted in such a way that any purchase invoices input with an incorrect
code will be automatically rejected.
Processing controls
Processing controls exist to ensure that all data input is processed correctly
and that data files are appropriately updated accurately in a timely manner.
The processing controls for a specified application program should be
designed and then tested prior to ‘live’ running with real data. These may
typically include the use of run-to-run controls, which ensure the integrity of
cumulative totals contained in the accounting records is maintained from one
data processing run to the next. For example, the balance carried forward on
the bank account in a company’s general (nominal) ledger. Other processing
controls should include the subsequent processing of data rejected at the point
of input, for example:
• A computer produced print-out of rejected items.
• Formal written instructions notifying data processing personnel of the
procedures to follow with regard to rejected items.
• Appropriate investigation/follow up with regard to rejected items.
• Evidence that rejected errors have been corrected and re-input.
Output controls
Output controls exist to ensure that all data is processed and that output is
distributed only to prescribed authorised users. While the degree of output
controls will vary from one organisation to another (dependent on the
confidentiality of the information and size of the organisation), common
controls comprise:
• Use of batch control totals, as described above (see ‘input controls’).
• Appropriate review and follow up of exception report information to
ensure that there are no permanently outstanding exception items.
• Careful scheduling of the processing of data to help facilitate the
distribution of information to end users on a timely basis.
• Formal written instructions notifying data processing personnel of
prescribed distribution procedures.
• Ongoing monitoring by a responsible official, of the distribution of output,
to ensure it is distributed in accordance with authorised policy.
Master file controls

The purpose of master file controls is to ensure the ongoing integrity of the
standing data contained in the master files. It is vitally important that stringent
‘security’ controls should be exercised over all master files.
These include:
• appropriate use of passwords, to restrict access to master file data
• the establishment of adequate procedures over the amendment of data,
comprising appropriate segregation of duties, and authority to amend
being restricted to appropriate responsible individuals
• regular checking of master file data to authorised data, by an
independent responsible official
© 2011 ACCA
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ENVIRONMENT
JANUARY 2011
• processing controls over the updating of master files, including the use of
record counts and control totals.
COMPUTER ASSISTED AUDIT TECHNIQUES (CAATs)

The nature of computer-based accounting systems is such that auditors may
use the audit client company’s computer, or their own, as an audit tool, to
assist them in their audit procedures. The extent to which an auditor may
choose between using CAATs and manual techniques on a specific audit
engagement depends on the following factors:
• the practicality of carrying out manual testing
• the cost effectiveness of using CAATs
• the availability of audit time
• the availability of the audit client’s computer facility
• the level of audit experience and expertise in using a specified CAAT
• the level of CAATs carried out by the audit client’s internal audit function
and the extent to which the external auditor can rely on this work
There are three classifications of CAATs – namely:

• Audit software
• Test data
• Other techniques
Dealing with each of the above in turn:
Audit software
Audit software is a generic term used to describe computer programs designed
to carry out tests of control and/or substantive procedures. Such programs
may be classified as:
Packaged programs
These consist of pre-prepared generalised programs used by auditors and are
not ‘client specific’. They may be used to carry out numerous audit tasks, for
example, to select a sample, either statistically or judgementally, during
arithmetic calculations and checking for gaps in the processing of sequences.
Purpose written programs

These programs are usually ‘client specific’ and may be used to carry out tests
of control or substantive procedures. Audit software may be bought or
developed, but in any event the audit firm’s audit plan should ensure that
provision is made to ensure that specified programs are appropriate for a
client’s system and the needs of the audit. Typically, they may be used to
re-perform computerised control procedures (for example, cost of sales
calculations) or perhaps to carry out an aged analysis of trade receivable
(debtor) balances.
Enquiry programs
These programs are integral to the client’s accounting system; however they
may be adapted for audit purposes. For example, where a system provides for
the routine reporting on a ‘monthly’ basis of employee starters and leavers,
© 2011 ACCA
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ENVIRONMENT
JANUARY 2011
this facility may be utilised by the auditor when auditing salaries and wages in
the client’s financial statements. Similarly, a facility to report trade payable
(creditor) long outstanding balances could be used by an auditor when
verifying the reported value of creditors.
Test data
Audit test data
Audit test data is used to test the existence and effectiveness of controls built
into an application program used by an audit client. As such, dummy
transactions are processed through the client’s computerised system. The
results of processing are then compared to the auditor’s expected results to
determine whether controls are operating efficiently and systems’
objectiveness are being achieved. For example, two dummy bank payment
transactions (one inside and one outside authorised parameters) may be
processed with the expectation that only the transaction processed within the
parameters is ‘accepted’ by the system. Clearly, if dummy transactions
processed do not produce the expected results in output, the auditor will need
to consider the need for increased substantive procedures in the area being
reviewed.
Integrated test facilities

To avoid the risk of corrupting a client’s account system, by processing test
data with the client’s other ‘live’ data, auditors may instigate special ‘test data
only’ processing runs for audit test data. The major disadvantage of this is that
the auditor does not have total assurance that the test data is being processed
in a similar fashion to the client’s live data. To address this issue, the auditor
may therefore seek permission from the client to establish an integrated test
facility within the accounting system. This entails the establishment of a
dummy unit, for example, a dummy supplier account against which the
auditor’s test data is processed during normal processing runs.
Other techniques
This section contains useful background information to enhance your overall
understanding.
Other CAATs include:
Embedded audit facilities (EAFs)

This technique requires the auditor’s own program code to be embedded
(incorporated) into the client’s application software, such that verification
procedures can be carried out as required on data being processed. For
example, tests of control may include the reperformance of specific input
validation checks (see input controls above) – selected transactions may be
‘tagged’ and followed through the system to ascertain whether stated controls
and processes have been applied to those transactions by the computer
system. The EAFs should ensure that the results of testing are recorded in a
special secure file for subsequent review by the auditor, who should be able to
conclude on the integrity of the processing controls generally, from the results
of testing. A further EAF, often overlooked by students, is that of an analytical
© 2011 ACCA
6

ENVIRONMENT
JANUARY 2011
review program enabling concurrent performance of analytical review

procedures on client data as it is being processed through the automated
system.
Application program examination

When determining the extent to which they may rely on application controls,
auditors need to consider the extent to which specified controls have been
implemented correctly. For example, where system amendments have
occurred during an accounting period, the auditor would need assurance as to
the existence of necessary controls both before and after the amendment. The
auditor may seek to obtain such assurance by using a software program to
compare the controls in place prior to, and subsequent to, the amendment
date.
Summary
The key objectives of an audit do not change irrespective of whether the audit
engagement is carried out in a manual or a computer-based environment. The
audit approach, planning considerations and techniques used to obtain
sufficient appropriate audit evidence do of course change. Students are
encouraged to read further to augment their knowledge of auditing in a
computer-based environment and to practise their ability to answer exam
questions on the topic by attempting questions set in previous ACCA exam
papers.
Brian Pine is examiner for CAT Paper 8
© 2011 ACCA
RELEVANT TO ACCA QUALIFICATION PAPER F5
The new Paper F5, Performance Management syllabus for

exams commencing from June 2011
The purpose of this article is to set out the syllabus changes that will take
place from June 2011 for Paper F5. The changes have been made largely due
to updates to the occupational standards that have taken place. Paper F5 has
been carefully aligned, once again, to sit between Papers F2 and P5. There
have been several deletions from the syllabus and a number of additions.
These are dealt with separately, in turn, below.
Deletions from the Paper F5 syllabus

Only one subject area has really moved out of Paper F5 altogether and that is
the area of backflush accounting:
A4 Backflush accounting
a) Describe the process of backflush accounting and contrast with
traditional process accounting.
b) Explain the implications of backflush accounting on performance
management and the control of a manufacturing process.
c) Identify the benefits of introducing backflush accounting.
d) Evaluate the decision to switch to backflush accounting from traditional
process control.
It was deemed to be a peripheral subject that was not really necessary in the
Paper F5 syllabus. There have also been several deletions to some of the
higher-level requirements of some of the other specialist cost and management
accounting techniques (rather than to the whole area themselves) within
Section A. These are as follows:
A1d Explain the implications to switching to ABC for pricing, sales strategy,
performance management and decision making.
A2c Explain the implications of using target costing on pricing, cost control
and performance management.
A3b Explain the implications of lifecycle costing on pricing, performance
management and decision making
There have been no deletions to any other Syllabus Areas (B–E).
Additions to the F5 syllabus

The additions to the syllabus have been dealt with in turn below, under the
section of the syllabus (A–E) to which they relate.
Section A: Specialist cost and m anagem ent accounting techniques

There are two additions to this area of the syllabus: two extra requirements in
relation to lifecycle costing and the introduction of a whole new area,
environmental accounting.
Dealing with lifecycle costing first, the requirements of the Study Guide that
have been inserted read as follows:
© 2010 ACCA
2
EXAMINER’S APPROACH TO PAPER F5, PERFORMANCE MANAGEMENT
JANUARY 2011
A3 Lifecycle costing
b) Derive a lifecycle cost in manufacturing and service industries.
c) Identify the benefits of lifecycle costing.
This means that students could now be asked to perform some lifecycle cost
calculations that previously weren’t examinable. Also, they could be asked to
talk about the benefits of this costing method. It should be noted, however,
that as stated earlier in the article, there has also been a deletion from this
area, so, all in all, lifecycle costing is only slighter broader than before
(because of the inclusion of calculations.)
As regards the entirely new area of environmental accounting, the Study Guide
requirements read as follows:
A5 Environmental accounting
a) Discuss the issues businesses face in the management of environmental
costs.
b) Describe the different methods a business may use to account for its
environmental costs.
Students will be required to have a good understanding of what environmental

costs actually are and why it is difficult to manage them and account for them.
The four main methods of accounting for them, as identified in 2003 by the
UNDSD, should be understood so that students could describe them. No
calculations will be necessary for this new area of the syllabus. More
information about this new part of the syllabus can be found in my article in
the July 2010 issue of Student Accountant, so it is recommended that students
and tutors alike refer to this. I did not go into detail about the four methods of
accounting for environmental costs as this had been covered in detail by a
previous article in 2004, written by the previous Paper P5 examiner, so this
article is also a good reference point for students. Be aware, however, that it
goes into more detail on some areas than would be required for Paper F5
students.
Section B: Decision-m aking techniques

This is the area of the syllabus where most of the additions have taken place.
They start off with a new area being introduced into the Study Guide, which
reads as follows:
B1 Relevant cost analysis

a) Explain the concept of relevant costing.
b) Identify and calculate relevant costs for specific decision situations from
given data.
c) Explain and apply the concept of relevant costing.
Students need to be able to both discuss relevant costing, breaking down the
definition to see what its three elements are, and also deal with some testing
calculations. When it comes to labour and materials costs, in particular,
students can find calculations quite challenging in this area. The key is to
wholly understand the definition of what a relevant cash flow is, rather than
© 2011 ACCA
3
JANUARY 2011
trying to learn flow diagrams to guide you through (although I am not saying
that these aren’t useful).
The next addition to Section B is the whole area of cost-volume-profit (CVP)

analysis. The Study Guide reads as follows:
B2 Cost-volume analysis
a) Explain the nature of CVP analysis
b) Calculate and interpret the breakeven point and margin of safety.
c) Calculate the contribution to sales ratio, in single and multi-product
situations, and demonstrate an understanding of its use.
d) Calculate target profit or revenue in single and multi-product situations,
and demonstrate an understanding of its use.
e) Prepare breakeven charts and profit-volume charts and interpret the
information contained within each, including multi-product situations.
f) Discuss the limitations of CVP analysis for decision making.
This is the biggest addition to the new syllabus, covering the whole area of CVP
analysis from basic single product situations to more complex multi-product
situations. Some of the basic techniques should be revision for many students,
although often I find that previous learning seems to be forgotten as soon as
students walk out of the exam hall. Students could be asked to write about the
area of CVP analysis, as well as perform extensive calculations and draw a
number of graphs. I wrote an article on this new area in the July 2010 issue of
Student Accountant, which students and tutors should make themselves familiar
with.
The other additions to Section B of the syllabus are largely just additional
requirements to subjects that were already contained in the old syllabus. As
regards the area of ‘limiting factors’, the following insertion has been made:
B3 Limiting factors
b) Determine the optimal production plan where an organisation is
restricted by a single limiting factor.
This is largely self-explanatory and makes the syllabus more complete now
than it perhaps was before. Given that linear programming has always been in
there, it makes sense to cover situations where there is only one production
constraint as well. Students are not really being asked to learn any new
techniques since limiting factor analysis is effectively used in throughput
accounting and throughput accounting has always been in the syllabus.
Candidates are simple being asked to use that same technique when dealing
with contribution per unit of scarce resource rather than throughput per unit of
bottleneck resource.
The next addition is to the ‘pricing’ section:
B4 Pricing decisions
a) Determine prices and output levels for profit maximisation using the
demand-based approach to pricing (both tabular and algebraic
methods).
© 2011 ACCA
4
JANUARY 2011
Once again, I think this now makes the pricing area of the syllabus more
complete. It seemed necessary to include this requirement in order to properly
examine the area of pricing with life-like questions. Students should be clear
about when the tabular approach is necessary as opposed to when the
algebraic approach can be used, so that they don’t go down totally the wrong
path in any exam questions. They should also be aware that this could be
examined in conjunction with another area of the syllabus, if deemed
appropriate. I think a basic understanding of simple economics is necessary in
order to understand pricing properly.
The next area to be expanded slightly is that of ‘dealing with risk and
uncertainty’:
B6 Dealing with risk and uncertainty

a) Draw a decision tree and use it to solve a multi-stage decision problem
b) Calculate the value of perfect information
In the previous syllabus decision trees were specifically excluded from ‘dealing
with risk and uncertainty’, and they are now specifically included. This means
that students could be asked to draw a decision tree, work out the expected
value from it, and make decisions on that basis. To this end, students may be
required to calculate joint probabilities, although not complex ones. They could
also be required to work out the value of perfect information following on from
the tree, although perfect information does not have to be examined in
conjunction with decision trees alone.
Section C: Budgeting
There have been no additions to this part of the syllabus.
Section D: Standard costing and variance analysis

The only change here is the addition of sales mix and quantity variances to the
syllabus. The study guide reads as follows:
D4 Sales mix and quantity variances

a) Calculate, identify the cause of, and explain sales mix and quantity
variances.
b) Identify and explain the relationship of the sales volume variances with
the sales mix and quantity variances.
The requirements here are very similar to requirements 3(a) and 3(c) relating
to material mix and yield variances, so you can expect a similar level of
knowledge. Calculations can be quite tricky in this area, so students need to be
sure that they understand what they are doing, rather than rote learning
formula. They also need to be able to discuss what the variances actually mean
and how they relate to the sales volume variance.
There are no other changes to the June 2011 syllabus for Paper F5.
Ann Irons is examiner for Paper F5
© 2011 ACCA
RELEVANT TO ACCA QUALIFICATION PAPER P6 (UK)
Studying Paper P6?
Performance objectives 19 and 20 are relevant to this exam
CORPORATION TAX FOR PAPER P6 (UK)

This article is based on tax legislation as it applies to the tax year 2010–11
(Finance Act 2010), and is relevant for candidates sitting the Paper P6 (UK)
exam in June or December 2011.
Students sitting Paper P6 (UK) in 2012 will be examined on the Finance Act
2011, which is the legislation as it relates to the tax year 2011–12.
Accordingly, this article is not relevant to these students, who should instead
refer to the Finance Act 2011 version which will be published on the ACCA
website in 2012.
Development
This article follows a company as it begins trading, acquires an additional
business, and eventually invests overseas. It sets out the commercial decisions
taken by the company and its shareholders at the different stages in the
company’s development and summarises the tax implications of those
decisions. After reading each of the three stages in the company’s
development, stop and think about the possible tax implications before reading
on.
Early years
Kai Milford and his friend, Fay Dusky, formed Global Figurines Ltd (GFL) on 1
April 2009. Kai and Fay each acquired 40% of the company at a cost of
£100,000. Kai used a recent inheritance to acquire the shares whereas Fay
took out a bank loan for £100,000 secured on her house. The remaining 20%
of the shares is owned equally by four of their friends.
GFL manufactures resin models of historic figures and advertises them for sale
to the public in magazines and on its website. Kai and Fay work full time in the
management of the company. The other shareholders are passive investors.
GFL incurred significant start-up costs during the year ended 31 March 2010.
As a result, its taxable total profits, after paying salaries to Kai and Fay, were
only £60,000. GFL made a loan of £14,000 to Lamar, one of the passive
investors, on 1 December 2009.
The tax implications arising out of these events are:

• The interest paid by Fay on the loan to acquire the shares in GFL is
qualifying annual interest. This is because GFL is a close company (it is
controlled by Kai and Fay) and Fay works full time for the company.
Qualifying annual interest is a tax-allowable payment that is deducted in
arriving at Fay’s net taxable income.
• GFL is a close company and has made a loan to a participator, Lamar.
Accordingly, GFL should have paid HM Revenue & Customs (HMRC)
£3,500 (25% of the loan) by 1 January 2011 (ie nine months after the
© 2011 ACCA
2
CORPORATION TAX
JANUARY 2011
end of the accounting period). HMRC will repay the £3,500 when the loan
is repaid by Lamar or waived by GFL. GFL would not have had to make
any payment if Lamar had worked full time for the company as the loan is
for less than £15,000 and Lamar does not own more than 5% of GFL.
• GFL’s corporation tax liability for the year ended 31 March 2010 would
have been £12,600 (£60,000 x 21%).
Expansion via acquisition

In February 2010 Fay identified TP Ltd (TPL) as a possible acquisition. TPL
manufactures figurines of painters and poets and was a member of a large
group of companies. It was agreed (for commercial reasons) that the trade and
assets of TPL, rather than the shares, would be acquired.
On 1 April 2010, GFL formed a wholly owned subsidiary called Writers and
Artists Ltd (WAL). On the same day, WAL acquired the trade and assets of TPL.
As at 31 March 2010, TPL had trading losses available to carry forward of
£65,000 and capital losses of £18,000.
The results of the two companies for the year ended 31 March 2011 were as
follows.
GFL Taxable total profits £200,000
WAL Trading profits £80,000

Chargeable gains £20,000
The tax implications arising out of the expansion via acquisition are:
• The capital losses of TPL will remain with TPL. TPL has sold its trade and
assets to WAL and capital losses always remain with a company when it
sells its trade. TPL can use its capital losses to relieve any chargeable
gains arising on the assets sold to WAL.
• The trading losses of TPL will also remain with TPL and will not be
transferred with the trade. Where a company sells its trade to an
unconnected company, any trading losses remain with the vendor
company. TPL may be able to offset the losses against any capital
allowance balancing charges arising on the sale.
It is possible for trading losses to be transferred to the purchaser when a
company sells its trade to another company, but only when certain
conditions are satisfied. Broadly, the same persons must beneficially own
at least 75% of the business both before and after the sale. These
conditions would have been satisfied if TPL had formed a subsidiary,
Newco, sold its trade to Newco, and then sold Newco to GFL.
TPL is the legal and beneficial owner of its trade prior to the sale. If the
trade had been sold to Newco, TPL would no longer be the legal owner of
the trade but would still be the beneficial owner as it owns Newco. In
such circumstances, Newco could have used the trading losses against
future trading profits arising from the same trade, provided there was no
major change in the nature or conduct of its trade within three years of
the purchase by GFL.
© 2011 ACCA
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CORPORATION TAX
JANUARY 2011
• There are now two companies in the GFL group. Accordingly, the limits
used to determine the rate of corporation tax payable must be divided by
two.
The corporation tax liability of the group is computed as follows:
GFL £
£200,000 x 28% 56,000
Less: marginal relief
(£750,000 – £200,000) x 7/400 (9,625)
46,375
WAL £
£100,000 (£80,000 + £20,000) x 21% 21,000
Group tax liability (£46,375 + £21,000) 67,375
Consideration should have been given to GFL acquiring the trade of TPL
without the use of a separate subsidiary. This would have resulted in a single
company with taxable total profits of £300,000 (£200,000 + £100,000) and a
lower tax liability as set out below.
GFL (owning the trade of TPL)

£300,000 x 21% £63,000
Reduced tax liability (£67,375 – £63,000) £4,375
Going global
GFL’s business has grown considerably and it expects to have taxable total
profits of £800,000 in the year ended 31 March 2012. WAL is expected to have
taxable total profits of £100,000 in the same period. Kai and Fay have been
looking to expand overseas in order to take advantage of cheaper labour and
manufacturing costs. They started a new manufacturing business in
Marineland on 1 April 2011.
It is anticipated that the overseas business will make a trading loss of £60,000
in the year ended 31 March 2012, a profit of £80,000 in the year ended 31
March 2013, and a profit of £100,000 per year in future years.
The system of corporation tax in Marineland is broadly the same as that in the
UK, although loss relief is only available to companies resident in Marineland.
In addition, the rate of corporation tax is 50% regardless of the level of profits,
and there is no withholding tax when dividends are paid to overseas
shareholders. Marineland is not a member of the European Union and there is
no double tax treaty between the UK and Marineland.
© 2011 ACCA
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CORPORATION TAX
JANUARY 2011
The tax implications arising out of going global are:

The tax implications of the Marineland business depend on the legal structure
used. From a tax point of view there are two distinct ways of establishing the
business:
• It could be owned directly by GFL (or WAL). Under this option, it would be
an overseas permanent establishment of a UK resident company.
• GFL (or WAL) could incorporate a new subsidiary in Marineland to acquire
the business. Under this option, it would be an overseas subsidiary of a
UK resident company.
Overseas permanent establishment

A permanent establishment is not a separate legal entity but is an extension of
the company that owns it. The profits or losses of the permanent
establishment belong directly to the company. Provided the permanent
establishment is controlled from the UK, the trading loss made in the year
ended 31 March 2012 could be offset by GFL (or WAL) against its income and
gains of that year, thereby reducing the company’s UK corporation tax liability.
Once the permanent establishment is profitable, the company owning the
permanent establishment will be subject to 50% Marineland corporation tax on
the profits of the permanent establishment because it is trading within the
boundaries of Marineland.
The profits will also be subject to UK corporation tax because a UK resident

company is subject to tax on its worldwide income and gains. However, the UK
corporation tax liability in respect of the profits of the permanent
establishment will be fully relieved by double tax relief, as the rate of
corporation tax in Marineland is higher than that in the UK. Accordingly, there
will be no UK corporation tax to pay on the overseas profits.
Overseas subsidiary
A subsidiary is a separate legal entity. A company incorporated in Marineland
will be resident in Marineland for tax purposes provided it is not managed and
controlled from the UK. Its profits or losses will then be subject to the tax
regime of Marineland.
The trading loss of the year ended 31 March 2012 would be carried forward
and deducted from the company’s future trading profits arising out of the
same trade. Once the company is profitable, it will be subject to tax in
Marineland at the rate of 50%.
Any dividends paid to the UK parent company will be exempt from UK

corporation tax.
Considering the facts

It is usually suggested that a permanent establishment should be used where
an overseas enterprise is expected to make initial losses. This strategy enables
the losses to be offset against any other profits of the company. However, the
particular facts of the situation must be considered carefully.
© 2011 ACCA
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CORPORATION TAX
JANUARY 2011
The use of a permanent establishment in Marineland will enable GFL (or WAL)
to offset the losses against its profits for the year ended 31 March 2012. This
will save UK corporation tax at a maximum rate of 28%.
The use of a subsidiary would mean that the losses could not be offset in the
year ended 31 March 2012 as the subsidiary will not have any other income.
However, in the following year the losses will reduce that year’s profits and
save tax in Marineland at 50%. Accordingly, provided the group is willing to
wait for a year (from a cash flow point of view), a greater tax saving can be
achieved by using a subsidiary in Marineland rather than a permanent
establishment. This assumes, of course, that the anticipated profits materialise
in the year ended 31 March 2013.
It must also be recognised that a subsidiary is an associate for the purpose of

determining the rate of tax paid by group companies whereas a permanent
establishment is not. Accordingly, the use of a subsidiary (rather than a
permanent establishment) could increase the rate of corporation tax paid by
the UK companies. However, on the facts given, whether a permanent
establishment or a subsidiary is used makes no difference to the liabilities of
the UK companies in the year ended 31 March 2012.
The formation, expansion, and overseas development of the GFL group

highlight the following issues.
• It is always important to identify whether or not a company is a close
company. It is then necessary to consider the facts of the situation in
order to determine which, if any, of the implications of a company being
close are relevant.
• When a company purchases a new business it should consider whether to
own the business directly or via a new subsidiary. The structure used may
affect the total tax liability of the group.
• Where a company acquires the trade of another company, capital losses
remain with the vendor company. Trading losses will also remain with the
vendor company unless the two companies are under common
ownership.
• It is usually beneficial to use an overseas permanent establishment when
a business is expected to make losses. However, the facts given should
always be considered carefully, as it may be possible to obtain more tax
relief overseas than in the UK.
Rory Fish is examiner for Paper P6 (UK)
The comments in this article do not amount to advice on a particular matter and
should not be taken as such. No reliance should be placed on the content of this
article as the basis of any decision. The author and the ACCA expressly disclaims all
liability to any person in respect of any indirect, incidental, consequential or other
damages relating to the use of this article.
© 2011 ACCA
RELEVANT TO ACCA QUALIFICATION PAPER P6 (UK)
Studying Paper P6?
INTERNATIONAL TRAVELLERS
This article is based on tax legislation as it applies to the tax year 2010–11
(Finance Act 2010), and is relevant for candidates sitting the Paper P6 (UK)
exam in June or December 2011.
Students sitting Paper P6 (UK) in 2012 will be examined on the Finance Act
2011, which is the legislation as it relates to the tax year 2011–12.
Accordingly, this article is not relevant to these students, who should instead
refer to the Finance Act 2011 version which will be published on the ACCA
website in 2012.
Liability to tax in the UK depends on an individual’s residence, ordinary

residence and domicile status, together with the location of their assets and
the sources of their income. It is a tricky area and can be confusing. This
article aims to clear up any confusion you may have.
It begins with some basic rules, an understanding of which enables us to

identify the particular areas of tax affected by an individual coming to, or
leaving, the UK. It then goes on to review those areas in some detail, and
provides a clear set of questions to ask in order to determine an individual’s
liability to UK taxes. Finally, it deals briefly with the impact of double tax relief
and treaties.
Some basic rules

Generally, the UK tax position of an individual who has always lived and worked
in the UK (ie someone who is resident, ordinarily resident and domiciled in the
UK) is as follows:
• income tax (IT) on worldwide income
• capital gains tax (CGT) on worldwide assets
• inheritance tax (IHT) on worldwide assets.
Similarly, the UK tax position of an individual who has always lived and worked
outside of the UK (ie someone who is not resident, ordinarily resident or
domiciled in the UK) is as follows:
• IT on UK source income only
• no CGT (unless the asset sold is used in a UK trade)
• IHT on UK assets only.
Read the above points carefully, think about them, and recognise that they
result in the following:
• UK source income is always subject to UK IT, regardless of the status of
the individual
• there is no UK CGT, even on (most) UK assets, where the individual is
based outside of the UK
• UK assets are always subject to UK IHT, regardless of the status of the
individual.
© 2011 ACCA
2
JANUARY 2011
UK assets include land, buildings and chattels in the UK, cash in UK bank
accounts, and UK registered securities.
UK source income consists of income in respect of UK assets, employment

income in respect of duties performed in the UK, and trading income in
respect of trades carried on in the UK.
Completing the picture

The rules, as set out above, raise three fundamental questions:
1 Foreign income: At what point does foreign income become subject to
UK IT?
2 Liability to UK CGT: When are gains on UK and foreign assets subject to
UK CGT?
3 Liability to UK IHT on foreign assets: At what point do foreign assets
become subject to UK IHT?
This article identifies the order in which the key factors of residence, ordinary
residence, and domicile should be considered when answering these
questions. A brief reminder of the rules used to determine an individual’s
residence, ordinary residence and domicile status is included in the appendix.
1 Foreign income
The key factor when considering the taxation of foreign income is the
individual’s residence position. Figure 1 indicates the liability of foreign
investment income and trading income to UK IT.
Figure 1 – UK IT on foreign investment income and trading income
© 2011 ACCA
3
JANUARY 2011
Figure 1 relates to the taxation of foreign investment income and trading

income only. It has already been recognised that UK source income is always
subject to UK IT regardless of the individual’s tax status. Foreign employment
income is considered below, following Example 1.
Note the following:

• Where an individual is non-UK resident, foreign income is not subject to
UK IT. There is no need to consider the person’s ordinary residence or
domicile status. This is true even if the individual brings the income into
the UK.
• Where an individual is UK resident, foreign income is subject to UK IT.
The manner in which it is taxed depends on the individual’s ordinary
residence and domicile status. The remittance basis is available if the
individual is non-ordinarily resident or non-domiciled.
• An individual who is non-ordinarily resident or non-domiciled may be
taxed on the remittance basis. Where unremitted foreign income and/or
gains is less than £2,000, no claim is required. Where a claim is
required, individuals who have been resident in the UK for seven of the
nine tax years prior to the year in question must pay a fee of £30,000 in
order to be taxed on the remittance basis. Individuals who claim the
remittance basis are not entitled to the income tax personal allowance.
Individuals can choose each year whether or not to pay tax on the
remittance basis.
• Under the remittance basis, income is subject to UK IT only if it is
brought into the UK. An individual with foreign bank interest will not pay
UK IT on that interest if he can show that it has not been brought into the
UK. This could be achieved by, for example, showing that it has not been
removed from the foreign bank account.
Exam ple 1 – Adele

Adele came to the UK in 2009/10 but did not become resident until 2010/11.
She is domiciled outside the UK. Adele has employment income in respect of
her job in the UK and interest arising on a foreign bank account of £4,000 per
year. Adele’s liability to UK IT is as follows:
• Her employment income is in respect of UK duties. Accordingly, it will be
subject to UK IT in both 2009/10 and 2010/11.
• In 2009/10, the foreign bank interest will not be subject to UK IT as
Adele is not resident in the UK.
• In 2010/11, Adele is UK resident and will be taxed on her foreign bank
interest as well as her UK source employment income. However, she can
claim to be taxed on the remittance basis as she is not domiciled in the
UK. There will be no need for Adele to pay the £30,000 charge as she has
not been UK resident for seven of the nine tax years prior to 2010/11.
© 2011 ACCA
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JANUARY 2011
Figure 2 indicates the liability of foreign employment income, ie income in

respect of foreign duties, to UK IT.
Figure 2 – UK IT on foreign employment income
Figure 2 relates to the taxation of foreign employment income only and is

slightly different from Figure 1. A UK resident and ordinarily resident but non-
UK domiciled individual can not be taxed on the remittance basis unless the
employer is foreign and the duties are performed wholly outside the UK.
The rules set out above (in the notes below Figure 1) regarding the £30,000
fee and the remittance basis apply equally here.
2 Liability to UK CGT
The key factors in determining an individual’s liability to UK CGT are residence
and ordinary residence. Domicile is only relevant where gains have been
realised on foreign assets. Figure 3 indicates the liability of an individual to UK
CGT on both UK and foreign assets.
© 2011 ACCA
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JANUARY 2011
Figure 3 – Liability to UK CGT
Note the following:

• To be outside of UK CGT, an individual must be both non-resident and
non-ordinarily resident, and must not be a temporary non-resident.
• UK CGT applies to worldwide assets. Once an individual is subject to UK
CGT it is then necessary to consider the person’s domicile status to
determine the treatment of gains on foreign assets.
• The rules set out above (in the notes below Figure 1) regarding the
£30,000 fee and the remittance basis apply to capital gains as well as to
income. Note that the de minimis limit of £2,000 applies to the total of
unremitted income and gains. Individuals who claim the remittance basis
are not entitled to the capital gains tax annual exemption.
The rules for temporary non-residents were introduced in order to prevent

individuals avoiding UK CGT by going abroad for a relatively short period of
time, becoming non- resident and non-ordinarily resident, and then selling
assets outside of UK CGT. The rules apply to individuals:
• who have been UK resident for at least four of the seven tax years prior to
the year of departure and
• who leave the UK for a period of less than five years.
Gains made on assets owned at the time of leaving the UK, but sold whilst the
individual is outside of the UK, remain subject to UK CGT. Gains on assets
purchased after leaving the UK are not subject to UK CGT.
Exam ple 2 – Bosun

Bosun has always been UK resident, ordinarily resident and domiciled. On 1
June 2010 he left the UK and became non-resident and non-ordinarily resident.
© 2011 ACCA
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JANUARY 2011
His intention was to remain outside of the UK for four years. In 2011/12 Bosun
sold some shares (acquired in 2003), and a painting (acquired in 2011).
Bosun’s liability to UK CGT is as follows:
• Bosun is non-resident and non-ordinarily resident. Accordingly, he will not
be subject to UK CGT unless he is caught by the rules for temporary
non-residents.
• If Bosun returns to the UK as planned he will have been outside the UK
for less than five years and will therefore be a temporary non-resident.
The gain on the shares will be taxed in the year he returns.
• If he is non-resident for more than five years, the gain on the shares will
not be subject to UK CGT.
• The gain on the painting will not be subject to UK CGT as the painting
was acquired after Bosun left the UK.
3 Liability to UK IHT on foreign assets

The key factor in determining an individual’s liability to UK IHT on foreign
assets is domicile. Foreign assets are subject to UK IHT where the individual is
either domiciled or deemed domiciled in the UK.
The deemed domicile rules relate to IHT only and are not relevant for the
purposes of IT or CGT. The rules can apply to individuals coming to, and
leaving, the UK.
An individual who comes to the UK with the intention of returning, in due

course, to their home country is likely to retain a non-UK domicile. This is true
even where the individual remains in the UK for a considerable period of time.
However, once the individual has been resident for 17 out of the last 20 tax
years, he is deemed domiciled for the purpose of UK IHT. As a result, any
foreign assets become subject to UK IHT even though he has not acquired true
UK domicile.
An individual who leaves the UK and acquires a non-UK domicile is still

deemed domiciled in the UK for a further three years. Accordingly, any foreign
assets continue to be subject to UK IHT until he has been non-domiciled for
more than three years.
Double tax relief and treaties

An individual who is liable to UK IT on worldwide income may find that income
arising in respect of foreign assets is taxable in two countries – the UK, and the
country in which the income arises. A similar situation may arise in respect of
CGT or IHT. Relief may be available via either a double tax treaty or double tax
relief.
A double tax treaty, between the UK and the country in which the income
arises, will set out how double taxation is to be avoided or minimised. The
treaty could state that the income will only be taxed in one of the countries
concerned (for example, the country in which the income arises). Alternatively,
it could impose a maximum rate of tax in one of the countries.
© 2011 ACCA
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JANUARY 2011
UK double tax relief is available where there is no treaty or where an element of

double taxation occurs, despite the existence of a treaty. Foreign tax suffered,
up to a maximum of the UK tax on the foreign income (or transaction, subject
to CGT or IHT), is deducted from the UK tax liability.
Conclusion
International travellers add an extra dimension to exam questions because
their liability to UK taxes changes as they move to, or from, the UK. When
answering a question that includes an international traveller:
• Be specific and precise in your terminology.
• Be careful to address only those issues asked for in the requirement.
• Ensure that you are always clear as to which tax you are writing about.
Appendix: Residence, ordinary residence and domicile

The rules governing residence, ordinary residence and domicile are complex,
and depend on the time spent in the UK and the intention of the individual
concerned. The tables below provide examples of the more common situations.
Table 1 shows what an individual becomes on coming to the UK.
Table 2 shows what an individual becomes on leaving the UK.
Table 1 – An individual coming to the UK becomes:

UK Resident UK Ordinarily Resident UK Domiciled
If in the UK for 183 days If resident from year to • If all links with the
or more in a tax year, year former country of
deemed resident for that domicile have been
tax year cut and
From year of arrival if in the UK for an average of • Intending to
91 days or more for four tax years and this remain in the UK
intention was clear at the outset permanently
From date of arrival if From date of arrival if
intending to stay for two intending to stay for
years or more three years or more
Table 2 – An individual leaving the UK becomes:

Non-UK Resident Non-UK Ordinarily Non-UK Domiciled
Resident
For the tax year if If outside the UK for at • If all links with the
outside the UK for that least three years UK have been cut
year and
For a period of absence resulting from leaving the • Intending to
UK under a full time contract of employment, where remain in the new
that period includes a complete tax year country
From date of departure if intending to leave UK for permanently
three years or more
Rory Fish is examiner for Paper P6 (UK)
The comments in this article do not amount to advice on a particular matter and should not be taken as
such. No reliance should be placed on the content of this article as the basis of any decision. The author
and the ACCA expressly disclaims all liability to any person in respect of any indirect, incidental,
consequential or other damages relating to the use of this article.
© 2011 ACCA
RELEVANT TO ACCA QUALIFICATION PAPER P7
Studying Paper P7?
Change of syllabus
The syllabus and study guide for Paper P7, Advanced Audit and
Assurance has been revised, and changes will be effective from the June
2011 session. This article aims to highlight the nature of these changes
and the impacts on the exams that will be set. A second article, to be
published subsequently, will discuss the change in style of question, and
question requirements, which will affect all versions of the paper from
June 2011.
Most of the changes made are really just a ‘tidying up’ of the syllabus,
to make the learning outcomes more streamlined, and easy to
understand, and to make the syllabus less cumbersome. This tidying up
process has removed a number of specific learning outcomes and
combined some together. The focus of the syllabus remains the same,
with planning of audit and assurance engagements, obtaining and
evaluating evidence, and reaching opinions all remaining core syllabus
areas. Acceptance decisions, ethical and practice management matters
and current issues are also still important.
Candidates taking the UK or IRL adapted papers are advised that a new
syllabus area has been added, which deals with auditing aspects of
insolvency, included in Syllabus Area E (see below).
Rather than outline all of the small changes that have been made to the
syllabus, it is more beneficial to consider each syllabus area in turn,
consider the changes as a whole, and the impact on the way that
syllabus area is likely to be examined.
Regulatory environment (A)

Minimal changes have been made to this section of the syllabus.
Candidates are expected to be able to apply their knowledge of laws and
regulations, especially those pertaining to money laundering.
Professional and ethical considerations (B)

Again, minimal changes have been made here. The application of ethical
codes to client-based scenarios will remain a regularly examined topic.
Candidates are reminded that few marks will be gained for rote-learned
knowledge, and a clear pass can only be achieved through application of
knowledge to the specific scenarios provided.
Practice management (C)

No changes have been made to the learning outcomes relating to quality
control, which remains an important section of the syllabus. Candidates
© 2011 ACCA
2

PAPER P7 – CHANGES TO THE SYLLABUS

JANUARY 2011
must appreciate the significance of both firm-wide quality control

measures, and those applied to an individual assignment, and must be
able to critically evaluate the quality of an assignment which has been
performed. Small changes have been made to the sections on
advertising and tendering, and the examiner would like to confirm that
candidates will not be asked to prepare the content of a proposal
document, but may be asked to explain the matters that should be
included in such a document. This part of the syllabus includes client
and engagement acceptance, and though this section contains only two
learning outcomes, the examiner would like the draw candidates’
attention to this subject matter, which is an extremely important issue
for accountants in practice. Candidates may be asked to reach an
opinion as to whether a client or an engagement should be accepted,
and to justify that opinion.
Audit of historical financial information (D)

The section has been streamlined, and many specific learning outcomes
have been combined, removed or replaced to make the section as user-
friendly as possible given its wide scope. The thrust of this syllabus area
remains the same – in every examination candidates will face a variety
of requirements placing them in the position of an audit manager or
partner. Scenarios could be based on planning, obtaining or evaluating
audit evidence. Non-audit assignments have now been moved into a
separate syllabus area.
In terms of planning audit engagements, risk assessment remains

important, and candidates must be able to demonstrate their ability to
apply knowledge to the scenarios provided. Candidates are advised to
carefully read the learning outcomes in relation to planning in order to
appreciate the exact wording that has been used e.g. ‘demonstrate how
materiality should be applied...’, ‘demonstrate the use of analytical
procedures’. This should indicate that candidates will sometimes be
required to perform specific tasks in relation to materiality and
analytical procedures.
In terms of evidence and evaluation, changes have again been made to

make the learning outcomes more concise. As in previous examinations,
requirements may ask candidates to recommend audit procedures, and
section B questions in particular may focus wholly on the audit of a
particular area (fair values, related parties and going concern have
featured in past examinations). Evaluation of evidence is an important
topic, and candidates must be able to consider the audit implications of
evidence that has been obtained, including evaluating the sufficiency
and appropriateness of evidence obtained, financial reporting matters
and financial statement adjustments, and potential implications for the
auditor’s opinion.
© 2010 ACCA
3


JANUARY 2011
Candidates are reminded that learning outcome D1(iii)(a) contains a list

of the financial reporting topics which are examinable, and that
knowledge of Paper P2, Advanced Corporate Reporting is assumed for
this exam.
The section on group audits remains a prominent syllabus area. In

particular the specific risks associated with group audits, the
relationship between the principal and other auditors, and the group
audit opinion are all likely to be regularly examined.
Other assignments (E)

Many of the specific learning outcomes have been removed, but the key
principles are retained. Candidates must understand the various types
of non-audit, and assurance assignments which accountants in practice
may be asked to perform. The specific types of engagement referred to
in the syllabus include due diligence, reviews of interim and prospective
financial information and forensic investigations.
The sections dealing with internal audit and outsourcing have been
revised and reduced in the number of learning outcomes contained, with
the effect of focussing the syllabus on the impacts of both on the
external auditor.
An additional set of learning outcomes relating to auditing aspects of

insolvency have been added for candidates taking the UK and IRL
adapted papers. Candidates may be required to advise clients on
matters relating to liquidation or administration, including discussing
the options available to a company in financial distress, and the
consequences of those options for the company and its stakeholders.
Reporting (F)
Minor amendments have been made here, and there is no change in
substance to this part of the syllabus, which remains a key topic.
Candidates are advised to carefully read all the learning outcomes,
especially in relation to auditor’s reports. Candidates will not be asked
to draft an auditor’s report, but must still be familiar with the form and
content of both modified and unmodified auditor’s reports in order to be
able to critically evaluate a given auditor’s report, or recommend and
justify an opinion in a given situation.
Current issues and developments (G)

As ever, candidates are advised to read widely to develop an
understanding of current issues facing accountants and auditors in
practice. The syllabus content has been pared down, as requirements on
current issues tend to be driven by issues in the real world, rather than
by following a set syllabus. However, the syllabus retains a useful
© 2010 ACCA
4


JANUARY 2011
framework for considering the type of currents issues that are relevant
such as recent International Auditing and Assurance Standards Board
(and Auditing Practices Board for UK and IRL candidates)
developments, social and environmental issues which are becoming
ever-more relevant to companies, developments in relation to ethical
codes, and the impact of all of these on audit and assurance providers.
Conclusion
Candidates should not view the revised syllabus as something very
different in substance. With the exception of the insolvency section for
UK and IRL candidates, there are no major additions to the syllabus.
However, all candidates should be aware that the subtle changes made
to some of the learning outcomes mean that the syllabus will be
examined in a more practical, applied way. This will be discussed in a
forthcoming article which will look at the style of questions which will be
set from June 2011 onwards.
Lisa Weaver is examiner for Paper P7
© 2010 ACCA
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34 important bsc (Hons)
information BSC (Hons) in Applied
New students, variant Accounting from Oxford
papers and exam results Brookes University
tion ntly
tu rns Tu i
CA’s ot curre
e C
n u al r achieve e
A
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an to c r i b ct isit
per out how CCA glob
al. Subs der Dire CCA. V tudents
i A
a
Find ER for A ww.acc r Prov ved by al.com/s
w e o b
the P bership: /acca/p appr accaglo re
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mem student www d out mo
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com to fin
32 RESOURCES
acca connect
FEES
Annual subscription – 2011
Please note as a student you are required to
pay an annual subscription for each year you
are registered with ACCA. This is a separate
fee to your initial registration fee. Your annual
subscription is due on 1 January – irrespective
of the month you registered. For example,
if you registered in December, you will still
be required to pay an annual subscription
students@ by 1 January. The payment enables ACCA to
accaglobal.com provide you with services and support to assist
you with your studies and training as you work
towards gaining your qualification.
+44 (0)141 Students who fail to pay fees when due
582 2000 (including exam/exemption fees), will have
their names removed from the ACCA register.
Students wishing to re-register are required to
submit any amounts unpaid at the time of their
removal in addition to the re‑registration fee.
No penalty fee will be charged. Confirmation
of your unpaid fees can be obtained from your
national ACCA office or ACCA Connect.
The following fees and subscriptions apply

(exam fees are valid for the June 2011 session):
CAT students
For all enquiries, simply contact ACCA Connect – our Initial registration £72
global customer service centre. However you want Re-registration *£72
to contact us, by phone, fax, email or post, one of Annual subscription £62
our expert advisers will be happy to assist you. Introductory Level exam £40
Intermediate Level exam £40
Monday to Thursday Advanced Level exam/exemption £53
Open 21 hours (closed 20.00 to 23.00)
ACCA Qualification students
Friday Initial registration £72
Open 20 hours (closed 20.00 to midnight) Re-registration *£72
Annual subscription £72
Saturday Knowledge exam/exemption £57
Closed Skills exam/exemption £72
Professional exam £84
Sunday *plus unpaid fee(s)
Open 09.00 to 17.00 and 23.00 to midnight
(all times based on GMT/BST as appropriate) Foundations in Accountancy students
Initial registration £72
ACCA Connect Subscription £72
2 Central Quay 89 Hydepark Street Glasgow
G3 8BW United Kingdom Don’t forget to pay your fees on time. Dates by
tel: +44 (0)141 582 2000 which fees and subscriptions must be paid and
fax: +44 (0)141 582 2222 arrangements for payment are included in your
email: students@accaglobal.com ACCA welcome pack.
website: www.accaglobal.com
33
Are your contact details up to date?
https://www.acca-business.org
EXaM TIMETABLE F4 Corporate

and
Business Law
P7 Advanced Audit
and Assurance
Wednesday 8 June
june 2011
3* Maintaining
T F S
Financial Records
M T W F3 Financial Accounting
S 2 3 4
MFA Financial Accounting
3 1 1 F8 Audit and Assurance
29 30 9 10 11 Thursday 9 June
7 8
5 6
4* Accounting
4 1 5 1 6 1 7 18 for Costs
12 13 1
F9 Financial Management
23 24 25
P4 Advanced Financial
2 0 2 1 2 2 Management
19 0 1 2
7 2 8 2 9 3 Friday 10 June
26 2 5* Managing People and

Systems
F2 Management Accounting
MMA Management Accounting
P5 Advanced Performance
Management
The following dates have Local starting times will be
been confirmed for the next set falling out from these base Monday 13 June
exam session: start times for every centre. 8* Implementing Audit
Details of local start times can Procedures
June 2011 be found against each centre F5 Performance
Week 1 6 to 10 June on the Examination Centre List Management
Week 2 13 to 15 June accompanying your Examination P1 Professional Accountant
Entry Form.
Exams will take place over Papers F1 to F3 are two-hour Tuesday 14 June
an eight-day period with one exams, and Papers F4 to F9 and 9* Preparing Taxation
session of exams each day. P1 to P7 are three-hour exams. Computations
The exams will be held F7 Financial Reporting
concurrently in five different time Monday 6 June P2 Corporate Reporting
zones. The base starting times 1* Recording Financial
in each of these time zones Transactions Wednesday 15 June
will be: 6* Drafting Financial Statements 10* Managing Finances
¤ Zone 1 (Caribbean) – F6 Taxation F1 Accountant in Business
08.00hrs P6 Advanced Taxation P3 Business Analysis
¤ Zone 2 (UK) – 10.00hrs
¤ Zone 3 (Pakistan and South Tuesday 7 June *CAT exams
Asia) – 14.00hrs 2* Information for
¤ Zone 4 (Asia Pacific) – Management Control The latest ACCA exam
15.00hrs 7* Planning, Control rules can be found at
¤ Zone 5 (Australasia) – and Performance www.accaglobal.com/
17.00hrs. Management students/rules/exam_regs
34 RESOURCES
important
information
New students
Applications are normally processed
New students should allow adequate
within four to six weeks of receipt time for processing and receiving official
in the Glasgow office. Forms handed
in to national ACCA offices or Joint
confirmation of their registration. Carefully
Scheme offices will be forwarded to read the information that you receive with
Glasgow. Students who apply to register
online can track the progress of their
your post-registration pack to ensure all
application on the e-business website at details have been recorded correctly.
https://www.acca-business.org
New students should allow
adequate time for processing and ACCA Qualification variant/ to change a variant paper, please
receiving official confirmation of accounting and auditing papers confirm this in writing. If you would
their registration. Carefully read the The tax and law variants allocated to you like to change your stream, you can
information that you receive with your at the time of registration are indicated do so at the time of exam entry or
post-registration pack to ensure all on your profile letter. You can view your online via the e-business facility.
details have been recorded correctly. full profile at myACCA. You can select Amendments can be accepted up until
You should expect to receive: a student the accounting and auditing standards the standard exam entry closing date
registration card, a welcome to ACCA that you wish to be examined in at the for the next session, ie 15 April for the
letter, a profile letter detailing a summary time you enter for your exams. Should June exams and 15 October for the
of your data held by ACCA, and an you wish to change the tax or law variant December exams.
exemption notification if  applicable. for the forthcoming session, you can
do so as part of online exam entry or by exam results
Transfer to the including a request when submitting your Results for the December 2010
ACCA Qualification Examination Entry Form. Amendments exams will be released week
Students completing the can be accepted up until the exam entry commencing 21 February 2011. If
exam element of the closing date for the next session, you want to receive your December
Certified Accounting ie 15 April for the June exams and 2010 exam results by email, you can
Technician Scheme are 15 October for the December exams. register to receive them by ensuring
eligible to transfer to the you have an up‑to-date email address
ACCA Qualification with CAT variant/accounting and recorded on our website at https://
exemption from Papers auditing streams www.acca‑business.org then simply
F1, F2 and F3. This The variant and stream allocated to insert a tick in the relevant box. Make
transfer is automatic you at the time of your registration sure you do this by 18 February 2011.
for all students who are indicated on your profile letter. Once you have registered to receive
stated on their initial Technician You can also view this at myACCA. All your exam results via email, ACCA will
Registration Form that they wished this exam options are calculated based on continue to send exam results/status
to take place. Such students are eligible the variant/stream information held reports to you at subsequent sessions
to take the next session of the ACCA on file for you at the date of issue until you complete the ACCA exams or
Qualification exams. If you indicated on of the entry form. Should you wish unsubscribe from this service.
your application that you did not wish
this transfer to take place, a separate
application will be required should you to receive your exam results by email, tick the
subsequently decide to attempt the
ACCA Qualification exams. relevant box at https:// www.acca-business.org
35
Find out about practical experience requirements
www.accaglobal.com/students/acca/per and in ‘Learning Centre’ in this issue
Exam
certificates
ACCA issues the following exam certificates twice a year after exam
results are released:
ACCA QUALIFICATION
oxford
Certificate of Achievement
Students are awarded a Certificate of Achievement if they achieve a pass brookes
bsc (hons)
mark of 85% or above for individual passes in Papers F1, F2 and F3.
Fundamentals Level Certificate

Students are awarded a Fundamentals Level Certificate when they
have successfully completed all of the exams in the Fundamentals Students completing certain papers of the
Level of the ACCA Qualification (Papers F1–F9). ACCA Qualification are eligible to apply for
a BSc (Hons) in Applied Accounting from
Professional Level Certificate Oxford Brookes University.
Students are awarded a Professional Level Certificate when they have The degree must be completed within
successfully completed all of the exams in the Professional Level of 10 years of your initial registration on to
the ACCA Qualification (P1–P3 and any two of the Options papers ACCA’s professional qualification; otherwise,
from P4, P5, P6 and P7). your eligibility will be withdrawn. Check your
eligibility status at www.accaglobal.com/
CAT QUALIFICATION students/bsc/.
Introductory Level Certificate The dates below outline the forthcoming
Students are awarded an Introductory Level Certificate when they have deadlines for completing the qualifying exams
successfully completed all of the Introductory Level exams (Papers 1 and the last opportunity to submit your
and 2) of the CAT qualification. Research and Analysis Project (RAP):
Intermediate Level Certificate First session (1) Final session for Final date for
Students are awarded an Intermediate Level Certificate when they completing submission
have successfully completed all of the Intermediate Level exams the qualifying of RAP
(Papers 3 and 4) of the CAT qualification. exams (2)
June 2001 December 2010 May 2011
Advanced Level Certificate December 2001 June 2011 November 2011
An Advanced Level Certificate
is awarded on successful Notes
completion of all of the 1 First applicable exam session as confirmed
Advanced Level exams (Papers at the time of your initial registration
5–7 and two of the three with ACCA.
options from Paper 8–10) of 2 Completion of Fundamentals Level exams.
the CAT qualification.
Professional Ethics module
Passed Finalist Certificate Students wishing to submit their
Students are awarded a Passed Research and Analysis Project (RAP) must
Finalist Certificate when they complete the Professional Ethics module.
have successfully completed For more information visit www.accaglobal.com/
all of the papers of the students/bsc/
CAT qualification.
36
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London School of Management Contact: +44(0)20 8567 4355 support)
Visit: www.lsm.ac.uk
Dawley House, 91-95 Uxbridge Road, Ealing, London –W5 5TH E-mail: acca@lsm.ac.uk
ACCA @
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E-MAIL: commey@zenithcollegeghana.org
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06 VODAFONE FACES 09 GRANT

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Despite continuing economic challenges, a wide variety of international

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In addition to getting used to your new surroundings, you will likely

Careful consideration needs to go into writing your CV as the format

Pamplin adds: ‘Another advantage of working with a global recruiter is that

Increased competition is making it harder to secure a job offer before

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There is also a strong demand for finance professionals in Dubai, including

On arrival, be open-minded. ‘It is a good idea to never turn down any

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Laura Gent, consultant, Accounting and Finance,

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Marios Georgiou, manager at Hays Accountancy &

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‘The experience gained in these placements will

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‘We find that most companies operate a sociable

What can a role in bookkeeping lead to?

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‘It is essential throughout your studies that your

Beth Holmes is a freelance journalist

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V-lookups are essentially way to reference a value from a table.

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case study: rita yan

She completed her studies in Canada and became an ACCA