PQ magazine, April 2020

PQ magazine April 2020

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HAVE YOUR SAY My ACCA nightmare I have just left the Birmingham exam centre and I am in bits. I had to wait over four hours to sit my SBL exam and just couldn’t focus on the test.

I know it sounds over the top, but I was starving and a bit dehydrated when I finally got into my chair. We couldn’t leave the premises and sitting there I started to think that having exams every quarter may not be the answer.

Perhaps ACCA should follow CIMA’s example and move to exams on demand for all papers.

It will change that collegiate feeling that you get from being an ACCA student, that we’re all in

together, but this can’t go on.

I read your ‘Monday morning problems’ piece in the February issue of PQ and thought I was safe. SBL takes place on

Tuesdays! But then I read your tweet yesterday [3 March] about the scale of the problems.

At least I got to sit the exam eventually. It looks like some people didn’t and will have to wait until June now. How is the ACCA going to compensate these people properly? I know some students are looking to skip this summer’s exams to let the system bed in better.

Name and address supplied The editor says: There have been extensive technical problems this time around, and the ACCA have been put on notice to do better.

We will be asking for a full and frank meeting about this. In the meantime, see our feature on page 15.

Our star letter writer wins one of our fantastic ‘I love tax’ t-shirts!

social media ROUND-UP Unfortunately, it’s when things go wrong that social media seems to really work best! I can remember being in a meeting with a top tutor a few years back, who had heard a rumour that there was a problem with a CIMA exam. She turned on her computer to find out if anyone had been on their noticeboard, to discover the truth.

I turned on my phone and asked a quick question on Twitter. Before her computer had found the wi-fi I heard my phone ping, and we got confirmation of the problem and exactly what had happened!

We heard about the problems with the ACCA March sitting via Twitter, Facebook, online noticeboards, and even LinkedIn.

Watchdog that barks What has happened at the Financial Reporting Council? They seem to have much more of an edge about them these days, or maybe is it just PQ magazine ‘highlighting’ them more?

I love the fact that CEO Sir Jon Thompson is coming down hard on diversity – or rather the lack of it. It’s not before time.

The Parker Review is calling for every FTSE 100 board to have a director of colour by 2021, and I think that has to happen.

Diversity also has to happen on the boards of the big accountancy firms, too. It was good to read that two women are among the frontrunners for EY’s top job. It has never had a female managing partner, and maybe 2020 is finally the right time for this to happen.

Sue Smith, by email The editor says: The FRC has definitely upped its game under Sir Jon. We have three FRC stories in this issue – on audit separation, climate change, and the coronavirus. The accountancy

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watchdog really seems to be taking the lead, rather than being led.

Why the difference?

Thanks for publishing the 2019 CIMA case study pass rates in full in the last issue of PQ. I passed the Operational case study in

November, and I see that the pass rate shot up from 46% (in August) to 68%. How can there be such a big difference, when the standard of sitters will be roughly the same?

Name and address supplied The editor says: A good question – over to you, CIMA.

It quickly built up a picture that this was more than the usual few hiccups one can expect. By pushing the news back out there on social media we saw our “IT issues hit UK ACCA exam sitting” Facebook story on PQ magazine soon ‘reach’ 10,000 readers.

We couldn’t get away from coronavirus here, too. In early March we tweeted: “Big 4 firm Deloitte has closed a floor if its One New Street Square site for a ‘deep clean’, after one of its London staff was diagnosed with COVID-19.” At the time they were one of the 85 confirmed UK cases. There are massive implications for accountants and reporting here, too. How do you audit somewhere you can’t get to!

The Financial Reporting Council has released guidance on disclosure of risks and other reporting consequences, which we slapped straight up on the website – www.pqmagazine.com.

It’s also on page 9 in this issue.

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

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PQ news

ROBERT BRUCE IIRC is doing its bit to save the planet We must put things into perspective.

Environmental campaigner Greta Thunberg was born in 2003 and a year later, when she was a mere babe in arms, the Prince of Wales warnings on climate change were transformed into actions, and Accounting for Sustainability (A4S) was born.

There is, obviously, no connection, but it puts the changes we have seen over the past 20 years into context.

A4S challenged people in business to rethink their world. It was a simple concept. If the planet was to be saved the problems and their dire effects had to be made obvious. The old adage of ‘what’s measured, gets managed’ was at its heart.

The initial incredulity of a significant number of accountants and business people at the start of the process gradually melted away.

Carbon reduction saved money and the hostility died away. The simple messages became more complex, but the solutions became simpler.

Involving more and more accountants and businesses, organising networks and creating best practice spread the word. A4S continues its work, now on a global basis. And 10 years ago, when Greta was seven years old, the International Integrated Reporting Council branched off from A4S. It created a global reporting framework that embedded sustainability concepts and integrated thinking in the structure of companies’ reporting. It raised the bar and transformed the way companies globally viewed their business models and value creation.

Greta’s time had come. And the IIRC celebrates a decade of achievement.

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

Coronavirus threat to exams?

As ACCA PQs around the world were sitting their March exams, students in mainland China, Hong Kong, Macau, Mongolia, Kuwait and South Korea had their sittings cancelled – and the worry is now, what happens in June?

ACCA said that the decision to cancel exams was based on guidance from national governments. ACCA’s global crisis management team is also continually assessing the situation, checking official advice from the World Health Organisation (WHO) and feedback from partners.

Students were advised to check their own government’s advice

about the situation and continually check the ACCA website.

If students need to talk to ACCA they can call +44 141 582 2000 or

email info@accaglobal.com.

CIMA has also been tracking the situation and said it will take steps according to further advice “as we receive it”. At present, all CIMA test centre locations outside mainland China and Hong King remain open and exams will continue to be held as scheduled. Any action on the matter will be in line with government and WHO advice.

As well as standard operating protocols, CIMA also have precautionary measurers in its open test centre locations, such as providing hand sanitizers and allowing face masks to be worn for those who wish to use them.

Great expectations

And the winner is… London’s Café de Paris was rocking once again as the PQ Awards came to town. For more of the action turn to pages 18-19.

You can download photos from our website – www.pqmagazine.com

Global careers hub launched The Association of International Certified Professional Accountants (the Association) has launched a new online career portal at https://mycareer.aipca-cima.com.

The hub features tools for professionals at all career stages,

from students and entry level accountants looking for their first position to mid-career professionals looking to hone their skills to help advance their careers.

The site includes great articles and features, including ones on

The Financial Reporting Council has written to the Big 4 accountancy firms setting out its ‘expectations’ for separating out its audit operations.

The FRC’s Claire Lindridge said: “The FRC’s focus is to ensure audit firms put audit quality front and centre, with new independence and financial transparency guidelines to support this.”

She said the watchdog expects the firms to put in place independent governance for the audit practice and ensure that the audit practice is appropriately ring-fenced from the rest of the firm, so that financial results are clear and transparent. how to develop an effective job hunting strategy and the five technologies you need to explore to be employable in 2020.

There were around 17,500 job listings on the hub when PQ magazine took a look, including positions in the UK, US, Asia and Australia, from all levels of accountants to CFOs.

In brief Virus to hit airline profits Airlines are bracing themselves for a £24 billion hit in revenue as the cost to business of the outbreak of coronavirus becomes more apparent. The International Air Transport Association has said that revenue for the industry will drop by 5% from December estimates alone.

IATA’s Alexandre de Juniac said the impact is going to be ‘severe’ for anyone exposed to the Chinese market. Air France has reported that the virus could wipe up to 6

£170 million off earnings by April if flights remain suspended. Qantas said the outbreak could cost as much as £77m this financial year.

Search on for young CAs The hunt is on to find the most talented and inspiring young chartered accountants (CAs). ICAS’ Top Young CAs competition is an annual showcase of the best and

brightest CAs. You need to be aged 35 and under, and making a positive impact in three pivotal categories – technology, trust and talent. One Young CA will then be chosen to represent ICAS at the One Young World conference.

Classifying liabilities The International Accounting Standards Board has issued narrow-scope amendments to IAS 1, Presentation of Financial Statements, to clarify how to classify debt and other liabilities as

current or non-current. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one years) or non-current. The amendments include clarifying the classification requirements for debt a company might settle by converting it into equity.

PQ Magazine April 2020

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PQ news

PREM SIKKA Corruption is alive and well in ‘transparent’ Britain Well-functioning societies combat tax avoidance and money laundering through good systems of public information and accountability.

However, that is in short supply.

The Financial Secrecy Index, published by the Tax Justice Network, shows that western countries provide secrecy and opacity, a necessary ingredient for concealing corruption.

An estimated US$21–$32 trillion of private financial wealth is located, untaxed or lightly taxed, in secrecy jurisdictions around the world. The Cayman Islands, the US and Switzerland hold the top three spots in a table of 133 countries.

The UK is ranked the 12th most secretive jurisdiction, with its Overseas Territories and Crown Dependencies being leading providers of secrecy, thereby facilitating corrupt practices. It’s a far cry from the image of the UK championing transparency and public accountability.

Almost anyone from anywhere in the world can form a limited liability company in the UK. Convicted criminals have used fictitious addresses to register companies and then used the certificate of incorporation to open bank accounts.

Despite a plethora of accounting standards company accounts aren’t much better. Multinational corporations shift profits to low/no tax jurisdictions through intragroup transactions. Their audited accounts provide little detail. Accounting standard setters have shown little urgency in ensuring that accounts help to combat corrupt practices.

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

Climate change matters The impact of climate change and how it is reported has moved to the top of the Financial Reporting Council’s agenda.

The FRC will now review the extent to which companies and auditors are responding to the impact of climate change on their business, to ensure reporting requirements are met. What the accounting watchdog wants to know is how the quality of information can be improved to support informed decision-making by investors and other stakeholders. The FRC said it will now monitor how companies and their advisers fulfil their responsibilities, to encourage best practice.

The next step is for the FRC to review a sample of company reports and accounts across industries to assess the quality of compliance with climate change requirements. It will also look at some audits to review how auditors are ensuring the impact of climate

risk has been appropriately reflected in company reports and accounts, including key areas of judgement and related disclosures.

Audit firm resources supporting teams evaluating the impact of climate change on audited entities will also be scrutinised.

There is a new UK Corporate Governance Code and the FRC will evaluate the quality of disclosures here too, particularly looking at risk, emerging risk and long-term factors affecting ‘viability’.

Finally, the FRC will see if companies have followed its Lab’s recommendations to report in line with the Task Force on Climaterelated financial disclosures framework.

FRC CEO Sir Jon Thompson said: “Not only do boards of UK companies have a responsibility to report their impact on the environment and the risks of climate change to their business, but investors expect them to operate sustainably.”

Economists predicting ‘catastrophic outcomes’ You know we are in trouble when even JP Morgan economists say “human life as we know it” is being threatened by climate change. In a hard-hitting report to clients it says that without action there will be “catastrophic outcomes”.

The bank has said that the economists in question are in fact totally independent from the bank.

The economists, David Mackie and Jessica Murray, stressed that carbon emissions in the coming

Ofqual: fear tactics don’t work Scaring people into revising for exams doesn’t work. In fact it can be harmful and leave them anxious, says a new Ofqual report.

It warned that messages focusing on the importance of getting good

grades and on the consequences of failure can have a really negative effect.

That means unreasonably high goals set by schools and parents can leave students demotivated and

decades will continue to affect the climate for centuries to come in the way that is likely to be irreversible.

They emphasised that climate change action should be motivated by the likelihood of extreme events.

“Climate change could affect economic growth, shares, health, and how long people live,” says the report. lead to poorer performances. In contrast, the promise of rewards are a much better motivator, the exam regulator explained. The report points out that the setting of high standards “creates a competitive atmosphere in which some students are more likely to experience anxiety and withdrawal”.

Taxwatch Billions go missing Billions of pounds of foreign aid meant for dependent nations is simply ending up in tax havens, says a new report from the World Bank. The study, Elite Capture of Foreign Aid, tracked payments into 22 nations and found that a sixth of the payments were paid into accounts in havens such as Switzerland and the Cayman Islands. Economists at the World Bank said that the problems are worst in the most dependent countries. The worry is that this 8

report will be used to justify the arguments for reducing aid below the commitment to spend 0.7% of GDP in this area.

Spain introduces digital tax Spain’s government has approved a new digital services tax that will hit tech giants such as Google and Facebook. The levy will be imposed at 3% on the earnings of large web companies that generate more than £662m in global revenues a year, and more than €3m in Spain. This follows

similar moves by the French government.

VAT fears for NHS There is a real concern that NHS hospitals may be landed with massive unexpected tax bills after Boris Johnson’s pledge to provide free parking for patients. From 1 April, all hospital trusts in England will be required to roll out charge-free parking. Hospitals have, however, been claiming back VAT from the taxman on any refurbishment or maintenance

works they have undertaken under the HMRC capital goods scheme.

But to qualify for the scheme the ‘enterprise’ must continue to take payments from the public.

PQ Magazine April 2020

news PQ

QuickBooks cancels QB Connect London QB Connect London, the Intuit QuickBooks flagship UK conference, was cancelled over fears about coronavirus.

The conference, which attracts around 1,500 accountants, was due to start on 4 March, but in an email to delegates QuickBooks said: “Given the rapidly changing situation with COVID19 and the size and scale of the QuickBooks Connect London event, we are cancelling out of an abundance of caution.”

It went on: “This was a difficult decision, but health and safety of our employees, customers, partners and communities are our top priorities.”

Organisers of Accountex and other big events will now be holding their breath.

PQ Magazine April 2020

Coronavirus risk disclosures

The Financial Reporting Council has published guidance for companies on disclosure of risks and other reporting consequences arising from the emergence and spread of coronavirus (COVID-19).

The regulator is also discussing with audit firms whether the virus affects their ability to review component audits in China and the consequences for delivering timely audit opinions.

By law, companies are required to disclose principal risks to their business. The FRC is advising companies to carefully consider what disclosures they might need to include in their year-end

Finance bosses are increasingly targeting the top job at their company, as they prioritise acquiring new non-accounting skills, says a new report.

Some 60% of CFOs said their next move would be to take over from the incumbent CEO. This trend can partly be explained by the changing financial chief role, which has developed to include other responsibilities such as technology and procurement, as

Coronavirus

CRISIS accounts, which will be particularly relevant for companies either operating in or having close trading associations with China.

The extent of the risk and the degree to which it might crystallise depends on companies’ specific business circumstances. These could include, for example, extensive operations or manufacturing in China, with

consequential staff shortages and production delays.

Depending on the extent to which the virus spreads outside China, other companies could also become affected.

An FRC spokesperson said: “Given the potential for rapid spreading of the virus, required disclosure will likely change over time as more information about the epidemic emerges.”

• The ICAEW’s Audit & Assurance Faculty has published practical ‘Know-how’ guidance to help group auditors understand the steps they need to take to navigate the threat presented by coronavirus.

Aiming for the top well as supply chain and HR. The Norman Broadbent study found that organisations no longer want CFOs who are principally wellqualified technical accountants.

They want a business professional who can build a team to partner with the business and influence across many dimensions.

9

PQ news

ZOE ROBINSON T-shaped people, not T accounts

One of the main challenges for any professional body is curriculum design – or to be precise, deciding the subjects to be included or removed. It’s a difficult balancing act, keeping the qualification relevant while ensuring the core principles and essential skills are not replaced by the latest new idea. To inform the argument, it’s worth asking what the future finance professional could look like. Are they I or T-shaped?

If you consider accountants to be experts, specialists in finance, tax and compliance, then they are ‘I-shaped’, having a depth of expertise in one specific area. This works well where there is a multi-disciplined team that can ‘get the best’ out of the expert.

However, didn’t Michael Gove say that Britain has had enough of experts?

And even if we ignore Mr Gove, isn’t there a more important point?

Companies want it all; of course they want experts, but they want their experts to be capable of much more.

They want ‘T-shaped’ people.

T-shaped professionals not only have a level of expertise, they can also solve problems, lead teams, innovate and add value to their organisation. The horizontal bar on top of the ‘I’ represents these broader generic attributes, turning an ‘I’ person into a ‘T’.

As robotics and AI find their way into the workplace, finance professionals may notice some of the jobs they have done in the past are no longer required. But that’s okay! There is a lot more interesting and rewarding work for the T-shapes.

Zoe Robinson is Learning and Programmes Director at Kaplan Financial

No short-term fix for the NHS The NHS needs to be better looked after, says CIPFA’s Eleanor Roy. She said the recent National Audit Office (NAO) report on NHS finances paints a stark picture.

She commented: “The NHS is at risk of being unable to make the best use for the additional funding from the long-term settlement and to address the decaying NHS estate effectively.”

Roy said that there continues to be underspends in the overall capital budgets. “The continued

reliance on short-term fixes, in particular the transfer of revenue to capital, must cease.”

She was flabbergasted that despite five years of these transfers, the Department of Health and Social Care remains unable to provide any information on the wider impact of this short-term fix.

Roy also pointed out that the NAO shows that the recent awards of additional capital bear little relation to those areas in most need of backlog maintenance.

AAT boost regional support: AAT has appointed four new UK regional account managers, to boost its support in the regions. Danielle Smith, a Fellow member of AAT, has joined the Midlands team. Also joining the team are Yvonne Eaves, Amy Bishop and Marlon Thomas.

LSBF’s director of professional studies, Rob Sowerby, contacted PQ to say the college is happy to offer a full live revision course for June to any ACCA student who was unable to take their exam due to the C19 virus. All you need to do is provide proof that the ACCA exam centre you planned to sit at was shut down in March. Send your proof to rob.sowerby@lsbf.org.uk and he will do the rest!

LSBF OFFER

Top 10 books for the literate accountant So what is the accountant looking to get ahead reading? Here’s Perlego’s list of the most popular reads: 1: Digital Cash: The Unkown History of the Anarchists, Utopians, and Technologists Who Created Cryptocurrency

by Finn Brunton (Princeton University Press, 2019) 2: Financial Accounting and Reporting by Barry Elliot and Jamie Elliot (Pearson, 2019) 3: Adaptive Markets: Financial Evolution at the Speed of Thought

Big 4 dominance There was no shortage of advisory changes throughout the latest quarter; however, PwC still safely held on to the number-one slot, according to Adviser Rankings. PwC audit 336 companies on the stock market. At number two is KPMG with 299. The surprise for many will be who takes third place – it’s BDO, with a total of 281.

Next is EY and Deloitte. Grant Thornton is sixth, but is a long behind fifth-placed Deloitte.

Stop checking that mobile!

The proportion of young workers using their smartphones ‘very often’ for business purposes outside of working hours almost doubled 10

by Andrew W. Lo (Princeton University Press, 2019) 4: Fintech: The New DNA of Financial Services by Pranay Gupta and T. Mandy Tham (De|G, 2018) 5: Reach the Top in Finance: The Ambitious Accountant’s Guide to Career Success by Sally Percy (Bloomsbury, 2017) 6: Bubbles and Crases: The Boom and Bust of Technological Innovation by Brent Goldfarb and David A. Kirsch (Stanford University Press, 2019)

between 2018 and 2019, according to newly published findings from Deloitte’s Mobile Consumer Survey. The research found some 12% of 18-24 year olds said they checked their phones ‘very often’ for business in 2018.

That rose to 21% in 2019. The worry is some 15% of 18-24s are also waking up during the night to check their phone. Deloitte is concerned that if they don’t manage their usage it could lead to mental wellbeing issues.

5G investment set to soar Some 15% of UK businesses are currently investing in 5G, and this will rise steeply in the

7: Wiley Interpretation and Application of IFRS Standards by PKF International (Wiley, 2019) 8: The Basics of Bitcoin and Bookchains: An Introduction into Cryptocurrency and the Technology that Powers Them by Antony Lewis (Mango Media, 2018) 9: Frank Wood’s Business Accounting: Volume 1 by Alan Sangster and Frank Wood (Pearson, 2018) 10: Accounting Ethics by Ronald F. Duska, Brenda Shay Duska and Kenneth Wm. Kury (Wiley, 2018) • Compiled by Perlego, who are an online library for educational and self-development books

next three years to 70%. Yet, worrying research

by EY found that less than half (44%) of firms are confident they can successfully implement 5G-based Internet of Things (IoT). EY discovered a cautionary approach, and this may be in part due to a lack of understanding of 5G’s benefits. Many firms perceive 5G as only an incremental progression on 4G or wi-fi.

KPMG partners with Microsoft KPMG has strengthened its relationship with Microsoft, with a focus on closely integrating its technology into the Big 4’s processes. This commitment forms part of KPMG’s wider investment of up to US$5 billion in technology, people and innovation globally to accelerate the digital transformation of its firms and clients.

PQ Magazine April 2020

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PQ tech news

MIKE DAY Are you a cloud accounting champion?

With the advent of an ecosystem of connected cloud-based business/ finance/banking applications we are seeing a new role of cloud accounting champion emerging. I think this is a great opportunity for PQs, with a mix of accounting, technology, systems integration, business analytics and change management all rolled into one.

I work with a range of accountants in practice and in industry, and a great example of this new role is Stuart Hurst, who is head of UHY Hacker Young’s national cloud accounting working group. He said: “Cloud accountants really change lives for business owners. The impact that automation and better data has on people’s lives is phenomenal.

Whether that’s giving people time back from processing accounts to spend with their children at the weekend, or allowing better decision making to help clients grow their business. It’s a great feeling to know you’re making a difference.”

He added: “Moving a client from a desktop accounting software to cloud is a bit like moving from a candle to heat your home to electricity, it’s that much better! Cloud accountants deliver more to clients, change their lives and work in varied and ever changing workspace that sees tech innovation after innovation. It’s the place to be.”

If I were a PQ right now then I would definitely consider how to stand out from the crowd. Those who show an aptitude for this merging of accounting and technology are already in high demand.

Mike Day, Director, UK Education Sector, Xero

myACCA launched for PQs ACCA’s digital transformation project sees another key launch with a new digital platform for its students and affiliates in the shape of myACCA. This platform offers a new and personalised way of working with the association. Students and affiliates will be able to access all their relevant information in one place – from booking exams to exam technique tips and career advice.

ACCA’s Mhairi Wilson said: “Just like the members’ platform, myACCA for students and affiliates has been user-tested with 100 people to create a great user experience. Their feedback has

helped us design an intuitive site, [which is] easy to navigate and use across many platforms.”

When students log into the portal

they will see a clear dashboard that displays notifications, making it easier for them to track their progress to becoming an ACCA member.

Wilson pointed out that this development is all about the investment and innovations ACCA are continuing to make for the benefit of its future members.

Tester Shuja Seirah said myACCA was “an amazing user interface which is functional and organised”.

Esosa Omorenuwa thought myACCA is much more user friendly: “It was much easier to complete various tasks on the new site such as updating my details and printing certificates.”

Watchdog in doghouse

‘We need digital currency’ The Bank of England’s Chief Cashier, Sarah John, has said that the time may be right for an official digital currency, as she stressed it was crucial for central banks to consider entering the market before the tech giants create a monopoly.

John said central banks must look at the option seriously.

Regulators and politicians have genuine concerns about how current digital currencies are being used by money launderers, and there is a real concern that they

could destabilise the global financial system. John told the Sunday Telegraph recently: “We need to think as an institution about how to position ourselves to make sure society still has a broad range of payments that it can use with confidence.”

She went on to say: “It is absolutely right that central banks think about whether a public sector or private sector would be best to provide a digital currency going forward.”

Ofcom extends reach The UK government has said that Ofcom is being made the internet watchdog, with new powers to fine social media companies that do not protect their users from harmful content.

Internet giants such as Facebook and YouTube are seen as the main targets of these new proposals. The plans are part of a package that hopes to make the UK the safest place in the world to be online.

Apple fined Apple was fined £21m for deliberately ‘slowing down’ its older iPhones without telling customers what it was doing. The fine was imposed by France’s competition and fraud watchdog DGCCRF. Apple was forced to display a notice on its French language website for a month, saying: “Apple committed the crime of deceptive commercial practice by omission”. In contrast, the US cost for this ‘mistake’ was £390m to settle litigation there.

The Financial Conduct Authority has admitted that it revealed confidential consumer information on its website. The City watchdog published the details of 1,600 people who had filed complaints against it between January 2018 and the Summer of 2019. In some instances, the leaked information included names, addresses and telephone numbers.

The FCA has now referred itself to the Information Commissioner’s Office for the breach, and could be facing a hefty fine.

The error came about when the FCA published its response to a freedom of information request.

Tech briefs Whatsapp breaks 2bn barrier Whatsapp has now more than two billion users around the world, and the company has reaffirmed its commitment to strong encryption to protect privacy. Whatsapp chief Will Cathcart said in an interview with The Wall Street Journal that the apps’ global popularity underscores why the company needs to fight for its users’ ability to communicate through encrypted channels.

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Brazilian sale Sage has sold its Brazilian arm as it looks to offload businesses that do not fit its cloudbased subscription package model.

The software provider is selling it to its local management team for about £10m. They will have to find £1m upfront, with future payments dependent on the performance of the new company. Last year the Brazilian unit reported profits of £2m on revenues of £53m.

PQ Magazine April 2020

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PQ technology

Edtech’s new dawn Mark Mckenna explains how education technology is starting to have a major impact on the worlds of work and school ducation market intelligence firm HolonIQ recently released their report on global venture capital investment in education technology over the past decade – and the results make for interesting reading.

Their research shows that the 2010s were an “extraordinary decade for education technology”, with the sector receiving over $32bn in worldwide investment since the end of 2009. Even more extraordinary is their forecast for the coming decade, which predicts that a further $87bn will be invested in edtech companies by the close of 2029.

So why is the world now waking up to the value of edtech – and what could this mean for PQ’s readers?

Firstly, there is a clear drive across the world to ‘leapfrog’ existing education systems in order to drive down costs and improve access for learners. While it will come as no surprise that the US and China are set to continue to lead investment in edtech, emerging markets such as Southeast Asia, Africa and Latin America are set to also expand their investment and focus on

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edtech to achieve greater access and reduced cost for learners.

Another key driver is population growth, with the world set to see 500 million more school students by 2025. To try to avoid placing strain on already-limited physical resources, governments and learning providers are keen to seek and invest in modern alternatives.

Combined with recent technological advances and improving global internet access, the potential for the use of technology in education is something countries and companies know they can’t afford to ignore.

However, it’s not just school-aged students that will benefit from the edtech boom. As industry advances and many job roles change – or even become obsolete – the world of work will require vast retraining programmes and edtech is likely to be a good fit for this need. In fact, HolonIQ suggests that with less than 3% of state education budgets being spent on technology, businesses will be the first to embrace edtech in order to address growing skills gaps.

The recent coronavirus outbreak is forcing people to consider technological solutions as means to ensure continuity of work and study away from physical offices or classrooms.

Although this has come about as a temporary response to an acute crisis, there is no doubt that many organisations will take note of the benefits that remote access can offer, and will continue to invest in the necessary tools to encourage this as a longer-term practice.

While the report looks at the world as a whole, the globalised nature of the world means that the impact of international investment in edtech will be very present here in the UK, where our edtech sector is developing rapidly – thanks in part to the UK’s first ever EdTech Strategy, launched in 2019. As government, businesses and learning providers start to welcome innovative ways to train current and future generations you can expect to see much more technology used in your studies.

For more on HolonIQ and their predictions for edtech visit holoniq.com/research PQ • Mark Mckenna is the Founder and Managing Director at Mindful Education

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PQ Magazine April 2020

ACCA spotlight PQ

On top of the world Meet the Cambridgeshire student who came first in the world out of thousands of SBL students ccountancy student Andy Hall, from Cambridgeshire, was first in the world in the recent ACCA Strategic Business Leader exam.

Now based in London and working for accountants and business advisors BDO, Hall said that accountancy appealed to him because of his interest in business which comes in large part from his entrepreneur father.

“Of course, the skills learned during the course of my studies should help me become a competent accountant, but I believe they will also help me in the wider world of business,” he said.

The four-hour examination tested professional accounting skills through analysis, discussion and commercial awareness using a case study about a chocolate manufacturing company.

Hall found the exam “tough but achievable, so long as you get your head down and work hard”. He added: “If you are able to allow yourself enough time to study, then I’ve found that it’ll give you the best chance of passing. Of course, this is always easier said than done when having to work full time. I also believe that practising exam style questions is key. It’s certainly less of a shock on the day if you have half an idea of what you will be faced with.”

He said exam technique is helpful especially during the more advanced exams. “There were quite a few videos on the ACCA website that purely focused on exam technique which are definitely worth a watch,” he said.

As for the importance of work-life balance, Hall said: “I think hitting the sweet spot between work, study and life is really important. Locking yourself away to study non-stop didn’t work for me.

Allowing for a sensible amount of downtime helps lift your morale and reduces the risk of burning out.”

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PQ Magazine April 2020

So how did he relax in those brief moments of free time? “I restored a classic Mini a few years ago, so especially in the summer months it was nice to go for a drive in the evenings to chill out. I also enjoy playing drums and guitar, so making a bit of a racket after a long day of revision was also a great way to unwind, albeit at the expense of my neighbours!”

For someone starting out now, Andy would advise looking at the bigger picture when at work. “I think it’s important to try and understand why you are doing a certain task and how it relates to the wider business. I found this especially helpful when I first started, as some of the jobs given to me were seemingly simple. I also believe that when you first start out, there is no such thing as bad experience, so try and get as much

Hall: ‘get your head down and work hard’

exposure as possible. At least, you can start to identify what you find interesting, and what you don’t.

“I’m very grateful for the help and guidance my tutor, Iryna McDonald at Kaplan, gave me. All the tutors at Kaplan have been more than willing to help whenever I have asked for it.”

Hall works in the London office of BDO. He provides support to high-growth SMEs with their monthly management reports, VAT compliance and year-end financial reporting as part of BDODrive.

He feels fortunate to have been allowed to attend classes during week days. “Nevertheless, you still have to find time to revise, and that means at the weekend or in the evenings after work. It can definitely be a test of stamina and willpower! However, I’m confident it’ll be worth it in the end.” PQ

17

PQ Awards 2020

BEST OF THE BEST A night to remember

The Café de Paris was in full swing last month for the PQ magazine awards 2020.

Russian-British comedian Konstantin Kisin entertained the crowd, before editor Graham Hambly, with the help of the sponsors, revealed the night’s winners.

Our 2020 PQ of the Year, Grant Thornton’s Bethany Duffy, was on a holiday of a lifetime, but sent a video message to the audience from Australia. Her nomination explained that she has boundless energy, an infectious enthusiasm, does everything to an amazingly high standard – and always with a smile!

Accountancy Body of the Year went to the ACCA, who also picked up the Innovation in Accountancy award for its student wellbeing hub.

The judges gave the Best Use of Social Media award to LSBF TV, and KPMG’s Emma Noble walked off with the Training Manager/Mentor award.

CIPFA member Ross Fraser won NQ of the Year, and our Apprentice of the Year is Charlie Atkins, who had been short listed in 2019, too. The judges said he was a shining example to all accountancy students, and his kind, caring approach was a winning combination.

Former motorbike dispatch rider Edyta Czapla was awarded the Distance Learning ‘PQ’. An ICB student with Training Link, she has just launched her own business.

The much-coveted Private Sector College of the Year award went to HTFT Partnership, who tailor their course delivery to the individual students’ need.

The University of Winchester are now the Public Sector College of the Year.

Premier Training were at it again, and they landed the Study Resource of the Year for their MyPTA Mobile app. It is like having a personal tutor, library and a classroom all in your pocket.

Among the Editor’s award winners on the night were the AAT learning pods and Kaplan Financial’s single use plastic campaign.

Top comedian Konstantin Kisin entertains accountancy’s finest

Members of the North West NHS Student Forum pick up their award from Osborne Training’s Mansur Shohag

KPMG’s Emma Noble with Abdul Hassan 18

Selfie time for Kaplan Financial’s social media team at the Café de Paris PQ Magazine April 2020

PQ CIPFA spotlight

An ode to the public sector

A career in the public sector can be both interesting and rewarding, says Rob Whiteman – and he should know here are a plethora of reasons why one would choose to embark on a career in the public sector. While helping vulnerable people in society is one of the most notable, there are actually a number of arguments for why the public sector is the best place to begin and build a meaningful career. I’ve worked in and alongside the public sector for more than three decades and I would not choose any other place to devote my time. The ability of this sector to bestow meaning on your career and develop a diverse skillset is second to none.

I began my career in local government in 1986 in the London Borough of Newham. After that, I moved on to the City of London and the boroughs of Camden, Lewisham, and Barking and Dagenham respectively, and then on to the Improvement & Development Agency (IDeA). From there I went to the Home

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Office, before joining CIPFA in 2013.

Meanwhile, I have carried out NED roles in government, the NHS and private sector. If I’ve learned anything from my long tenure in the public sector it’s that no other area of work brings greater pride and value to your career.

Let’s start with the fact that the work is both incredibly important and rewarding.

You can develop crucial, practical skills while making a difference to your community. Your work is driven by the public good and quality of service rather than profit alone, so you have the ability to drive projects that really change people’s lives.

Careers in the public sector also provide a great deal of flexibility and variation. You can boost your CV while moving through various different areas and services. You could opt to study for a CIPFA qualification – perhaps through an apprenticeship - and work as a

professional accountant in a local authority, government, the NHS, the firms, police, international development or companies supporting the public sector. There are dozens of entry routes into the public sector that provide career progression and the opportunity to become a well-rounded finance professional.

In recent years, the enhanced work-life balance and positive working environment have become defining characteristics that set the public sector apart from the private. The public sector has, in many ways, been ahead of the curve as far as flexible working is concerned, with a great deal of openness to a variety of working arrangements. The wider culture of public sector organisations tend to attract the kind of people who are willing to take the time to provide guidance and support to those who are new to the industry. A coaching culture is commonplace.

In the same vein, there is no shortage of valuable work experience and internship opportunities in the public sector. You’ll find rich mentoring and networking opportunities that offer the chance to learn from highly experienced professionals who have dedicated their lives to public service.

You can also feel confident in your future prospects. There will always be a need for public services that in turn need dedicated individuals in roles that support the community, whether it be in current positions or roles that don’t even exist yet.

Contrary to common misconceptions, there are big changes on the horizon with technology and the workforce in the public sector. You may be familiar with the stereotype that public sector organisations can be less innovative than private ones – but that is simply not the case. New technological advances are revolutionising the way we work, and providing more efficient ways to make a difference in communities. You can take advantage of training opportunities and be part of that revolution first hand.

If you are thinking about pursuing a job in the public sector, don’t hesitate. And if it hadn’t previously crossed your mind, I urge you to consider the option. It really is the best place to be to further the public good and make a difference in the world. PQ • Rob Whiteman CBE is CIPFA CEO

Award-winning AAT courses and apprenticeships Flexible learning to suit your lifestyle mindful-education.co.uk/students 20

PQ Magazine April 2020

CIMA spotlight PQ

Get the balance right It’s important that students achieve a work/life balance, says Stephen Flatman triking the right balance between our professional and personal lives is something most of us struggle with. According to the OECD’s (the Organisation for Economic Cooperation and Development) Better Life Index, which looks at the quality of life of people in its 34 member countries, a good work-life balance is one of the essential factors for good mental health and overall wellbeing. Achieving work-life balance is therefore critical to maintaining a happy life.

CIMA has members and students working and studying in 179 countries around the world, who all have many different priorities to manage at work and at home. Some of them maybe experienced professionals with a family while others may just be at the start of their career with a busy lifestyle. No matter where you fall on the spectrum, the main key to achieving work-life balance seems to be allocating just enough time to your job (not too much) so you are also able to give yourself some much-needed down time. To help alleviate some of the pressure we have several tools that can help you seamlessly fit your studies into your life.

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How to use the tools The first tool available to all our students is the CIMA Study Planner, which allows you to create a personalised study plan that fits around your other commitments, keep study notes and track your progress.

It’s also an online study companion you can access on your phone, desktop or tablet, meaning you can have it with you at all times to help keep you on track and effectively manage your time. Using tools like the Study Planner can be a very useful comfort blanket for times when you feel like you are under too much pressure.

In its ‘5 steps to mental wellbeing’ article the National Health Service (NHS) says connecting with other people is also a great way to support your mental wellbeing. Our free webinars and events, we hold locally around the UK, could be a great opportunity to meet other CIMA Students and like-minded professionals, while picking up exam tips and techniques.

Connecting in this way can be important as you get to be surrounded by people with whom you share common goals. This can help build your sense of purpose which is another facet of wellbeing. Connecting with others can also be a great source of emotional support and in turn can allow you to give to others by reciprocating.

We fully recognise that modern life demands flexibility – it's how we manage to fit so much in to one day. And that is why we offer the freedom to book your exams when you are ready, or reschedule at your convenience if something comes up at work or at home, in any one of over 5,000 Pearson VUE test centres worldwide.

As the OECD’s Better Life Index points

out, devoting time to personal care and leisure, is how you achieve the ultimate work-life balance and ultimately build a happy life. The NHS points to connecting with your loved ones as great way to feel happy. Things like taking time each day to have an evening meal with your nearest and dearest, arranging a day out with friends you have not seen for a while, making sure you take time away from your desk at work and have lunch with a colleague or a friend, will help make a difference to your overall wellbeing.

Everything you need We hope all of these things give you everything you need to slot your studies into your life as seamlessly as possible and ultimately complete the CIMA professional qualification on your own terms and make time for the things. An investment in yourself will make you more productive in the long run. PQ • Stephen Flatman, Vice President, Examinations, Management Accounting, The Association of International Certified Professional Accountants

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PQ Magazine April 2020

21

PQ the troubleshooter

Capital investment appraisal explained Dr Philip E Dunn gives you the insight to be able to handle questions on this topic with confidence

considering investing £200,000 in hi-tech machinery that will generate incremental business. The anticipated cash flows from the project over the next five years are: Yr1 £80,000; Yr2 £90,000; Yr3 £50,000; Yr4 £50,000; Yr5 £30,000.

he appraisal of a planned investment is a demanding decision that the accountant has to face in today’s fast-moving business environment.

Projects are usually complex and carry an element of risk, but also have the potential of offering ‘added value’ and underpin the achievement of strategic aims. Accountants owe it to themselves, shareholders and employees to see that the approach to the investment of funds is based on sound financial techniques.

Much analysis in the past has been based on conventional financial appraisal models, including average return on capital, payback period, and discounted cash flow.

Research by Professor Frank Lefley and his development of the Financial Appraisal Profile Model (FAP) extended traditional methods to a new dimension.

The development includes terms such as NPVP (net present value profile); DPB (discounted payback); DPBI (discounted payback index); and MGR (marginal growth rate).

So what are the main factors to take into account when evaluating projects when there is a choice to be made? They are the amount of capital available, the cost of the capital, the cash flow from the project or projects and its timing, capital allowances and taxation, grants, residual value of the assets, and risk.

Any appraisal should, in addition to these factors, address two fundamental issues: the long-term TSR (total shareholder return) and project liquidity.

The following mini case study illustrates the use of the methods and techniques listed above: Hawsker Engineering Services is

NPVP – net present value profile The schedule below shows the project under consideration with a capital cost of £200,000 and will be appraised over the first five years. The firm’s cost of capital is 15% and uses this percentage in discounting the projects future cash flows.

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Schedule of NPVP: NPVP = NPV–DPB–DPBI–MGR NPV: YR

Cash Flow

Discount Factor

Present Value £ 69,600 68,040 32,900 28,600 14,910 ----------214,050 (200,000) NPV: £14,050

1 2 3 4 5

£ 80,000 90,000 50,000 50,000 30,000

0.870 0.756 0.658 0.572 0.497

Net Present Value (NPV) With a capital cost of £200,000 and a total discounted cash flow of £214,050 the project has a positive NPV of £14,050, and is therefore achieving a discounted cash flow return greater than 15%.

Discounted Payback (DPB) The cumulative present value of the future cash flows at the end of the fourth year is £199,140, and the company needs to achieve a further £860 of the discounted cash flow for year five to arrive at the point of payback.

4 Years + (860/14910 x 12) = 4 Years and 0.7 months The company will have recovered the

Cumulative Present Value £ 69,000 137,640 170,540 199,140 214,050

whole of the cost and financing of the project in just over four years.

Discounted Payback Index (DPBI) A further step beyond the DPD is the calculation of the DPBI. It is calculated by dividing the project’s initial capital cost into its accumulated discounted net cash flows. It indicates how many times the initial cost of the investment will be covered over the period of the appraisal.

In this case the calculation is £214,050/£200,000 = 1.07. This shows that the project over the period of the appraisal recovers its original cost just over once and is an indicator of the projects profitability.

This measure now referred to as DPBI was the former PI (profitability index) covered by a number of writers in the past.

Marginal growth rate (MGR) Professor Lefley sees this as the final stage in the development of the NPVP model and states: MGR = ((DPBI)1/n -1) x 100 MGR = ((1.07)1/5 -1) x100 = 1.36% The MGR is the average annual growth rate of the project after discounting the project at 15%. Lefley views this as ‘a net variant of the modified internal rate of return’.

Thus, with a positive NPV of £14,050, a DPB of 4 years 0.7 months, a DPBI of 1.07 and a MGR of 1.36%, the project would be acceptable.

At this point it is also interesting to determine the IRR (internal rate of return), the more conventional approach to benchmark the DCF return, with the cost of capital. It is that rate at which the NPV would be equal to zero.

Having discounted the project at 20% the cumulative net present value of the future cash flows was £194,130.

This results in a NPV of -£5,870 (£194,130 – £200,000).

The IRR is determined as: Lower Rate % + (NPV at Lower Rate/Range of NPV x Range of Rates) 15 + (14,050/19,920 x 5) = 18.53% The project’s IRR is in excess of the cost of capital and a further indicator that the project should be adopted. PQ • Dr Philip E Dunn is a freelance author and technical editor for Kaplan and Osborne Books PQ Magazine April 2020

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Theeasiest easiestway wayto toget get your your free monthly copy The copy isis to togo goonline onlineatat www.pqmagazine.co.uk,ororyou youcan canfill fillinin the the form form below and send www.pqmagazine.com, send itit to: to: Magazine, 4th Floor, Central2 House, 142Way, Central Street, London, EC1V PQ,PQUnit 3a, Kingfisher Heights, Bramwell Royal Docks, London E168AR 2GQ Study please tick a box in 1A or 1B 1A Please indicate accountancy body you belong to and tick the box of the next set of exams you are hoping to sit Applied ▫ Knowledge F1-3

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PQ lifestyle

Food for thought Accountant Ayo Salau shares his Nigerian stew and cauliflower fried ‘rice’ – as seen on TV!

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outh London accountant Ayo Salau recently stared on BBC’s Best Home Cook. On it he showcased his now famous stew and rice – so why not try it out for yourself? He promises his veggie sauce is packed with Nigerian flavours. But beware, the heat on this recipe has been softened, but it's still got a kick – add more chillies if you like it fiery!

Ayo serves it over cauli rice, but plain rice also works fine.

The prep time for this meal is less than 30 minutes, cooking time is between 30 minutes and an hour.

Ingredients For the paste • 1 red pepper, deseeded and chopped • 1 brown onion, roughly chopped • 4 garlic cloves, finely chopped or grated • 4cm/1½in piece fresh root ginger, peeled and finely grated • generous pinch red chilli flakes, plus extra if desired For the sauce • 2 tbsp vegetable oil • 1 brown onion, finely chopped • 2 garlic cloves, finely chopped • ¼ tsp chilli powder • ½ tsp smoked paprika • ½ bay leaf • 1 tsp caster sugar • ¼ tsp allspice • 1 heaped tbsp tomato purée • 400g tin chopped tomatoes • salt and freshly ground black pepper • small handful chopped fresh basil, to garnish For the cauliflower rice • 1 cauliflower, cut into florets • 2 tbsp olive oil • 4 smoked bacon rashers (back or

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Ayo Salau streaky), chopped (optional) • 2 garlic cloves, finely chopped • 1 brown onion, finely chopped • 2.5cm/1in piece fresh root ginger, finely grated • 1 yellow pepper, deseeded and finely chopped • ½ vegetable stock cube • salt and freshly ground black pepper

the chopped tomatoes. Pour in around 100ml/3½fl oz water. Stir well and cook over a low heat for 35–40 minutes, stirring occasionally. Add a splash of water if it looks too dry. Check and season with salt and pepper if needed and add additional chilli flakes to reach your desired heat. Remove and discard the bay leaf.

3: Meanwhile, for the cauliflower rice, coarsely grate the raw cauliflower into a bowl (or use a food processor to pulse in batches until it resembles fine crumbs or rice). Season with salt and pepper.

4: Heat the oil in a large non-stick frying pan over a medium–high heat and fry the bacon, garlic, onion and ginger for a few minutes, stirring frequently. When the bacon is crisp, add the cauliflower ‘rice’ and yellow pepper. Fry for a couple of minutes to soften.

5: Crumble in the stock cube and pour in 75–100ml/2½ – 3½fl oz boiling water. Stir to dissolve the stock cube. Cook for 5 minutes, stirring occasionally, until the mixture is dry and has a fluffy texture.

Season with salt and pepper if needed.

To serve, divide the cauliflower rice between serving plates and spoon the sauce on top. Scatter with chopped basil to garnish. PQ

Method 1: For the paste, put all the ingredients in a food processor and pulse to form a smooth paste.

2: For the sauce, heat the oil in a large non-stick frying pan and fry the onion and garlic for 6–8 minutes, or until softened, stirring frequently. Add the paste and fry for a further 1–2 minutes.

Stir in the chilli powder, paprika, bay leaf, sugar, allspice, ½ tablespoon salt and a generous pinch pepper. Fry for 1–2 minutes until the spices are aromatic.

Stir in the tomato purée and then add

PQ Magazine April 2020

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PQ careers conference

Accountancy 1, Crystal Palace 0 More than 2,300 potential finance professionals gave up a Saturday to find out more about the profession, says Claire Bennison f all the many and diverting ways of spending a damp Saturday morning in London, I wasn’t certain how many people would want to attend a careers conference in Bunhill Row. But I was delighted when I arrived to speak at the London School of Business and Finance that an audience of 130 had ignored the competing demands of shopping, Everton v Crystal Palace in the lunchtime kick-off or a morning under the duvet to learn more about a potential future in accountancy. Another 2,200 took part online.

As much as the size of the audience, I was thrilled by the spread of ages and backgrounds of the people attending.

The word ‘diversity’ is a bit of a buzzword these days, and every organisation and industry is striving to recruit from all sections of the community. But I was struck by just how broadly based the audience was. There were school leavers, undergraduates, recent graduates, postgrads, older people seeking a change in direction, ambitious individuals new to

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Speaker Craig Coda

LSBF’s Rob Sowerby

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the UK, and people of many different nationalities.

It was hugely encouraging that accountancy clearly carries an appeal that transcends cultures, backgrounds, nationalities and educational attainment.

It suggests that our profession is in great health and poised for a bright future.

There were a few points I was eager to share with these highly motivated potential professionals.

The main message was to reinforce just how varied and creative a career in finance can be, and that qualifying as an accountant opens so many doors.

Second, I was keen to explain that the next generation of accountants will be perfectly placed to influence the future direction of business. The profession is changing and widening its scope.

I shared my belief that digital has liberated finance professionals from many routine tasks. It has liberated them for work that packs more of a punch – freeing them to serve as the interpreters of data, not just the compilers.

The story of our world in the years to come is the story of how the world responds to three enormous questions: • It’s about the increasing application of big data; machine learning and the 5G-enabled Internet of Things.

• It’s about inequality in the spread of resources across countries and continents.

• And the big one – it’s about climate change, and potentially catastrophic changes in the planet’s environment.

The accountant’s role won’t just be making sure the numbers add up. They now possess much wider qualities. We live in a world where decisions are increasingly left to algorithms and artificial intelligence, so our job is to ensure that the human element is built in to our business processes.

As I said at the event: “We need impartial professionals to provide the ethical, human dimension in every organisation – and that is the role of the

ACCA’s Claire Bennison opened the event, which drew 2,300 students to the careers conference

Lubna Farhan, a former contestant in The Apprentice, spoke of her experiences and career path

modern accountant. Only by ensuring that decisions are taken based on the concept of public value; the needs of wider society, and the protection of our fragile planet, can we be sure that businesses and economies are built for sustainable development. The old ways of measuring success – dividend statements, profit and loss accounts, quarterly reports – are imperfect ways of assessing the long-term health of a business.

“Our job – your job, should you decide to pursue the path of professional accountancy that is open to you this morning – is to live the ethical values which will make a critical difference to society, whether it survives or thrives, through to the end of this decade and beyond.”

It was a wonderful event, and did so much to promote the profession of accountancy to a discerning, savvy and receptive audience. I am certain that many of those who gave up a chunk of their weekend, and to invest some time in their own future, would have left with a keener zeal to choose finance as their career.

For that reason, I’d like to thank LSBF and PQ magazine for staging the conference. It was a valuable contribution to our profession, and a privilege to be part of it. PQ • Claire Bennison, Head of ACCA UK Professor Richard Murphy

PQ Magazine April 2020

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PQ HR matters

Trouble at work…?

Experts at Croner Taxwise deal with many HR questions from accounting firms. Here are a couple of examples

Can my boss take my phone?

Can an employer confiscate mobile phones from employees as they are spending too much time on them during the day?

The presence of mobile phones at work can prove problematic for many employers and it is understandable why some may want to take tougher action against mobile phone use during the working day.

Your employer has the authority to make their own rules on mobile phone use at work and these should be included within a specific policy.

Hopefully, any pre-existing policy clearly outlines if employees are able to use their mobile phones and whether certain features, such as listening to music, are allowed. With this in mind, employers should consider reviewing their workplace policy if they want to confiscate mobile phones and ensure this provision is included.

While it may appear drastic to some, confiscating mobile phones is already a common practice in many organisations as a way of maintaining productivity and safeguarding sensitive information. Given that staff can use their phones to call, text, tweet and even order food, these could easily prove distracting during the working day. Therefore, removing the temptation from staff entirely should help individuals stay on task and ensure work is being completed on time.

Having said this, your employer might consider the negative impact that confiscating mobile phones may have, specifically when it comes to employee morale. As such, it is important to only take these measures where necessary, as doing so without justification could be seen as a sign of distrust and lead to an increase in grievance claims from disgruntled staff.

Confiscating mobile phones may also place certain employees at an unfair disadvantage, especially those who are an emergency contact for a dependant such as a child or elderly relative. It will be important to accommodate these specific needs and managers may choose to allow individuals brief periods away from their duties to check their phone for important calls, or introduce a designated emergency contact number at work that friends and family may use to get in touch.

Therefore, prior to taking any further action your employer should ask 28

themselves if this option is truly appropriate under the circumstances, or if a more suitable alternative is available.

Before jumping straight into confiscating personal property it would be wise to remind staff of their obligations under the company’s mobile phone policy.

However, if this does not deter mobile phone use then stricter measures may be their only option.

Do vegans have a special case?

Is it now unlawful to discriminate against ethical vegans at work? What sort of things do companies need to consider?

The case of Casamitjana v League Against Cruel Sports has ruled that ethical veganism qualifies as a philosophical belief under the Equality Act 2010, with the tribunal judge insisting that it was “important" and ‘worthy’ of respect in a democratic society.

As this is only an employment tribunal decision, this does not necessarily protect all ethical vegans from discrimination. Although any future tribunal is likely to refer to this ruling in similar cases, they are under no obligation to agree that ethical veganism

qualifies as a philosophical belief. Having said this, given the risk involved your employer would do well to re-think how they treat ethical vegans within their organisation.

As a first step, it is important to understand the distinction between veganism and ethical veganism as this protection will not apply to everyone. In the case of Mr Casamitjana, ethical veganism was described as a belief that ‘animals should not be exploited for any purpose’. As ethical veganism extends beyond simply eating a plant-based diet anyone looking to receive this protection will need to demonstrate their commitment to this belief.

Once they have a clear understanding of ethical veganism employers would do well to review their existing business practices to avoid creating a hostile or unwelcoming environment for ethical vegans.

While an employer may consider introducing a specific policy on ethical veganism, any existing anti-discrimination policy should be sufficient enough.

Having said this, the added publicity around ethical veganism may encourage other employees to behave in a way that creates an uncomfortable environment for ethical vegans at work. While individuals may attempt to pass off discriminatory remarks as ‘workplace banter’, your manager should be quick to intervene and take appropriate disciplinary action where necessary.

If catering is provided at work then your bosses should review the options available to ensure these remain appropriate. The same approach should also be taken when arranging Christmas parties and other work-related social events to ensure that ethical vegans’ dietary requirements are considered.

Certain uniform requirements may also create an unwelcome working environment for ethical vegans, especially if there is a need to wear clothes derived from animal products such as leather shoes. Therefore, employers should consider where adjustments can be made to avoid any unnecessary contact with animal products and avoid claims of discrimination.

In summary, while this tribunal decision does not expressly provide all ethical vegans with protection from discrimination at work, it does offer food for thought and should encourage employers to adapt any existing practices from a best practice perspective. PQ • Thanks to Croner Taxwise for this article PQ Magazine April 2020

careers PQ

Interview top tips How is your handshake? Remember, lots of studies have found that a firm handshake can have a real bearing on your success at the interview stage.

It may sound strange but have you ever practised your handshake or got feedback about it? PQ magazine recently read that Professor Geoffrey Beattie has developed a formula for the perfect handshake. It is to: 1) Use the right hand.

2) You need a complete grip and a firm squeeze (but not too strong – it’s not a competition).

3) Ensure you have cool and dry palm (a good idea is to wash and dry your hands properly when you arrive).

4) Shake the hand of the interviewer three times, with a medium level of vigour. That means you should be shaking hands for about two/three seconds.

5) Eye contact is vital, so keep it throughout the shake, and maybe throw

Life at the Heron’s Bookkeeping Edyta Czapla works days as a bookkeeper and nights at an amusement arcade in Gravesend, Kent. She is studying with Training Link and just launched her own business.

She was recently crowned PQ’s Distance Learning Student of the Year What time your alarm go off?

I work nights in the arcade, so my bookkeeping day starts when I get home from work. Some may find it exhausting, but I don't intend to slow down.

What's the first think you do when you get to your desk?

Check emails, and follow leads if there are any.

What’s on your desk? Well, now my PQ trophy! And mail that needs to be dealt with.

What’s the best thing about where you work? The flexibility and support of my co-workers.

What’s your favourite place for lunch? I like Thai food. There are couple of places in Gravesend with very original, exotic dishes.

What can you see when you sit at your desk? We have big

windows with views of the River Thames. Very relaxing!

What are are your favourite websites and why? Secret Sales and Wowcher, for great discounts.

What websites do you use for work? HMRC, I’ve signed up for daily updates and tutorials. And the Bookkeeping for Beginners facebook group.

How many hours a week do you spend in meetings? Not as many as I would want to. I’ve got a limited number of clients, but I’m working on that.

What time you leave the office? My office is my home.

Sometimes it's difficult to switch the computer off, especially at exam time.

How do you relax? With a good book or movie.

What's your favourite tipple?

Red wine – very good for your blood. Apparently that’s a glass, not the whole bottle. But I find that statement debatable.

What is your favourite TV show? The Outsider.

Summer or winter? Winter. My best childhood memories are white Christmases in Poland.

Pub or club? Pub – it’s great to socialise and make conversation.

Who is your hero? Joaquin Phoenix. His views on veganism may not be everybody’s cup of tea, but he’s using his celebrity to change something for the better.

If you hadn’t chosen accountancy, where might you be now? My first job was as a primary school teacher. So doing that – it was so rewarding.

applications as those with more traditional ‘British’ names to get an interview. Women were also less likely to be invited to interview than men.

Do you have a work spouse?

Nearly two-thirds (61%) of British workers say they have a ‘work spouse’, someone they argue with like husband and wife. Other reasons for calling a close work friend a ‘husband’ or ‘wife’ is because they trust them with their secrets and they make them smile and laugh whenever they are around. And all this is apparently good for productivity.

Consultant psychologist Elena Touroni said that when people get on well and develop friendships there is a greater supportive and positive energy which, ultimately, make the experience of going to work more pleasant.

In brief

in a nice smile when you say hello.

So, you are through the door and the interview has started. A common question is for you to be asked about yourself. And the perennial is about your ‘greatest weakness’. Don’t fall into the trap of saying that you are a perfectionist or that you work too hard!

The interviewer here is just trying to get to know a bit more about your personality, and maybe is after a bit of honesty, too. Perhaps you could share a mistake you made, and show how you resolved the issue. Putting the weakness into context also helps.

Another question to expect is: “Tell us why you want this job?” Employers want to see some enthusiasm here – we all like to be liked. You should be ready with the why, putting your answer in the broadest possible terms.

Sometimes it is difficult to know when to stop talking. It is not your job to fill in any gaps or silences. You must also remember to breath properly. If you are jabbering away you can sometimes forget this. So try to regulate yourself, stop sometimes and just take a breath before continuing.

Oh, and never ask about the money, holiday entitlement or whether you got the job.

PQ Magazine April 2020

Talent lock-out Millions of young people are still being locked out of professional careers because employers are putting too much faith in traditional CVs, said Alan Milburn, chairman of the Social Mobility Foundation. He felt many companies tend to pick up only the CVs of people with Russell Group university degrees, private school education, and whose parents are professionals.

A campaign, called ‘CVs Aren’t Working’, has now been launched. Research from the foundation found: • Applicants with Asian or African-sounding names had to send twice as many job

• People from a wealthier background are 80% more likely to secure professional jobs than those from a working-class background.

The PQ Book Club: books you should read Be Less Zombie by Elvin Turner (Wiley, £12.99) The subtitle of this book is ‘How great companies create dynamic innovation, fearless leadership and passionate people’. Having set out his stall on the cover, author Elvin Turner sets about explaining what zombie companies are, and how you can avoid being one.

Zombie companies, he explains, “cling to what kills them” – obsolete and frustrating ways of working that crush innovation and drain people's

motivation. Based on 10 years of research of the business world, Turner brings insights from a wide range of unexpected, expert sources including a peace negotiator, a cage-fighter trainer, an X-Factor coach, a senior emergency room doctor, and a fashion designer.

Through this interation he has created a framework that gives leaders and managers tools, processes and pathways to make bolder and more profitable innovation a sure thing.

This book is not just for

potential CEOs; it’s for team leaders who need to help their people find new capacity and energy to deliver bolder ideas, and for individual employees who want their managers to stop blocking their best ideas. Is that you?

PQ rating 4/5 Easy to digest and highly recommended.

• You can win a copy of this book – see page 30 for details.

29

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

BIG 4 FAIL TO MAKE TOP 100 DARLING WADS OF MAY Ex-PM Theresa May’s register of financial interests makes interesting reading. She was paid around £96,000 for a speech in January this year by PwC. That was for 12 hours work, including preparation and travel. Meanwhile, JP Morgan paid her £75,000 for a speech in November, and UBS Switzerland £100,000 for a talk in December. Nice work if you can get it!

The Sunday Times has published its list of ‘Best Companies to Work for 2020’ and none of the Big 4 are anywhere to be seen. Among the Best Big Companies are BT Consumer and Iceland Foods. London marketing firm MVF are, according to this year’s poll, the best company to work for.

There are accountancy firms in the top 100 – at 51 is Sanderson Anderson & Brown and at number 82 come Bishop Fleming. Finally, BHP Chartered Accountants chart at 84 – but that is it.

UNIVERSITY COUGHS UP The University of Maastricht has reportedly paid hackers a ransom of 30 bitcoin (£230,000) to unlock its computer systems after an attack on Christmas Eve. The breach happened when a member of staff clicked on a phishing email a month earlier. The university said if it had not paid the Russian hackers it would have had to rebuild its whole IT network. The attack prompted a network-wide shutdown.

Dancing queen: Famed for her dancing at the PQ awards, now Vicky Taylor seems to want to ensure husband James is 'taken out of the picture' when HTFT landed the PQ magazine Accountancy College of the Year award!

I’LL HAVE THE PASTA Who doesn’t like the freebies at conferences and exhibitions? PQ magazine’s drawers are full of free pens, phone chargers and power packs, picked up over the years. We recently came across one freebie, however, that even raised our cynical eyebrows. Media Touch’s giveaway at the recent Learning Technologies conference was… some pasta. We would love to have been in the meeting where they decided pasta was the way to go.

WIND ME UP

HOW MUCH?

WRONG NUMBER

The UK government will need to spend £48bn on new wind turbines (double the spend of the last decade) if it is to reach its target of 40 gigawatts of offshore power by 2030. Analysts at Aurora said 260 wind turbines will have to be installed each year to hit that target – that’s one for every working day. The UK’s current offshore wind capacity stands at 10 gigawatts, up from the 2010 total of just one. Some green commmentators have said achieving the new target will not be a “walk in the park”.

Global debt has reportedly reached a new record high of $253 trillion. There is now growing concern that the level of borrowing has become increasingly unsustainable. By adding government, household, corporate and financial debt, total global borrowings reached 322% of world GDP. Britain had one of the biggest annual increases in total debt among developed nations, with a 10% jump to 454% of GDP in the year to September 2019.

Dixon’s Carphone blamed a ‘clerical error’ after reporting a sales increase, which was actually a sales fall. The electrical retailer had to go back to the market to explain its 2% rise in sales over the Christmas period was in fact a 2% decline. It took seven hours before someone spotted the mistake and a correction was issued.

’ WEV E

GOT THE L OT

Be less zombie

Green phone protection for you

Why do some companies always seem to have the best ideas, the most engaged people and the most profitable growth? By comparison, ‘zombie’ companies cling to what kills them. You can find the answer in ‘Be Less Zombie’, written by Elvin Turner. We are giving away three copies of this great book (see our review on page 29).

To get the chance to win one of these books email ‘Be less zombie’ to giveaways@pqmagazine.com.

Remember to send us your name and address so we know where to send your prize.

We have the perfect way for you to protect your phone while protecting the planet at the same time.

We have 4 iPhone X cases to give away this month.

These cases are 100% biodegradable, crafted out of 100% corn-starch. So keep your phone safe and secure without any guilt over your carbon footprint.

To try to win one of these eco-friendly phone cases head up your email ‘Phone case’ and send it to giveaways@pqmagazine.com. We need to know where to send your prize if you win, so please include your name and address in the email, too.

Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway entries must be received by Friday 10 April. The main draw will take place on Monday 13 April 2020.

TO ENTER THESE GIVEAWAYS EMAIL GIVEAWAYS@PQMAGAZINE.COM 30

PQ Magazine April 2020

MAKING LIFE SIMPLE

CREATING THE RIGHT ENVIRONMENT FOR YOU

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